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R2018-147 2018-08-13 RESOLUTION NO. R2018-147 A Resolution of the City Council of the City of Pearland, Texas, approving the U. S. Department of Housing and Urban Development Community Development Block Grant Program Fiscal Year 2019 Annual Action Plan. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS: Section 1. That certain Community Development Block Grant Program 12th Annual Action Plan, attached hereto as Exhibit "A", is hereby authorized and approved. PASSED, APPROVED and ADOPTED this the 13th day of August, A.D., 2018. TOM REID MAYOR ATTEST: RNA; 1GL.AIWTJ Lacy:. •' Y SE ;T TARY APPROVED AS TO FORM: DARRIN M. COKER CITY ATTORNEY Resolution No. R2018-147 Exhibit "A" Executive Summary AP-05 Executive Summary - 24 CFR 91.200(c), 91.220(b) 1. Introduction This Annual Action Plan for the City of Pearland covers Program Year(PY) 2018, which is the City's fiscal year 2019 (October 1, 2018—September 30, 2019). CDBG funding in Pearland will be expended to meet one or more of the 3 National Objectives: 1. Benefiting low-to moderate-income persons; 2. Preventing, reducing or eliminating slum and blight; or 3. Meeting an urgent community development need as a result of a disaster or other event. Due to several factors,the City may be involved in all three HUD National Objectives. Our service to low- to moderate-income persons will continue, there are a growing number of areas that are requiring elimination of blighted conditions, and Hurricane Harvey had an overwhelming impact on some portions of our City. During the next year, the City expects to focus its CDBG entitlement funds on these three objectives by improving the quality of life for those low- to moderate-income households throughout the City and in City neighborhoods with 40.93%or more low-to moderate-income households—those households with incomes at or below 80% of the area median income. The quality of the neighborhoods is dependent upon the quality of the housing stock, public facilities/infrastructure, and private facilities and amenities. Pearland will focus most of its PY 2018 resources on housing rehabilitation for owner-occupied homes. Social/public service activities will involve continuing investments in the high-priority efforts involving homeless prevention in the form of emergency subsistence to low- to moderate-income households facing evictions and/or loss of critical utility services, as well as the growing importance of mental health services for uninsured and/or low income individuals/households.The PY 2018 program will need to open solicitation to fill gaps in social services that coincide with other disaster recovery efforts, and an application process will be used to coordinate the CDBG and CDBG-DR activities along these lines. Ideally, this particular effort will emphasize long-term economic resiliency for individuals, households and businesses in Pearland. Program administration activities will be critical for PY 2018,as there are a number of coordinating efforts in place that involve a variety of regular community-based action plan items and the local disaster recovery activities in Pearland. Pearland's relatively small allocation of CDBG funds, the voluminous financial impact of Hurricane Harvey,and the looming mitigation activities needed to bring the community back to normal all play a significant role in our assessment that administration and oversight will be substantive.The map below shows the location of the CDBG area-benefit neighborhoods. City of Pearland Annual Action Plan 1 CDBG Program Year 2018 OMB Control No:2506-0117(exp.06/30/2018) m _ S _ i ti r - may .- s 3 - TI ' `r r• z �� 1 14 4 to E —\ ✓ice ...,.. / Legend 4. n Pearling City Limits CDBG Areas(ss 40.93%LMI of whole block group) C Map 1—City of Pearland with CDBG Areas Eligible for Area-wide Benefit 2. Summarize the objectives and outcomes identified in the Plan The City's 5-year Consolidated Plan was submitted in PY 2017, providing objectives and outcomes through the HUD 2021. Broad objectives include the following: • Decent Housing — The City will strive to improve the housing stock city-wide and residential areas within the eligible CDBG area-benefit neighborhoods. It is anticipated that activities will include: o Rehabilitating existing housing stock: The City will continue its HERO program (Housing Enforcement and Rehabilitation Opportunities), to repair, rehabilitate, and/or retrofit houses for accessibility, as well as preserve Pearland's residential neighborhoods within the CDBG areas through code enforcement. o Encouraging homeownership opportunities: Encouraging local and regional agencies to provide down-payment and/or closing cost assistance to moderate (low)-income households seeking to move from renting to owning a home. Additionally, encouraging local and regional agencies to provide homeownership and financial counseling to those who plan to purchase their first home. City of Pearland Annual Action Plan 2 CDBG Program Year 2018 OMB Control No:2506-0117(exp.06/30/2018) o Affirmatively furthering fair housing choice: Identifying and reducing any barriers to fair housing choice and achieving the specific actions set forth in the PY 2017-2021 Fair Housing Plan to affirmatively further fair housing choice. • Suitable Living Environment: The City will fund several activities that benefit the community by improving the living environment through: o Preventing, reducing and eliminating blighted conditions: Blending CDBG with other funds the City will conduct code enforcement activities throughout the CDBG areas, and through non-federal funds, identify and demolish abandoned structures within CDBG areas. o Improving public facilities and infrastructure: The City will use several funding sources to improve public facilities, including parks, and infrastructure in CDBG Target Areas, particularly Old Townsite. o Assessing transportation services: The City will assess existing transportation assistance for elderly, disabled and domestic violence victims and develop a plan to address the need for increased demand response transportation within Pearland and to/from medical services in Houston. o Supporting private non-profit public services: CDBG funds will continue to be used to support public service agencies in better serving the disadvantaged throughout the City. • Economic Opportunity: The City will undertake activities that expand economic opportunities for low-to moderate-income (LMI) persons and businesses through: o Supporting private economic advancement activities: The City will respond to funding applications by non-profits and for-profits for the provision of educational and/or job training programs that can advance the employment potential of youth and adults. o Striving to meet Section 3 goals: The City will continue to diligently strive to meet all of the hiring, contracting and contractor education goals related to the Section 3 requirements; and making Section 3 compliance a high priority in all contracts using federal funds. 3. Evaluation of past performance During the past year(CDBG PY 2017),the City has undertaken a number of measures to meet the priorities established by the Pearland community and program stakeholders; including but not limited to: • Code Enforcement in low-to moderate-income target areas; • Housing rehabilitation for low- to moderate-income owners/occupants of single- family homes in Pearland; City of Pearland Annual Action Plan 3 CDBG Program Year 2018 OMB Control No:2506-0117(exp.06/30/2018) • Emergency subsistence to landlords and/or utility service-providers for renter/occupants facing evictions and/or loss of utilities due to exigent and/or emergent conditions resulting in non-payments; and • Mental health counseling services for low- to moderate-income individuals in Pearland, particularly youth from families affected by Hurricane Harvey and school/peer experiences warranting additional supportive interventions. 4. Summary of Citizen Participation Process and consultation process The City's Citizen Participation Plan provides Pearland's CDBG program with the parameters for compliance with 24 CFR Part 91.200(b), and was formed in 2007 with the origination of our status as a HUD Entitlement Jurisdiction. It was updated in 2013. The applicable processes for developing and completing the City's CDBG Annual Action Plan involves a variety of activities designed to include the public in the planning process, inform the community and stakeholders about the ongoing dynamics of the program, develop the Action Plan itself, and engage local leaders in decision-making as authorized officials that approve the Plan prior to submission to HUD. This process results in short-term and medium-range planning documents-its Annual Action Plan, 5-year Consolidated Plan and Affordable/Fair Housing Plan— all within the framework of meeting applicable long-range HUD goals and National Objectives. This Action Plan development process began in May of 2018 when the City received its 13th allocation notice of CDBG funding. Upon receipt of the notice, a planning process takes effect with the publication and scheduling of two Public Hearings, a 30-day public comment period, stakeholder reviews of priorities and local conditions that drive the selection of new or continuing community-based programs and services, and the budgetary assessment of necessary costs for completing action plan items. The process generally ties annual action items back to the priorities established in the 5-year Consolidated Plan. However, in 2017 the City was