STRATEGIC PRIORITY: Government Performance & Financial Management
AGENDA DATE: June 12, 2024
COUNCIL DISTRICT(S): N/A
DEPARTMENT: Budget and Management Services
EXECUTIVE: Jack Ireland
______________________________________________________________________
SUBJECT
title
Authorize (1) final adoption of the FY 2024-25 HUD Consolidated Plan Budget for U.S. Department of Housing and Urban Development Grant Funds in an estimated amount of $30,949,109 for the following programs and estimated amounts: (a) Community Development Block Grant (CDBG) in the amount of $13,023,068; (b) HOME Investment Partnerships Program (HOME) in the amount of $5,078,453; (c) Emergency Solutions Grant in the amount of $1,213,719; (d) Housing Opportunities for Persons with AIDS in the amount of $9,864,583; (e) estimated CDBG and HOME Program Income in the amount of $700,000; and (f) FY 2023-24 Reprogramming Funds in the amount of $1,069,286; and (2) the new Five-Year Consolidated Plan, covering the period of FY 2024-25 through FY 2028-29 - Financing: This action has no cost consideration to the City (see Fiscal Information)
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BACKGROUND
The City of Dallas receives four formula grants each year from the U.S. Department of Housing and Urban Development (HUD). Four grants make up the Consolidated Plan, and consist of: CDBG, HOME, Emergency Solutions Grant (ESG), and Housing Opportunities for Persons with AIDS (HOPWA). The purpose of CDBG is to develop viable urban communities by providing decent housing and a suitable living environment, and expanding economic opportunities. HOME funds are used to develop, support, produce, and expand the supply of decent and affordable housing. ESG Funds help to prevent homelessness and assist individuals and families who are already homeless. HOPWA Funds provide housing and supportive services to persons living with human immunodeficiency virus (HIV)/acquired immunodeficiency syndrome (AIDS) and their family members.
In order to continue receiving the four grants from HUD, the City must have a Consolidated Plan. The Consolidated Plan covers a five-year planning period. It is a comprehensive analysis and strategic plan that identifies community needs, prioritizes those needs, and details how they will be addressed. Requirements for development and submission of the Consolidated Plan are found at 24 CFR, Part 91.
The current Consolidated Plan expires at the end of the current fiscal year (September 30, 2024). The new Five-Year Consolidated Plan will cover the period of October 1, 2024 through September 30, 2029.
Development of the new Five-Year Consolidated Plan launched in November 2023, with input from the Community Development Commission (CDC), a citizen advisory board appointed by the City Council. During January 2024, the CDC, along with City staff, conducted a total of eight public meetings. These meetings provided the public with opportunities to identify community needs, and comment and provide input on the approach for developing the new Five-Year Consolidated Plan and potential uses of HUD Grant Funds.
Public meetings were held as follows:
January 4, 2024 - City Hall & On-Line Virtual Meeting
January 8, 2024 - In-Person Meeting at Tommie C. Allen Recreation Center
January 9, 2024 - On-Line Virtual Meeting
January 10, 2024 - Ryan White Planning Council (In-Person & On-Line Virtual Meeting)
January 11, 2024 - On-Line Virtual Meeting (day)
January 11, 2024 - On-Line Virtual Meeting (evening)
January 18, 2024 - Telephone Town Hall Meeting
January 23, 2024 - Continuum of Care General Assembly On-Line Virtual Meeting
For budget development purposes, pending notification from HUD of the City’s actual formula grant allocations, the City Manager’s Proposed FY 2024-25 HUD Consolidated Plan Budget assumed level funding for all four grants. In order to meet statutory deadline requirements, development of the City’s FY 2024-25 Consolidated Plan Budget and new Five-Year Consolidated Plan had to begin using preliminary estimates and could not wait for notification of actual grant amounts.
On February 28, 2024, the City Council authorized initial support of the approach for development of the new Five-Year Consolidated Plan, covering the period of FY 2024-25 through FY 2028-29 for the four HUD grant funds: CDBG, HOME, ESG, and HOPWA, by Resolution No. 24-0317.
