REPORT TO THE CITY COUNCIL
FROM: JENNIFER CLARK, Director
Planning and Development Department
BY: BRANDON SISK, Senior Management Analyst
Housing and Community Development Division
SUBJECT
Title
***RESOLUTION - Adopting submission of Substantial Amendment 2020-03 to the Fiscal Year (FY) 2020-2021 Annual Action Plan and authorizing submission to the U.S. Department of Housing and Urban Development (HUD) to reprogram $4,181,189.24 in Community Development Block Grant (CDBG) funds from prior year CDBG project savings and repayments (Subject to Mayor's Veto).
Body
RECOMMENDATION
Staff recommends the City Council adopt Substantial Amendment 2020-03 to the 2020-2021 Annual Action Plan and authorize submission of Substantial Amendment 2020-03 to HUD.
EXECUTIVE SUMMARY
Staff has identified $4,181,189.24 in CDBG fund project savings and cancelled projects which may be reprogrammed for eligible activities. In order to reprogram CDBG funds, HUD requires a Substantial Amendment to the 2020-2021 Annual Action Plan (Substantial Amendment 2020-03). Reprogramming these funds will allow the City to utilize the funds to support the development of a senior center and public infrastructure.
BACKGROUND
In accordance with CDBG regulations, the City must have a balance no greater than one and one-half (1.5) times its annual grant remaining in the Line of Credit, 60 days prior to the end of the program year. Staff assessed the projected expenditures of all open CDBG projects to determine if it would be able to meet the May 2, 2022, timeliness test. In doing so, staff identified $4,181,189.24 in project savings and project balances needing to be reprogrammed in order for the City to ensure timely performance. The City proposes to use the $4.1 million to:
* Increase the CDBG funds available for the acquisition of property for a Senior Center;
* Increase the CDBG funds available for the Burroughs Elementary Neighborhood Street Reconstruction Project;
* Fund the Olive-...
Click here for full text