impacted by the same massive disaster that has affected the lion's share of the Texas coastal region — Hurricane Harvey— and a number of urgent need situations have arisen that constitute making changes to our current plan, and adjusting the course of our future CDBG programmatic priorities. The specific activities involved in developing this Action Plan for PY 2018 included the following: • May 14, 2018— Public Hearing#1, posted in the City's local, official newspaper of public record, on Wednesday, May 9, 2018 (72+ hours prior to the Public Hearing); • May 14—July 13, 2018—Public Comment Period • July 14—August 6, 2018—Extended Public Comment Period • July 19, 2018—Correspondence of Final Action Plan Draft to Council City of Pearland Annual Action Plan 4 CDBG Program Year 2018 OMB Control No:2506-0117(exp.06/30/2018) • August 6, 2018—Public Hearing#2 and Final Public/Council Input and Discussion, posted in the City's local,official newspaper of public record,on Wednesday,August 1, 2018 (72+ hours prior to the Public Hearing); • August 15, 2018—Submission of Final Action Plan to HUD in IDIS. 5. Summary of public comments On May 14, 2018, one Pearland citizen commented on the City's Action Plan process, recommending the inclusion/prioritization of mental health services for the uninsured and low- to moderate-income population in Pearland. On August 6, 2018, two public elected officials made comments in relation to the City's Action Plan, inquiring as to the use of CDBG funding for infrastructure that would impact utility billing and management in the City's target areas. Staff responded with information about the existing emergency subsistence program in place, as well as the types of utility infrastructure improvements that could be made with CDBG funding. On that same occasion, a separate public elected official inquired about the use of funds for Hurricane Harvey-related home repair activities, and specifics about the types of activities being funded with the applicable program year funds. 6. Summary of comments or views not accepted and the reasons for not accepting them None. 7. Summary The City of Pearland has used its CDBG funds to address the highest priority needs in the community and make the greatest impact possible on the living environment of low- to moderate-income residents. Efforts are hampered by the limited funds and by the lack of comprehensive services available through non-profit social service, housing, and homeless agencies in Pearland. Due to the relative size, location, and economic stability of the residents, the economies of scale do not exist to justify many social service, homeless, and affordable housing providers to locate in Pearland. However,the City has continued to address the housing, social service, and economic development needs of the community, particularly those voiced by the residents and stakeholders, through the CDBG program and other funding to the extent possible. City of Pearland Annual Action Plan 5 CDBG Program Year 2018 OMB Control No:2506-0117(exp.06/30/2018) PR-05 Lead & Responsible Agencies—91.200(b) 1. Agency/entity responsible for preparing/administering the Consolidated Plan Describe the agency/entity responsible for preparing the Consolidated Plan and those responsible for administration of each grant program and funding source. Agency Role Name Department/Agency Lead Management&Oversight Pearland Administration Financial Management Pearland Finance Housing and Code Enforcement Pearland Fire Department Table 1—Responsible Agencies Narrative (optional) Soon after the inception of the City's CDBG Entitlement Jurisdiction status in 2007,the oversight and management of the CDBG program in Pearland was moved from the City Manager's Office to the Finance Department. A Grants Coordinator was hired, in addition to the ongoing consultancy provided by a subject matter expert in CDBG program management, and the annual planning and program implementation activities were delivered out of that oversight model. In 2017, to elevate the oversight and management of CDBG funds, program oversight and management was relocated back into the City Manager's Office (now referred to as Administration), with supportive financial management functions remaining in Finance. The Finance Department is responsible for paying all invoices and reimbursement requests from the U.S. Treasury through HUD's IDIS on-line system once the funds have been verified as eligible. The Code Enforcement Division of the Fire Department oversees the City's CDBG-funded code enforcement activities and housing rehabilitation program. Infrastructure projects are mostly carried out by the Capital Projects & Engineering or Public Works departments, with Parks and Recreation as a possibility if the scope of work is applicable to that department's domain. The City Attorney has been instrumental in maintaining Fair Housing compliance, and has participated in all HUD-sponsored training and professional development in that regard. Consolidated Plan Public Contact Information Joel Hardy Grants &Special Projects Administrator City of Pearland 3519 Liberty Drive Pearland,TX 77581 281-652-1795 JHardy@pearlandtx.gov City of Pearland Annual Action Plan 6 CDBG Program Year 2018 OMB Control No:2506-0117(exp.06/30/2018) AP-10 Consultation —91.100, 91.200(b), 91.215(1) 1. Introduction Provide a concise summary of the jurisdiction's activities to enhance coordination between public and assisted housing providers and private and governmental health, mental health and service agencies (91.215(1)) Pearland consults with a number of local. and regional agencies throughout the year and works to coordination with all agencies serving the community. Being a relatively small city, Pearland must rely heavily on the services provided by private agencies and Brazoria County, as well as the regional Council of Governments, and neighboring Harris County and Houston. Describe coordination with the Continuum of Care and efforts to address the needs of homeless persons (particularly chronically homeless individuals and families, families with children, veterans, and unaccompanied youth)and persons at risk of homelessness. The Gulf Coast Homeless Coalition (GCHC) is the official homeless coalition for Galveston, Brazoria, Chambers and Liberty Counties. It is located in Galveston but does hold some meetings in Brazoria County, though none in Pearland. Most of the GCHC's activities occur out of the Gulf Coast Center in Galveston, as the primary provider of shelter, transitional housing, and services to the homeless. The GCHC is part of the Balance of State for the Continuum of Care. The City works with Brazoria County who coordinates with Texas Homeless Network, the manager of the Balance of State program. There are no agencies in Pearland and only a few in Brazoria County that serve the homeless. Most homeless individuals and families must go to Galveston or Houston for services. Gulf Coast Center in Galveston is the primary provider of homeless information, services, and housing. The Salvation Army provides emergency shelter in Freeport, while the Women's Center provides shelter and transitional housing for victims of domestic violence, neither is geographically near Pearland. Forgotten Angels provides permanent housing for those adults with developmental and intellectual disabilities. Most of the residents would be homeless without the services of Forgotten Angels. The City is engaged in activities that support increases in situational homelessness and homeless prevention efforts due to Hurricane Harvey. These include mental health counseling services, more robust emergency subsistence, and a plan to increase the use of CDBG funds for housing rehabilitation and pending CDBG-DR funds being passed through to Pearland from the State of Texas. City of Pearland Annual Action Plan 7 CDBG Program Year 2018 OMB Control No:2506-0117(exp.06/30/2018) Describe consultation with the Continuum(s) of Care that serves the jurisdiction's area in determining how to allocate ESG funds, develop performance standards for and evaluate outcomes of projects and activities assisted by ESG funds, and develop funding, policies and procedures for the operation and administration of HMIS The Gulf Coast Homeless Coalition is the group that coordinates programs for serving homeless individuals and families. The Coalition covers Galveston, Brazoria, Chambers and Liberty Counties; however the member agencies are located primarily in Galveston County. The Coalition has moved the Continuum of Care management and oversight to the Texas Homeless Network under the Balance of State. The Galveston agencies are better equipped than the smaller Brazoria County agencies to manage the funding allocations and provide the much needed services to the region's homeless. As a result, no Brazoria County agency has received Continuum of Care funding, other than the fact that Gulf Coast Center receives the bulk of the funding and does have a presence in the County, but not in Pearland. The County staff is not closely involved in the Coalition or the Balance of State program and does not receive consultation from Texas Homeless Network in determining how to allocate its ESG funding, develop performance standards or evaluate outcomes. It is a participant in the THN HMIS system and does receive consultation when necessary for administering its local participation in HMIS. 2. Describe Agencies, groups, organizations and others who participated in the process and describe the jurisdiction's consultations with housing, social service agencies and other