The FY 2024-25 HUD Consolidated Plan Budget also includes CDBG Reprogramming Funds in the amount of $1,069,286 to be budgeted as a “source of funds” as part of the FY 2024-25 CDBG Budget. The City Council authorized this amount: (a) on January 24, 2024 by Resolution No. 24-0164, to include $569,286 in prior year unspent CDBG Funds; and (b) on February 28, 2024 by Resolution No. 24-0316, to include $500,000 in funds available due to rescission of the CDBG Public Facility Improvements Project contract awarded to City Square Arts Opportunity Center, LLC, for public facility improvements to the Forest Theater.
On March 7, 2024, the CDC was briefed on the City Manager’s Proposed FY 2024-25 HUD Consolidated Plan Budget and new Five-Year Consolidated Plan. The CDC held meetings to review the proposed budget.
On April 4, 2024, the CDC approved the City Manager’s proposed budget with the following amendment: revise the description of the new Drivers of Poverty Program to include childcare.
On April 17, 2024, the City Council was briefed on the City Manager’s Proposed FY 2024-25 HUD Consolidated Plan Budget and the new Five-Year Consolidated Plan. During the April 17 briefing, Council members were invited to submit amendments to the City Manager’s Proposed FY 2024-25 HUD Consolidated Plan Budget.
On May 1, 2024, the City Council was briefed on the FY 2024-25 HUD Consolidated Plan Budget: City Council Discussion and Amendments. City Council Member Ridley proposed an amendment to reallocate funds from the new Drivers of Poverty Program to Community Courts. The amendment did not pass on straw vote.
On May 7, 2024, HUD posted the FY 2024 grant allocations for CDBG, HOME, ESG, and HOPWA grants on their website. The City Manager has proposed increases or decreases as necessary to balance the budget with available resources, including capped categories.
On May 8, 2024, the City Council authorized preliminary adoption of the Proposed FY 2024 25 HUD Consolidated Plan Budget, including CDBG Reprogramming Funds, new Five-Year Consolidated Plan, and a public hearing, by Resolution No. 24-0655. These budgets will have been made available for public review and comment from May 12, 2024 through June 11, 2024.
On May 17, 2024, the City Council was briefed by memorandum on the actual HUD grant allocations for the FY 2024-25 Consolidated Plan Budget. A copy of this memorandum was provided to the CDC on or about May 17, 2024.
On May 22, 2024, the City Council conducted a public hearing on the Proposed FY 2024-25 HUD Consolidated Plan Budget, which was held under advisement until June 12, 2024, with the public hearing open, and which satisfies the requirements set forth in HUD regulations and the City’s Citizen Participation Plan.
A summary of the Proposed FY 2024-25 HUD Consolidated Plan Budget and new Five-Year Consolidated Plan was published in the Dallas Morning News on or about May 12, 2024 (with estimated awards) and May 26, 2024 (with final awards), to provide an opportunity to submit written comments through June 11, 2024.
This action authorizes final adoption of the FY 2024-25 HUD Consolidated Plan Budget, including CDBG Reprogramming Funds, and new Five-Year Consolidated Plan.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
The City Council was briefed on the requirements for submitting a HUD Consolidated Plan for FY 2024-25 through FY 2028-29 on October 18, 2023.
The CDC was briefed and provided input on the process for development of the HUD Five-Year Consolidated Plan on November 2, 2023.
The City Council was briefed by memorandum regarding this matter on December 8, 2023. <https://dallascityhall.com/government/citymanager/Documents/FY23-24%20Memos/Update%20on%20the%20Dev%20of%20HUD%207yr%20Plan%20for%20FY%202024-25%20-%20FY%202028-29.pdf>
The Government Performance and Financial Management Committee was briefed by memorandum regarding this matter on January 19, 2024. <https://cityofdallas.legistar.com/View.ashx?M=F&ID=12606947&GUID=6A270AE2-B46C-4A57-A47B-47213CCC0F0E>
On January 24, 2024, the City Council authorized (1) an extension through September 30, 2024 for CDBG Funds in CDBG funded projects that have not met the City’s twelve-month obligation or twenty-four-month expenditure requirement; (2) preliminary adoption of Reprogramming Budget No. 1 (Substantial Amendment No. 2) to the FY 2023-24 Action Plan to use unspent CDBG CARES Act Relief Funds for the Emergency Rental Assistance Program; (3) establish a new fund to separate CDBG-DR Funds previously received to comply with HUD rules; and (4) a public hearing to be held on February 28, 2024, to receive comments on the proposed use of funds for Reprogramming Budget No. 1 (Substantial Amendment No. 2) to the FY 2023-24 Action Plan, by Resolution No. 24-0164.
