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LTC 221-2017 CDBG - HOME Fund Allocations for FY 1718MIAMIBEACH OFFICE OF THE CITY MANAGER NO. LTC # 221-2017 LETTER TO COMMISSION TO: Mayor Philip Levine and Members of t - City Co ission FROM: Jimmy L. Morales, City Manager DATE: May 2, 2017 SUBJECT: CDBG/HOME Fund Allocations for F 17/18 The purpose of this Letter to Commission is to transmit the proposed allocations and distributions of Community Development Block Grant (CDBG) and HOME Investment Partnership (HOME) funds for FY 17/18. The City is an entitlement jurisdiction for Federal funds from the U.S. Department of Housing and Urban Development (HUD). The City's Federal allocation for these funds has been decreasing steadily over time and is projected to be about $1.2 million next year. Typically, the City issues a Request For Proposals (RFP) to solicit projects to be funded by its allocation. However, as you may recall, the City had asked HUD to consider accepting a reduction in the City's annual allocation as a means of repaying funds that has been subject to recapture due to non-compliance issues that arose from the previous City Administration's handling of these funds. HUD has yet to issue its response to the City's request. In light of repayment request and the general uncertainty regarding the future of these funds under the cufrent Federal administration, the City Commission approved a resolution at its April 26th meeting enabling the Administration to select other HUD -approved means of allocating its CDBG and HOME funds to ensure compliance. While HUD has not apprised the City regarding the status of its request to use future allocation funds and the City will not know its actual Federal allocation, if any, until July at the earliest, the City is still obligated to submit an Annual Plan delineating its proposed use of funds to HUD by August 16, 2017. This deadline is prescribed by Federal regulation and encompasses a public participation process and review of the proposed Action Plan by HUD prior to its implementation. As you may recall, the City Commission approved a resolution at its April 26th meeting providing the Administration additional methods to determine the allocation of CDBG and HOME funds other than an RFP. The Administration sought these alternatives so as to avoid the issuance of an RFP that could have been deemed fruitless if HUD subsequently approved the City's request for repayment of outstanding funds through a reduction in its allocation. (The Administration did not want to risk the possibility that proposers incurred expenses to submit a proposal under the RFP and subsequently decline their requests because Federal funds were withdrawn.) One of the approved methods for distribution is to award funds to previously -funded sub- recipients to provide services and activities that comply with the City's Consolidated Plan. Given the uncertainty as to the City's allocation and balancing the HUD requirement that an Action Plan be filed, the Administration would like to propose submitting to HUD the funding distribution delineated below: AGENCY—PROJECT AMOUNT AGENCY—PROJECT AMOUNT CDBG PROGRAM - $792,963 (Estimated Entitlement) Rehabilitation/Preservation Activities and Public Facilities $195,426 $320,000 $158,592 Public Services $66,000 $11,500 $21,444 $15,000 $5,000 City of Miami Beach — Madeleine Village Apartments Renovation and Tenant Relocation City of Miami Beach — Neptune Apartments Renovation and Tenant Relocation Other Eligible Activities City of Miami Beach Community Services - Emergency Services City of Miami Beach Homeless Outreach Team — Emergency School Supplies & Family Group Counseling,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, Boys and Girls Club of Miami -Dade — Aftercare/Summer Camp Little Havana Activity and Nutrition Centers of Dade -County, Inc. — Rainbow Intergenerational Child Care UNIDAD of Miami -Beach — Project LINK Cltyof Miami Beach Office of Housing and Community Services - CDBG Program Administration Total FY 20172018 CDBG Funds - Non -Public Services $674,018 Total FY 2017-2018 CDBG Funds — Public Services $118,944 HOME PROGRAM—$421,930 (Estimated Allocation) Other Eligible Activities $42,193 Capital Projects $63,289 $316,448 City of Miami Beach Office of Housing and Community Services - HOME Program Administration CHDO Project Set -Aside (TBA) City of Miami Beach —Madeleine Village Apartments Rehabilitation Total FY 2017-2018 HOME Funds — Other $42,193 Total FY 2017-2018 HOME Funds — Capital Projects $379,737 The proposed distribution was prioritized by staff as follows: • Capital funding is prioritized for the rehabilitation of City -owned affordable, residential properties that have substantial needs to ensure safe, sanitary housing as required under HUD rules. • Community Housing Development Organization (CHDO) funds are being deferred as there are no eligible CHDO projects within the City at this time. • CDBG Public Services funds are being proposed for award to the highest performing, fully compliant past sub -recipients with the condition that these funds are contingent upon award and selected because each addresses a priority population (elderly, youth, homeless and families at risk of homelessness) in the Consolidated Plan ensuring that HUD funds are leveraged to the highest number of beneficiaries possible. The mandatory public comment period for the FY 17/18 Action Plan commences May 5, 2017 and continues until June 5, 2017. The Administration will seek ratification of the Plari at the June 7th City Commission meeting. Please note that, given the current issues with the Federal budget process, the City does not expect to know its actual allocation until after the Commission meeting. Therefore, the Administration will seek authorization to reduce the awarded allocations proportionally to the value of the City's allocation. If you have any questions, please feel free to contact Maria Ruiz, Director, Office of Housing and Community Services. JLM/KGB/MLR