cover
TO: Mayor Richard C. Irvin
FROM: Chris Ragona, Director of Community Services, Community Services Department
DATE: January 23, 2025
SUBJECT:
A Resolution Authorizing Approval of the 2025-2029 Consolidated Plan, Neighborhood Revitalization Strategy Area Amendment, 2025 Annual Action Plan, and Substantial Amendment 2025-#1
PURPOSE:
On behalf of the Block Grant Working Committee (BGWC), Staff requests approval of its 2025-2029 Consolidated Plan and proposed funding recommendations for federal funding for Community Development Block Grant (CDBG), Home Investment Partnership Program (HOME), and HOME Investment Partnerships Program - American Rescue Plan (HOME-ARP) to the U.S. Department of Housing and Urban Development (HUD). The Consolidated Plan is designed to help states and local jurisdictions to assess their affordable housing and community development needs and market conditions, and to make data-driven, place-based investment decisions. Staff also requests approval for the 5 -year renewal/update of the City’s Neighborhood Revitalization Strategy Area, and Substantial Amendment 2025-#1.
Planning for the 2025-2029 Consolidated Plan during summer 2024 with the selection of TDA Consulting, Inc. to assist in the development of the plan. TDA is a current consultant for the Department of Housing and Urban Development and has completed numerous Consolidated Plans for communities across the country.
City staff conducted comprehensive stakeholder engagement activities to inform the goals and objectives of the 2025-2029 Consolidated Plan. These activities included five individual stakeholder interviews and six focus groups, with representation from at least one of 65 organizations, covering topics such as housing affordability, homelessness, disabilities, seniors, youth, education, community improvements, and economic development. The lack of affordable housing emerged as the primary concern across all meetings.
Additionally, three open house meetings were held, featuring priority ranking activities on various topics. Homelessness prevention, services for individuals with mental disabilities, and community centers were identified as top priorities. The engagement process also highlighted needs for transportation improvements, affordable childcare, infrastructure repairs, digital literacy programs, shelters, transitional housing, and expanded language services to assist Limited English (LEP) residents with navigation and connecting to resources.
|
Stakeholder Engagement Opportunity |
Date |
|
Five (5) Targeted One-on-One Stakeholder Interviews (to address Continuum of Care, Hazard Mitigation, Economic Development, Emergency Shelter -Domestic Violence, Aurora Housing Authority) |
November 7, 2024 through November 8, 2024 |
|
Six (6) Focus Groups (to address Community Needs, Economic Development, Community Improvements, Youth and Education, Disabilities and Seniors, and Housing Affordability and Homelessness) |
November 19, 2024 through December 6, 2024 |
|
Community Resource Team Open House Email Invitation |
December 12, 2024 |
|
Three Open Houses (2 in person, 1 virtual) |
December 19, 2024 |
|
Public Hearing |
January 24, 2025 |
The 2025-2029 Consolidated Plan stresses the following objectives:
1. Expand and Maintain the Affordable Housing Stock.
2. Ensure the Housing Stock is Safe, Healthy, and Accessible for all Residents.
3. Public Service Assistance.
4. Enhance and Improve Access to Amenities
5. Program Administration (CDBG and HOME)
In addition to the above goals and objectives, staff seeks approval for an update to the City's Neighborhood Revitalization Strategy Area (NRSA), a special provision under the Community Development Block Grant Program aimed at revitalizing distressed community areas. Originally approved in 1999 and amended in 2011 and 2020, the NRSA selection process is based on a comprehensive assessment of economic conditions, development opportunities, and potential challenges. The proposed update includes a minor boundary adjustment, determined through analysis of HUD income data and recent affordable housing strategy. While largely consistent with prior boundaries, slight modifications reflect changes in census block group outlines and shifts in low- to moderate-income populations, with the NRSA continuing to focus on the Fox River, downtown Aurora, and adjacent neighborhoods.
Per HUD requirements, an NRSA must be primarily residential and contain a percentage of low- and moderate-income residents that is either 70% or equal to the community's "upper quartile percentage". The proposed NRSA amendment (Exhibit H) meets and exceeds these criteria, with approximately 74.2% of the population earning less than 80% of the area median income-surpassing both Aurora's upper quartile percentage (73.8%) and HUD's baseline of 70%.
