Title
Conduct a Public Hearing on the PY 2018-2019 Community Development Block Grant Annual Action Plan Recommendations to City Council
Summary
COUNCIL GOAL: Enhance the Quality of Life in Downtown McKinney
MEETING DATE: July 12, 2018
DEPARTMENT: Housing and Community Development
CONTACT: Shirletta Best, Community Services Administrator
ITEM SUMMARY:
• Funding recommendations were deliberated by the Community Grants Advisory Commission (CGAC) on May 31, 2018 for City Council consideration under the Annual Action Plan.
• The Community Grant Advisory Commission conducted two public hearings on the dates of May 9, 2018 and May 10, 2018 to consider requests of The Consolidated Grant Program, leveraged in funding from the Community Development Block Grant (CDBG), U.S. Department of Housing and Urban Development (HUD) and the Community Support Grant (CSG), under the City of McKinney General Fund.
• Applicants who completed an eligible application for consideration and met review requirements addressed the Community Grants Advisory Commission in support of the funding. This included city funded programs.
• 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.
• Annual Action Plan recommendations will be available for review and comment during the period of July 6 to August 6, 2018.
• City Council will conduct a public hearing to review CGAC recommendations at the August 6, 2018 regular meeting. The city will submit the Annual Action Plan to HUD no later than August 16 for review and final approval. Public hearing for the funding under the Community Support Grant will be conducted in September for review and approval.
• All funding will approved under the city budget in September. The program year for the 2018-19 Consolidated Grant Program begins October 1, 2018.
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 2018-2019 CDBG allocation in the amount of $758,765. Federal regulations requires 15% of the grant for public services and only 20% used for grant administration. Under these statutory requirements, the Public Services Grant program will have a total funding pool of $113,814. The total distribution for Grant Administration is $151,753, and Non-Public Services account for the remaining balance of $493,198 under CDBG Housing Rehabilitation and Community Economic Development. Any estimated carryover funding available from previous grant years at the end of the current program year will be used for CDBG Housing Rehabilitation and Community Economic Development Programs.
• Funding subject to approval of the FY19 City budget in September.