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2016-29316 Reso RESOLUTION NO. 2016-29316 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE CITY MANAGER TO TAKE THE FOLLOWING ACTIONS: (1) RECAPTURE $188,873.37 OF COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDS, WHICH CDBG FUNDS WERE PREVIOUSLY ALLOCATED PURSUANT TO THE ACTION PLANS FOR FISCAL YEARS FROM 2009 THROUGH 2011, ACTION PLANS FOR FISCAL YEARS FROM 2013 THROUGH 2015, AND THE FY 2013 THROUGH 2017 CONSOLIDATED PLAN; AND REALLOCATE SAID CDBG FUNDS, AS FOLLOWS: (a) $16,434.45 TO HOMELESS SERVICES AND (b) $172,438.92 TO A CAPITAL PROJECT; (2) REASSIGN $25,000 FROM FY15/16 CDBG FUNDS TO THE CITY FOR HOMELESS SERVICES; AND (3) REALLOCATE $73,577.24 OF CDBG FUNDS PREVIOUSLY ALLOCATED FROM FY 2011/2012 TO FY 2014/2015; AUTHORIZING THE CITY MANAGER TO SUBMIT THE REQUISITE REVISED ACTION PLANS AND CONSOLIDATED PLAN TO • HUD; AND AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AGREEMENTS FOR SUB-RECIPIENTS; AND FURTHER AUTHORIZING THE CITY MANAGER TO EXECUTE CITY INTERDEPARTMENTAL AGREEMENTS. WHEREAS, the City is an entitlement recipient of HUD formula grant programs as follows: Community Development Block Grant (CDBG) fund, and HOME Investments Partnership (HOME) funds; and WHEREAS, CDBG funds are used to provide vital public services, housing activities, and improvement to public facilities and HOME funds are used for affordable housing activities including multi-family rentals; and WHEREAS, the Action Plan for federal funds is a requirement under HUD's formula grant programs, which include the CDBG and HOME program's; and WHEREAS, CDBG and HOME stipulate that funds be expended within guidelines as delineated in 24 CFR Part 570 and 24 CFR Part 92, among others; and WHEREAS, the following CDBG funds remain unspent and need to be reallocated: A. Jewish Community Services of South Florida was awarded CDBG funding, in the amount of $541,296.00, from six different fiscal years to support the rehabilitation of the Miami Beach Senior Center located at 610 Espanola Way; B. CDBG funding, in the amount of $28,785.50, remain unspent from (FY 2009/2010, 2010/2011, 2011/2012, and 2013/2014) since the Miami Beach Senior Center was finalized in July 2015; C. the grant award from last year's funding (FY 2014/2015), in the amount of $54,500, which provided additional scope to the rehabilitation project, was declined by Jewish Community Services in October of 2015; D. the Jewish Community Services was unable to expend $3,188.53 from FY 2014/2015 funds awarded to support its case management activities; E, Get Credit Healthy received CDBG funding in FY 2014/2015 to provide credit counseling services to low-income and moderate-income residents of the City and was unable to expend $19,587.97 of its award; F. Teen Job Corps received CDBG funding in FY 2014/2015 to provide employment for low-income youth and was unable to expend $482.76 of its award; G. the City's Office of Community Services received funding in FY 2014/2015 to provide emergency services including rent and utility assistance to low-income and moderate-income households and was unable to expend $2,828.33 of its award; H. Boys and Girls Club of Miami-Dade f/k/a Boys and Girls Clubs of Miami received funding in FY 2007/2008 to support the construction of its Miami Beach youth center located at 1200 Meridian Avenue, and although the project is still ongoing, the agency was unable to expend $764.55 of its award in a timely manner; I. Miami Beach Community Development Corporation (MBCDC) received funding in FY 2007/2008 to support the rehabilitation of the Meridian Apartments, a 34-unit building and was unable to expend $6,989.40 of its award in a timely manner; J. administrative funds, in the amount of $70,717.12, remained unspent at the end of FY 2014/2015; and K. there is a balance of $894.17 of unspecified CDBG funds that remain unspent from previous fiscal years; and WHEREAS, in order