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HOLD a public hearing and consider an ordinance authorizing the 2024-2025 Annual Action Plan describing use of funds and authorizing application for and allocation of Community Development Block Grant (CDBG) and Home Investment Partnerships (HOME) program funds. (2nd of 2 Public Hearings)
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DATE: June 18, 2024
TO: Kent Cagle, City Manager
FROM: Tiffanie McNair, Executive Director Community Development
SUBJECT: PY 2024-25/Fiscal Year 2025 Community Development Block Grant (CDBG) and Home Investments Partnerships (HOME) Program Annual Action Plan
BACKGROUND AND FINDINGS:
As an entitlement community the City of Killeen will receive funds from the U.S. Department of Housing and Urban Development (HUD) for PY 2024-2025 in the following amounts: $1,326,229.00 for Community Development Block Grant (CDBG) activities, and $533,770.00 for Home Investment Partnerships (HOME) activities. Additionally, the city has re-programmable CDBG program funds in the amount of $20,121.73. HOME funds available to reprogram include $95,710.58 from COVID-19 TBRA activities, $2,147.38 from prior year Home entitlement and $.98 from an Affordable Housing activity for a total of $97,858.94.
The grant cycle began on January 18th and concluded with the application for funding submissions by April 8th. The process included one-on-one and project feasibility/eligibility meetings and, pre-applications access and review. Attendance was required at Pre-Application workshops for first time applicants via Zoom or in-person. Upon pre-application approval, eligible entities received the full application for funding for both the CDBG and HOME programs. Thirteen (13) Annual Funding Applications were submitted.
Projects undertaken with CDBG, and HOME Program funds must address goals and objectives established in the 5-year Consolidated Strategic Plan (PY 2020-2024) and Annual Action Plan (PY 2024-2025) to meet affordable housing and community development needs. Applications considered and recommended for funding are to align with identified priority community needs, affordable housing needs, goals, and objectives for specific priority categories and, as applicable, be amended to meet changing community development and housing needs. To ensure priority community development and affordable housing needs are addressed, the CDAC used scoring criteria developed from the CDBG & HOME Grant Programs Governance & Allocation Policy which places major emphasis on project significance, project feasibility, ability to comply with applicable HUD requirements (statutory and regulatory) and, in light of the limited amount of CDBG and HOME funds available to the City of Killeen, leveraging of funds from other federal, state, and private resources to be directed to the most pressing community development and affordable housing needs.
The CDAC met on May 15 and 16, 2024, to review and make recommendations for proposed use of PY2024-25/FY2025 CDBG and HOME Program funds. Results are detailed in the attached Community Development Advisory Committee (CDAC) meeting minutes of May 15-16, 2024.
With a FY 2025 provision of general funding proposed for the Elderly Transportation Program, staff recommendations were presented to CDAC for their consideration. CDAC attempted to meet on June 6 and June 11, 2024, but was unable to produce a quorum to consider a vote on the staff recommendation.
For the program year 2024-2025 / Fiscal Year 2025 HUD regulation allows for 20% of CDBG and 10% of HOME funds to be expended on administration/planning of CDBG and HOME activities. All project costs under the CDBG and HOME Program will be reimbursed to the City by the U.S. Department of Housing and Urban Development.
THE ALTERNATIVES CONSIDERED:
1. Accept the CDAC recommendations as originally adopted by CDAC until such time the 30-day comment period is complete, addressing public comments received, then hold the final public hearing on July 23, 2024, and adopt the PY 24-25 Annual Action Plan.
2. Accept the CDAC recommendations to include staff recommendations for the Killeen Reunification Program and the Elderly Transportation Program.
3. Do not accept the CDBG & HOME grant funds and return funding to HUD.
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Which alternative is recommended? Why?
Following the first public hearing on June 25, 2024, allowing the 30-day comment period and approval of the allocation of funds under the proposed 2024-2025 Annual Action Plan and solicit citizen participation and comments on the one-year Plan. Recommend approval of the final Plan, with revisions as appropriate based on citizen comments received during the previously held 30-day comment period, and during the second public hearing on July 23, 2024.
CONFORMITY TO CITY POLICY:
Yes, as described in the Citizen Participation Plan, approved by city council.
FINANCIAL IMPACT:
What is the amount of the revenue/expenditure in the current fiscal year? For future years?
0 in current year and $1,346,350.73 in CDBG funds and $631,628.94 in HOME funds for FY 2025 activities.
Is this a one-time or recurring revenue/expenditure?
This is a one-time expenditure.
Is this revenue/expenditure budgeted?
Yes
If not, where will the money come from?
N/A
Is there a sufficient amount in the budgeted line-item for this revenue/expenditure?
Yes
RECOMMENDATION:
Following the final public hearing on July 23, 2024, recommend approval of allocation of funds under the proposed 2024-2025 Annual Action Plan and solicit citizen participation and comments on the one-year Plan. Recommend approval of the final Plan with revisions as appropriate based on citizen comments received during the 30-day comment period and during the second public hearing
DEPARTMENTAL CLEARANCES:
Finance
Legal
ATTACHED SUPPORTING DOCUMENTS:
FY24 HUD Allocation Letter
Funding Tables 2024
CDAC Minutes
Ordinance
Presentation