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TO: Mayor Richard C. Irvin
FROM: Chris Ragona, Community Development Manager, Community Development Division
DATE: July 20, 2020
SUBJECT:
A Resolution authorizing Annual Action Plan Substantial Amendment 2020-#2 to reallocate prior year resources and current year resources in response to the Coronavirus pandemic and other eligible activities.
PURPOSE:
Staff requests authorization of Annual Action Plan Substantial Amendment 2020-#2 to prior year CDBG and HOME resources, upcoming supplemental 2020 CDBG funding in response to the COVID-19 pandemic, and other eligible community development activities. A summary of the proposed recommendations can be found in the table outlined below.
BACKGROUND:
The 2020-2024 Consolidated Plan and 2020 Annual Action Plan were approved by City Council on 1/28/2020, R20-016. A Substantial Amendment to the City’s 2020 Annual Action Plan was approved by City Council on 4/28/20, R20-091. This Substantial Amendment was required by the Department of Housing and Urban Development (HUD) due to additional funding received to support the City’s COVID-19 pandemic response and the creation of new activities proposed in the Plan. Currently, HUD’s program requirements have necessitated a second Substantial Amendment in order to fund additional COVID-19 response activities and to reallocate prior CDBG funds to eligible activities. In order to expedite CDBG-CV funding to the City's subrecipient agencies and in keeping with HUD's COVID-19 public comment regulatory waivers, a reduced public comment period is scheduled for 7/28/2020 to 8/04/2020 and a virtual public hearing is scheduled for 7/30/2020 (Please see public notice, Attachment 1). The proposed Substantial Amendment to the City of Aurora’s 2016, 2017, 2018, 2019, and 2020 Annual Action Plans, public comment, and draft public hearing minutes are attached (Attachments 2, 4, and 5, respectively).
DISCUSSION:
Staff requests authorization of Annual Action Plan Substantial Amendment 2020-#2 to provide CDBG funding for the projects listed below as a response to the COVID-19 pandemic and other eligible activities. The CDBG proposed projects are recommended to reprioritize funding and projects originally identified in the 2016, 2017, 2018, 2019 and 2020 Annual Action Plans. A table of the re/allocated funds has been provided below as well as a summary of the proposed activities.
|
Proposed New or Amended CDBG Activity |
Recommended Re/Allocation Amount |
CDBG/HOME Program Year Funding Source |
Original Funding Allocation |
Project Reallocation Comments |
|
*CDBG-CV-2020-02 - Non Profit Public Service Activities (additional funding remaining) |
$102,750 |
CDBG funds received as part of COVID-19 Stimulus #3 Package and reallocation of 2020 CDBG funds. |
$200,000 |
Projects Recommended Below. An amount of $102,000 ($70,000 in CDBG-CV and $32,000 in 2020 CDBG funds) will be held for additional long term COVID-19 recovery efforts. Staff will continue to monitor the needs and availability of residents to recommend projects for this available funding. |
|
*CDBG-2020-CV-02a - Association for Individual Development - COVID-19 Response Project |
$11,750 |
CDBG funds received as part of COVID-19 Stimulus #3 Package |
N/A |
Installation of safety measures including plexiglass, hand sanitizing stations, dividers, and other improvements to improve social distancing. |
|
*CDBG-2020-CV-02b - Marie Wilkinson Food Pantry - Cold Storage Project |
$15,000 |
CDBG funds received as part of COVID-19 Stimulus #3 Package |
N/A |
Food Pantry-Cold Storage Project to increase capacity to serve the food due to increased demand caused by COVID-19. |
|
*CDBG-2020-CV-02c - Hesed House - COVID-19 Services |
$50,000 |
CDBG funds received as part of COVID-19 Stimulus #3 Package |
N/A |
Increase in staff hours due to reduction in volunteers and to assist clients due to social distancing guidelines. |
|
