File #: 15-556    Name: Substantial Amendment
Type: Agenda Item Status: Approved
In control: Community Grants Advisory Commission
On agenda: 6/11/2015 Final action: 6/11/2015
Title: Consider/Discuss/Act on a Substantial Amendment to the CDBG 2014-15 Annual Action Plan
title
Consider/Discuss/Act on a Substantial Amendment to the CDBG 2014-15 Annual Action Plan
 
Summary
 
COUNCIL GOAL:      Enhance the Quality of Life in Downtown McKinney
 
MEETING DATE:      June 11, 2015
 
DEPARTMENT:       Housing and Community Development
 
CONTACT:        Shirletta Best, Community Services Administrator
      Janay Tieken, Housing & Community Development Manager
 
 
RECOMMENDED CITY COUNCIL ACTION:      
Hold a Public Hearing to Consider/Discuss/Act on a Substantial Amendment to the Annual Action Plan
 
 
ITEM SUMMARY:  
·      The Citizen Participation Plan states in the case of certain changes to the Consolidated Plan or an Annual Action Plan, the City will propose a substantial amendment and invite public comment, per Federal regulation 24 CFR subpart b, Section 91.105 (c) and Section 91.505 (a)(b).
 
Per requirements of the U.S. Department of Housing and Urban Development (HUD), a substantial amendment to the Consolidated Plan or Annual Action Plan must be viewed under a 30-day public comment period to citizens before any change to the Action Plan or Consolidated Plan may be considered.
 
The substantial amendment is proposed under the Annual Action Plan for program year October 1, 2014 - September 30, 2015. The requestor is the McKinney Housing Authority asking for a change in use of funds.
 
Current Award/Use of Funds:
The McKinney Housing Authority (MHA) was awarded $100,000 to use for infrastructure (water and sewer line replacement) at the redevelopment of Newsome Homes, 100 Amscott Circle.  City Council approved use of funds under the CDBG Annual Action Plan on August 3, 2014. Resolution No. 2014-08-088 (R).  No funds have been expended at this time. Due to changes with the project schedule, the agency is requesting the use adjustment to ensure CDBG funds will be expended with the program year.
 
Proposed Change of Use:
MHA requests in the executed grant agreement a change to the use of funds from Infrastructure to Professional Services, for the Newsome Homes Project. Types of services may include engineering and surveying.  All professional services under the CDBG-assisted activity must be procured competitively, regardless of the source of funds (in part or wholly with CDBG) that will be expended under the professional services contract.  Citizens will be able to provide written comments for consideration.  The Public Comment Period will take place June 14, 2015 - July 16, 2015.  The City Council will also hold a public hearing on July 21, 2015.  The Substantial Amendment will be submitted to the U.S. Department of Housing and Urban Development (HUD) for review and final approval.
 
 
BACKGROUND INFORMATION:  
·      Due to a change in the original scope of the awarded funds; a substantial amendment is required per HUD requirements and the city's Consolidated Plan.
·      Upon approval of the Substantial Amendment from HUD, a revised grant agreement between the City of McKinney and the McKinney Housing Authority will be issued and signed by the Interim City Manager.
 
FINANCIAL SUMMARY:  
·      No financial change to the awarded CDBG amount; no impact to the General Fund; no additional staff is required, and the action does not impact relocation of residents.