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PA Bulletin, Doc. No. 21-474

NOTICES

DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT

Availability of the Draft 2021 Annual Action Plan; Public Hearing

[51 Pa.B. 1677]
[Saturday, March 27, 2021]

 The Department of Community and Economic Development (Department) announces the availability of the Commonwealth's Draft Federal Fiscal Year (FFY) 2021 Annual Action Plan (Plan). The Plan is submitted to the United States Department of Housing and Urban Development (HUD) as the annual application for Federal funds administered by the Commonwealth. The HUD funding programs covered by the Plan and administered by the Department are the Community Development Block Grant (CDBG), the HOME Investment Partnerships (HOME), the Emergency Solutions Grant (ESG) programs, Community Development Block Grant—Disaster Recovery (CDBG-DR) and Neighborhood Stabilization Program (NSP). Also covered by the Plan is the Housing Opportunities for Persons with AIDS (HOPWA) program which the Department of Health administers and the National Housing Trust Fund (HTF) which is administered by the Pennsylvania Housing Finance Agency (PHFA).

 This summary is designed to provide an opportunity for citizens, local governmental officials and interested organizations of the Commonwealth to comment about the Plan prior to its submission to HUD. Comments may be electronically submitted to the Department by e-mail to RA-DCEDcdbghomequestions@pa.gov. Written comments should be submitted to Megan L. Snyder, Center for Community and Housing Development, Department of Community and Economic Development, 400 North Street, 4th Floor, Commonwealth Keystone Building, Harrisburg, PA 17120-0225. Electronic and written comments must be received by 4 p.m. on Tuesday, April 27, 2021, to be included as testimony in the Plan. Note that the Plan has been updated to cover the Commonwealth's response to the novel coronavirus (COVID-19) crisis and to provide the flexibility to our grantees to response to their individual needs. The affected Federal Community Planning and Development programs can only address these needs within the perimeters of their guidelines. The Department has requested and received approval of waivers as HUD has allowed but most of the requirements of the programs remain in place.

Purpose

 The Plan takes the strategy developed in the Consolidated Plan of 2019—2023 and applies it to the administration of the CDBG, HOME, ESG, CDBG-DR, NSP and HOPWA programs for 2021. HTF allocations have not been announced as of the publication of this Plan and will be included in a substantial amendment to the Plan when announced. HUD must approve the Plan in order for the Commonwealth to receive funding under the identified HUD programs.

Content

 The 2021 Plan will include the Methods of Distribution for all Federal programs, as well as the goals and outcomes expected during the 2021 calendar year. In addition to the Department's web site https://dced.pa.gov/housing-and-development/consolidated-plan-annual-plans-reports/, the approved Plan will be able to be viewed on HUD's web site at https://www.hudexchange.info/consolidated-plan/con-plans-aaps-capers/.

Allocations and major changes in the method of distribution for 2021 by program

 CDBG—$42,051,147 (increase of $19,554 over 2020 CDBG amended award)

 Method of Distribution based on the requirements of the Community Development Block Grant Entitlement Program for Nonurban Counties and Certain Other Communities (35 P.S. §§ 1751—1765). The 2021 Plan does not include any changes to this distribution.

 Entitlement—85% of allocation distributed by the distribution outlined in the formula under the Community Development Block Grant Entitlement Program for Nonurban Counties and Certain Other Communities.

 Competitive—12% of allocation distributed competitively based on priorities outlined in the Plan with no maximum request or award.

 In the Plan, the Department continues to reserve the right to divert any recaptured funds and all uncommitted competitive funds to respond to State or Federally declared natural disasters or emergency declarations.

 CDBG-DR—$13,982,536.23 remain available from allocations through Pub.L. No. 112-55 ($9,748,270.92) and Pub.L. No. 113-2 ($4,234,265.31). Substantial amendment for use of remaining resources will be submitted to HUD separate from this Plan and citizens will be provided an opportunity to comment prior to that Plan submission.

 HOME—$20,143,142 (increase of $636,190 over the 2020 amended HOME award)

 1. Maximum funding availability varies by HOME eligible activity.

 a. Applicants seeking Existing Owner-Occupied Housing Rehabilitation and Homebuyer activities funding will be limited to a maximum of $500,000 as a town, borough or township. Cities and county applicants are limited to $750,000.

 b. Applicants seeking rental housing and homebuyer—new construction activities will be limited to a maximum funding request of the per unit subsidy limits for the Metropolitan Statistical Area for the proposed activity.

 2. All rental housing applicants must demonstrate matching contributions equal to 25% or greater for all HOME rental projects. Eligible match contributions may include cash contributions from non-Federal sources, value of donated property, forbearance of fees, cost of onsite infrastructure improvements directly required for the HOME-assisted project and other eligible sources more specifically detailed in 24 CFR 92.220 (relating to form of matching contribution).

