Fiscal Year 2012 Annual Action Plan Amendment 2Masterpiece on the Mississippi
Dubuque
All•AmericaCiiy
Ef
2007
TO: Michael Van Mill• en, City Manager
FROM: David Hai, Housing and Community Development Department
SUBJECT: Proposed Funding Reductions for CDBG Program
DATE: 14 December 2011
We have received notification of a proposed reduction in CDBG funding for FY 2013, in
the amount of 17.37% of our entitlement, or $195 758. This does not constitute "formal
notification" of HUD's budget allocation, but rather a preliminary estimate.
The effect of this on our CDBG - funded budget is as follows:
1. Administrative costs will be reduced by $39 152
2. Public service activities will be reduced by $26 583
3. Un- capped activities will be reduced by $130 023
Administrative funds support only the following positions:
Housing Department Director (50 %)
Community Development Specialist (Aggie)
Neighborhood Development Specialist -- 90% (Jerelyn)
Part of a planner and a planning tech in the Planning Services Dept
2 Planning interns
Part of a clerical position in the Finance Department.
Attached is a chart showing those costs.
To achieve the reduction under the public services cap, we have proposed an across -
the -board cut of 12.5 %. This follows the 16% cut we experienced last year. Agencies
and programs affected by this include Project Concern's Child Care Resource and
Information Referral Programs, the DDRC, Opening Doors, the Senior Center,
Washington Tool Library; and the City's neighborhood recreation and neighborhood
support grant programs.
For uncapped programs, we have proposed 32.5% cuts. Exempted from this are the
Housing Department's rehab and code enforcement programs — under which staff
salaries are included as 'program' costs, and the required $60 000 CDBG match for the
current Lead Hazard Control grant, Programs proposed for cuts include homebuyer
and homeowner rehab, DREAMS, rental unit rehab, accessible curb ramps,
neighborhood infrastructure and zoning inspection. The current $13 000 CDBG
allocation pays part of Sue Brennan's salary for zoning enforcement.
We are holding a public hearing on the FY 2013 CDBG Annual Plan at the Community
Development Commission tonite. The proposed amended budget that the Commission
has received (incorporating roll -over of unspent FY 2012 funds) does not include these
proposed changes. My recommendation is that we just go ahead with that action, while
explaining that we'll be re- amending the FY13 Annual Plan once these cuts are
formalized.
Let me know if you'd like to meet to discuss this further.
cc:
Jenny Larson
Aggie Tauke
att
Exhibit A
FY 2013 CDBG ANNUAL ACTION PLAN - Proposed Revision
PROJECTED SOURCES
Estimated Entitlement
Program Income
ED Revolving Loan Fund
Total Sources
FY 2012 FY 2013 Proposed
1,126,998 1,126,998 ` 931;240
347,460 322,075 322,075
7,297 7,297 14;g07
1,481,755 1, 456, 370 • '1 ;260 ;612 $ (195,758)
Proposed
Housing Development Programs:
FY 11 Actual
FY 2012
FY 2013
FY 2013
Difference
First Time Homebuyer Program
20,000
75,000
70,000
47,250
(22,750)
Historic Preservation Rehab Grant
17,400
Homeowner Rehab Program
246,292
255210
225,000
158,625
(66,375)
Housing Administration
63,755
65,534
68,091
6 8,091
Housing Code Enforcement
157,580
163,446
169,198
169,198
-
Housing Rehabilitation Services and Staff
299,420
330,767
320,062
320,062
-
Housing Trust
-
0
Lead Hazard Control Program
71,152
60,000
60,000
60,000.
-
Purchase /Rehab /Resale DREAMS
-
10,000
0.
(10,000)
Rental Unit Rehabilitation
33,280
42,067
28 395.:
(13,672)
Housing Totals
875,599
983,337
964,418
'851,621?
(112,797)
Economic Development Programs:
Commercialllndustrial Building Rehab Loans & Revolving Loan Fund
-
-
E.D. Financial Assistance Program & Revolving Loan Fund
-
-
...
-
-
Economic Development Totals
Neighborhood and Community Development Programs
Accessible Curb Ramps
813
20,000
20,000
113,500.
