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HomeMy WebLinkAboutOrdinance 24214-05-2020 Ordinance No.24214-05-2020 AN ORDINANCE INCREASING ESTIMATED RECEIPTS AND APPROPRIATIONS IN THE GRANTS OPERATING FEDERAL FUND, SUBJECT TO RECEIPT OF THE GRANT, IN THE AMOUNT OF $6,810,056.00, FOR THE PURPOSE OF FUNDING THE HUD CARES ACT CDBG-CV, ESG-CV AND HOPWA-CV PROJECTS; PROVIDING FOR A SEVERABILITY CLAUSE; MAKING THIS ORDINANCE CUMULATIVE OF PRIOR ORDINANCES; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH; AND PROVIDING AN EFFECTIVE DATE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS: SECTION 1. That in addition to those amounts allocated to the various City departments for Fiscal Year 2019-2020 in the Budget of the City Manager,there shall also be increased estimated receipts and appropriations in the Grants Operating Federal Fund, subject to the receipt of grants, in the amount of$6,810,056.00, for the purpose of funding the HUD Cares Act CDBG-CV, ESG-CV and HOPWA-CV projects. SECTION 2. That should any portion, section or part of a section of this ordinance be declared invalid, inoperative or void for any reason by a court of competent jurisdiction, such decision, opinion or judgment shall in no way impair the remaining portions, sections, or parts of sections of this ordinance, which said remaining provisions shall be and remain in full force and effect. SECTION 3. That this ordinance shall be cumulative of Ordinance 23835-09-2019 and all other ordinances and appropriations amending the same except in those instances where the provisions of this ordinance are in direct conflict with such other ordinances and appropriations, in which instance said conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed. SECTION 4. This ordinance shall take effect upon adoption. APPROVED AS TO FORM AND LEGALITY: CITY SECRETARY Jo Pale(Ma 2 -202016:33 CDT) Assistant City Attorney Mary J. Kayser ADOPTED AND EFFECTIVE: May 19, 2020 J.-;' U j�p,S AMENDMENT to CITY OF FORT WORTH CITIZEN PARTICIPATION PLAN for use of Grant funds from the U.S. Department of Housing and Urban Development for the Community Development Block Grant(CDBG), HOME Investment Partnerships Program (HOME), Emergency Solutions Grant(ESG), and Housing Opportunities for Persons with AIDS (HOPWA)Programs. 4. Substantial Amendments a. The City shall amend its approved Annual Action Plan and/or its Consolidated Plan whenever it makes one of the following decisions: 1. To make a change in its allocation priorities; 2 To make a change in the method of distribution of funds; 3. To carry out an activity, using funds from any program covered by the Consolidated Plan (including program income), not previously described in the Annual Action Plan; 4. For the CDBG program,to change the use of CDBG funds from one eligible activity to another; 5. To change the purpose,scope, location or beneficiaries of an activity; or 6. To make substantial changes in funding to an "activity" under the CDBG, HOME, ESG and HOPWA Programs; For the City of Fort Worth, a substantial change is defined as an increase in funding for a particular activity that represents an increase of 25% or more of the total original project budget even if the project is funded in multiple Action Plan years.For example, if a project budget equals $100,000 and the City proposes to add $9,000 to the project, no Substantial Amendment would be necessary,however if the City wanted to increase the budget by $25,000, a Substantial Amendment would be necessary;or 7.To establish priorities,allocate funds,or modify activities undertaken with the use of HUD grant funds provided through the Coronavirus Aid, Relief, and Economic Security(CARES)Act or subject to the CARES Act. b. Whenever a Substantial Amendment not related to the CARES Act is proposed,this amendment shall be available for public comment for a period of thirty (30) days before submission to City Council for approval. A Substantial Amendment to the Action Plan will not be implemented until the conclusion of the 30-day public comment period. A summary of all comments or views received in writing, or orally, during the comment period, will be attached to the Substantial Amendments upon submission to HUD. c. Whenever a Substantial Amendment is proposed regarding activities or funds received through the CARES Act or subject to the CARES Act,this amendment shall be made available for public comment for the abbreviated period of 5 days before submission to City Council for approval. CARES Act Substantial Amendments will also be posted on the City's website for the duration of the 5-d4y comment period. A CARES Act Substantial Amendment will not be implemented until the conclusion of the 5- day public comment period. A summary of all comments or views received in writing,or orally,during the comment period, will be attached to the CARES Act Substantial Amendment upon submission to HUD. All CARES Act Substantial Amendments will require no more than a five day comment period. *NOTE: Underlined sections above