Title
Conduct a Public Hearing to Consider/Discuss/Act on a Resolution Approving the 2023-2024 Community Development Block Grant (CDBG) Annual Action Plan
Summary
COUNCIL GOAL: Enhance the Quality of Life in McKinney
MEETING DATE: August 1, 2023
DEPARTMENT: Housing and Community Development
CONTACT: Shirletta Best, Community Services Administrator
Janay Tieken, Housing & Community Development Director
RECOMMENDED CITY COUNCIL ACTION:
• Conduct Public Hearing and approve Resolution for the Annual Plan.
ITEM SUMMARY:
• The City of McKinney receives Community Development Block Grant (CDBG) funding from the U.S. Department of Housing and Urban Development (HUD) to principally benefit low-to-moderate income households and persons. The city has participated as a HUD Entitlement Community since FY 2003; activities and programs can be held city-wide to eligible beneficiaries, with emphasis of participation within census tracts 309, 308, 307 or 306.
• The city anticipates receiving an allocation of $ 961,099 for the reporting period that begins October 1, 2023 to September 30, 2024. The city is required to complete an Action Plan for each year under the Consolidated Plan.
• The Action plan is developed with city programs and accordance under the Community Grants Advisory Commission (CGAC), which conducts public hearings and prepares funding recommendations to city council.
BACKGROUND INFORMATION:
• The Consolidated Plan, a planning document for the city, is a five-year plan, completed with public input support to help identify priority eligible housing and community development needs toward the use of CDBG funding. Annually, an Annual Action Plan for each year is created, consisting of a summary of eligible programs and activities, with specific federal and non-federal funding resources, requirements and amendments, as such, to address those needs. HUD determines access and overall funding for the distribution of new funding for eligible communities.
• Activities for priority needs include:
Preservation of existing affordable housing through rehabilitation; expansion of affordability in housing; support for persons experiencing or at-risk of homelessness; housing or public services to prevent or respond to Coronavirus, and non-housing community development needs, including public services. Preparation under the Action Plan in February with the announcement of potential CDBG funds for use and steps for eligible agencies to apply for funding.
• The Consolidated Grants application process began with two non-mandatory information meetings: One in-person meeting on February 24 and virtual session was held on February 27. The application portal opened February 27, with technical assistance support was available through March 31. The grant deadline was April 3, 2023.
• The Community Grants Advisory Commission conducted two public hearings of public service agency requests and city programs on May 10 and May 11. Commissioners met on June 1 to determine recommendations. All activities allowed citizen participation and additionally the public may also comment on proposed recommendations during the public comment period of July 16- August 16. City Council will also conduct a public hearing on August 1 at its regular meeting, to receive public comments before the city submits the plan to HUD for review and final approval. All comments received will be included in the draft plan to HUD. The Action Plan is a part of the city’s overall budget and included under the city’s overall process before the new fiscal year begins October 1, 2023. At the completion of the program period next year, the city will report to the public and city council the performance of how funds were used.
FINANCIAL SUMMARY:
• The primary resource to fulfill the Annual Action Plan is CDBG funding. The city expects to receive from HUD, the FY 2023-24 allocation of $961,099, of which only 15% of funds can be used for public services, 20% used for grant administration and the remaining distribution for housing and community development activities, including the city’s housing rehabilitation program. Also, the city anticipates the use of amended or previously approved grant funds available upon completion of the current year, that may carry over into the program year to complete housing and community development activities.
BOARD OR COMMISSION RECOMMENDATION:
• The Community Grants Advisory Commission met June 1, 2023, to determine funding recommendations and provide to the city council and the public. Funding recommendations under the action plan are within the overall city’s budget and included for approval in September for the start of the city’s fiscal year.