HomeMy WebLinkAboutM-81-0930TO Howard Gary 3 i C(CT October 27 , 1981
City Manager
A Quiz•
Dena Spillman, Director
Department of Community Development
Effect of 1981 Statutory Changes
in the Community Development
Block Grant Program
City Commission Agenda
November 12, 1981
The purpose of this memorandum is to bring the City Commission up to date on
recent changes in the Community Development Block Grant program which have come
about as a result of Reagan administration policies. The changes concern two
program areas: funding level and program regulations.
The budget cuts proposed by President Reagan and approved by Congress for FY'82-83
will have an adverse effect on the CDBG program in the City of Miami beginning in
June of 1982. A ten percent cut in the program will take place in June, reducing
our annual entitlement amount to $9.81 million from its current level of $10.9
million. President Reagan has further proposed an additional 12' cut in the CDBG
which would reduce our allocation to $8.6 million. It is unclear at this time
whether Congress will agree to this additional cut. Any cuts in the City's
funding level will result in staff layoffs in the Community Development, Planning,
and Trade and Commerce Departments, as well as cuts in social service programs
funded through the grant. Needless to say, needed projects in the various CD
target areas will either have to be postponed or cancelled. A possibility exists
that, due to the new census figures, the City's grant may be slightly adjusted
upward as a result of the influx of Cuban and Haitian refugees. Final grant amount
information will not be available until January, 1982, and it is doubtful whether
this adjustment will compensate for the cuts.
Changes in program regulations as a result of amendments to the Housing and Community
Development Act of 1974 will allow the City more flexibility in the areas of
citizen participation, geographic target areas, eligible activities and state and
local review requirements. Regulations concerning social service programs have been
loosened up; however, Congress has imposed a 10 limitation on the total CDBG amount
which must be instituted over a 3-year period. The net effect of this requirement
cannot be calculated at this time, however, the City will have to cut its social
service programs a minimum of $713,700 by 1984.
In light of the above, staff is recommending the following:
1. CD Planning - The CD planning schedule be revised to reflect diminished review
requirements. (See attached recommended schedule.) .
2. Citizen Participation - Even though HUD do;�!-. riot now require the intense level
of citizen involvement in the CO process that the City undertakes, it is
recommended that the Board/Forum structure be maintained during the planning
process (through April, 1982). At that time an evaluation of the process will
be undertaken and recommendations will be made to the City Commission for a
revised system during the sunrer months.
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Howard Gary
Page two
October 27 , 1981
3. Geographic Target Areas - The requirement that CD activities take place in
Neighborhood Strategy Areas is no longer part of the program. It is
recommended, however, that in order to complete on -going projects and to
continue the City's concentrated improvement efforts, that the NSA concept
be utilized for the 8th CD year. During next year's planning process, various
geographic funding strategies will be reviewed with the City Commission.
A synopsis of the above changes is attached for your information.
/rjf
Enclosure
c: Frank Castaneda
L.