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 that details the distribution of the City’s CDBG funding allocation. Due to the delayed approval of the Federal Budget, the Program Year (PY) 2017 (October 2017 through September 2018) funding allocations were not released until mid-June. With this delay, HUD provided direction to grantees that the PY 2016 funding allocation should be utilized for planning purposes. Subsequently, the proposed funding allocations reviewed with the City Council during the June 6, 2017 workshop reflected the PY 2016 allocation of $267,181 in CDBG funding. During that meeting, staff indicated that once the PY 2017 funding information was released, the City’s proposed allocations would be modified to reflect the percentage of change in funding from PY 2016 for each category. The PY 2017 allocation of $283,687 reflected an approximately six percent increase in funding, and as indicated, the allocations were subsequently increased. 

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 improvements.

On June 6, 2017, the Environmental & Neighborhood Services Department provided the City Council with an overview of the PY 2017 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 and the additional six percent increase in funding for each CDBG activity:

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 2015, the City released a CDBG administrative service RFQ for the 2015, 2016 and 2017 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. Collectively, their key staff members working on this project have more than 35 years of experience with the implementation of HUD-funded programs. Staff has been pleased with the services received.

Since the 2017 CDBG program year does not begin until October 2017, a contract for administrative services will not be authorized by the City Council until that time.

Public Services and Housing Rehabilitation:

As part of the annual program year process, the Environmental & 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 & 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 6, 2017 workshop and is included below with the six percent funding increase:

Under the current CDBG funding, the allocation distribution maximizes public services funding with the 15 percent allowed by statute, totaling $41,340 in funding. Child Advocates of Fort Bend requested a smaller amount of funding than in previous years due to their focus on the Court Appointed Special Advocates (CASA) program and a reduced number of Sugar Land clients estimated to be served. Based upon their smaller request and agency score, the Environmental & Neighborhood Services Department recommended funding the full amount of their request. While the PY 2017 funding increased, the funding to Child Advocates of Fort Bend was not increased because it would have exceeded their funding request.

In the funding recommendations, Fort Bend Seniors would receive a higher funding allocation for the upcoming program year than they received in PY 2016. This allocation is approximately 98 percent of 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 will also receive a higher funding allocation than they received in PY 2016. Based upon the agency’s funding request and application score, they would receive approximately 94 percent of the funding requested.

The American Red Cross applied for funding in PY 2017; however, based on their application score, the Environmental & Neighborhood Services Department did not recommend that the City fund the agency during the upcoming program year.

The Environmental & Neighborhood Services Department recommended that 28 percent of the PY 2017 funds be allocated to the Fort Bend CORPS for housing rehabilitation services totaling $78,440 in funding.

Infrastructure/Public Facility Improvements:

In accordance with the City’s PY 2014 – 2018 Consolidated Plan, the Environmental & Neighborhood Services Department recommended the City utilize the PY 2017 infrastructure improvement funds for the construction of improvements in Covington Woods. This project would utilize CDBG funds to address deficiencies and needed pavement repairs at a cul-de-sac on Barrowgate Drive.

Five-Year Consolidated Plan

In addition to Annual Action Plan preparations, the Environmental & Neighborhood Services Department also reviews the City’s Five-Year Consolidated Plan each program year to determine if any modifications need to be made due to changing community needs. With the upcoming annexation of New Territory and Greatwood, the City’s CDBG Target Areas (defined as those census tracts where 25.39 percent or more of the population meet the CDBG low- to moderate-income guidelines) will need to be modified. As such, we need to update the Consolidated Plan to reflect the annexation areas and additional Target Areas. The updated CDBG Target Area Map was also reviewed with the City Council during the June 6, 2017 workshop.

At the conclusion of the workshop, the City Council provided their consensus on the proposed objectives and funding allocations for inclusion within the PY 2017 Annual Action Plan, as well as the proposed modifications to the Five-Year Consolidated Plan. The draft PY 2017 Annual Action Plan and Consolidated Plan Amendment were available for public review and comment beginning June 19, 2017 through July 18, 2017. 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 2017 program year. The City did not receive any comments during the public comment period. If public comments are provided during the August 1, 2017 City Council meeting, the Environmental & Neighborhood Services Department will review and incorporate those comments into the plan accordingly. 

At this time, the Environmental & Neighborhood Services Department recommends that the City Council approve the PY 2017 Annual Action Plan and Five-Year Consolidated Plan Amendment for submittal to HUD. Upon approval by the City Council, the plans will be submitted to HUD by August 15, 2017 in accordance with the CDBG program requirements. Once submitted, HUD will review the documents and release PY 2017 funds upon approval.