HomeMy WebLinkAboutPR 24118: TO CHANGE BLOCK GRANT WITH CDBG AND HOME ANNUAL PROGRAM START DATE FROM JUNE 1ST TO OCTOBER 1ST s /
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INTEROFFICE MEMORANDUM
Date: June 4, 2025
To: The Honorable Mayor and City Council
Through: Ronald Burton, City Manager, CPM
From: Pamela Langford, Director of Development Services
RE: PR#24118
Introduction:
This agenda item seeks the City Council's approval to amend the annual Community
Development Block Grant(CDBG) and Home Investment Partnerships Program(HOME) annual
start date from June 1st to October 1st.
Background:
The City of Port Arthur has received funding from the Community Development Block Grant
Program for fifty years and the HOME Program for approximately twenty years. The CDBG
and HOME Programs have permitted the city to accommodate the needs of its low- and
moderate-income residents and neighborhoods.
Port Arthur takes pride in using its federal funds promptly and prudently. However, since 2021,
the city's CDBG and HOME allocations have been delayed, forcing the program year to start as
late as August or September instead of June 1st. The two or three-month delay causes CDBG
and HOME projects to begin as late as September or October. The delay makes it difficult to
satisfy the Department of Housing and Urban Development's CDBG annual timeliness
expenditure test, which is conducted every April. According to CDBG regulations at 24 CFR
570.902, a CDBG Entitlement grantee "must have a balance no greater than one and one-half
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(1.5)times its annual grant remaining in the Line of Credit, 60 days prior to the end of the
program year".
Program Year change:
It is in the city's best interest to request a change in its CDBG and HOME start date from June
1st to October 1st. The new start date will permit the CDBG and HOME Programs to align with
the city's annual fiscal year and allow the Department of Housing and Urban Development time
to announce and release the actual grant amounts. The new start date will change the city's
annual timeliness test date from April to August.
According to 24 CFR 91.10, "Once a program year is established,the jurisdiction may either
shorten or lengthen its program year to change the beginning date of the following program year,
provided that it notifies HUD in writing at least two months before the date the program year
would have ended if it had not been lengthened or at least two months before the end of a
proposed shortened program year."
A notice in the Port Arthur Newspaper informed citizens of the proposed program year change.
Citizens were given thirty days, December 12, 2024—January 13, 2025,to ask questions and
submit comments to the Grants Management Office. No comments were received.
On May 19, 2025, the Department of Housing and Urban Development approved Port Arthur's
request to amend its Program Year.
Budget Impact:
There is no budget impact on the CDBG and HOME Programs.
Recommendation:
It is recommended that the City Council approve PR#24118.
PR#24118
June 4,2025-MEE-Grants Management
Page 1
RESOLUTION NUMBER
A RESOLUTION AUTHORIZING THE CITY MANAGER TO CHANGE
THE COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) AND
HOME INVESTMENT PARTNERSHIPS PROGRAMS(HOME)ANNUAL
PROGRAM START DATE FROM JUNE 1ST TO OCTOBER 1ST.
WHEREAS,the Community Development Block Grant(CDBG) Program is a grant
program that provides annual funds to cities, counties, and states to develop viable communities.
