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Home My WebLink AboutM-00-04670 0. CITY OF MIAMI, FLORIDA INTER -OFFICE MEMORANDUM TO: Honorable Mayor and DATE: MAY 1 5 2000 FILE Members of the City Commission SUBJECT: 26`h Year CDBG Prototype for Allocations by Category FROM :*Manag ez REFERENCES: City Commission Agenda May 25, 2000 ENCLOSURES: At its meeting of May 11, 2000, the City Commission directed the Administration to return at its next meeting with a proposed recommendation for the allocation of Twenty - Sixth Year (26th) Community Development Block Grant (CDBG) funds by category. In response to this direction, the Department of Community Development has developed a prototype for 26th Year CDBG activities by funding category. The proposed prototype utilizes a funding strategy on a percentage basis similar to the final approved funding allocations for the 25th CDBG Year. The attached chart provides an overview of the proposed prototype by both actual funding dollars and the percentage per category. As a point of reference, the U.S. Department of Housing and Urban Development (HUD) has advised the City of Miami that its entitlement will be slightly less in the 26th Year. In the 25th Year, the allocation totaled $12,731,000 and in the 26th Year, the entitlement will decrease to $12,700,000. The following information is provided as an overview of the proposed prototype: Administration (20% - $2,540,000) Federal regulations permit up to 20% of a recipient's entitlement for administration. The prototype recommends that the maximum allowable 20% be directed to this category to support the direct administration of the City's CDBG grant and indirect services provided by various City Departments. Public Services (23% - $2,921,000) Federal regulations typically allow up to 15% of the entitlement for the provision of public services. However, as a result of welfare reform, the City of Miami petitioned for a waiver of the public service cap and Congress authorized the City to direct up to 25% for public services for a three (3) year period. The 26th Year represents the second year of the authorized waiver. The proposed prototype recommends the continuation at the 23% level funded in the 25th Year. It is important to recognize that when the waiver term expires, the City must return 00— 46 il r 0 back to the. 15% level. By remaining slightly below the 25% level, this will minimize the impact on the return to 15% in two (2) years. Economic Development (11% - $1,397,000) The proposed prototype recommends the continuation at the 11% level funded in the 25h Year. Housing (12% - $1,524,000) The proposed prototype recommends the continuation at the 12% level funded in the 25th Year. City Proiects Code Enforcement -. The proposed prototype recommends the continuation at the level of $1,500,000 funded in the 25 Year to provide inspection services in the Departments of NET, Building and Community Development. Demolition - The proposed prototype recommends an increase in the allocation of funds for demolition activities from $300,000 to $500,000. Lot Clearing - The proposed prototype recommends the continuation at the level funded in the 25`h Year of $275,000 CRA Baseline Funding - The proposed prototype recommends an allocation of $479,000 toward the baseline commitment identified in the Interlocal Agreement executed between the City and the CRA. Section 108 Debt Service — Federal regulations require that CDBG funds be used as collateral toward the debt service of its Section 108 Loans. In the 2000-2001 fiscal year, the debt service of the Section 108 Loan for the Wynwood Foreign Trade Zone, for which the City is obligated, will be $375,000. The Interlocal Agreement between the City and the CRA further requires that the City make the payments due on the Southeast Overtown Park West Section 108 Loan, which will be $625,678 in fiscal year 2000-2001. Public Facilities (Capital Improvement Projects) - The proposed prototype recommends that the balance of $563,322 be directed to CIP projects that can be completed by September 30, 2001. It is further recommended that the balance of carryover funds from the 25`h Year be added to the available pool for CIP activities. 0 11 Finally, it is recommended that the City Commission adopt a policy that requires community based organizations to identify an area of specialization between economic development activities and housing activities and that the City Commission limits its funding awards to that specialization field. Acceptance of this policy will eliminate an Agency from being funded in both the economic development and housing funding pools. It is recommended that the City Commission accept the proposed funding category prototype and direct the Administration to move forward with the 26`h Year Request for Proposal process by using the prototype as its basis. dl GCW/DF ��r 0MMUNITY DEVELOPMENT BLOCK GRANT / FUNDING RECOMMENDATIONS 2000-2001 BY CATEGORY Go" 46V 26th YEAR CATEGORY 125TH YEAR % RECOMMENDATION % ADMINISTRATION 20% $ 2,546,200 20% $ 2,540,000 20% PUBLIC SERVICES $ 2,915,878 23% $ 2,921,000 23% ECONOMIC DEVELOPMENT $ 1,366,501 11% $ 1,397,000 11% HOUSING $ 1,584,597 12% $ 1,524,000 12% CITY PROJECTS CODE ENFORCEMENT $ 1,500,000 12%. $ 1,500,000 12% DEMOLITION $ 300,000 2% $ 500,000 4% LOT CLEARING $ 275,000 2% $ 275,000 2% CRA BASELINE FUNDING $ 479,000 4% $ 479,000 4% SECTION 108 LOAN $ 800,000 6% $ 1,000,678 8% PUBLIC FACILITIES $ 963,824 8% $ 563,322 4% $ 12,731,000 100% $ 12,700,000 100% Go" 46V NOTICE OF PUBLIC HEARING FOR 26"HYEAR COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM AND OTHER HUD FUNDED PROGRAMS THE CITY COMMISSION WILL HOLD A PUBLIC HEARING TO DISCUSS PROPOSED LEVELS OF FUNDING BY CATEGORY FOR 26TH YEAR COMMUNITY DEVELOPMENT BLOCK GRANT ACTIVITIES AND TO ADOPT A PLANNING CALENDAR RELATING TO THESE ACTIVITIES. The Public Hearing will be held: Thursday May 25, 2000 City of Miami Commission Chamber 3500 Pan American Drive Miami, Florida 33133 Interested individuals are encouraged to attend the Public Hearing. The meeting site is accessible to the handicapped. No. 05592 d COMMUNITY DEVELOPMENT BLOCK GRANT FUNDING RECOMMENDATION BY CATEGORY CATEGORY RECOMMENDATION PERCENTAGE Acquisition -0- -0- 0 - Disposition Disposition - 0- -0- 0 - Public Public Facilities and Improvements $563,322 5% Clearance Activities $775,000 6% Public Services $2,921,000 23% Interim Assistance -0- 0 -Payment Payment of Non -Federal Share -0- -0- 0 - Urban Urban Renewal Completion -0- -0- 0 - Relocation Relocation -0-Loss of Rental Income -0- 0 -Removal Removal of Architectural Barriers -0- -0- 0 -Privately Privately Owned Utilities -0- -0- 0 - Construction Construction of Housing $1,524,000 12% Rehabilitation and Preservation Activities $1,500,000 11% (Code Enforcement and Historic Preservation) Special Economic Development Activities $2,876,678 23% Special Activities by Certain Subrecipients Planning, Urban Environmental Design and Policy- - 0- -0- 0_Planning-Management-Capacity Planning-Management-Capacity Building Activities0 Program Administration Costs $22540,000 20% TOTALS $12,700,000 100% PUBLIC FACILITIES AND IMPROVEMENTS = CAPITAL IMPROVEMENT PROJECTS CLEARANCE ACTIVITIES = LOT CLEARING AND DEMOLITION ! CONSTRUCTION OF HOUSING = HOUSING ADMINISTRATION REHABILITATION AND PRESERVATION = CODE ENFORCEMENT SPECIAL ECONOMIC DEVELOPMENT ACTIVITIES = ECONOMIC DEVELOPMENT PROJECTS, CRA BASELINE FUNDING AND SECTION 108 DEBT SERVICE PAYMENT