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CDBG F Y2017 Annual Action Plan Public HearingCity of Dubuque Public Hearings # 1. Copyright 2014 ITEM TITLE: SUSPEND THE RULES Community Development Block Grant (CDBG) Fiscal Year 2017 Annual Action (Program Year 2016) SUMMARY: Proof of publication on notice of public hearing to conduct a public hearing on the Community Development Block Grant (CDBG) Fiscal Year 2017 Annual Action (Program Year 2016). Staff will make a presentation. REINSTATE THE RULES This action limits discussion to the City Council SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Presentation, Conduct Public Hearing ATTACHMENTS Description Type Staff Memo Staff Memo FY 2017 Annual Action Plan - Draft Supporting Documentation Proof of Publication Supporting Documentation THE CITY OF Dubuque AII-Ame1 rica City DUBgkE r Masterpiece on the Mississippi 2007.2012.2013 To: Michael Van Milligen, City Manager From: Alvin Nash, Housing and Community and Development Subject: FY 2017 Annual Action Plan Date: February 10, 2016 INTRODUCTION The Community Development Advisory Commission is submitting the attached Fiscal Year 2017 Annual Action Plan for inclusion in the annual City budget. The Commission reviewed and approved the plan at a public hearing on January 20, 2016. This memorandum transmits a draft of the FY 2017 Annual Action Plan as the second year in the five year Consolidated Plan for the use of CDBG funds. The draft estimates 2017 entitlement amounts as federal allocations have not been released. The proposed FY 2017 Annual Action Plan is attached as Exhibit A. BACKGROUND The City is required to submit an Annual Action Plan to the United States Department of Housing and Urban Development (HUD) for the Community Development Block Grant (CDBG) program. The attached FY 2017 Annual Action Plan provides for use of Community Development Block Grant (CDBG) funds for the anticipated entitlement of $9541011, with anticipated revenues of $373,015 in program income, for a total of $1,327,026. The FY 2017 Annual Action Plan provides for year two of the five year Consolidated Plan. The Consolidated Plan was approved and adopted by City Council resolution 259-15 on July 20, 2015. The Community Development Advisory Commission held a public hearing and approved the FY 2017 Annual Action Plan on January 20, 2016. A public hearing on the Annual Plan will be held by the City Council on February 17, 2016, with final FY 2017 budget approval at the March 14th public hearing to adopt the FY 2017 budget. A required 30 day public comment period commenced with publication of notices on the City website and in the Telegraph Herald on January 17th DISCUSSION At the time of this public hearing, in conjunction with the Housing & Community Development Department budget hearing, the federal fiscal year's appropriation has been enacted; however, HUD has not computed grantees' allocation amounts. It is expected HUD will announce the FY 2017 allocation amounts to grantees no later than mid-February. HUD advises grantees not to submit their annual action plan until after the FY 2016 formula allocations have been announced. Therefore, the proposed FY2017 Annual Action Plan may require revision before submission to HUD in May 2016. After the FY 2017 allocations are announced, the revised plan will be presented to Council for adoption by resolution prior to submission to HUD. RECOMMENDED ACTION I recommend the City Council hold a public hearing, in conjunction with the Housing and Community Development Department's budget hearing, on the proposed FY 2017 Annual Action Plan. Prepared by Erica Haugen, Community Development Specialist 2 THE CITY OF Dubuque DUB E *Amedca MY 11111.' Masterpiece on the Mississippi 2007.2012.2012 PROPOSED FY 2017 ANNUAL PLAN FOR USE OF PROGRAM YEAR 2016 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDS The FY 2017 Entitlement Allocations have not been announced. This document is subject to revision. Exhibit A PREPARED BY THE HOUSING AND COMMUNITY DEVELOPMENT DEPARTMENT CITY OF DUBUQUE, IOWA FY 2017 ANNUAL ACTION PLAN FOR THE USE OF PROGRAM YEAR 2016 COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS The City of Dubuque distinguishes between four different but complementary areas of program development