Lastly, in addition to the 2025-2029 Consolidated Plan, the City also completed or is the process of finalizing multiple planning documents to supplement the Consolidated Plan. These include:
|
Plan |
Date Completed |
|
HOME-ARP Needs Assessment |
2023 |
|
O.N.E. Aurora 2025-2030 Affordable Housing Plan |
2024 |
|
O.N.E Aurora Homelessness Strategy |
Pending completion - 1st Quarter 2025 |
In each of these planning documents, research, analysis, and best practice reviews from across the country were incorporated into the planning with significant opportunities for stakeholder engagement to assist in drafting these planning documents.
Annually, the City of Aurora (“City”) receives approximately $1.2 million dollars in CDBG and $522,000 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 $89,700 for a family of four in 2024). Residents that meet HUD’s definition of extremely low-income (defined as earning at or below 30% of the Area Median Income, or approximately $33,650 for a family of four in 2024) will also primarily benefit from the findings of the 2025-2029 Consolidated Plan.
Under Substantial Amendment 2025-#1 (Exhibit I), Staff also requests approval of the BGWC’s proposed funding recommendations utilizing prior year CDBG funds as well as the City’s HOME American Rescue Plan (HOME-ARP) funding. As a one-time supplemental grant received through the American Rescue Plan, the City received $2,726,703 million dollars in HOME-ARP funds to be utilized to create affordable housing and provide supportive services for those who are experiencing homelessness, at risk of homelessness, survivors of gender-based and sexual-based crimes, and families requiring services and/or housing assistance to prevent homelessness or families that are experiencing a high level of housing insecurity.
Additionally, the City must also modify its 2020, 2021, 2022, 2023, and 2024 Annual Action Plans identified as Substantial Amendment 2025-#1 to reallocate CDBG and HOME-ARP funding to new and/or existing projects.
BACKGROUND:
During 2024, the City released multiple calls to solicit applications for 2025 CDBG, HOME, and HOME-ARP proposals with applications opening up on August 29, 2024 and ultimately closing on October 4, 2024. City staff outreach efforts included notifications to prior and current recipients of funding and prospective first-time applicants. The following table outlines the City’s outreach efforts:
|
Outreach Opportunity |
Date |
|
Pre-Application Announcement Email - Notice #1 |
8-15-2024 |
|
Beacon Newspaper Advertisement |
8-18-2024 |
|
Community Resource Team Email Release |
8-20-2024 |
|
Community Resource Team Social Media Post |
8-20-2024 |
|
Pre-Application Announcement Email - Notice #2 |
8-21-2024 |
|
Beacon Newspaper Advertisement |
8-18-2024 |
|
Pre-Application Announcement Email - Notice #3 |
8-28-2024 |
|
Pre-Application Virtual Workshop |
8-29-2024 |
|
Final Reminder Regarding Application Due Date |
10-01-2024 |
|
Application Due Date |
10-04-2024 |
Under each email notification, an estimated 535 representatives from non-profit agencies, elected officials, advisory boards, interested businesses, and residents of the City were provided with information regarding the City’s grant opportunities. The City also contacted other area grant providers via email to share the City’s grant opportunities and published an advertisement and press release in The Beacon News. The non-mandatory pre-application virtual workshop was attended by an estimated 109 representatives. The workshop was recorded and posted on the City’s website together with the workshop’s presentation slides.
The 2025 CDBG, HOME, and HOME-ARP rounds closed on October 4, 2024 with nineteen (19) applications requesting $8,946,994 million dollars.
Community Services Department staff reviewed and scored each application to focus on the following criteria:
-Completeness and quality of the application
-Budget including sources and uses
-Grant management experience
-Past performance
-Ability to operate or carry on project with a reduced amount of funds
-Performance metrics
-Duplication of services
-Ability to serve Aurora residents
City staff also completed good standing checks with the City’s Division of Revenue and Collections, State of Illinois, Internal Revenue Service, and federal debarment registry to confirm each applicant’s funding eligibility. Numerous site visits and pre-application meetings were completed and additional research was conducted to confirm the accuracy of the applicants’ described service areas and outcomes.