(8,500)
Child Care Resource/Referral- Project Concern
9,738
7,570
7,570
6,6'24
(946)
Dubuque Dispute Resolution Center
429
832
832
;: 728
(104)
Information & Referral - Project Concern
27,198
21,483
21,483
115,798
(2,685)
Neighborhood Development Services and Staff
89,725
90,812
93,140
93140.
Neighborhood Infrastructure Improvements
35,812
20,000
20,000
13,500
(6,500)
Neighborhood Recreation Program
143,267
125,797
127,228
111,325
(15,903)
Neighborhood Support Grants
7,817
16,640
16,640
14,560
(2,080)
Opening Doors
10,000
8,320
8,320
7;280
(1,040)
Senior Center
23,755
20,800
20,800
18,200
(2,600)
Washington Tool Library
16,195
12,896
12,896
11;284
(1,612)
Zoning Inspection /Enforcement
13,000
13,000
13,000
';8,775
(4,225)
Neighborhood & Comm. Develop. Totals
377,749
358,150
361,909
:``;':;317 ;714;
(44,195)
Planning and Administration
CDBG Admin. Services and Staff
99,814
105,373
108,023
108 023
-
Finance
4,827
4,891
5,018
0
(5,018)
City Planning
79.257
29,736
17,002
0,
(17,002)
Planning and Administration Totals
183,898
140,000
130,043
108,023
(22,020)
Contingency
268
386
386
1,481,755
. .:.,•1,277,744:
(178,626)
TOTAL CDBG
1,437,246
1,456,370
F:( USERS'ATAUKE\CDBGIAnnualPian\FY 131(Revised FYI 3. HUD Estimate.xIsxlCaps Revised
COMMUNITY DEVELOPMENT BLOCK GRANT - FY 2013 ANNUAL ACTION PLAN: Admin Cap
Housing Administration
Neighborhood rev Services and Staff
CDBG Admin. Services and Staff
Planning City Planning
Finance
TOTALS
20 % ADMINISTRATIVE CAP
FY 13 Entitlement 931,240
Current Year Program Income 329,372
Total Available 1,260,612
Cap % 20% %a
FY13 Maximum Admin allowed 252,122
CDBG Admin FY12 Budget
FY12 Budget
Employee
% CDBG
65,534
David Harris
50%
90,812
Jerelyn O'Connor
90%
105,373
Aggie Tauke
100%
29,736
Dave Johnson
45%
Kay Munson
44%
2 interns
66%
4,891
296,346
Admin.Cap Max
Over
F:I USERSIATAUKEICDBG IAnnualPlan \FY131]Revised FY13. HUD Estimate.xlsx]Caps Revised
CDAC Hearing
FY13
68,091
93,140
108,023
17,002
5,018
291,274
252,122
39,152
ti
A
4
�H
A Message from Mercedes Marquez, Assistant Secretary for Community Planning and Development
To All Formula Grantees
This notice is intended to provide you with information needed to understand and anticipate
changes in funding levels for the Community Development Block Grant (CDBG) and HOME
Investments Partnership program in your community for fiscal year (FY) 2012, as compared with
FY2011. New Census data and reduced appropriations —based on the appropriations bill passed
last month by Congress ;will mean significant decreases in expected formula funding levels for
many grantees. The Office of Community Planning and Development is providing this
information ahead of the formal notice of allocations to assist you in planning efforts for the
upcoming year.
Decennial Census and the American Community Survey
The law implementing the CDBG program calls for HUD to use "the most recent data compiled
by the United States Bureau of the Census" for allocating CDBG funds (42 U.S.C. 5302 (b)). In
accordance with this mandate, FY 2012 marks the first year that the CDBG allocation formula
will rely on the Census Bureau's new annual data source the American Community Survey
(ACS) —and the 2010 Census population counts. Similarly, the HOME statute requires its
formula to be based on the most recent census data in FY 2012. Allocations for the Emergency
Solutions Grant (formerly Emergency Shelter Grant) program are based on the prior year's
CDBG formula calculation. So, for jurisdictions receiving ESG allocations, the new data will
not have a significant impact until FY 2013.