entities Pearland contacted a number of stakeholders, including housing, social service agencies, and advocacy groups to provide input into the priority needs in the community, the current services and service gaps, the equal distribution of services geographically and to all population groups, and fair housing issues. Among those participating in the process were: Texas General Land Office, Pearland Neighborhood Center, DCMC Partners LLC, The Odom Group Consultants,Texas Division of Emergency Management, Federal Emergency Management Agency, Counseling Connections for Change, Adult Reading Center, Pearland Independent School District (PISD), Pearland Convention & Visitors Bureau (CVB), Pearland Economic Development Corporation, Brazoria County Housing Authority, Houston-Galveston Area Council (HGAC), and others. Because housing and long-term economic resiliency are a critical component of Pearland's "road to recovery" following Hurricane Harvey, the City has included some State agencies in the process, for discussion sake. City of Pearland Annual Action Plan 8 CDBG Program Year 2018 OMB Control No:2506-0117(exp.06/30/2018) Table 2—Agencies,groups,organizations who participated Identify any Agency Types not consulted and provide rationale for not consulting Agencies that duplicate services prioritized in the City's 5-year Consolidated Plan were not specifically targeted for consultation. However, the City's citizen participation and public involvement processes do not restrict those perspectives and/or opinions from being provided for the sake of planning and program delivery,or spending. Other local/regional/state/federal planning efforts considered when preparing the Plan Name of Plan Lead Organization How do the goals of your Strategic Plan overlap with the goals of each plan? State Action Plan—Hurricane Harvey Texas General Land Office Hurricane Harvey Disaster Recovery—Housing Rehabilitation State Action Plan—Hurricane Harvey Tex_as General Land Office Hurricane Harvey—Blight Removal/Mitigation Table 3—Other local/regional/federal planning efforts Narrative (optional) City of Pearland Annual Action Plan 9 CDBG Program Year 2018 OMB Control No:2506-0117(exp.06/30/2018) AP-12 Participation —91.105, 91.200(c) 1. Summary of citizen participation process/Efforts made to broaden citizen participation Summarize citizen participation process and how it impacted goal-setting The Citizen Participation process will continue to be an on-going element of the CDBG program. Each year,the City makes a concerted effort to involve the residents in all of its planning activities. In preparation for PY 2017, the City hosted two public hearings and a pre- application workshop for public service providers. Both public hearings and the workshop were advertised in the front section of the general circulation newspaper and posted on the City's website. The two public hearings were conducted at or after 6:00 PM, one on May 14, 2018 and the second on August 6, 2018, to allow participation by residents that work during the day. The public hearings included an overview of the CDBG process with time given to receive the comments of every attendee regarding housing, special population, community development and fair housing issues in Pearland. There was an opportunity for discussion on better ways to collaborate and reach more residents with services and opportunities to become involved in CDBG planning. An extended 30-day comment period was included in the process. The City has attended various meetings of public service agencies and provided information and contacts for them to share with their staff, volunteers and program participants regarding the CDBG program. The City is committed to working with public service agencies in identifying needs, priorities, funding opportunities and opportunities to collaborate. One of the most effective avenues to involving residents in the planning process is through the agencies that directly serve them. Pearland will continue to encourage citizen participation, with particular emphasis on participation by persons of very-low, low, and moderate income and those who are residents of target areas in which funds are allocated or proposed to be allocated. Citizen Participation Outreach The City of Pearland has been involved in the public participation process and has relied on the social service agencies to assist in outreach to the community, particularly minorities, non-English speakers, elderly and persons with disabilities. The social service agencies were asked to provide to their program participants information about CDBG and contact information and notices of public hearings. Annual Action Plan 10 2018 OMB Control No:2506-0117(exp.06/30/2018) The City will continue to attempt to host public hearings in different locations around the City in future years, particularly in CDBG Target Areas and/or buildings housing subrecipient agencies. The City will make information available at the public venues and will provide meeting and public hearing notices to agencies for their consumers. The Mayor and City Council are also ambassadors into the community to garner more public participation. Annual Action Plan 11 2018 OMB Control No:2506-0117(exp.06/30/2018) Sort Mode of Target of Outreach Summary of Summary of Summary of URL(If applicable) Order Outreach Response and comments received comments attendance not accepted and reasons 1 Public Pearland Citizens — Full Council (1) Mental None Agenda May 14, 2018 Notice#1 News Subscribers Chamber — health https://pearlandtx.civicweb.net/Portal/ Reasonable, services — Meetinglnformation.aspx?Id=288 normal high priority attendance. Minutes May 14, 2018 https://www.pearlandtx.gov/home/sh owdocument?id=22185 2 Public Pearland Citizens — Full Council (2) "How can None Agenda August 6, 2018 Notice#2 News Subscribers Chamber — CDBG funds https://pearlandtx.civicweb.net/Portal/ small/limited be used to Meetinglnformation.aspx?Id=323 attendance. assist with Utility Billing issues?" Annual Action Plan 12 2018 OMB Control No:2506-0117(exp.06/30/2018) Sort Mode of Target of Outreach Summary of Summary of Summary of URL(If applicable) Order Outreach Response and comments received comments attendance not accepted and reasons 3 Public Pearland Citizens — Full Council (3) "How will None Agenda August 6, 2018 Notice#2 News Subscribers Chamber — staff ensure https://pearlandtx.civicweb.net/Portal/ small/limited there are no Meetinglnformation.aspx?Id=323 attendance. duplication of benefits or services where housing rehab program activities are concerned, related to other Hurricane Harvey assistance?" Table 4—Citizen Participation Outreach Annual Action Plan 13 2018 OMB Control No:2506-0117(exp.06/30/2018) Expected Resources AP-15 Expected Resources —91.220(c)(1,2) Introduction Anticipated Resources Program Source of Uses of Funds Expected Amount Available Year 1 Expected Narrative Description Funds Annual Program Prior Year Total: Amount Allocation: Income:$ Resources: $ Available $ $ Remainder of ConPlan $ Hurricane Harvey DR HUD via funding for land Hurricane Hurricane Harvey Texas acquisition/buyouts, Harvey — CDBG- General Land Disaster Recovery $2,727,372 $0 $0 $2,727,372 $2,727,372 housing rehabilitation DR Office —Housing and related public services. Hurricane HUD via Hurricane Harvey Hurricane Harvey DR Harvey — CDBG- Texas funding for local Disaster Recovery $2,657,147 $0 $0 $2,657,147 $2,657,147 General Land infrastructure DR —Infrastructure Office improvements. Hurricane FEMA via Hurricane Harvey Hurricane Harvey Texas Harvey Hazard Disaster Recovery buyout funds for Mitigation Grant flood- Division of — Housing and $5,500,000 $0 $0 $5,500,000 $5,500,000 affected homes and Program Emergency Flood Mitigation improvements. Management Table 5-Expected Resources—Priority Table Annual Action Plan 14 2018 OMB Control No:2506-0117(exp.06/30/2018) Explain how federal funds will leverage those additional resources (private, state and local funds), including a description of how matching requirements will be satisfied These funds will leverage resource limitations that have failed to fully serve those with mental health service needs and affordable housing. Federal funds will be used to fill in gaps where uninsured/underinsured individuals with mental health needs are concerned, as there are often situations where the beneficiary cannot afford co-pays, full services or other aspects of the costs of service. If appropriate, describe publically owned land or property located within the jurisdiction that may be used to address the needs identified in the plan No publically owned land or property is being used to address any of the needs identified in the plan at this time. Annual Action Plan 15 2018 OMB Control No:2506-0117(exp.06/30/2018) Annual Goals and Objectives AP-20 Annual Goals and Objectives Goals Summary Information Sort Order Goal Name Start End Category Geographic Needs Funding Goal Outcome Indicator Year Year Area Addressed ___ 1 Code Enforcement 2017 2021 Non-Housing CDBG- Code CDBG:$15,000 Housing Code (15) Community eligible Enforcement Enforcement/Foreclosed Property Development areas LMA Care: 150 Annual Housing Unit 2 Owner Occupied 2017 2021 Affordable City wide Owner CDBG:$198,501 Homeowner Housing Housing Housing LMC Occupied Rehabilitated: Rehabilitation and Housing 15 Annual Housing Unit Administration Rehabilitation (14A and 14H) _ 3 Mental Health 2017 2021 Non-Housing City wide Mental health CDBG:$35,000 Public service activities other than Services Community LMC and services Low/Moderate Income Housing (050) Development Urgent Need Benefit: 50 Annual Persons Assisted 4 Subsistence 2017 2021 Non-Housing City wide Subsistence CDBG:$23,500 Homelessness Prevention: Payments Community LMC Payments 50 Annual Persons Assisted (050) Development 5 Clearance/Demolition 2017 2021 Non-Housing City wide Slum and CDBG:$20,000 Housing Code (4) Community (Spot Basis Blight Removal Enforcement/Foreclosed Property Development and LMA) Care: 5 Annual Housing Unit 6 Neighborhood 2017 2021 Non-Housing LMC Facility CDBG:$20,000 Public service activities other than Facilities(03E) Community Improvements Low/Moderate Income Housing Development and Repairs Benefit: 50 Annual Persons Assisted Table 6—Goals Summary Annual Action Plan 16 2018 OMB Control No:2506-0117(exp.06/30/2018) Goal Descriptions 1 Goal Name Code Enforcement Goal Provide code enforcement activities in the CDBG-eligible neighborhoods. Description 2 Goal Name Owner Occupied Housing Rehabilitation Goal Provide housing rehabilitation and accessibility retrofitting to low- to moderate-income homeowners to address code Description violations and/or make the house safer and more livable. 