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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 06/21/2022 - ITEMS RELATING TO THE APPROPRIATION OF FEDERAL FUN Agenda Item 4 Item # 4 Page 1 AGENDA ITEM SUMMARY June 21, 2022 City Council STAFF Beth Rosen, Grants Compliance & Policy Manager Ingrid Decker, Legal SUBJECT Items Relating to the Appropriation of Federal Funds in the Community Development Block Grant (CDBG) and Home Investment Partnerships (HOME) Program Funds. EXECUTIVE SUMMARY A. Second Reading of Ordinance No. 068, 2022, Making Supplemental Appropriations in the Community Development Block Grant Fund. B. Second Reading of Ordinance No. 069, 2022, Making Supplemental Appropriations in the HOME Investment Partnerships Grant Fund. This Ordinance, unanimously adopted on First Reading on June 7, 2022, appropriates the City’s FY2022 Community Development Block Grant (CDBG) Entitlement Grant and FY2022 Home Investment Partnerships Program (HOME) Participating Jurisdiction Grant from the Department of Housing and Urban Development (HUD), and CDBG program income from FY2020 & FY2021 and HOME Program Income from FY2020 & FY2021. STAFF RECOMMENDATION Staff recommends adoption of the Ordinances on Second Reading. ATTACHMENTS 1. First Reading Agenda Item Summary, June 7, 2022 (w/o attachments) (PDF) 2. Ordinance No. 068, 2022 (PDF) 3. Ordinance No. 069, 2022 (PDF) Agenda Item 11 Item # 11 Page 1 AGENDA ITEM SUMMARY June 7, 2022 City Council STAFF Beth Rosen, Grants Compliance & Policy Manager Ingrid Decker, Legal SUBJECT Items Relating to the Appropriation of Federal Funds in the Community Development Block Grant (CDBG) and Home Investment Partnerships (HOME) Program Funds. EXECUTIVE SUMMARY A.First Reading of Ordinance No. 068, 2022, Making Supplemental Appropriations in the Community Development Block Grant Fund. B.First Reading of Ordinance No. 069, 2022, Making Supplemental Appropriations in the HOME Investment Partnerships Grant Fund. The purpose of this item is to appropriate the City’s FY2022 Community Development Block Grant (CDBG) Entitlement Grant and FY2022 Home Investment Partnerships Program (HOME) Participating Jurisdiction Grant from the Department of Housing and Urban Development (HUD), and CDBG program income from FY2020 & FY2021 and HOME Program Income from FY2020 & FY2021. STAFF RECOMMENDATION Staff recommends adoption of the Ordinances on First Reading. BACKGROUND / DISCUSSION The Community Development Block Grant (CDBG) Entitlement Program provides annual grants on a formula basis to eligible cities and counties to improve the living conditions for low and moderate- income persons. Recipient communities develop their own programs and funding priorities. In the 2020–2024 Consolidated Plan submitted to HUD, the City prioritized the use of these funds to further its affordable housing goals and provide public services for persons experiencing homelessness and persons most at risk of homelessness. The HOME Investment Partnership Program (HOME) provides annual grants on a formula basis to Participating Jurisdictions to implement local housing strategies designed to increase homeownership and housing opportunity for low and very low-income residents. These funds are used annually to further the affordable housing goals outlined in the Housing Strategic Plan. On May 13, 2022, HUD released the formula allocations for both the CDBG and HOME programs. This appropriation includes $1,120,412 for CDBG and $803,409 for HOME. Additionally, the City receives annual repayments into the CDBG & HOME programs, referred to as Program Income (PI), through the payoffs of Home Buyer Assistance (HBA) loans and loan payments on affordable housing projects. These payments go back to their respective programs for re-allocation to eligible projects. Since April 1, 2021, the CDBG program has received $79,461 in Program Income and the HOME Program has received $186,484 in Program Income. ATTACHMENT 1 COPY Agenda Item 11 Item # 11 Page 2 Ordinance No. 068, 2022, appropriates a total of $1,199,873 into the CDBG Program, which includes the Entitlement Award of $1,120,412 and $79,461 from Program Income. Ordinance No. 069, 2022, appropriates a total of $989,833 into the HOME Program, which includes the Entitlement Award of $803,409 and $186,484 from Program Income. These funds are allocated through an annual Competitive Process, with funding recommendations being made to Council by the Human Services and Housing Funding Board. Recommendations for the use of these funds will be presented to Council at its regular