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TO: Mayor Richard C. Irvin
FROM: Chris Ragona, Community Development Manager, Community Development Division
DATE: January 7, 2020
SUBJECT:
A resolution Authorizing Approval of the 2020-2024 Consolidated Plan, Update to the Neighborhood Revitalization Strategy Area, 2020 Annual Action Plan Funding Recommendations, and Substantial Amendments (2019-#3).
PURPOSE:
Staff requests authorization to submit the 2020-2024 Consolidated Plan for Federal Funding and the accompanying 2020 Annual Action Plan for Community Development Block Grant (CDBG), Home Investment Partnership Program (HOME), and Emergency Solutions Grant (ESG) Program to the U.S. Department of Housing and Urban Development (HUD). Annually, the City of Aurora receives approximately $1.5 million dollars in CDBG and $688,000 in HOME funds that are used to provide decent, safe, and sanitary housing and provide services and projects to low-to-moderate income persons (defined as earning at or below 80% of the Area Median Income, or $73,100 for a family of four in 2019). Staff also requests authorization to approve an update to the Neighborhood Revitalization Strategy Area (NRSA).
BACKGROUND:
Every five years the City, as a direct recipient of CDBG, HOME, and ESG funds, must plan for how these funds will benefit the Aurora community and produce a Consolidated Plan (“Con Plan”) for Federal Funding (Draft as Attachment "B"). The City began an intensive community participation process in the summer of 2019 and requested guidance from City residents and stakeholder groups. As a result of this public engagement effort, the City received input from over 230 Aurora residents as well as nine stakeholder groups (representing 20 agencies). The results of citizen input, demographic, and mapping analysis, as well as staff analysis and discussions, form the backbone of recommendations to the Consolidated Plan, the goals of which are reinforced annually through CDBG, HOME, ESG funding recommendations in the Annual Action Plan Process (Draft as Attachment “A”). The 2020-2024 Con Plan appendix and NRSA Update (Draft as Attachment “C”) are merged into one document for submission to HUD.
DISCUSSION:
2020-2024 Consolidated Plan
The 2020-2024 Consolidated Plan stresses the following objectives:
1. Expand the Affordable Housing Stock;
2. Strengthen Homeownership among Low and Moderate Income Households;
3. Ensure the Housing Stock is Safe, Healthy, and Accessible for all Residents;
4. Prevent and Reduce Homelessness;
5. Strengthen the Organizational Capacity among Nonprofit Organizations;
6. Foster Small and Local Business Development;
7. Address Blighted Property Issues;
8. Enhance and Improve Access to the Number of Community Amenities in Low and Moderate Income Areas;
9. Promote Energy-Efficiency and Sustainable Investment in Low and Moderate Income Areas
For the 2020 Annual Action Plan, a summarized list of agencies recommended by the Block Grant Working Committee for CDBG funding is attached, and based on applications from a request for proposals that was issued in May 2019 as well as a 2nd request for projects in September 2019.
All funding recommendations in the 2020 Annual Action Plan must correspond to an objective listed in the draft 2020-2024 Consolidated Plan.
Neighborhood Revitalization Strategy Area Update
The NRSA Plan was originally approved in 1999, and modified in 2011. The NRSA is a special provision under the Community Development Block Grant Program to reinvigorate distressed community areas. Selection of an NRSA must be based on an assessment of economic conditions, opportunities for economic development and anticipated barriers and challenges. An NRSA plan should promote economic progress with a focus on activities that would create economic opportunities for low- and moderate-income residents of the NRSA. Key updates include:
-Expansion of NRSA boundaries to include City corridors into the downtown including new businesses and vacant properties for possible redevelopment (Draft map as Attachment "D");
-Update to strategic plan including identifying potential challenges and new opportunities;
-Establishment of new goals and performance outcomes.
The City has developed actionable benchmarks over the course of the next five years, and will monitor progress made every year with annual reports to HUD.
2020 Funding Recommendations
On November 6, 2019, BGWC members reviewed and voted unanimously to approve staff’s preliminary 2020 CDBG recommendations. The recommendations reflected an assumption of the same funding levels for CDBG and HOME, as were received in FY 2019 ($1,550,613 and $688,020, respectively) and anticipated prior year resources from projects that came in under budget and received program income. Additionally, BGWC members approved a second set of projects on December 18, 2019. The revisions are highlighted in Attachment A. (November minutes provided as Attachment "E" and December Minutes to be added when they become available later this month).
