Title
CARES Act Community Development Block Grant Reallocation (Ordinance S-48164)
Description
Request the City Council to approve the reallocation of $6 million of available Community Development Block Grant (CDBG) Coronavirus Aid, Relief, and Economic Security (CARES) Act funding, and approval to take all necessary actions and execute all documents and agreements required by the U.S. Department of Housing and Urban Development (HUD) as authorized by CARES Act, Public Law 116-136, enacted March 27, 2020, for the specific purpose of preventing, preparing for, and responding to the COVID-19 public health crisis, including amending the 2015-20 Consolidated Plan's 2019-20 Annual Action Plan as needed. Further request authorization to utilize a portion of the funds to enter into agreements with the Salvation Army and Central Arizona Shelter Services (CASS) in an aggregate amount not to exceed $1,692,315. Further request to authorize the City Treasurer to accept and the City Controller to disburse all funds related to this item.
Report
Summary
The City of Phoenix received two rounds of CARES Act CDBG funding to help Phoenix residents, businesses, and neighborhoods prevent, prepare for, and respond to the COVID-19 pandemic. Since May 2020, the City Council has authorized the Neighborhood Services Department (NSD) to implement multiple programs by allocating the CARES Act CDBG funds towards support services and shelters for people experiencing homelessness, COVID-19 relief grant awards to microenterprise businesses, assistance to local non-profit organizations, and funding Owner Occupied Rehabilitation shelter-in-place services.
In May 2021, NSD posted a $14 million Request-for-Proposals (RFP) for Shelter Acquisition and Facility Improvements resulting in two awards for a total of $8 million, leaving $6 million available to allocate towards new programs to continue to assist our community to further prevent the spread and respond to the COVID-19 pandemic.
Staff proposes to allocate the available CARES Act CDBG funds into the following activities to help the community further prevent the spread and respond to the COVID-19 pandemic.
Open Application RFP for Shelter Acquisition Projects
$2 million will be used to fund real property acquisitions of emergency or transitional shelter facilities to provide expanded shelter beds for individuals and families experiencing homelessness in the City of Phoenix to prevent, prepare for, and respond to the COVID-19 pandemic. An open application RFP will provide the applicants adequate time to identify a project site and be prepared for acquisition prior to application.
Open Application RFP for COVID-19 Clean Public Facility Improvements and Upgrades
$2,307,685 will be used to fund improvements to heating, ventilation, air conditioning (HVAC) systems, antimicrobial surfaces, and touchless fixtures in public facilities to reduce airborne transmission risks to prevent, prepare for, and respond to the COVID-19 pandemic, focusing on individuals and families with low- and moderate incomes in the City of Phoenix. The facility must be publicly owned or owned by a nonprofit and open to the general public. Facilities may include, but are not limited to public schools, libraries, recreation centers, nursing homes and group homes for persons with a disability.
Further City Council action will be required to enter into any new agreements, or to modify any existing contracts, with applicants selected for funding through the open application process.
Funding for ESG-CV Shelter Operations Proposals
In May of 2021, the Human Services Department (HSD) posted an RFP for Emergency Solutions Grant (ESG) CARES Act (ESG-CV) funding. Thirteen of the proposals received were recommended for award, but there was sufficient funding available for only 10 of those recommended proposals. $1,692,315 of available CDBG-CV funds will be used to fund the three unawarded ESG-CV proposals in an effort to prevent, prepare for, and respond to the COVID-19 pandemic amongst individuals and families who are homeless or receiving homeless assistance. The three recommended but un-awarded are:
- The Salvation Army in the amount of $1,184,767 for Emergency Shelter;
- The Salvation Army in the amount of $307,548 for Street Outreach; and
- CASS in the amount of $200,000 for Rapid Re-housing.
Procurement Information
Services may be procured, as needed, by utilizing procurement in accordance with Administrative Regulation 3.10 to implement and administer HUD funded programs intended to prevent, prepare for, and respond to the COVID-19 pandemic. Proposals will be accepted until all available funds have been awarded.
Contract Term
The term for the Salvation Army and CASS contracts will begin on or about Feb. 1, 2022, and end on or about May 1, 2023. The term for all other contracts will be determined at the time of award.
Financial Impact
These programs are funded by 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 2015-20 Consolidated Plan's 2019-20 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.
On Feb. 17, 2021, the City Council authorized a Substantial Amendment to the 2015-20 Consolidated Plan's 2019-20 Annual Action Plan to include the second release of allocations and waivers authorized by the CARES Act.
On Nov. 3, 2021, the Community and Cultural Investment Subcommittee recommended approval of this item by a 4 to 0 vote.
Public Outreach
As part of the CARES Act, HUD approved an expedited public outreach process to allow flexibility to institute more streamlined requirements to address immediate needs relative to COVID-19. The HUD abbreviated process includes the following:
- The reduction of a 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; and
- The elimination of the in-person public hearings and the implementation of virtual public hearings when: National and/or local health authorities recommend social distancing and limiting public gatherings for public health reasons; and 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.
Department
Responsible Department
This item is submitted by Deputy City Manager Gina Montes and the Human Services and Neighborhood Services departments.