3 Goal Name Mental Health Services Goal Assist in funding counseling and other mental health services for children,families and adults. Description 4 Goal Name Subsistence Payments Goal Provide funding for one-time rent/utility assistance to those in danger of eviction or utility cut-offs. This will help ensure Description that the household does not become homeless before they can get back on their feet of secure long-term assistance. Goal Name Clearance/Demolition 5 Goal Removal of approximately 5 blighted properties that require demolition on an eligible spot-basis. Description Goal Name Neighborhood Facilities 6 Goal Improvements and repairs to the Adult Reading Center in Pearland,to improve the service delivery facility aimed at reducing Description illiteracy and unemployment. Annual Action Plan 17 2018 OMB Control No:2506-0117(exp.06/30/2018) Projects AP-35 Projects— 91.220(d) Introduction During PY 2018, the City will focus its CDBG funds on improving the housing stock, increasing resources available to social service agencies meeting local underserved needs, and other small community development activities. Projects # Project Name 1 Code Enforcement 2 Housing Rehabilitation 3 Mental Health Counseling-Counseling Connections for Change 4 Emergency Subsistence Payments—Pearland Neighborhood Center 5 Clearance/Demolition—Removal of Blighted Property 6 Neighborhood Facilities—Facility Repairs(Adult Reading Center) Table 7-Project Information Describe the reasons for allocation priorities and any obstacles to addressing underserved needs Allocation priorities for this program year are based on the 5-year Consolidated Plan. Funding limitations are the primary challenges/obstacles to addressing underserved needs. Input from the various stakeholders during this Action Plan development process led to the priorities of code enforcement, housing rehabilitation, providing the underserved with mental health services, removing slum and blight, repairing and improving non-profit facilities, and providing emergency assistance to those in danger of eviction or losing utilities. Annual Action Plan 18 2018 OMB Control No:2506-0117(exp.06/30/2018) AP-38 Project Summary Project Summary Information No. Project Goals Supported Geographic Areas Needs Addressed Funding Pearland Target Area —Historic Code Enforcement Code Enforcement Code Enforcement CDBG:$15,000 Old Townsite Description Personnel costs for the time and effort for salaries and benefits of the code enforcement officer serving the CDBG Target Area. Target Date for 09/30/2018 Completion Estimated Annual 1 150 households/homes that are comprised of an estimated 405 Pearland residents. Beneficiaries Census Tract—Block Groups: Location Description 660900- 660900- 660300- 660900- 660702- 660500- 660500- 660200- 660500- 660500- 661900- 4 1 1 3 3 2 6 1 4 5 1 Patrols and investigated complaints of code violations will assist City personnel in identifying and citing property owners for local Planned Activities ordinance infractions,resulting in enforcement efforts intended to result in compliance. Annual Action Plan 19 2018 OMB Control No:2506-0117(exp.06/30/2018) No. Project Goals Supported Geographic Areas Needs Addressed Funding Owner-Occupied Housing Owner-Occupied Housing Rehabilitation City-Wide,based on LMI CDBG:$198,501 Rehabilitation Housing Rehabilitation Description Housing rehabilitation to 15 owner-occupied homes. Target Date for Completion 09/30/2018 2 15 homes with an estimated total of 40 low-moderate income residents.Many of these will be elderly and/or Estimated Annual Beneficiaries disabled,and several may have urgent unmet needs from damages caused by Hurricane Harvey. Location Description City-Wide,based on LMI of eligible,qualified households. Planned Activities Applicant review, approval, damage assessment and repair of 15 eligible, qualified owner-occupied homes located in the City of Pearland. Annual Action Plan 20 2018 OMB Control No:2506-0117(exp.06/30/2018) No. Project Goals Supported Geographic Areas Needs Addressed Funding City-Wide, based on LMI Counseling Connections for and students within the Mental Health Services Mental Health Services CDBG:$35,000 Change Pearland Independent School District Mental health counseling, intervention services and focus group activities for low-moderate income Description individuals and households, as well as students facing the outcomes of Hurricane Harvey; particularly as it relates to those that may face situational homelessness or other impediments to livability. Target Date for Completion 09/30/2018 3 A total of 50 low-moderate income individuals and households, which includes secondary school students Estimated Annual Beneficiaries facing the outcomes of Hurricane Harvey; particularly as it relates to those that may face situational homelessness or other impediments to livability. City-Wide,based on LMI of eligible,qualified households and referrals from the school district involving free- Location Description reduced lunch program participants. Mental health counseling, intervention services and focus group activities for low-moderate income Planned Activities individuals and households, as well as students facing the outcomes of Hurricane Harvey; particularly as it relates to those that may face situational homelessness or other impediments to livability. Annual Action Plan 21 2018 OMB Control No:2506-0117(exp.06/30/2018) No. Project Goals Supported Geographic Areas Needs Addressed Funding Rent and utility Pearland Neighborhood Center Subsistence Payments City-Wide,based on LMI CDBG:$23,500 assistance Urgent assistance for individuals and households facing evictions and/or utility cut-offs that need short-term Description support in the form of indirect payments to landlord and/or utility management entities for rent or utility payments. Target Date for Completion 09/30/2018 4 Estimated Annual Beneficiaries A total of 50 low-moderate income individuals and households. Location Description City-Wide,based on LMI of eligible,qualified households. Urgent assistance for individuals and households facing evictions and/or utility cut-offs that need short-term support in the form of indirect payments to landlord and/or utility management entities for rent or utility Planned Activities payments. Activities include application review, limited financial literacy counseling and other intake and qualification procedures. • Annual Action Plan 22 2018 OMB Control No:2506-0117(exp.06/30/2018) No. Project Goals Supported Geographic Areas Needs Addressed Funding Removal of Blighted Pearland Target Areas and Spot- Community Development Slum/Blight Removal CDBG:$20,000 Properties Basis Conditions Description Personnel costs for the time and effort for salaries and benefits of the code enforcement officer serving the CDBG Target Area. Target Date for 09/30/2018 Completion Estimated Annual 5 5 demolition/clearance. Beneficiaries Census Tract—Block Groups and other areas suffering from the need for eligible slum/blight removal. Location Description 660900- 660900- 660300- 660900- 660702- 660500- 660500- 660200- 660500- 660500- 661900- 4 1 1 3 3 2 6 1 4 5 1 Patrols and investigated complaints of code violations will assist City personnel in identifying and citing property owners for local Planned Activities ordinance infractions,resulting in enforcement efforts intended to result in compliance. Annual Action Plan 23 2018 OMB Control No:2506-0117(exp.06/30/2018) No. Project Goals Supported Geographic Areas Needs Addressed Funding Adult Reading Center Neighborhood Facilities Neighborhood Facilities CDBG:$20,000 Improvements Description Facility repairs and/or improvements that serve low-moderate income clientele at local social service agency—Adult Reading Center. Target Date for 09/30/2018 Completion 6 Estimated Annual 50 individuals that participate in literacy programs and workforce development activities. Beneficiaries Location Description 2246 N Washington Ave,Pearland,TX 77581 Planned Activities Install new roofing, damaged flooring and flooring that needs improvement, as well as plumbing repairs and other deficiencies in the facility. Annual Action Plan 24 2018 OMB Control No:2506-0117(exp.06/30/2018) .4, is • Annual Action Plan 25 2018 OMB Control No:2506-0117(exp.06/30/2018) 9 AP-50 Geographic Distribution —91.220(f) Description of the geographic areas of the entitlement (including areas of low-income and minority concentration)where