TO: Mayor and City Council
THROUGH: Steve Powers, City Manager
FROM: Kristin Retherford, Urban Development Director
SUBJECT:
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Amendment #5 to the 2019 Annual Action Plan for Community Development Block Grant Funds
Ward(s): All Wards
Councilor(s): All Councilors
Neighborhood(s): All Neighborhoods
Service Area(s): Safe Community; Welcome and Livable Neighborhood; Good Governance
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SUMMARY:
summary
The proposed amendment to the 2019 Annual Action Plan (AAP) includes allocation of $860,354 in new Community Development Block Grant (CDBG) and a $197,474 allocation of previously unallocated 2019 CDBG entitlement.
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ISSUE:
Shall City Council adopt Amendment #5 to the 2019 Annual Action Plan and direct staff to submit required forms to the U.S. Department of Housing and Urban Development?
RECOMMENDATION:
recommendation
Adopt Amendment #5 to the 2019 Annual Action Plan, and direct staff to submit required forms to the U.S. Department of Housing and Urban Development.
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FACTS AND FINDINGS:
The proposed Amendment #5 to the 2019 Annual Action Plan (Amendment) allocates $197,474 of previously unallocated CDBG funds as well as a new allocation of CDBG-CV (COVID) funds from HUD. Staff was notified earlier in 2021 that the 2020 CARES Act would be providing the City with an additional $860,354 in CDBG-CV funds (CDBG CV) to address impacts of COVID-19.
Award recommendations are based on a priority of preventing evictions and homelessness of individuals impacted by COVID-19. This priority is consistent with the City’s 5-Year Consolidated Plan and the City’s Strategic Plan. A five-day comment period for Amendment #5 to the 2019 AAP ended on July 19, 2021. There were no public comments received.
Applications for CDBG-CV3 funds were solicited by the City during the period of 06/04/21 - 07/06/21 and allocations are recommended as follows:
Amendment #5 2019 AAP (Attachment #1)
• Allocate $172,070 for administration costs.
• Allocate $688,000 to five community programs.
• Emergency Rental Assistance Program - $200,000, St. Francis Shelter
• Emergency Utility/Rental/Mortgage Assistance Program - $100,000, North West Human Services
• Emergency Rental Assistance Program - $136,000, Island Boy Camp
• Early Learning HUB (assisting new and existing child care providers) - $200,000 Multi partner program
• J.D. Health and Wellness (physical and mental health services for homeless individuals) - $52,000, Cooperative Program
• Allocate $197,474 from previous unallocated 2019 CDBG entitlement to Salvation Army of Marion and Polk Counties for case management and rental assistance.
When the City was awarded its initial allocation of CDBG-CV funds in the spring of 2020, the most expeditious way to make funds available to the community was through an amendment to the 2019 Annual Action Plan rather than waiting several months for HUD approval of the 2020 Annual Action Plan. To remain consistent with prior allocations of CDBG-CV funds, this most recent allocation of CDBG CV3 will also be processed through an amendment to the to the 2019 Annual Action Plan rather than to the 2021 Annual Action Plan. This will assist with more expeditious distribution of funds.
Prior to submitting the AAP amendment to HUD, a public hearing and City Council adoption is required.
BACKGROUND:
The City of Salem receives an annual entitlement allocation of CDBG and HOME funds through the federal Housing and Urban Development Department (HUD) to assist low-to-moderate-income households. The funds are distributed following an annual funding application process. Occasionally, there are more funds available than requests, or projects that have been awarded funds don’t come to fruition. This leaves funds available for new allocation.
Tiffany Ottis
Program Manager
Attachments:
1. 2019 AAP-Amendment #5