Moving to the ACS will have the effect of more gradual year -to -year adjustments as data
elements change year -to -year based on a 5 -year rolling average instead of being recalculated
only once every 10 years. Ovekall population data will continue to rely on the decennial census
with yearly adjustments based,.on Census population estimates.
You can review the estimated effects of the formula data change based on FY 2011 Grants for
CDBG here and HOME here. The HUD Office of Policy Development and Research has also
prepared a study, available (PDF or HTML), which analyzes the effect of new Census data and
the American Community Survey on the CDBG formula allocation. I urge you to review these
to understand the broad impact of the revised data.
FY 2012 Budget
On November 18, 2011 the President signed the Consolidated and Further Continuing
Appropriations Act, 2012, which establishes HUD's budget for FY 2012. The Act requires HUD
to notify its formula grantees of allocations within 60 days of enactment. Please note that this
letter and attachments do not constitute formal notification of HUD's budget allocation but rather
represent preliminary estimates. HUD will be notifying grantees individually of their official
formula allocations — including ESG and HOPWA — according to the normal process.
While our budget demonstrates an ongoing commitment to the critical CDBG and HOME
programs to help states and localities continue to navigate these difficult economic times, it also
represents a significant cut from last year's budget. The FY 2012 budget for the CDBG formula
allocation that was included in the appropriations bill adopted by Congress is approximately
$2.948 billion, a reduction from approximately $3.302 billion in FY 2011, representing a
reduction of approximately 11 percent reduction in total available funding. The FY 2012 budget
for HOME is $1 billion, a reduction of 38 percent from approximately $1.6 billion in FY 2011.
Effects of New Census Data and Budget Cuts
The following table provides an estimate of the combined effect of the new Census data and the
FY 2012 budget on expected CDBG and HOME program funding for our grantees for FY 2012.
As stated above, these numbers are preliminary estimates only and are subject to revision in
advance of the formal notification of your HUD formula grant program allocations.
We understand that the data and budget reductions will make FY 2012 a difficult period of
adjustment for many of our grantees. We are committed to doing everything we can to support
you in this period of transition.
Sincerely,
Mercedes Marquez
Assistant Secretary of Community Planning
and Development
file:/ /C:\Documents and Settingsldhar is\Local Settings \Tempt... 12/13/2011
Masterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: FY 2012 Annual Action Plan Amendment 2 -
Amendments to FY 2011 and FY 2012 Annual Action Plans
DATE: December 10, 2011
Dubuque
kraal
All- America City
'I'll®,
2007
Housing and Community Development Department Director David Harris recommends
City Council approval of the FY 2012 Annual Action Plan- Amendment 2 for the
Community Development Block Grant (CDBG) program and Homelessness Prevention
and Rapid Re- Housing Program as approved by the Community Development Advisory
Commission. This amendment provides for an amendment to the FY 2011 and FY
2012 Annual Action Plans by reallocating funds from the prior FY 2011 Annual Plan into
the FY 2012 Annual Plan and reprogramming funds for existing and new projects.
These changes will allow funds to be used to meet citizen needs and facilitate the timely
expenditure of funds as required by HUD.
Activity balances have been carried over in Fiscal Year 2012, except for the following
changes, which are based on demand for homeowner rehabilitation projects in the
Washington Neighborhood:
Decrease First Time Homebuyer Program from $170,000 to $70,000 ($100,000
decrease)
Increase Homeowner Rehab from $506,775 to $606,775 ($100,000 increase)
Increase Contingency balance from $268 to $9899 ($9,631 increase)
The proposed FY 2012 Annual Plan Amendment 2 would reallocate the total
Homelessness Prevention and Rapid Re- Housing Program (HPRP) grant funds to reflect
current and anticipated expenditures. The amendment will also reallocate the remaining
(HPRP) fund balance of $146,588 from FY 2011 into the FY 2012 Plan.
Based on the funds that have been expended to date, an adjustment to the HPRP budget
is needed to reflect the greater need for Rapid Re- Housing. The HPRP grant provides
four categories of eligible activities: financial assistance, housing relocation and
stabilization services, data collection and evaluation, and administrative costs.
Homelessness Prevention assistance is provided to individuals and families who are at
risk of becoming homeless and who would be homeless without assistance. Rapid Re-
Housing assistance is provided to individuals and families who are homeless.