to comply with the HUD rules and regulations, the Administration recommends the recapture of all the remaining unspent funds; and WHEREAS, the administration recommends the reallocation of the CDBG funds, as follows: A. $16,434.45 from FY 2014/2015 to provide for the temporary employment of homeless by its Homeless Outreach Team; and R. $172,438.92 to a capital project of the Office of Housing and Community Development, a Division of the Office of Housing and Community Services; and WHEREAS, Jewish Community Services of South Florida rejected $25,000 in FY 2015/2016 CDBG funds for the provision of case management services including homeless outreach, and the administration recommends reassigning said funds to the City's Homeless 9 9 Y Outreach Team to satisfy the unmet needs of the City's homeless and comply with the goals established in the Action Plan; and WHEREAS, pursuant to Resolution No. 2014-28877, the Mayor and City Commission authorized the City Manager to reallocate $73,577.24 of FY 2011/2012 CDBG funds for the acquisition of multiple residential buildings from the Miami Beach Community Development Corporation (MBCDC); however, the Administration recommends correcting said reallocation to reflect a FY 2014/2015 relocation, and the $73,577.24 to be taken from FY 2014/2015; and WHEREAS, as per the Citizen Participation Plan, a change of use triggers a Substantial Amendment; and WHEREAS, the resulting CDBG funds recapture recommendations will be incorporated into FY 2009 through 2011 and FY 2013 through 2015 City Action Plans and the 2013 through 2017 Consolidated Plan; and WHEREAS, the City provided a thirty (30) day public comment period from December 24, 2015 to January 23, 2016 and a public meeting on January 19, 2016 to comment on the proposed Substantial Amendment to the Action Plans and the Consolidated Plan; and WHEREAS, the City Manager is the designated agent for all HUD formula grants, and executes the grant applications, grant agreements, and other applicable HUD documents on , behalf of the City. NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission of the City Of Miami Beach hereby approve and authorize the City Manager to take the following actions: (1) recapture $188,873.37 of Community Development Block Grant (CDBG) funds, which CDBG funds were previously allocated pursuant to the Action Plans for Fiscal Years from 2009 through 2011, Action Plans for Fiscal Years from 2013 through 2015, and the FY 2013 through 2017 Consolidated Plan; and reallocate said CDBG funds, as follows: (a) $16,434.45 to homeless services and (b) $172,438.92 to a capital project; (2) reassign $25,000 from FY15/16 CDBG funds to the City for homeless services; and (3) reallocate $73,577.24 of CDBG funds previously allocated from FY 2011/2012 to FY 2014/2015; authorize the City Manager to submit the requisite revised Action Plans and Consolidated Plan to HUD; and authorize the Mayor and City Clerk to execute agreements for sub-recipients; and further authorize the City Manager to execute ity interdepartmental agreements. PASSED AND ADOPTED this 9 da of T9rck , 2016. ATTEST: ■ B E.� ���i -' * /V 17 'SC"-.'..• ...•./5°% ,.° '' / ''''/' 1' ' _ %��- �'.�'.rMME... ' '"";.IA CITY LERK 0 , ,,fEp: ,_ , -, • 0 * Nog,. i ; ��s,. >f ;:,vim o, ,7-. ;'�i, APPROVED AS TO �, 7 '.. •�,r FORM & LANGUAGE ITC�..� (19O,�F & FOR XE UTION %%wa •� City Attorney - Date COMMISSION ITEM SUMMARY Condensed Title: A RESOLUTION APPROVING AND AUTHORIZING THE CITY MANAGER TO TAKE THE FOLLOWING ACTIONS: (1) RECAPTURE $188,873.37 OF COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDS, WHICH CDBG FUNDS WERE PREVIOUSLY ALLOCATED PURSUANT TO THE ACTION PLANS FOR FISCAL YEARS FROM 2009 THROUGH 2011,ACTION PLANS FOR FISCAL YEARS FROM 2013 THROUGH 2015,AND the FY 2013 THROUGH 2017 CONSOLIDATED PLAN; AND REALLOCATE SAID CDBG FUNDS, AS FOLLOWS: (a) $16,434.45 TO HOMELESS SERVICES AND (b) $172,438.92 TO A CAPITAL PROJECT; (2) REASSIGN $25,000 FROM FY15/16 CDBG FUNDS TO THE CITY FOR HOMELESS SERVICES; AND(3) REALLOCATE$73,577.24 OF CDBG FUNDS PREVIOUSLY ALLOCATED FROM FY 2011/2012 TO FY 2014/2015; AUTHORIZING CITY MANAGER TO SUBMIT THE REQUISITE REVISED ACTION PLANS AND CONSOLIDATED PLAN TO HUD;AND AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AGREEMENTS FOR SUB-RECIPIENTS;AND FURTHER AUTHORIZING THE CITY MANAGER TO EXECUTE CITY INTERDEPARTMENTAL AGREEMENTS. Key Intended Outcome Supported: N/A Supporting Data(Surveys, Environmental Scan, etc.): Item Summary/Recommendation: The City is a U.S.Department of Housing and Urban Development(HUD)-designated entitlement community receiving an annual allocation of funding through the Community Development Block Grant (CDBG) and HOME Investments Partnership (HOME) programs. At the end of FY 14/15, $188,873.37 of CDBG funds were left unspent. The City is seeking to recapture and reallocate those funds to comply with expenditure and timeliness guidelines. The City awarded $25,000 in FY 15/16 to Jewish Community Services of South Florida (JCS) to provide case management services including homeless outreach.JCS declined the funding after the Action Plan was submitted but prior to contract execution.Staff is seeking authorization to reassign the$25,000 to the City's Homeless Outreach Team to engage homeless with needed services so as to meet the objectives delineated in the City's Action Plan. The Commission previously approved the reallocation of$73,577.24 of CDBG funds from FY 11/12. However,the funds were reallocated from FY 14/15. Staff seeks this amendment to match the amendment reported to HUD. These recaptures trigger the amendment of the Action Plans for FY09- FY11 and FY13- FY15 and the substantial amendment of the FY13-17 Consolidated Plan which will be completed by staff upon approval by the Mayor and Commission. This item was deferred to address an inquiry raised by Commissioner Kristen Rosen Gonzalez at the February 10, 2016 City Commission meeting regarding the possible use of CDBG funds to provide rent subsidies for the tenants of the Allen Apartments. Letter to Commission#077-2016 addressed this request and provided the regulations that prevent the City from using CDBG funds to provide rent subsidies. Advisory Board Recommendation: N/A Financial Information: Source of Amount Account Funds: 1 $188,873.37 132-5465-000345, 133-5449-000346, 134-5449-000346, 135-5449- 000346, 130-5449-000345, 132-5447-000345, 132-5191-000312, 132- 5471-000345, 132-1931-000343, 131-5473-000346, 131-5665-000346, 132-1931-0, 132-1931-000349, 132-5449-000346 2 $25,000.00 137-5191-000312 3 $73,577.24 135-5612-000346 OBPI Total $287,450.61 Financial Impact Summary: City Clerk's Office Legislative Tracking: Maria L. Ruiz, Housing &Community Services Sign-Offs: Departm t Direct Assistant City Manager City Manager ML ` aitmA KGB JLM MIAAAIBEACH AGED Elf R7C3 DATE MIAMIBEACH City of Miami Beach, 1700 Convention Center Drive,Miami Beach, Florida 33139,www.miamibeachfl.gov C•MMISSI 7 N MEMORANDUM TO: Philip Levine and Members of the Cit4 Commissi. FROM: Jimmy L. Morales, City Manager 1 DATE: March 9, 2016 SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE CITY MANAGER TO TAKE THE FOLLOWING ACTIONS: (1) RECAPTURE $188,873.37 OF COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDS, WHICH CDBG FUNDS WERE PREVIOUSLY ALLOCATED PURSUANT TO THE ACTION PLANS FOR FISCAL YEARS FROM 2009 THROUGH 2011, ACTION PLANS FOR FISCAL YEARS FROM 2013 THROUGH 2015, AND the FY 2013 THROUGH 2017 CONSOLIDATED PLAN; AND REALLOCATE SAID CDBG FUNDS, AS FOLLOWS: (a) $16,434.45 TO HOMELESS SERVICES AND (b) $172,438.92 TO A CAPITAL PROJECT; (2) REASSIGN $25,000 FROM FY15/16 CDBG FUNDS TO THE CITY FOR HOMELESS SERVICES; AND (3) REALLOCATE $73,577.24 OF CDBG FUNDS PREVIOUSLY ALLOCATED FROM FY 2011/2012 TO FY 2014/2015; AUTHORIZING CITY MANAGER TO SUBMIT THE REQUISITE REVISED ACTION PLANS AND CONSOLIDATED PLAN TO HUD; AND AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AGREEMENTS FOR SUB-RECIPIENTS; AND FURTHER AUTHORIZING THE CITY MANAGER TO EXECUTE CITY INTERDEPARTMENTAL AGREEMENTS. ADMINISTRATION RECOMMENDATION Adopt the Resolution. BACKGROUND The City is a U.S. Department of Housing and Urban Development (HUD)-designated entitlement community as determined by the decennial census information on population growth lag, age of housing stock, and poverty. As an entitlement community, the City receives an annual allocation of HUD funding through the Community Development Block Grant (CDBG) and HOME Investments Partnership (HOME) programs. HUD requires entitlement jurisdictions to submit a Five-Year Consolidated Plan which establishes the strategic framework upon which the City utilizes its funds. The Consolidated Plan is augmented and refined by the City's annual submission of a One-Year Action Plan which delineates the specific projects and activities funded by each year's HUD allocation. The CDBG Program has timeliness requirements regarding the expenditure of funds. CDBG funds must be expended so that the total amount of funds in the City's allocation account never exceeds 1.5 times its annual allocation. HUD further requires its entitlement jurisdictions to City Commissioners Memorandum—CDBG Funds Recapture March 9,2016 (5 pages) ensure that funded activities are carried out in the defined project scope and within the timeframe allowed. The City's Action Plan is monitored throughout the year to ensure compliance with federal regulations and progress towards the National Objective, which requires providing persons of low- and moderate-incomes with decent housing, a suitable living environment and/or expanded economic opportunities. From time-to-time, it may be necessary for the City to process a "Substantial Amendment"to the Five-Year Consolidated Plan or the One-Year Action Plan to allow for the funding of new activities, modification of existing activities, or other program administrative actions. The City is required by HUD [24 CFR 91.505 (b)] to identify the criteria to be used in determining if a proposed action will be considered a "Substantial Amendment" in its City's Citizen Participation Plan. The City amended its Citizen Participation Plan at the February 10, 2016 City Commission meeting and established the following criterion for an amendment to be considered "Substantial": A change in the use of funds from one eligible activity to another which results in a substantial alteration of the purpose, scope, location, or beneficiaries of an eligible activity. A substantial alteration is understood to affect 50% of more of the activity as proposed. Any proposed amendment considered a "Substantial Amendment" is subject to the Citizen Participation process. This process includes a thirty (30) day public notice to provide the opportunity for the public to review and comment on the proposed substantial amendments to the City's FY 2009 through 2011 and 2013 through 2015 Action Plans and to the FY 2013 through 2017 Consolidated Plan prior to their implementation by formal action of the City Commission. The Substantial Amendment is then transferred to HUD for final approval. The City issued a 30-day notice of public comment welcoming public input to the proposed substantial amendments. The public comment period was from December 24, 2015 through January 23, 2016. No comments were received. ANALYSIS 1. Recaptures The City awarded CDBG funds to a variety of recipients who were unable to fully expend their funds as noted below: :nc. .<Awardetl= Kct� ity Funded ��mou�nt�� Amount , ��° _ � x ,� �"� �. .� .�:�'�� `�` ��t� ��;� a `�. ���� ccount�Number= s,, � :P- �' t =,� a ���Aw..artleci Unex ,ended ,;.,'4 � ,;�'��a:k>,,.. �-,,:�,,.i:,�'�-�ti�.:�: .� r.;�£r a 4,���.s'��� r�.. ter, <....., .,_ ., .._(.,:.. �...�..,ri p o-„�.