To: Honorable Mayor and Members of Town Council
Through: David L. Corliss, Town Manager
From: Matt Gohl, Special Projects Manager
Title
Update: Community Development Block Grant (CDBG) Program
Body
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Executive Summary
In September 2020, Town Council accepted entitlement status into the federal Community Development Block Grant (CDBG) program beginning in fiscal year 2021. Castle Rock’s 2021 distribution amount is unknown at this time, however, the Town’s allocation of CDBG Funds for fiscal year 2020 was estimated to be $222,000 so it is reasonable to expect a similar amount for 2021.
Given the Town’s acceptance of entitlement status, staff has started the process to develop the required Consolidated Plan (ConPlan) and other reports/analysis. Staff has contracted with a consultant (Civitas, LLC) to guide the Town through this process so the Town can submit required plans to the US Department of Housing and Urban Development (HUD) by the August 16, 2021 deadline. Public participation will guide development of the required plans that will be submitted to Town Council for approval later this year.
This memo is intended for informational purposes and no Town Council action is required at this time.
Discussion
The Town of Castle Rock accepted entitlement status into the CDBG program in September 2020. The Town’s actual funding allocation will not be known until this spring, likely in April 2021. However, the Town’s allocation for 2020 was estimated to be $222,000 and it is reasonable to expect a similar amount for this year. Note that the Town opted to not accept entitlement status at that time. The Town participated in the CDBG program in 2011, but declined participation in 2015, 2017 and 2019 due to concerns with the 2015 rule related to Affirmatively Furthering Fair Housing (AFFH). The AFFH rule was changed in 2020 and addressed concerns related to potential federal input into local zoning matters. Given this rule change, Town Council accepted entitlement status into the program for fiscal year 2021. Staff will continue to monitor for any future rule changes and will inform Town Council appropriately.
There are numerous CDBG entitlement cities and counties in Colorado that include:
• • Adams County
• Arapahoe County
• Arvada
• Aurora
• Boulder
• Castle Rock*
• City & County of Broomfield
• Centennial
• Colorado Springs
• Commerce City
• City & County of Denver
• Douglas County*
• El Paso County
• Fort Collins
• Grand Junction
• Greeley
• Jefferson County
• Lakewood
• Lone Tree*
• Longmont
• Loveland
• Parker*
• Pueblo
• Thornton
• Westminster
*New entitlement community for fiscal year 2021
Examples of CDBG funded projects accomplished by these entities include housing
rehabilitation and sewer line replacement (Centennial); energy efficiency grants
(Englewood); street/sidewalk accessibility improvements (Centennial); establishing a
high school mentoring program to empower students from low-income communities to
graduate high school (Arapahoe County); low-income, senior, and special needs
housing plus homebuyer assistance (Fort Collins); and, park/playground improvements
(Lakewood). In general, CDBG funds must be used for activities that meet one of the following criteria:
• benefit low and moderate income persons
• prevent or eliminate slums or blight
• address community development needs having a particular urgency because existing conditions pose a serious and immediate threat to the health or welfare of the community for which other funding is not available
The Town utilized CDBG funds in the past to complete alleyway improvements, to make curbs ADA accessible and to support public service programs. Other examples of eligible activities that qualify for CDBG funding include:
• Acquisition of real property
• Relocation and demolition
• Rehabilitation of residential and non-residential structures
• Construction of public facilities and improvements, such as water and sewer facilities, streets, neighborhood centers, and the conversion of school buildings for eligible purposes
• Public services, within certain limits
• Activities relating to energy conservation and renewable energy resources
• Provision of assistance to profit-motivated businesses to carry out economic development and job creation/retention activities
Staff has considered numerous options for how to use CDBG funding, but program development will be based on public and stakeholder input so that funds are used to best meet the needs identified in the community. CDBG, like many federal grant programs, has numerous compliance requirements. Given the complexity of these requirements, staff solicited proposals from numerous consultants and has selected Civitas, LLC to assist the Town with CDBG program development. As part of program development there will be various public outreach components on procedural, needs assessment and other items. Town Council will likely see information about these public input periods in the coming months.