It should be noted that future Congressional action could result in changes to the City’s anticipated funding levels. Any additional CDBG funding received through program income, an increase in City funding, or projects that end up under budget will be placed in the Neighborhood Revitalization Activity. The Community Development Division (CDD) is also recommending 6 activities to be placed in the 2019 Annual Action Plan (via a Substantial Amendment) to assist in increasing our spending timeliness ratio and allow applicants to access funding more quickly.
Please also note that funds are also programmed to “administration” as well as “public services” based on regulatory caps. The CDBG cap is 20%, and will be roughly $310,102. Administration funds are used for staff salaries, overhead, and training opportunities. Attached is a summary of the applications received, funding requested, and the recommendations for funding. The CDBG public services cap is 15% and cannot exceed $232,592. Public services funds are used to support an agency’s operations costs (staff time, materials, etc.) specific to a particular CDBG program. Please note that public service activity funds must be expended during the City’s program year and cannot be carried over into another year.
The City received a total of 19 proposals, one of which was withdrawn by the City in September 2019. As you will notice, the City submitted 7 applications and the CDD has recommended funding for 6 projects.
Public Facilities and Infrastructure Improvements:
Four applications were recommended for funding in the amount of $692,000 and two of these activities may be placed in the 2019 Action Plan to allow for the project to be started in early 2020. The first project provides funding for exercise equipment and a walking path at Walters Park. The second project provides funding for playground equipment for the Hope Wall Special Needs Project. The third project provides funding for scattered site street resurfacing in CDBG eligible block groups. The final project provides funding for the rehabilitation of the Todd School building for the non-profit Mutual Ground to relocate offices to provide services to domestic violence survivors.
Public Services:
CDD is recommending funding to seven agencies in the amount of $232,500. Services include activities to assist senior services, substance abuse, domestic violence victims, housing legal services, job training opportunities, and additional case management. The CDD is also recommending funding to the new Financial Empowerment Center the City plans to open in early 2020. Should actual funding be less than anticipated, these projects would take an across the board percentage reduction based on the amount of public service funds actually available.
Housing:
Three housing activities have been recommended for funding in the amount of $405,000 for rehabilitation activities of single family homes to create and maintain affordable owner occupied housing. In addition to funding for rehabilitation activities, CDD staff is recommending additional funding to continue providing down payment assistance as part of the 2018 Choose Aurora Down Payment Assistance Program. CDD staff is working on identifying eligible affordable rental housing projects to utilize Federal HOME Program dollars the City of Aurora receives annually.
Economic Development:
Four applications identified as economic development were received and all have been recommended for partial funding totaling $225,000. Partial funding was recommended for two applications based on staff recommendations to reclassify a project as public service and total funding availability. The first project provides job training for those who are experiencing high barriers to employment, especially those affected by poverty and homelessness, and help them build the skills needed to secure quality, lasting jobs (classified as a public service). The second opportunity provides forgivable loans to businesses identified as micro enterprises seeking to establish, stabilize, or expand their businesses within the City of Aurora. The third opportunity provides funding for technology companies to expand or relocate in the NRSA. And lastly, the final opportunity will provide training and business development opportunities for businesses located within the NRSA.
HOME and ESG Funds:
As has been past practice by the City, CDD staff recommend that the City’s 2020 HOME funds be allocated as per HUD’s regulatory caps as follows: program administration is 10%, direct project activities is 75% and Community Housing Development Organizations is 15%. The City of Aurora has an open Notification of Funding Availability for HOME projects and approximately $2.5 million dollars is available when factoring in anticipated 2020 funding. Once the CDD receives direct and CHDO activity proposals, CDD staff will provide specific recommendations to the BGWC at a later date. Projects will then move through the City’s Substantial Amendment process for HOME funding approval. Similarly, the City will follow the same process for 2020 Emergency Solutions Grant (ESG) funds should the City receive an annual allocation. The City last received an allocation in 2018.
2020 Annual Action Plan Calendar
Staff is preparing the 2020-2024 Consolidated Plan and 2020 Action Plan for submittal to the U.S. Department of Housing and Urban Development. HUD has advised that we should not submit either plan until our actual allocation amounts are known. HUD typically requests each plan to be submitted within 60 days of the allocation announcement. Currently a continuing resolution has been passed by Congress and more details on 2020 funding should be outlined by the end of January 2020. The City will finalize its 2020-2024 Consolidated Plan and Annual Action Plan and be ready to move forward with the City’s funding recommendations once the HUD submittal deadline is known.
