TO: Mayor Richard C. Irvin
FROM: Chris Ragona, Community Development Manager, Community Development Division
DATE: November 2, 2021
SUBJECT:
A Resolution authorizing Annual Action Plan Substantial Amendment 2021-#3 to modify Project CDBG-2018-02 - Mutual Ground Shelter Exterior Rehabilitation Project and to allocate HOME Investment Partnerships - American Rescue Plan (HOME-ARP) Administration and Planning Funding.
PURPOSE:
Staff requests authorization of Annual Action Plan Substantial Amendment 2021-#3 to modify Project CDBG-2018-02 - Mutual Ground Shelter Exterior Rehabilitation Project to increase funding by $112,000 for the purpose of restoring the historic portico located at 418 Oak Ave., Aurora, Illinois 60506.
Additionally, the City received $2,726,703 in HOME-ARP funds approved by Congress on 3/11/2021 as part of the American Rescue Plan. The purpose of allocating HOME-ARP funds is to access administration and planning funds to complete a required needs assessment before actual activities can be recommended for approval. A summary of the proposed recommendations can be found below.
BACKGROUND:
The 2020-2024 Consolidated Plan and 2021 Annual Action Plan were approved by City Council on 2/9/2021, R21-022. Two Substantial Amendments to the City’s 2021 Annual Action Plan were approved by City Council on 8/10/2021, R21-216 and on 8/24/2021, R21-229. This Substantial Amendment-#3 was required by the Department of Housing and Urban Development (HUD) due to a change in the use of federal funds from one eligible activity to another in excess of 25% of a single activity budget and the creation of a new activity.
In order to comply with HUD requirements, a public comment period was scheduled for 10/20/2021 to 11/19/2021 and a public hearing is scheduled for 11/3/2021. (Please see public notice, Attachment #1.) The proposed Substantial Amendment 2021-3 (Attachment #2) which amends the City of Aurora’s 2018, 2020, and 2021 Annual Action Plans), public hearing minutes (Attachment #4), and draft Block Grant Working Committee minutes (Attachment #5) are attached. To date, the City has not received any public comments; however, a summary of any received public comments will be included in the City Council agenda packet.
DISCUSSION:
Staff requests authorization of Annual Action Plan Substantial Amendment 2021-#3 to modify Project CDBG-2018-02 - Mutual Ground Shelter Exterior Rehabilitation Project and to allocate HOME Investment Partnerships - American Rescue Plan (HOME-ARP) Funding. A summary of the proposed activity has been outlined below:
CDBG-2018-02 - Mutual Ground Capital Improvement Project -
City Council previously approved $245,000 in CDBG funding for this project on 2/9/2021, R21-022. Due to a delay in receipt in HUD funding, bidding could not take place until 9/8/2021. During this time, the market conditions including the cost of labor and construction materials increased significantly. Sealed bids were opened on 9/23/2021, with the lowest most responsible bidder submitting a bid of $379,500. When factoring in the estimated costs for architectural services, the total cost of the project now stands at $407,000. Due to the increase in costs, Mutual Ground has pledged $50,000 in reserve funds along with their request to the city for $112,000 in CDBG funds to complete this project.
Home Investment Partnerships Program - American Rescue Plan (HOME-ARP)
The American Rescue Plan Act of 2021 appropriated $5 billion to provide housing, services, and shelter to individuals experiencing homeless and other vulnerable populations, to be allocated by formula to jurisdictions that qualified for HOME Investment Partnerships Program allocations in Fiscal Year 2021. As a Participating Jurisdiction, the City of Aurora received $2,726,723 in HOME-ARP funds. As a first step to access this funding, the City can access up to 5% ($136,336) of the total award for administration and planning costs. To access the remaining HOME-ARP funds, HUD requires the City to consult with agencies and service providers whose clientele include the HOME-ARP qualifying populations to identify unmet needs and gaps in the City’s housing and/or service delivery systems. Following the close of the City’s consultation and public participation process, a funding allocation plan based upon the HOME-ARP priority needs via a Substantial Amendment will be submitted for City Council review and approval. Once the HOME-ARP Allocation Plan is approved by City Council and HUD, the remaining award will be made available and any future projects will be presented to City Council for approval. All funds must be expended by September 30, 2030 (Transmittal letter Attachment #3).
