TO: Mayor and Members of City Council
THRU: Kelly Strickland, Assistant City Manager
FROM: Christopher Cauley, MPA, Economic and Community Development Director, and
Albert A. Baker, Assistant Economic and Community Development Director
DATE: March 24, 2025
RE:
Title
Public Hearing on and Subsequent Adoption of the Substantial Amendments to the Housing and Urban Development 2022 - 2023 and the 2024 - 2025 Annual Action Plans
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 on the proposed Substantial Amendments to the Department of Housing and Urban Development (HUD) 2022 - 2023 and the 2024 - 2025 Annual Action Plans (AAP). Council adopted the 2022 Annual Action Plan at the May 2, 2022, Council Regular Meeting and the 2024 Annual Action Plan at the April 22, 2024, Council Regular Meeting. Since that time, the Project Sponsor, Dogwood Health Care with the Robeson County Health Department, with projected budget expenditures and current demand, projects without additional funding in the Tenant-Based Rental Assistance (TBRA) Program under Housing and Support Services potential new clients of the Housing Opportunities for Persons with AIDS (HOPWA) program will have to be waitlisted.
Background:
City Council adopted the 2022 HUD Annual Action Plan allocating $400,000 of HOPWA funds for TBRA and $200,000 for Housing Development (Housing Trust Fund). Similarly, City Council adopted the 2024 HUD Annual Action Plan allocating $652,526 of HOPWA funds for Housing and Support Services and $200,000 for Housing Development.
Staff has attempted to utilize HOPWA funds to develop more income restricted units in our community but have not been successful at investing those funds. After attending HOPWA training, staff has determined that this is not an effective use for these funds and that they are needed as Housing and Support Services to enable our Project Sponsor to be fully funded for the remainder of this Fiscal Year.
Issues/Analysis:
Last Fiscal Year the City asked HUD to allow for a local adjustment to the Fair Market Rents due to the impact of military housing allowances on rent. Additionally, the Project Sponsor joined the Continuum of Care on homelessness and has been working with local agencies resulting in increases in service demand. At this time staff is projecting that the Project Sponsor will fully expend the current funding allocation prior to the end of the Fiscal Year.
Budget Impact:
There is no impact to the General Fund as these funds are Federal Entitlement funds from the Department of Housing and Urban Development.
Options:
1. Conduct a public hearing and approve the Substantial Amendments to the Housing and Urban Development 2022 - 2023 and 2024 - 2025 Annual Action Plans.
2. Conduct a public hearing and do not approve the Substantial Amendments to the Housing and Urban Development 2022 - 2023 and 2024 - 2025 Annual Action Plans.
3. Do not conduct a public hearing and do not approve the Substantial Amendments to the Housing and Urban Development 2022 - 2023 and 2024 - 2025 Annual Action Plans.
Recommended Action:
Staff recommends Council conduct a public hearing and approve the Substantial Amendments to the Housing and Urban Development 2022 - 2023 and 2024 - 2025 Annual Action Plans.
Attachments:
Presentation - Substantial Amendments to 2022 - 2023 and 2024 - 2025 Annual Action Plans