Title
2015-20 Consolidated Plan's 2019 Annual Action Plan CARES Act Amendment (Ordinance S-48784)
Description
Request City Council approval of an amendment to the 2015-20 Consolidated Plan's 2019-20 Annual Action Plan to amend the first round of Community Development Block Grant (CDBG-CV) 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 pandemic. 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 CDBG-CV 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 to implement multiple programs by allocating CDBG-CV funds towards support services and shelter for people experiencing homelessness, COVID relief grant awards to microenterprise businesses, assistance to local non-profit organizations, and funding Owner-Occupied Rehabilitation shelter-in-place services.
In May 2022, staff presented to the Community and Cultural Investment Subcommittee potential American Rescue Plan Act (ARPA) project proposals that could be eligible for funding under the CDBG and CDBG-CV grant programs. The Housing Department's ARPA proposed Public Housing Tablet and Data program was an item identified as CDBG-CV eligible, which would further the City's efforts to reducing the digital divide due to the impact of the COVID-19 pandemic. Funding this item with CDBG-CV funds would allow City Council to fund other proposed projects with the City's limited remaining ARPA funds.
Staff proposes to reallocate uncommitted CDBG-CV funds from the previously approved program categories of homeless support, assistance to local non-profit organizations and the Owner-Occupied Rehabilitation shelter-in-place programs, totaling $1.5 million in an effort to virtually connect Public Housing residents to critical services, remove technology barriers, and address the continued impact of COVID-19.
Homeless Support
Previous City Council action approved the reallocation of $1,692,315 in CDBG-CV funding to be used to fund unawarded CARES Act Emergency Solutions Grant (ESG-CV) shelter operations RFP proposals that did not move forward for award due to a lack of available ESG-CV funding. The final contract totals for these proposals is $418,993, allowing $1,273,322 in uncommitted funds in the homeless support category to be reallocated.
Assistance to Local Non-Profits
Previous City Council action approved the use of $1,901,555 in CDBG-CV funding to assist local non-profit organizations, serving low- and moderate-income Phoenix residents with services related to COVID-19. Of the approved amount, $115,113 of uncommitted funds in this category can be reallocated.
Owner Occupied Rehabilitation Shelter-in-Place
Previous City Council action approved the use of $800,000 in CDBG-CV funding to support social distancing and sheltering in place through Owner-Occupied Housing Rehabilitation services. Of the approved amount, $111,564 of uncommitted funds in this category can be reallocated.
The breakdown of uncommitted funds is as follows:
- $1,273,322 in uncommitted funds targeting homeless support activities;
- $115,113 in uncommitted funds targeting local non-profits; and
- $111,564 in uncommitted funds targeting owner occupied rehabilitation services to support sheltering in place.
Totals $1.5 million that can be reallocated to support public housing residents bridge the digital divide and address the continued impact of COVID-19.
Financial Impact
These programs are funded by HUD through the Coronavirus Aid, Relief, and Economic Security Act. There is no impact to the General Fund.
Concurrence/Previous Council Action
The Community and Cultural Investment Subcommittee recommended approval of this item by a 4-0 vote at the June 1, 2022, meeting.
On May 6, 2020, the 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 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 Dec. 1, 2021, the City Council authorized an Amendment to the 2015-20 Consolidated Plan's 2019-20 Annual Action Plan for the reallocation of available CDBG-CV funds authorized by the CARES Act.
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 hearing when: National and/or local health authorities recommend social distancing and limiting public gatherings for public health reasons; and virtual hearing 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 Managers Alan Stephenson and Gina Montes, and the Neighborhood Services and Housing departments.