CDBG funds in flux here
With no allocation yet, adjustments needed for legal deadlines
Normally, the Yuma City Council approves a plan for distribution of Community Development Block Grant funds in April, but this year the city hasn’t even received its allocation.
Staff has had to make adjustments to accommodate statutory deadlines, according to Rhonda Lee Jones, neighborhood services manager. She recently briefed the council on the federal funding status of the CDBG and HOME programs, as well as the necessary changes made.
President Trump signed the Consolidated Appropriations Act of 2017 on May 5, providing the U.S. Department of Housing and Urban Development with funding for the CDBG and HOME programs. HUD has until July 5 to issue the final allocations.
The deadline to submit an action plan for CDBG funds is Aug. 16. “We must submit our budget by Aug. 16,” Jones clarified. “We’re not ready to do anything because we don’t have an allocation.”
Without knowing exactly how much the city will receive, staff cannot pin down a budget.
“How will we meet deadlines?” Jones asked. The Citizen Advisory Board has recommended proposing funding ranges instead of set amounts and later adjusting the budgets for the HUD system when the city has its allocation.
Consequently, staff is recommending projects that fall within an estimated allocation of $563,000 to $848,000. The city uses the funds, both through the city and nonprofit organizations, for housing activities, public services, code enforcement, economic development and other activities “that improve living conditions for low- and moderate-income people.”
The proposed plan gives priority to the Mesa Heights Neighborhood Revitalization Area, although there are some projects that take place in other target neighborhoods. This community is roughly bounded by 17th Street, Arizona Avenue, 24th Street and 4th Avenue.
The initial request for this project was for $631,382; the recommended range is $396,000 to $609,500. The project would include: Housing Rehabilitation, $340,380; Code Enforcement, $25,602; Rental Inspection, $25,000; Voluntary Demolition, $10,000; Acquisition/Rehab/Resale, $10,000; Mesa Heights Infrastructure, $200,000; Neighborhood Outreach, $12,900 (Public Services); and Neighborhood Cleanup, $7,500 (Public Services).
In addition, the Western Arizona Council of Governments requested $30,000 for the “A Hand Up: Building Sustainable Homeowners” program aimed at Mesa Heights residents. The recommended range is $15,000 to $20,000.
Other requests include one from WACOG Fair Housing for $15,000; the recommended range is $10,000 to $15,000. Catholic Community Services requested $18,654 for senior homedelivered meals; the recommended range is $7,000 to $9,000.
The Healing Journey Youth Empowerment Program requested $40,000; the recommended range is $8,000 to $10,000. The Southern Arizona Association for the Visually Impaired REAL Program for blind children requested $15,000; the recommended amount remains the same.
The city is allowed a 20 percent cap for planning and administration. Staff requested $150,200 for this, but is recommending a range of $112,000 to $169,500.
The HOME Investment Partnerships Program provides HUD grants to fund a wide range of activities — often in partnership with local nonprofit groups — including building, buying and/or rehabilitating affordable housing for rent or homeownership or providing direct rental assistance to low-income people, according to hud.gov.
“HOME is new funding for the city,” Jones said.
Applications for this program are currently being reviewed. A public hearing for the HOME budget action plan will be held July 10, followed by anticipated council action on July 19.