in its overall CDBG program: Housing Development, Economic Development, Neighborhood and Community Development and Planning & Administration. The following description of activities summarizes the projects to be completed in the FY 2017 Annual Action Plan with the use of CDBG funds: I[elm NCO I]Big IN961WOIWIN0WK6Iff.aOl9, First Time Home Buyer Program $50,000 This program provides for loans to assist low and moderate income families to purchase their first hom es. These funds are used to cover the "entry costs" of homeownership — down payments and closing costs. National Objective: Low and Moderate Income Housing Location: Citywide Proposed Accomplishments: 8 Households Priority: High Objective/Outcome: Decent Housing/Affordability (DH2) Homeowner Rehabilitation $157,867 1) Residential Rehabilitation Loan Program (7 Housing Units) An on-going program to provide low-interest loans to qualified low and moderate -income homeowners for the rehabilitation of substandard housing units. 2) Home Repair Program Zero % loans to improve conditions of property for income -eligible homeowners National Objective: Low and Moderate Income Housing Location: Citywide Proposed Accomplishments: See above Priority: High Objective/Outcome: Decent Housing/Affordability (DH2) Housing Code Enforcement $104,327 Intensive inspection program of rental units within low and moderate -income neighborhoods to ensure safe and sanitary housing. National Objective: Low and Moderate Income Benefit Location: Low/Moderate Income Areas Proposed Accomplishments: 400 Housing units Priority: High Objective/Outcome: Decent Housing/Affordability (DH2) Lead Paint Hazard Reduction $60,000 Provides activities in support of efforts to combat lead paint hazards in housing, including assessment and lead paint reduction or abatement, with grants of up to $14,200 to low/moderate income residents. Housing Rehabilitation Services and Staff $391,294 On-going staff support, including program management, technical assistance, loan packaging and inspection, for the City's rehabilitation loan program. Priority: High Objective/Outcome: Decent Housing/Accessibility (DHI) Purchase/Rehab/Resale $0 This program provides funding to address the redevelopment of derelict properties. Properties acquired are resold to low/mod homebuyers or to property owners who will provide affordable rents. Rental Unit Repair $50,000 1) Emergency Code Enforcement Loan Program This program provides for loans to correct code deficiencies and, in particular, emergency or health and safety corrections, for rental properties. The program aims at preventing the displacement of economically disadvantaged tenants as a result of code enforcement actions. 2) Rental Unit Rehabilitation Provides loans for property owners to correct code deficiencies and make substantial repairs to sub -standard rental units. 3) Accessibility Rehab This program provides forgivable loans to disabled tenants to make rental units accessible to the physically disabled. National Objective: Location: Proposed Accomplishments: Priority: Objective/Outcome: Low and Moderate Income Housing Citywide 10 Housing units High Decent Housing/Affordability (DH2) Total Housing Programs $814,855 ECONOMIC DEVELOPMENT PROGRAM Commercial/Industrial Building Rehab Loan Program and Revolving Loan $0 This program provides low interest and forgivable loans/grants for rehabilitation of commercial and industrial buildings in the City's older neighborhoods and downtown. Rehabilitation assistance is limited to improvements to the exterior of the building and to the correction of code violations. On-going revolving loan fund established. National Objective: Removal of Slum and Blight Location: Slum and Blight Area Priority: High Objective/Outcome: Suitable Living Environment/Sustainability (SL3) Economic Development Financial Assistance Program and Revolving Loan $0 This program provides both large and small businesses with attractive low-interest and forgivable loan packages or grants to support local economic development efforts, including projects to create or retain jobs, enhance the tax base and strengthen the local economy. To the greatest extent possible, these investment capital funds are used to benefit low and moderate income citizens, address slum and blight