SUBJECT/RECOMMENDATION:
Title
Approve the Substantial Amendment to the City of Clearwater’s 2016/2017 - 2019-2020 Consolidated Plan and 2019-2020 Annual Action Plan to reallocate unencumbered funding and to budget for additional funding provided by the United States Department of Housing and Urban Development (HUD) to address needs resulting from the COVID-19 Emergency. (APH)
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SUMMARY:
Under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), $492,592 of Community Development Block Grant Program funding (CDBG-CV) was directly allocated to the City of Clearwater for use within eligible programs to address community and housing impacts arising from the COVID-19 pandemic. HUD has also provided various regulation waivers and suspensions to provide for additional flexibility and expediency in utilizing the funding.
The proposed Substantial Amendment to the 2019-2020 Annual Action Plan (Amendment) provides for the expenditure of $492,592 in CDGB-CV, $130,000 of unencumbered CDBG funding from Program Year 2019-2020 and $300,000 in HOME Investment Partnership Program funding. The funds will be distributed through four categories:
Business assistance: The Economic Development and Housing Department (ED&H) will administer a program to provide grant funding and technical assistance to eligible businesses affected by the COVID-19 pandemic.
Residential assistance: ED&H will administer a program to distribute funds for rental and utility assistance as well as mortgage and utility assistance to residents whose incomes have been affected by the pandemic.
Public Services: For Program Years 2019-2020 and 2020-2021 and the CDBG-CV allocation, HUD has eliminated the requirement to spend no more than 15% of the respective allocation on Public Services. The proposed amendment budgets for expenditures in excess of the 15% cap for Public Services that mitigate or respond to impacts arising from the pandemic.
Program administration: HUD regulations provide for up to 20% of CDBG-CV to be used for costs associated with administering these programs. The city’s General fund is not impacted by the proposed amendment.
APPROPRIATION CODE AND AMOUNT:
A mid-year budget amendment will establish special program 181-G2010, CDBG-CV Fund, recognizing a budget increase of $492,592 in CDBG grant revenues from HUD, and a transfer of $131,000 in CDBG revenues from 181-G2004, Public Facilities.