STRATEGIC PRIORITY: Human and Social Needs
AGENDA DATE: February 24, 2021
COUNCIL DISTRICT(S): All
DEPARTMENT: Office of Community Care
EXECUTIVE: Kimberly Bizor Tolbert
______________________________________________________________________
SUBJECT
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Authorize (1) the Community Development Block Grant CV-COVID-19 Emergency Assistance Program (“Program”) to provide up to six months of rent, mortgage, and/or utility assistance, including internet service, for low-income persons at or below 80 percent of Area Median Income who are impacted by the Novel Coronavirus pandemic; and (2) execution of all documents and agreements necessary to implement the Program, including but not limited to agreements with landlords and tenants - Financing: No cost consideration to the City (see Fiscal Information)
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BACKGROUND
This action authorizes the Community Development Block Grant (“CDBG”) CV-COVID-19 Emergency Assistance Program (“Program”), as described in Exhibit A, to provide up to six months of rent, mortgage, and/or utility assistance, including internet service, for low-income persons at or below 80 percent of Area Median Income (“AMI”) who are impacted by the Novel Coronavirus (“COVID-19”) pandemic and execution of documents necessary to implement the Program.
The COVID-19 pandemic began almost one year ago in March 2020. As businesses, schools, and other activities were shut down or curtailed, residents have experienced job loss, furloughs, reduced hours, and other loss of income; quarantine, self-isolation, and illness, with increased health care costs; increased childcare costs; and other financial impacts. Many continue to feel those effects. The national moratorium on evictions is scheduled to expire on March 31, 2021. As well, additional federal aid for residents impacted by the COVID-19 pandemic is not expected to be enough to keep residents in their housing. For these reasons, in response to significant demand for assistance, City Council has made funds available through the City’s U.S. Department of Housing and Urban Development (“HUD”) grants to assist individuals and families impacted by the COVID-19 pandemic with their housing costs.
On November 11, 2020, City Council authorized final adoption of Substantial Amendment No. 1 to the FY 2020-21 Annual Action Plan to accept Coronavirus Aid, Relief, and Economic Security (“CARES”) Act CDBG funds, No. 3 from HUD, which included funding for an Emergency Assistance Program to provide rent, mortgage, and utility assistance, as well as funds for non-profit administration for subrecipients to administer this assistance in the community.
Further, on January 27, 2021, City Council authorized preliminary adoption of Reprogramming Budget No. 1 (Substantial Amendment No. 2) to the FY 2020-21 Annual Action Plan to use unspent prior year CDBG funds of $509,393.00 for the Emergency Assistance Program. A public hearing and final adoption are scheduled for February 24, 2021.
This action will authorize use of these funds for the Program, as described in Exhibit A, to provide up to six months of rent, mortgage, and/or utility assistance, including internet service, for low-income persons at or below 80 percent of AMI who are impacted by the COVID-19 pandemic.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On October 28, 2020, City Council authorized preliminary adoption of Substantial Amendment No. 1 to the FY 2020-21 Action Plan to accept CARES Act CDBG Funds, No. 3 from HUD; amend Resolution No. 20-0655, previously approved on April 22, 2020, with respect to adding missing HUD CARES Act grant numbers and CFDA numbers; amend and replace Schedules A through E to Resolution No. 20-0655, previously approved on April 22, 2020, to reallocate funds across departments and units as necessary in support of COVID-19 relief efforts; amend and replace Schedule A to Resolution No. 20-0994, previously approved on June 24, 2020, to reallocate funds in eligible categories to support COVID-19 relief efforts; and expand eligibility for Emergency Solutions Grants (ESG) homeless prevention assistance by Resolution No. 20-1674.
On November 11, 2020, City Council authorized final adoption of Substantial Amendment No. 1 to the FY 2020-21 Annual Action Plan, to: accept CARES Act CDBG Funds, No. 3 from HUD; amend Resolution No. 20-0655, previously approved on April 22, 2020, with respect to adding missing HUD CARES Act grant numbers and CFDA numbers; amend and replace Schedules A through E to Resolution No. 20-0655, previously approved on April 22, 2020, to reallocate funds across departments and units as necessary in support of COVID-19 relief efforts; amend and replace Schedule A to Resolution No. 20-0994, previously approved on June 24, 2020, to reallocate funds in eligible categories to support COVID-19 relief efforts; and expand eligibility for ESG homeless prevention by Resolution No. 20-1845.
On January 27, 2021, City Council authorized an extension through September 30, 2021 for CDBG funded projects which have not met the City’s twelve-month obligation or twenty-four-month expenditure requirement; preliminary adoption of Reprogramming Budget No. 1 (Substantial Amendment No. 2) to the FY 2020-21 Action Plan to use unspent prior year CDBG Funds for the Residential Development Acquisition Loan Program and for the Emergency Assistance Program, and use unspent Home Investment Partnerships Program (HOME) Funds for the Housing Development Loan Program; and an amendment to the City’s Citizen Participation Plan to increase the amount required to trigger HUD’s substantial amendment process by Resolution No. 21-0204.
The Ad Hoc Committee on COVID-19 Recovery and Assistance was briefed by memorandum regarding this matter on February 11, 2021.
On February 24, 2021, City Council is scheduled to authorize final adoption of Reprogramming Budget No. 1 (Substantial Amendment No. 2) to the FY 2020-21 Action Plan to use unspent prior year CDBG Funds for the Residential Development Acquisition Loan Program and for the Emergency Assistance Program, and use unspent Home Funds for the Housing Development Loan Program; and an amendment to the City’s Citizen Participation Plan to increase the amount required to trigger HUD’s substantial amendment process.
FISCAL INFORMATION
No cost consideration to the City.
The Program will spend funds from the 2020 CARES Act Relief CDBG #3 Fund authorized by City Council on November 11, 2020, and from CDBG Reprogramming Budget No. 1 (Substantial Amendment No. 2) to FY 2020-21 Annual Action Plan Fund pending authorization by City Council on February 24, 2021.
|
Fund |
FY 2021 |
FY 2022 |
Future Years |
|
2020 CARES Act Relief CDBG #3 Fund |
$ 556,030.00 |
$2,529,078.00 |
$0.00 |
|
CDBG Reprogramming Budget No. 1 (Substantial Amendment No. 2) to FY 2020-21 Annual Action Plan |
$ 509,393.00 |
$ 0.00 |
$0.00 |
|
Total |
$1,065,423.00 |
$2,529,078.00 |
$0.00 |