Title
HOME-ARP and CDBG-CV1 and CDBG-CV3 (B)
Explanation
On March 11, 2021, President Biden signed the American Rescue Plan Act (ARPA) into law, which provides over $1.9 trillion in relief to address the continued impact of the COVID-19 pandemic on the economy, public health, State and local governments, individuals, and businesses. To address the need for homelessness assistance and supportive services, Congress appropriated $5 billion in ARPA funds to be administered through the U.S. Department of Housing and Urban Development (HUD) - HOME Investment Partnerships Program (HOME) to perform four (4) activities that must primarily benefit qualifying individuals and families who are homeless, at risk of homelessness, or in other vulnerable populations.
These activities include: (1) development and support of affordable rental housing, (2) tenant-based rental assistance (TBRA), (3) provision of supportive services; and (4) acquisition and development of non-congregate shelter units. HOME-ARP requires that funds be used to primarily benefit individuals and families in the following specified ‘qualifying’ populations: (1) homeless; (2) at risk of homelessness; (3) fleeing, or attempting to flee domestic violence, dating violence, sexual assault, stalking, or human trafficking; (4) part of other populations where providing supportive services or assistance would prevent a family’s homelessness or would serve those with the greatest risk of housing instability; or (5) Veterans and families that include a veteran family member that meet the criteria in one of (1)-(4) above.
HOME-ARP funds were allocated by formula to participating jurisdictions that qualified for HOME allocations in Fiscal Year 2021. On September 20, 2021, HUD obligated the HOME-ARP grants for every participating jurisdiction (PJ). The City of Gainesville received a total allocation of $1,968,639 HOME-ARP funding.
The Coronavirus Aid, Relief, and Economic Security Act (CARES Act), Public Law 116-136, was signed by President Trump on March 27, 2020, to respond to the growing effects of the historic public health crisis Coronavirus (COVID-19). The CARES Act made available $5 billion in Community Development Block Grant Coronavirus (CDBG-CV) funds. Of this amount, the Department immediately allocated $2 billion on March 27, 2020, the same day President Trump signed the Act, based on the fiscal year 2020 CDBG formula; this constituted the first round of CDBG-CV funds. Next, $1 billion was required by the Act to be allocated to States and insular areas within 45 days of enactment of the Act; HUD accomplished this on May 11, 2020, and this constituted the second round of CDBG-CV funds. Finally, the remaining $2 billion in CDBG-CV funds was required by the Act to be allocated to states and local governments at the discretion of the Secretary on a rolling basis; HUD accomplished this on September 11, 2020, and this constituted the third round of CDBG-CV funds. Additionally, up to $10 million was set aside for technical assistance.
The City of Gainesville has received the following CARES Act allocations: CDBG-CV1: $800,608 from HUD; CDBG-CV2: $552,098 from State of Florida; and CDBG-CV3: $1,001,999 from HUD. In May of 2020, the City of Gainesville launched the GNVCares About Neighbors Program utilizing CDBG-CV1 funds to provide financial assistance to assist neighbors whose households where negatively impacted by COVID-19. Individual households were eligible to receive $1,250 towards mortgage, rent and/or utility payments. In September 2021, in an effort to continue assisting neighbors, the Coronavirus Relief (CRF) Program was launched utilizing CDBG-CV2 funds. A total of $530,417 CDBG-CV1 funding was expended to assist 419 households; and $552,098 CDBG-CV2 funding was expended to assist 220 neighbors.
Fiscal Note
The City anticipates receiving funding allocations for each program as follows: HOME-ARP - $1,968,639 and CDBG-CV3 - $1,001,999. The remaining balance of CDBG-CV1 - $270,191, will be combined with the CDBG-CV3 allocation for a total of $1,272,190 CDBG-CV funding
Recommendation:
The City Commission receive staff update on CDBG-CV3, HOME-ARP and HUD requirements related to utilization of allocations.