The CDBG program's goal is to improve the lives of low- and moderate-income residents by
providing decent housing, creating a suitable living environment, expanding economic
opportunities, and addressing critical community needs; and,
WHEREAS, the Home Investment Partnerships Program (HOME)provides formula
grants to states and localities that communities use—often in partnership with local nonprofit
groups to fund a wide range of activities, including building,buying, and/or rehabilitating
affordable housing for rent or homeownership or providing direct rental assistance to low-
income people; and,
WHEREAS, Port Arthur has been a recipient of the CDBG Grant for over fifty years and
approximately twenty years for the HOME Grant Program; and,
WHEREAS,before its program year 2021, Port Arthur would receive a written grant
agreement with its annual CDBG and HOME allocations from the Department of Housing and
Urban Development before or around the June lst program year start date. Since the 2021
program year, Port Arthur has received its grant allocation agreements in either August or
September. The two- or three-month delay jeopardizes the city's ability to meet its annual
CDBG timeliness expenditure test that is conducted every April. The delay also forces the
CDBG and HOME projects to start later; and,
WHEREAS, according to 24 CFR 91.10, "Once a program year is established, the
jurisdiction may either shorten or lengthen its program year to change the beginning date of the
PR#24118
June 4,2025-MEE-Grants Management
Page 2
following program year,provided that it notifies HUD in writing at least two months before the
date the program year would have ended if it had not been lengthened or at least two months
before the end of a proposed shortened program year"; and
WHEREAS,the Department of Housing and Urban Development has approved Port
Arthur's request to amend its Program Year Start Date(PYSD). Please see Exhibit"A"; and,
WHEREAS, it is in the city's best interest to request a change in its CDBG and HOME
start date from June 1st to October 1st. The new start date will permit the CDBG and HOME
Programs to align with the city's annual fiscal year and allow the Department of Housing and
Urban Development time to announce and release the actual CDBG and HOME grant amounts.
The new start date will change the city's annual timeliness test date from April to approximately
August every year; and
WHEREAS, citizens were given thirty days to comment on the program change; and,
WHEREAS, the City Council must designate an official to sign all documents related to
the amended program year start date from June 1' to October 1 st
NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF PORT ARTHUR,TEXAS:
Section 1. THAT the facts and opinions in the preamble are true and correct.
Section 2. THAT the City Council hereby amends the program year start date from June
1 St to October 1st
Section 3. THAT the City Manager is designated to sign all documents in
connection with amending the annual CDBG and HOME program year start date to October 1st
Section 4. THAT a copy of the caption of this Resolution be spread upon the minutes of
the City Council.
PR#24118
June 4,2025-MEE-Grants Management
Page 3
READ,ADOPTED, AND APPROVED this day of
A.D., 2025, at a Regular Meeting of the City Council of the City of
Port Arthur, Texas, by the following vote:
AYES: MAYOR
COUNCILMEMBERS:
NOES:
MAYOR
ATTEST:
SHERRI BELLARD
CITY SECRETARY
APPROV + RM:
ROXANN PAIS COTRONEO
CITY ATTORNEY
APPROVED FOR ADMINISTRATION:
B/0/
RO RTO ,
MANAGE
xV
PAMELA LANGFORD y
ASSISTANT CITY MANAGER—OPERATIONS/
DIRECTOR OF DEVELOPMENT SERVICES
PR#24118
June 4,2025-MEE-Grants Management
Page 4
APPROVED AS FOR AVAILABILITY OF FUNDS
.11 641---a-d t" `Tv
DA BOSWELL,MA,IC A-CM
DIRECTOR OF FINANCE
S:\grants2\Resolution'kesolution to amend the CDBG and HOME program start date.docx
EXHIBIT "A"
Mary Essex
From: Swearington, Darlene B<Darlene.B.Swearington@hud.gov>
Sent: Monday, May 19, 2025 9:41 AM
To: Mary Essex
Cc: Swearington, Darlene B
Subject: [NON-CoPA]Program Year Start Date: Port Arthur
Good morning, Mary,
Happy to report that the City's PYSD has been changed to October 1st
Asa reminder, the next timeliness test date is August 2. The CAPER will be due 90 days after the program year ends.
Thanks for your patience on this.
CDBG Darlene Swearington, M.S. AICP
Senior CPD Representative
U.S. Department of Housing and Urban Development
1331 Lamar Street, Suite 550- Houston, Texas 77010
Work: (713) 718-3121 Email: Darlene.B.Swearington@hud.gov
1
THURMAN BILL BARTIE,MAYOR �'� RONALD BURTON,CPM
DONEANE BECKCOM, City of Os CITY MANAGER
MAYOR PRO TEM PI\
jJ SHERRI BELLARD,TRMC
COUNCIL MEMBERS: CITY SECRETARY
WILLIEBAELEWIS,JR. Ort rthur
TIFFANY L.HAMILTON EVERFIELD ROXANN PAIS COTRONEO
HAROLD L.DOUCET,SR. Texas CITY ATTORNEY
THOMAS KINLAW,III
DONALD FRANK,SR.
