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TO: Mayor Richard C. Irvin
FROM: Chris Ragona, Community Development Manager, Community Development Division
DATE: January 17, 2023
SUBJECT:
A Resolution Authorizing Approval of the 2023 Annual Action Plan and Substantial Amendment 2023-#1 Funding Recommendations
PURPOSE:
Staff requests approval of its proposed funding recommendations for the City’s 2023 Annual Action Plan for Federal Funding for Community Development Block Grant (CDBG), Community Development Block Grant - Corona Virus (CDBG-CV), Home Investment Partnership Program (HOME) 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 $750,000 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 approximately $83,350 for a family of four in 2022). Staff also requests approval of its recommended Substantial Amendment 2023-#1 funding recommendations.
BACKGROUND:
The City of Aurora, as a direct recipient of CDBG and HOME funds, must plan for how these funds will benefit the Aurora community. Additionally, the City must also modify its 2016, 2018, 2019, 2020, 2021, and 2022 Annual Action Plans identified as Substantial Amendment 2023-#1 to reallocate CDBG and CDBG-CV funding to new and existing projects.
The City released an application round soliciting 2023 CDBG proposals on August 25, 2022 with a deadline of September 23, 2022. City staff prioritized outreach to prospective applicants in order to provide an opportunity to returning CDBG funding recipients and prospective applicants to apply for the first time. The following table outlines the outreach to attempts by the City:
|
Outreach Opportunity |
Date |
|
Pre-Application Announcement Email |
8-9-2022 |
|
Community Resource Team Email Release |
8-9-2022 |
|
Pre-Application Announcement Email |
8-16-2022 |
|
Beacon Newspaper Advertisement |
8-14-2022 |
|
City of Aurora Press Release |
8-23-2022 |
|
Pre-Application Announcement Email |
8-24-2022 |
|
Pre-Application Virtual Workshop |
8-25-2022 |
|
Final Reminder Regarding Application Due Date |
9-19-2022 |
|
Application Due Date |
9-23-2022 |
In each outreach attempt via email, an estimated 500 notices to representatives from non-profit agencies, elected officials, advisory boards, interested businesses, and residents of the City were provided with information regarding the City’s Community Development Block Grant and Quality of Life Grant opportunities. Additionally, City staff completed numerous follow- ups with agencies for emails that received bounce backs to ensure new contacts at agencies also received the information. The City also contacted other area grant providers to share the City’s grant opportunities. The City also used social media as well as the Beacon New to advertise the opportunity. The pre-application virtual worksheet was attended by 100 representatives which maximized the capability of the online workshop. A recording of the workshop was posted on the City’s website which included copies of the presentation slides for additional reference.
The results of staff analysis of the applications and their ability to meet the goals and objectives established by the City’s 2020-2024 Consolidated Plan formed the recommendations for the City’s 2023 Annual Action Plan and Substantial Amendment 2023-#1. City staff also considered alternative funding such as the City’s 2023 Quality of Life (QOL) funding if the applicant applied for CDBG and QOL opportunities or if a proposed activity was a better fit for either funding program. The 2023 CDBG funding recommendations can be found in Attachment A.
DISCUSSION:
The 2023 Annual Action Plan stresses the following 2020-2024 Consolidated Plan’s goals and objectives:
1. Expand and maintain the affordable housing stock (affordability for the purpose of providing decent housing).
2. Strengthen Homeownership among Low- and Moderate-Income Households (Affordability for the purpose of providing decent housing).
3. Public Service Assistance Including the Prevention and Reduction of Homelessness (Accessibility for the purpose of providing a suitable living environment).
4. Enhance and Improve Access to the Number of Community Amenities in Low- and Moderate Income Communities (Accessibility for the purpose of creating a suitable living environment).
All funding recommendations in the Annual Action Plans must correspond to an objective listed in the 2020-2024 Consolidated Plan.
2023 Funding Recommendations
The recommendations (Attachment A) reflect an estimate of funding levels for CDBG and HOME based on prior year allocations ($1,500,000 and $750,000) and anticipated prior year resources from program income as well as projects that came in under budget. 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 the City’s funding, or completed 2022 and prior year projects that end up under budget will be placed in the Neighborhood Revitalization/Community Amenities Activity. The Community Development Division (CDD) is also recommending a total of 5 activities to be placed in the City’s 2020 and 2022 Annual Action Plans (2 and 3 activities, respectively via Substantial Amendment 2023-#1) to assist in increasing our spending timeliness ratio and allow applicants to access funding more quickly. In addition to regular CDBG funds, Substantial Amendment 2023-#1 recommendations also reflect supplemental CDBG-CV funds in the amount of $100,000. All projects that utilize CDBG-CV funds need to prepare, prevent, and respond to the coronavirus and must also be placed in the 2020 Annual Action Plan.
Under Substantial Amendment 2023-#1, the Community Development Division (CDD) is also recommending the cancellation of 4 activities under the City’s 2016, 2018, 2019, 2020, and 2022 Annual Action Plans. The recaptured funds will be reallocated to new projects in order to assist in increasing the City’s spending timeliness ratio and allow applicants to access funding more quickly.
Of note, funds are programmed as “administration” as well as “public service” activities based upon HUD’s regulatory caps.