*CDBG-2020-CV-02d - Rebuilding Together Aurora - Personal Protection Equipment |
$2,500 |
CDBG funds received as part of COVID-19 Stimulus #3 Package |
N/A |
Personal protection equipment for agency workers, contractors, and clients including masks and gloves to prevent the spread of the pandemic. |
|
*CDBG-2020-CV-02e - Aurora Interfaith Food Pantry - COVID-19 Safety Improvements |
$35,000 |
CDBG funds received as part of COVID-19 Stimulus #3 Package |
N/A |
Capital improvement project that will ensure their market and waiting area are compliant with social distancing requirements. |
|
*CDBG-2020-CV-02f - Marie Wilkinson Food Pantry - COVID-19 services |
$15,000 |
CDBG funds received as part of COVID-19 Stimulus #3 Package |
N/A |
Salaries to increase capacity to serve food due to increased demand caused by COVID-19. |
|
*CDBG-2020-CV-03 - Emergency Rental Subsistence Payments |
$500,000 |
CDBG-2020-12 - Rebuilding Together Aurora - Safe at Home Program - $140,000 & 2020-09 - Fox Valley Park District - Walters Park - $192,000 |
$200,000 |
To assist residents directly impacted by COVID-19 by recommending approval for a set aside for the activity of subsistence emergency rent subsistence payment assistance. |
|
HOME-2020-02 - Community Contacts - Community Housing and Development Organization Set Aside |
$300,000 |
2016-2019 Community Housing and Development Organization Set Aside through the Home Investment Partnership Program (HOME) |
N/A |
Community Contacts will acquire, rehabilitate, and resell modest single family homes to income eligible first time homebuyers. |
|
Estimated Allocation / Reallocation Total |
$1,032,000 |
*All projects are subject to additional review based on pending guidance to be released by HUD later this year.
Eligibility for the above activities must meet HUD's National Objective for low and moderate income benefit and also address the City's 2020-2024 Goals and Objectives. Each activity must meet specific criteria to demonstrate that funds will aid in the prevention, recovery, and response to the COVID-19 global pandemic. A summary of proposed changes to CDBG projects can be found in Attachment 3. City staff is also closely monitoring additional CDBG funding that may be distributed both at the state and federal level. Any additional funding received would be subject to another substantial amendment and City Council approval.
CDBG Revised Funding Recommendations
Non-Profit Public Service Assistance
Community Development recommended $200,000 in COVID-19 CDBG funding to assist non-profit agencies specializing in providing basic needs as part of Substantial Amendment 2020-#1 to the 2020 Annual Action Plan. These funds were approved by City Council on R20-091, 4/28/2020. An application was released to agencies on 5/28/2020 and was due on 6/19/2020. A total of 12 applications were received, and staff is recommending the approval of the following 5 activities (1 project split into 2 activities):
CDBG-2020-CV-02a - Association for Individual Development - COVID-19 Response Project $11,750
CDBG-2020-CV-02b - Marie Wilkinson Food Pantry - Cold Storage Project - $15,000
CDBG-2020-CV-02c - Hesed House - COVID-19 Services - $50,000
CDBG-2020-CV-02d - Rebuilding Together Aurora - Personal Protection Equipment - $2,500
CDBG-2020-CV-02e - Aurora Interfaith Food Pantry - COVID-19 Safety Improvements - $35,000
CDBG-2020-CV-02f - Marie Wilkinson Food Pantry - COVID-19 Services - $15,000
A description of each activity can be found in the funding recommendation table above.
Additionally, staff is recommending to hold $102,750 in non-profit assistance for long term COVID-19 recovery efforts. Staff will monitor the need and availability of eligible activities and recommend the allocation of funding for projects as needed for the remainder of 2020 and early 2021. The City also plans to release an application for 2021 CDBG funds, with details on the application due date and mandatory meeting to be released later this summer.
