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