Administration:
The CDBG administration cap is 20% and the HOME administration cap is 10%. Administration funds are used for staff salaries, overhead, and training opportunities. Administration funds that are not used can then be reprogrammed for additional eligible activities by future amendments. The City received a total of twenty-one applications, with twelve projects recommended for CDBG/CDBGCV funding and three projects being recommended for 2023 Quality of Life funding. Five projects were not recommended for funding.
Public Facilities and Infrastructure Improvements:
Three applications were recommended for CDBG funding in the total amount of $763,750. Funding will assist the City’s Engineering Department in the amount of $500,000 as part of the annual scattered site street resurfacing program in CDBG eligible areas. Funding will not replace, but instead will increase the budget for street resurfacing in eligible areas. $100,000 will be allocated to Jennings Terrace to assist in the replacement of the parking lot which is not past its useful life. Lastly, $163,750 will be provided to Fox Valley Park District as part of improvements to Walters Park including the installation of a splash pad and additional park upgrades.
Public Services:
With the exception projects utilizing the City’s 2020 CDBG-CV funds to prepare for, prevent, and respond to the corona virus, the City’s annual CDBG public services cap is 15% and cannot exceed approximately $225,000. Public service funds are used to support an agency’s operations costs (staff time, materials, etc.) specific to a particular CDBG program. Please note that with the exception of CDBG-CV related projects, general CDBG public service activity funds must be expended during the City’s program year and cannot be carried over into another year.
CDD is recommending CDBG ($206,215) and CDBG-CV ($100,000) funding to 8 agencies in the amount of $306,215. Services include activities to assist senior services, homelessness assistance, domestic violence survivors, housing legal services, job training opportunities, and additional case management. Should actual CDBG funding be less than anticipated, these CDBG projects would take an across the board percentage reduction based on the amount of public service funds actually available. (The 2 proposed CDBG-CV funded projects would not be impacted, however.)
Housing:
Two housing activities have been recommended for CDBG funding in the amount of $335,000. The Neighbor Project and Rebuilding Together Aurora provide assistance to eligible homeowners for emergency repairs and upgrades to provide ADA improvements such as ramps and accessible bathrooms.
HOME Funds:
As has been past practice by the City, CDD staff recommends that the City’s 2023 HOME funds be allocated as per HUD’s regulatory caps as follows: program administration is 10% ($75,000), direct project activities is 75% ($562,500) and 15% allocated to agencies that qualify as Community Housing Development Organizations (“CHDO”; $112,500). Once the CDD receives direct and CHDO activity proposals, CDD staff will provide specific recommendations to the Block Grant Working Committee and then City Council at a later date. Projects will then move through the City’s Substantial Amendment process for HOME funding approval.
2023 Annual Action Plan Calendar
Staff is preparing the 2023 Action Plan and Substantial Amendment 2023-#1 to its 2016, 2018, 2019, 2020, 2021, and 2022 Action Plans for submittal to the U.S. Department of Housing and Urban Development. HUD has advised that the City should not submit its 2023 plan until actual amounts are announced. Currently, a continuing resolution has been passed by Congress and more details on 2023 funding should be outlined by the end of February 2023. The City will finalize its 2023 Annual Action Plan and be ready to move forward with the City’s funding recommendations once the HUD submittal deadline is known.
The attachments include the following documents:
A. CDBG Recommendation Project List;
B. Draft 2023 Action Plan;
C. Draft Substantial Amendment 2023-#1;
D. 2023 CDBG Applicant Summary;
E. Draft January 11, 2023 Block Grant Working Committee Minutes;
F. Draft January 27, 2023 Public Hearing Minutes.
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 2023 Annual Action Plan and Substantial Amendment 2023-#1 was posted in the Beacon News on January 13, 2023. Each document will also be made available on the City's website. A public hearing is scheduled to be held on January 27, 2023 at 1:00 p.m. to provide the public with an opportunity to comment on the 2023 Annual Action Plan and Substantial Amendment 2023- #1.
The City anticipates a surplus of approximately $500,000 in CDBG funds to be allocated later in 2023 with a focus on local neighborhood investment, housing, and meeting unmet goals of the 2020-2024 Consolidated Plan. Project recommendations will be presented to City Council for approval later in 2023.
IMPACT STATEMENT:
Since its inception in 1974, the CDBG program has invested over $53 million dollars 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 twelve years ago, the City has allocated approximately $6 million 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.
RECOMMENDATIONS:
Staff recommends approval of a Resolution Authorizing Approval of the 2023 Annual Action Plan and Substantial Amendment 2023-#1. 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 2023 Annual Action Plan and Substantial Amendment 2023-#1 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 ragonac@aurora.il.us.
cc: Public Health, Safety and Transportation Committee
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
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A Resolution Authorizing Approval of the 2023 Annual Action Plan and Annual Action Plan Substantial Amendment 2023-#1Funding Recommendations
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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 2023 Annual Action Plan and Annual Action Plan Substantial Amendment 2023-#1 will define priorities for community development funding; and
WHEREAS, funding will be available in the 2023 City Budget CDBG program account (221-1330-801-43-series), CDBG-CV program account (214-1330-801-46-series), and HOME program account (213-1330-801-43-series).;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: 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 the 2023 Annual Action Plan and Substantial Amendment 2023-#1, 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