assistance will be directed Geographic Distribution Target Area Percentage of Funds Table 8-Geographic Distribution Rationale for the priorities for allocating investments geographically All area-based projects are located within established CDBG Target Areas with at least 40.93% low- moderate-income households. The primary basis for allocating investments being the City's 3rd 5-Year Consolidated Plan, other supportive activities produce specific priorities each year towards meeting longer term goals and objectives.These include observational research by local code enforcement support groups such as the Eyes of Pearland and the Citizen Patrol,the City's Capital Improvement Program (CIP), the Pearland Citizen Survey, Subrecipient funding applications, and demographic indications of the need for specific investments. Therefore, in addition to Fair Housing activities, the City will plan for the implementation of four projects that serve low-moderate income residents of the City of Pearland. The City proposes to use Community Development Block Grant funds from HUD for: • Continuation of its Code Enforcement in Low-Moderate Income Target Areas; • Continuation of its single-family housing rehabilitation program for low-moderate income Pearland residential homeowners that occupy such residences; • Continuation of a program to provide short-term emergency financial assistance to eligible, local, low-moderate income residents that are facing evictions, utility shut-offs, or even prescription medicines for the elderly or mentally-disabled adults; • Mental health services to low-moderate income residents; • Remediation and removal of blight; and • Improvements to dilapidated neighborhood facilities or those experiencing excessive wear and tear. • Code Enforcement(CDBG Eligibility Matrix Code 15) Code Enforcement is an eligible expense under 24 CFR 570.202(c), and will be used to deploy a Code Enforcement Officer to serve low-moderate income areas of town (CDBG Target Area) to identify code violations, improve education and awareness of local standards, cite violators of local ordinances, and encourage violators to self-remediate code infractions to avoid citations. The Census block group areas affected will include: Annual Action Plan 26 2018 OMB Control No:2506-0117(exp.06/30/2018) ST CDBGU CDBG STU CDB AT COU COUNTY TRA BLK LOW LOWMO LOWM OGID NAME SAB GTY E NTY NAME CT GRP MOD DUNIV ODPCT Pearla Brazoria 660 484080 nd TX 52 48 039 County 900 4 1080 1315 82.13% Pearla Brazoria 660 , 484080 nd TX 52 48 039 County 900 1 1105 1585 69.72% Pearla Brazoria 660 484080 nd TX 52 48 039 County 300 1 505 745 67.79% Pearla Brazoria 660 484080 nd TX 52 48 039 County 900 3 950 1500 63.33% Pearla Brazoria 660 484080 nd TX 52 48 039 County 702 3 590 1085 54.38% Pearla Brazoria 660 484080 nd TX 52 48 039 County 500 2 565 1045 54.07% Pearla Brazoria 660 484080 nd TX 52 48 039 County 500 6 1250 2665 46.90% Pearla Brazoria 660 484080 nd TX 52 48 039 County 200 1 245 550 44.55% Pearla Brazoria 660 484080 nd TX 52 48 039 County 500 4 655 1505 43.52% Pearla Brazoria 660 484080 nd TX 52 48 039 County 500 5 810 1965 41.22% Pearla Brazoria 661 484080 nd TX 52 48 039 County 900 1 790 1930 40.93% Annual Action Plan 27 2018 OMB Control No:2506-0117(exp.06/30/2018) Affordable Housing AP-55 Affordable Housing—91.220(g) Introduction One Year Goals for the Number of Households to be Supported Homeless 25 Non-Homeless 20 Special-Needs 25 Total 70 Table 9-One Year Goals for Affordable Housing by Support Requirement One Year Goals for the Number of Households Supported Through Rental Assistance 50 The Production of New Units 0 Rehab of Existing Units 15 Acquisition of Existing Units 5 Total 70 Table 10-One Year Goals for Affordable Housing by Support Type Discussion The City will provide housing rehabilitation services, generally up to $15,000 for each eligible home, to the homes owned and occupied by low-to moderate-income residents. Historically, approximately 80% of the eligible applicants have been elderly and about half have been disabled. There are no private agencies or CHDOs requesting state or federal funding at this time to construct or improve affordable housing in Pearland. The City will review and comment favorably to funders for any viable applications we are presented. Annual Action Plan 28 2018 OMB Control No:2506-0117(exp.06/30/2018) AP-60 Public Housing— 91.220(h) Introduction Actions planned during the next year to address the needs to public housing Not applicable Actions to encourage public housing residents to become more involved in management and participate in homeownership Not applicable If the PHA is designated as troubled, describe the manner in which financial assistance will be provided or other assistance Not applicable Discussion Not applicable Annual Action Plan 29 2018 OMB Control No:2506-0117(exp.06/30/2018) AP-65 Homeless and Other Special Needs Activities— 91.220(i) Introduction Describe the jurisdictions one-year goals and actions for reducing and ending homelessness including: Reaching out to homeless persons (especially unsheltered persons) and assessing their individual needs There are very few services for the homeless, and no shelters, in Pearland. While the Gulf Coast Homeless Coalition serves Pearland, its main focus is on Galveston Island, with limited activity in the Angleton area far south of Pearland. Pearland Neighborhood Center,which the City supports with CDBG funds, does provide food and referrals to homeless individuals and families. The City continues to support Forgotten Angels which provides permanent supportive housing to disabled adults who would be homeless if not for their group homes and supportive services. Addressing the emergency shelter and transitional housing needs of homeless persons. There are no emergency or transitional housing programs in Pearland or the immediate area. Gulf Coast Center provides a limited number of units in Brazoria County relatively far removed from Pearland. Bay Area Turning Point, a domestic violence shelter, can serve Pearland but is located in Webster a significant distance from Pearland. Helping homeless persons (especially chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth) make the transition to permanent housing and independent living, including shortening the period of time that individuals and families experience homelessness, facilitating access for homeless individuals and families to affordable housing units, and preventing individuals and families who were recently homeless from becoming homeless again. Goodwill Industries no longer has a presence in Pearland, but does receive clients from Brazoria County, specifically Pearland. They provide rapid rehousing,job training, and supportive services to homeless individuals and families, particularly veterans, at one location in Galveston and three locations in or south of downtown Houston. Though not easily accessible, they are available to provide the services to Pearland residents. Helping low-income individuals and families avoid becoming homeless, especially extremely low-income individuals and families and those who are: being discharged from publicly funded institutions and systems of care (such as health care facilities, mental health facilities, foster care and other youth facilities, and corrections programs and institutions); or, receiving assistance from public or private agencies that address housing, health, social services, Annual Action Plan 30 2018 OMB Control No:2506-0117(exp.06/30/2018) employment, education, or youth needs. The City funds Pearland Neighborhood Center to provide emergency rent/utility assistance and food assistance to needy households to prevent homelessness, but the program does not specifically target or track those who have been discharged from a publicly funded institution or system of care. There is no local HMIS system and no local agencies specifically serving the homeless. Pearland Neighborhood Center tracks the services they provide and that clients receive from other agencies, but the information is self- declared and not in a centralized HMIS system. Those who are accessing health, housing, employment, and other social services are residing in areas close to those services,such as Alvin or Angleton in Brazoria County,or Houston. The City's HERO program helps to prevent low-income homeowners from becoming homeless when their homes are no longer safe or meet City codes. Annual Action Plan 31 2018 OMB Control No:2506-0117(exp.06/30/2018) AP-75 Barriers to affordable housing— 91.220(j) Introduction: Actions it planned to remove or ameliorate the negative effects of public policies that serve as barriers to affordable housing such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges, growth limitations, and policies affecting the return on residential investment Discussion: The City of Pearland has reviewed and analyzed the public policies affecting the development, availability, and cost of housing accessible to the low income and protected classes. All relevant city ordinances have been reviewed and none impede fair housing choice. The majority of the city's housing stock was developed by developers in the Pearland Extraterritorial Jurisdiction (ETJ) and then annexed into the City Limits. Therefore, ordinances regarding building type and size were not applicable at the time of construction. New housing developments within the city limits must follow standard 2015 international building codes, with a few local amendments. While the City does have minimum lot size requirements for development, the ordinance