City Council Work Session - AMENDED

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Meeting Date:	04/11/2023
From:	Kristine Pavlik, Housing and Grants Administrator
Department:	Community Development
Co-Submitter:

TITLE:

Presentation and discussion regarding the City of Flagstaff Community Development Block Grant Program Year 2023 Annual Action Plan and Staff recommendations for Program Year 2023 CDBG funding allocations.

DESIRED OUTCOME:

The desired outcome of the April 11, 2023 City Council Work Session is to inform Council of the Community Development Block Grant (CDBG) Program Year 2023 Annual Action Plan, required by the US Department of Housing and Urban Development (HUD) as part of the CDBG Program. The 2023 Annual Action Plan is due to be submitted to HUD on May 15, 2023 and is required in order for the City of Flagstaff to maintain its compliance with federal CDBG regulations.

Staff will provide Council with a presentation regarding the 2023 CDBG proposals that were received through the Notice of Funding Available application process. Staff will review each proposal and provide funding recommendations for 2023 CDBG Entitlement and Annual Action Plan.

Staff will return for the May 2nd Council meeting to request approval of the 2023 Annual Action Plan and final allocation decisions through a resolution authorizing submission of the AAP to the U.S. Department of Housing and Urban Development (HUD) as part of the Community Development Block Grant (CDBG) process.

EXECUTIVE SUMMARY:

The City of Flagstaff receives an annual allocation of Community Development Block Grant (CDBG) funds from the U.S. Department of Housing and Urban Development (HUD) on a “Program Year” basis (July 1 – June 30). The purpose of the CDBG program is to develop viable urban communities through the provision of decent affordable housing, a suitable living environment, and economic opportunity, principally for low and moderate-income persons. In Flagstaff, for 2022, low to moderate-income (80% of the Area Median Income or below) is defined as a 4-member household earning under $68,700.

The City of Flagstaff receives an annual allocation of Community Development Block Grant (CDBG) funds from the U.S. Department of Housing and Urban Development (HUD) on a “Program Year” basis (July 1 – June 30). The purpose of the CDBG program is to develop viable urban communities through the provision of decent affordable housing, a suitable living environment, and economic opportunity, principally for low and moderate-income persons. In Flagstaff, for 2022, low to moderate-income (80% of the Area Median Income or below) is defined as a 4-member household earning under $68,700.

In order to receive CDBG funding, the City must complete and submit to HUD an Annual Action Plan describing how the anticipated CDBG allocation will address Flagstaff's community needs identified in the 2021-2025 Consolidated Plan and how funding will be distributed within Flagstaff city limits. The Annual Action Plan is due to HUD on or before May 15, 2023.

The CDBG allocation amount for Program Year 2023 is $541,191. In addition, the City of Flagstaff is able to include program income and prior year de-obligated funds to increase funding available for allocation. These additional funds equal $199,588.50. Therefore, an estimated grand total of $740,779.50 is available for CDBG eligible projects for the 2023 program year, through the Annual Action Plan.

INFORMATION:

Please review the May 2, 2023 Staff Summary in Attachments for additional information.

Attachments
CDBG May 2 Staff Summary
CDBG Presentation