On July 25, 2017, the City Council approved and authorized City Staff to submit the 2017-2018 CDBG Annual Action Plan to HUD (Attachment 1). On September 12, 2017, HUD approved the plan and released the authorized funds.  The City was awarded $342,888 for Fiscal Year 2017-2018. Of that, the Action Plan allocated 15% of the total grant to ACO in the amount of $51,433. The funds are to be used for one-time rent and utility assistance for low to moderate income citizens.

While the City Council has been awarding funds to ACO through the CDBG process for twelve years, this is the first year that funds have exceeded $50,000, thus requiring the City Council to authorize the City Manager to execute the contract (Attachment 2). It should be noted that HUD caps public service funds at 15% of the total grant amount. Thus, the percentage awarded to ACO is consistent with previous years; however, the grant has increased to the point that the contract amount requires City Council authorization prior to execution.

This contract will be funded with CDBG funds and is included in the Fiscal Year 2017-2018 Budget.

Staff recommends the City Council authorize the City Manager to execute a contract with Allen Community Outreach to disburse Community Development Block Grant Funds in the amount of $51,433 for Fiscal Year 2017-2018.

I make a motion to authorize the City Manager to execute a contract with Allen Community Outreach to disburse Community Development Block Grant Funds in the amount of $51,433 for Fiscal Year 2017-2018.