Title
Amend Contract with Local Initiatives Support Coalition (Ordinance S-47498)
Description
Request to authorize the City Manager, or his designee, to amend Contract 153102-0 with the Local Initiatives Support Coalition to add $14,375 in Community Development Block Grant program funds for a contract total of $2,314,375. Further request authorization for the City Controller to disburse all funds associated with this agreement. The Community Development Block Grant Program is funded by the U.S. Department of Housing and Urban Development; no General Funds are required.
Report
Summary
The Phoenix RISE Microbusiness Grant Program was approved by City Council through Ordinance S-46606 as part of the 2015-2020 Consolidated Plan's 2019 Annual Action Plan CARES Act Amendment. The purpose of this grant program was 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 to respond to COVID-19, or the business model changes to support COVID-19.
This program awarded $2,000,000 in CARES Act Community Development Block Grant funds (CDBG-CV) through 276 grants to low- and moderate-income microenterprise business owners in amounts up to $10,000. Additionally, $300,000 in CDBG-CV funding was utilized for the purposes of Local Initiatives Support Coalition's program administration, planning and coordination services. Due to the overwhelming need of the microenterprise business community, the initial allocation was extinguished before the final three eligible applicants could be awarded.
The Neighborhood Services Department seeks authorization to use an additional $12,500 in CDBG funding to award the three remaining low- and moderate-income microenterprise business owner grant applications and $1,875 in CDBG funding for program administration costs. The total additional contract amount equates to $14,375.
Contract Term
The contract expires on May 31, 2021.
Financial Impact
The CDBG Program is funded by the U.S. Department of Housing and Urban Development; no General Funds are required.
Concurrence/Previous Council Action
This program was adopted by the City Council on May 6, 2020.
Department
Responsible Department
This item is submitted by Deputy City Manager Inger Erickson and the Neighborhood Services Department.