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LTC 291-2022 CDBG Timely Performance291-2022 MIAMI BEACH OFFICE OF THE CITY MANAGER NO. LTC# LETTER TO COMMISSION TO : FROM : DATE: Honorable Mayor Dan Gewber a d mbers of the City Commission Alina T. Hudak, City Man July 15, 2022 . SUBJECT: CDBG Timely Performance Communities that receive entitlement funds from the Community Development Block Grant (CDBG) program are required to use their funds in a timely manner . CDBG regulations at 24 CFR 570.902 stipulate that grantees must have a balance no greater than one and one-half (1.5) times its annual grant remaining in the Line of Credit, 60 days prior to the end of the program year . The city's program year ends on September 30 th ; therefore, HUD will review the city for compliance on August 2, 2022. HUD has a longstanding policy of reducing the next year's grant allocation of a grantee that continues to be untimely . It has been a challenge to meet this requirement since the 2018 program year (October 1, 2018 -September 30, 2019). HUD issued suspension of sanctions for failure to comply with the timely performance requirement during the coronavirus pandemic for the 2019 and 2020 program years. We are pleased to report that as of today we are in compliance with the timeliness test for the 2021 HUD program year (October 1, 2021 -September 30, 2022), in advance of the August 2, 2022 review date. We would like to thank the Procurement Department for their assistance in securing contractors for our affordable housing capital projects which make the biggest impact in expending our CDBG funds . We would also like to thank the Finance Department for ensuring that all payments are made promptly. ns, please contact Alba Tarre, Director, Office of Housing and Community ATH