CITY OF CHARLOTTESVILLE, VIRGINIA
                CITY COUNCIL AGENDA



  Agenda Date:         February 16, 2021

  Action Required:     Resolution: Minor Amendment 2020-2021 Action Plan

  Presenter:           Erin Atak, Grants Coordinator

  Staff Contacts:      Erin Atak, Grants Coordinator

  Title:               CDBG 2020-2021 AHIP Contingency Plan

Background:
This agenda item includes a resolution for the FY2020-2021 minor action plan amendment
Community Development Block Grant (CDBG) funds to be received by the City of Charlottesville
from the U.S. Department of Housing and Urban Development (HUD).

In Fall 2019, the City of Charlottesville advertised a Request for Proposals (RFP) based on the
priorities set by Council on September 16, 2019. The priorities were for affordable housing
(priority for persons who are 0-50 percent AMI, including but not limited to low income housing
redevelopment), support for the homelessness and those at risk of homelessness, workforce
development (including but not limited to efforts to bolster section 3 training opportunities and
partnerships with the City’s GO programs, support for programs that aid in self-sufficiency,
including but not limited to quality childcare), microenterprise assistance, and mental health and
substance abuse services.

In February and March 2020, the CDBG/HOME Task Force reviewed and recommended housing
and public service projects for funding and the Strategic Action Team reviewed and recommended
economic development projects for funding. On May 4th, 2020, City Council reviewed and
approved the CDBG and HOME budget for the 2020-2021 HUD Annual Action plan submittal.

Discussion:
CDBG FY2020-2021 Albemarle Home Improvement Program (AHIP) proposes to enact the
contingency plan to spend their remaining balance of CDBG funding on one substantial
rehabilitation project. Due to client concerns from COVID, and hesitancy requiring Deed of Trusts,
the program experienced setbacks affecting program timeliness. The contingency plan will assist
AHIP and the City meet HUD CDBG timeliness deadlines.

All CDBG applicants are required to provide reasonable assurances regarding the achievement of
objectives in three categories: 1) Effectiveness and efficiency of operations; 2) Reliability of
reporting for internal and external use; and 3) Compliance with applicable laws and regulations.
All non-federal entities must submit internal controls documents to comply with federal statutes,
regulations, and the terms and conditions of the CDBG federal award. Internal controls are a
process effected by an entity’s oversight body, management, and other personnel that provides
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reasonable assurance that the objectives of an entity will be achieved. These objectives and risks
can be classified by operations, reporting, and compliance. To assist with CDBG timeliness
requirements, HUD 24 CFR 570.902(a), CDBG subrecipients may request to enact the
contingency plan from the submitted internal controls checklist.

Community Engagement:
In accordance with the CDBG/HOME Citizen Participation Plan, staff reviewed the AHIP
Contingency Plan during the RFP process and discussed with AHIP staff on CDBG Timeliness. A
minor Action Plan Amendment will be submitted for the 2020-2021 fiscal year. The minor Action
Plan Amendment was advertised for five days under the covid-19 public notice waiver between
February 1-5, 2021. The full action plan can be viewed on the City Website through the following
link. Minor Action Plan Amendments do not require a public hearing.

The Action Plan was advertised for a thirty-day comment period (March 26th – April 26th 2020)
before being sent to HUD for approval. The Action Plan was sent to Charlottesville Neighborhood
community members for comment. The Housing Directors Council had an opportunity to make
comments on the Action Plan virtually during the thirty-day comment period. Comments received
from Housing Directors were incorporated into the Action Plan. HUD approved the Action Plan
on August 14, 2020.

Alignment with City Council’s Vision and Strategic Plan:
Approval of this agenda item aligns directly with Council’s vision for Charlottesville to have
Economic Sustainability, A Center for Lifelong Learning, Quality Housing Opportunities
for All, and A Connected Community. It contributes to variety of Strategic Plan Goals and
Objectives including: Goal 1: Inclusive, Self-sufficient Community; Goal 3: Beautiful
Environment; Goal 4: Strong, Diversified Economy; and Goal 5: Responsive Organization.
Budgetary Impact:
None

Recommendation:
Staff recommends approval of AHIP’s CDBG FY2020-2021 change of scope of work to assist
with CDBG program compliance, HUD 24 CFR 570.902(a).

Alternatives:
No alternatives are proposed.
Attachments:
Resolution for Minor 2020-2021 Action Plan Amendment




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                                    RESOLUTION
             Approval of FY 2020-2021 Minor Annual Action Plan Amendment


       BE IT RESOLVED, that the Charlottesville City Council hereby approves the FY

2020 - 2021 Minor Action Plan Amendment of the 2018-2022 Consolidated Plan. The

contingency plan for Albemarle Home Improvement Program (AHIP) will assist the City and

the subrecipient meet CDBG timeliness goals. The remaining 2020-2021 CDBG AHIP balance

is to be spent on one home rehabilitation project.




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