The City Council was briefed on the “HUD 5-Year Consolidated Plan for FY 2024-25 through FY 2028-29” on January 31, 2024.
The Government Performance and Financial Management Committee was briefed by memorandum regarding this matter February 26, 2024. <https://cityofdallas.legistar.com/View.ashx?M=F&ID=12707323&GUID=26671959-A2FB-486B-9CCD-08D370018B0A>
On February 28, 2024, the City Council authorized (1) rescinding the Community Development Block Grant Contract - Public Facility Improvements Project contract awarded to City Square Arts Opportunity Center, LLC, previously approved on January 21, 2021, by Resolution No. 21-0246, to complete public facility improvements to the Forest Theater located at 1918 Martin Luther King Jr. Boulevard; and (2) the funds to be reprogrammed for other eligible uses during the development of the FY 2024-25 Community Development Block Grant by Resolution No. 24-0316.
On February 28, 2024, the City Council authorized initial support of the approach for development of the new 5-Year Consolidated Plan, covering the period of FY 2024-25 through FY 2028-29 for the four HUD grant funds: CDBG, HOME, ESG, and HOPWA, as prescribed by federal regulations by Resolution No. 24-0317.
The CDC was briefed on the City Manager’s Proposed FY 2024-25 HUD Consolidated Plan Budget and new Five-Year Consolidated Plan, followed by CDC Committees held meetings to review the proposed budget on March 7, 2024.
On April 4, 2024, the CDC approved the City Manager’s proposed budget and new Five-Year Consolidated Plan with the following amendment: revise the description of the new Drivers of Poverty Program to include childcare.
The City Council was briefed on the “City Manager’s Proposed FY 2024-25 HUD Consolidated Plan Budget and the new Five-Year Consolidated Plan” on April 17, 2024.
The City Council was briefed on “City Council Discussion and Amendments to the FY 2024-25 HUD Consolidated Plan Budget and new Five-Year Consolidated Plan" on May 1, 2024.
On May 8, 2024, the City Council authorized preliminary adoption of the Proposed FY 2024-25 HUD Consolidated Plan Budget, new Five-Year Consolidated Plan, and a public hearing to receive comments on the proposed use of funds by Resolution No. 24-0655.
The City Council was briefed by memorandum on the actual HUD grant allocations for the FY 2024-25 Consolidated Plan Budget on May 17,2024. <https://dallascityhall.com/government/citymanager/Documents/FY23-24%20Memos/UAI%20HUD%20Grant%20Allocations%20for%20FY%202024-25%20Consolidated%20Plan%20Budget.pdf>
On May 22, 2024, the City Council conducted a public hearing on the Proposed FY 2024-25 HUD Consolidated Plan Budget, which was held under advisement until June 12, 2024, with the public hearing open.
FISCAL INFORMATION
This action has no cost consideration to the City.
|
Fund |
FY 2025 |
FY 2026 |
Future Years |
|
Community Development Block Grant Funds |
$13,023,068.00 |
$0.00 |
$0.00 |
|
HOME Investment Partnerships Program Grant Funds |
$ 5,078,453.00 |
$0.00 |
$0.00 |
|
Emergency Solutions Grant Funds |
$ 1,213,719.00 |
$0.00 |
$0.00 |
|
Housing Opportunities for Persons with AIDS Grant Funds |
$ 9,864,583.00 |
$0.00 |
$0.00 |
|
Program Income (estimate) |
$ 700,000.00 |
$0.00 |
$0.00 |
|
FY 2023-24 Reprogrammed Funds |
$ 1,069,286.00 |
$0.00 |
$0.00 |
|
Total |
$30,949,109.00 |
$0.00 |
$0.00 |
Proposed FY 2024-25 HUD Consolidated Plan Budget
CDBG: $13,023,068 FY 2024-25 Entitlement
$ 200,000 Program Income (estimate)
$ 1,069,286 FY 2023-24 Reprogrammed Funds
$14,292,354
HOME: $ 5,078,453 FY 2024-25 Entitlement
$ 500,000 Program Income (estimate)
$ 5,578,453
ESG: $ 1,213,719 FY 2024-25 Entitlement
HOPWA: $ 9,864,583 FY 2024-25 Entitlement
$30,949,109 Total FY 2024-25 HUD Consolidated Plan Budget