ACTION REQUESTED:
Title
Communication from the City Manager and Community Development Director with a Request to RECEIVE and FILE a REPORT BACK on CDBG COVID PROGRAMS
Body
BACKGROUND: On June 8, the City Council approved funding for a small business assistance program and household assistance program using CDBG and CDBG COVID funding. In addition, the City Council approved $300,000 in COVID funds for CDBG Public Service programs to prevent, prepare for, or respond to COVID-19.
CDBG Small Business Assistance Program:
The small business assistance program was funded with over $1 million in CDBG funds. The City received 67 applications that were reviewed for eligibility. Businesses were being contacted in the order of the lottery. Staff followed up to obtain all required documentation to meet the program guidelines. As of Friday, July 31, staff had completed the initial outreach to all businesses.
• Seven applications have been denied most due to not being in operation as of 4/1/2019.
• 30 businesses are in the process of submitting required documentation.
• 6 businesses have submitted all documentation and are awaiting project setup and agreement by the staff.
• 24 businesses are in the process of signing an agreement or have an agreement in place.
If all the remaining businesses are deemed eligible, the total expenses for this project will be approximately $518,362. This leaves a remaining balance of $481,837.
CDBG Household Assistance Program:
The household assistance program received 1,087 entries for the household assistance lottery. The household assistance program can provide up to 3 months of rent/mortgage and utility assistance with a maximum of $5,000. On June 8, $300,000 was approved which could help a minimum of 60 households. The demand for this program far exceeds the current funding level.
Staff is currently working to contact each of the first 60 households selected by the lottery for required documentation to determine income eligibility and COVID impact. As of July 31, 2020, staff had completed initial outreach to all households.
• 9 were denied with most due to living in public housing (not CDBG eligible) or not being within the City limits
• 30 households are working on required documentation to be submitted.
• 3 completed applications are awaiting staff review.
• 10 households who have not responded were mailed letters to get in touch with staff in order to complete the application process.
Once through the initial 60 households, staff will contact the next household on the waitlist until all slots are full.
CDBG (COVID-19) Public Service Program:
The CDBG Public Services Advisory Commission received nine eligible applications for COVID-19 CDBG Public Services programs. Commissioners reviewed and evaluated all nine applications and decided to fund all nine programs in some capacity. The funding amounts ranged from 62% to 79% of each program’s total requested funding, based on how they scored on the commissioner evaluations. The Commission chose to only use $200,000.00 of the available $300,000.00, informally recommending that the remaining $100,000.00 would be better used in the Household Assistance program. The allocation of the $200,000 was approved by City Council on July 28.
Options Going Forward:
1) Option 1 - The CDBG Advisory Commission recommended moving $100,000 from the COVID public service program to the household assistance program. This would allow staff to fund a minimum of 20 additional households if they needed the maximum grant amount of $5,000.
2) Option 2 - Release another round of applications for the small business assistance program after all the initial applications are processed for the remaining $481,837.
3) Option 3 - The $481,837 in remaining small business funding could be rolled into the household assistance program. This would allow staff to fund a minimum of 96 additional households if each needed the maximum grant amount of $5,000
4) Option 4 - With some limitations, some funding can be reallocated back to certain projects from which they were swept. Note that the maximum amount available for reallocation would be $581,837.
|
Project # |
Project Name |
Unspent Funds |
|
18I00 |
Public Improvements |
$50,000.00 |
|
18G00 |
2018 Competitive Grant (East Bluff) |
$250,000.00 |
|
19ADA |
Harrison Sidewalks |
$20,784.73 |
|
19P00 |
2019 Public Service |
$7,800.33 |
|
19G00 |
2019 Competitive Grant (South Side) |
$350,000.00 |
|
|
Total |
$678,585.06 |
5) Option 5 - Do nothing now and re-allocate the remaining funds later in the year as specific needs arise.
FINANCIAL IMPACT: CDBG funds would be reallocated at the direction of City Council.
NEIGHBORHOOD CONCERNS: Funding reallocations would follow the City’s approved Citizen Participation plan for HUD.
IMPACT IF APPROVED: Per Council Direction, another item may be brought forth for approval.
IMPACT IF DENIED: Per Council Direction, another item may be brought forth for approval.
ALTERNATIVES: None identified at this time.
EEO CERTIFICATION NUMBER: N/A
WHICH OF THE GOALS IDENTIFIED IN THE COUNCIL’S 2017 - 2032 STRATEGIC PLAN DOES THIS RECOMMENDATION ADVANCE?
1. Financially Sound City
2. Grow Peoria
WHICH CRITICAL SUCCESS FACTOR(S) FROM THE COMPREHENSIVE PLAN DOES THIS RECOMMENDATION IMPLEMENT?
1. Reinvest in neighborhoods.
2. Have an efficient government.
DEPARTMENT: Community Development