Item Coversheet
City of Independence
BILL NO. 17-073Ord.No:           18772

Agenda Title:

17-073 - 2R.  An ordinance approving the 2017-2021 Consolidated Plan and one year Annual Action Plan for Program Year 43, Annual Action Plan for the CDBG and home programs, authorizing applications to the department of Housing and Urban Development (HUD) for the Community Development Block Grant (CDBG) Program Year 43 and the Home Investment Partnerships Act (HOME) Program Year 23; authorizing execution of a written agreement and acceptance of CDBG and Home Program Funds under the Housing and Community Development Act of 1974; and making the necessary appropriations.

Staff recommends approval.
Executive Summary:

This ordinance requests approval of the 2017-2021 Consolidated Plan for the Community Development Block Grant and HOME Programs. In addition to adopting the proposed five year plan, Council is asked to approve the 2017-18 Annual Action Plan which, upon receipt of a funding award from HUD, will make available $718,203.00 in Community Development Block Grant (CDBG) Program funds and $325,785.00 in HOME Program funds to support housing and community service programs during the coming fiscal year.

In 2015, the City adopted the 2015-2019 Consolidated Plan for the Community Development Block Grant (CDBG) and HOME Partnership Act (HOME) Programs as required by HUD. The purpose of the Consolidated Plan is to provide an updated, community-based analysis of current demographic, economic, and public policy trends, and a timely reassessment of the needs of low and moderate income populations as related to housing, shelter, public service and various categories of community and economic development. The Consolidated Plan establishes specific goals and objectives to be achieved during the plan period, and lays the groundwork for identification and prioritization of specific activities that will receive CDBG and/or HOME funding assistance during implementation of the plan.

After the City’s adoption of our 2015-2019 Consolidated Plan, HUD enacted a new requirement relating to the Consolidated Plan. The Affirmatively Furthering Fair Housing (AFFH) Plan is a new federal requirement for communities that receive federal housing funds and must be developed every five (5) years, and be used to inform the Five Year Consolidated Plan. In 2016, five cities in the Kansas City metropolitan area – Kansas City, Missouri, Kansas City, Kansas, Independence, Blue Springs and Leavenworth, Kansas – worked together with Mid-America Regional Council (MARC) to prepare this Plan. HUD required this analysis as it is more extensive than previous Analysis of Impediments reports that were previously required for the Five Year Consolidated Plan. As a result, the City is required to include the new AFFH in our Consolidated Plan and refile it with HUD.

Each year of the five year strategy the City of Independence is required to prepare a one-year Action Plan to notify citizens and HUD of planned (funded) activities for the upcoming program year. Each annual Action Plan also takes into account citizen and stakeholder input collected during an annual citizen participation process, and all actions proposed for funding must relate directly to the adopted Consolidated Plan. Each Action Plan is due to HUD annually by May 15. Due to delayed HUD appropriations, the City must submit this year's plan within 45 days of the funding announcement on June 14, 2017.   The Action Plan serves as the City’s application for CDBG and HOME Program funds. Pending HUD’s approval of the Consolidated Plan and first year Action Plan, the City will receive Community Development Block Grant (CDBG) and HOME Investment Partnerships (HOME) funds in an amount to be determined by federal formula.

The Council is being asked to adopt the five year Consolidated Plan, as well as, the first year Annual (2017-18) Action Plan of activities and allocations of funding. The proposed Action Plan represents the recommendation of staff and the CDBG Annual Advisory Committee for the allocation of public service, housing (minor home repair, code enforcement activities, and removal of dangerous buildings), community economic development and administrative dollars. In formulating its recommendation, staff and the Committee considered the applications submitted by local service providers and community input received during the citizen participation process. A public hearing was held on March 22, 2017 during which the proposed draft consolidated plan and annual action plan of recommended activities was available for public comment. An additional public notice with updated funding award amounts was published in the Examiner on June 17, 2017 which included an increase in funding for Public Facility Improvements and Job Training.

Additionally, the proposed ordinance authorizes the City Manager to make application to HUD for the available funding and execute the necessary written agreements, and authorizes the necessary appropriations.

Fiscal Impact:

Appropriation of $718,203is anticipated in CDBG funds, an additional $700,000 in previously unallocated CDBG funds, and $325,785 in anticipated HOME funds for a total of $1,743,988 upon award of 2017-18 entitlement funding agreements to the City by the Department of Housing and Urban Development.

Department:          Community DevelopmentContact Person:          Tom Scannell

City Clerk DepartmentApproved

Council Action:          Council Action:          Accepted

2017-21 Consolidated Plan and 2017-18 Annual Action Plan Ordinance