BACKGROUND

The purpose of this public hearing is to receive final comments on the proposed 2020-2024 Consolidated Plan including the 2020 Annual Action Plan and 2020 Community Development Block Grant (CDBG) budget. 


2020-2024 Consolidated Plan and 2020 Annual Action Plan and CDBG Budget
The 2020 - 2024 Consolidated Plan states how the Village will address its community development needs, especially those of its low- and moderate-income residents, over the 5-year period covered by the Plan.

 
The 2020 Annual Action Plan discusses the actions the Village will take during the October 1, 2020 – September 30, 2021 program year including how the Village will use its available CDBG funds.

 
The draft 2020-2024 Consolidated Plan is attached. Since the annual CDBG budget has historically been of particular interest to members of the community, the draft 2020 CDBG budget is provided as a separate document for the convenience of the Village Board and the public. 

 
A regulatory waiver granted by HUD permits the public services total in the 2020 CDBG budget to exceed the 15% public service funding cap provided that the overage (amount over the 15% cap) is used for Covid-19 related needs. In the proposed CDBG budget, $81,450 is proposed for public services. The 15% cap for the 2020 program year is $44,300. Therefore, $37,150 ($81,450 - $44,300 = $37,150) must be used for Covid-19 related needs. In the 2020 proposed CDBG budget for public services, $25,000 is specifically allocated for Covid-19 public service needs leaving $12,150 ($37,150 - $25,000 = $12,150) in CDBG funds to be used by the subrecipients to address Covid-19 needs. Several of the proposed subrecipients have been contacted and collectively have indicated that the requirement to spend a minimum of $12,150 from their proposed allocations on Covid-19 needs would be met or exceeded. 

 
Public Comment
The proposed 2020-2024 Consolidated Plan was made available for a 30-day public comment period ending on July 11, 2020. All comments were submitted in writing and are attached. 

 
Comments primarily focused on COVID-19 related needs in the community and advocate for increasing CDBG funding allocated for COVID-19 needs to an amount greater than the $25,000 stipulated in the draft 2020 CDBG budget. Some members of the public suggested that funds be reallocated to COVID-19 needs from the draft Infrastructure (Street Resurfacing program) allocation of $150,000. Since the 15% cap on public service programs has been waived for the program 2020 program year (if funds over the 15% cap are used for COVID-19 related needs) this suggested shifting of funds from “brick and “mortar” type projects to public services is possible. However, it is possible that the Village’s General Fund proposed ceilings and CIP budget would need to be amended to accommodate this change.

Earlier this month, the Village allocated 100% of its special CARE Act allocation Community Development Block Grant – Covid-19 (CDBG-CV) fund in the amount of $164,062 to public services. The draft 2020 CDBG budget amount of $25,000 for Covid-19 needs plus an additional $12,150 to be provided by subrecipients due to the public service cap overage, would bring the total amount for COVID-19 needs to $201,212. 

 
Given the amount of funding that has already been allocated for COVID-19 needs, staff recommends leaving the proposed 2020 CDBG budget as presented.


HUD REVIEW
If approved by the Village Board, the Village’s 2020-2024 Consolidated Plan including the 2020 Annual Action Plan will be submitted by Cook County with the 2020-2014 Consolidated Plans of the other municipal members of the Cook County HOME Consortium. HUD may take up to 45 days to review the Village’s 2020-2024 Consolidated Plan. Upon approval, HUD will provide a Grant Agreement to the Village for its Federal fiscal year 2020 CDBG entitlement funds.