Community Development Block Grant
Recovery Act Funding
Substantial Amendment
On May 6, 2009 the U.S. Department of Housing and Urban Development (HUD) issued its “Notice of Program Requirements for Community Development Block Grant Program Funding under the American Recovery and Reinvestment Act of 2009.
The American Recovery and Reinvestment Act of 2009 (ARRA) appropriated $1 billion in Community Development Block Grant (CDBG-R) funds to states and local governments (including a $61, 024.00 allocation for the City of Florissant) to carry out, on an expedited basis, eligible activities under the CDBG program.
Funding available under ARRA has clear purposes – “to stimulate the economy through measures that modernize the Nation’s infrastructure, improve energy efficiency, and expand educational opportunities and access to health care.”
The HUD program notice asks CDBG-R grantees to carefully evaluate proposed projects for consistency with these overarching goals of ARRA. While the full range of CDBG-R funding activities is available, HUD is strongly urging grantees to “use CDBG-R funding for hard development costs associated infrastructure activities that provide basic services to residents or activities that promote energy efficiency and conservation through rehabilitation or retrofitting of existing buildings.”
Title XII of Division A of ARRA requires that in selecting CDBG-R projects to be funded, “recipients shall give priority to projects that can award contracts based on bids within 120 calendar days from the date the funds were made available…”
In order to meet or exceed the expedited timeframes contemplated by ARRA, the City of Florissant proposes to utilize 90-100 percent of its CDBG-R allocation under the overarching ARRA objective to promote energy efficiency and conservation through rehabilitation of existing buildings. This objective will also serve to create jobs as 90-100 percent of the contractors used to perform the rehabilitation are local contractors. Remaining funds, in an amount not to exceed 10 percent, will be utilized for grant administration.
The City of Florissant’s 2005-2010 Housing & Community Development consolidated Plan recognizes rehabilitation of private properties as the number one priority. The City does not anticipate addressing ARRA’s other overarching objectives to modernized infrastructure, smart growth, green building technologies, or reduced pollution emissions with the limited CDBG-R funds available. The City will utilize funding from other resources (if received) to address these goals.
The project is expected to commence and be substantially completed within the 2009 program year. Final inspections and correction items may extend into the 2010 program year.
This project is expected to rehab approximately 12 homes and create approximately 24-48 jobs. Overall, the project will enhance and sustain a suitable living environment in neighborhoods throughout the City.
Pre – Award Costs
This CDBG-R Substantial Amendment contemplates the expenditure of funding for eligible to the effective date of the grant agreement. In compliance with 24 CFR 570.200 (h) these expenditures shall be limited to general planning and administration costs, or other costs and activities that are in compliance with the Environmental Review Procedures stated in 24 CFR 58.
Displacement and Relocation
The rehabilitation of private properties utilized through the City’s Home Repair Loan Program will not result in any involuntary displacement.
Citizen Participation
A draft CDBG –R Substantial Amendment was posted for the required 7 day comment period beginning May 26, 2009 and ending June 2, 2009. The draft document was available in both the Florissant City Hall and the Florissant Government Building as well as the Florissant Valley branch of the library and online at www.florissantmo.com (site destination – CDBG).
Future amendments and opportunities for citizen participation: due to the emergency nature of this funding and the desire to implement and complete projects and activities as rapidly as possible, the reallocation of CDBG-R funding between identified projects is contemplated by this plan. Therefore, such reallocations shall not be considered to be an amendment to this plan and shall not be subject to further public comment requirements.
The addition of project activities not already described in this plan shall be treated as an amendment and shall be subject to the provisions of the City of Florissant’s Citizen Participation Plan. A plan amendment, with or without a required public comment period, shall be subject to any applicable local and federal requirements, reviews and approvals.
