Report Prepared by: Kimberly Nutt, Housing Program Supervisor, Housing Division/Development Services Department
Title
SUBJECT: Authorization to Submit a Formal Request to the U.S. Department of Housing and Urban Development (HUD) Asking for Voluntary Grant Reductions of Future CDBG and HOME Allocations in Lieu of Repayment from Local Funds, Stemming from the January 2020 HUD Environmental Monitoring Findings and Corrective Actions for the Gateway Terrace II Affordable Housing Project
REPORT IN BRIEF
Considers authorization to submit a formal letter to the U.S. Department of Housing and Urban Development (HUD) requesting Voluntary Grant Reductions (VGRs) of future annual Community Development Block Grant (CDBG) and Home Investment Partnership Program (HOME) allocations, in lieu of the use of local funds, for repayment of prior expenditures that HUD determined were ineligible during the January 2020 Environmental Monitoring and as further determined by the October 2021 Monitoring Report that requires repayment of ineligible expenditures as a corrective action.
RECOMMENDATION
City Council - Adopt a motion:
A. Authorizing the City Manager to submit a formal letter to HUD requesting consideration and approval of Voluntary Grant Reductions of both CDBG and HOME for the respective repayment amounts; and,
B. Authorizing the City Manager, after consultation with the Finance Officer, City Staff, and HUD, to make the final determination as to the amount and number of years to request the grant reductions to be spread, if any, to ensure that administrative budgetary obligations of the Housing Division are met.
Or
C. Approving a Supplemental Appropriation from the unreserved, unencumbered General Fund balance in the amount of $700,507 to repay the ineligible activities.
Or
D. Approving a Supplemental Appropriation from the unreserved, unencumbered fund balance of Fund 1020 Affordable Housing in the amount of $700,507 to repay the ineligible activities.
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