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Conduct a Public Hearing to Consider Funding under the FY 2014-15 Community Development Block Grant (CDBG) Program
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MEETING DATE: May 7, 2014
DEPARTMENT: Housing and Community Development Department
CONTACT: Shirletta Best, Community Services Administrator
Tara Olden, Community Services Coordinator
RECOMMENDED COMMISSION ACTION: Conduct a public hearing to consider funding under the 2014-15 Community Development Block Grant.
ITEM SUMMARY:
• On May 7, 2014 the Community Grant Advisory Commission will conduct a public hearing to consider requests for Community Development Block Grant (CDBG) funding from eligible agencies and allocations for city funded programs.
• On May 21, 2014 the Community Grant Advisory Commission will deliberate and formulate funding recommendations of agencies and present the entire CDBG budget to City Council on August 4, 2014.
• The Annual Action Plan (CDBG Budget) will be submitted for approval to the U.S. Department of Housing and Urban Development in August. The funds will be available October 1, 2014.
• Presentations on May 7, 2014 will include:
Public Service Requests
Health Services of North Texas
The Samaritan Inn
Communities in Schools, North Dallas Region
Community Lifeline Center
The Salvation Army
McKinney ISD
Children and Community Health Center of McKinney
Collin County Committee on Aging
Community Dental Care
Volunteer McKinney
Maurice Barnett Geriatric Wellness Center
CASA of Collin County
Infrastructure/Acquisition Requests
North Collin County Habitat for Humanity
McKinney Housing Authority
CDBG City Programs
Grant Administration
Housing Rehabilitation
Economic Development
• Requests and City Budget equal $1,100,803; only $730,747 in CDBG funding will be available, effective October 1, 2014.
SPECIAL CONSIDERATIONS:
• The minimum grant award per agency applying for public services funding is $ 5,000. Under statutory regulations, only 15% of the total CDBG grant can be used for Public Services, which equals a total of $109,612.
• Under statutory regulations, only 20% of the total grant can be used for Grant Administration in the amount of $146,149. Activities including Acquisition, Non-Public Services, CDBG Economic Development, Infrastructure, and Housing Rehabilitation account for the remaining 65% of the budget. Economic Development and Housing Rehabilitation are under city budget.
• Applications shall be analyzed for funding in accordance with the Strategic Plan goals expressed in the Housing and Community Development Consolidated Plan; service impacts to the community; past performance as applicable; duplication of services from other agencies; other sources of funding, and presentation critique.
• The U.S. Department of Housing and Urban Development notified the City of McKinney the anticipation of $730,747 CDBG grant funding available, effective October 1, 2014. For compliance, percentages are based on this information.
• To qualify for the program, non-profits must meet the following minimum requirements:
o Proposed use of funds must benefit residents of the City of McKinney.
o Must have been operating for at least three years prior to the application deadline.
o Must be a non-profit, tax exempt 501(c)(3) organization, in good standing with the State of Texas, and must have an active Board of Directors in compliance with IRS Section 501(c)(3).
o Organization must procure and maintain insurance, as required by the City of McKinney.
o Any property taxes or other liabilities due to the City of McKinney must be paid in full.
• The City of McKinney will not fund the following:
o The duplication of services or programs offered by the City of McKinney and/or other non-profit agencies.
o Social functions, parties, receptions, fund-raising benefits, refreshments or beverages.
o Licensing fees of any kind.
o Underwriting, investments, bonds, or any financial obligation.
o Interest and/or depreciation on loans, fines, penalties, or costs of litigation.
• In addition, the following activities MAY NOT be assisted with CDBG funds per federal regulations:
o The purchase of equipment, fixtures, motor vehicles, furnishings, or other personal property not an integral structural fixture is generally ineligible.
o The construction of new permanent residential structures is not eligible, unless done by a HUD-qualified non-profit organization. Purchase of land on which to build affordable homes, however, is an eligible activity.
o CDBG funds may not be used for political purposes or to engage in partisan political activities, or for lobbying of local, state, and federal legislators.
o Long term subsistence payments (longer than three months) for such needs as rent and utilities are ineligible.
o Landscaping and tree trimming are not eligible expenses.
o Mortgage payments for agency properties are not eligible, although rent payments may be eligible if the building is one in which services are provided directly to clients.
o Administrative costs which do not provide direct services to clients. Examples: The salary of an administrative assistant who does not work directly with clients would be an ineligible cost. The rent for administrative office space would NOT be an eligible expense, unless services provided are directly from that office space.