Item 6_ FY25_26 CDC Action Plan — original pdf

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P.O. Box 1088, Austin, TX 78767 -1088 (512) 974-3100 • Fax (512) 974-3112 www.austintexas.gov/housing Dear Community Development Commission: This is a reminder of upcoming FY25-26 Action Plan events at your Commission. The Action Plan is the City of Austin’s annual application to formula grants funded by the U.S. Dept of Housing and Urban Development (HUD). Your input and participation is essential to our Action Plan process. Each of the dates listed below is an opportunity to hear your input on these grants and their impact on the needs of your communities, which will then be included formally in our reporting to HUD. These event are also required for compliance with federal grants regulations. Please be aware that failing to meet quorum on these dates may impact the City’s compliance and eligibility for these federal grants. These grants fund very low-to-moderate-income programs in Austin. April 08, 2025 Community Needs Assessment June 10, 2025 Public Comment Hearing July 08, 2025 Final Recommendations Attached to this document you will find information that may be useful, but not required: The latest City of Austin memo regarding federal grants and executive orders. FY23-24 goals, outcomes and funding breakdown for these same grants. A copy of our published Public Notice which you are welcome to share with your communities for public hearings. Full copies of previous Action Plans can be found on our website. On April 08 we will go over grants background in more detail, listen to any feedback you may have and answer questions. If you have any further questions regarding the Action Plan process, please reach out to me directly. If you have questions regarding your agenda or public hearings, please include your staff liaison. Sincerely, Rocio Peña-Martinez Grants Program Manager Housing Department 1000 East 11th Street rocio.pena-martinez@austintexas.gov M E M O R A N D U M TO: Mayor and City Council THROUGH: Jon Fortune, Deputy City Manager FROM: Carrie Rogers, Intergovernmental Relations Officer DATE: February 25, 2025 SUBJECT: Federal Legislative Update / Potential Reductions at the Department of Housing and Urban Development As a follow up to memorandums issued on January 29, 2025, February 11, 2025, and February 17, 2025, the Intergovernmental Relations Office (IGRO), along with partner departments, continues to review federal administration actions relating to direct and discretionary funding awarded to the City of Austin. On Thursday, February 20, 2025, public reports began circulating of a planned 50% reduction in staff across the entire workforce at the Department of Housing and Urban Development (HUD). In some HUD divisions, the cuts could be deeper – up to 84% at HUD’s Office of Community Planning and Development (CPD) – according to reports. Such a drastic reduction would likely have a significant impact on efforts across the nation to address homelessness and make housing more affordable. CPD includes many programs critically important to the City of Austin, such as HOME Investments Partnerships Program (HOME), Community Development Block Grant (CDBG), Emergency Solutions Grant (ESG), Housing Opportunities for Persons with AIDS (HOPWA), and Continuum of Care (CoC) programming. The City of Austin receives approximately $14 million per year in HUD block grants. An additional $14 million was awarded this January for CoC programs, which primarily support services to address homelessness in Austin through non-profit partners. City of Austin HUD Community Programming Based on the information we have today, and in reviewing the City’s Consolidated Annual Performance and Evaluation Report (CAPER) with the Housing Department, the Homeless Strategy Office and Austin Public Health, staff identified the following areas where drastic reductions to HUD personnel and/or a reduction in funding would impact the City of Austin’s community programming: Page 1 of 3 HOME Program ($3,073,266) • HOME provides Tenant Based Rental Assistance to 65 families/individuals experiencing homelessness. The contract is administered through the Housing Authority of the City of Austin (HACA) and coordinated with our Continuum of Care (ECHO). • HOME provides funding for Down Payment Assistance (DPA) for 25 low- to moderate- income homebuyers who are first-time homebuyers. Community Development Block Grant (CDBG) - $7,223,444 • Currently, CDBG funding provides programs or services to more than 14,000 Austinites. • CDBG provides critical mental health services, childcare services, and services to low- income seniors (totaling $1,083,539) to 476 families and individuals. In addition, CDBG provides funding for home repairs for 148 vulnerable senior households, ranging from minor home repair grants to major home rehabilitation loans. These home repairs enable seniors to stay in their homes safely and to avoid expensive nursing care. The City of Austin is investing CDBG funding in infrastructure for the Colony Park development, which is located in a low-income, disinvested area in Northeast Austin. The City and County have collaborated to reinvest in the area, resulting in a planned community (on 208 acres of city-owned property) that will include a range of housing types, transportation access, health care, parks, and recreation opportunities. The City of Austin committed $2.5 million per year in CDBG funding for early infrastructure (e.g., roads and utilities), which will be leveraged with private investment to develop the planned community. Housing Opportunity for Persons with AIDS (HOPWA) - $2,762,259 • HOPWA provides crucial funding for four community-based nonprofit organizations (AIDS Services of Austin, Project Transitions, Integral Care, and ASHwell) and partially funds staff administering the funding. Emergency Solutions Grant (ESG) - $647,073 ESG serves 425 individuals and families experiencing homelessness. ESG provides funding for shelter operations, rapid rehousing and partially funds staff administering the funding. ESG is a crucial part of our homelessness response system. HUD Funds in City Departments The Housing Department receives approximately $1.75 million each year to fund administrative costs, including personnel, rent, and other operating expenses. Within the Housing Department, 15 FTEs (out of 84 FTEs) are funded wholly or partially with federal HUD funds. • Austin Public Health receives approximately $130,000 each year to pay for administrative costs, including personnel, rent, and other operating expenses. Within APH, two FTEs (out of 647 FTEs) are funded wholly or partially with federal HUD funds. • • • • Page 2 of 3 • Downtown Austin Community Court receives funding from ESG in the amount of $285,000 for one staff member and housing assistance for the rapid rehousing program. Impact of Grants on Local Non-Governmental Organizations Over the last four years, with Congressional and legislative support, the City of Austin received approximately $1.2 billion through direct and discretionary grants, many of these with and in partnership with local non-governmental organizations (NGOs). The City is distributing a survey to non-profit organizations with whom the City collaborates to better understand the impact of dramatic cuts to HUD staffing and/or potential federal grant funding reductions. Survey responses are due Thursday, February 27, 2025, by 5 p.m. City staff will analyze results and provide an after-action report to the Mayor and City Council with staff recommendations. Next Steps City staff continue to assess daily actions out of Washington, D.C. that may impact the City of Austin’s community programming. Unless a department receives a direct notification from its federal funding agency to cease work and/or reimbursements, departments should continue to draw down reimbursements, maintain grant-required activities, and work towards finalizing grant agreements where applicable. Given the recent questions and uncertainty regarding federal funding, staff has been compiling a full list of federal grants by department and expects to share that list with Mayor and City Council as quickly as possible. Should you have any questions, please contact Carrie Rogers, Intergovernmental Relations Officer, at carrie.rogers@austintexas.gov or 512.923.7577. cc: T.C. Broadnax, City Manager Myrna Rios, City Clerk Corrie Stokes, City Auditor Judge Sherry Statman, Presiding Judge Mary Jane Grubb, Municipal Court Clerk CMO Executive Team Kerri Lang, Budget Director Directors and Assistant Directors Page 3 of 3