is in keeping with the general planning practices throughout Texas. A major barrier to the development of affordable housing is the requirement to meet minimum standards for the construction of windstorm resistant housing. These standards have been set forth by the Texas Department of Insurance Windstorm in Title 28 of the V.T.C.A. Administrative Code, Section 5.4011 and adopted by the City of Pearland. These standards have increased construction costs. Additionally, the regulatory methods of reducing flood losses in new construction can increase the overall cost of multi-family developments and subdivisions. One regulatory issue that can have a disparate impact on affordable and fair housing is the lack of a fair housing ordinance, and the City is committed to reviewing the viability and benefit of establishing such an ordinance during the next five years. An additional barrier, not related to public policies, include the relatively high income levels of residents and those choosing to move to Pearland, driving the demand for higher-priced housing. The majority of the housing in Pearland is less than 20 years old, pricing it out of reach for most renters and many homebuyers. Strategy to Remove or Ameliorate the Barriers to Affordable Housing Without the funds that HOME and other HUD programs outside of CDBG provide, and with the very limited CDBG funding,the City can do little to ameliorate the barriers to affordable housing. What it can do and has committed to doing is to assist Brazoria County Housing Authority to Annual Action Plan 32 2018 OMB Control No:2506-0117(exp.06/30/2018) access landlords and encourage that they accept Section 8 HCVs and encourage Pearland residents who have secured vouchers to seek out housing in Pearland. The City will also work with Brazoria County, to the extent feasible, to identify potential developers who would be willing to become CHDOs and construct affordable housing in the ETJ. The City will continue to review LIHTC applications and give positive responses to those applications to the State that are feasible and sound. The City will continue its owner occupied housing rehabilitation program to assist low-income homeowners in remaining in their homes by bringing them up to code, making them accessible, and stemming additional damage from deteriorated roofs or damaged foundations. The City will work with the County or H-GAC when disaster recovery funds for housing are released to ensure that Pearland residents receive equal access to the funds. The City will continue to support the efforts of Forgotten Angels, which provides supportive housing in a group home environment to adults with intellectual and developmental disabilities. The City will also be reviewing the current ordinances and policies for any barriers to affordable and fair housing and will be completing a new Fair Housing Plan. In conjunction with the plan will be an investigation into the viability and efficacy of adopting a fair housing ordinance that would indirectly address affordable housing. By improving the infrastructure, especially storm drainage, in older, low-income areas, not only will the homes be better protected against damage but the residents will have a better quality of life. Annual Action Plan 33 2018 OMB Control No:2506-0117(exp.06/30/2018) AP-85 Other Actions —91.220(k) Introduction: Pearland is dedicated to investing in and overcoming the obstacles that face the City and Pearland agencies. In an effort to meet the ever-evolving needs of our residents,we are committed to the long-term support of our community. The actions to be taken in PY 2018 include developing the institutional structure, improving housing conditions and neighborhood quality, and addressing the social service needs of the community. Actions planned to address obstacles to meeting underserved needs Direct actions to address the obstacles to meeting underserved needs include providing needed CDBG funds to community partners for their on-going building improvements. We are addressing the needs in many different angles: The Adult Reading Center- The goal of The Adult Reading Center is to improve literacy while encouraging community involvement. Part of the CDBG funded improvements will include repair to the roofing structure, flooring and other elements allowing the center to continue to serve and meet the needs of their eligible clientele. Neighborhood Centers- For those who are having a hard time paying necessary household bills, we are teaming with our community partners to help our residents address these obstacles.Through our partnership with Pearland Neighborhood Centers, we can offer our low to moderate income single family owner occupied beneficiaries with assistance emergency subsistence payments progress (rental/utilities assistance). We believe that providing this much needed CDBG allocation will help keep our families moving forward on the path toward success. Counseling Connection for Change- Our partnership with Counseling Connection for Change provides mental health services to the under-served community who face challenges post Hurricane Harvey. Families who are dealing with serious mental health service crises, are often not in a financial position to allocate funds for these necessary services. Working with Pearland ISD, student and family counseling services post Hurricane Harvey will be available through CDBG funding to ensure that families are not only recovering in their physical homes, but they are mentally recovering as well. Counseling services to the uninsured and underinsured allows access to services that would not ordinarily be available. Students in our school's district are reeling in the aftermath of the tragedy of Hurricane Annual Action Plan 34 2018 OMB Control No:2506-0117(exp.06/30/2018) Harvey. As parents work to rebuild, we must make sure our students mental well-being doesn't get off track. We are committed to maintaining accessibility, affordability and sustainability for mental health services. Housing Rehabilitation Program- The Housing Rehabilitation Program overcomes barriers to affordable housing. The City of Pearland offers this program to address the needs of our citizens who have dilapidated homes in need of major repair. In an effort to maintain pride in their home and reduce abandonment, we allocate CDBG funds for needed repairs to provide a suitable living environment. Without the CDBG funds, residents could move dangerously close to becoming homeless. The City's program provides a way for at least 15 low-to moderate-income owners who have deteriorating homes, particularly with code violations, to repair and preserve their property. Actions planned to foster and maintain affordable housing Through our partnership with Pearland Neighborhood Centers,we can offer our low to moderate income single family owner occupied beneficiaries with assistance emergency subsistence payments progress (rental/utilities assistance). The Housing Rehabilitation Program overcomes barriers to maintain affordable housing. The City of Pearland offers this program to address the needs of our citizens who have dilapidated homes in need of major repair. In an effort to maintain pride in their home and reduce abandonment, we allocate CDBG funds for needed repairs to provide a suitable living environment. Without the CDBG funds, residents could move dangerously close to becoming homeless. The City's program provides a way for at least 15 low-to moderate-income owners who have deteriorating homes, particularly with code violations, to repair and preserve their property. Actions planned to reduce lead-based paint hazards Each of the 15 homes slated for approved for housing rehabilitation will be evaluated for lead- based paint and assessed as to the level of rehabilitation and if the work will disturb existing paint in houses built before 1978. Based on the level of rehabilitation, appropriate remediation will take place for those built before 1978. The owners of those homes will be given brochures on the dangers of lead and lead-based paint, along with information on managing future repairs to Annual Action Plan 35 2018 OMB Control No:2506-0117(exp.06/30/2018) reduce LBP hazards. If there are children in the homes, the owners will be encouraged to have them tested for elevated lead levels. Actions planned to reduce the number of poverty-level families None of the CDBG-funded activities for PY 2018 will directly reduce the number of poverty-level families, but the City is committed to providing whatever assistance we can through working with local agencies, community colleges, and UHCL in planning and implementing educational and job training programs that will facilitate beneficiaries in moving out of poverty. Actions planned to develop institutional structure The City continually strives to develop and improve institutional structure within our own departments, in other agencies and in collaborative efforts. During PY 2018, the City will ensure that staff members will attend relevant trainings to increase their knowledge of HUD and CDBG regulations and programming. These may be on-site trainings or webinars. The City current collaborates closely with Brazoria County's Community Development office and this will continue in PY 2018. All CDBG-funded agencies will receive one-on-one training during contract negotiations and monitoring to enhance their internal and collaborative structure with the CDBG program. Actions planned to enhance coordination between public and private housing and social service agencies There are no public or private housing