STRATEGIC PRIORITY: Government Performance & Financial Management
AGENDA DATE: January 26, 2022
COUNCIL DISTRICT(S): N/A
DEPARTMENT: Budget and Management Services
EXECUTIVE: Elizabeth Reich
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SUBJECT
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Authorize (1) an extension through September 30, 2022 for Community Development Block Grant (CDBG) Funds in the amount of $961,185 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. 3) to the FY 2021-22 Action Plan to: (a) use unspent prior year CDBG Funds in the amount of $2,569,591 for the Residential Development Acquisition Loan Program and (b) use unspent CDBG CARES Act Relief Fund No. 3 (CDBG-COVID) Funds in the amount of $250,000 in the Digital Navigators Program for the Eviction Assistance Initiative; and (3) a public hearing to be conducted on March 9, 2022 to receive comments on the proposed use of funds for Reprogramming Budget No. 1 (Substantial Amendment No. 3) to the FY 2021-22 Action Plan - Financing: This action has no cost consideration to the City (see Fiscal Information)
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BACKGROUND
On August 18, 1993, Resolution No. 93-3001 established specific timeframes for the obligation and expenditure of CDBG Funds. Funds are to be obligated within 12 months and expended within 24 months of budget adoption. On March 28, 2007, Resolution No. 07-0992 enhanced the City's existing expenditure policy with additional benchmarks. Additional time to obligate and expend funds may be granted by City Council.
Timely expenditure of CDBG Funds by entitlement cities continues to be a primary concern of the U.S. Department of Housing and Urban Development (HUD). HUD requires that cities expend CDBG Funds so that, at least 60 days prior to the start of a new program year, the unexpended balance of CDBG Funds should be less than 1.5 tim...
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