cover
TO: Mayor Thomas J. Weisner
FROM: Dan Barreiro, Chief Community Services Officer
DATE: January 10, 2014
SUBJECT:
A Resolution Authorizing Approval of a Revision to the City of Aurora Annual Action Plan 2014.
PURPOSE:
The City of Aurora receives annual CDBG and HOME program entitlement allocations from the U.S. Department of Housing and Urban Development (HUD) to support housing and community development efforts that benefit low and moderate income residents of Aurora. To annually reapply for federal funds, the City submits an Annual Action Plan (AAP) to HUD. The funding amounts contained in the AAP for each grant source are estimates only, based on prior year funding levels minus a contingency. Submitting an AAP to HUD with budget estimates allows for the City to utilize federal funding consistent with the City's fiscal (calendar) year. The City of Aurora Annual Action Plan 2014 was approved by the City on November 12, 2013 via R13-319.
After the November approval of the City's AAP, HUD issued new guidance to its Entitlement grantees requiring "Contingency" language be included in our AAP to address the fact that our sub-awards are estimates due to the timing of federal funding approval. HUD wants to City to be able to reconcile its initial federal funding estimate with actual HUD award when it is known without having to engage in an additional amendment process later in the year. This has caused the City to require a resubmittal of its AAP which is the requested approval in this staff report.
BACKGROUND:
The result of the new HUD mandated contingency language will be to address the impacts of increased or decreased funding levels from its estimate amount early in the year to the actual entitlement which is known 4-6 months later. This contingency language allows the City to implement CDBG/HOME funding without the need for additional review and public participation process at a later date when federal funding amounts are finalized. HUD believes that inclusion of contingency language will minimize the workload for HUD and local staff in processing AAP amendments.
DISCUSSION:
The proposed contingency language will affect 2014 entitlement funding for the CDBG and HOME programs. Should actual CDBG and HOME Entitlement funding awarded by HUD reflect a decrease from the estimated amount, all activity budgets funded with 2014 entitlement funds will be reduced proportionally across all said activities.
Should actual CDBG Entitlement funding awarded by HUD reflect an increase from the estimated amount, 20% of said excess amount shall be awarded to CDBG Administration, and 80% of said excess amount shall be awarded to Rebuilding Together Aurora - Safe at Home program. Should actual HOME Entitlement funding awarded by HUD reflect an increase from the estimated amount, all activity budgets funded with 2014 entitlement funds will be increased proportionally across all said activities. A decrease or increase in 2014 entitlement funds will have no effect on the award of re-allocated funds remaining from prior programs years or program income, which will still require a public participation process.
IMPACT STATEMENT:
Although this revision will impact the agencies awarded funding through the AAP process, it is unknown what the effect will be until such time as the actual HUD funding amount is announced in late spring. The functional impact of this late AAP revision has been to delay agreements with City funded subrecipients, who have been notified of the delay and are working with City staff to lessen any impacts. .
RECOMMENDATIONS:
Staff recommends approval of the attached Resolution authorizing approval of a revision to the City of Aurora's Annual Action Plan for 2014
cc: Alderman Saville, Chairman
Alderman Donnell
Alderman Irvin
Alderman Hart-Burns, Alternate
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
title
A Resolution Authorizing Approval of a Revision to the City of Aurora Annual Action Plan 2014
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 City of Aurora has initiated numerous community development activities through funding by the U. S. Department of Housing and Urban Development (HUD) and an Annual Action Plan is required as a pre-requisite to any such funding; and
WHEREAS, the City of Aurora City Council approved R13-319 on November 12, 2013, approving the Annual Action Plan 2014; and
WHEREAS, HUD has issued new guidance to its entitlement communities requiring a Revision to the Annual Action Plan to provide contingency direction on the award of funds in the event that actual funding levels differ from estimated levels; and
WHEREAS, the City of Aurora's Block Grant Working Committee recommended adoption of the Revision to City of Aurora Annual Action Plan 2014 attached hereto as Exhibit "A", at its January 22, 2014 special meeting; and
NOW, THEREFORE, BE IT RESOLVED that the City Council of Aurora, Illinois, as follows: that the Revision to the City of Aurora Annual Action Plan 2014 attached hereto and incorporated herein as Exhibit "A" is hereby adopted, and that all other provisions remain in full force and effect.
PASSED AND APPROVED on ______________.
AYES ____ NAYS ____ NOT VOTING ____ ABSENT ____
____________________________ __________________________
Alderman Bohman, Ward 1 Alderman Garza, Ward 2
____________________________ __________________________
Alderman Mesiacos, Ward 3 Alderman Donnell, Ward 4
____________________________ __________________________
Alderman Peters, Ward 5 Alderman Saville, Ward 6
____________________________ __________________________
Alderman Hart-Burns, Ward 7 Alderman Mervine, Ward 8
____________________________ __________________________
Alderman Bugg, Ward 9 Alderman Johnson, Ward 10
____________________________ __________________________
Alderman Irvin, At Large Alderman O'Connor, At Large
ATTEST:
____________________________ __________________________
City Clerk Mayor
Exhibit "A"