Emergency Rental Assistance Payment Program
Community Development recommended $200,000 in CDBG-CV funding to assist residents directly impacted by COVID-19 by recommending approval for a set-aside for the activity of subsistence payments emergency assistance. These funds were approved by City Council on 4/28/2020. An additional $300,000 is being recommended for approval to increase the total Subsistence Payment Assistance Program to $500,000. Eligible applicants will need to provide household income documentation, proof of need, and documentation their household has been affected by the pandemic to receive up to 2 months of past due rent. Any payments will be made directly to landlords with income restrictions, maximum payments, and other details to be considered as staff works on an application and procedures for distributing funding. Due to the limited funding and high probability of applications, a lottery of eligible households may be considered to streamline the process in awarding funding. City staff anticipates an estimated 200-400 households can be assisted with this program. The application will not be released until funding has been received by the City so the release date of the application is to be determined. Additionally, the application will be made in an electronic form, paper form, and in both English and Spanish.
This increase in funds is coming from two previously approved projects that are now being recommended for postponement until next year, with funding to be set-aside from the City’s 2021 CDBG allocation. Project CDBG-2020-12 - Rebuilding Together Aurora - Safe at Home Program - $140,000 is a rolling application that can utilize prior year CDBG funds in order to continue assisting clients with ADA improvements to owner occupied homes. Project CDBG-2020-09 - Fox Valley Park District - Walters Park - $192,000 is being recommended for a 2021 construction start date. This project will fund a walking track along with permanent exercise equipment along the track.
Home Investment Partnership Program Recommendation
Community Housing Development Organization Set Aside
City staff has been working with the non-profit agency Community Contacts for several months to certify that their agency qualifies as Community Housing Development Organization (CHDO). A CHDO is a grass roots agency with a specific service area and special board make up. 15% of annual HOME funds received by the City must be set aside for certified CHDOs for affordable housing activities. Community Contacts plans to acquire, rehabilitate, and then sell each home to first time homebuyers. Community Contacts will receive a developer fee, and any profits from the sale will be reinvested into the future single family home purchases. $300,000 is being recommend for approval.
IMPACT STATEMENT:
This action will have a positive impact on the City's community development efforts and response to the COVID-19 pandemic.
RECOMMENDATIONS:
Staff recommends approval of the proposed Resolution authorizing Annual Action Plan Substantial Amendment 2020-#2 to reflect funding allocations for the CDBG Program and approval of an update to the City’s Staff recommends approval of the proposed Resolution authorizing Annual Action Plan Substantial Amendment 2020-#2 to reflect funding allocations for the CDBG Program and approval of an update to the City’s 2016, 2017, 2018, 2019, and 2020 Annual Action Plans. 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 Substantial Amendment 2020-#2 including but not limited to HUD's program administration requirements.
Annual Action Plans. 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 Substantial Amendment 2020-#2 including but not limited to HUD's program administration requirements.
cc: Alderman Emmanuel Llamas
Alderman Juany Garza
Alderman Theodoros “Ted” Mesiacos
Alderman Bill Donnell
Alderman Carl Franco
Alderman Michael B. Saville
Alderman Scheketa Hart-Burns
Alderman Patty Smith
Alderman Edward Bugg
Alderman Judd Lofchie
Alderman Robert O’Connor
Alderman Sherman L. Jenkins
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
title
A Resolution authorizing Annual Action Plan Substantial Amendment 2020-#2 to reallocate prior year resources and current year resources in response to the Coronavirus pandemic and other eligible activities.
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, Substantial Amendment 2020-#2 will define priorities for community development funding and define obligations to inform the public on the proposed changes; and
WHEREAS, CDBG funding will be available in the 2020 City Budget CDBG program account (221-1330-801-43-series); and
WHEREAS, CDBG-CV funding will be available in the 2020 City Budget under a new HUD program account; and
WHEREAS, HOME funding will be available in the 2020 City Budget 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 approval of the Annual Action Plan Substantial Amendment (2020-#2) including the allocation of prior year Community Development Block Grant (CDBG) program funding, 2020 program funding, 2020-2024 Consolidated Plan priority needs, goals, objectives, and expected funding, and 2020 CDBG COVID-19 program funding; 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.