An amendment is proposed to adjust the total HPRP grant budget of $502,294. Due to the
high demand for homeless assistance, the amended HPRP budget will increase Rapid Re-
Housing from $137,294 to $202,971 for financial assistance, and from $20,000 to $24,639
for housing relocation and stabilization. The amendment will decrease Homeless
Prevention from $265,000 to $214,942 for financial assistance, and from $45,000 to
$24,742 for housing relocation and stabilization. Data collection and administration will
remain the same.
In addition, the FY12 budget for HPRP funds remaining as of June 30, 2011 will be
amended to reflect anticipated final year expenditures. All HPRP funds must be expended
by the end of the grant on July 14, 2012.
Financial Assistance
Homelessness Prevention
Rapid Re- Housing
Housing Relocation &
Stabilization
Homelessness Prevention
Rapid Re- Housing
Revised
Current HPRP Total HPRP
Budget Budget
265,000 214,942
137,294 202,971
45,000
20,000
24,742
24,639
Data Collection 10,000 10,000
Administration
TOTAL Grant 502,294
25,000
502,294
25,000
502,294
Proposed
FY 12 Plan
Amendment 2
42,000
71,043
4,800
7,200
5,647
15,898
146,588
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Michael C. Van Milligen
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
David Harris, Housing and Community Development Department Director
2
Masterpiece on the Mississippi
To: Michael Van Milligen, City Manager
From: David Harris, Housing and Community Development
Subject: FY 2012 Annual Action Plan Amendment 2 -
Amendments to FY 2011 and FY 2012 Annual Action Plans
Date: December 7, 2011
Dubuque
kraal
All- America City
'III
2007
INTRODUCTION
The purpose of this memorandum is to request the City Council's approval of the attached
resolution approving FY 2012 Annual Action Plan- Amendment 2 for the Community
Development Block Grant (CDBG) program and Homelessness Prevention and Rapid Re-
Housing Program (HPRP). This amendment provides for an amendment to the FY 2011
and FY 2012 Annual Action Plans by reallocating funds from the prior FY 2011 Annual
Plan into the FY 2012 Annual Plan and reprogramming funds for existing and new
projects.
Federal regulations require that each year a city must prepare and file an Annual Plan
prior to receipt of its CDBG entitlement. The Annual Plan is adopted following a public
participation process that includes a published notice, a public comment period, and a
public hearing. A city must follow its adopted plan as it expends entitlement funds. If its
revenues or activities change, the city must amend. This requirement applies to plans for
previous years as well as the current year.
The City of Dubuque has been allocated CDBG funds that have been programmed for
specific uses as per the adopted Annual Plan for Fiscal Year 2012. Since the funds from
FY 2011 have not been completely expended, the previously adopted Plan remains in
effect until amended to reflect changes in projects and funding need.
DISCUSSION
The proposed amendment to the FY 2012 plan combines the allocations from the previous
year with the current program year. These changes will allow us to respond to the needs
of the community, improve the public's understanding of the programs and facilitate the
timely use of funds as required by HUD.
Page 1 of 3
The existing FY 2012 Annual Plan allocated CDBG funds of $1,481,755 for approved
programs and activities. The CDBG balance as of June 30, 2011 as per the CAPER report
was $953,297. The Commission now needs to reprogram $2,435,052.
CDBG Entitlement FY 2012 1,126,998
Projected Program Income 347,460
ED Revolving Loan Funds 7,297
Prior Year CDBG Balance 728,986
FY 11 Lump Sum Balance 224.311
Available Funds 2,435,052
The attached summary shows the CDBG funds available for reallocation. The proposed
Amendment 2 incorporates obligated funds and remaining FY 2011 funds into the FY
2012 Annual Action Plan activities. Activity balances have been carried over in FY12,
except for the following changes, which are based on demand for homeowner rehab
projects in the Washington Neighborhood:
Decrease First Time Homebuyer Program from $170,000 to $70,000 ($100,000
decrease)
Increase Homeowner Rehab from $506,775 to $606,775 ($100,000 increase)
Increase Contingency balance from $268 to $9899 ($9,631 increase)
HPRP AMENDMENT
The proposed FY 2012 Annual Plan Amendment 2 would reallocate the total Homelessness
Prevention and Rapid Re- Housing Program (HPRP) grant funds to reflect current and
anticipated expenditures. The amendment will also reallocate the remaining (HPRP) fund
balance of $146,588 from FY 2011 into the FY 2012 Plan.
