Title
Discussion of CDBG Public Process and Current Fund Status
Body
Issue:
Should the Council make changes to the CDBG process and timeline?
City Manager's Recommendation:
Receive a report on the CDBG Program process timeline and consider program enhancements.
Staff Contact:
Anna Schlecht, Housing Program Manager, 360.753.8183
Presenter(s):
Anna Schlecht, Housing Program Manager
Background and Analysis:
Referral: The Council made a referral to General Government Committee to review the Community Development Block Grant (CDBG) Program process and timeline to consider changes that would better accommodate:
1) Council deliberation of funding priorities;
2) Public participation; and,
3) Staff time to meet key deadlines and ensure a fully compliant program.
The Council also stated a need for compliance reporting on the timeliness of the CDBG spend-down requirements.
Program Timeline: The City's CDBG program year runs from September 1st through August 31st of each year with the following milestones:
September 1 Program Year Starts / Contracts Executed
November Program Annual Report due to HUD - (CAPER)
Public hearing (one of two required public hearings)
Nov - May Council deliberation to establish CDBG program goals
Conduct Request for Proposals (RFP)
Public hearing on proposed activities
Council review and approval of funding recipients
July 15 Next program year annual action plan due to HUD
August 31 Program year ends
Options for Enhancement
Past Program Timelines: The Council's CDBG timeline has varied over the past eight (8) years. Prior to 2006, the Council held two public hearings on the CDBG Program and directed staff to manage the program administratively. Between 2007 - 2010, the Council met approximately four (4) times annually to deliberate - twice in committee (General Government) and twice in public hearings. Staff initiated a formal Request for Proposals (RFP) process and developed a more expansive public process. Council instituted a Committee level review with the General Government Committee to review proposals and develop recommendations for the Council allocations. General Government Committee also scheduled an annual review of program goals and priorities and developed recommendations for refining the CDBG Program and public process.
In the past three (3) program years, all program oversight occurred at the Council level. During the current program year this involved 15 scheduled meeting items, including the two required public hearings. However, part of the reason for the extensive Council engagement was the review of the Comprehensive Plan process which develops the Five-year strategy plan for the CDBG Program.
While this past year's schedule allowed for extensive Council review of the overall program, the timeline did not allow sufficient time for the final review and approval of CDBG allocations. This process became even more time-intensive due to the inclusion of the Five-year CDBG Comprehensive planning activities.
Timeline Options: At the conclusion of the Program Year 2013 planning, Council stated an interest in revising the timeline to maintain an appropriate schedule of review and approval of funding allocations. While many of the CDBG Program milestones are date-fixed, there is a five-month window of flexibility during which the Request for Proposals and Council review can be scheduled. Options include starting as soon as November or as late as April. However, the start date needs to allow sufficient time for:
• Public notices for all scheduled public meetings:
• Public comment period; and,
• Staff time to develop reports and CDBG materials.
Council may consider options to synchronize the CDBG RFP with other funding cycles such as the City's Operating Budget or the County's HOME Consortium allocations, which typically involve federal and state recording fee dollars.
Selection Process & Criteria: Over the past eight (8) years, the Council has utilized several methods of reviewing CDBG proposals and allocating funding to eligible projects. Options for preview and/or ranking of CDBG proposals include:
• Staff Preview Options: Continue to have staff preview and develop preliminary rankings of proposals for Council review and final allocations.
• Citizen/Stakeholder Options: Empanel a stakeholder review committee to preview and rank proposals for Council review and final allocations.
• Council-Only Options: Return to the practice of having a Council committee conduct the preview and ranking of proposals for Council review and final allocations.
• Integrated review options: Combine two or more of the above approaches to ensure a highly deliberative process.
Managing the Spend-down Deadline: The Council stated a need to receive a regular update on CDBG spending in order to monitor compliance with the HUD spend-down requirement. HUD regulations require grantees to spend money in a timely fashion by expended 1 ½ times their current grant award by the 10th month of the Program Year. Not meeting this deadline will result in punitive action by HUD.
Below is a sample report format that reflects current spending levels:
Current Year CDBG Grant $325,612.00
Limit (1 ½ x current grant) $488,418.00
Total Available to spend* $449,337.77
Spend down by June 30, 2013 <$39,080.23> (Surpassed the target by nearly $40,000)
*Total available new CDBG and CDBG program income funds
Neighborhood/Community Interests (if known):
The federal CDBG Program offers a flexible source of funding to meet a wide variety of affordable housing, social service, economic development and other community development needs.
Options:
Receive a report on the CDBG Program process timeline and consider program enhancements