LTC 344-2023 CDBG Timely Performance StatusDocuSign Envelope ID: 481559D9-B54A-4B94-95E1-AF0E2359F65E
MIAMI BEACH
OFFICE OF THE CITY MANAGER
NO. LTC # 344-2023 LETTER TO COMMISSION
TO: Honorable Mayor Dan Gelber and Members of the City Commission
FROM, Alina T. Hudak, City Manager � � -ik
DATE: August 1, 2023
SUBJECT: CDBG Timely Performance Status
We are pleased to announce that the City is in compliance with the Community Development Block Grant (CDBG) program timeliness test for the 2022 program year (October 1, 2022 -September 30, 2023), ahead of the August 2, 2023 review date. This marks the second consecutive year that the City has successfully met this requirement. Nationally, the U.S. Department of Housing and Urban Development (HUD) suspended sanctions for failing to comply with the CDBG program timely performance requirement during the coronavirus pandemic for the 2019 and 2020 program years.
Cities that receive entitlement funds from the CDBG program are required to use these funds in a timely manner. CDBG program regulations within Code of Federal Regulations (CFR) 24 Part 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, 2023, and HUD will review our compliance on August 2, 2023.
It is crucial to adhere to this requirement, as HUD has a policy of reducing the following year's grant allocation for grantees who consistently fail to meet this timeline. As noted in Letter to Commission #330-2023, dated July 24, 2023, the City intended to acquire a property with an eye toward meeting the expenditure threshold. However, due to unforeseen circumstances, it was determined that acquisition of the property was not in the City's best interest. Since then, the Administration has worked conscientiously to meet the timely performance requirement through existing initiatives.
We express our gratitude to the Office of Housing and Community Services and the Finance Department for their diligence in ensuring that all program-related payments were made promptly, contributing to our compliance with HUD regulations.
If you have any questions, please contact Alba Tarre, Director, Office of Housing and Community Services.
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