Public Hearing on Fiscal Year 2024-2025 Annual Action Plan Including Community Development Block Grant (CDBG) Funding Recommendations
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HHSC Memorandum Neighborhood Resources - Memo No. NR24-010 Date: April 10, 2024 To: Housing and Human Services Commission Thru: Leah Powell, Neighborhood Resources Director Riann Balch, Community Resources Senior Manager From: Karin Bishop, Community Development Senior Program Manager Subject: Public Hearing on Fiscal Year 2024-2025 Annual Action Plan Including Community Development Block Grant (CDBG) Funding Recommendations Background: Each year, the City of Chandler receives federal CDBG funding, administered by the United States Department of Housing and Urban Development (HUD), to develop viable urban communities by providing decent housing and a suitable living environment, and by expanding economic opportunities, principally for persons with low- and moderate- income. Funds support a wide range of community development activities directed toward revitalizing neighborhoods, economic development, and providing improved community facilities and services. As a prerequisite for receiving CDBG funding, the City of Chandler is required to prepare and submit an Annual Action Plan that serves as the formal application for the use of entitlement funds that are received by the City of Chandler. The Annual Action Plan defines the one-year activities in relationship to the five-year goals and objectives of the 2020-2025 Consolidated Plan approved by City Council on June 25, 2020. From January 22, 2024, through March 13, 2024, the city conducted a public survey to identify community development priorities in Chandler. The survey, which was available in English and Spanish, was distributed widely through mechanisms including the city's website and social media, public facilities such as libraries, advisory boards and commissions, as well as through community partners including the Chandler Unified School District and non-profit organizations. Responses were received from 98 individuals; a summary is included in the draft Annual Action Plan document. Seventy-two percent of respondents were Chandler homeowners, and 18 percent were Chandler renters. Creating and preserving housing for all incomes was identified as the top priority followed closely by maintaining owner-occupied housing. Memo No. NR24-010 April 10, 2024 Page 2 In compliance with HUD regulations and the Citizen Participation Plan, the city is holding a 30-day public comment period regarding the draft FY 2024-2025 Annual Action Plan, which includes CDBG funding recommendations based on anticipated formula funding for FY 2024–2025. The public comment period began Friday, March 15, 2024, and ends on Sunday, April 14, 2024. In addition, a public hearing was held on March 6, 2024, during the development of the FY 2024-2025 Annual Action Plan, and a second public is scheduled for April 10, 2024, to ensure multiple opportunities for input from the community regarding the draft FY 2024–2025 Annual Action Plan. The draft FY 2024-2025 Annual Action Plan is available for review on the city’s website at: https://www.chandleraz.gov/residents/neighborhood-resources/community- development/plans-and-reports. Hardcopies of the annual action plan are also available upon request. Public comments received during the public comment period will be included in the finalized report submitted to HUD. Discussion: To date, HUD has not released the FY 2024-2025 annual allocation to Grantees. At HUD’s guidance, the City of Chandler has prepared funding recommendations and a contingency plan based on the anticipated formula funding that it received in the prior fiscal year. A total of $1,343,477 in CDBG funding recommendations are included in the FY 2024-2025 Annual Action Plan. The city will utilize $268,695 for program administration, $201,521 for Public Services, and $873,261 for Capital Projects, Housing, and Neighborhood Revitalization. The contingency plan states that any increase or decrease in CDBG funding for FY 2024-2025 will be applied to the City of Chandler’s Community Navigation and Client Services Program, adhering to the fifteen percent statutory cap for public service activities, and to Homeowner Rehabilitation Program Activities. The formula amount for program administration will also be adjusted based on the total CDBG allocation to the city. The city’s FY 2024-2025 CDBG Program Descriptions and Funding Recommendations are also attached.