problems, leverage additional funding from state, federal and private sources and to assist in the retention and expansion of existing local businesses. On-going revolving loan fund established. National Objective: Low and Moderate Income Jobs Location: Citywide Priority: High Objective/Outcome: Economic Opportunity/Sustainability (E03) Total Economic Development Programs NEIGHBORHOOD and COMMUNITY DEVELOPMENT PROGRAMS $0 Accessible Curb Ramps $12,600 Replace curbs at intersections throughout the City with accessible ramps to make public sidewalks accessible to persons with disabilities. National Objective: Low and Moderate Income Benefit Location: Citywide Proposed Accomplishments: 4 Accessible ramps Priority: High Objective/Outcome: Suitable Living Environment/Sustainability (SL3) Neighborhood Infrastructure Improvements National Objective: Priority: Objective/Outcome: $13,400 Low and Moderate Income Benefit High Suitable Living Environment/Sustainability (SL3) 1) Neighborhood Street Overlays Provides for pavement overlays in income eligible neighborhoods. Location: Low/Moderate Income Areas Proposed Accomplishments: 3 streets 2) Neighborhood Sidewalk Program Grant program to income eligible homeowners, on a case-by-case basis, to pay a maximum of 75% of the cost to repair public sidewalks in front of their home. Grant amount varies based on percentage of area median income. Location: City Wide Proposed Accomplishments: 7 sidewalks 3) Neighborhood Lighting An on-going program to provide additional lighting in residential low/moderate income neighborhoods. Location: Low/Moderate Income Areas Proposed Accomplishments: 0 Light Neighborhood Recreation Programs $135,045 An enhanced recreation program is offered in the City's older low and moderate -income neighborhoods to meet the needs of at -risk youth promote self-esteem and build community. Activities include expanded after-school programs, open gym, basketball league, music lessons, playtime for tots, scholarships, swim passes, summer day camp and other recreational programs. National Objective: Low and Moderate Income Benefit Location: Low/Moderate Income Areas or City wide Proposed Accomplishments: 5730 persons Priority: High Objective/Outcome: Suitable Living Environment/Accessibility (SLI) Neighborhood Support Grants $14,560 This grant program provides resources for organized neighborhoods in low/mod income areas to encourage self -initiated revitalization efforts including physical improvements, clean-ups, communication efforts or other special projects. National Objective: Low and Moderate Income Benefit Location: Low/Moderate Income Areas Proposed Accomplishments: 2000 People Priority: High Objective/Outcome: Suitable Living Environment/Sustainability (SL3) Four Mounds HEART Program $10,000 Youth education program where youth experience hands-on learning while promoting neighborhood revitalization and earning high school diploma. National Objective: Low and Moderate Income Benefit Location: Citywide Proposed Accomplishments: 20 People Priority: High Objective/Outcome: Suitable Living Environment/Accessibility (SL1) Senior Center $18,200 Education and recreation services provided to elderly citizens at the Hills & Dales Lifetime Center. National Objective: Low and Moderate Income Benefit Location: Citywide Proposed Accomplishments: 600 People Priority: High Objective/Outcome: Suitable Living Environment/Accessibility (SL1) Washington Tool Library $15,790 An on-going free tool loan program operated by the Washington Neighborhood Tool Library, A non-profit organization staffed by volunteers. Funds are used to buy and repair tools and operating costs. Income eligible residents borrow tools at no charge for home repairs and improvements National Objective: Low and Moderate Income Benefit Location: City Wide Proposed Accomplishments: 450 People Priority: High Objective/Outcome: Suitable Living Environment/Accessibility (SL1) Purchase of Services Grant $20,000 Local non -profits may apply for funding that meets the City Council Goals and Priorities for FY 2016. National Objective: Low and Moderate Income Benefit Location: Low/Moderate Income Areas Proposed Accomplishments: To be determined Priority: High Objective/Outcome: Suitable Living Environment/Sustainability (SL3) Zoning