STRATEGIC PRIORITY: Housing & Homelessness Solutions
AGENDA DATE: April 24, 2024
COUNCIL DISTRICT(S): N/A
DEPARTMENT: Office of Homeless Solutions
EXECUTIVE: Kimberly Bizor Tolbert
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SUBJECT
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A public hearing to receive public comments on the adoption of Substantial Amendment No. 1 to the FY 2023-24 Action Plan for HOME Investment Partnerships Program American Rescue Plan Act Grant Funds for Homelessness Assistance and Supportive Services from the U.S. Department of Housing and Urban Development, to reallocate funds from Tenant Based Rental Assistance to Supportive Services in an amount not to exceed $2,468,564.00 and to Administration and Planning in an amount not to exceed $31,436.00, for a total amount not to exceed $2,500,000.00, to continue supportive services and administration for the expanded R.E.A.L. Time Re-Housing Program - Financing: No cost consideration to the City (This item was held under advisement on January 24, 2024 and February 28, 2024)
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BACKGROUND
Following enactment of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) in March 2020 and the Coronavirus Response and Relief Supplemental Appropriations Act in December 2020, President Joe Biden signed into law the American Rescue Plan Act of 2021 (“ARPA”) on March 11, 2021. ARPA included $1.9 trillion to provide additional federal resources for economic stimulus and recovery from the COVID-19 pandemic. Included in ARPA is $5 billion in supplemental allocations under a new HOME Investment Partnerships Program American Rescue Plan Act Grant Funds for Homelessness Assistant and Supportive Services (“HOME ARPA”). By letter dated April 28, 2021, the U.S. Department of Housing and Urban Development (HUD) notified the City of Dallas of its HOME ARPA allocation in the amount of $21,376,123.00.
On August 25, 2021, the City Council authorized Interlocal Agreements with Dallas Housing Authority (“DHA”) in the amount of $31,421,839.00, and agreements with Metro Dallas Homeless Alliance, now Housing Forward (“Housing Forward”) in the amount of $17,491,778.00, for the Dallas R.E.A.L. Time Rapid Rehousing (“DRTRR”) Initiative to provide rapid rehousing assistance for individuals and families who are experiencing homelessness.
The DRTRR Initiative formed a regional partnership among the City of Dallas, Dallas County, DHA and other local housing authorities, and Housing Forward, with an initial goal to rapidly rehouse 2,700 individuals experiencing homelessness by the end of 2023. Funding for the DRTRR includes City of Dallas and Dallas County ARPA Coronavirus Local Fiscal Recovery Grant Funds, Emergency Solutions Grant CARES Act Grant Funds, HOME ARPA Grant Funds, and Emergency Housing Vouchers authorized under ARPA, as well as other private funding.
On October 27, 2021, the City Council authorized preliminary adoption of Substantial Amendment No. 2 to the FY 2021-22 Action Plan to accept HOME ARPA Grant Funds from HUD by Resolution No. 21-1751. On January 12, 2022, the City Council conducted a public hearing to receive comments on Substantial Amendment No. 2 to the FY 2021-22 Action Plan to HOME ARPA Grant Funds from HUD; and, at the end of the public hearing, authorized final adoption of Substantial Amendment No. 2 to the FY 2021-22 Action Plan by Resolution No. 22-0200.
In its annual State of Homelessness Address on April 13, 2023, Housing Forward laid out a plan to combine the DRTRR Initiative with other housing resources and re-brand it as the R.E.A.L. Time Rehousing (“RTR”) Program, with an expanded goal to rapidly rehouse a cumulative 6,000 people experiencing homelessness by the end of 2025. On June 13, 2023, the City’s Housing and Homelessness Committee was briefed on the expanded RTR Program.
