TO: Mayor and Members of City Council
THRU: Kelly Olivera, Assistant City Manager
Jeffery Yates, Assistant City Manager
FROM: Christopher Cauley, MPA, Director of Economic and Community Development
Kimberly Leonard, CLGBO, CLGFO, CPA, MPA, Budget & Evaluation Director
DATE: June 24, 2024
RE:
Title
Adoption of Special Revenue Fund Project Ordinances 2025-1, 2025-2, and 2025-3 for the funding of the Community Development Block Grant, HOME Investment Partnership Grant, and Housing Opportunities for Persons with AIDS FY 2024-2025 Programs
end
COUNCIL DISTRICT(S):
Council District(s)
All
b
Relationship To Strategic Plan:
Goal 2: Responsive City Government Supporting a Diverse and Viable Economy.
Strategic Objective 2.1: Ensure a diverse City tax base.
Strategic Objective 2.2: Community Revitalization- Invest in community places to ensure revitalization and increase the quality of life.
Strategic Objective 2.3: Leverage partnerships for job creation and retention, with a focus on the local and regional workforce to increase per capita income.
Strategic Objective 2.4: Economic Development: Sustain a favorable development climate to encourage business growth.
Goal 4: Desirable Place to Live, Work and Recreate
Strategic Objective 4.5: Neighborhood Vitality - Ensure a place for people to live in great neighborhoods.
Strategic Objective 4.6: Affordable Housing - Reduce poverty and homelessness.
Goal 6: Collaborative Citizen and Business Engagement.
Strategic Objective 6.2: Ensure trust and confidence in City government through transparency & high-quality customer service.
Strategic Objective 6.3: Inform and educate about local government by enhancing public outreach and increasing community dialog, collaboration and empowerment.
Executive Summary:
The City of Fayetteville is expected to be awarded three grants from the U.S. Department of Housing and Urban Development (HUD) for Fiscal Year 2024-2025. The Community Development Block Grant (CDBG), HOME Investment Partnership Grant (HOME), and Housing Opportunities for Persons with AIDS (HOPWA) will support activities identified in the Economic & Community Development Department’s proposed 2024-2025 Annual Action Plan as approved by City Council on April 22, 2024. Special Revenue Fund Project Ordinances 2025-1, 2025-2, and 2025-3 will appropriate the operating budgets for the CDBG, HOME, and HOPWA programs, including the anticipated Federal grant proceeds and program income. The HOME grant requires a local match from the City.
Background:
The proposed 2024-2025 Annual Action Plan, which outlined all activities and funding sources for CDBG, HOME, and HOPWA, was approved by Council on April 22, 2024. HUD posted allocations on their website for CDBG, HOME, and HOPWA funding.
The CDBG program will be funded by an anticipated grant from HUD in the amount of
$1,708,868, a decrease of $58,966 from last year, and anticipated program income of $82,394.
The HOME program will be funded by an anticipated grant from HUD in the amount of
$874,315, a decrease of $246,970 from last year, and anticipated program income of $226,059. The required local match from the City in the amount of $218,579 will be provided by a transfer from the General Fund.
The HOPWA program will be funded by an anticipated grant from HUD in the amount of $878,892, an increase of $18,180 from last year.
Issues/Analysis:
Per 24 CFR Part 570.200(h), the effective date of the HUD grant agreement is the program year start date or the date the annual action plan is approved by HUD, whichever is later. The City can begin to incur costs for grant funds at the start of the program year on July 1, 2024.
Budget Impact:
The required local match is provided by a transfer from the General Fund, and is included in the Fiscal Year 2024-2025 budget.
Options:
1.) Adopt Special Revenue Fund Project Ordinances 2025-1, 2025-2, and 2025-3.
2.) Do not adopt Special Revenue Fund Project Ordinances 2025-1, 2025-2, and 2025-3 and provide guidance to staff.
Recommended Action:
Staff recommends Council move to adopt Special Revenue Fund Project Ordinances
2025-1, 2025-2, and 2025-3.
Attachments:
• Special Revenue Fund Project Ordinance 2025-1 (CDBG)
• Special Revenue Fund Project Ordinance 2025-2 (HOME)
• Special Revenue Fund Project Ordinance 2025-3 (HOPWA)