TO: Mayor and Members of City Council
THRU: Kelly Strickland, Assistant City Manager
FROM: Christopher Cauley, MPA, Economic and Community Development Director
Albert Baker, Assistant ECD Director
DATE: April 28, 2025
RE:
Title
Adoption of 2025-2029 Housing and Urban Development (HUD) Consolidated Plan, 2025-2026 Annual Action Plan for Community Development Block Grant, HOME Investment Partnerships Program, Emergency Solutions Grants, and Housing Opportunities for People with HIV/AIDS, and updated Citizen Participation Plan
end
COUNCIL DISTRICT(S):
Council District(s)
All
b
Relationship To Strategic Plan:
Goal 2: Responsive City Government Supporting a Diverse and Viable Economy
Goal 3: City Investment in Today and Tomorrow
Goal 4: Desirable Place to Live, Work and Recreate
Goal 6: Collaborative Citizen and Business Engagement
Executive Summary:
Council is asked to conduct a public hearing and approve the proposed 2025-2029 U.S. Department of Housing and Urban Development (HUD) Five-Year Consolidated Plan and Annual Action Plan (AAP), which guide the implementation of the Community Development Block Grant (CDBG), the Home Investment Partnerships Program (HOME), the Emergency Solutions Grants (ESG), and the Housing Opportunities for Persons With AIDS (HOPWA) programs. These plans, developed through extensive community outreach, outline priority needs, funding allocations, and key actions to address economic and community development goals. Staff developed the plans with recommendations from the Fayetteville Redevelopment Commission (FRC), following the Citizen Participation Plan.
Background:
Every five years, the City must update its Consolidated Plan for the HUD’s Community Planning and Development (CPD) formula block grant programs: CDBG, HOME, ESG, and HOPWA. The Consolidated Plan helps local jurisdictions assess affordable housing and community development needs, evaluate market conditions, and make data-driven, place-based investment decisions. This planning process provides a framework for community-wide dialogue to identify and prioritize housing and development goals. The proposed 2025-2029 Consolidated Plan reflects the City’s current needs, informed by extensive community outreach.
The City is required to prepare an Annual Action Plan each year to align with the goals and objectives of the Consolidated Plan. This plan outlines specific projects, activities, and funding allocations for the upcoming fiscal year, detailing how available federal and non-federal resources will be used to address economic and community development goals. The Consolidated Plan is implemented through these Annual Action Plans, which provide a clear summary of actions and strategies to support the City’s priorities.
The City has updated the Citizen Participation Plan to guide the process for engaging residents in community-wide discussions. The plan’s primary goal is to ensure that those most affected by HUD CPD formula block grant programs, particularly low- and moderate-income residents of Fayetteville, have the opportunity to participate in an advisory role. This includes involvement in the planning, implementation, and assessment of programs and projects funded through CPD resources.
To ensure community involvement in developing the 2025-2029 Consolidated Plan and 2025-2026 Annual Action Plan, staff held four citizen participation meetings across various neighborhoods to encourage full engagement. Additionally, staff collaborated with local agencies and city stakeholders to assess needs, gather feedback, and discuss priorities. To support this effort, Civitas, LLC was contracted by the Economic & Community Development Department to conduct the market analysis, needs assessment, and update the Citizen Participation Plan.
A draft of the plan was made available for public review and comment from February 12 through March 14, 2025, at various locations and online. Comments were also accepted via email at econcommdev@fayettevillenc.gov during the 30-day comment period. A presentation of the proposed budget and activities was shared at public meetings for citizen input. The Fayetteville Redevelopment Commission (FRC) held a public meeting on March 19, 2025. The FRC reviewed the plans and formally voted in support of them on March 19, 2025. Council was presented this plan at the April 7, 2025 Council Work Session for feedback before the final consideration at the April 28, 2025, public hearing during the City Council meeting.
Issues/Analysis:
Through the Consolidated Planning efforts described above, the City has identified eight (8) priority needs and associated goals to address these needs. Over the 5-Year plan period, the City will work to accomplish the following outcomes, which are listed by Priority Need.
Priority Need: Affordable Housing Goal - 1
Expand access to affordable housing by supporting the development, preservation, and rehabilitation of housing units for low- to moderate-income households. The City will collaborate with stakeholders to increase housing stability and improve affordability through strategic investments and housing programs.
Priority Need: Public Services Goal - 2
Provide public supportive services that address the needs of low- to moderate-income individuals in the City. The City will also support special needs groups with programs that provide vital services that offset basic costs such health services and food programs for the elderly and persons with a disability.
Priority Need: Neighborhood Revitalization Goal - 3
3A Improve Public Facilities and Infrastructure
Upgrade and expand public facilities and infrastructure in low- and moderate-income areas to enhance community accessibility, safety, and quality of life.
3B Blight Removal
Support efforts to eliminate slum and blight conditions within the City by improving deteriorated properties, addressing unsafe structures, and revitalizing neglected areas to enhance community safety and livability.
Priority Need: Economic Development Goal - 4
Promote economic growth by supporting initiatives that create job opportunities, enhance workforce development, and assist small businesses, particularly those benefiting low- to moderate-income individuals and underserved communities.
