Bond committee presents report to Pearland City Council

Date:

Citizens Drainage Bond Advisory Committee presented an update to the Pearland City Council at their regular meeting July 11, 2022 at City Hall. Council by Committee Chair Seth Thompson prepared the update.

The Citizens Drainage Bond Program Advisory Committee was created by the City Council on February 14, 2022, (Resolution No. 2022-37) to evaluate the City’s drainage system and identify drainage improvement projects to be considered for a Bond Referendum.

The 19 members drainage bond Committee appointed by the City Council consists of the representatives from the residents, City Council, Planning and Zoning Commission, Pearland Economic Development Corporation, Independent School Districts, Alvin & Pearland, and Pearland Chamber of Commerce.

The Drainage Advisory Committee held its biweekly meeting from March 23, 2022 to June 1, 2022, at various city facilities.

Discussion and input regarding the City’s 16th Community Development Block Grant (CDBG) Program – FY 2023 Annual Action Plan, as part of its FY 2013-2027 CDBG 5-Year Consolidated Plan (HUD Program Years 2022 – 2026) was also part of the meeting.

Title I of the Housing & Urban Development (HUD) Act of 1974 constitutes the basis for delivering federal community development and housing funds to local communities, primarily to address one of the three HUD National Objectives, which include:  eligible assistance to low-moderate income residents; reducing slum and blight; and/or meeting local urgent needs (major catastrophe/disaster).

Every five years, the City must develop, submit to HUD for approval, and implement a Consolidated Plan that details the types of projects and activities that can address HUD National Objectives, impacting local conditions facing low-moderate income households. In addition, an Annual Action Plan is submitted to HUD for the purpose of establishing specific annual spending plans that meet the objectives of the 5-year Consolidated Plan.

Since 2006, the City has received this annual funding from the U.S. Department of Housing & Urban Development (HUD), administered each fiscal year as part of the Community Development Block Grant (CDBG) program. Cumulatively having delivered $6,066,020 to Pearland, the CDBG program utilizes a formula method of distribution to determine its allocation of CDBG funding to eligible communities, which considers a locality’s poverty rate, population, and housing conditions in determining the amount of the allocation each year.

As a result, the City has received anywhere from its lowest Annual Action Plan Allocation in $254,426 in 2008 to its most recent 2022 allocation of $462,666. The allocation can grow each year, which seems to take place incrementally as formulaic components change annually for the City (population, local income levels, available housing stock, affordability, etc.). HUD has recently provided the City with its allocation for FY 2023, which is $478,854, demonstrative of the upward trend in allocations amounts each year.

One of the most basic rules involving the use of CDBG funds is that 15 percent can be used for social/public service activities, 20 percent for program administration, and there are no caps on how much of an annual allocation can be used on infrastructure and/or public facility improvements. Others include compliance with 24 CFR 570 and all of its subchapters, subparts, and sections/subsections, and the restriction that funds must be spent to serve low-moderate income individuals/households. At least 70 percent  of all annual allocation amounts must go to serving low-moderate income individuals/households, and area-benefit projects must be located in areas that are comprised of 51% or more low-moderate income (census block groups, service areas, etc.).

No CDBG funds can be spent to serve individuals and/or households outside the Entitlement Jurisdiction, so these funds are restricted to the boundaries of the City of Pearland.

An important purpose of the 5-Year Consolidated Plan process is to gauge the program’s ability to address future unmet needs with allocated resources during that time. Based on the FY 2023 allocation from HUD, officials report the City should expect to receive approximately $2.1 million over the course of the five years included in the next Consolidated Plan (City of Pearland FY 2023 – 2027).

A public hearing is scheduled for the Council meeting on July 25, 2022 where more specific details will be provided and actual spending plans will be shared.

In other topics addressed during the meeting, Mayor Kevin Cole introduced new City Secretary Frances Aguilar who started her new job the day of the meeting on July 11, 2022. She comes to the City of Pearland from the City of Angleton.

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