HomeMy WebLinkAboutAttachment No. 1 Proposed FY2013-2014 Annual Action Plan ActivitiesAttachment No. 1
Impacts of Federal Sequestration on CDBG and HOME funding in FY2013-14
Federal Sequestration, which took effect on March 1, 2013, mandated an
unknown reduction to numerous federally -funded programs, including those
administered by the Housing and Grants Division. It is anticipated that the U.S.
Housing and Urban Development Department (HUD) will reduce the Community
Development Block Grant Program (CDBG) and HOME Investment Partnership
Program (HOME) entitlement funding for Fiscal Year 2013-2014 (July 1, 2013
through June 30, 2014).
HUD requires that the Annual Action Plan for CDBG and HOME be submitted to
the HUD by May 15, 2013. HUD also requires that the Action Plan list the
proposed activities to be granted funds, regardless if HUD has not released the
actual appropriations to the City. In order to comply with these requirements, the
City Council decided on which activities to fund by considering at least a 5%
reduction in funding to HOME and CDBG from the previous year awards. An
across-the-board reduction of at least 5% was suggested by HUD in March 2013.
The City Council implemented a "Decide then Rank" process to select and
prioritize CDBG activities after the Public Hearing held on March 19, 2013. The
process enabled City Council to select activities for funding and decide their
respective funding levels. The City Council would then rank each activity to
prepare for potentially deeper reductions in funding. Funding for activities ranked
in least priority would be eliminated first. However, partially funded activities
would be allowed if the activity was deemed feasible by staff. If the activity was
deemed infeasible, the remaining funds would not be appropriated until the next
allocation cycle.
CDBG Planning and Administration would receive 20% of the entitlement award.
However, any decrease (or increase) in funding will impact the CDBG Planning
and Administration line items proportionately. HOME Program activities, including
HOME Program Administration, would also be reduced (or increased) in
proportion to the HOME entitlement award.
The City Council will consider adopting a Resolution on May 7th that approves
the activities recommended for inclusion in the Action Plan (Exhibit "A" of the
Resolution). If funding was to increase, staff further recommends that those
funds be applied proportionally to the activities listed as part of the Resolution
that did not receive their full funding request. The Resolution would also delegate
the authority to approve the final funding allocations to the City Manager if they
are substantially consistent with the direction received by the City Council in the
process of adopting the activities proposed for the Annual Action Plan.