STRATEGIC PRIORITY: Housing & Homelessness Solutions
AGENDA DATE: February 14, 2024
COUNCIL DISTRICT(S): All
DEPARTMENT: Department of Housing & Neighborhood Revitalization
EXECUTIVE: Majed Al-Ghafry
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SUBJECT
Title
Authorize (1) preliminary adoption of Substantial Amendment No. 3 to the FY 2023-24 Action Plan for the Community Development Block Grant (CDBG) Funds from the U.S. Department of Housing and Urban Development (HUD) to reprogram unspent FY 2022-23 CDBG Funds in the total amount of $4,500,000.00 from the Home Improvement & Preservation Program to the Residential Development Acquisition Loan Program; and (2) a public hearing to be held on March 27, 2024, to receive comments on Substantial Amendment No. 3 to the FY 2023-24 Action Plan for the CDBG Funds - Financing: No cost consideration to the City
Body
BACKGROUND
The Department of Housing & Neighborhood Revitalization (Housing) requests to amend the fiscal year (FY) 2023-24 Action Plan to allow timely commitment and expenditure of unspent FY 2022-23 CDBG Funds and reprogram $4,500,000.00 from the Home Improvement & Preservation Program (HIPP) to the Residential Development Acquisition Loan Program (RDALP).
• From: FY 2022-23 HIPP $4,500,000.00
• To: FY 2022-23 RDALP $4,500,000.00
Annually, the City submits an Action Plan to United States Department of Housing and Urban Development (HUD) that includes the Community Development Block Grant (CDBG), HOME Investment Partnerships Program Grant (HOME), Emergency Solutions Grant (ESG), and Housing Opportunities for Persons with AIDS Grant (HOPWA). The FY 2023-24 Action Plan provides a detailed description of programs and services to be undertaken with the grant funds over the twelve-month period of October 1, 2023 - through September 30, 2024, to address priority needs in the community designed to improve Dallas residents’ quality of life for low- and moderate-income persons.
As a grantee for the CDBG Funds, the City of Dallas is required to meet an annual timeliness test for expenditure of CDBG Funds. There have been challenges and barriers to operating multiple home repair programs and outsourcing administration to subrecipients and contractors that have delayed timely spending of CDBG Funds. To meet the timeliness test, the reprogramming of funding is essential. To alleviate future issues, HIPP is being amended for use in the FY 2024-25 Action Plan to remove obstacles such as multiple home repair program competition, multiple applications, and resident confusion. On December 12, 2023, the Housing and Homelessness Solutions Committee was briefed on the changes to the HIPP. The final approval for the HIPP changes will be on Dallas City Council agenda on March 27, 2024.
Federal regulations and the City’s Citizen Participation Plan require a public hearing to authorize a substantial amendment to the Action Plan and require that a public hearing be held with not less than a 30-day public review and comment period to allow for public comments and input with respect to any substantial amendment to the Action Plan.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On June 22, 2022, the City Council authorized the final adoption of the FY 2022-23 Consolidated Plan Budget by Resolution No. 22-1024.
On June 14, 2023, the City Council authorized the final adoption of the current FY 2023-24 Consolidated Plan Budget by Resolution No. 23-0765.
The Housing and Homelessness Solutions Committee was briefed on the changes to HIPP on December 12, 2023.
On December 13, 2023, the City Council authorized preliminary adoption of Substantial Amendment No. 1 to the FY 2023-24 Action Plan Budget and a public hearing to be held on January 24, 2024, before the Dallas City Council to receive public comments on the FY 2023-24 Action Plan Budget by Resolution No. 23-1657.
On January 24, 2024, the City Council authorized Substantial Amendment No. 1 to the FY 2023-24 Action Plan Budget by Resolution No. 24-0211.
On January 24, 2024, the City Council authorized preliminary adoption of Substantial Amendment No. 2 to the FY 2023-24 Action Plan Budget and a public hearing to be held on February 28, 2024, before the Dallas City Council to receive public comments on the FY 2023-24 Action Plan Budget by Resolution No. 24-0164.
The Community Development Commission was briefed regarding this item on February 1, 2024.
FISCAL INFORMATION
No cost consideration to the City.