Title
Consider and take action on a resolution amending the Community Development Block Grant (CDBG) Annual Action Plan (CARES Act Amendment) to accept and allocate $264,907 in CDBG-CV funding to be used for emergency rent and utility assistance for residents economically affected by COVID-19 and for in-house administration of the funds (Executive Director of Development Services)
Background:
Council approval of the PY 2019 Annual Action Plan amendment (Cares Act Amendment) will authorize the City to submit the revised Action Plan to the Department of Housing and Urban Development (HUD) for approval.
Summary:
On April 2, 2020, the City received notice of a $264,907 allocation of Community Development Block Grant Coronavirus (CDBG-CV) funds from the Department of Housing and Urban Development (HUD). By law, CDBG funds must only be spent on activities that benefit low- and moderate-income persons, address slum or blight, or meet a particular urgent community development need. All citizens who receive assistance must reside in League City.
The Coronavirus Aid, Relief, and Economic Security Act (CARES) authorized the City to waive some requirements that are required for normal CDBG funding. The city plans to utilize two of the waivers with the CDBG-CV funds to allow for a 5-day public comment period and to exceed the 15% allocation cap for public service agencies.
For the funds to be received, the City is required to approve an Action Plan amendment outlining how the money will be spent. Staff is proposing the funds be spent assisting low- to moderate-income citizens of League City with rent and utility assistance. Interfaith Caring Ministries, currently a CDBG subrecipient, anticipates a drastic increase in requests for funding due to the COVID-19 pandemic.
No public comments have been received regarding the Annual Action Plan amendment at this time. Staff proposes the following allocations of the CDBG-CV funding:
Public Services
• Interfaith Caring Ministries Rent/Utility Assistance
Total: $238,417
Administration
• General Administration of the Program
Total: $26,490
Attachments:
1. Data Sheet
2. Proposed Resolution
3. Exhibit A - PY 2019 Annual Action Plan Amendment
CONTRACT ORIGINATION:
Department of Development Services
FUNDING
{ } Funds are available from Account #________
{ } Requires Budget Amendment to transfer from Account #______ to Account #______
{x} NOT APPLICABLE
STRATEGIC PLANNING
{ } Addresses Strategic Planning Critical Success Factor # ______ and Initiative # ______
{x} NOT APPLICABLE