-.K, �r Get Credit Healthy Credit Counseling $21,437.00 $ 19,587.97 132-5465-000345 Jewish Community Senior Center Services of Greater Improvements $88,606.00 $ 1,638.60 133-5449-000346 Miami Jewish Community Services of Greater Senior Center $ 148,190.00 $242.00 134-5449-000346 Miami Improvements Jewish Community Services of Greater Senior Center $ 100,000.00 $ 5,816.59 135-5449-000346 Miami Improvements City Commissioners Memorandum—CDBG Funds Recapture March 9,2016 (5 pages) Jewish Community Services of Greater Senior Center $ 100,000.00 $ 21,088.30 130-5449-000345 Miami Improvements City-Community Emergency $48,905.00 $ 2,828.33 132-5447-000345 Services Assistance Jewish Community Case $ 26,000.00 $ 3,188.53 Services of Greater Management 132-5191-000312 Miami Services Teen Job Corps Youth employment $ 35,000.00 $482.76 132-5471-000345 Previous years - $894.17 132-1931-000343 Unexpended Boys and Girls Club Youth Center $ 200,000.00 $ 764.55 131-5473-000346 Youth Center MBCDC Meridian $69,894.00 $ 6,989.40 131-5665-000346 Apartments City Of Miami Beach Administrative $ 70,717.12 132-1931-0 City of Miami Beach Other Contractual $ 135.04 132-1931-000349 Services Jewish Community Senior Center Services of Greater Improvements $ 54,500.00 $ 54,500.00 132-5449-000346 Miami 1-Jewish Community Services declined the funds after award but before contract execution. • Get Credit Healthy received CDBG funding in FY 14/15 to provide credit counseling services to low- and moderate-income residents of the City. The agency was unable to expend its full award and $19,587.97 is being sought for recapture. • Jewish Community Services received CDBG funding from five different fiscal years to support the rehabilitation of the Miami Beach Senior Center located at 610 Espanola Way. Small amounts from four different fiscal years (FY 09/10, 10/11, 11/12 and 13/14) remained unspent when the project was finalized in July of 2015. The fifth grant award from last year's funding (FY 14/15), which provided additional scope to the rehabilitation project, was declined by Jewish Community Services in October 2015. In addition, Jewish Community Services was unable to expend $3,188.53 from FY 14/15 funds awarded to support its case management activities. The total amount of funds being sought for recapture from Jewish Community Services is $86,474.02. • The City's Office of Community Services received funding in FY 14/15 to provide emergency services including rent and utility assistance to low- and moderate-income households. The division was unable to expend its full award and $2,828.33 is being sought for recapture. • Teen Job Corps received CDBG funding in FY 14/15 to provide employment for low- income youth. The agency was unable to expend its full award and $482.76 is being sought for recapture. • A balance of $894.17 unspecified CDBG funds that remained unspent from previous fiscal years is being sought for recapture. • Boys and Girls Club of Miami-Dade, f/k/a Boys and Girls Clubs of Miami, received City Commissioners Memorandum—CDBG Funds Recapture March 9,2016 (5 pages) funding in FY 07/08 to support the construction of its Miami Beach youth center located at 1200 Meridian Avenue. Although the project is still ongoing, the agency was unable to expend its full award in a timely manner and $764.55 is being sought for recapture. • Miami Beach Community Development Corporation (MBCDC) received funding in FY 07/08 to support the rehabilitation of the Meridian Apartments, a 34-unit building dedicated to low- and moderate-income rental housing located at 530 Meridian Avenue. The agency was unable to expend its full award in a timely manner and $6,989.40 is being sought for recapture. • Administrative funds received during FY 14/15 that remained unspent at the end of the fiscal year in the amount of $70,852.16 are being recaptured pursuant to HUD regulations. • A balance of $135.04 allocated to the acquisition of the Barclay Plaza Apartments from FY 14/15 is being sought for recapture as it was not needed for acquisition. The funds being sought