TO: Mayor and Members of City Council
THRU: Kelly Olivera, Assistant City Manager
FROM: Christopher Cauley, MPA, Economic and Community Development Director
Albert A. Baker, Assistant Economic and Community Development Director
DATE: April 1, 2024
RE:
Title
2024-2025 Housing and Urban Development Annual Action Plan for Community Development Block Grant, HOME Investment Partnerships, and Housing Opportunities for People with HIV/AIDS 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: Invest in community places to ensure revitalization and increase quality of life.
Strategic Objective 2.3: Leverage partnerships for job creation and retention, with focus on local and regional workforce to increase per capita income.
Strategic Objective 2.4: Sustain a favorable development climate to encourage business growth.
Goal 4: Desirable Place to Live, Work and Recreate
Strategic Objective 4.5: Ensure a place for people to live in great neighborhoods.
Strategic Objective 4.6: 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:
Council is asked to review and consider the proposed Housing and Urban Development (HUD) Annual Action Plan (AAP) to implement the Community Development Block Grant (CDBG), the Home Investment Partnership (HOME), and the Housing Opportunities for People With HIV/Aids (HOPWA) Programs. 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 will be asked to adopt this AAP and amend the current year AAP at the April 22, 2024 regular Council Meeting.
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 YouTube 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:
The City’s CDBG allocation has not been announced by HUD and recommendations are held at the current funding level for 2024-2025 AAP. The City’s CDBG allocation for next year is $1,767,834, along with the HOME allocation of $1,121,285 and HOPWA allocation at $860,712. Once final HUD notification of grant awards is issued, minor adjustments will occur before City Council’s final approval. Program Income is anticipated in the amount of $308,453 and the City is required to match HOME in the amount of $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 |
|
Special Needs Strategy |
0 |
|
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. 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 the following categories and funding amounts.
• HOME: $600,000 @ 1% interest only per project, four (4) awards.
• HOME-ARP: $600,000 @ 1% interest only per project, four (4) awards.
• HOPWA: $200,000 @ 1% interest only per project, four (4) awards.
Each development is recommended for a conditional commitment of funds and 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 |
|
The Villas at Kenleigh |
District 5 |
$15,219,587 |
64 |
|
West Cumberland Phase II |
District 7 |
$10,927,468 |
48 |
|
The Villas at Cliffdale |
District 8 |
$11,500,789 |
48 |
|
Hudson Terrace |
District 4 |
$17,629,148 |
60 |
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 (CDBG) and $27,895 (HOME) 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 |
308,453 |
|
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 |
$4,784,966 |
Options:
Provide feedback regarding the proposed 2024-2025 Economic & Community Development Annual Action Plan.
Recommended Action:
This item is for information and discussion. Direct staff to any changes required prior to adoption.
Attachments:
Program Year 2024-2025 Competitive Award - Recommended
Program Year 2024-2025 Annual Action Plan Summary - Recommended
Program Year 2024-2025 Annual Action Plan Presentation - Recommended