Title
Conduct a Public Hearing to Consider/Discuss/Act on a Resolution Approving the 2024-2025 Annual Action Plan and the Substantial Amendment to the 2020-2024 Consolidated Plan
Summary
COUNCIL GOAL: Enhance the Quality of Life in McKinney
MEETING DATE: August 6,2024
DEPARTMENT: Housing and Community Development
CONTACT: Shirletta Best, Community Services Administrator
Cristel Todd, Interim Housing & Community Development Director
RECOMMENDED CITY COUNCIL ACTION:
• Conduct Public Hearing to approve the Resolution for the Annual Action Plan and the Substantial Amendments to the Consolidated 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 are available city-wide to eligible beneficiaries, with emphasis of participation within census tracts 309, 308, 307 or 306. The city anticipates receiving an allocation of $ 912,415 for the reporting period of October 1, 2024, to September 30, 2025. Additionally, HUD informed the city of its eligibility to receive FY2025 to receive affordable housing funding under the HOME Investment Partnerships Program in the amount of $ 346,342.18.
• The city is required to complete an Annual Action Plan for each year under the Consolidated Plan for all HUD programs. The inclusion of HOME funds also expands the Substantial amendment to the Consolidated Plan. The Citizen Participation Plan and the Language Access Plan has been updated to include HOME funds, as required. The Action Plan and Amendments to the Consolidated Plan have been completed with support from the Community Grants Advisory Commission (CGAC), which conducts public hearings, meetings, and prepares funding recommendations to city council.
BACKGROUND INFORMATION:
• The 2020-2024 Consolidated Plan, a planning document for the city, is a five-year plan, was 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 program 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. Any changes to the Plan include amendments of new funding and reallocated funds; HUD determines access and overall funding for the distribution of new funding for eligible communities. The Citizen Participation and Language Access Plans, components of the Consolidated Plan, have been updated to include HOME funds.
o The HOME Investment Partnerships Program (HOME) is the largest federal block grant to state and local governments designed exclusively to create affordable housing for low-income households. HOME funds are awarded annually as formula grants to participating jurisdictions (PJs). The City of McKinney will be the 2nd municipality recipient of HOME funds in Collin County.
Citizen Participation
• The city conducted an FY25 pre-application meeting on February 23, 2024 (in-person) and February 26, 2024 (virtually), for funding under the CDBG and Community Support Grants. Technical assistance support for applicants was available February 26 - March 29, 2024. The grant deadline was April 3, 2024. The Community Grants Advisory Commission (CGAC) conducted two public hearings of public service agency requests and city programs on May 9 and May 16. The Commissioners met June 6, 2024 to determine public service funding recommendations and ask questions for input on city administered programs. All meetings and public hearings are open to the public. The City of McKinney received an eligibility notice to receive affordable housing funds through the HUD HOME Program. Staff completed initial requirements for consideration. Legal notice was provided to the public and at public hearings held on May 9 and May 16, 2024.
• The city promoted the process in city newsletters, the website and held a community input meeting Thursday, June 27 at Old Settler’s Recreation Center, to obtain public input on both HUD funding resources, leveraged resources and to reflect on the activity areas proposed. Two comments were obtained from the meeting, thanking the city for participation access. The 30-day public comment period of July 14 - August 14, 2024, also allows the option to provide input before the city submits the plan to HUD for review and final approval. The City Council conducts the last public hearing for citizen participation on August 6. Prior to the hearing, two comments have been received during this period:
o Public service proposed agencies are not required to accept recommendations; during the public comment period, Family Gateway, respectfully declined the recommendation as they determined full funding of their request was needed to develop their program of direct services to McKinney unhoused residents. The request was for $197,000 and the total pool of CDBG public service funding is $136,862. The agency will continue to make the program available through other resources No changes can be made until the completion of the public comment period; the Community Grants Advisory Commission will meet re-evaluate this portion of funding for use under a separate public comment period.
o The company Weecare/Upwards, Inc. was not considered for funding by the CGAC this year to support daycare operators through economic development programming. In their comments, they expressed commitment to contributing and significantly improving the lives of the micro-enterprise childcare providers and the working families they support and will be sure to apply again. The agency was referred to other ED funding resources and received application input. Comments will be included in the Annual Action Plan, as required. Additional comments after the public comment period will be inserted in the HUD submittal for review and final approval.
FINANCIAL SUMMARY:
• The city expects to receive from HUD, the FY24 CDBG allocation of $912,415 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 previously approved grant funds amended for use as needed during the next program year, estimated up to $300,000, that may carry over to complete housing and community development activities. The city will also receive annual allocation as a direct participating jurisdiction under the HOME Investment Partnerships Program, which requires a match of funding. The proposed funding will be used for eligible affordable housing activities. The direct allocation is $ 346,342.18, with a match of $154,591.00 for the first year, from the Texas Department of Housing and Community Affairs (TDHCA). For multiple years, the City of McKinney has been a subrecipient of funding from TDHCA.
BOARD OR COMMISSION RECOMMENDATION:
• The Community Grants Advisory Commission deliberated on June 6, 2024, to determine public service funding recommendations. Funding recommendations for city administered programs are also included within the overall city’s budget. The program and fiscal year begin October 1, 2024. AAP Recommendations and city administered programs are as follows:
|
CASA of Collin County |
$ 20,465.50 |
|
Communities in Schools of the Dallas Region |
$10.000.00 |
|
Family Gateway |
$22,312.50 |
|
Hopes Door New Beginnings Center |
$24,437.50 |
|
Meals on Wheels Collin County |
$21,465.00 |
|
The Samaritan Inn, Inc. |
$38,181.00 |
|
Housing Rehabilitation Program |
$ 593,070.00 |
|
Grant Administration |
$182,483.00 |
|
Carryover Funds for Housing/Community Development (estimated, NTE) |
$300,000.00 |
|
HOME Program |
$346,342.18 |