A full breakdown of funding for the above referenced CDBG and HOME-ARP activities can be found below:
|
Proposed Amended CDBG-CV Activity |
Original/Amended Funding Allocation |
Substantial Amendment #2021-3 Recommended Re/Allocation Amount |
HUD Program Year Funding Source |
Project Reallocation Comments (all CDBG/CV funds to be used for services to Aurora residents) |
|
CDBG-2020-CV-03: Emergency Shelter and Subsistence Program |
$194,101 (CV); $300,000.00 (CDBG) |
$112,000 (CDBG) |
2020 CDBG-CV and prior year CDBG funds |
Unexpended funds |
|
Deobligated Funding Total (Amount available to reallocate) |
$112,000 (CDBG) |
|
Proposed New/Amended CDBG/CV Activity |
Original/Amended Funding Allocation |
Substantial Amendment #2021-3 Recommended Re/Allocation Amount |
HUD Program Year Funding Source |
Project Reallocation Comments (all CDBG/CV funds to be used for services to Aurora residents) |
|
CDBG- 2018-02: Mutual Ground Exterior Renovation |
$245,000 |
$112,000 |
2020 CDBG |
Funds to be used for portico renovation costs; amended project CDBG total of $357,000 |
|
HOME-ARP Program Administration |
N/A |
$226,703 |
2021 HOME-ARP |
Funds to be used for program staff salaries ($136,336 initially) |
|
HOME-ARP Homelessness and Supportive Service Assistance |
N/A |
$2,500,000 |
2021 HOME-ARP |
Funds to be used for homelessness and supportive assistance activities TBD |
|
(Re)Allocation / Total |
$112,000 (CDBG) $2,726,703 (HOME-ARP) |
IMPACT STATEMENT:
This action will have a positive impact on the City's community development efforts.
RECOMMENDATIONS:
Staff recommends approval of the proposed Resolution authorizing Annual Action Plan Substantial Amendment 2021-#3 to reflect a change in use for CDBG-2018-02 - Mutual Ground Capital Improvement Project and to allocate HOME Investment Partnerships - American Rescue Plan (HOME-ARP) Funding. 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 2021-#3 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 Shweta Baid
Alderman Ron Woerman
Alderman Sherman L. Jenkins
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
A Resolution authorizing Annual Action Plan Substantial Amendment 2021-#3 to modify Project CDBG-2018-02 - Mutual Ground Shelter Exterior Rehabilitation Project and to allocate HOME Investment Partnerships - American Rescue Plan (HOME-ARP) Administration and Planning Funding.
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 participation in the U. S. Department of Housing and Urban Development's Community Development Block Grant, HOME Investment Partnership Act Grant, and Emergency Solutions Grant Programs; and
WHEREAS, the City of Aurora has a Consolidated Plan and Annual Action Plan which have been adopted by the City Council and which have defined priorities for CDBG, HOME, and ESG funding; and
WHEREAS, Substantial Amendment 2021-#3 will define priorities for community development funding and define obligations to inform the public on the proposed changes; and
WHEREAS, the City of Aurora’s Block Grant Working Committee recommended
adoption of Annual Action Plan Substantial Amendment 2021-#3 to reflect CDBG funding reallocations and to allocate HOME-ARP funding at its November 3, 2021 meeting; and
WHEREAS, CDBG funding will be available in the 2021 City Budget CDBG program account (221-1330-801-43-01); and
WHEREAS, HOME-ARP funding will be available in the 2021 City Budget under a new HUD program account
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 Annual Action Plan Substantial Amendment (2021-#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