Staff recommends approval of this item. 

The City has been notified that the Department of Housing and Urban Development (HUD) will make available $821,542 in 2021-2022 Community Development Block Grant (CDBG) Program funds and $482,477 in HOME Program funds to support housing and community service programs during the 2021-2022 fiscal year, and $607,507 in 2020-21 CDBG-CV funds to support public transit activities.  In addition, prior year CDBG funds of $32,511 will be re-allocated from closed projects.

This ordinance allocates the CDBG and HOME Program funds, authorizes the City Manager to make application to HUD for the available funds and execute a written agreement for the expenditure of these funds, and allows necessary appropriations to be made.

The City of Independence is entering its 47^th year as a CDBG Entitlement community designated by HUD; and its 27^th year as a HOME Program Participating Jurisdiction (PJ).  As an Entitlement/PJ, the City receives the annual federal allocation to the CDBG and HOME Programs as determined through the federal formula calculation.

The City has been notified that it will receive $821,542 in CDBG Program funds and $465,330 in HOME Program funds from HUD.  In addition, the City seeks to reallocate $32,511 of prior year CDBG funds from closed projects. 

In the Housing category needs identified for funding are activities for low- and moderate-income neighborhood code compliance and emergency and minor home repair activities for low- and moderate-income households.  In the Public Service category needs identified for funding are senior and disabled services, subsistence services for the very low-income and homeless, and emergency rent and utility assistance.

The City will receive $607,507 of CDBG-CV funding allocated by the Coronavirus Aid, Relief, and Economic Security (CARES) Act.  The CDBG-CV funding will be used to assist in the cost associated with public transportation.  These funds are allocated in the Public Service category of the 2020-21 CDBG Program Year 46. 

CDBG-CV

Public Services (public transit) – $607,507.00 (Account 6603.5226-440)

The following programs/projects are recommended for the 2021-2022 action plan year:

CDBG:

1. Program Administration – $164,308.00 (Cost Center 6601) (20% of allocation)

2. Housing - Property Maintenance Code Compliance – $195,000.00  (Account 6604.5226.102)

3. Home Rehabilitation – $371,514  (Account 6604-5226-602)

4. Public Services (social services and assistance programs) – $123,231.00 (15% of allocation) (Cost Center 6603.5226)

HOME

1. Program Administration – $46,533.00 (Cost Center 6802) (10% of allocation)

2. Community Housing Development Organization (CHDO) – $69,800.00 (Account 6805.5406.700)

3. CHDO Operating Funds – $23,267.00 (Account 6805.5226.700)

4. Single & Multi-Family Housing Projects $325,730.00 (Account 6803.5406.505)