February 5, 2025
Ms. Stacia Johnson
U. S. Department of Housing and Urban Development
Houston Field Office, Region VI
1331 Lamar Street, Suite 550
Houston, Texas 77010
Dear Ms. Johnson:
Subject: Request to change the start date for the City of Port Arthur's Community Development Block
(CDBG) and HOME Investment Partnerships Program (HOME) Grants from June Is'to October Ist
The City of Port Arthur has received funding for the Community Development Block Grant Program for
fifty years and the HOME Program for approximately twenty years. The CDBG and HOME Programs have
permitted the city to accommodate the needs of its low—and moderate-income residents and communities.
Port Arthur takes pride in using its federal funds promptly and prudently. However, in the past few years, the
city's CDBG and HOME allocations have been delayed, forcing us to start our program year as late as
August or September instead of June 1st. The delay significantly jeopardizes the city's annual timeliness test
in April and delays project start dates.
According to 24 CFR 91.10(b), "Once a program year is established, the jurisdiction may either shorten or
lengthen its program year to change the beginning date of the following program year, provided that it
notifies HUD in writing at least two months before the date the program year would have ended if it had not
been lengthened or at least two months before the end of a proposed shortened program year."
Port Arthur believes it is in its best interest to request a change in its CDBG and HOME start date from June
1st to October 1 St. The new start date will permit Port Arthur to align the CDBG and HOME programs with
the city's annual fiscal year, which runs from October 1st to September 30th. We believe that the revised start
date will enable us to allocate resources efficiently and adequately and successfully deliver the CDBG and
HOME programs for the benefit of our community. Your assistance in accommodating this request is crucial
to ensuring the seamless implementation of these programs.
Thank you for your attention to the matter. We appreciate your ongoing support and are committed to
working closely with the Department of Housing and Urban Development to achieve our shared goals.
Please do not hesitate to reach out if you have any questions or require further information regarding this
request.
Sinc
41110;*
R�nand i , CPM
City .n.ger
S:Igrants2150th Year-2024 Program YearlCorrespondence to HUDIRequest to change CDBG and HOME start date.doc
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WEDNESDAY DECEMBER 11,2024/THE NEWS
Public Notices f Public Notices Public Notices
utive Director's decision and I future public notices mailed by Year start date from June 1 to
* for requesting a contested s the Office of the Chief Clerk. In October 1 st.
case hearing. A person who addition.you may request to be I According to 24 CFR 91.10,
may be affected by the facility i placed on: (1) the permanent ' °Once a program year is es- .
is entitled to request a con- mailing list for a specific appli- tablished. the jurisdiction may I
tested case hearing from the cant name and permit number either shorten or lengthen its
commission.A contested case and/or(2)the mailing list for a program year to change the
hearing is a legal proceeding specific county. Tc be placed beginning date of the following
similar to a civil trial in state tics- on the permanent and/or the program year, provided that it
irict court county mailing list.clearly spec- notifies HUD in writing at least
To Request a Contested Case rfv which list(s) and send your two months before the date the
Hearing, You Must include I request to TCEQ Office of the program year would have end-
The
Following Items in Your 4 Chief Clerk at the address be- I ed if it had not been lengthened I
Request: your name, ad- ! low. or at least two months before
dress, phone number; appli- Information Available On- the end of a proposed short-
cant's
name and permit num- line. For details about the sta- ened program year."
ber,the location and distance ' tus of the application, visit the The new start date will permit
of your property/activities rel• Commissioners' Integrated Port Arthur to align the CDBG
ative to the facility:a specific I Database (CID) at www.tceq. ; and HOME programs with the
description of how you would texas.gov/goto/cid, Once you city's annual fiscal year, which
be adversely affected by the have access to the CID using runs from October 1 St to Sep-
f icility in a way not corn- ! the above link.. enter the per- i tember 30th.
