HUD CPD Reallocations and Annual Action Plan Amendment

HUD CPD Reallocations
Community Development Advisory Committee – 11.17.22

Presentation Overview
2
• Review procedural requirements
• Review Council investment policy
• Program performance updates (impacted programs)
• Staff reallocation recommendations
• CDAC discussion, consensus, and action

Procedural Requirements
3
• Underspent/underutilized funds and program income 
must be allocated in a timely manner
• Annual Action Plan Substantial Amendment required for 
reallocations
• Public participation per the Citizen Participation Plan
• CDAC recommendations to Council (today’s discussion)
• Council direction on recommendations (January/February)
• Council vote on Annual Action Plan Substantial 
Amendment (Spring)

Council Investment Policies
4
1. Apply future CDBG program income or remnant 
funding to sustain Physical Improvement Program
2. Apply future HOME program income or remnant 
funding to sustain Tenant Based Rental Assistance
3. Apply future CARES Act program income or 
remnant funding to Public Services for Vulnerable 
Populations
4. Limit annual grant applications to Public Services 
for Vulnerable Populations (15% CDBG allocation)
5. Utilize solicitations, cooperative purchasing, or 
IGAs for all other investments

5
Master Services Agreement Performance
$3,394,008 allocated (under contract)
- $2,109,811 expended
- $173,568 in review
= $1,110,629 original allocation remaining
+ $2,627,915 to contract (HOME ARP/ESG)
= $3,738,544 remaining
Forecasted to run out in May 2024 based 
on current service demand
• FY 2021-22 Accomplishments:
– 20,000 units of service
– 5,756 case management
– 5,753 shelter bed nights
– 3,335 employment services
– 1,334 calls to 24/7 line
– 852 persons housed
– 739 housing navigation services

Pandemic Small Business Assistance 
Performance
6
$300,000 allocated (round 1)
+ $653,110 allocated (round 2)
= $953,110 total allocation
- $280,595 expended
- $253,849 in review
= $418,666 remaining
Contract expired 11/1/22
• 13 businesses assisted
• $23,000 median amount of 
assistance
• COVID connection more 
difficult to show for businesses

7
Tenant Based Rental Assistance 
Performance 
$1,250,000 allocated (under contract)
- $314,120 expended
- $141,926 in-process
- $140,000 expected (Sept/Oct)
= $653,954 current remaining
+ $320,192 program income on hand
= $974,146 remaining
Funding forecasted to run out in January 
2024 based on current lease commitments
• 90 individuals in 45 
households rehoused
• Median rent = $1,220; 
median bedrooms = 1
• Applicant processing time is 
1.5 weeks
• Approval to lease-up time is 
9 weeks
• 5 households currently 
looking, 3 renewed

First Time Homebuyer Program 
Performance
8
• $643,590 allocated, $0 expended
• Market conditions inhibited ability to implement
• MAG Housing Update October 2022 data*:
– Sales transactions under $300,000 have decreased by 75% since 
2011
– From 2017-2022 median sale price increased 93%
– In areas of poverty there was a 126% increase
– Median sale price for single family units is around $435,000
– Over the past 5 years, an average of 25% of sales were cash
– In areas with poverty at 25% or more, 26% of the sales were cash
– 26% of the housing stock in the region is either seasonal or investor-
owned
– 1.2% of housing stock is short-term rentals
*Source:  https://azmag.gov/Programs/Maps-and-Data/Land-Use-and-Real-Estate/Housing-Data-Explorer

CDBG Reallocation Recommendations
9
• FY2020-21
– $2,358 remnant, eligible for public services (CARES Act 
Waiver)
– Staff Recommendation: Reallocate to CASS for Master 
Services Agreement
• FY2021-22
– $79,324.62 remnant
– Council Policy: Reallocate to Physical Improvement 
Program (future projects TBD)

CDBG Reallocation Recommendations
10
• CV-1
– $21,987.14 remnant
– Council Policy:  Apply to Public Services
– Staff Recommendation:  Reallocate to CASS for Master 
Services Agreement to sustain services
• CV-3
– $774,372.14 remnant
– Council Policy:  Apply to Public Services
– Staff Recommendation:  Reallocate the CASS for Master 
Services Agreement to sustain services

ESG Reallocation Recommendations
11
• FY2019-20
– $20,473.12 remnant
– Utilized by CAP for Rapid Rehousing (clean-up item)
• FY2020-21
– $14,384.22 remnant
– Utilized by CAP for Rapid Rehousing (clean-up item)
• Staff Recommendation:
• Propose new Council Policy that all new or remnant ESG funds 
after FY 2021-22 be allocated to CASS for the Master Services 
Agreement for long-term sustainability

HOME Reallocation Recommendations
12
• Program Income
– $320,192 on hand
– Council Policy:  Apply to Tenant Based Rental Assistance
– Staff Recommendation:  Reallocate to A New Leaf for TBRA
• FY2021-22
– $643,590 unspent
– Staff Recommendation:  Reallocate to A New Leaf for TBRA for 
sustainability
• Staff Recommendation:
• Propose new Council Policy that all new HOME funding be allocated to 
the TBRA for long-term sustainability (approximately $700K/year)

Summary of Staff Recommendations
13
Amount
Program
Year
Reallocate To
$2,358
CDBG
FY 2020-21
CASS for MSA
$79,324.62
CDBG
FY 2021-22
COG for Physical Improvement 
Program
$21,987.14
CDBG-CV1
FY 2020-21
CASS for MSA
$774,372.14
CDBG-CV3
FY 2020-21
CASS for MSA
$20,473.12
ESG
FY 2019-20
CAP for Rapid Rehousing*
$14,384.22
ESG
FY 2020-21
CAP for Rapid Rehousing*
$643,590
HOME
FY 2021-22
A New Leaf for TBRA
$320,192
HOME
Program Income
A New Leaf for TBRA
*Funding has already been expended, this is a clean-up item