Title
RESOLUTION AUTHORIZING FUNDING ALLOCATION CHANGES AND FINALIZING THE 2024 ANNUAL ACTION PLAN AND AUTHORIZING A REQUEST FOR HUD FEDERAL COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG), HOME PROGRAM (HOME), AND EMERGENCY SOLUTIONS GRANT PROGRAM (ESG) PROGRAM FUNDS.
Body
CITY PROPOSAL:
WHEREAS, Regulation 24 CFR Part 91 issued by the U.S. Department of Housing and Urban Development (HUD) requires the city to submit and receive HUD approval of an annual action plan as part of a HUD-approved five-year consolidated plan for the city of Duluth; and
WHEREAS, Title 1 of the Housing and Community Development Act of 1974, as amended, establishes a community development block grant (CDBG) program for the purpose of developing viable urban communities by providing decent housing and suitable living environment and expanding economic opportunities and preventing and/or eliminating conditions of slum and blight, principally for persons of low and moderate income; and
WHEREAS, the city of Duluth desires to continue to carry out HUD-funded programs;
NOW, THEREFORE, BE IT RESOLVED, that the FY 2024 action plan portion of FY 2020-2024 city of Duluth consolidated plan for housing and community development required by HUD federal legislation are hereby adopted and approved.
BE IT FURTHER RESOLVED, that the City of Duluth hereby makes a finding that expenditures as set forth in Resolution No. 24-0036R and further revised in Resolution No. 24-0595R are necessary and appropriate and, further, that said expenditures for the CDBG program will serve to assist low- and moderate-income individuals/families (no less than 70 percent as described in federal regulations) and/or serve to prevent or eliminate conditions of slum or blight in the community.
BE IT FURTHER RESOLVED, that the city of Duluth hereby makes a finding that expenditures as set forth in Resolution No. 24-0037 and further revised in Resolution No. 24-0596 are necessary and appropriate and, further, that said expenditures for the HOME Program that will serve to assist low- and moderate-income people.
BE IT FURTHER RESOLVED, that the city of Duluth hereby makes a finding that expenditures as set forth in Resolution No. 24-0038 and further revised in Resolution No. 24-0597R are necessary and appropriate and, further, that said expenditures for the ESG Program that will serve to assist low- and moderate-income people.
BE IT FURTHER RESOLVED, that the city of Duluth and its officials are authorized and directed to assume full responsibility for assuring that its community development program is carried out in full compliance with the provisions of the acts implementing the programs and all regulations of HUD issued pursuant thereto and authorizing appropriate city officials to execute any documents with HUD to implement the program. This authorization shall also apply to existing programs with the city and HUD under the HUD CDBG, HOME and ESG programs.
Statement of Purpose
STATEMENT OF PURPOSE: This resolution approves the 2024 Annual Action Plan portion of the 2020-2024 consolidated plan for the city. The action plan sets forth FY 2024 funding and allows opportunity for comments from organizations and citizens as related to said funding for three HUD-funded programs: the community development block grant program (CDBG), the HOME program (HOME), and the emergency solutions grants program (ESG). The recommendations contained in this resolution were developed based on consideration of citizen comments, the public hearing held on December 5, 2023, and the deliberations of the community development committee (CD committee). There was a 30-day public comment period from November 25, 2023 to January 9, 2024, on the draft 2024 annual action plan portion of the 2020-2024 consolidated plan, which also includes recommended funding for the 2024 CDBG, HOME and ESG programs. The CD committee’s recommendations were adopted on January 9, 2024 with the concurrence of the planning and development manager. Duluth City Council approved the recommended funding amounts on January 22, 2024.
The original funding amounts were based on funding estimates. HUD officially notified the city of the FY 2024 funding amounts on May 18, 2024 which included an increase in the CDBG and ESG programs and a decrease in the HOME program. The committee’s recommendation and initial council resolution included a funding contingency plan that stated if the amount received varied more than 3% of the estimated amount, then the Community Development Committee would reconvene and revised the funding recommendations and submit it to City Council. The CDBG and ESG amounts were within the 3% estimated amount so funding was allocated appropriately and no public hearing was required. The HOME amount decreased by 14%, so a public hearing on the new allocation was required. A public comment period was held from July 6, 2024 to August 6, 2024 and the Community Development Committee held a public hearing on August 6, 2024 on the new HOME allocation amount and recommended approval of the revised funding allocations to City Council with the amounts included in this resolution. The resolution, in addition to authorizing application for grant funds and administration of same when received, also takes the following actions:
(a) Approves a 2024 annual action plan portion of the 2020-2024 consolidated plan under HUD regulations;
(b) Allocates funds to the projects as listed for the 2024 CDBG program;
(c) Allocates funds for the 2024 HOME and ESG Programs; and
(d) Authorizes execution of documents with HUD.
Source of funds:
$2,352,496 in new 2024 CDBG funds
$ 499,731.87 in new 2024 HOME funds
$209,696 in new 2024 ESG funds
$3,061,923.87 2024 community development program total