Inspection/Enforcement $8,710 This project provides funding for inspection/enforcement staff services to low/mod income areas for zoning ordinance infractions and to provide support for neighborhood clean up efforts. National Objective: Low and Moderate Income Benefit Location: Proposed Accomplishments: Objective/Outcome: Total Neighborhood and Community Development Programs PLANNING AND ADMINISTRATION Low/Moderate Income Areas 45 Housing Units Decent Housing/Sustainability (DH3) $248,305 Neighborhood Development Services & Staff $83,967 The Neighborhood Development Specialist coordinates the City's neighborhood Development programs and provides technical assistance to organizations and residents to improve Dubuque's neighborhoods. Priority: High Objective/Outcome: Suitable Living Environment/Accessibility (SL1) Housing Planning/Administration Services and Staff $72,170 On-going staff support for general housing planning activities, including Consolidated Plan, and department administration. Priority: High Objective/Outcome: Decent Housing/Accessibility (DHI) CDBG Administration Services and Staff $107,729 Staff support for general management. Oversight and coordination of the Community Development Block Grant program; assures compliance with federal regulations and reporting requirements. Includes $30,000 for consultant for Consolidated Plan and Analysis of Impediments. Priority: High Objective/Outcome: Suitable Living Environment/ Sustainability (SL3) Total Planning and Administration Contingency $0.0 Grand Total: CDBG Funding Proposed for FY 2016 $1,327,026 COMMUNITY DEVELOPMENT BLOCK GRANT FY 2017 CDBG ANNUAL ACTION PLAN FOR THE PERIOD ENDING June 30, 2017 PROJECTED SOURCES FY2017 Entitlement 954,011 Program Income 373,015 Total Sources 1,327,026 Housing Development Programs: FY 2017 First Time Homebuyer Program 50,000 Homeowner Rehab Program 159,234 Housing Code Enforcement 104,327 Housing Rehabilitation Services and Staff 391,294 Lead Hazard Control Program 60,000 Rental Unit Rehabilitation 50,000 Housing Totals 814,855 Economic Development Programs: E.D. Financial Assistance Program Microenterprise Assistance Program Economic Development Totals - Neighborhood and Community Development Programs Accessible Curb Ramps 12,600 Neighborhood Infrastructure Improvements 13,400 Neighborhood Recreation Program 135,045 Neighborhood Support Grants 14,560 Four Mounds HEART 10,000 Senior Center 18,200 Washington Tool Library 15,790 Zoning Inspection/Enforcement 8,710 Purchase of Services 20,000 Neighborhood & Comm. Develop. Totals 248,305 Administration Neighborhood Development Services and Staff 83,967 Housing Administration 72,170 CDBG Admin. Services and Staff 107,729 Administration Totals 263,866 Contingency TOTAL CDBG 1,327,026 COMMUNITY DEVELOPMENT BLOCK GRANT - FY 2017 ANNUAL ACTION PLAN: CAPS 1 20 % ADMINISTRATIVE CAP Estimated FY 16 CDBG Allocation 954,011 Current Year Program Income 373.015 Total Available 1,327,026 Cap % 20 First Time Homebuyer Program Homeowner Rehab Progann Housing Administration Housing Code Enforcement Housing Rehabilitation Services and Stafl Lead Hazard Control Program Rental Unit Rehabilitation Mcroenterprise Assistance Program Harvest Kitchen and Bar Accessible Curb Ramps Information & Referral - Project Concern Multicultural Center Neighborhood Development Services and Staff Neighborhood Infrastructure Improvements Neighborhood Recreation Program Neighborhood SupportGrants Purchase of Services Four Mounds HEART Opening Doors Senior Center Washington Tool Library Zoning Inspection/Enforcement CDBGAdmin. Services and Staff Contingency TOTALS ADMIN FY17 AP AMD 1 72,170 83,967 107,729 135,045 263,866 0 115 % PUBLIC SERVICE CAP I 954,011 FY 16 CDBG Allocation 493,629 Previous Year Program Income 1,447,640 Total Available 15% Public SeMce Cap PUB SERVICE FY17 AP AMD 1 135,045 14,560 20,000 10,000 18,200 15,790 213,5951 0 OVER (1,539) (265,405) (3,551) (217,146) F:v-SERMCDBG\CDBG\AnnuaIRamFY 17\ Dopy of FY17 Annual Acction Plant - Adjusted w th E FY17 AMD 1 263,866 0 213,595 0 849,565 0 1,327,026 0 60,000 50,000 0 0 12,600 0 0 13,400 8,710 FY17 Total 1 1,327,026 Over/Under 0 General Fund Expense 9 STATE OF IOWA {SS: DUBUQUE COUNTY CERTIFICATION OF PUBLICATION I, Suzanne Pike, a Billing Clerk for. Woodward