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Agenda 01/14/2025 Item #16D 5 (Resolution: Amendment to HUD annual action plans)1/14/2025 Item # 16.D.5 ID# 2024-2279 Executive Summary Recommendation to adopt a Resolution authorizing approval of a substantial amendment to Collier County's U.S. Department of Housing and Urban Development (HUD) Annual Action Plan for Program Year 2023-2024 and Program Year 2024-2025, to reallocate $1,000,000 from Program Year 2023 CDBG to Program Year 2024 CDBG activity to provide assistance to individual and families through counseling and housing services impacted by recent hurricanes, and authorize submission of the substantial amendment to HUD. OBJECTIVE: To maintain compliance with federal regulations to allow for the acceptance and use of federal HUD entitlement funds to assist with current public infrastructure needs, support affordable housing efforts along with services to benefit the citizens of Collier County. CONSIDERATIONS: The U.S. Department of Housing and Urban Development (HUD) provides entitlement funds to local governments to meet program-specific community needs. Entitlement programs include Community Development Block Grant (CDBG), HOME Investment Partnerships (HOME), and Emergency Solutions Grant (ESG). Community and Human Services (CHS) staff have recently identified changes to various activities to better address community needs. HUD regulations at 24 CFR Part 91.505 require amendments to Annual Action Plans whenever there is a change in the allocation priorities or method of distributing funds presented in the plan; a change in the use of funds to an activity not described in the Annual Action Plan; or a change in the purpose, scope, location, or beneficiaries of an activity. On July 1, 2024, the U.S. Department of Housing and Urban Development (HUD) issued a memo: Streamlined Process for Suspensions and Waivers of Community Planning and Development (CPD) Grant Program and Consolidated Plan Requirements to Facilitate Recovery from Presidentially Declared Major Disasters. This memorandum implements suspensions and waivers for communities impacted by Presidentially Declared Major Disasters like Hurricane’s Helene and Milton. This waiver will allow a flexible, timely response to assist Collier County citizens who have been impacted by most recent disasters. To expedite Collier County’s actions and provide reasonable notice for citizen’s comment, HUD has waived the 30-day public comment period requirement to allow for a 7-day comment period when advertising a substantial amendment to an Annual Action Plan. The required notice was published in the Naples Daily News on December 2, 2024. The advertisement identified a 7-day public comment period from December 3, 2024 to December 10, 2024. On December 16, 2024, a public hearing was held to address the proposed actions and as of the agenda publication, no comments regarding the substantial amendment were received. Collier County is proposing to amend the Program Year (PY) 2023-2024 and PY2024-2025 U.S. Department of Housing and Urban Development (HUD) Annual Action Plans. The Board of County Commissioners approved the PY2023-2024 Annual Action Plan on July 11, 2023 (Agenda Item #16.D.3) and PY2024-2025 Annual Action Plan on July 23, 2024 (Agenda Item #16.D.4). The following substantial amendment changes are proposed to the PY2023-2024 Annual Action Plan (in all areas where the activity description is referenced): Modify Project: Project Name: CDBG: Rental Rehab to CDBG: Public Facilities & Infrastructure Modify activities as follows to reprogram funding: Remove the Collier County Housing Authority (CD23-02) Rental Acquisition activity and reprogram the $1,000,000 of PY2023 CDBG entitlement funds to the Immokalee Water & Sewer District (CD24-01) to upgrade clay sewer pipes in Farm Worker Village in Immokalee. CCHA was unable to secure a property to acquire during the grant period and chose to return the funds so they could be reallocated to another eligible project. The following substantial amendment changes are proposed to the PY2024-2025 Annual Action Plan (in all areas where the activity description is referenced). Page 3549 of 6405 1/14/2025 Item # 16.D.5 ID# 2024-2279 Modify Project: Project Name: CDBG: Public Facilities & Infrastructure to CDBG: Affordable Housing (new) Modify activities as follows to reprogram funding: Remove the Immokalee Water & Sewer District (CD24-01) activity and reprogram the $1,000,000 of PY2024 CDBG entitlement funds to Renaissance Hall at Old Course, LLC for predevelopment costs associated with new construction of Phase 1 of affordable housing in Collier County. A subrecipient agreement between Renaissance Hall at Old Course, LLC and the County will be presented to the Board at a future meeting. The proposed project will benefit four households impacted by Hurricane’s Helen or Milton. Amend Project: Project Name: CDBG: Public Services Add a new activity as follows: Allocate CDBG funds to Valerie’s House in the amount of $41,077.01 to support staff salaries to provide individual and family counseling for those impacted by recent weather events and disasters causing stress and anxiety. A subrecipient agreement between Valerie’s House and the County will be presented to the Board at a future meeting. The reallocation of funds are allowable through HUD’s Streamlined Process for Suspensions and Waivers of CPD Grant Program and Consolidated Plan Requirements to Facilitate Recovery from Presidentially Declared Major Disasters dated July 1, 2024, from Marion McFadden, Principal Deputy Assistant Secretary. The reallocations have no negative impact on the Immokalee Water & Sewer District, this is an administrative reallocation. FISCAL IMPACT: The proposed actions described in this Executive Summary have no new Fiscal impacts. The funding source for the grant awards is the CDBG grant. PY2023 CDBG funds are budgeted in the Housing Grants Fund (1835), CDBG project 33855. PY2024 CDBG funds are budgeted in the Housing Grant Fund (1835), CDBG project 33915. GROWTH MANAGEMENT IMPACT: Acceptance and implementation of this HUD substantial amendment furthers the Goals, Objectives, and Policies of the Housing Element and the Growth Management Plan. LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney, is approved as to form and legality and requires majority vote for approval. -JAK RECOMMENDATIONS: To adopt a Resolution authorizing approval of a substantial amendment to Collier County's U.S Department of Housing and Urban Development (HUD) Annual Action Plan for Program Year 2023-2024 and Program Year 2024-2025; to reallocate $1,000,000 from Program Year 2023 CDBG to Program Year 2024 CDBG activity to provide assistance to individual and families through counseling and housing services impacted by recent hurricanes; and authorize submission of the substantial amendment to HUD. PREPARED BY: Tracey Smith, Grant Coordinator II, Community and Human Services Division ATTACHMENTS: 1. Resolution - amendment to HUD annual action plans Page 3550 of 6405 Page 3551 of 6405 Page 3552 of 6405 Page 3553 of 6405