HomeMy WebLinkAboutSubmittal-Commissioner Gort 2Changing Community Development March 25, 2010
Fiscal Year
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COMMUNITY DEVELOPMENT
CHANGING OF FISCAL YEAR
MARCH 25, 2010
Community
Development
PROPOSAL
Change the start of the fiscal year of the
Department of Community Development from
October 1 to another time in the year. It
could be January 1, April 1 or July 1.
Community
Development
1
io-oo393-Sc'bmiHa(- Co►mmi ssi0rier Gorta
Changing Community Development
Fiscal Year
March 25, 2010
Spending $26 million in 3 months
O A successful transition from a fiscal year to a calendar year will
greatly depend on our ability to spend or obligate all the funds in
the compressed fiscal year while meeting all statutory or
regulatory timeliness requirements
O Ability of the City's general fund to provide funding for all
operations of the Community Development Department until
HUD funds the City's line of credit. (As soon as the amount of
funding is known and a grant agreement is signed) Occurs
approximately in April or May. (Between $6m to $8m)
O The spending should not increase the Department's ann
obligations
s
Community
Development
Challenges
O CDBG: Under the provisions of 24 CFR 570.902 of the CDBG
regulations, a grantee is considered to be timely, if 60 days prior to the end
of the grantee's program year, the balance in its line -of -credit (unspent
funds) does not exceed 1.5 times the annual grant. This will pose a
challenge that has to be managed.
O HOME: The department is currently struggling with the commitment
deadlines for the HOME program because of the homeownership trust-s •t
asides. Reducing the time to obligate HOME funds will further exacerba e
this problem.
O HOME CHDO: CHDO set -aside will likely suffer a timeliness issue as
there are no viable CHDO projects due to the decline in real estate m et
.The HOME regulations require that 15% of our annual alloc be .et -
aside for CHDOS. (Community Housing Development • ganizations
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Commun ty
Development
3
'Changing Community Development
Fiscal Year
March 25, 2010
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Changing Community Development
Fiscal Year
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March 25, 2010
COMMUNITY DEVELO ENT
CHANGING OF FISCAL YE R
MARCH 25, 2010
Commun
Development
PROPOSAL
Change the start of the fiscal year of the
Department of Community Development from
October 1 to another time in the year. It
could be January 1, April 1 or July 1.
Comrnunity
Development
2
/0- oovg -.Sibrrcifie2.1- Comm; ss; 0 re r Gort a
Changing Community Development March 25, 2010
Fiscal Year
What the Proposal Entails
® Compresses the October 1, 2010 to September 30, 2011 fiscal year from
12 month period to a 3, 6 or 9 month period based on when the new year
will start. Ex, Oct. 1, 2010 to Dec. 31, 2010 or Oct. 1, 2011 to June 30th,
2011.
O Starts a new fiscal year on Jan., 2011 to Dec. 31, goi 1 or July 1, 2011 to
June 30, 2012.
® Makes available approximately $26 million in total funding from HUD 6
spend in a 3, 6 or 9 month period.
'EreutFr;iii
Advantages of the Proposal
O Makes available $26 million to spend in 3, 6 or 9 months
® Most of the non -profits operate on calendar year, therefore
this makes it easy for them to manage their resources if the
city is also on a calendar year.
O Eliminates possibly two year funding of elderly feeding
agencies because of the compressed year.
0 Additional resources can be used to reduce the City's curr n
Section 108 debts
4
count
opmen
2
Changing Community Development
Fiscal Year
March 25, 2010
Spending $26 million in 3 months
® A successful transition from a fiscal year to a calendar year will
greatly depend on our ability to spend or obligate all the funds in
the compressed fiscal year while meeting all statutory or
regulatory timeliness requirements
® Ability of the City's general fund to provide funding for all
operations of the Community Development Department until
HUD funds the City's line of credit. (As soon as the amount of
funding is known and a grant agreement is signed) Occurs
approximately in April or May. (Between $6m to $8m)
@ The spending should not increase the Department's ann
obligations
5
X•, Com rnunity
Development
Challenges
O CDBG: Under the provisions of 24 CFR 570.902 of the CDBG
regulations, a grantee is considered to be timely, if 60 days prior to the end
of the grantee's program year, the balance in its line -of -credit (unspent
funds) does not exceed 1.5 times the annual grant. This will pose a
challenge that has to be managed.
® HOME: The department is currently struggling with the commitment
deadlines for the HOME program because of the homeownership trust-s t
asides. Reducing the time to obligate HOME funds will further exacerba e
this problem.
® HOME CHDO: CHDO set -aside will likely suffer a timeliness issue as
there are no viable CHDO projects due to the decline in real estate m et
.The HOME regulations require that 15% of our annual alloc, be .et -
aside for CHDOS. (Community Housing Development a ganizations
6
xa
Community
t
3
Changing Community Development March 25, 2010
Fiscal Year
Challenges II
® HOPWA.: This program will be the most challenging one to manage in a
short fiscal year because of the amount of funds involved and the
limited use ($12 million). Most of the funds are used for long term
rental assistance similar to a section 8 program. The excess funds
cannot be used to add new clients. Purchasing condos or other properties
with the fund can only be possible if there will not be any additional
operating dollars that will be needed for the additional units in the
ensuing years..
Community
Developmen
71,
Other Options
® A legislative option is currently being pursued to allow
the City to use up to 25% of it's CDBG for public
service for 2 years, going to 20% for another year.
Proposed Language
® Section 105(a)(8) of the Housing and Community Development Act of
1974 , as amended, is amended by striking "in each of fiscal years-
1999, 2000 and 2001 and all that follows through the end of the
paragraph and inserting the following: "each of fiscal years 2011 and
2012, to the City of Miami, such city may use not more than 25 percent
in each fiscal year, and not more than 20 percent in fiscal year 20 7 3, fo
activities under this paragraph,'
.
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Community
Deveopment
4
'Changing Community Development
Fiscal Year
March 25, 2010
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Questions
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Community
Developmenf