agencies in Pearland, however the City staff encourages local social service agencies to coordinate with housing activities in Brazoria County outside of the City. Additionally,the City does work closely with Forgotten Angels which maintains 12 group homes for the intellectually disabled in Pearland. They are self-sufficient in-service provision through their Day Flab center, in-house transportation, and other in-house services. However, the City is a conduit to assist in linking Forgotten Angels to local mainstream services which may benefit their residents, as well as informing social service agencies and advocacy groups about Forgotten Angels and its housing and services. Discussion: With limited resources and limited private-sector institutional structure, Pearland is restricted in the level of collaborative enhancements and capacity-building it can accomplish. However, during PY 2018, it will continue to advocate for more collaboration among local agencies and between local and regional agencies; identify and encourage funding applications from viable Annual Action Plan 36 2018 OMB Control No:2506-0117(exp.06/30/2018) local agencies; and, increase the institutional knowledge of agencies and city staff about the CDBG program and its requirement. • Annual Action Plan 37 2018 OMB Control No:2506-0117(exp.06/30/2018) Program Specific Requirements AP-90 Program Specific Requirements —91.220(1)(1) The City of Pearland receives no program income and will not be expending funds on urgent need activities. Community Development Block Grant Program (CDBG) Reference 24 CFR 91.220(1) (1) Projects planned with all CDBG funds expected to be available during the year are identified in the Projects Table. The following identifies program income that is available for use that is included in projects to be carried out. 1.The total amount of program income that will have been received before $0 the start of the next program year and that has not yet been reprogrammed 2.The amount of proceeds from section 108 loan guarantees that will be $0 used during the year to address the priority needs and specific objectives identified in the grantee's strategic plan 3.The amount of surplus funds from urban renewal settlements $0 4. The amount of any grant funds returned to the line of credit for which the $0 planned use has not been included in a prior statement or plan. 5.The amount of income from float-funded activities $0 Total Program Income $0 Other CDBG Requirements 1.The amount of urgent need activities $100,000 2. The estimated percentage of CDBG funds that will be used for activities that 71.00% benefit persons of low and moderate income. Overall Benefit —A consecutive period of one, two or three years may be used to determine that a minimum overall benefit of 70% of CDBG funds is used to benefit persons of low and moderate income. Specify the years covered that include this Annual Action Plan. Discussion: The City of Pearland receives no program income, but may be expending funds on urgent need activities due to Hurricane Harvey. The percentage of CDBG funds that will be used for activities benefitting LMI persons is based on the allocation to public services and housing rehab for which 100% of the beneficiaries are LMI, plus all of the subrecipients receiving CDBG funds from Pearland's allocation which serves 100% LMI individuals, plus the share of the LMI population in the area-based projects. Annual Action Plan 38 2018 OMB Control No:2506-0117(exp.06/30/2018) o�Q0`EN7,0 U.S. Department of Housing and Urban Development 1°61 i '*`� Houston Field Office, Region VI Office of Community Planning and Development �� 1301 Fannin, Suite 2200 "ems DEvev°e Houston, Texas 77002 (713) 718-3199- FAX (713) 718-3256 www.hud.gov SEP 2 7 201% Mr. Jon Branson Deputy City Manager City of Pearland 3519 Liberty Drive Pearland, Texas 77581 Dear Mr. Branson: SUBJECT: Fiscal Year(FY) 2018 Funding Approval Pearland,Texas The review of the FY 2018 Action Plan has been completed and determined to be in compliance with the Action Plan regulations at 24 CFR 91.220 and I am pleased to transmit the approval package. We believe that by following the strategies contained in the City's Action Plan, the ability to enhance and shape HUD formula grant programs into effective, coordinated community and economic development plans of action for community revitalization can be realized. The U. S. Department of Housing and Urban Development (HUD) is pleased to announce an award of funds to the City of Pearland, Texas for the program year that began on October 1, 2018. As a result, the following dollar amount is now available to the City for the Community Planning and Development (CPD) program: Community Development Block Grant (CDBG) $390,001 Enclosed are three copies each of the FY 2018 Grant Agreement that incorporates the CDBG Entitlement Agreement, the CDBG (HUD 7082.)This constitutes the contract between HUD and the City of Pearland. You should note any special conditions included in the Funding Approvals. Please sign the enclosed sets of Grant Agreements, each with an original signature, in accordance with the instructions. Retain one copy for your records and return the other two copies to our office. Failure to execute and return the grant agreement within 60 days of the date of this letter may be deemed to constitute rejection of the grants and cause for HUD to determine that the funds are available for reallocation to other grantees. Once HUD receives the executed grant agreements, you may proceed to have the proposed FY 2018 projects created in IDIS. We also bring to your attention that the Consolidated Annual Performance and Evaluation Report (CAPER) is due in this office no later than 90 days following the end of the 2017 program year. Therefore, your submission of the CAPER is to be in our office on or before December 29, 2018. HUD congratulates the City of Pearland,Texas on the grant awards and we are looking forward to assisting you in accomplishing your program's identified goals designed to primarily benefit low and moderate-income persons. If you have any questions or desire assistance regarding this grant notification letter, the enclosures or other items related to HUD's programs, please let me know or contact Darlene Swearington, Senior Community Planning and Development Representative, at (713)718-3121. Sincerely St:Orr. . On on, CPD Director Communi i Pl=nning and Development Enclosures • • FY 2018 GRANT AGREEMENT This Grant Agreement is made by and between the United States Department of Housing and Urban Development (HUD) and the City of Pearland,Texas, Grantee. The Grantee's Tax Identification Number is 74-6028909. Community Development Block Grant(CDBG) Program Grant Number: B-18-MC-48-0400 Duns Number: 020796397 The terms of the CDBG award in the amount of$390,001.00 which are the subject of this part of this Agreement are set forth in the attached executed form HUD -7082,Funding Approval/Agreement. The special condition in your Grant Agreement and Funding Approval concerning the review procedures under Executive Order(EO) 12372,Intergovernmental Review of Federal Programs, and HUD's implementing regulations at 24 CFR Part 52 restricts the obligation or expenditure of funds for the planning or construction of water or sewer facilities until the completion of the review process and receipt of written notification of release of funds for such activities from HUD. The condition requires that in the event you amend or otherwise revise your Consolidated and/or Action Plan to use funds for the planning or construction of water or sewer facilities, you must receive written release of funds from HUD before obligating or expending funds for such activities. In order to establish a Line of Credit for the Fiscal Year 2018 grant, it will be necessary for you to execute and return two copies of the Grant Agreement. In addition, if there is a need to delete or add individuals authorized to access eLOCCS, a Security Access Authorization Form (HUD-27054) must be prepared, notarized, and returned to this office with the Grant Agreement. Also if there is a need to establish or change the depository account to which these grant funds are to be wired, a Direct Deposit Sign-Up Form (SF-1199A) must be completed by you and your financial institution and mailed to this office. CDBG grants funds have historically been disbursed through the Integrated Disbursement and Information System (IDIS) on a"first-in, first-out" basis (FIFO). Under this methodology, CDBG grantees do not designate a specific fiscal year grant in IDIS when funding an activity or when creating an expenditure voucher. In general, all obligations and disbursements are recorded against the earliest annual grant with an available balance, thereby exhausting the oldest grant available before recording expenditures against the next grant. However, the HUD Inspector General has deemed this approach to be inconsistent with generally accepted government accounting principles and CPD is in the position of having to the adjust the disbursement approach irj IDIS from FIFO to a grant-based approach. CPD believes that this change should not cause significant disruptions to grantee processes as many grantees' accounting systems typically track expenditures according to each annual grant. However, some grantees may have to make some adjustments and certain new steps have been programmed into IDIS to accommodate the change. CPD is in the process of finalizing a rule to implement these changes for the CDBG program to be published in the Federal Register. CPD will