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HomeMy WebLinkAboutAgenda Report - April 7, 2021 C-21AGENDA ITEM (2,021 CITY OF LODI COUNCIL COMMUNICATION TM AGENDA TITLE: Adopt a Resolution Accepting Coronavirus Aid, Relief, and Economic Security (CARES) Act Community Development Block Grant (CDBG-CV) Funding and Appropriating Grant Funds in the Total Amount of $796,408 MEETING DATE: April 07, 2021 PREPARED BY: Community Development Director RECOMMENDED ACTION- Adopt a Resolution accepting the Coronavirus Aid, Relief, and Economic Security (CARES) Act Community Development Block Grant (CDBG-CV) funding and appropriating grant funds in the total amount of $796,408. BACKGROUND INFORMATION. In response to the COVID-19 crisis, Congress passed the $2 trillion Coronavirus Aid, Relief, and Economic Security Act including $5 billion for CDBG programs. The federal intent of the CDBG program is to develop viable urban communities by providing decent housing, a suitable living environment, and expanded economic opportunities, principally for low- and moderate -income persons, households, and neighborhoods. CDBG-CV funds have the same requirements, but must also either prepare, prevent, or respond to the COVID-19 crisis. All activities must still meet one or more of the following national objectives for the program: 1) benefit low- and moderate -income persons, 2) prevent or eliminate slums or blight, or 3) meet an urgent community development need that poses a serious and immediate threat to the health or welfare of the community. To reach these objectives, CDBG-CV funds may be used for a variety of community development activities, including acquisition of real property, rehabilitation of residential and nonresidential structures, construction of public facilities and infrastructure improvements, public services, and economic development and job creation/retention activities if there is a connection to preparing for, prevention, or responding to the COVID-19 crisis. The normal CDBG fifteen percent funding cap on public services was waived for CDBG-CV funds. The twenty percent cap on planning and administration activities still applies. The City expects to allocate approximately $160,000 CDBG-CV funds to program planning and administration. Staff submitted Amendment No. 2 to the CDBG Program 2019-2023 Consolidated Plan and Amendment No. 2 to the 2020-2021 Annual Action Plan (AAP) to the US Department of Housing and Urban Development (HUD) in December 2020. Two separate applications were released for public services from non-profit providers and small businesses including both for-profit and nonprofit businesses. Applications were scored and awards were announced at the March 3, 2021 City Council Meeting. FUNDING ALLOCATION: APPROVED: SZ Stephen Schwabauer, City Manager CABG -CV Grant April 21, 2021 Page 2 of 2 The allocations of the CDBG-CV funding have been issued to CDBG entitlement jurisdictions based on the normal formula allocation and on COVID-19 related impacts. On April 2, 2020, the City of Lodi received $380,772 in CDBG-CV funds and on September 11, 2020, the City received $415,636 in additional CDBG-CV funds. In total, Lodi has been allocated $796,408. Funds must be expended by June 30, 2021. FISCAL IMPACT: The CDBG-CV grant will provide a total of $796,408 in funding FUNDING AVAILABLE: CDBG-CV Grant Revenue: 35000000.56304 Expenditure: 35099000.72990 ($651,408) 35099000.72450 ($145,000) Andrew Keys Andrew Keys Deputy City Manager/Internal Services Director John R. ella Monica Jr. Coram ity Development Dire or Signature: a,,,,,dirw,,,r XV�Abj Email: akeys@lodi.gov RESOLUTION NO. 2021-88 A RESOLUTION OF THE LODI CITY COUNCIL ACCEPTING THE CORONAVIRUS AID, RELIEF, AND ECONOMIC SECURITY (CARES) ACT COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG-CV) FUNDING; AND FURTHER APPROPRIATING FUNDS WHEREAS, the City of Lodi has been awarded $796,408 from the Coronavirus Aid, Relief, and Economic Security (CARES) Act Community Development Block Grant ("CDBG- CV") funding from the US Housing and Urban Development (HUD); and WHEREAS, on April 2, 2020, the City of Lodi received $380,772 in CDBG-CV funds; and WHEREAS, on September 11, 2020, the City received $415,636 in additional CDBG-CV funds; and WHEREAS, the City submitted Amendment No. 2 to the CDBG Program 2019-2023 Consolidated Plan and Amendment No. 2 to the 2020-2021 Annual Action Plan to the US Department of Housing and Urban Development in December 2020; and WHEREAS, staff is recommending the City Council accept the CDBG-CV grant funds from HUD and appropriate the funds as follows: Revenue: 35000000.56304 ($796,408) Expenditures: 35099000.72990 ($651,408) 35099000.72450 ($145,000) NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Lodi does hereby accept CDBG-CV grant funds in the amount of $796,408 and appropriate the funds as set forth above; and BE IT FURTHER RESOLVED, pursuant to Section 6.3q of the City Council Protocol Manual (adopted 11/6/19, Resolution No. 2019-223), the City Attorney is hereby authorized to make minor revisions to the above -referenced document(s) that do not alter the compensation or term, and to make clerical corrections as necessary. Dated: April 7, 2021 I hereby certify that Resolution No. 2021-88 was passed and adopted by the City Council of the City of Lodi in a regular meeting held April 7, 2021, by the following vote: AYES: NOES: ABSENT: ABSTAI N COUNCIL MEMBERS — Chandler, Hothi, Khan, Kuehne, and Mayor Nakanishi COUNCIL MEMBERS — None COUNCIL MEMBERS — None COUNCIL MEMBERS — None JENNIFER CUSMIR City Clerk 2021-88