Due to the extended timeline for the expanded RTR Program, case management and other supportive services must be provided to RTR participants over a longer period. Funds allocated for Tenant Based Rental Assistance under the original DRTRR Initiative were calculated conservatively, leaving unobligated funding that could be used later as needed. This conservative approach allowed for a surplus in the Tenant Based Rental Assistance category that now needs to be moved to the Supportive Services category, so that the RTR Program can serve more people with services and rental assistance. In addition, HUD data reporting requirements for HOME ARPA Grant Funds used for Tenant Based Rental Assistance are extensive, and additional administrative staff time is needed to comply with these requirements. For these reasons, it is necessary to reallocate HOME ARPA Grant Funds from Tenant Based Rental Assistance to Supportive Services and Administration and Planning. Other RTR funding sources remain available to pay rental assistance.
On December 13, 2023, the City Council authorized preliminary adoption of Substantial Amendment No. 1 to the FY 2023-24 Action Plan for the HOME ARPA Grant Funds, by Resolution No. 23-1657. At that time, Substantial Amendment No. 1 to the FY 2023-24 Action Plan proposed to reallocate HOME ARPA Grant Funds in the amount of $5,148,311.00 from Tenant Based Rental Assistance to Supportive Services and Administration and Planning.
Substantial Amendment No. 1 to the FY 2023-24 Action Plan for HOME ARPA Grant Funds was open for public review and comment from December 20, 2023, to January 23, 2024. A summary of the proposed changes was published in the Dallas Morning News on or about January 7, 2024, to ensure comprehensive public engagement.
Following preliminary adoption, Office of Homeless Solutions (“OHS”), DHA, and Housing Forward jointly conducted additional analysis, forecasting, and careful calibration of the current rental market, and have determined a more efficient approach would be to reallocate HOME ARPA Grant Funds in the amount of $2,500,000.00 at this time. If further changes are needed in the future, OHS would bring those forward at that time.
This reallocation will leverage existing funds to maximize the impact of the RTR Program, providing crucial support services and ensuring efficient program administration without imposing any financial burden on the City.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On August 25, 2021, the City Council authorized Interlocal Agreements with DHA and the City of Dallas for the DRTRR Initiative to provide rapid rehousing assistance for individuals and families who are experiencing homelessness by Resolution No. 21-1399.
On August 25, 2021, the City Council authorized agreements with Metro Dallas Homeless Alliance as a sole source for the DRTRR Initiative to provide rapid rehousing assistance for individuals and families who are experiencing homelessness by Resolution No. 21-1400.
On October 27, 2021, the City Council authorized preliminary adoption of Substantial Amendment No. 2 to the FY 2021-22 Action Plan to accept HOME ARPA Grant Funds from HUD by Resolution No. 21-1751.
On January 12, 2022, the City Council conducted a public hearing to receive comments on Substantial Amendment No. 2 to the FY 2021-22 Action Plan to HOME ARPA Grant Funds from HUD; and, at the end of the public hearing, authorized final adoption of Substantial Amendment No. 2 to the FY 2021-22 Action Plan by Resolution No. 22-0200.
The Housing and Homelessness Solutions Committee was briefed regarding an expanded RTR Program on June 13, 2023.
The Community Development Commission was briefed regarding Substantial Amendment No. 1 to the FY 2023-24 Action Plan to reallocate HOME ARPA Grant Funds on December 7, 2023.
The Citizen Homelessness Commission was briefed regarding Substantial Amendment No. 1 to the FY 2023-24 Action Plan to reallocate HOME ARPA Grant Funds on December 7, 2023.
On December 13, 2023, the City Council authorized preliminary adoption of Substantial Amendment No. 1 to the FY 2023-24 Action Plan for the HOME ARPA Grant Funds by Resolution No. 23-1657.
On January 4, 2024, the Community Development Commission approved Substantial Amendment No. 1 to the FY 2023-24 Action Plan for the HOME ARPA Grant Funds.
On January 24, 2024, this item was held under advisement, with the public hearing closed by Councilmember Jesse Moreno.
On February 28, 2024, this item was held under advisement, with the public hearing open by Councilmember Jesse Moreno.
FISCAL INFORMATION
No cost consideration to the City.