Based on the funds that have been expended to date, an adjustment to the HPRP budget is
needed to reflect the greater need for Rapid Re- Housing. The HPRP grant provides four
categories of eligible activities: financial assistance, housing relocation and stabilization
services, data collection and evaluation, and administrative costs. Homelessness Prevention
assistance is provided to individuals and families who are at risk of becoming homeless and
who would be homeless without assistance. Rapid Re- Housing assistance is provided to
individuals and families who are homeless.
An amendment is proposed to adjust the total HPRP grant budget of $$502,294. Due to the
high demand for homeless assistance, the amended HPRP budget will increase Rapid Re-
Housing from $137,294 to $202,971 for financial assistance, and from $20,000 to $24,639
for housing relocation and stabilization. The amendment will decrease Homeless Prevention
from $265,000 to $214,942 for financial assistance, and from $45,000 to $24,742 for housing
relocation and stabilization. Data collection and administration will remain the same.
In addition, the FY12 budget for HPRP funds remaining as of June 30, 2011 will be amended
to reflect anticipated final year expenditures. All HPRP funds must be expended by the end
of the grant on July 14, 2012.
Page 2 of 3
Financial Assistance
Homelessness Prevention
Rapid Re- Housing
Housing Relocation &
Stabilization
Homelessness Prevention
Rapid Re- Housing
Data Collection
Administration
TOTAL Grant
Current HPRP
Budget
265,000
137,294
Revised Proposed
Total HPRP FY 12 Plan
Budget Amendment 2
214,942 42,000
202,971 71,043
45,000 24,742 4,800
20,000 24,639 7,200
10,000 10,000 5,647
25,000 25,000 15,898
502,294 502,294 502,294 146,588
COMMISSION ACTION
Public notices regarding the proposed amendments were published in the Telegraph
Herald, and on the City of Dubuque website, and copies were made available for viewing
at the Carnegie Stout Library, City Hall and the Housing and Community Development
Department. These notices advised the public of the intent of the amendments and invited
comment at or before the public hearing. This initiated the 30 -day public comment period
as required in the Citizen Participation Plan.
At the public hearing, the Commission voted to approve the proposed FY 2012 Annual
Action Plan- Amendment 2 and forward to the City Council.
RECOMMENDATION
It is recommended that the City Council approve the FY 2012 Annual Action Plan -
Amendment 2 as shown in Exhibits A for the use of Community Development Block Grant
and Homelessness Prevention and Rapid Re- Housing Program funds. These changes
will allow funds to be used to meet citizen needs and facilitate the timely expenditure of
funds as required by HUD.
ACTION STEP
The action requested of the City Council is to approve the Mayor's execution of the
attached resolution, approving an FY 2012 Annual Action Plan- Amendment 2.
Prepared by Aggie Tauke, Community Development Specialist
F \ USERS\ATAUKE\CDBG\AnnualPlan \FY 12 \Council FY 12 Amend2 memo doc
Page 3 of 3
RESOLUTION NO. 422 -2011
RESOLUTION APPROVING FISCAL YEAR 2012 (PROGRAM YEAR 2011)
ANNUAL ACTION PLAN AMENDMENT 2 FOR COMMUNITY DEVELOPMENT BLOCK
GRANT (CDBG) AND HOMELESSNESSS PREVENTION AND RAPID RE- HOUSING
PROGRAM (HPRP) FUNDS.
Whereas, the City of Dubuque prepared and filed Annual Action Plans for Fiscal
Years 2011 and 2012; and
Whereas, the City of Dubuque now desires to amend said Annual Plans by
incorporating them into one amended FY 2012 Annual Plan as per the attached Exhibit A;
and
Whereas, said amendment is a substantial amendment as provided in the City's
Citizen Participation Plan and therefore must be approved by resolution of the City
Council after a public hearing by the Community Development Advisory Commission; and
Whereas, the City advertised a 30 day public comment period beginning October
24, 2011; and
Whereas, the Community Development Advisory Commission reviewed the
proposed amendment at a public hearing on November 30,2011 and has voted to
approve said amendments and to recommend approval by the City Council.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. That the Annual Action Plans for Fiscal Years 2011 and 2012 are
hereby rescinded and the balance of funds from these plans are incorporated into a Fiscal
Year 2012 (Program Year 2011) Annual Action Plan- Amendment 2, attached hereto as
Exhibit A.