mon to the general public; a rnit number for this application, The comment period begins De-
list of all disputed issues of which is provided at the top of cember 12,2024. It ends Janu-
fact that you submit during this notice. ary 13,2025,at 5:00 p.m
A the comment period: and i Agency Contacts and Infor- j Comments should be emailed
the statement "[Uwe) request mation. All public comments to Mary Essex, Grants Manag-
e contested case hearing." and requests must be sub-I er at grantsmanagemennt.org
If the request for contested milled either electronically or mail to Grants Management.
case hearing is filed on behalf at wwwl4.tceq.texas.gov/ } P 0 Box 1089:Port Arthur,Tex-
, of a group or association.the epic/eComment/or in writing as 77641-1089
request must designate the to the Texas Commission on
group's representative for Environmental Quality,Office Port Arthur News:
receiving future correspon- of the Chief Clerk, MC-105, Dec.11.2024
Bence, identify by Name and P.O.Box 13087.Austin,Texas BLOCK GRANT
physical address an individu- 78711.3087, Please be aware �._
al member of the group who that any contact information you PUBLIC NOTICE
1 would be adversely affect- . provide including your name,
ed by the facility or activity; i phone number, email address NOTICE QF INTENTION
provide the information dis- and physical address will oe- TO ISSUE CERTIFICATES
cussed above regarding the come part of the agency's pub- OF OBLIGATION
affected members location I lic record. For more information
and distance from the facil- I about this permit application or NOTICE IS HEREBY GIVEN
ity or activity; explain how the permitting process please that the City Council of the
t. and why the member would call the TCEO s Public duce- City of Port Neches, Texas !
be affected: and explain how Lion Program,Toll Free at 800- (the "City) will meet at 1005
the interests the group seeks 6874040 or visit their website Meniman Street, Port Nech- I
to protect are relevant to the ; at www.tceq.texas govlgotof es, Texas. 77651 at 4:00 p.m.
group's purpose ipep. on February 6, 2025 which is
Follo-;ring the dose of ail ap- Further information may also be the time and place tentative-
plicable comment and request obtained from City of Port Arthur ly set for the final passage of
periods, die Executive Director at the mailing address 444 4th an ordinance authorizing the
will forward the application and ; Street.Port Arthur,Texas 77640 issuance by the City of its cer-
any requests for reconsider- ! or by calling Mr.Justin Thomas, tificates of obligation(the"Ger-
ation or for a contested case Landfill Superintendent at(409) tificates°)and such other action
hearing to the TCEQ Commis- 736-1383. as may be deemed necessary
sioners for their carts at Issued Date: November 20 to authorize the issuance of the
1 a scheduled Commission meet- 2024 Certificates, in the maximum
ino The Commission may only aggregate principal amount not j
grant a request for a contested Port Arthur News: to exceed $2,750,000 payable
case hearing or' issues the re- i Dec.11,2024 from ad valorem taxes and from
questor submitted. n their timely 1815A a limited pledge of a subordi-
comments that were nor subse- i — nate lien on the net revenues
quently withdrawn I PUBLIC NOTICE of the City's waterworks aria
If a hearing is granted, the I sanitary sewer system,bearing
subject of a hearing will be NOTICE OF COMMENT interest at any rate or rates not
limited to disputed issues of PERIOD FOR COMMUNITY to exceed the maximum inter-
tact or mixed questions of ; DEVELOPMENT BLOCK est rate authorized by law, as
fact and law that are relevant GRANT(CDBG)AND shall be determined within the
and material to the Commis- HOME INVESTMENT j discretion of the City Council of
sion's decision on the appli- PARTNERSHIPS PROGRAM the City at the time of issuance
cation submitted during the (HOME)CHANGE of the Certificates, and matur-
comment period. IN PROGRAM YEAR leg over a period not to exceed
Mailing List.it you submit pub- START AND ENDING forty (40) years from the date
lic comments, a request for a PERIOD of issuance, for the purposes
contested case hearing or a i of evidencing the indebtedness
reconsideration of the Exec- The City of Port Arthur will hold of the City for all or any part of
utive Director's decision. you a 30-day comment period re- the costs associated with the(i)
will be added to the mailing list garding changing the CDBG construction of capital repairs
for this application to receive and HOME annual Program i and improvements to and the
FinIIv1 ., . . '41'