Communications, Inc., an Iowa corporation, publisher of the Telegraph Herald,a newspaper of general circulation published in the City of Dubuque, County of Dubuque and State of Iowa; hereby certify that the attached notice was published in said newspaper on the following dates: February 05, 2016, and for which the charge is $28.13. Subscribed to before me, a Notary Public in and for Dubuque County, Iowa, this Yday o: T" , 20 Notary Public in and for Dubuque County, Iowa. FrI EY1 A V V Py" r CITY OF DUBUQUE, IOWA OFFICIAL NOTICE PROPOSED ANNUAL', PLAN ACTION PLAN FOR'USE OF FY 2017 j TY DEYEL=',i COMMUNI � ^� wi of pr ur _ ar th 01 is t1] ment to Hous Is for 2017 r X2016), 2016 to for the:+il a; Iowa. vihiinue in ' the ed Plan for nd Commun lopment as - by the City;,, ed summary l activities to', be n are on file ereviewed-at Ing loeatibns: ,I he City Clerk, 60 West, 13th lousing' and ty . Develop- 1 )artment, 350' Street—Suite :arnegie-Stout Library, 360_ li h Street; and fDubuque.' www.cityof ^, org. ions or com- 1 ay be directed ca.Haugen; N�l.4'S — or ehau'genCcityof dubuque.org. Written' comments regarding the above , public hearing may be', submitted ito the City Clerk's Office' on or before said time of public, hearing. At said'' time and place of public hearings all interested citizens and l parties will be given an opportunity to be heard for or against said proposal:` Any visual or hearing impaired persons need- ing special assistance or=s with special' accessibility needs should contact the City Clerk's office at (563) 589-4106 or TDD (563) 690-6678 at least 48 hours prior to ,the meeting. Kevin S Firnstahl,, CMc; City Clerk It 2/5 STATE OF IOWA {SS: DUBUQUE COUNTY CERTIFICATION OF PUBLICATION I, Suzanne Pike, a Billing Clerk for Woodward Communications, Inc., an Iowa corporation, publisher of the Telegraph Herald,a newspaper of general circulation published in the City of Dubuque, County of Dubuque and State of Iowa; hereby certify that the attached notice was published in said newspaper on the following dates: February 05, 2016, and for which the charge is $28.13. Subscribed to before me, a Notary Public in and for Dubuque County, Iowa, this yoff day o, , 20 /,6 Notary Public in and for Dubuque County, Iowa. iARY 1C. WESTEFli'';s.'' $..t Commission Numb<r ?; $5 CITY OF DUBUQUE, IOWA OFFICIAL NOTICE PROPOSED ANNUAL PLAN ACTION PLAN FOR USE OF FY 2017 COMMUNITY DEVEL- OPMENT BLOCK GRANT (CDBG) FUNDS In conjunction with a related City budget hearing, the Dubuque City Council will hold a public hearing on Wednesday, February 17, 2016 commencing at 6:30 p.m. in the Council Chambers, His- toric Federal Building, 350 West 6th Street, Dubuque, Iowa to obtain comments from citizens relative to the proposed Annual Action Plan for the use of Community Devel- opment Block Grant (CDFiscal YearFunds for is 2017 (Program Year 2016) from July 1, 2016 to June 30, 2017 for the City of Dubuque, Iowa. The City of Dubuque will direct the use of Community Develop- ment Block Grant funds to meet the priorities identified in the Consolidated Plan for Housing and Commun- ity Development as adopted by the City Council. A detailed summary of the activities proposed to , be undertaken are on file and can be reviewed at the following locations: Office of the City Clerk, City Hall, 50 West 13th Street; Housing and Community Develop- ment Department, 350 West 6th Street, Suite 312; Carnegie -Stout Public Library, 360 West llth Street; and City of Dubuque website www.cityof dubuque.org. Questions or com- ments may be directed to Erica Haugen, Housing and Commun- ity Development De- partment, 563-589-4212 or ehaugen®cityof dubuque.org. Written comments regarding the above public hearing may be submitted to the City Clerk's Office on or before said time of public hearing. At said time and place of public hearings all interested citizens and parties will be given an opportunity to be heardfor or against said proposal. Any visual or hearing impaired persons need- ing special assistance or persons with special accessibility needs should contact the City Clerk's Office at (563) 589-4100 or TDD (563) 690-6678 at least 48 hours prior to the meeting. Kevin S. Firnstahl, CMC, City Clerk 1t 2/5 P0 AAENTOF 04"HQ yQ* 101110*i 9e4N oeVE�-0e