TO: Mayor and Members of City Council
THRU: Kelly Olivera, Assistant City Manager
FROM: Christopher Cauley, MPA, Economic and Community Development Director, and
Albert A. Baker, Assistant Economic and Community Development Director
DATE: April 22, 2024
RE:
Title
Adoption of 2024-2025 Housing and Urban Development Annual Action Plan for Community Development Block Grant, HOME Investment Partnerships Program, and Housing Opportunities for People with HIV/AIDS and 2023-2024 Substantial Amendment
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 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 Housing and Urban Development (HUD) Annual Action Plan (AAP) to implement the Community Development Block Grant (CDBG), the Home Investment Partnership Program (HOME), and Housing Opportunities for People with HIV/AIDS (HOPWA). The AAP provides a concise summary of the actions, activities, and the specific federal resources that will be used each year to address the priority needs and specific goals identified by the Five-Year Consolidated Plan. The AAP is developed by staff and recommended by the Fayetteville Redevelopment Commission (FRC). Council was presented this plan at the April 1, 2024 Council Work Session.
Background:
The current Five-Year Consolidated Plan was adopted by City Council for the program year period from 2020 to 2024. The Consolidated Plan is designed to help states and local jurisdictions to assess their affordable housing and community development needs and market conditions, and to make data-driven, place-based investment decisions. The consolidated planning process serves as the framework for a community-wide dialogue to identify housing and community development priorities that align and focus funding from CDBG, HOME, and HOPWA.
The Annual Action Plan describes projects and activities that implement the Consolidated Plan. It sets forth a description of activities for the use of funds that are expected to become available in the upcoming fiscal year. The 2024-2025 AAP is based on priorities, goals, and objectives of the 2020-2024 Consolidated Plan. The plan contains goals, objectives, and implementation strategies for each of the activities to be funded or implemented.
To provide an opportunity for community feedback, four in-person meetings were held throughout the months of February and March. A press release, social media campaign, and public notices were used to promote awareness. A draft copy of the plan was made available online and in various locations throughout the City for review and comments for 30 days from Monday, February 12, 2024 through Friday, March 15, 2024.
Issues/Analysis:
HUD has not yet released the new allocations, so the City is planning for the same funding level as last year. Once the new allocations are announced, City Council will be asked to adopt the budget with the updated amounts. The City’s current year allocations are $1,767,834 for CDBG, $1,121,285 for HOME, and $860,712 for HOPWA. Program income is anticipated in the amount of $308,453 at the current allocation amount; and the City’s required HOME match is currently $280,322.
|
Consolidated Plan Strategy Allocations |
2024-2025 |
|
Economic Development Strategy |
$ 300,000 |
|
Community Development Strategy |
410,534 |
|
Housing Strategy |
2,948,078 |
|
Homeless Strategy |
172,000 |
|
Administration, Planning, and Management Strategy |
507,994 |
|
Total New Resources |
$4,338,606 |
Four Low Income Housing Tax Credit projects were submitted for gap financing. Only two moved forward after the North Carolina Housing Finance Agency performed its initial review. This is a competitive process and only one or two developments will be awarded tax credits. Each development is recommended for a conditional commitment of funds. The details of each development can be found on the table below:
|
Project Name |
Total Development Cost |
Request |
Number of Units |
|
West Cumberland (Phase II) |
$10,927,468 |
$1,000,000 |
48 |
|
The Villas at Kenleigh |
$15,219,587 |
$1,158,112 |
64 |
Budget Impact:
The HOME Investment Partnership Grant requires a 25% match in the amount of $280,322. Additionally, the grant reimburses the City approximately $73,073 from CDBG funds and $27,895 from HOME funds through the annually prepared cost allocation plan for the cost of internal service support.
|
2024-2025 Funding Sources |
|
|
Community Development Block Grant (CDBG) |
$1,767,834 |
|
CDBG Program Income |
82,394 |
|
HOME Investment Partnership (HOME) |
1,121,285 |
|
HOME Program Income |
226,059 |
|
HOME Local Match |
280,322 |
|
Housing Opportunities for People With HIV/Aids (HOPWA) |
860,712 |
|
Total |
$4,338,606 |
|
|
|
|
2023-2024 Prior Year Funds |
|
|
CDBG Prior Year Funds |
$ 446,360 |
|
Total Prior Year |
$ 446,360 |
Options:
1. Conduct a public hearing and approve the proposed Housing and Urban Development Annual Action Plan and Substantial Amendment.
2. Conduct a public hearing and do not approve the proposed Housing and Urban Development Annual Action Plan and Substantial Amendment.
3. Do not conduct a public hearing and do not approve the proposed Housing and Urban Development Annual Action Plan and Substantial Amendment.
Recommended Action:
Staff recommends that Council moves to conduct a public hearing and approve the proposed Housing and Urban Development Annual Action Plan and Substantial Amendment.
Attachments:
Program Year 2024-2025 Competitive Award - Proposed
Program Year 2024-2025 Annual Action Plan Summary - Proposed
Program Year 2024-2025 Annual Action Plan Presentation - Proposed