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TO: Mayor Richard C. Irvin
FROM: Rick Guzman, Manager, Neighborhood Redevelopment Division
DATE: December 8, 2017
SUBJECT:
Resolution Authorizing Approval of the City of Aurora 2018 Annual Action Plan for Federal Community Development Block Grant and HOME Investment Partnership Act Funding.
PURPOSE:
Staff requests the adoption of the City of Aurora 2018 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) and HOME Investment Partnership (HOME) funds.
BACKGROUND:
The City of Aurora receives annual CDBG and HOME program entitlement allocations to support housing and community development efforts that benefit low and moderate income residents of Aurora. The funding amounts contained in the attached 2018 funding recommendation summary ("Exhibit A") and draft 2018 Annual Action Plan ("Exhibit B") for each grant source are estimates only and are based upon 90% of the prior year's funding levels. For this year, the estimated 2018 allocation for CDBG and HOME funds, respectively, is $1,362,527 and $467,620. (The City's 2017 CDBG allocation was $1,513,919 and HOME allocation was $519,578.) At such time as HUD announces the City’s actual 2018 award amounts (anticipated in spring/summer 2018), NRD staff will present any necessary plan and funding modifications for City Council approval through the City's CDBG citizen participation process. 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 2018 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 the following priorities:
1. Economic development and job training;
2. Youth services and youth violence prevention;
3. Funding assistance for Aurora's existing neighborhood planning processes;
4. Addressing housing and infrastructural issues in areas that have just become, or are in danger of becoming, low to moderate income in character; and
5. Redevelopment and/or creation of rental housing units; replacement units for
scattered site housing, elderly, special needs or homeless (HOME).
The City received twenty proposals, and the BGWC has recommended thirteen projects for funding. 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; and
5. Location within the NRSA (which results in a modest amount of bonus points).
Given that the allocation of CDBG funds is a competitive process, there were limitations on the amount of funding that could be awarded, and in some instances, projects were denied. Projects that were not selected for CDBG funds was the result of concerns related to issues such as project eligibility as well as HUD’s extensive recordkeeping and regulatory requirements, staff capacity in administering the CDBG program, unresolved program monitoring results, or time-sensitivities and eligibility for unexpended prior year's CDBG or HOME funds. In some instances, applicants applied for both CDBG and Quality of Life funds. With regard to these applicants, the BGWC's determination of CDBG denial was made upon learning that the applicants had been recommended for Quality of Life funds (pending City Council approval of the 2018 budget later this month).
The City of Aurora Block Grant Working Committee (BGWC) met on November 15, 2017 to finalize their CDBG funding recommendations. The 2018 AAP funding summary (Exhibit "A") which includes the HUD required funding contingency statement and pre-award costs public disclosure together with the draft 2018 AAP (Exhibit "B") are attached.
The BGWC's 2018 HOME funding recommendations have been proposed as per HUD's regulatory allocation requirements. Of note, HOME project applications are accepted by the City on an ongoing basis. Specific 2018 HOME projects will be presented at a later date to the City Council for review and approval as project proposals are received and recommended by the BGWC.
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 10, 2017 (Exhibit C"). The list of funding recommendations was also made available on December 10, 2017 for public review at all Aurora public library branches, the Neighborhood Redevelopment Division office, and the City's website. A public hearing will be held on December 18, 2017 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 $36 million in the City of Aurora. This investment has supported neighborhood revitalization, housing rehabilitation, housing development, job training, youth development, homeless services, historic preservation, and senior services.
Since becoming an entitlement community under the HOME program seven years ago, the City has committed close to $3 million in HOME funds to rehabilitate its aging housing stock and to support affordable housing projects such as scattered site rehabilitation of foreclosed homes and the conversion of the former St. Charles Hospital to mixed-income, affordable senior living.
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, Neighborhood Redevelopment Manager, or their designees be authorized to execute CDBG sub-recipient agreements and any other documents associated with the 2018 Annual Action Plan, including but not limited to HUD's CDBG and HOME 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 2018 Annual Action Plan Funding Recommendations - Community Development Block Grant (CDBG) and HOME Investment Partnership Act Programs (HOME).
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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 and HOME 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 2018 Annual Action Plan, including funding recommendations attached hereto as Exhibit "A" at its November 15, 2017 meeting; and
WHEREAS, said 2018 Annual Action Plan includes allocations for funding using an estimated entitlement amount of $1,362,527 in 2018 CDBG funds, and $467,620 in 2018 HOME funds; and
WHEREAS, the City's budget will make funds available in the 2018 City CDBG program account (221-1330-801-43-series) and HOME program account (213-1330-801-43-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 2018 CDBG and HOME program year, that authorization is given for submission of the 2018 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, Neighborhood Redevelopment Manager, or their designees be authorized to execute CDBG subrecipient agreements and any other documents associated with the 2018 Annual Action Plan, including but not limited to HUD's CDBG and HOME program administration requirements.