Title
RESOLUTION AUTHORIZING A DECREASE OF $160,584 FY 2022 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM.
Body
CITY PROPOSAL:
RESOLVED, that the city council hereby decreases the total expenditure of the 2022 CDBG Program by an amount of $160,584 due to a decrease in allocation to the city by HUD from the original estimate of $2,510,000 to the final HUD award of $2,349,416 and authorizes changes to contracts as set forth below:
2022 CDBG PROGRAM - FUND 262, AGENCY 020, OBJECT 5434, PROJECT CD22CD
Sub-Project-Activity Project /AGENCY Original New Difference
HOUS 1734 Duluth Property Rehab Prog. $ 500,000 $346,514.28 ($103,485.72)
Housing Redevelopment Authority
PSVC 1291 Free Tax Site- $20,000 $19,000 ($1000)
Community Action Duluth
PSVC 6915 Tenant Landlord Connection $24,500 $23,500 ($1000)
One Roof Community Housing
PSVC 2805 NYS Jobs, Education, Training $30,500 $29,500 ($1000)
Family Freedom Center
PSVC TBD Peer Based Recovery Support $20,000 $18912 ($1088)
Recovery Alliance Duluth
PSVC 1226 Family Supportive Housing $30,000 $10,000 ($20,000)
Center City
ADMC AD01 CDBG Program Adm $502,000 $468,989.72 ($33,010.28)
Statement of Purpose
STATEMENT OF PURPOSE: This resolution finalizes the 2022 Program portions of the Community Development Program. The City budgeted $ 2,510,000 for the FY 2022 HUD award to the CDBG Program in Resolution 22-0041R. The federal Department of Housing & Urban Development (HUD) officially notified the city of the FY 2022 CDBG allocation on May 13, 2022. The award letter from HUD awarded $2,349,416 to the CDBG program, which is a decrease of $160,584 from the anticipated amount.
A public comment period was held from November 3, 2021 December 3, 2021 and a public hearing on November 16, 2021. The committee’s recommendation and initial council resolution included a funding contingency plan that stated if the amount received varied more than 1% of the estimated amount, then the Community Development Committee would reconvene and revised the funding recommendations and submit it to City Council. The Community Development Committee met on July 12, 2022 and revised the FY 2022 funding allocations and recommended approval of the revised ESG funding allocations to City Council with the amounts included in this resolution. A 30 day public comment period was held from August 22, 2022 to September 22, 2022 on the revised amounts.