Title
Approval of a Substantial Amendment to the Program Year 2022 Community Development Block Grant Annual Action Plan
Recommended Action
Committee Recommendation:
Not referred to a committee.
City Manager Recommendation:
Move to approve the proposed amendment to the Program Year (PY) 2022 CDBG Annual Action Plan to reallocate existing CDBG funds from PY 2021.
Report
Issue:
Whether to approve the amendment to the CDBG PY 2021 Annual Action Plan.
Staff Contact:
Anastasia Everett, CDBG Program Specialist, City Manager’s Office, 360.233.6197
Presenter(s):
None - Consent Calendar item.
Background and Analysis:
The City has a total of $155,330.34 in PY 2021 funds available to allocate to activities. This is due to a large amount of Program Income received during the program year, as well as the canceled activity 306, Housing Authority of Thurston County ($50,000 award). Program Income must be disbursed for eligible activities before the City can request entitlement funds from the U.S. Treasury: 24 CFR 570.504(b)(2)(ii) - Substantially all other program income shall be disbursed for eligible activities before additional cash withdrawals are made from the U.S. Treasury. Program income receipted in PY 2021 totaled $102,175.09 (not including program income directed to the Revolving Loan Fund). Due to the receipt of this program income, these funds were drawn before the allocated PY 2021 entitlement funds were drawn, so there is a surplus in unallocated CDBG funding. The City plans to propose an additional substantial amendment to the PY 2022 Annual Action Plan in the coming months to award additional unallocated funding to eligible activities.
Project: Heat Pump Group Purchase Campaign - Funds are proposed to create and support a new activity carried out by the subrecipient South Puget Sound Habitat for Humanity. City Climate and CDBG staff worked alongside Habitat for Humanity to apply for a $75,000 state Community Energy Efficiency Program (CEEP) grant to fund heat pump purchase and weatherization improvements for low/moderate income homeowners in the City of Olympia. CDBG funds are proposed to match the $75,000 CEEP grant award to bolster the total for this project to $150,000. CDBG funds will be used to support fully subsidized installation and necessary weatherization improvements to 80% or lower AMI homeowners in the City. Additional funding being allocated: $75,000.
Project: Downtown Ambassadors Funds were awarded to the Downtown Ambassadors in PY 2022 for $35,000. City staff propose unallocated PY 2021 funds of $18,000 to award the Downtown Ambassadors a total PY 2022 award of $53,000. This increase remains under the 15% public service cap restricted by the block grant. Additional funding being allocated: $18,000.
Proposed Substantial Amendment: This proposed Substantial Amendment must go through our “CDBG Citizen Participation Plan” with 30 days for public comment. This public process can run concurrent to the Program Year 2022 CAPER public process. This meets the definition of a Significant Amendment to the Annual Action Plan because of the following:
• A change in allocation priorities, which is considered a change of federal funds awarded to a project of greater than 30 percent or $30,000, whichever is greater;
• A major change in the scope of an activity;
• The addition or deletion of a specific activity;
• A change in the beneficiaries of an activities
Neighborhood/Community Interests (if known):
Community Development Block Grant funds can be spent to meet the needs of low to moderate income individuals throughout the community.
Options:
1. Move to recommend the proposed substantial amendment for approval.
2. Provide staff with feedback on the proposed substantial amendment.
3. Take no action on matter.
Financial Impact:
$93,000 of existing CDBG funds are being proposed to fund two activities in Program Year 2022.
Attachments:
Draft Substantial Amendment
Presentation