for recapture will be reallocated as follows: Public Services funds in the amount of $16,434.45 are being reallocated to the Homeless Outreach Team to provide Temporary Employment of Homeless persons being assisted with shelter. This increase in the amount of Public Services places the City at the 15% limit for public services allocation based on its award for FY 15/16. The balance of $172,438.92 is being reallocated to a capital project(s) yet to be selected by the Office of Housing and Community Development, a Division of the Office of Housing and Community Services, of those residential buildings recently purchased that are in need of repairs. Jewish Community Services (JCS) was awarded $25,000 of CDBG funds via One-Year Action Plan for FY 15/16 approved by City Commission on July 8, 2015 through Resolution No.2015- 29080. The purpose of the award was to provide case management services including homeless outreach. On October 1, 2015, JCS notified the City that it was not interested in moving forward with the proposed activity leaving the City with the unmet need to engage the homeless with needed services. The Homeless Outreach Team was identified as a possible subrecipient who can meet the needs of the homeless so that CDBG funds continue providing vital services for the community. The service area, budget and beneficiaries of the proposed program remain the same. As a result, $25,000 previously allocated to JCS will be reallocated to the Homeless Outreach Team to provide an expanded Homeless Outreach effort. This item was first presented to City Commission at the February 10, 2016 meeting. However, it got deferred to address an inquiry raised by Commissioner Kristen Rosen Gonzalez regarding the possible use of CDBG funds to provide rent subsidies for the tenants of the Allen Apartments. Letter to Commission (LTC) # 077-2016 addressed this request and provided a summary of the regulations administering CDBG/HOME funds that, as mentioned at the meeting, prohibit their use as a rent subsidy for any targeted group. • HUD limits the amount of CDBG funds obligated for public service activities to an amount no greater than 15 percent, of the entitlement grant made for that program year and uses of the funds are limited to programs listed in the adoption Action Plan as noted in § 570.201. • CDBG funds may not be used for rent payments other than emergency grant payments • City Commissioners Memorandum—CDBG Funds Recapture March 9,2016 (5 pages) as per HUD rules, found in 24 CFR Section 570.207(b)(4). The City's Consolidated Plan and City Guidelines define emergency as a one month period and establish the ability to resume the rent payment, once the initial rent assistance is provided, as the only criterion to determine the "emergency"factor. • Use of Emergency Food and Shelter Program (EFSP) funds for rent assistance are limited to one month and applicants must demonstrate that they are at risk by showing a copy of a Three-Day Notice of Eviction and. demonstrating their ability to resume independent rent payments the following month. • There are not remaining eligible HOME funds this fiscal year, and even if they were, because the Allen Apartments were provided HOME funds for its rehabilitation and remain under the affordability period, its tenants would not be eligible to receive HOME assistance. • Last but not least, even if the City were able to provide rent subsidies, it could not target tenants of the Allen Apartments as its primary beneficiaries. Federal funds must be equitably accessed by eligible applicants. Therefore, they have to be available to all residents. 