The City of Sugar Land annually receives a funding allocation from the U.S. Department of Housing and Urban Development (HUD) for the implementation of the City’s Community Development Block Grant (CDBG) program. These funds can be utilized for multiple activities that benefit low- to moderate-income Sugar Land residents, including infrastructure/public facility improvements, housing rehabilitation projects, public services and program administration.

In accordance with CDBG program requirements, the City of Sugar Land must prepare and submit an Annual Action Plan each program year (PY) that details the distribution of the City’s CDBG funding allocation. During the 2018 program year (October 2018 through September 2019), the City of Sugar Land will receive $331,872 in CDBG funding, a $48,185 increase in funding from the current program year. The Annual Action Plan is based on priorities identified within the City’s five-year Consolidated Plan which spans PY 2014 through 2018. Conditions on the use of funds include a 15 percent cap on public services and a 20 percent cap on program administration. Within the CDBG program, there are no limitations on the amount of funds that can be allocated for projects, such as housing rehabilitation and infrastructure/public facility improvements.

On May 24, 2018, the Environmental and Neighborhood Services Department reviewed the proposed PY 2018 funding allocations with the Finance/Audit Committee, and on June 5, 2018 provided the City Council with an overview of the PY 2018 Annual Action Plan, which included a recommendation for the distribution of the City's CDBG funding allocation. The distribution of funding highlighted below includes the amounts reviewed with the City Council.

These allocations propose a funding level that maximizes the public service activities and continues to fund program administration, housing rehabilitation projects and infrastructure improvements during the upcoming program year.

Program Administration:

The City of Sugar Land annually contracts with a consultant for CDBG program administration services. This consultant is selected through the Request for Qualification (RFQ) process. In March 2018, the City released a CDBG administrative service RFQ for the 2018, 2019 and 2020 program years. The cost of these services are contracted and negotiated annually. If the City does not receive CDBG funds for these program years, a contract for services will not be issued. Through the RFQ process, the City received one submittal which was scored based on the following criteria:

• Background of the firm
• References
• Availability and dedication to the City of Sugar Land
• Thoroughness of response to requirements
• Qualifications of key personnel
• Verifiable relevant experience
• Understanding of the CDBG program and HUD requirements
• Transition Plan
• Approach and/or methodology to providing services

Rodriguez and Associates was selected as the most qualified firm. The key staff member working on this project has more than 20 years of experience with the implementation of HUD-funded programs. This firm has been working with the City on the CDBG program since 2015. Staff has been pleased with the services received and staff recommends contracting with the firm in PY 2018. A contract for these services will be brought before the City Council for review and approval prior to the onset of the 2018 program year.

Public Services and Housing Rehabilitation:

As part of the annual program year process, the Environmental and Neighborhood Services Department accepts applications from public service and housing agencies that serve low- to moderate-income Sugar Land residents. These applications are then scored by an Application Review Committee based upon the City Council approved scoring criteria and decision-making process for the allocation of CDBG funds. Upon scoring, the Environmental and Neighborhood Services Department drafted a funding recommendation for the City Council’s review and approval. This recommendation was presented to the City Council during the June 5, 2018 workshop and is included below:

Under the current CDBG funding, the allocation distribution maximizes public services funding with the 15 percent allowed by federal statute, totaling $49,780 in funding. In the funding recommendations, Fort Bend Seniors would receive a slightly higher funding allocation for the upcoming program year than they received in PY 2017. This allocation is equal to the amount that the agency requested and would allow Fort Bend Seniors to enhance the level of services provided to the community. 

Literacy Council of Fort Bend County is also proposed to receive a slightly higher funding allocation than they received in PY 2017. Based upon the agency’s funding request and application score, they would also receive an allocation equal to the amount of funding that they requested.

Hope for Three also applied for funding in PY 2018, and based on their application score, the Environmental and Neighborhood Services Department recommended that the City fund the agency during the upcoming program year. Program year 2018 would be the first year that the agency would be funded through the City’s CDBG program. Staff recommended the agency receive an allocation equal to 50% of the amount requested in their application.

The Environmental and Neighborhood Services Department recommends that 27 percent of the PY 2018 funds be allocated to the Fort Bend CORPS for housing rehabilitation services totaling $90,000 in funding.

Infrastructure/Public Facility Improvements:

In accordance with the City’s PY 2014 – 2018 Consolidated Plan, the Environmental and Neighborhood Services Department recommended the City utilize the PY 2018 infrastructure/public facility improvement funds for the construction of a restroom at Mayfield Park.

At the conclusion of the June 5, 2018 workshop, the City Council provided consensus on the proposed objectives and funding allocations for inclusion within the PY 2018 Annual Action Plan. The draft PY 2018 Annual Action Plan was available for public review and comment beginning June 18, 2018 through July 17, 2018. During the public comment period, the City also hosted a public hearing to provide Sugar Land residents an opportunity to comment on the use of CDBG funds and the proposed projects for the 2018 program year. The City did not receive any comments during the public comment period. If public comments are provided during the August 7, 2018 City Council meeting, the Environmental and Neighborhood Services Department will review and incorporate those comments into the plan accordingly. 

At this time, the Environmental and Neighborhood Services Department recommends the City Council approve the PY 2018 Annual Action Plan for submittal to HUD. Upon approval by the City Council, the plan will be submitted to HUD by August 15, 2018 in accordance with the CDBG program requirements. Once submitted, HUD will review the document and release PY 2018 funds upon approval.