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: August 12, 2024
RE:
Title
Adoption of the Substantial Amendments to the Housing and Urban Development 2020 - 2024 Consolidated Plan and the 2024 - 2025 Annual Action 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 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) 2020 - 2024 Consolidated Plan and the 2024 - 2025 Annual Action Plan (AAP). Council adopted the 2024 Annual Action Plan at the April 22, 2024, Council Regular Meeting. Since that time, City Council has authorized an expansion of the City’s down payment assistance program that requires a change in funding source and the City has been notified of an additional annual grant allocation for the Emergency Solutions Grants (ESG) program. The change in funding source and new grant require the City to amend both the five-year Consolidated Plan and one-year AAP.
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 five-year plan includes all anticipated sources of income and proposed strategies and programs. The Consolidated Plan is carried out through Annual Action Plans, which provide a concise summary of the actions, activities, and the specific federal and non-federal resources that will be used each year to address the priority needs and specific goals identified by the Consolidated Plan.
On May 7, 2024, following the adoption of the HUD 2024 - 2025 Annual Action Plan by City Council, the City received notice from HUD of an additional annual entitlement of $155,374 for services under ESG. The addition of a new entitlement requires the City to amend its Consolidated Plan and AAP to accept and program the funds awarded under the ESG program.
In addition to the ESG funding, an amendment to the AAP is required to fund the City’s new Homebuyer HERO program in the amount of $200,000. This funding is being reduced from the HOME Affordable Housing Development activity leaving a new budget of $1,031,522.
Issues/Analysis:
The addition of a new entitlement requires the City to amend its Consolidated Plan and AAP to accept and program the funds awarded under the ESG program. ESG funds may be used for five program components along with administration. Program components are street outreach, emergency shelter, homelessness prevention, rapid re-housing assistance, and Homeless Management Information System as set forth in 24 CFR §576.100 - 107. Any funding consideration shall be done after consultation with Fayetteville Cumberland County Continuum of Care (COC).
To provide an opportunity for community feedback from the COC, community partners, and the general public, the City conducted a survey and posted a public notice and received comments on the Substantial Amendment for 30 days from Wednesday, June 26, 2024, through July 29, 2024. Recommendations were developed for funding based upon the survey and any comments submitted to the City.
Budget Impact:
The City’s current year allocations are $1,708,868 for CDBG, $874,315 for HOME, $878,892 for HOPWA, and now $155,374 for ESG. Program income is anticipated in the amount of $308,453 and the City’s required HOME match is $218,579. The addition of the ESG allows the City $155,374 to assist in funding responses that offer solutions or preventions to homelessness. The movement of $200,000 in HOME Partnership funds for HOME Affordable Housing Development activity to initiate a HOME Homebuyer Assistance program allows for a downpayment assistance program without a match requirement from applicants.
Options:
1. Conduct a public hearing and approve the Substantial Amendments to the Housing and Urban Development 2020 - 2024 Consolidated Plan and the 2024 - 2025 Annual Action Plan.
2. Conduct a public hearing and do not approve the Substantial Amendments to the Housing and Urban Development 2020 - 2024 Consolidated Plan and the 2024 - 2025 Annual Action Plan.
3. Do not conduct a public hearing and do not approve the Substantial Amendments to the Housing and Urban Development 2020 - 2024 Consolidated Plan and the 2024 - 2025 Annual Action Plan.
Recommended Action:
Conduct a public hearing and approve the Substantial Amendments to the Housing and Urban Development 2020 - 2024 Consolidated Plan and the 2024 - 2025 Annual Action Plan.
Attachments:
Presentation - Amendment to HUD 2020-2024 Consolidated Plan and 2024-2025 Annual Action Plan