Section 2. That said Fiscal Year 2012 (Program Year 2011) Annual Action Plan -
Amendment 2 attached hereto as Exhibit A is hereby approved.
Section 4. That the City Manager is hereby authorized and directed to submit a
copy of this resolution and Plan to the U.S. Department of Housing and Urban
Development.
Passed, approved and adopted this 19th day of December, 2011.
F: \USERS\ATAUKE \CDBGWnnualPlan \FY 12 \FY12 Amd 2 Resolution.doc
ynn Sutton, Mayor Pro -Tem
FY 2012 ANNUAL ACTION PLAN- AMENDMENT 2
CDBG & HPRP
EXHIBIT A
Community Development Block Grant (CDBG)
PROJECTED SOURCES Amend FY12
CDBG Entitlement 1,126,998
Projected Program Income 347,460
ED Revolving Loan Funds
77 297
Subtotal
Homelessness Prevention
1,481,755
Prior Year CDBG Balance 723,659
Payroll liability (20,403)
Lump Sum Balance 224,311
City Balance
25.728
202,971
Subtotal
953,297
Available CDBG Funds
2,435,052
32,654
FY2012
FY 2012
Rapid Rehousing
Annual
Amendment 2
Housing Programs
Plan Amd 1
CDBG
First Time HomebuyerProgram
75,000
70,000
Historic Preservation Rehab Grant
15,898
7,059
Homeowner Rehab Progarm
255,310
606,775
Housing Administration
65,534
65,534
Housing Code Enforcement
163,446
170,186
Housing Rehabilitation Services and Staff
330,767
347,372
Housing Trust
-
Lead Paint Hazard Abatement Project
60,000
90,001
Purchase/Rehab/Resale DREAMS
36,927
Rental Unit Rehabilitation
33,280
186,439
Housing Totals
983,337
1,580,293
Economic Development Programs:
Commercial/lndustrial Building Rehab Loans
117,948
E D Financial Assistance Program-
60,562
Economic Development Totals
-
178,510
NeighborhoodlCommmunity Development Programs
Accessible Curb Ramps
20,000
84,017
Child Care Resource/Referral-Project Concern
7,570
7,590
Dubuque Dispute Resolution Center
832
832
Information & Referral - Project Concern
21,483
22,499
Multicultural Center 2nd Floor Expansion
76,259
Neighborhood Development Services and Staff
90,812
90,812
Neighborhood Infrastructure Improvements
20,000
34,213
Neighborhood Recreation Program
125,797
125,797
Neighborhood Support Grants
16,640
23,962
Opening Doors
8,320
8,320
Senior Center
20,800
24,162
Washington Tool Library
12,896
14,887
Zoning Inspection/Enforcement
13,000
13,000
Neighborhood & Community Development Totals
358,150
526,349
Planning & Administration Programs:
CDBG Admin Services and Staff
105,373
105,373
Finance
4,891
4,891
City Planning Services and Staff
-
City Planning
29,736
29,736
Planning and Administration Totals
140,000
140,000
CONTINGENCY BALANCE TO ALLOCATE
268
9,899
Year -to -Date Expenditures and Budget Balances
1,481,755
2,435,052
Homelessness Prevention and Rapid Re- Housing Program (HPRP) FY2011 Plan
FY2012 Plan
Total Budget
Financial Assistance
Homelessness Prevention
161,009
42,000
214,942
Rapid Rehousing
95,375
71,043
202,971
Housing Relocation & Stabliazation Services
Homelessness Prevention
32,654
4,800
24,742
Rapid Rehousing
15,536
7,200
24,639
Data Collection
10,000
5,647
10,000
Administration
20,932
15,898
25,000
Total HPRP
335,506
146,588
502,294