meeting on June 21, 2022. CITY FINANCIAL IMPACTS This item will appropriate $2,189,766 in federal funding to the City of Fort Collins which will be allocated to housing and community development related programs and projects and administration of the funds, thereby reducing the demand on the City’s General Fund budget to address such needs. ATTACHMENTS 1. HUD FY2022 Formula Allocations (PDF) COPY -1- ORDINANCE NO. 068, 2022 OF THE COUNCIL OF THE CITY OF FORT COLLINS MAKING SUPPLEMENTAL APPROPRIATIONS IN THE COMMUNITY DEVELOPMENT BLOCK GRANT FUND WHEREAS, the City estimates it will receive in federal fiscal year 2022-2023 unanticipated revenue in the form of federal Community Development Block Grant (“CDBG”) funds from Housing and Urban Development (HUD) totaling $1,120,412; and WHEREAS, the City has also received unanticipated CDBG Program income in the amount of $79,461; and WHEREAS, this appropriation benefits the public health, safety and welfare of the residents of Fort Collins and serves the public purpose of providing affordable housing and human services for City residents; and WHEREAS, Article V, Section 9 of the City Charter permits the City Council, upon recommendation of the City Manager, to make a supplemental appropriation by ordinance at any time during the fiscal year, provided that the total amount of such supplemental appropriation, in combination with all previous appropriations for that fiscal year, do not exceed the current estimate of actual and anticipated revenues and all other funds to be received during the fiscal year; and WHEREAS, the Interim City Manager has recommended the appropriation described herein and determined that this appropriation is available and previously unappropriated from the Community Development Block Grant Fund and will not cause the total amount appropriated in the Community Development Block Grant Fund to exceed the current estimate of actual and anticipated revenues and all other funds to be received in this Fund during this fiscal year; and WHEREAS, Article V, Section 11 of the City Charter authorizes the City Council to designate in the ordinance when appropriating funds for a federal grant, that such appropriation shall not lapse at the end of the fiscal year in which the appropriation is made, but continue until the earlier of the expiration of the federal grant or the City’s expenditure of all funds received from such grant; and WHEREAS, the City Council wishes to designate the appropriation herein for the Community Development Block Grant Entitlement Program as an appropriation that shall not lapse until the earlier of the expiration of the grant or the City’s expenditure of all funds received from such grant; and WHEREAS, City Council has considered on the same date as second reading of this ordinance a resolution approving the allocation of these funds. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby makes and adopts the determinations and findings contained in the recitals set forth above. -2- Section 2. That there is hereby appropriated from new revenue or other funds from HUD in the Community Development Block Grant Fund, the sum of ONE MILLION ONE HUNDRED TWENTY THOUSAND FOUR HUNDRED TWELVE DOLLARS ($1,120,412), to be expended in the Community Development Block Grant Fund upon receipt thereof for federal fiscal year 2022-2023 Community Development Block Grant projects. Section 3. That there is hereby appropriated from new revenue or other funds from program income in the Community Development Block Grant Fund, the sum of SEVENTY-NINE THOUSAND FOUR HUNDRED SIXTY-ONE DOLLARS ($79,461), to be expended in the Community Development Block Grant Fund for approved Community Development Block Grant projects. Section 4. That the appropriation herein for the Community Development Block Grant Entitlement Program is hereby designated, as authorized in Article V, Section 11 of the City Charter, as an appropriation that shall not lapse at the end of this fiscal year but continue until the earlier of the expiration of the grant or the City’s expenditure of all funds received from such grant. Introduced, considered favorably on first reading, and ordered published this 7th day of June, A.D. 2022, and to be presented for final passage on the 21st day of June, A.D. 2022. Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 21st day of June, A.D. 2022. Mayor ATTEST: _______________________________ City Clerk -1- ORDINANCE NO. 069, 2022 OF THE COUNCIL OF THE CITY OF FORT COLLINS MAKING SUPPLEMENTAL APPROPRIATION IN THE HOME INVESTMENT PARTNERSHIPS GRANT FUND WHEREAS, the Home Investment Partnerships Program (the “HOME Program”) was authorized by the National Affordable Housing Act of 1990 to provide funds in the form of Participating Jurisdiction Grants for a variety of housing-related activities that would increase the supply of decent, safe, and affordable housing; and WHEREAS, on March 1, 1994, the City Council adopted Resolution 1994-092 authorizing the Mayor to submit to the Department of Housing and Urban Development (“HUD”) a notification of intent to participate in the HOME Program; and WHEREAS, on May 26, 1994, HUD designated the City as a Participating Jurisdiction in the HOME Program, allowing the City to receive an allocation of HOME Program funds as long as Congress re-authorizes and continues to fund the program; and WHEREAS, the City estimates it will receive in federal fiscal year 2022-2023 unanticipated revenue in the form of Home Investment Partnership Program (“HOME”) funds from Housing and Urban Development (HUD) totaling is $803,409; and WHEREAS, the City has also received unanticipated HOME Program income in the amount of $186,484; and WHEREAS, this appropriation benefits the public health, safety and welfare of the residents of Fort Collins and serves the public purpose of providing affordable housing for city residents; and WHEREAS, Article V, Section 9 of the City Charter permits the City Council, upon recommendation of the City Manager, to make a supplemental appropriation by ordinance at any time during the fiscal year, provided that the total amount of such supplemental appropriation, in combination with all previous appropriations for that fiscal year, do not exceed the current estimate of actual and anticipated revenues and all other funds to be received during the fiscal year; and WHEREAS, the Interim City Manager has recommended the appropriation described herein and determined that this appropriation is available and previously unappropriated from the Home Investment Partnerships Grant Fund and will not cause the total amount appropriated in the Home Investment Partnerships Grant Fund to exceed the current estimate of actual and anticipated revenues and all other funds to be received in this Fund during this fiscal year; and WHEREAS, Article V, Section 11 of the City Charter authorizes the City Council to designate in the ordinance when appropriating funds for a federal grant, that such appropriation shall not lapse at the end of the fiscal year in which the appropriation is made, but continue until the earlier of the expiration of the federal grant or the City’s expenditure of all funds received from such grant; and -2- WHEREAS, the City Council wishes to designate the appropriation herein for the Home Investment Partnerships Program as an appropriation that shall not lapse until the earlier of the expiration of the grant or the City’s expenditure of all funds received from such grant; and WHEREAS, City Council has considered on the same date as second reading of this ordinance a resolution approving the allocation of these funds. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby makes and adopts the determinations and findings contained in the recitals set forth above. Section 2. That there is hereby appropriated from new revenue or other funds from HUD in the HOME Investment Partnerships Grant Fund the sum of EIGHT HUNDRED THREE THOUSAND FOUR HUNDRED NINE DOLLARS ($803,409), to be expended in the HOME Investment Partnerships Grant Fund upon receipt from federal fiscal year 2022-2023 HOME Participating Jurisdiction Grant Funds. Section 3. That there is hereby appropriated from new revenue or other funds from program income in the HOME Investment Partnerships Grant Fund the sum of ONE HUNDRED EIGHTY-SIX THOUSAND FOUR HUNDRED EIGHTY-FOUR DOLLARS ($186,484), to be expended in the HOME Investment Partnerships Grant Fund for approved HOME Program projects. Section 4. That the appropriation herein for HOME Investment Partnerships Grant Entitlement Program is hereby designated, as authorized in Article V, Section 11 of the City Charter, as an appropriation that shall not lapse at the end of this fiscal year but continue until the earlier of the expiration of the grant or the City’s expenditure of all funds received from such grant. Introduced, considered favorably on first reading and ordered published this 7th day of June, A.D. 2022, and to be presented for final passage on the 21st day of June, A.D. 2022. Mayor ATTEST: City Clerk -3- Passed and adopted on final reading this 21st day of June, A.D. 2022. Mayor ATTEST: City Clerk