CITY OF CHARLOTTESVILLE, VIRGINIA
                CITY COUNCIL AGENDA



  Agenda Date:         January 18, 2022

  Action Required:     Resolution

  Presenter:           Alex Ikefuna, Interim Director

  Staff Contacts:      Sam Sanders, Deputy City Manager
                       Alex Ikefuna, Interim Director
                       Erin Atak, Grants Coordinator

  Title:               FY2018-2019 CDBG Substantial Action Plan Amendment

Background:
This agenda item includes a substantial action plan amendment, a public hearing, and corrected
budget for the Community Development Block Grant (CDBG), received from the U.S. Department
of Housing and Urban Development (HUD).

On January 14, 2021, the City of Charlottesville was found to be noncompliant, for the second
consecutive year, with the CDBG timely expenditure requirements. HUD has noted that the City
of Charlottesville’s lack of timely performance as a deficiency. On December 23, 2021, it was
calculated that the City had an adjusted line of credit balance of 2.16 times the annual grant; an
adjusted balance of 1.50 is needed to be in compliance. The City is subject to HUD’s timeliness
sanctions policy. HUD will conduct its final timeliness test on the City of Charlottesville on May
2, 2022.

Discussion:
City staff is currently identifying immediate programs for funding to solve the City’s timeliness
concerns by May 2, 2021. The City has unexpended 2018 CDBG dollars totaling $140,585.49 and
upcoming unexpended 2022 CDBG dollars totaling $244,950.82; for a grand total of $385,536.31
from the delayed Belmont Neighborhood Franklin Street Sidewalk activity. These funds can be
reprogrammed back into the CDBG program budget to fund activities that are ready, as well as
address the City Council CDBG priorities and HUD CDBG National Objectives. Future funding
sources can later repay the Belmont Franklin Street Sidewalk construction activity.

To meet timeliness deadlines by May 2, 2022, reprogrammed funds must be spent down within
the next four-month period. City Staff is coordinating with City departments on eligible activities
and will return to City Council for final project approval.

Community Engagement:
Members of the public were given the opportunity to voice their opinions during the HUD-
mandated 30-day public comment period held December 12, 2021 through January 12, 2022.
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:
There will be no impact to the City of Charlottesville budget.

Recommendation:
Staff recommends approval of the CDBG budgets, as well as approval of the FY 2018-2019
substantial Action Plan Amendment of the 2018-2022 Consolidated Plan.

Alternatives: No alternatives are proposed.


Attachments:
   A. Resolution: Substantial Action Plan Amendment
                                    RESOLUTION
           Approving the FY 2018-2019 Community Development Block Grant
                         Substantial Action Plan Amendment
                          of the 2018-2022 Consolidated Plan


       BE IT RESOLVED that the Charlottesville City Council hereby approves the FY 2018

– 2019 Substantial Action Plan Amendment of the 2018-2022 Consolidated Plan. The

reprogrammed 2018 CDBG budget will be added into the 2018-2019 Annual Action Plan to

meet HUD spending deadlines under 24 CFR 570.902(a). No changes to the HOME budget

will be made at this time.




                                                                     Approved by Council
                                                                        January 18, 2022


                                                                      Kyna Thomas, CMC
                                                                         Clerk of Council