Title
2015-2020 Consolidated Plan's 2019 Annual Action Plan CARES Act Amendment (Ordinance S-47330)
Description
Request City Council approval of a Substantial Amendment to the 2015-2020 Consolidated Plan's 2019-2020 Annual Action Plan to include a second Emergency Solutions Grant (ESG-CV2) and Community Development Block Grant (CDBG-CV2) allocations, and to amend the first round of Community Development Block Grant (CDBG-CV1) authorized by the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), Public Law 116-136, enacted March 27, 2020, for the specific purpose of preventing, preparing for, and responding to the Coronavirus (COVID-19) public health crisis. Further request authorization for the City Treasurer to accept and the City Controller to disburse all funds related to this item.
Report
Summary
The 2015-2020 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.
A previous substantial amendment to the 2019 Annual Action Plan was completed for the first round of the CARES Act ESG and CDBG funding in May of 2020 (ESG-CV1 and CDBG-CV1). This second substantial amendment is to allocate $19,212,248 of ESG funds (ESG-CV2) and $14,096,369 of CDBG funds (CDBG-CV2) provided to the City in the second round of funding authorized by the CARES Act, and to amend the first allocation of CDBG-CV1 to support the City's effort to prevent, prepare for, and respond to the COVID-19 pandemic.
The following summarizes the ESG-CV2 and CDBG-CV2 allocations and the proposed activities that will be funded to address the growing effects of the public health crisis:
ESG-CV2: $19,212,248
$19,212,248 will be used to prevent, prepare for, and respond to the COVID-19 pandemic, focusing on individuals and families who are experiencing homelessness or receiving homeless assistance, and to support homelessness prevention activities to mitigate the impacts of COVID-19.
The following eligible activities will be funded with this allocation:
- $2,973,199 will be used to expand the beds at Project Haven shelter.
- $2,303,165 will be used to expand Rapid Rehousing for women and families.
- $1,800,000 will be used to expand Rapid Rehousing for men.
- $600,000 will be used for operational costs at the new US Vets shelter.
Additionally, $11,535,884 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 homeless prevention activities to mitigate the impacts of COVID-19 as directed by City Council.
CDBG-CV2: $14,096,369
$11,277,095 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, receiving homeless assistance; and to support additional homeless assistance and homeless prevention activities to mitigate the impacts of COVID-19. Homeless support activities may include public services, public facility improvements, or strategic acquisition of properties in an effort to address community needs related to homelessness in response to the national pandemic.
$2,819,274 will be used for the purpose of program administration, planning and coordination as it relates to the CDBG-CV allocations.
Additionally, $298,445 of uncommitted funds from the first round of CDBG funding will be added to the $4 million of CDBG-CV1 funds allocated by City Council to fund homeless support activities.
The aforementioned allocations, as summarized in Attachment A, would allow for $27,111,423 of ESG-CV2, CDBG-CV1 and CDBG-CV2 funds to be available to fund homeless support activities to prevent, prepare for, and respond to the Coronavirus pandemic in one of the City's most vulnerable populations through the following:
- $3 million for Human Services Campus operations and/or facility improvements support.
- $15 million for RFP(s) to fund facility acquisition and/or improvement of up to four shelters.
- $9.1 million for RFP(s) to support homeless services providers.
Further City Council action will be required to enter into any new contracts, or to modify any existing contracts, with service providers for services funded under these eligible activities. If any additional federal funds are provided, a subsequent substantial amendment will be brought to Council for approval.
Procurement Information
Services may be procured, as needed, by utilizing procurement practices in accordance with Administrative Regulation 3.10 to implement and administer U.S. Department of Housing and Urban Development (HUD) funded programs intended to prevent, prepare for, and respond to the COVID-19 pandemic.
Financial Impact
These activities are funded by the HUD through the CARES Act. There is no impact to the General Fund.
Concurrence/Previous Council Action
On May 6, 2020, City Council authorized a Substantial Amendment to the 2015-2020 Consolidated Plan's 2019-2020 Annual Action Plan to include the first release of allocations and waivers authorized by the CARES Act.
On Jan. 21, 2021, the Land Use and Livability Subcommittee recommended City Council approval of broad allocations of ESG-CV2 allocations to prevent, prepare for, and respond to the COVID-19 pandemic, focusing on individuals and families who are experiencing homelessness or receiving homeless assistance, and to support homelessness prevention activities to mitigate the impacts of COVID-19.
Public Outreach
As part of the CARES Act, HUD approved an expedited public outreach process that allows the flexibility to institute more streamlined requirements to address immediate needs regarding the Coronavirus. The HUD 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 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's certifications, timely responses from local officials and to all citizen questions and issues, and public access to all questions and responses.
The comment period for this substantial amendment will be advertised for two weeks and open for five days. Additionally, a virtual public hearing will be hosted to receive comment from the public prior to finalization and submission to HUD.
Department
Responsible Department
This item is submitted by Deputy City Manager Inger Erickson and the Neighborhood Services and Human Services departments.