File #: 18-0217    Version: 1 Name: 70% CDBG Benefit Waiver
Type: Agenda Item Status: Approved
File created: 4/17/2018 In control: City Council
On agenda: 4/24/2018 Final action: 4/24/2018
Title: Consider and take action on a resolution requesting that the State of Texas seek a waiver to the requirement that 70% of the overall benefit of Housing and Urban Development Block Grant Disaster Recovery Funds be used to support low-to-moderate income persons and supporting Galveston County's efforts in seeking said waiver (Assistant City Manager)
Attachments: 1. Data Sheet, 2. Proposed Resolution
Title
Consider and take action on a resolution requesting that the State of Texas seek a waiver to the requirement that 70% of the overall benefit of Housing and Urban Development Block Grant Disaster Recovery Funds be used to support low-to-moderate income persons and supporting Galveston County's efforts in seeking said waiver (Assistant City Manager)

Background:
Approval of this resolution will request the use of Housing and Urban Development Block Grant Disaster Recovery Funds to support low-to-moderate income persons, and support Galveston County's efforts in seeking a waiver. Federal regulations require that not less than 70% of aggregate of Community Development Block Grant (CDBG) program funds be used to support activities benefitting low-to-moderate income persons. The City of League City ("City") is requesting the State of Texas pursue maximum flexibility in the use of Housing and Urban Development (HUD) Community Development Block Grant disaster recovery (CDBG-DR) funds by requesting a waiver from HUD or by state administrative action, if sufficient authority exists, to seek a reduction in the 70% overall benefit requirement to a 50% requirement.

It has been the City's experience with previous recovery efforts during Hurricanes Rita and Ike that restricting the majority of funding to activities that only benefit low-to moderate income persons results in disparities in housing recovery assistance and can prevent the implementation of critical infrastructure and mitigation projects that benefit entire communities. Natural disasters, and the associated impacts to the citizens of Texas, are not restricted to mostly low-to moderate-income areas since many households and communities across the State of Texas have undergone massive setbacks due to Hurricane Harvey regardless of income levels. Maximum flexibility in the use of CDBG-DR funds is essential to ensure a robust and lasting recovery and to help our communities better prepare for future storms....

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