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HomeMy WebLinkAboutPR 24372: REQUEST FOR APPROVAL OF THE 2025 CDBG ALLOCATION P. R. #24372 City of 06/04/2025 M. Essex Page 1 ort rthu - Texas INTEROFFICE MEMORANDUM Date: June 17, 2025 To: The Honorable Mayor and City Council Through: Ronald Burton, CPM City Manager From: Pamela D. Langford, CPM, Assistant City Manager—Operations/ Development Services Manager RE: P.R. NO. 24372—Request for Approval of the 2025 CDBG Allocation Introduction: This Agenda Item seeks the City Council's approval of P.R. NO. 24372 for the 2025 Community Development Block Grant(CDBG) allocation in the amount of$1,006,766. Background: The Community Development Block Grant (CDBG) Program, administered by the U.S. Department of Housing and Urban Development(HUD),provides annual funding to eligible cities and counties to develop viable urban communities.These funds support activities that benefit low- and moderate-income individuals by providing decent housing, a suitable living environment, and expanded economic opportunities. Since housing assistance remains a high priority for the City of Port Arthur,the 2025 CDBG funds will be used in part to support low-to-moderate-income families in need of down payment assistance and essential home repairs. These initiatives are part of the City's ongoing commitment to increasing housing access and improving neighborhood conditions. HUD regulations permit up to 15% of the total CDBG allocation to be awarded to qualified non- profit organizations for public service activities. For the 2025 program year, this amount equals $151,014.90. The city received 14 applications for CDBG funding. After evaluation, 10 applications met the eligibility and program requirements established under federal guidelines. Staff Recommendation: The staff has prepared funding recommendations for eligible applications based on the following criteria: 1. Funding Availability P. R.#24372 06/04/2025 M. Essex Page 2 2. Past Performance of the applicant in managing prior CDBG or similar funding 3. Number of Persons Served by the proposed program or project 4. Alignment with the City's Priority Needs as outlined in the Consolidated Plan It is important to note that while staff provides these recommendations to guide the funding process, final approval authority rests with the City Council. The City's total CDBG allocation for 2025 is $1,006,766, which reflects a $23,823 decrease from the 2024 allocation. Budget Impact: Community Development Block Grant is the funding source. Recommendation: It is recommended that the City Council approve P.R. NO. 24372 for the 2025 Community Development Block Grant (CDBG) allocation in the amount of$1,006,766. P. R. #24372 06/04/2025 M. Essex RESOLUTION NUMBER A RESOLUTION APPROVING THE 2025 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDING ALLOCATION OF $1,006,766 FROM THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT. THE 2025 CDBG GRANT WILL BEGIN IN THE CITY'S FY26 BUDGET. WHEREAS, the U.S. Department of Housing and Urban Development (HUD) has allocated $1,006,766 in Community Development Block Grant (CDBG) funds to the City of Port Arthur for Program Year 2025, which must be used to benefit low- and moderate-income neighborhoods or households; and WHEREAS, pursuant to the Housing and Community Development Act of 1974, as amended (Public Law 93-383), the City of Port Arthur is required to submit to HUD the Fiscal Year 2025 CDBG funding allocation in the amount of$1,006,766; and WHEREAS,the Fiscal Year 2025 allocation reflects a decrease of$23,823 from the City's FY 2024 CDBG allocation of$1,030,589; and WHEREAS, while Public Service projects are eligible under the CDBG program, funding for such activities is statutorily limited to 15% of the City's annual allocation, or $151,014.90 for Program Year 2025; and WHEREAS, the 2025 CDBG program year will commence with the City's FY 2026 budget year; and WHEREAS,the City's 2025 Consolidated Plan includes a proposed list of eligible projects to be funded through the 2025 CDBG allocation, as set forth in Attachment "A"; and WHEREAS, it is necessary for the City Council to authorize the City Manager to execute all documents required in connection with the submission and administration of the proposed projects. NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR, TEXAS: Section 1. That the proposed list of projects for Program Year 2025, as set forth in Attachment "A" and incorporated herein by reference, is hereby approved and adopted in accordance with the Housing and Community Development Act of 1974, as amended. Section 2. The City Manager is hereby authorized to execute all documents necessary to implement and administer the City's 2025 Community Development Block Grant program in accordance with applicable federal regulations. P. R. #24372 06/04/2025 M. Essex Section 3. That a copy of the caption of this Resolution shall be spread upon the minutes of the City Council. 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: Thurman "Bill" Bartie, Mayor ATTEST: SHERRI BELLARD CITY SECRETARY P. R. #24372 06/04/2025 M. Essex APPRO ORM: ) ROXANN PAIS COTRONEO CITY ATTORNEY APPROVF1b F 1 ' ADMINISTRATION: C_A\T RONALD : . 'TON, CPM CITY MANAGER / 'dam (..11;f12e PAMELA LANGFORD ASSISTANT CITY MANAGER- OPERATIONS/ DIRECTOR OF DEVELOPMENT SERVICES APPROVED AS FOR AVAILABILITY OF FUNDS Aa-M/t1 e/ LYNDA BOSWELL, MA, ICMA-CM DIRECTOR OF FINANCE P. R. #24372 06/04/2025 M. Essex Page 3 ATTACHMENT "A" U.S.DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT * WASHNGTON.DC 20410.7000 OFFICE OF COMILNITY PLANNING AND DEVELOPMENT May 14, 2025 The Honorable Thurman Bartie Mayor of Port Arthur 444 4th Street PO BOX 1089 Port Arthur, TX 77640 Dear Mayor Bartie, Secretary Scott Turner is committed to improving housing opportunities, reducing regulations to lower housing cost, and expanding housing supply for hardworking Americans. The nationwide shortage of rental and owner-occupied properties and the current rate of construction has not kept pace with the demand. This lack of adequate housing supply leads to higher prices for renters and homebuyers alike, forcing some into homelessness and preventing countless Americans from becoming homeowners. Across the country, partnerships between public and private sectors are providing millions of Americans an opportunity to get ahead. HUD is determined to continue its collaboration with you so programs are responsibly utilized and can spark additional leveraging and partnerships to address the nation's housing crisis. As authorized by the Consolidated Appropriations Act(Public Law 119-4)on March 15, 2025, I am honored and excited to announce that your jurisdiction is receiving the following Fiscal Year 2025 allocations for the identified programs: Community Development Block Grant(CDBG) - $1,006,766.00 HOME Investment Partnerships (HOME) - $321,504.70 Emergency Solutions Grants(ESG)- $0.00 Housing Opportunities for Persons W/HIV/AIDS (HOPWA) - $0.00 Housing Trust Fund (HTF)- $0.00 Recovery Housing Program (RHP) - $0.00 In addition, your jurisdiction's CDBG allocation for this year provides you with $5,033,830.00 in available Section 108 loan guarantee borrowing authority. Section 108 permits you to borrow up to five times of your current CDBG allocation. This loan allows jurisdictions to maximize access to low-interest capital, and provide long-term financing to invest in Opportunity Zones, or further address gap financing for big projects that you envision for your community. 2 As you are finalizing your Annual Action Plans or Consolidated Plans that are due for submission to our office by August 16, 2025, please be reminded that it is important to align with executive orders and applicable laws. If you or any member of your staff have questions, please do not hesitate to contact your local HUD Field Office in Houston or CPDGDAS@hud.gov. Thank you for your interest in CPD programs and for ensuring that these dollars are responsibly achieving outcomes as intended by law. When people have a safe and stable place to call home,they can focus on contributing to the economy and be productive members of their respective communities. 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