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AMENDMENT NUMBER ONE TO THE FYE20 FIFTH YEAR ACTION PLAN FOR THE 45TH YEAR NORMAN COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM TO BE SUBMITTED TO THE UNITED STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT.
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BACKGROUND: The 2014-2019 Consolidated Plan approved in 2014 is a comprehensive planning approach to identify and address the needs of low-to-moderate income residents of Norman. Incorporated in the plan was a community profile of needs, goals and objectives related to housing, homeless persons, community development (including facilities, infrastructure, public services, and economic development), public and assisted housing needs, and other issues including fair housing and lead-based paint; and a strategic plan to address those needs.
The Fifth Year Action Plan for the 45th Year Community Development Block Grant (CDBG) Program and the 2019 HOME Partnership Program (City of Norman FY 2019-2020) were approved by the Norman City Council on May 14, 2019 and the U.S. Department of Housing and Urban Development (HUD) on June 18, 2019. All activities included in the proposed use of funds referenced the Five-Year Consolidated Plan Objectives and expected performance outcomes, and totaled $850,844.
To assist in addressing the current financial impact associated with the COVID-19 crisis to households in Norman, the Community Development Block Grant Program (CDBG) requested the reprogramming of funds ($75,000) identified within the Fifth Year Action Plan. These funds will be utilized for a program targeting households who as a result of this crisis have seen a substantial reduction of their employment income. The funds will be utilized for the payment of rent and/or utilities for the affected households.
Discussion has been held with the CDBG Policy Committee, United Way of Norman, Food and Shelter, Inc. and Salvation Army, among others pertaining to how the CDBG Program can be utilized to assist in meeting the demand for the dramatic increase in the number of families that are looking for financial assistance for the payment of rent and utilities. This is a crisis that all expect to increase as many remain out of work for the immediate future.
DISCUSSION: The source of these funds include the funds that were identified for the CDBG Bus Pass Program and the Original Townsite Driveway Project. The CDBG Bus Pass ($34,139) funds are not currently being utilized due to Embark Norman’s free fare structure. The Original Townsite Driveway Project ($40,861) has not begun and other CDBG funds from past years will be utilized to complete the project as planned. Because CDBG funds are required to be tracked and segregated by awards the funds being identified simplifies this request. Previous year Action Plans included funding for Street Improvements that can be utilized for the Original Townsite Driveway Project.
The CDBG Program requires that each grantee adopt and follow a Citizen Participation Plan for the proposal and implementation of all activities. The Plan that is adopted by the City of Norman requires that a Substantial Amendment to an Action Plan is required if an activity is proposed that was not included within the plan as approved by HUD. That is the case in this situation. Once approved by Council this request will be forwarded to HUD for approval. It is anticipated that these funds could begin utilization in Mid-May. The CDBG Policy Committee approved this request via e-mail last week.
The particulars of the program are still in development with potential participating entities. In addition, the use of these funds will be utilized within the context of other additional funds which may be awarded as a result of this crisis. Staff will keep Council apprised as the program parameters are finalized.
The identification of $75,000 for this activity is believed to be far from the effort that will be needed to assist the community. According to the Citizen Participation Plan, once the new activity has been approved, additional funds within the program year may be allocated to the effort if identified. Additional funds could be utilized as staff evaluates the current funding levels and other possible resources are identified.
RECOMMENDATION: Approval of Amendment One to the Fifth Year Action Plan for the 45th Year Community Development Block Grant Program as proposed.