2. Amendment to Previous Actions • The City Commission adopted Resolution No. 2014-28877 approving and authorizing the City Manager to reallocate $73,577.24 of CDBG funds from FY 11/12. However, the funds were reallocated from FY 14/15. This amendment to the City Commission previous action seeks to match the amendment reported to HUD and the allocation of funds between City accounts. • The City Commission adopted Resolution No. 2015-29122 approving the reallocation of $271,000 HOME Investment Partnership (HOME) funds• from prior years and reallocating $48,343 of HOME funds from the Meridian Place Apartments to the London House Apartments affordable housing project. Although these reallocations were approved by the City Commission, the Substantial Amendment caused by the amount of the reallocations required a thirty (30) day public comment period. Staff has now complied with the Citizen Participation Plan requirements for substantial amendments with a thirty (30) day public comment period from December 24, 2015 to January 23, 2016. During the public comment period no comment were received. The City will submit the Substantial Amendment to HUD for final approval. CONCLUSION The Administration recommends approval for the recapture of CDBG funds, amending the Action Plans and Consolidated Plan and submitting them for approval as required by HUD; reallocating the funds as noted, and subsequently executing the required agreements. F:\RH Ai\$ALL\HSG-CD\TATIANA\CAPER 14.15\CDBG Funds Recapture Memo-changes acepted.doc p JLM/K e' MLR/TAE City Commissioners Memorandum—CDBG Funds Recapture March 9,2016 (5 pages) as per HUD rules, found in 24 CFR Section 570.207(b)(4). The City's Consolidated Plan and City Guidelines define emergency as a one month period and establish the ability to resume the rent payment once the initial rent assistance is provided as the only criterion to determine the "emergency"factor. • Use of Emergency Food and Shelter Program (EFSP) funds for rent assistance are limited to one month and must demonstrate that they are at risk by showing a copy of a Three-Day Notice of Eviction and demonstrating their ability to resume independent rent payments the following month. • There are not remaining eligible HOME funds this fiscal year, and even if they were, because the Allen Apartments were provided HOME funds for its rehabilitation and remain under the affordability period, its tenants would not be eligible to receive HOME assistance. • Last but not least, even if the City were able to provide rent subsidies, it could not target tenants of the Allen Apartments as its primary beneficiaries. Federal funds must be equitably accessed by eligible applicants. Therefore, they have to be available to all residents. 2. Amendment to Previous Actions • The City Commission adopted Resolution No. 2014-28877 approving and authorizing the City Manager to reallocate $73,577.24 of CDBG funds from FY 11/12. However, the funds were reallocated from FY 14/15. This amendment to the City Commission previous action seeks to match the amendment reported. to HUD and the allocation of funds between City accounts. • The City Commission adopted Resolution No. 2015-29122 approving the reallocation of $271,000 HOME Investment Partnership (HOME) funds from prior years and reallocating $48,343 of HOME funds from the Meridian Place Apartments to the London House Apartments affordable housing project. Although these reallocations were approved by the City Commission, the Substantial Amendment caused by the amount of the reallocations required a thirty (30) day public comment period. Staff has now complied with the Citizen Participation Plan requirements for substantial amendments with a thirty (30) day public comment period from December 24, 2015 to January 23, 2016. During the public comment period no comment were received. The City will submit the Substantial Amendment to HUD for final approval. CONCLUSION The Administration recommends approval for the recapture of CDBG funds, amending the Action Plans and Consolidated Plan and submitting them for approval as required by HUD; reallocating the funds as noted, and subsequently executing the required agreements. F:\RHCD\$ALL\HSG-CD\TATIANA\CAPER 14.15\CDBG Funds Recapture Memo-changes acepted.doc JLM/KGB/MLR/TAE