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.
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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