BACKGROUND

Federal Regulations require that the Village undergo a public hearing process with respect to the development of Consolidated Plan Annual Action Plans.

The public participation process for the 2021-2022 Consolidated Plan includes:

Public Hearing #1:                                     June 7, 2021

30-day public comment period:                   June 9, 2021 – July 9, 2021

Public Hearing #2:                                     July 21, 2021 (Tentative Date)

The Consolidated Plan Annual Action Plan provides information concerning the actions that the Village will take during the program year to address the housing and community development needs of its residents, particularly those residents who are extremely low-, low- and moderate-income. The Annual Action Plan also explains how the Village will use certain Federal resources including the Village’s Community Development Block Grant (CDBG) funds during the program year.

The Federal resources expected to be received during the 1-year period of the 2021-2022 Annual Action Plan are shown below:

Estimated Federal FY 2021 CDBG Entitlement Grant:              $284,265

Estimated Prior Year’s CDBG Carry Over Funds:                      $111,000 

Anticipated CDBG Program Income:                                       $  50,000

Total Estimated CDBG Funds Available:                                   $445,265

For the period covered by the 2021-2022 Annual Action Plan, the Village has received 21 CDBG grant requests totaling $789,975 of which $445,265 can be funded.

While the Village has the authority to fund programs totaling $445,265, there are some HUD restrictions of which Village Board should be aware. Exhibit A lists the grant requests according to the program restriction categories stipulated by HUD. The following are the guidelines for the expenditure categories:

Administrative Services Cap: The maximum funding for administration is 20% of the sum of the 2021-2022 Federal CDBG entitlement grant and anticipated program year 2021-2022 program income: $66,800.

Public Services Cap: The maximum funding for public service activities is 15% of the sum of the 2021-2022 Federal entitlement grant and the prior year’s program income: $55,000.

Brick and Mortar Projects: If the Village elects to expend the full amounts allowed under the caps for administrative services and public services, the amount available for brick and mortar projects including economic development activities is the total amount of CDBG funds available less the amounts for the two caps: $323,465.

Low and Moderate Income Benefit: A minimum of 70% of the total CDBG funds for the year must benefit low- and moderate-income residents: $311,685.

A copy of the draft 2021-2022 Consolidated Plan Annual Action Plan is provided at Exhibit B. Copies of the CDBG application forms that have been received are provided as Exhibit C. Additional materials received from the applicants such as budgets, audits, organizational charts, etc. have been reviewed by staff and are available upon request.

NEXT STEP

Pursuant to applicable regulations, the proposed 2021-2022 Consolidated Plan Annual Action Plan, including the draft CDBG allocations, will be made available for the required 30-day public comment period. No Board action is required at the first public hearing.