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PUBLIC HEARING REGARDING AMENDMENT NUMBER TWO TO THE FYE20 FIFTH YEAR ACTION PLAN FOR THE 45TH YEAR NORMAN COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM ADDING $535,688 AWARDED TO THE CITY OF NORMAN THROUGH THE CORONA VIRUS AID, RELIEF, AND ECONOMIC SECURITY (CARES) ACT 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 CARES Act included funding to be distributed utilizing the existing CDBG formula to all Entitlement Communities and States. The City of Norman was awarded a total of $535,688. The Department of Housing and Urban Development (HUD) has encouraged entitlement communities such as Norman to simply amend their current Action Plan to allow for expedient use of the funds. With the legislation that was passed, the reduction of the usual 30-day Public Comment Period has been reduced to 5 days. The amendment to the Citizen Participation Plan is also attached.
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.
At the April 14, 2020 City Council Meeting, Amendment One to the 45th Year Community Development Block Grant Program (CDBG) was approved, which reprogrammed ($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. Amendment Two will expand this program and provide additional resources for non-profits that distribute food to the community.
DISCUSSION: 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. The CDBG Policy Committee has approved this request via e-mail.
Included within this proposal is the establishment of one full-time position and associated establishment costs, to be funded by the CDBG-CV program for FYE21. This position will be funded by the General Fund in subsequent years. The particulars of the assistance programs are still in development with potential participating entities. In addition, the use of these funds will be utilized within the context of any other additional funds which may be awarded as a result of this crisis. Staff will keep Council apprised as the program parameters are finalized.
In addition to the above-described staff and administration costs, the proposed funding will be utilized as follows: to assist Non-Profit entities that have food service to low and moderate income citizens of Norman as an integral part of their mission that have had to discontinue the use of volunteer or in-house prepared meals that has resulted in a substantial cost increase. ($25,000 total; $5,000 each to Food and Shelter, Inc.; Meals on Wheels, Inc.; Aging Services, Inc.; Thunderbird Clubhouse, Inc.; and Salvation Army, Inc.). Funding for the provision of Homeless Start up Kits $50,000. Rent and Utility Assistance Program $376,688.
Considering the $75,000 included in Amendment One, there will be a total of over $450,000 of funding available for rent and utility assistance for households at or below 80% median family income that have been directly affected by the COVID-19 Crisis.
RECOMMENDATION: Approval of Amendment Two to the Fifth Year Action Plan for the 45th Year Community Development Block Grant Program, as proposed, including acceptance of the CDBG-CV funding in the amount of $535,688.
The revenue account of 212-333378 (CDBG-CV) has been established for this funding. Resolution R-1920-110 will appropriate funds totaling $535,688 to various accounts. Staff also recommends that Resolution R-1920-110 be adopted by City Council.