DISCUSSION:
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 (which incorporates the City’s HOME-ARP Needs Assessment) and proposed 2025-2029 Consolidated Plan formed the recommendations for the City’s 2025 Annual Action Plan and Substantial Amendment 2025-#1. City staff also considered alternative funding such as the City’s 2025 Quality of Life (QOL) and Home Investment Partnerships Program funding if the applicant applied for CDBG and/or QOL opportunities or if a proposed activity was a better fit for one of the other funding programs. The 2025 CDBG funding recommendations can be found in Exhibit A and 2025 HOME-ARP recommendations can be found in Exhibit C, and lastly for reference, 2025 Quality of Life recommendations can be found in Exhibit E.
2025 Funding Recommendations
CDBG:
CDBG recommendations (Exhibit A) reflect an estimate of funding levels for CDBG and HOME based on prior year allocations ($1,196,194.00 and $522,114.95) and anticipated prior year resources from program income as well as projects that came in under budget or were cancelled. Future Congressional action could result in changes to our anticipated funding levels. Any additional CDBG funding received through program income, an increase in the City’s funding, or completed 2024 and prior year projects that end up under budget will be placed in the Community Amenities’ Activity. HOME-ARP recommendations (Exhibit C) reflect a special one-time allocation in the amount of $2,726,703.
Of note, funds are programmed as “administration” as well as “public service” activities are based upon HUD’s regulatory caps. The CDBG cap is 20%, HOME cap is 10%, and HOME-ARP cap is 15%. Administration funds are used for staff salaries, overhead, training opportunities, planning, and fair housing activities. Administration funds that are not used can be reprogrammed for additional eligible activities by future amendments.
The City received a total of fourteen (14) applications for CDBG funding, with ten (10) projects recommended for CDBG funding and one (1) project recommended for 2025 Quality of Life funding. Three (3) projects were not recommended for CDBG or QoL funding. A summary of the CDBG applicants is attached as Exhibit B.
CDBG Public Facilities and Infrastructure Improvements:
Four (4) applications were recommended for CDBG funding in the total amount of $482,633. Funding will assist the City’s Engineering Department in the amount of $250,000 as part of the annual scattered site street resurfacing program in CDBG eligible areas (via Substantial Amendment 2025-#1). Funding will not replace, but instead, will increase the budget for street resurfacing in low and moderate income areas. $70,000 will be allocated to The Neighbor Project for accessibility improvements, $60,800 to Sunnymere for masonry rehabilitation, and $101,833 to Hesed House for parking lot replacement.
CDBG Public Services:
The CDBG public services cap is 15% and cannot exceed $179,249. Public service funds are used to support an agency’s direct service delivery costs (staff time, materials, etc.) specific to a particular CDBG program. In general, CDBG public service activity funds must be expended during the City’s program year and cannot be carried over into another year.
CDBG funding awards in the amount of $179,249 have been recommended for the following four (4) agencies: CASA Kane County ($34,249), Hesed House ($50,000), Mutual Ground ($50,000), Senior Services Associates ($45,000). Services include activities related to child advocacy case management, homelessness prevention, domestic violence prevention, and senior services. Should actual funding be less than anticipated, these projects would take an across the board percentage reduction based on the amount of public service funds actually available.
CDBG Housing:
Two (2) housing activities have been recommended for CDBG funding in the amount of $345,000. The Neighbor Project and Rebuilding Together Aurora provide assistance to income-eligible homeowners for emergency repairs and upgrades to provide ADA improvements such as ramps and accessible bathrooms.
HOME Funds and Establishment of Aurora O.N.E Affordable Housing Fund:
As has been past practice by the City, CDD staff recommends that the City’s 2025 HOME funds be allocated as per HUD’s regulatory caps as follows: program administration is 10% ($52,211), direct project activities is 75% ($522,115) and 15% allocated to agencies that qualify as Community Housing Development Organizations ($78,317). Once the CDD receives direct project 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.
In 2025, as part of the O.N.E. Aurora 2025-2030 Affordable Housing Plan (Exhibit G), one of the recommendations outlined in the plan is to establish a dedicated city fund to expand and preserve affordable housing. As part of this fund, in 2025, $500,000 has been allocated to the fund. City staff is in the process of drafting an allocation plan which will include policies, procedures, and eligibility criteria which will be presented to the Block Grant Working Committee and City Council in Spring 2025.
