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TO: Mayor Richard C. Irvin
FROM: Chris Ragona, Manager, Neighborhood Redevelopment Division
DATE: January 17, 2019
SUBJECT:
Resolution Authorizing Approval of the City of Aurora 2019 Annual Action Plan for Federal Community Development Block Grant, HOME Investment Partnership Act, and Emergency Solutions Grant Funding (Public Hearing).
PURPOSE:
Staff requests the adoption of the City of Aurora 2019 Annual Action Plan, which includes funding recommendations for the use of the U.S. Department of Housing and Urban Development Community Development Block Grant (CDBG), HOME Investment Partnership (HOME) funds, and Emergency Solutions Grant (ESG) funds. The City receives HUD's funds on an annual basis. The funds are used to provide services and projects for Aurora's low and moderate income residents (defined as earning at-or below- 80% of the Area Median Income, or $67,700 for a family of four in 2018).
BACKGROUND:
The City of Aurora receives annual CDBG, HOME, and ESG program entitlement allocations to support housing and community development efforts that benefit low and moderate income Aurora residents. The funding amounts contained in the attached 2019 funding recommendation summary ("Exhibit A") and draft 2019 Annual Action Plan ("Exhibit B") for each grant source are estimates only, based upon Staff's anticipation of level funding as per its 2018 allocations. For this year, the estimated 2019 allocations for CDBG, HOME, and ESG funds are $1,641,583, $750,553, and $136,287, respectively. At such time as HUD announces the City’s actual 2019 allocation amounts (anticipated in spring/summer 2019), NRD staff will present any necessary plan and funding modifications for City Council approval through the City's citizen participation process and City Council approval. Funding that is not expended during the grant period will be reallocated to other program(s) or project(s) in order to make use of the federal funding investment in the community.
DISCUSSION:
All 2019 Annual Action Plan (AAP) funding recommendations must qualify under HUD's eligible activity requirements and correspond to the goals and objectives established in the City's 2015-2019 Consolidated Plan which relate to housing, public services (for youth, senior citizens, disabled persons, unemployed persons, homeless persons), public facility improvements, economic development, and neighborhood revitalization.
With regard to CDBG, the City received seventeen proposals. Given that the allocation of CDBG funds is a competitive process, there were limitations on the amount of funding that could be awarded based upon regulatory thresholds, and in some instances, projects were denied. Projects that were not selected for CDBG funds were also the result of concerns related to issues such as project eligibility and/or an agency's staff capacity in administering the CDBG program (particularly with HUD’s extensive recordkeeping and regulatory compliance requirements). Other projects were also not selected for 2019 funds due to potential eligibility for the City's prior year CDBG funding sources and instead referred as substantial amendments to the City's 2018 Annual Action Plan. Approximately $304,000 has been identified as a 2019 Neighborhood Revitalization activity to be available for economic development, housing, and infrastructure needs for large scale projects identified in the next year. HUD funding may not be available until November 2019, so this will allow the City of Aurora time to identify new revitalization activities, particularly in eligible Opportunity Zones classified by the State of Illinois. The BGWC has recommended eleven projects for funding. In addition to meeting HUD's low and moderate income benefit requirement, the proposals were evaluated based upon the following criteria:
1. Ability to Address a City Objective;
2. Organizational capacity and experience;
3. Leveraged Resources;
4. Project Readiness;
5. Location within the NRSA.
The City of Aurora Block Grant Working Committee (BGWC) met on November 28, 2018 to finalize their CDBG funding recommendations. The BGWC's November 28, 2018 draft meeting minutes are attached ("Exhibit D"). The 2019 AAP funding summary (Exhibit "A") which includes the HUD required funding contingency statement and pre-award costs public disclosure together with the draft 2019 AAP (Exhibit "B") are attached.
