SUBJECT/RECOMMENDATION:
Title
Approve the First Amendment to Agreement Number 106-2020 between Florida Housing Finance Corporation and the City of Clearwater for use of Coronavirus Relief Funds and authorize the appropriate officials to execute same. (consent)
Body
SUMMARY:
The State of Florida has been awarded funds pursuant to section 601(d) of the Social Security Act, as amended by section 5001 of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). Earlier this year, the Florida Housing Finance Corporation (FHFC) distributed a portion of Coronavirus Relief Funds (CRF) to local governments to assist individuals and families who have been financially impacted by the COVID-19 pandemic. The initial agreement between the City and FHFC allowed $375,576 in CRF funds to be used by the City for the following program purposes or activities:
i. Rental assistance payments (including back rent, deposits and utility payments);
ii. Mortgage payments and buydowns;
iii. Emergency repair of housing;
iv. Assistance to homeowners to pay insurance deductibles;
v. Housing re-entry assistance, such as security deposits, utility deposits, and temporary storage of household furnishings;
vi. Foreclosure or eviction prevention, including monthly rent and associated fees; and
vii. Homeownership counseling.
viii. 10% of funds expended may be used for administration.
The majority of funds awarded in FHFC’s first distribution to Clearwater has been used to assist Clearwater residents financially impacted by COVID-19 in paying past due rent, mortgage and utility bills. On September 15, the City was notified that it would receive a second disbursement of CRF in the amount of $258,970 bringing the total CRF allocation to the City to $634,546.
The City began receiving applications for its Rent, Mortgage and Utilities (RMU) Assistance Program on August 13, 2020. On August 24, more than 800 applications had been started or completed. Cautioning against accepting applications that would cumulatively exceed available funding, Housing Division staff paused the application portal. With additional CRF funding and additional CDBG-CV funding becoming available to the City to respond to COVID-19 impacts, the Housing Division will reopen the RMU Program on October 13. The program will remain open until funding is depleted.
The agreement requires that CRF funds not expended by December 30, 2020 must be returned to the Florida Housing Finance Corporation.
APPROPRIATION CODE AND AMOUNT:
N/A
USE OF RESERVE FUNDS:
N/A