HOME-ARP Funding:
The City received a total of three (3) applications for HOME-ARP funding, with two (2) projects recommended for a combined total of $150,00 in HOME-ARP funding to the following agencies: Hope Fair Housing ($50,000) and Loaves and Fishes ($100,000). One (1) project was not recommended for funding.
A summary of each application is included as Exhibit C. Projects include fair housing services and emergency rental assistance. If approved, a reserve balance in the amount of $970,000 remains and all funding must be expended by September 30, 2030.
2025 Annual Action Plan and Substantial Amendment 2025-#1 Schedule:
Staff is preparing the 2025 Action Plan and Substantial Amendment 2025-#1 to its 2020, 2021, 2022, 2023, and 2024 Action Plans for submittal to the U.S. Department of Housing and Urban Development. HUD has advised that the City should not submit its 2025-2029 Consolidated Plan until actual amounts are formally announced by HUD. Currently a continuing resolution has been passed by Congress and more details on 2025 funding should be outlined by the end of February 2025. The City will finalize its 2025-2029 Consolidated Plan and move forward with the City’s funding recommendations once the City is notified by HUD as to its actual allocations. Unlike the 2025-2029 Consolidated Plan, the City may move forward in committing its 2025-#1Substantial Amendment funds following City Council approval.
For reference, the following documents are attached:
Exhibit A - CDBG Recommendation Project List;
Exhibit B - 2025 CDBG Applicant Summary;
Exhibit C - HOME-ARP Funding Recommendations
Exhibit D - 2025 Quality of Life Recommendations
Exhibit E- HOME-ARP Applicant Summary
Exhibit F - Draft City of Aurora 2025-2029 Consolidated Plan
Exhibit G - City of Aurora 2025-2030 Aurora Affordable Housing Plan
Exhibit H - NRSA Amendment
Exhibit I - Substantial Amendment 2025-#1
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 2025-2029 Consolidated Plan and Substantial Amendment (2025-#1) were posted in the Beacon News on January 13, 2025. Each document was also made available on the City's website and at the City’s three library branches. A public hearing will be conducted on January 24, 2025 at 1:00 p.m. to provide the public with an opportunity to comment on the 2025-2029 Consolidated Plan, Neighborhood Revitalization Strategy Area Amendment, 2025 Annual Action Plan, and Substantial Amendment 2025-#1.
IMPACT STATEMENT:
Since its inception in 1974, the CDBG program has invested over $55 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 14 years ago, the City has allocated approximately $8 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. HOME-ARP funds in the amount of $2,726,703 will support investments in providing affordable housing opportunities and supportive service activities for residents who are homeless or at risk of homelessness.
RECOMMENDATIONS:
Staff recommends approval of the request authorizing approval of the 2025-2029 Consolidated Plan and Substantial Amendment (2025-#1). Staff also requests authorization for the City's Mayor, Chief Community Services Officer, Director of Community Services, Community Development Manager, or their designees to execute any contracts as well as any other documents associated with the 2025-2029 Consolidated Plan, NRSA Amendment, and Substantial Amendment (2025-#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 ________________
title
A Resolution Authorizing Approval of the 2025-2029 Consolidated Plan, Neighborhood Revitalization Strategy Area Amendment, 2025 Annual Action Plan, and Substantial Amendment 2025-#1
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, the City of Aurora's Block Grant Working Committee recommended adoption of the 2025-2029 Consolidated Plan, 2025 Annual Action Plan, Neighborhood Revitalization Strategy Area Amendment, and Substantial Amendment 2025-#1 at its January 22, 2025 meeting; and
WHEREAS, the 2025-2029 Consolidated Plan, 2025 Annual Action Plan, Neighborhood Revitalization Strategy Area Amendment, and Substantial Amendment 2025-#1 will define priorities for community development funding; and
WHEREAS, funding will be available in the 2025 City Budget CDBG program account (221-1330-801-43-series), HOME program account (213-1330-801-43-series); HOME-ARP program account (213-1330-331.11-19-series), HOME-ARP program account (213-1330-801.44-60 series), and HOME-ARP program account (213-1330-801.44-61 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 2025-2029 Consolidated Plan, 2025 Annual Action Plan, Neighborhood Revitalization Strategy Area Amendment, and Substantial Amendment 2025-#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