AGENDA CAPTION:
Title
Consider approval of Resolution 2021-19R, awarding Community Development Block Grant- Coronavirus Response (CDBG-CV) round three funding of $567,825.00 to a designated subrecipient for the design and administration of a COVID-19 Emergency Housing and Business Relief Program; authorizing the City Manager, or his designee, to execute a funding agreement with the subrecipient in such amount and to act as the official representative of the City in matters related to the CDBG Program and Action Plan; and declaring an effective date.
Body
Meeting date: January 19, 2021
Department: Planning and Development Services
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Fiscal Note:
Prior Council Action:
• June 18, 2019, City Council approved Resolution 2019-121R the Program Year 2019-2020 Community Development Block Grant Entitlement Action Plan (“the 2019 CDBG Action Plan”)
o Allocation of $680,998 awarded to the City of San Marcos by the Department of Housing and Urban Development (HUD) for the Program Year beginning October 1, 2019 and ending September 30, 2020.
• March 3, 2020, City Council approved Resolution 2020-54R amending the 2019 CDBG Action Plan
o Reallocate $67,142.00 from the Unsafe Structures Program to the amount allocated for the Southside Community Center Rehab Program.
• June 16, 2020, City Council approved Resolution 2020-131R amending the 2019 CDBG Action Plan
o Add the Community Development Block Grant-Coronavirus (CDBGCV) allocation of $425,261 and approving projects for the use of $319,731 of those funds.
• August 4, 2020, City Council approved Resolution 2020-163R
o Award $105,530 to Hays County to increase or improve COVID-19 testing in the City of San Marcos.
• November 17, City Council held a public hearing to receive comments for or against Resolution 2020-256R, amending the 2019 CDBG Action Plan
o Add the awarded CDBG-CV Round Three allocation of $567,825 and approving projects for the use of these funds.
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Background Information:
On November 17, 2020, City Council approved the following as projects for the use of the CDBG-CV Round 3 funding:
1. COVID-19 Emergency Housing and Business Relief Program $454,260
2. Administration of the CDBG-CV Round Three Grant and Program - up to $113,565 by the Planning and Development Services Department and one or more contracted third parties.
The objective of the program was to lessen the financial impact of the COVID-19 pandemic by providing emergency payments to individuals, families, and businesses of up to three months’ rent, mortgage, and/or utilities, either to prevent eviction or to clear eviction-related debt that is negatively impacting the beneficiary’s ability to obtain housing or a commercial space.
A Notice of Available Funding for the Design and Administration of a COVID-19 Emergency Housing and Business Relief Program was publicized with an application period for non-profit agencies from November 29, 2020 through January 11, 2021. Two applications were received: one from Community Action Inc in conjunction with Blanco River Regional Recovery Team, and one from the Hays County Veteran Services Office in conjunction with HOME Center of Central Texas.
The applications were reviewed and scored for risk, readiness for implementation, and application completeness, among other things, by a staff committee. These evaluations are attached. In summary, the Community Action Inc application shows the depth of experience and readiness required for quick and thorough implementation within federal regulations of this source of emergency funding for individuals and families in the community. The Veteran Services/HOME application is a valuable and creative collaboration that will be able to serve a different specific need (existing homelessness) with future funding sources.
No application was received for the proposed business eviction prevention portion of the program. It is noteworthy, however, that helping a business owner remain in their home can have the side effect of allowing them to use their own funding to support maintaining their business. By helping individuals and families this funding can touch everyone who is impacted by possible or recent eviction.
Per HUD, City staff is able to use CDBG-CV administrative funding from any funding round to administer other rounds. Therefore, City staff proposes using CDBG-CV Round One administrative funding for the staff costs associated with presenting, contracting, and monitoring the Round Three program, in particular because in Round Three the subrecipient is being asked both to design and administer the program, taking on some tasks typically performed by City staff. Administrative and service delivery costs will be tracked by the subrecipient on time sheets, and funding not used for the cost of service delivery or administration will be awarded to beneficiaries of the program.
Per the wording incorporated into the 2019 CDBG Action Plan by prior City Council action, a minimum of $454,260 must be awarded to beneficiaries of the program.
Council Committee, Board/Commission Action:
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Alternatives:
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Recommendation:
Staff recommends awarding $567,825 to Community Action Inc for the design and administration of the COVID-19 Relief Program for individuals and families using CDBG-CV Round Three funding, with the stipulation that a minimum of $454,260 be awarded to beneficiaries of the program.