Priority Need: Nonprofit Capacity Building Goal - 5
Enhance the capacity of nonprofit organizations to effectively deliver essential services by providing technical assistance, funding opportunities, and organizational support. Strengthening local nonprofits will improve service delivery to low- to moderate-income individuals and other vulnerable populations.
Priority Need: Addressing Homelessness Goal - 6
Support programs that provide housing and essential services for individuals and families experiencing homelessness. Efforts will focus on emergency shelter, transitional housing, permanent supportive housing, and case management to promote stability and self-sufficiency.
Priority Need: Housing & Supportive Services for HIV/AIDS Goal - 7
Increase housing stability and access to supportive services for individuals and families affected by HIV/AIDS. Programs will focus on providing affordable housing options, case management, and essential healthcare services to enhance quality of life and promote long-term stability.
Priority Need: Effective Program Administration Goal - 8
Effective program management will include general administration of HUD grant programs, monitoring subrecipients, and keeping strict grant-based accounting. Comprehensive planning requirements will include the development of AAPs, an evaluation of the performance of the programs through annual reports, and meeting citizen participation requirements.
|
Consolidated Plan Strategy Allocations |
2025-2026 |
2026-2029* |
|
Affordable Housing |
$1,478,507 |
$5,914,028 |
|
Public Services |
263,000 |
1,052,000 |
|
Neighborhood Revitalization |
435,095 |
1,740,380 |
|
Economic Development |
300,000 |
1,200,000 |
|
Nonprofit Capacity Building |
105,000 |
420,000 |
|
Addressing Homelessness |
143,721 |
574,884 |
|
Housing & Supportive Services for HIV/AIDS |
852,526 |
3,410,104 |
|
Effective Program Administration |
476,223 |
1,904,892 |
|
Total New Resources |
$4,054,072 |
$16,216,288 |
|
* The amount in 2026-2029 is 4x the annual allocation. |
The City has not yet received an award notice from HUD, and so the plans use the current level of funding. Currently, the CDBG allocation projected for next year is $1,708,868. The HOME allocation projected for next year is $874,315. ESG allocation is projected at $155,374 and finally, the projected allocation for HOPWA is $878,892. If allocations are announced prior to the Public Hearing or Budget Adoption, staff will adjust the amounts accordingly. If they are announced after the start of the new Fiscal Year, staff will return with a budget amendment. Additionally, $218,044 is projected to be received in Program Income from business loans and affordable housing loans.
Three Low Income Housing Tax Credit projects were submitted for gap financing. This is a competitive process with one or two projects being awarded tax credits from the North Carolina Housing Finance Agency (NCHFA). The City of Fayetteville’s funds are allocated based on the development’s structure that meets the program guidelines for
HOME funding in the amount of $600,000 @ 1% interest only per project.
Each development is recommended for a conditional commitment of funds and the official City Council action will take place upon award notification from NCHFA. The details of each development can be found on the table below:
|
Project Name |
Council District |
Total Development Cost |
Number of Units |
|
Rosselle Commons |
District 2 |
$16,458,934 |
60 |
|
Hidden Grove |
District 7 |
$16,103,921 |
57 |
|
Aspen Pointe |
District 8 |
$15,102,458 |
48 |
Budget Impact:
The HOME Investment Partnerships Grant requires a matching contribution of $218,579. The Emergency Solutions Grant (ESG) also requires a 50/50 match, which is primarily passed on to subrecipients of ESG funds. Additionally, ESG administration requires an $11,653 match, which will be met through expenses allocated to support the Homeless Management Information System (HMIS). These expenses include payments to the HMIS software vendor and the HMIS Data Analyst employed by Cumberland County. The estimated annual General Fund expenses for HMIS support are $56,000. The CDBG and HOME grants also pay for City services through the annual cost allocation plan and is estimated to pay the General Fund $83,230 for next Fiscal Year.
Options:
1. Conduct a public hearing and approve the proposed 2025-2029 HUD Five-Year Consolidated Plan, 2025-2026 Annual Action Plan, and the updated Citizen Participation Plan.
2. Conduct a public hearing and do not approve the proposed 2025-2029 HUD Five-Year Consolidated Plan, 2025-2026 Annual Action Plan, and the updated Citizen Participation Plan.
3. Do not conduct a public hearing and do not approve the proposed 2025-2029 HUD Five-Year Consolidated Plan, 2025-2026 Annual Action Plan, and the updated Citizen Participation Plan.
Recommended Action:
Staff recommends that Council moves to conduct a public hearing and approve the proposed 2025-2029 HUD Five-Year Consolidated Plan, 2025-2026 Annual Action Plan, and the updated Citizen Participation Plan.
Attachments:
2025-2029 Consolidated Plan DRAFT
Program Year 2025-2026 Competitive Award - Proposed
Program Year 2025-2026 Annual Action Plan Summary - Proposed
Program Year 2025-2026 Annual Action Plan Presentation - Proposed
Citizen Participation Plan 2025 DRAFT