Title
Conduct a Public Hearing on Substantial Amendments to the FY 2019-2020 CDBG Action Plan and Citizen Participation Plan
Summary
COUNCIL GOAL: Enhance Quality of Life in McKinney
(5A: Develop Sustainable Quality of Life Improvements within the City of McKinney)
MEETING DATE: May 5, 2020
DEPARTMENT: Housing & Community Development
CONTACT: Shirletta Best, Community Services Administrator
RECOMMENDED CITY COUNCIL ACTION:
• Conduct a public hearing to amend the Community Development Block Grant (CBDG) Citizen Participation Plan and Fiscal Year 2019-20 Action Plan, under the FY 2015-2019 Consolidated Plan.
ITEM SUMMARY:
• On March 27, 2020 the United States Congress passed The Coronavirus Aid, Relief, and Economic Security Act (H.R. 748). The bill provided $5 billion for CDBG grantees to rapidly respond to COVID-19 and the economic and housing impacts caused by this circumstance.
• The City of McKinney will receive an allocation of $500,444 in Community Development Block Grant - Coronavirus (CDBG-CV) funding. A Substantial Amendment to the FY 2019-2020 Annual Action Plan is required. As a thirty (30) day public comment period is required per program regulation; the U.S. Department of Housing and Urban Development (HUD) waived this requirement, provided that no less than five days are provided for public comments on each substantial amendment. HUD also provided additional waivers for updates under the Citizen Participation Plan, as needed.
• CDBG-CV funds allocated under the CARES Act may be used for eligible activities that prevent and respond the spread of infectious diseases, specifically coronavirus disease 2019 (COVID-19). Proposed activities must be CDBG-eligible, benefit McKinney residents and meet one of three National Objectives required by CDBG regulations:
o Benefit low-and-moderate income persons.
o Aid in the prevention or elimination of slums or blight, and
o Meet an urgent need.
BACKGROUND INFORMATION:
• On April 28, 2020, staff presented to City Council information on the CDBG-CV allocation and proposed uses of funding. The city will publish a legal notice on May 3, 2020, under a 5-day to provide substantial amendment notice for public comment on required administrative updates to prepare for receipt and use of funds. City Council will conduct a public hearing on May 5, 2020 to hear final comments. Public comments will be included in the amendment submittal to HUD for review and approval. Council will conduct a 2nd public hearing for the actual use of funds at a future date.
• Expedited Procedures Summary
Substantial Amendments to the City of McKinney Citizen Participation Plan, under the FY 2015-2019 Consolidated Plan and the FY 2019 Annual Action Plan, in response to how the funds will be used to prevent, prepare for, and respond to coronavirus within program years of FY 2019 and FY 2020.
o Amendment #1 of the Citizen Participation Plan. The City of McKinney will provide opportunity for public comment of any substantial amendment or submission of annual action plan, consolidated plans or year-end reporting of no less than five (5) days in response to the U.S. Department of Housing and Urban Development (HUD) and the public of how CDBG-CV or CDBG funds will be used to prevent, prepare for, and respond to coronavirus within program years of FY 2019 and FY 2020.
o Amendment #2, Citizen Participation Plan. The City of McKinney will incorporate the waiver provision granted by the HUD that in-person hearings are not required, and allowance to conduct virtual public hearings with regard to HUD funding for public hearing requirements if: 1) national or local health authorities recommend social distancing and limiting public gatherings for public health reasons; and 2) virtual hearings provide reasonable notification and access for citizens in accordance with the grantee’s certifications, timely responses from local officials to all citizen questions and issues, and public access to all questions and responses.
o Amendment #1, FY 2019-2020 Annual Action Plan. The City of McKinney will amend the FY 2019-2020 Annual Action Plan, approved by City Council in August 2019 to include two new activities: the acceptance of CDBG-CV funding in the amount of $500,444 to be used no later than the end of the program year on September 30, 2020.
o Amendment #2, FY 2019-2020 Annual Action Plan. To re-allocate $200,000 from the Housing Rehabilitation Program for new use to provide food distribution funding support to the North Texas Food Bank for McKinney residents.
FINANCIAL SUMMARY:
• The city will receive an CDBG-CV allocation of $500,444 from the U.S. Department of Housing and Urban Development (HUD). The city will also re-allocate $200,000 from its CDBG FY19 funding for use under the CDBG-CV program. Funding will be under the 17-1704 grant division.