issue alternative guidance to ensure that grantees have appropriate instructions for beginning to draw upon their FY 2018 CDBG funds. Please do not draw funds until such guidance is issued; otherwise grantees may have to correct information in IDIS once the guidance is public. As a recipient of HUD financial assistance covered by Section 3 of the HUD Act of 1968, it is required that Section 3 Summary Reports (Form HUD-60002) be submitted to HUD in accordance with the guidelines given. Please refer to HUD's website at www.hud.gov/section3 for additional information. The following parties execute this Grant Agreement on the dates set forth below as follows: UNITED STATES OF AMERICA Secretary of Housing and Urb.n Development By: i, 09/19/2018 Signature = I Dat; Stacia L. Johnson Typed Name of Signatory Director,Community Planning and Development Title GRANTEE By: CGYn u�f Signature and Date Tom Reid 10/5/2018 Typed Name of Signatory Mayor Title Funding Approval/Agreement U.S.Department of Housing and Urban Development Title I of the Housing and Community Office of Community Planning and Development Development Act(Public Law 930383) Community Development Block Grant Program OMB Approval No.2506-0193 exp 5/31/2018 HI-00515R of 20515R 1.Name of Grantee(as shown in item 5 of Standard Form 424) 3a.Grantee's 9-digit Tax ID Number 3b.Grantee's 9-digit DUNS Number City Of Pearland 746028909 020796397 — 2.Grantee's Complete Address(as shown in item 5 of Standard Form 424) 4.Date use of funds may begin (mm/dd/yyyy) 10/01/2018 3519 Liberty Dr 5a.Project/Grant No.1 6a.Amount Approved Pearland,TX 77581-5416 B-18-MC-48-0400 $390,001.00 5b.ProjecVGrant No.2 6b.Amount Approved Grant Agreement: This Grant Agreement between the Department of Housing and Urban Development(HUD)and the above named Grantee is made pursuant to the authority of Title 1 of the Housing and Community Development Act of 1974,as amended,(42 USC 5301 et seq.).The Grantee's submissions for Title I assistance,the HUD regulations at 24 CFR Part 570(as now in effect and as may be amended from time to time),and this Funding Approval,including any special conditions,constitute part of the Agreement. Subject to the provisions of this Grant Agreement,HUD will make the funding assistance specified here available to the Grantee upon execution of the Agreement by the parties. The funding assistance specified in the Funding Approval may be used to pay costs incurred after the date specified in item 4 above provided the activities to which such costs are related are carried out in compliance with all applicable requirements. Pre-agreement costs may not be paid with funding assistance specified here unless they are authorized in HUD regulations or approved by waiver and listed in the special conditions to the Funding Approval. The Grantee agrees to assume all of the responsibilities for environmental review,decision making,and actions,as specified and required in regulations issued by the Secretary pursuant to Section 104(g)of Title I and published in 24 CFR Part 58. The Grantee further acknowledges its responsibility for adherence to the Agreement by sub- recipient entities to which it makes funding assistance hereunder available. U.S.Department of Housing and Urban Development(By Name) Grantee Name Stacia L.Johnson City Of Pearland Title Title CPD Director Mayor Signature Date(mm/dd/yyyy) Signature Date(mm/dd/yyyy) 09/19/2018 X �J/� &teQ 10/05/2018 7.Category of Title I AssiT:nce for this Funding Action: 8.Special Conditions 9a.Date HUD Received Submission 10.check one (check one) (mm/dd/yyyy) 08/16/2018 ®a.Orig.Funding Entitlement,Sec 106(b) ❑None 9b.Date Grantee Notified Approval ®Attached (mm/dd/yyyy) ❑b.Amendment ( yyyy) 09/19/2018 Amendment Number 9c.Date of Start of Program Year (10/01/2018) 11.Amount of Community Development Block Grant FY(2018) FY(2017) FY( ) a.Funds Reserved for this Grantee $389,971.00 $ 30.00 b.Funds now being Approved c.Reservation to be Cancelled (11a minus ttb) 12a.Amount of Loan Guarantee Commitment now being Approved 12b.Name and complete Address of Public Agency N/A City Of Pearland Loan Guarantee Acceptance Provisions for Designated Agencies: 3519 Liberty Dr The public agency hereby accepts the Grant Agreement executed by the Pearland,TX 77581-5416 Department of Housing and urban Development on the above date with respect to the above grant number(s)as Grantee designated to receive loan 12c.Name of Authorized Official for Designated Public Agency guarantee assistance,and agrees to comply with the terms and conditions of the Agreement,applicable regulations,and other requirements of HUD — — now or hereafter in effect,pertaining to the assistance provided it. Title Signature HUD Accounting use Only Effective Date Batch TAC Program Y A Reg Area Document No. Project Number Category Amount (mmrdd/yyyy) F - - 1 5 3 - — — — - - — 17 6 - - - — Y Project Number Amount Y Project Number Amount Date Entered PAS(mm/dd/yyyy) Date Entered LOCCS(mm/dd/yyyy) Batch Number Transaction Code Entered By Verified By 24 CFR 570 form HUD-7082(5/15) 8. Special Conditions. (a) The period of performance for the funding assistance specified in the Funding Approval ("Funding Assistance") shall begin on the date specified in item 4 and shall end on September 1, 2025. The Grantee shall not incur any obligations to be paid with such assistance after September 1, 2025. (b) The Recipient shall attach a schedule of its indirect cost rate(s) in the format set forth below to the executed Agreement that is returned to HUD. The Recipient shall provide HUD with a revised schedule when any change is made to the rate(s) described in the schedule. The schedule and any revisions HUD receives from the Recipient shall be incorporated herein and made a part of this Agreement, provided that the rate(s)described comply with 2 CFR part 200, subpart E. Administering Direct Department/Agency Indirect cost rate Cost Base % % Instructions: The Recipient must identify each agency or department of the Recipient that will carry out activities under the grant,the indirect cost rate applicable to each department/agency (including if the de minimis rate is used per 2 CFR §200.414(f)), and the type of direct cost base to which the rate will be applied (for example,Modified Total Direct Costs (MTDC)). Do not include indirect cost rates for subrecipients. (c) In addition to the conditions contained on form HUD 7082, the grantee shall comply with requirements established by the Office of Management and Budget (OMB) concerning the Dun and Bradstreet Data Universal Numbering System(DUNS); the System for Award Management (SAM.gov.); the Federal Funding Accountability and Transparency Act as provided in 2 CFR part 25, Universal Identifier and General Contractor Registration; and 2 CFR part 170, Reporting Subaward and Executive Compensation Information. (d) The grantee wall ensure that no CDBG funds are used to support any Federal, State, or local projects that seek to use the power of eminent domain, unless eminent domain is employed only for a public use. For the purposes of this requirement, public use shall not be construed to include economic development that primarily benefits private entities. Any use of funds for mass transit, railroad, airport, seaport or 4 highway projects as well as utility projects which benefit or serve the general public (including energy-related, communication-related, water- related and wastewater-related infrastructure),other structures designated for use by the general public or which have other common- carrier or public-utility functions that serve the general public and are subject to regulation and oversight by the government, and projects for the removal of an immediate threat to public health and safety or brownfield as defined in the Small Business Liability Relief and Brownfields Revitalization Act (Public Law 107-118) shall be considered a public use for purposes of eminent domain. (e) The Grantee or unit of general local government that directly or indirectly receives CDBG funds may not sell, trade, or otherwise transfer all or any such portion of such funds to another such entity in exchange for any other funds, credits or non-Federal considerations,but must use such funds for activities eligible under title I of the Act. (f) E.O. 12372-Special Contract Condition -Notwithstanding any other provision of this agreement, no funds provided under this agreement may be obligated or expended for the planning or construction of water or sewer facilities until receipt of written notification from HUD of the release of funds on completion of the review procedures required under Executive Order(E.O.) 12372, Intergovernmental Review of Federal Programs, and HUD's implementing regulations at 24 CFR Part 52. The recipient shall also complete the review procedures required under E.O. 12372 and 24 CFR Part 52 and receive written notification from HUD of the release of funds before obligating or expending any funds provided under this agreement for any new or revised activity for the planning or construction of water or sewer facilities not previously reviewed under E.O. 12372 and implementing regulations. (g) CDBG funds may not be provided to a for-profit entity pursuant to section 105(a)(17)of the Act unless such activity or project has been evaluated and selected in accordance with Appendix A to 24 CFR 570- "Guidelines and Objectives for Evaluating Project Costs and Financial Requirements." (Source-P.L. 113-235, Consolidated and Further Continuing Appropriations Act, 2015,Division K,Title II, Community Development Fund).