Staff Report - 5/18/09 Meeting

MEMORANDUM

To:                   City Council

From:               David Deutsch, City Manager

Subject:            “Substantial Amendment” to CDBG Annual Action Plan

Date:                May 18, 2009

On May 6, 2009 the City received the following “Notice” from Ms. Frances Bush, Director, HUD District Office, Community Planning and Development Division:

CDBG Recovery Act (CDBG-R) Funding Notice Issued:  
The American Recovery and Reinvestment Act of 2009, Public Law 111-5, appropriated supplemental funding for the CDBG program.  On May 5, HUD issued a Notice describing the submission requirements, submission deadlines and implementation requirements for CDBG-R funding.  Grantees are to submit a substantial amendment to their FY2008 Action Plan, containing the required elements described in the Notice, by June 5 (for Entitlement grantees, Insular Areas and nonentitlement counties in Hawaii) or June 29 (for States only).  The Notice is available on HUD’s website at:  http://www.hud.gov/recovery/cdblock.cfm
Allocation amounts for grantees were previously posted on that website. 

On May 11, 2009 the City received a letter from the Secretary of the U.S. Department of Housing and Urban Development, Shaun Donovan, advising the City that its allocation under CDBG-R, and as provided through the American Recovery and Reinvestment Act (ARRA), is $44,372.00. The letter also states that: “To ensure transparency and accountability for Recovery Act investments, public reports will be disclosed through a central website, www.Recovery.gov, and through HUD’s recovery website, www.hud.gov/recovery.”
      
The requirements of this process include a public notice, public hearing, Council Resolution, and a revised Annual Action Plan showing the funds and its intended use. The City plans to use the CDBG-R funds for the Senior Citizen “Green” Housing Rehabilitation Program already approved by HUD in the current Annual Action Plan.

CONCLUSION: The use of the CDBG-R funds, as provided by HUD through ARRA, should be assigned to the City’s current CDBG program as approved by HUD. This program is the Senior Citizen “Green” Housing Rehabilitation Program.

RECOMMENDATIONS: Staff recommends that City Council authorizes the use of the CDBG-R funds provided by HUD through ARRA for the current Senior Citizen “Green” Housing Rehabilitation Program already approved by HUD, and approve Resolution R-31-09 directing staff to incorporate these funds into programs to accommodate the CDBG Entitlement funds the City receives from HUD for the new Consolidated Plan for the period July 1, 2008 - June 30, 2013. This process involves filing a “Substantial Amendment” to the current Annual Action Plan with HUD.

Attachment: R-31-09 Amendment to the CDBG Annual Action Plan