U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT WASHINGTON, DC 20410-7000 OFFICE OF THE ASSISTANT SECRETARY FOR COMMUNITY PLANNING AND DEVELOPMENT February 16, 2016 The Honorable Roy D. Buol Mayor of Dubuque 50 W 13th St Dubuque, IA 52001-4805 Dear Mayor Buol: RECEIVED 16 MAR 14 P1112: 04 City Clerks Office ubu que, 11 I am pleased to inform you of your jurisdiction's Fiscal Year (FY) 2016 allocations for the Office of Community Planning and Development's (CPD) formula programs, which provide funding for housing, community and economic development activities, and assistance for low and moderate -income persons and special populations across the country. President Obama signed Public. Law 114-113 on December 18, 2015, which includes FY 2016 funding for these programs. Your jurisdiction's FY 2016 available amounts are: Community Development Block Grant (CDBG) $963,306 HOME Investment Partnerships (HOME) $ 0 Housing Opportunities for Persons with AIDS (HOPWA) $ 0 Emergency Solutions Grants (ESG) $ 0 This letter highlights several important points related to these programs. First, Secretary Julian Castro is committed to making HUD the "Department of Opportunity" and has established a number of initiatives intended to achieve that goal. In 2015, we celebrated the 50th anniversary of the Department's establishment, and these initiatives build on HUD's mission to promote homeownership, support community development, and increase access to affordable housing free from discrimination. The Department is working hard with grantees on these key goals and urges you to review the entire plan at: htt ://ortal.hud. tov/h:ud ortal/IIL D?sic=/huclvision, In an era when the nation's severe shortage of affordable rental housing creates substantial housing instability—contributing to homelessness, family mobility and unequal educational attainment—I am particularly interested in working with grantees to increase affordable housing production through our CPD formula programs. Second, HUD recommends that grantees effectively plan and implement programs that leverage these critical Federal financial resources to achieve the greatest possible return for the communities and individuals they are intended to assist. • HUD urges grantees to consider using CDBG funds, to the extent possible, to support investments in predevelopment activities for infrastructure and public facilities activities that can provide multiple benefits for communities. • HUD has created a Renewable Energy Toolkit specifically tailored to CPD grantees. To the. extent that grantees are interested in using funds for renewable energy projects, please feel free to access that toolkit online at:www.hudexchan Xe,info. • If you would like assistance from CPD in redesigning, prioritizing or targeting your programs, www.hud.gov espanol.hud.gov 2 either you or the head of the agency that administers your program may request assistance through your local CPD Director. Third, CPD is asking grantees to renew their focus on administration and management of these programs as part of an effort to ensure effective use of the funds. Throughout 2016, CPD and HUD's Office of the Inspector General expect to issue a range of guidance that will highlight particular areas where grantees commonly stumble. I urge grantees to actively review their policies and procedures governing these programs and to strengthen management practices, particularly with regard to recordkeeping, in order to avoid problems and risk this vital funding. This focus on administration is particularly critical because the Integrated Disbursement and Information System (IDIS), which is HUD's financial and data system for managing these formula programs, will no longer commit and disburse grant funds on a first -in first -out (FIFO) basis beginning with the FY 2015 grants. All FY 2015 and future grants will be committed and disbursed on a grant specific basis. The Office of Community Planning and Development is looking forward to working with you to promote simple steps that will enhance the viability and performance of these critical programs and successfully meet the challenges that our communities face. Please contact your local CPD office if you or your staff has any questions or comments. Sincerely, Harriet Tregoning Principal Deputy Assistant Secretary