STRATEGIC PRIORITY: Human and Social Needs
AGENDA DATE: June 23, 2021
COUNCIL DISTRICT(S): N/A
DEPARTMENT: Office of Community Care
EXECUTIVE: Kimberly Bizor Tolbert
______________________________________________________________________
SUBJECT
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Authorize (1) an amendment to the Program Statement for the Emergency Rental Assistance and Utility Program, funded by Coronavirus Response and Relief Funds, to amend the program requirements, previously approved by Resolution No. 21-0240 on January 27, 2021, as shown in Exhibit A; and (2) the City Manager to (a) apply for and receive and deposit funds in an amount not to exceed $50,225,677.40 in the American Recovery Plan Act Funds for the Emergency Rental Assistance Round 2 from the U.S. Department of the Treasury (“Treasury”) for the Emergency Rental Assistance Round 2 (CFDA No. 21.023), with 40% distributed within 60 days of enactment and subsequent payments once 75% has been obligated; (b) establish appropriations in an amount not to exceed $50,225,677.40 $20,090,270.96 in the ARPA Emergency Rental Assistance Round 2 Fund; (c) execute any documents necessary with the Treasury to accept and/or spend the funds; and (d) implement an Emergency Rental Assistance and Utility Assistance Program in accordance with Exhibit B and utilize up to 15 percent of the funds for administration - Not to exceed $50,225,677.40 - Financing: U.S. Department of the Treasury Emergency Rental Assistance Program Grant Funds
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BACKGROUND
The Novel Coronavirus Disease (“COVID-19”) pandemic and its resulting economic impacts have put thousands at risk of evictions and homelessness. Since Spring of 2020, the City has seen tremendous demand for rental assistance services, a demand which has continued, if not grown, as the pandemic continues. Though a combination of local and national moratoriums and other protections have helped some clients avoid eviction, these moratoriums have largely expired or are expiring and have had limited enforcement power with the Texas Supreme Court decision not to extend Emergency Order No. 34 to enforce the Centers for Disease Control moratorium.
The legislation provided $21.6 billion under the American Rescue Plan for Emergency Rental Assistance - including $2.5 billion targeted to the highest-need areas, where job loss and high market costs have made it especially difficult for low-income renters. The City was allocated $50,225,677.40 under this program.
The Treasury Department disbursed 40% of the funds within 60 days of enactment. The City received $20,090,270.96 on May 27, 2021.
Subsequent payments will be allocated once 75% of the previous allocation is obligated. Funds are available until September 30, 2025.
This item authorizes acceptance of additional funding made available by the Treasury for the purpose of administering rental and utility assistance programs through 2025 and amendments to the current rental assistance program to ensure alignment with regulatory requirements and updated guidance provided by the Treasury for the American Recovery Plan Act Emergency Rental Assistance 2 Program.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On April 22, 2020, City Council authorized the acceptance of the Coronavirus Aid, Relief and Economic Security Act (“CARES”) to aid the COVID-19 response throughout the city by Resolution No. 20-0644.
City Council was briefed on the CARES funds to facilitate assistance to eligible communities and households economically impacted by COVID-19 on June 17, 2020.
On June 24, 2020, City Council authorized an emergency Short-Term Rental and Utility Assistance Program due to COVID-19 to provide up to two months of rental assistance payments for low- and moderate-income persons at or below 80 percent area median income and execution of all documents and agreements necessary to implement the programs by Resolution No. 20-1033.
On January 27, 2021, City Council authorized the acceptance of rental assistance program funds and a new Emergency Rental Assistance Program to provide up to twelve months rental and utility assistance to owe income households impacted by the COVID-19 pandemic.
On March 11, 2021, the American Recovery Plan Act was signed into law, making additional funding available through the Treasury for an emergency rental assistance program.
City Council will be briefed by memorandum regarding this matter on June 18, 2021. <https://gcc02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fdallascityhall.com%2Fgovernment%2Fcitymanager%2FDocuments%2FFY%252020-21%2520Memos%2FUpcoming%2520Council%2520Agenda%2520Item%2520-%2520ERA%25201%2520and%25202%2520-%25206.23.21%2520-%2520FINAL%2520061821_1.pdf&data=04%7C01%7Ccouncilagenda%40dallascityhall.com%7Cd6c1bf3b588f4fc84d2f08d9329a2a2d%7C2935709ec10c4809a302852d369f8700%7C0%7C0%7C637596459969173197%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C1000&sdata=Va1zw2Sij%2B8sE7Kmu9vqb5610qYfwn%2BjvQubCDMU%2BDQ%3D&reserved=0>
FISCAL INFORMATION
|
Fund |
FY 2021 |
FY 2022 |
Future Years |
|
U.S. Department of the Treasury -Emergency Rental Assistance Grant Funds |
$10,000,000.00 |
$25,225,677.40 |
$15,000,000.00 |