CC - Agendas - City Council - REGULAR - 5/14/2019

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I 11.B.b I BACKGROUND Prescott comprises about 8.3 square miles of land and has over 40,000 residents. The community's residents are older; more educated, and generally have higher income than the residents of Yavapai County. Nonetheless, Prescott does have significant low-income households. The community needs6,3 found within Prescott revolve heavily around the lack of affordable housing, homelessness resources, a and social service needs. w The City of Prescott Community Development Department serves as the lead agency for the administration of CDBG funds. The department, through an extensive public process, coordinates the development of the five year Consolidated Plan, which serves as a five-year strategy to address the needs of low-income residents in Prescott. The plan identifies community needs and provides a 0 strategy to address those needs using CDBG, as well as other federal, state, and local resources. In addition to the Consolidated Plan, the City prepares an annual Action Plan. The Action Plan describes v how funds will be spent each year to address the needs identified in the Consolidated Plan. The Action Plan is submitted to HUD 45 days prior to the start of the City's fiscal year. 0 L RESOURCES a co The development of the 2015-2019 Consolidated Plan and this 2019-2020 Action Plan provide a 03 foundation for the use of federal, state and local resources to address community development priorities. The HUD Community Development Block Grant PY2019 allocation is projected at $244,622 03 (subject to change upon release of funding). _ Agencies requesting CDBG funds are advised that these are anticipated funding amounts; consequently, funds may be eliminated, reduced or increased when the actual HUD funding allocations for PY2019 occur. M Potential recipients of funds are advised that program administration requires that no expenditures or contracts for service are allowed before an actual CDBG PY 2019 sub-recipient agreement is signed or a "notice to proceed" is issued by the City of Prescott. N 03 A City and HUD CDBG program goal is to increase the ability to leverage federal, state and local funds >- to support community development and housing improvements. The following amounts are based on the anticipated funding and are subject to change: c L The funding allocation for CDBG Program Year 2019 is $244,622. Of this amount, a maximum of 15% ($36,693.30) may be used for public service projects; 20% for administrative costs ($48,924.40) which o. include legal notification, advertisements, fair housing workshop, administrator training, personnel and (non-construction) contractor costs. The balance ($159,004.30) will be programmed and available for 7. infrastructure development. The City will allow sub-recipients to bill for administrative costs so as not to reduce their original grant allocations. a In order to address community needs and the goals identified in the Consolidated Plan the City may augment CDBG funds using additional funding sources. These funding sources may include the City's General Fund, Public Works, capitol improvement one cent sales tax funds, and other local public and not for profit resources. 0 GOALS City of Prescott receives CDBG funding and also uses a variety of other local state and federal CDBG-PY 2019 Annual Action Plan CITY ors PRESCOTT Evui JNnoirl � -6- I Packet Pg. 144 I