Title
2015-2020 Consolidated Plan's 2019 Annual Action Plan CARES Act Amendment (Ordinance S-46606)
Description
Request City Council approval of a Substantial Amendment to the 2015-2020 Consolidated Plan's 2019-2020 Annual Action Plan to include allocations and waivers authorized by the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), Public Law 116-136, enacted on March 27, 2020, for the specific purpose of preventing, preparing for, and responding to the coronavirus (COVID-19) public health crisis, and request approval to allocate prior year CDBG funds to support these efforts.
In order to expedite City Council action approved at the April 21, 2020 Policy Session, the Neighborhood Services Department (NSD) also seeks approval to procure goods and services and enter into any necessary and appropriate contracts and/or agreements with a local non-profit and/or businesses to implement the City's COVID-19 micro-enterprise program and take all necessary or appropriate actions to implement and administer the program in accordance with the grant terms.
Further request authorization for the City Treasurer to accept and the City Controller to disburse all funds related to this item.
Report
Summary
The 2015-20 Consolidated Plan's 2019 Annual Action Plan defines how the City's Community Development Block Grant (CDBG), HOME Investment Partnership (HOME), Emergency Solutions Grant (ESG), and Housing Opportunities for Persons with AIDS (HOPWA) funds will be used to address the priorities and goals outlined in the five-year Consolidated Plan.
The substantial amendment to the 2015-20 Consolidated Plan's 2019 Annual Action Plan includes the allocations and waivers authorized by the CARES Act to support the City's effort to prevent, prepare for, and respond to the COVID-19 national pandemic.
The following summarizes the proposed adjustments to the Action Plan that constitute a substantial amendment:
Add allocations authorized by the CARES Act, for the purposes of preventing, preparing for, and responding to the growing effects of the coronavirus (COVID-19) public health crisis and allocate prior year funds to support these efforts.
The following CARES Act allocations reflect the action approved by the City Council on April 21, 2020:
CDBG-CV: $9,820,000*
$4 million will be used to fund homeless support in an effort to prevent, prepare for, and respond to the coronavirus pandemic amongst individuals and families who are homeless or receiving homeless assistance; and to support additional homeless assistance and homelessness prevention activities to mitigate the impacts of COVID-19.
$2 million will be used to assist microenterprise businesses who have five or fewer employees, that have been impacted by the COVID-19 public health crisis, by providing funding for lost revenue, the provisions of goods or services, or to support business model needs in light of COVID-19.
$2 million will be used to assist local non-profit organizations with funding to provide goods and services related to COVID-19 or support a change in business models in light of COVID-19.
$1 million of CDBG-CV funds and up to $1 million of prior year CDBG funds, will be used to provide Owner Occupied Rehabilitation services to support low- and moderate-income residents shelter in place in response to the COVID-19 public health crisis.* Additionally, these funds may also be considered for the acquisition of a property to support shelter in place needs as a more long term response to the COVID-19 pandemic.
$820,880 will be used for the purposes of program administration, planning and coordination as it relates to the CDBG-CV allocation.
*An additional $1 million will also be added to support low- and moderate-income residents shelter in place from available prior CDBG funding.
ESG-CV: $4,975,762
$4,975,762 will be used to prevent, prepare for, and respond to the coronavirus pandemic among individuals and families who are homeless or receiving homeless assistance; and to support additional homeless assistance and homelessness prevention activities to mitigate the impacts of COVID-19.
HOPWA-CV: $440,505
$340,505 will be used to provide rental assistance to persons living with HIV/AIDS to address the needs of this population during the COVID-19 pandemic.
$100,000 will be used to provide eviction prevention and mortgage foreclosure prevention services to persons living with HIV/AIDS to address the needs of this population during the COVID-19 pandemic.
2. Waive the Public Services Cap for 2019 CDBG funds.
The 2019 CDBG allocation was capped at 15 percent. This cap has been lifted by the CARES Act.
3. Implement the HOME Investment Partnerships waiver that allows an increase the 10 percent administrative and planning cap to a 25 percent cap as authorized by the U.S. Department of Housing and Urban Development memo dated April 10, 2020.
Procurement Information
Services may be procured, as needed, by utilizing procurement in accordance with Administrative Regulation 3.10 to implement and administer U.S. Department of Housing and Urban Development funded programs intended to prevent, prepare for, and respond to the COVID-19 national pandemic.
Financial Impact
These programs are funded by the U.S. Department of Housing and Urban Development through the Coronavirus Aid, Relief, and Economic Security Act (CARES) Act. There is no impact to the General Fund.
Public Outreach
As part of the CARES Act, the U.S. Department of Housing and Urban Development (HUD) approved an expedited public outreach process to allow flexibility to institute more streamlined requirements to address immediate needs relative to the coronavirus. The HUD abbreviated process includes the following:
The reduction of the 30-day public comment period and the implementation of a public comment period of no less than five days in an effort to expedite the consolidated plan substantial amendment process and allow the City to respond as quickly as possible to the immediate needs in the community.
The elimination of the in-person public hearings and the implementation of virtual public hearings when 1) national and/or local health authorities recommend social distancing and limiting public gatherings for public health reasons; and 2) virtual hearings provide reasonable notification and access for citizens in accordance with Phoenix' certifications, timely responses from local officials to all citizen questions and issues, and public access to all questions and responses.
The comment period for this substantial amendment is open from May 4 through May 8, 2020 with the May 6, 2020 Formal City Council meeting serving as the public hearing for this item.
Department
Responsible Department
This item is submitted by Assistant City Manager Deanna Jonovich and Deputy City Manager Mario Paniagua, and the Neighborhood Services, Human Services and Housing departments.