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TO: Mayor Thomas J. Weisner
FROM: Jeff McLaughlin, Neighborhood Redevelopment Manager
DATE: August 15, 2014
SUBJECT:
Resolution Authorizing an Annual Action Plan Amendment (2014 - #4) to Reflect Funding Allocations for the Community Development Block Grant (CDBG) and Home Investment Partnership Act (HOME) Programs and a Subrecipient Agreement Amendment with Joseph Corporation changing how Contractors are paid under the Safety First Program
PURPOSE:
Staff requests authorization of an Annual Action Plan Amendment (2014 - #4) to provide CDBG and HOME funding allocations as detailed below. The City of Aurora's Block Grant Working Committee met on June 18th and approved CDBG allocations for Accion Chicago (small business support) and a HOME allocation for Joseph Corporation (housing programs public information support). On August 6th, the Block Grant Working Committee met and approved a supplemental allocation for Joseph Corporation to continue operations of the Safety First program through the end of the 2014 program year.
Separately, staff is seeking authorization for an Amendment for the 2014 CDBG Subrecipient Agreement with Joseph Corporation for the Safety First Program that enacts an administrative change by which contractors for the Program will first be paid by Joseph Corporation, who will then seek reimbursement from the city for eligible expenses. This reimbursement format is typical of CDBG subrecipients.
BACKGROUND:
The City of Aurora receives approximately $1.3 million in CDBG and $550,000 in HOME annually that is used in accordance with the City's planning and public participation documents to assist low to moderate income residents and to improve workforce housing opportunities. Some funding for the 2014 program year has not been allocated to eligible projects/developers, and as such the City is now allocating those funds through this process.
DISCUSSION:
The proposed funding allocations are as follows:
1. $25,000 in CDBG - The Joseph Corporation has indicated that it has expended its 2014 allocation under the Safety First program, which performs necessary home repairs for income eligible clients. This additional allocation will allow Safety First to continue through the end of PY 2014, although a small group of late year applicants may be wait-listed until early 2015. This additional funding will require an amendment to Joseph Corporation's 2014 CDBG Subrecipient Agreement for the Safety First program.
2. $10,000 in 2013 CDBG 20% Administration - The funds will support Accion Chicago, a noted micro-business lender to continue education events that benefit very small businesses in Aurora with an emphasis on Hispanic and Neighborhood Revitalization Strategy Area (NRSA) businesses. A successful event was held in November at Waubonsee Community College with over 30 small business owners in attendance, and another was held on September 3rd at the Two Brothers Roundhouse that had over 60 pre-registrants.
3. $5,000 in 2013 HOME 10% Administration - This funding will allow Joseph Corporation to provide the City public information support and host five events over 12 months to promote homebuyer education and the City's four down payment assistance programs. An example of these events was held for area Realtors on August 21, 2014 at the Joseph Corporation offices.
In addition to the above allocations, staff also seeks to amend Joseph Corporation's 2014 CDBG Subrecipient Agreement for the Safety First program to change the way subcontractors are paid. Joseph Corporation will now pay contractors directly and seek reimbursement from the City, which is the common practice across all CDBG subrecipients.
IMPACT STATEMENT:
Funding is available in the 2014 City budget through amendments to program accounts 221-1330-801-43-20, 221-1330-801-43-89, and 213-1330-801-43-89.
RECOMMENDATIONS:
Staff recommends approval of a Resolution Authorizing:
1. An Annual Action Plan Amendment (2014 - #4) to reflect funding allocations for the CDBG and HOME programs;
2. A change in how Joseph Corporation pays their subcontractors to now pay contractors directly and then seek reimbursement from the City.
cc: Alderman Saville, Chairman
Alderman Donnell
Alderman Irvin
Alderman Hart-Burns, Alternate
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
title
A Resolution Authorizing an Annual Action Plan Amendment (2014 - #4) to Reflect Funding Allocations for the Community Development Block Grant (CDBG) and Home Investment Partnership Act (HOME) Programs and a Subrecipient Agreement Amendment with Joseph Corporation changing how Contractors are paid under the Safety First Program.
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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 initiated numerous community development and housing activities through funding by the U.S. Department of Housing and Urban Development; and
WHEREAS, the City or Aurora has a Consolidated Plan and Annual Action Plan which have been adopted by the City Council and which define priorities for federal funding; and
WHEREAS, the City of Aurora's Block Grant Working Committee recommended adoption of the Annual Action Amendment to reflect additional funding allocations at its June 18, 2014 and August 5, 2014 meetings, and
WHEREAS, the City of Aurora and Joseph Corporation have agreed to implement a change to the 2014 CDBG Subrecipient Agreement for the Safety First program which will allow for Joseph Corporation to pay housing rehabilitation contractors first and then seek reimbursement from the City; 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 Annual Action Plan Amendment (2014 - #4) is authorized to provide additional funding under the CDBG and HOME programs and further that the 2014 CDBG Subrecipient Agreement for the Safety First program be amended to allow for Joseph Corporation to pay housing rehabilitation contractors first and then seek reimbursement from the City and that the City's Neighborhood Redevelopment Manager and City Clerk be authorized to execute any contracts or other documents pertaining to said approved amendments and funding recommendations consistent with the Annual Action Plan Amendment (2014 - #4) and all other provisions of the 2014 Action Plan remain in full force and effect.
PASSED AND APPROVED on ______________.
AYES ____ NAYS ____ NOT VOTING ____ ABSENT ____
____________________________ __________________________
Alderman Bohman, Ward 1 Alderman Garza, Ward 2
____________________________ __________________________
Alderman Mesiacos, Ward 3 Alderman Donnell, Ward 4
____________________________ __________________________
Alderman Peters, Ward 5 Alderman Saville, Ward 6
____________________________ __________________________
Alderman Hart-Burns, Ward 7 Alderman Mervine, Ward 8
____________________________ __________________________
Alderman Bugg, Ward 9 Alderman Johnson, Ward 10
____________________________ __________________________
Alderman Irvin, At Large Alderman O'Connor, At Large
ATTEST:
____________________________ __________________________
City Clerk Mayor
A. Subrecipient Agreement Amendment; B. Correspondence; C. Advertisement