Public Hearing
Substantial Amendment and Changes
to
2020 – 2025 Consolidated Plan
FY 2024-2025 Annual Action Plan (AAP)
August 13, 2024
Reporting Overview
Annual Action Plan: Outlines the City’s use of its Community Development Block Grant (CDBG)and HOME Investments Partnerships Program (HOME) funds each year.
Consolidated Plan: Five-year plan for the use of CDBG and HOME funds.
Fiscal Year 2024-2025 is the 5th Action Plan of the Five-Year Consolidated Planning period (2020-2025).
Substantial Amendments
In accordance with the City’s Citizen Participation Plan (CPP):
When a substantial change is proposed to the City’s Annual Action Plan or the Consolidated Plan, the City requires that the public be notified, and a Public Hearing be held to allow the public an opportunity to comment on the proposed substantial changes such as:
Adding an activity
Canceling an activity
Redirecting funds; or
Receiving additional funding
Proposed Substantial Amendments
On May 18, 2024, the City was notified by the Department of Housing and Urban Development of their allocation of HOME funds, after the 2024-2025 Annual Action Plan was approved and adopted by City Council on April 23, 2024.
The City is electing to opt into the Federal HOME Investment Partnership Program (HOME) program as a HOME Participating Jurisdiction (PJ).
As a HOME PJ entitlement community, the City will be receiving HOME fund allocations from HUD for the first time in FY 2024-2025.
HOME Program Objectives
Expanding the supply of decent and affordable housing, particularly housing for low- and very low-income residents, Strengthening the abilities of State and local governments to design and implement strategies for achieving adequate supplies of decent, affordable housing, Providing financial and technical assistance to participating jurisdictions, including the development of model programs for affordable low-income housing; and Extending and strengthening partnerships among all levels of government and the private sector, including for-profit and non-profit organizations, in the production and operation of affordable housing.
Housing Related Eligible Uses of HOME funds
Acquisition
Rehabilitation
New construction of rental and homeownership housing
Direct homebuyer assistance (loans, grants, downpayment and closing costs assistance) Tenant-based rental assistance.
Based on the current need and expressed interest by residents, staff proposes allocating thus years funds to a Residential Rehabilitation Grant Program. Upon approval of this item from the City Council, staff will work on developing guidelines based on HUD regulations for HOME funded programs.
Residential Rehabilitation for Homeownership Housing
Eligible Costs and Uses
Hard Costs • Construction costs required to meet the rehabilitation standards and/or applicable codes, standards, and ordinances,• Essential improvements,• Energy-related improvements,• Lead-based paint hazard reduction,• Accessibility modifications for disabled persons,• Repair or replacement of major housing systems,• Repairs and general property improvements of a non-luxury nature, and• Site improvements and utility connections.
Soft Costs • Appraisals,• Pest inspections,• Work write-ups,• Initial and job progress inspections,• Project costs incurred by the PJ that are directly related to a specific project.
Residential Rehabilitation for Homeownership Housing
Ineligible uses or repair programs as standalone programs, such as:
Weatherization programs,
Emergency repair programs,
Handicapped accessibility programs.
HOME funds can be used to pay for any of these costs, but only when they are undertaken in conjunction with overall rehabilitation of the unit.
Proposed Substantial Amendments
Proposed Amendment to the 2020-2025 Consolidated Plan will amend Goal No. 3, as noted below:
Preserve the supply of affordable housing – to include Residential Rehabilitation Grants via HOME funds Proposed changes to the previously approved FY 2024-2025 Annual Action Plan will authorize the addition of HOME funds as follows:
Activity
Allocation
HOME Administration (10%)
$ 37,446.93
Mandatory CHDO Set-Aside (15%)
$ 56,170.39
Residential Rehabilitation Grants
$ 280,851.94
TOTAL HOME ALLOCATION:
$ 374,469.26
Recommendations
Recommend that the City Council open the Public Hearing and solicit comments from interested citizens on the; Substantial Amendment No. 1 to the 2020-2025 Consolidated Plan Changes to the previously approved FY 2024-2025 Annual Action Plan Adopt a resolution approving the Substantial Amendment No. 1 to the 2020-2025 Consolidated Plan and proposed changes to the previously approved FY 2024-2025 Annual Action Plan; Authorize the City Manager to submit the Substantial Amendment of the Con Plan and changes to the previously approved AAP to the U.S. Department of Housing and Urban Development (HUD); and Authorize the City Manager to take all actions necessary to implement the programs identified in the Con Plan and AAP; and Authorize the Finance Director to add the allocation of HOME funds to the FY 24-25 fiscal year budget and identify an eligible match source.