Title
Conduct a Public Hearing to Consider/Discuss/Act on a Resolution Approving the Fiscal Year 2019-20 Community Development Block Grant Annual Action Plan Recommendations to City Council
Summary
COUNCIL GOAL: Enhance the Quality of Life in McKinney
MEETING DATE: August 5, 2019
DEPARTMENT: Housing and Community Development
CONTACT: Shirletta Best, Community Services Administrator
ITEM SUMMARY:
• McKinney is a recipient of federal funds under the U.S. Department of Housing and Urban Development (HUD), whereby funding is used for housing and community development activities, predominately to benefit low-to-moderate income households. The City leverages its federal community development resources with the Community Support Grant, supported under the General Fund. Federal resources require an Annual Action Plan that details use of federal and local funds for housing and community development.
• The annual Consolidated Grant process provides nonprofit agencies serving eligible McKinney residents opportunity to apply for public service funding. The City also administers housing and community development programs to assist eligible residents. The CDBG grant is a federal grant and the CSG resources are under the General Fund; both subject to separate requirements and are approved at separate intervals under the process. The Community Grants Advisory Commission, a 7-person commission appointed by City Council conducts the public hearings and makes recommendations under this process. Applicants and city funded programs began the budget and application process in February, 2019 for the FY 2019-2020 program year. Interested agencies were invited to a pre-application meeting, received training and technical assistance to prepare for application submittal. Applications were due April, 2019.
• Commissioners conducted two public hearings on May 8, 2019 and May 9, 2019. Applicants who completed an eligible application for consideration and met review requirements addressed the Community Grants Advisory Commission in support of the funding. Requests were reviewed in accordance with the Strategic Plan goals expressed in the Housing and Community Development Consolidated Plan; statutory, city and program requirements and restrictions; service impacts to the community; past performance as applicable; duplication of services from other agencies; other sources of agency funding, and presentation critique as applicable. The Annual Action Plan also includes city administered programs: Housing Rehabilitation Program, Grant Administration and the LIFT (Landlord Individual and Family Tenant) pilot program to assist households with Housing Choice Vouchers, with housing mobility resources.
• Funding recommendations under the Consolidated Grants process for FY 2019-20 were deliberated by the Community Grants Advisory Commission (CGAC) on May 30, 2019 for City Council consideration under the Annual Action Plan.
• The plan remains under public comment available until August 6. City Council will conduct a public hearing to review CGAC recommendations under CDBG at the August 5, 2019 regular meeting. Public hearing for the funding under the Community Support Grant will be conducted in September for review and approval. The city will submit the Annual Action Plan for CDBG funding to HUD no later than August 16 for review and final approval.
• The program year begins October 1, 2019.
BACKGROUND INFORMATION:
• Proposed use of Consolidated Grant Program funds must benefit residents in McKinney city limits.
• Community Development Block Grant (CDBG). CDBG funds must be used to address at least one program national objective of predominately benefiting low-to-moderate income persons; eliminating slum and blighted conditions, or addressing an urgent need.
• Use of funds must operate in compliance with federal and local government requirements.
• Community Support Grant (CSG). The CSG program provides public service funding to agencies or programs that benefit McKinney residents, not limited to low-to-moderate income persons. Minimum award is $3,000. Funds subject to General Fund resources. All funding occurs during the budget cycle; off-budget cycle funding may be granted in the rare instance that additional funds become available and must adhere to the same review process.
Grant priorities include:
o Basic Needs: including Food and Clothing; Housing and Shelter and Non-Financial Assistance;
o Health and Medical Treatment: Including Mental Health
o Housing: Financial Assistance
o Transportation: The sole service being provided (public service)
FINANCIAL SUMMARY:
• The U.S. Department of Housing and Urban Development (HUD) notified the city of its 2019 CDBG allocation in the amount of $751,993. Federal regulations require a minimum of 15% of the grant be used for public services and a maximum of 20% used for grant administration. Under these statutory requirements, the public services and LIFT programs will have a total budget of $114,298 and the 2019 distribution for Grant Administration is $152,398. The remaining allocation of $495,297 is used for the city’s Housing Rehabilitation Program; any estimated carryover funding available from previous grant years at the end of the current program year are used under the CDBG Housing Rehabilitation Program.
• Proposed CDBG Budget:
CASA of Collin County $ 17,681
Communities in Schools, Dallas Region $ 17,147
Community Lifeline Center $ 7,514
Hope’s Door/New Beginnings Center $ 10,098
Meals on Wheels of Collin County $ 14,181
The Salvation Army $ 12,723
The Samaritan Inn $ 14,954
LIFT Program $ 20,000
Housing Rehabilitation Program $ 1,028,945
Grant Administration $ 152,398
• Annual Action Plan subject to final approval by HUD. Recommendations under the Community Support Grant will be presented to City Council for approval upon adoption of the General Fund in October.