The BGWC's 2019 HOME and ESG funding recommendations have been proposed as per HUD's regulatory allocation requirements. As has been past practice by the City, the BGWC has recommended that the City’s 2019 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%. Similarly, the City will follow the same process for its 2019 Emergency Solutions Grant (ESG) funds with 7.5% recommended for program administration and the remainder allocated to eligible ESG activities. As HOME and ESG project proposals are received, reviewed, and recommended by the BGWC, specific 2019 HOME and ESG projects will be presented at a later date to the City Council for review and approval.
In accordance with the City of Aurora’s Citizen Participation Plan and the requirements of the U.S. Department of Housing and Urban Development CDBG Program, a 30-day notice of the Annual Action Plan and Public Hearing was posted in the Beacon News on December 2, 2018 (Exhibit "C"). The list of funding recommendations was also made available on December 2, 2018 for public review at all Aurora public library branches, the Neighborhood Redevelopment Division office, and the City's website. A public hearing was held on December 17, 2018 at 5:00 p.m. to provide the public with an opportunity to comment.
IMPACT STATEMENT:
Since its inception in 1974, the CDBG program has invested over $37 million in the City of Aurora. This investment has supported neighborhood revitalization, housing rehabilitation, housing development, job training, youth development, homeless services, and senior services.
Since becoming an entitlement community under the HOME program eight years ago and the ESG program, one year ago, the City has committed over $3 million in HOME funds to rehabilitate its aging housing stock and to support affordable rental housing projects. Due to the City's first-time receipt of ESG funds, the City's ESG program is still under development. Although ESG funds have not been committed, the City's ESG funds will be allocated to homelessness prevention projects.
RECOMMENDATIONS:
Staff recommends approval of a Resolution Authorizing Approval of the City of Aurora 2018 Annual Action Plan for Federal Community Development Block Grant and HOME Investment Partnership Act Funding, and that the Mayor, Chief Community Services Officer, Community Development Manager or their designees be authorized to execute CDBG sub-recipient agreements and any other documents associated with the 2019 Annual Action Plan, including but not limited to HUD's CDBG, HOME, and ESG program administration requirements.
cc: Alderman Saville, Chairman
Alderman Jenkins
Alderman Franco
Alderman Donnell, Alternate
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
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A Resolution Approving the 2019 Annual Action Plan Funding Recommendations - Community Development Block Grant (CDBG), HOME Investment Partnership Act Programs (HOME), and Emergency Solutions Grant (ESG) (Public Hearing).
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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 made preservation of older neighborhoods, production of decent housing, and the support of human service programs, a priority;
WHEREAS, the City of Aurora has initiated numerous community development activities through participation in the U.S. Department of Housing and Urban Development's CDBG, HOME, and ESG programs, and an Annual Action Plan is required as a pre-requisite to any such funding; and
WHEREAS, the City of Aurora's Block Grant Working Committee recommended adoption of the 2019 Annual Action Plan, including funding recommendations attached hereto as Exhibit "A" at its November 28, 2018 meeting; and
WHEREAS, said 2019 Annual Action Plan includes allocations for funding using an estimated entitlement amount of $1,641,583 in CDBG funds, $750,553 in HOME funds, and $136,287 in ESG funds; and
WHEREAS, the City's budget will make funds available in the 2019 City CDBG program account (221-1330-801-43-series), HOME program account (213-1330-801-43-series), and ESG program account (214-1330-801-43-series); and
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 that the Block Grant Working Committee's funding allocations are hereby adopted for the 2019 CDBG, HOME, and ESG program year, that authorization is given for submission of the 2019 Annual Action Plan to the U.S. Department of Housing and Urban Development (HUD), that the Mayor is hereby authorized to execute any contracts or other overall program documents with HUD that authorizes the use of these federal funds, and that the Mayor, Chief Community Services Officer, Community Development Manager or their designees be authorized to execute CDBG sub-recipient agreements and any other documents associated with the 2019 Annual Action Plan, including but not limited to HUD's CDBG, HOME, and ESG program administration requirements.