The enclosed packet includes the following documents:
1. Draft 2020 CDBG Recommendation Project List;
2. Draft 2020-2024 Consolidated Plan;
3. Draft Update to the Neighborhood Revitalization Strategy Area.
In accordance with the City of Aurora’s Citizen Participation Plan and the requirements of the U.S. Department of Housing and Urban Development Department, the 30-day notices for the 2020-2024 Consolidated Plan, Update to the Neighborhood Revitalization Strategy Area, 2020 Annual Action Plan Funding Recommendations, and Substantial Amendments (2019-#3) were posted in the Beacon News and Reflejos newspapers on December 22, 2019. The Plans and Amended Plans were also made available for public review at all Aurora public library branches, the Community Development Division’s office, and the City's website. A public hearing was held on Wednesday, January 8, 2020 at 4:00 p.m. to provide the public with an opportunity to comment.
IMPACT STATEMENT:
Since its inception in 1974, the CDBG program has invested $47,658,065 in the City of Aurora. These funds have supported streets and infrastructure, housing development, job training, youth development, homeless services, historic preservation, and senior services among others. Since becoming an entitlement community under the HOME program 9 years ago, the City has used $2,745,643 in HOME funds to rehabilitate its aging housing stock, create affordable rental housing units, and explore additional uses of HOME funds to further expand affordable housing throughout the City. Since its 2018 receipt of ESG funds, the City has allocated $136,287 to support homelessness prevention throughout the City.
RECOMMENDATIONS:
Staff recommends approval of a Resolution Authorizing Approval of the 2020-2024 Consolidated Plan for Federal Funding, the 2020 Annual Action Plan Funding Recommendations, update to the Neighborhood Revitalization Strategy Area, and Substantial Amendments (2019-#3). Staff also requests authorization for the City's Mayor, Chief Community Services Officer, Community Development Manager, or their designees to execute any contracts as well as any other documents associated with the 2020-2024 Consolidated Plan for Federal Funding, the 2020 Annual Action, update to the Neighborhood Revitalization Strategy Area, and Substantial Amendments (2019-#3), including but not limited to HUD's program administration requirements.
Please do not hesitate to let me know if you have any questions, 630-256-3321 or cragona@aurora-il.org.
cc: Alderman Scheketa Hart-Burns, Chairman
Alderman Patty Smith, Vice Chairperson
Alderman Ted Mesiacos
Alderman Judd Lofchie
Alderman Michael B. Saville
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
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A Resolution authorizing approval of the 2020-2024 Consolidated Plan, 2020 Annual Action Plan, update to the Neighborhood Revitalization Strategy Area, and Annual Action Plan Substantial Amendment (2019-#3)
body
WHEREAS, the City of Aurora has a population of more than 25,000 persons and is, therefore, a home rule unit under subsection (a) of Section 6 of Article VII of the Illinois Constitution of 1970; and
WHEREAS, subject to said Section, a home rule unit may exercise any power and perform any function pertaining to its government and affairs for the protection of the public health, safety, morals, and welfare; and
WHEREAS, the 2020-2024 Consolidated Plan, 2020 Annual Action Plan, update to the Neighborhood Revitalization Strategy Area, and Substantial Amendment 2019 -#3 will define priorities for community development funding; and
WHEREAS, the City of Aurora's Block Grant Working Committee recommended adoption of the 2020-2024 Consolidated Plan, 2020 Annual Action Plan, and update to the Neighborhood Revitalization Strategy Area at its December 18, 2019 meeting, and
WHEREAS, funding will be available in the 2020 City Budget CDBG program account (221-1330-801-43-series), HOME program account (213-1330-801-43-series);
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Aurora, Illinois, finds as facts all of the preamble recitals of this Resolution and hereby approves a resolution authorizing 2020-2024 Consolidated Plan, 2020 Annual Action Plan, and update to the Neighborhood Revitalization Strategy Area, Substantial Amendment (2019-#3), and authorizes the City's Mayor, Chief Community Services Officer, Community Development Manager, or their designees to execute any contracts as well as any other documents associated with these approvals, including but not limited to HUD's program administration requirements.