Each year, the City must submit an Annual Action Plan (AAP) to the Department of Housing and Urban Development (HUD). This plan is required to receive Community Development Block Grant (CDBG) and HOME Investment Partnership (HOME) funds. The plan for Program Year 46 (Federal Fiscal Year 2020/city fiscal year 2021) covers the period from July 1, 2020 through June 30, 2021. The plan was submitted to HUD, and was approved on July 8, 2020.

The AAP identifies the goals and needs for the CDBG and HOME programs, including the objectives to be addressed, which were approved by Council at the November 13, 2019 meeting, and the allocations of the federal entitlement funds which were approved by Council at the March 25, 2020 meeting.

In light of the unprecedented impacts of COVID-19, HUD has instructed communities receiving the CDBG and HOME grants to amend their current Annual Action Plans to incorporate COVID-19 response funding and activities. HUD published suspensions, waivers and guidance that included the public comment period being reduced from 30 days to 5 days along with a virtual public hearing. Notice of the public comment period was published in the Quad City Times on April 15, 2021 and the required 5-day comment period will run from April 16-20, 2021.

This substantial amendment to the 2020 Annual Action Plan will enable the City to do the following:

Add the additional CDBG-CV funding (CV-3) which along with CV-1 totals $1,460,804 and will provide financial relief to assist small businesses in Davenport that have lost revenue due to COVID-19. The funding will provide forgivable loans to businesses negatively affected by COVID-19. Program will provide economic development assistance including loans, loan guarantees, grants, microenterprise assistance, and infrastructure development to businesses impacted by COVID-19 and in need of assistance to stabilize, create and/or retain jobs in Davenport.  Loans and grants provided could be made available for operating capital, acquisition, rehabilitation, demolition, slum blight prevention/removal. At least 51% of the jobs created or retained by the assisted small businesses must be made available to low/moderate income people.

Additionally CDBG-CV CARES Act funding will provide for a variety of public service activities serving low to moderate income clientele impacted negatively by COVID-19. Service programs for Davenport households that could include child care, before and after school programs, summer programs, senior programs, mental health services, and legal services for low to moderate income families. Homeless and Transitional Housing programs could provide short-term rental/mortgage payments, referrals, service coordination, one-time crisis assistance to prevent homelessness, meal services, and funding for the staff to implement these activities. A percentage of staff costs will be covered by the City’s CDBG-CV grants.

It is unknown at this time if additional CDBG funding will be made available to the City by HUD through the CARES Act but will be used for the same purpose of the initial allocations indicated above which is to prepare, prevent and respond to the spread of coronavirus (COVID-19) and facilitate assistance to eligible households and persons economically impacted by COVID-19. Additional proposed activities, if any, will be made available through future public notices which will provide the public 5-days to comment on the proposed activities. These notices will be printed in the local newspapers and posted online on the City of Davenport’s website at www.davenportiowa.com.

Passage of this Motion will approve the amended Year 46 Annual Action Plan, subject to completion of the required 5-day comment period, and authorizes the City Administrator or her designees to submit the amendment to HUD and sign necessary documents and agreements.