CITY OF CHARLOTTESVILLE, VIRGINIA CITY COUNCIL AGENDA Agenda Date: May 4, 2020 Action Required: Resolution Approval Presenter: Erin Atak, Grants Coordinator Staff Contacts: Erin Atak, Grants Coordinator Title: Amendment to 20-21 CDBG and HOME Annual Action Plan Background: The Consolidated Plan sets forth goals to support our community development needs over a five- year period (2018-2022) for low- and moderate-income individuals in the City and counties that make up the Planning District. The current five-year Consolidated Plan was adopted the May 7, 2018 City Council Meeting. Discussion: Each year, localities are required to complete an Annual Action Plan that details goals and objectives to be carried out in the upcoming program year. The Action Plan serves as the City’s application for the Community Development Block Grant (CDBG) funds and the Thomas Jefferson Planning District’s application for HOME funds. It is due, in its final form, to HUD on May 15th or after the HUD allocations have been published. The City of Charlottesville, on behalf of HUD, has been awarded an allocation of $419,367 in Community Development Block Grant funds (CDBG) and $80,594 in HOME funds to provide assistance for housing, community and economic development activities, and assistance for low- and moderate- income persons and special needs populations within the locality. The funding aims to provide decent housing and suitable living environments while expanding economic opportunities for low- and moderate-income and special needs populations, including people living with HIV and AIDS. Additionally, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) makes available $5 billion in supplemental CDBG funding for grants to prevent, prepare for, and respond to the coronavirus (CDBG-CV grants). The City of Charlottesville has been authorized an allocation of $246,699 by the CARES Act to respond to the growing effects of the historic public health crisis (COVID-19). To meet HUD requirements, CDVG-CV activities must be formally selected by the CDBG/HOME Taskforce and Strategic Action Team by July 30, 2020. Public service assistance and economic development assistance are eligible activities under CDBG-CV, meet council priorities, and are consistent with the Consolidated Plan. In order for the use of funds to be committed and expended within HUD deadlines, City Council needs to approve the change of the 20-21 Annual Action Plan to incorporate this use of funds. In the best interest of the City’s CDBG-CV Program, staff recommends approval of incorporating CDBG-CV activities into the FY20-21 Action Plan. CDBG-CV funds can then fund activities to prevent, prepare for, and respond to the coronavirus. This one change to the current action plan is needed to facilitate the expenditure of funds in a timely manner. Alignment with Council Vision Areas and Strategic Plan: Approval of this agenda item aligns directly with Council’s vision for Smart, Citizen Focused Government, America’s Healthiest City, and Economic Sustainability. Expected outcomes include assistance to businesses, including special economic development assistance, building and public facility improvements, and increased public services in response to the Coronavirus. The project also will help realize the following Strategic Plan objective: 2.3 Improve community health and safety outcomes by connecting residents with effective resources, 1.4 Enhance financial health of residents, and 1.3 Increase affordable housing options, Community Engagement: A request for proposals was held for CDBG-CV projects. As required by the Citizen Participation Plan, applications received were reviewed by the CDBG Task Force and Strategic Action Team (SAT). A 5-day public comment period was also held. The CDBG Task Force and SAT will review and provide support for eligible CDBG-CV activities. As required by the HUD Citizen Participation Plan, a 5-day public comment period was held. Budgetary Impact: The proposed addition of the CDBG-CV program will leave no budgetary impact for the CDBG and HOME funds and activities, nor City funds. Recommendation: Staff recommends approval of the action plan amendment appropriation of funds for the CDBG-CV program. Alternatives: No alternatives. Attachments: FY 20-21 Action Plan Amendment FY 20-21 Action Plan Amendment Resolution FY 20-21 Action Plan Amendment to Amend Existing HOME Project Public Comments accepted February 20 through March 5, 2016. AP-26 ADMINISTRATION Amending Existing Plan The Draft FY2020-2021 Action Plan will be amended to include the CDBG-CV funding for coronavirus response. No budgetary impact will occur to the CDBG and HOME allocations as recommended by the CDBG/HOME Taskforce. The City of Charlottesville will be receiving a total CDBG-CV allocation of $246,699, which will be divided into three pots of coronavirus funding categories: public services, economic development activities, and administrative/planning. CDBG-CV public service activities will receive a total of $98,679.60; economic development projects will receive a total of $98,679.60, and administrative/planning activities will receive a total of $49,399.80. Citizen Participation This amendment to the Action Plan was made available for public comment for 5 days, April 28, 2020 through May 5, 2020. The following notice appeared in the Daily Progress on Tuesday, April 28, 2020. NOTICE OF PUBLIC COMMENT PERIOD DRAFT AMENDMENT TO 2020-2021 ACTION PLAN FOR THE CITY OF CHARLOTTESVILLE AND THE THOMAS JEFFERSON PLANNING DISTRICT COMMISSION 5-DAY COMMENT PERIOD: 4-28-20 through 5-4-2020 The City of Charlottesville and the Thomas Jefferson Planning District Commission invite public comment on the Draft Amendment to the 2020-2021 Action Plan to provide further details on the addition of Community Development Block Grant Coronavirus (CDBG-CV) activities to the 2020- 2021 Action Plan. The CARES Act made available $5 billion in CDBG-CV funds. HUD is immediately allocating $2 billion based on the fiscal year 2020 CDBG formula. Given the immediate needs faced by the Charlottesville community, HUD has announced an allocation of $246,699 to the City of Charlottesville. The City of Charlottesville will coordinate with state and local health authorities before undertaking any activity to support state or local pandemic response. Eligible activities funded with CDBG-CV will prevent, prepare for, and respond to Coronavirus. The FY2020-2021 Action Plan will be amended to include the emergency CDBG-CV funding to fund projects supporting pandemic response. One virtual Public Hearing will be held at the following time and location: Charlottesville City Council, Monday, May 4, 2020 at 7:00pm in City Council Chambers, 605 East Main Street. Copies and additional information may be obtained at https://www.charlottesville.gov/678/CDBG-HOME-Programs or by contacting Ms. Erin Atak, City of Charlottesville, at (434) 970-3093. Reasonable accommodations for persons with disabilities and non-English speakers will be provided if requested. A RESOLUTION AMENDING THE CITY OF CHARLOTTESVILLE’S FY 20-21 ANNUAL ACTION PLAN WHEREAS, the City of Charlottesville must submit Annual Action Plans to the Department of Housing and Urban Development describing the use of Community Development Block Grant and HOME Investment funds; BE IT RESOLVED by the Council of the City of Charlottesville, Virginia that the FY 20-21 Annual Action Plan be amended as follows: FY 20-21 Action Plan - CDBG-CV funds totaling $246,699 will be awarded to activities supporting economic development and public service projects in response to coronavirus. CDBG-CV funds will be divided into three broad categories: economic development activities, public service activities, and administrative/planning support.