 3. Rental housing developments funded by the Department competitive process will be limited to projects consisting of less than 10 total units. All other rental housing activities, for 10 units and above may be submitted to PHFA and following PHFA's application process.

 4. A CHDO can receive up to 50% of its annual operating budget or $50,000 whichever is greater as CHDO operating funds. (Note: The Department HOME Program has capped all CHDO operating assistance at $100,000 per CHDO Set-Aside project per funding round.)

 ESG—$5,772,5511 (decrease of $4,439 over the 2020 ESG award)

 Method of distribution includes continuation of revisions put in place in 2020 to address needs that arose as a result of the coronavirus pandemic as well as shelter eligibility changes included here. Those changes include:

 1. Rapid Rehousing—no minimum allocation percentage for rapid rehousing activity (formerly 40% minimum).

 2. Emergency Shelter—

 a. No more than 60% of the annual Federal allocation may be used for Emergency Shelter activities (including operations, essential services and street outreach).

 b. There is no longer a maximum of allocation for emergency shelter activities (operations, essential services and street outreach) (formerly 20% maximum of shelter).

 c. No cap of operational support for emergency shelter operation activities.

 3. Federal direct-entitlement grantees, those that receive a direct allocation of ESG funds from HUD annually, are eligible to apply for all eligible ESG uses, however direct-entitlement communities will not receive priority over non-entitlement applicants.

 4. Each applicant must demonstrate coordination of their efforts with the local Continuum of Care priorities.

 5. Nonprofit entities are eligible to apply directly. Regional activities must benefit service areas greater than one county.

 6. The Department will grant award amounts based on the evaluations until all grant funds are awarded.

 7. ESG funds may become available for reallocation as a result of poor grantee performance, voluntary returns, funds returned at the end of the contract period, repayment of ineligible expenses or HUD approved reallocation of expired funds. The Department will utilize its Reallocation Policy to allocate available funds.

 HOPWA—$3,163,713 (increase of $85,129 over the 2020 award)

 HTF—To Be Determined

 Allocations for 2021 National Housing Trust Fund have not been released as of the publication of this notice. An amendment to the 2021 Plan will be made once allocations have been released and any changes in the method of distribution will be discussed.

 Recovery Housing Program (RHP)—$1,068,182 (decrease of $131,818 over the 2020 award)

 Allocation has been made through the Support Act of 2019 to assist with temporary housing for persons affected by the Opioid crisis. Application for Recovery Housing Program will be submitted to HUD separate from this Plan and citizens will be provided an opportunity to comment prior to that Plan submission.

Public Review and Comment

 The 2021 Plan is available on the Internet or electronically for public comment from March 28, 2021, through April 27, 2021.

Written Comments

 Comments may be electronically submitted to the Department by e-mail to RA-DCEDcdbghomequestions@pa.gov. Written comments should be submitted to Megan L. Snyder, Center for Community and Housing Development, Department of Community and Economic Development, 400 North Street, 4th Floor, Commonwealth Keystone Building, Harrisburg, PA 17120-0225. Written comments must be received by 4 p.m. on Tuesday, April 27, 2021, to be included as testimony in the Plan.

Public Hearings

 The public hearing for the 2021 Plan will be conducted electronically, by means of the Internet/conference call on Tuesday, April 6, 2021. The public hearing by means of the Internet (Micosoft Teams) or with the call-in number provided at 10 a.m. and will last as long as there are comments to be received. This more widely available computer access/conference call will replace the onsite public hearing. The format will be more accessible than an in-person meeting because those who wish to make comment or discuss policy may participate directly from their electronic device, telephone or from a computer located at their public library.

 Due to the COVID 19 crisis and to Governor Tom Wolf's decree to ''Stay Home,'' there will be no in-person availability for this public hearing.

 Individuals or organizations may give testimony or comments by means of the Internet, telephone or hardcopy. Comments will be accepted on the content of the Commonwealth's Draft Plan for FFY 2020 including the various changes to the method of distribution and the citizen participation process previously outlined, and the process by which the public input is gathered. The Commonwealth encourages public participation in this process.

 There is no registration required and individuals may join the meeting directly using the following methods:

 Individuals can join the meeting by means of Microsoft Teams at https://tinyurl.com/w7abcyfs.

 Individuals can join the meeting by phone at +1 (267) 332-8737. The conference ID number is 672 150 250#.

 The hearing will be shortened if there is no one to testify or there is minimal response.

 Persons with a disability or limited English proficiency who wish to participate in the public hearing should contact Megan L. Snyder, Department of Community and Economic Development, RA-DCEDcdbghomequestions@pa.gov, (717) 720-7404 or TDD at (717) 346-0308 to discuss how the Department can accommodate their needs.

DENNIS M. DAVIN, 
Secretary

[Pa.B. Doc. No. 21-474. Filed for public inspection March 26, 2021, 9:00 a.m.]


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