represent amended and added language to the full Citizen Participation Plan. The full Plan is available on the City's website at www.fortworthtexas. og v/neighborhoods Proposed Budget Allocations for HUD Grant CARES Act Funds-- May 2020 CDBG $4,360,291 Emergency Rental Assistance for Low-Moderate Income Households& Housing Channel Emergency Rental Assistance Program $350,000.00 Program Operations Costs Meals on Wheels of Tarrant County $200,000.00 Costs of home meals and food delivery for elderly/disabled Emergency Rental Assistance for Low-Moderate Income Households& Center for Transforming Lives Emergency Rental Assistance $350,000.00 Program Operations Costs Technical Assistance,training and coaching for microenterprises affected Center for Transforming Lives/Employmt Svcs $121,754.00 by COVID-19 Transportation,meals,or other services to support elderly persons' Elderly Services Programs:Tier 2 Competitive Allocation $300,000.00 response to COVID19 Job placement,training,removal of barriers to employment through direct assistance purchase of work clothing or tools,or provision of short-term Employment-Related Programs:Tier 2 Competitive $300,000.00 childcare Rental Assistance payments and applicable reasonable costs of Emergency Rental Assistance:Tier 2 Competitive $1,866,479.00 staff/operations to implement programs Staff and operational costs of planning for,administering,reporting on, and monitoring expenditure of CDBG-CV funds,over the two-year grant Administration $872,0S8.00 agreement period ESG-CV $2,202,959 Operational costs for emergency shelter,to cover increased costs due to Emergency Shelter/Presbyterian Night Shelter $230,000.00 COVID-19,including staff salaries,supplies,maintenance,and related items Operational costs for homeless day shelter,including staff salaries, Emergency Shelter/True Worth Place $120,000.00 supplies,maintenance and related items Emergency Shelter/Salvation Army $75,000.00 Staff and operational costs for emergency shelter operations Rental Assistance payments on behalf of homeless and formerly homeless Rapid ReHousing/Safe Haven $100,000.00 clients Rental Assistance payments and costs of staff/operations to implement the Rapid Rehousing/Salvation Army $325,000.00 program Rental Assistance payments and costs of staff/operations to implement the Rapid Rehousing/Day Resource Center $375,000.00 program Rental Assistance payments and costs of staff/operations to implement the Rapid Rehousing/Presbyterian Night Shelter $300,000.00 program Rental Assistance payments and costs of staff/operations to implement the Rapid ReHousing for Homeless:Tier 2 Competitive $457,664.00 program Staff and operational costs of planning for,administering,reporting on, and monitoring expenditure of ESG-CV funds,over the two-year grant General Administration $220,295.00 agreement period HOPWA-CV $246,806 ACTIVITY DESCRIPTION Samaritan Housing $77,333 Facility Operations,Supportive Services,and Administration Costs Short Term Rent,Mortgage,&Utility(STRMU)Assistance and Related AIDS Outreach Center $77,333 Costs Neighborhood Services/Community Action Partners Tenant Supportive Services and Rental Assistance on behalf of low income persons Based Rental Assistance Program $77,332 with HIV/AIDS Costs of planning for,administering,reporting on,and monitoring Grant Administration(6%) 1 $14,808 lexpenditure of HOPWA funds City of Fort Worth,Texas Mayor and Council Communication DATE: 05/19/20 M&C FILE NUMBER: M&C 20-0330 LOG NAME: 19NS CARES ACT HUDFUNDS SUBTSAMEND1 SUBJECT Approve a Substantial Amendment to the City's 2019-2020 Annual Action Plan for the Use of Federal Grant Funds in the Amount of $6,810,056.00 to be Awarded by the U.S. Department of Housing and Urban Development from the Coronavirus Aid, Relief, and Economic Security(CARES)Act Community Development Block Grant, Emergency Solutions Grant, and Housing Opportunities for Persons with AIDS Programs;Authorize Amendment to Citizen Participation Plan to Reduce Public Comment Period for CARES Act Related Activities from Thirty Days to Five Days;Authorize Execution of Related Contracts;Adopt Attached Appropriation Ordinance(ALL COUNCIL DISTRICTS) RECOMMENDATION: It is recommended that City Council: 1. Approve a Substantial Amendment to the City's 2019-2020 Annual Action Plan for submission to the U.S.Department of Housing and Urban Development for the use of federal grant funds in the Amount of$6,810,056.00 to be awarded through the CARES Act Community Development Block Grant,Emergency Solutions Grant,and Housing Opportunities for Persons with AIDS programs, including allocations of grant funds to particular programs and activities as detailed below; 2. Approve an amendment to the City's Citizen Participation Plan to reduce the public comment period for CARES Act related activities from thirty days to five days; 3. Authorize the City Manager or his designee to execute contracts for eighteen-month terms with the nonprofit agencies listed in Tables 1,2 and 3 below for CARES Act Community Development Block Grant(CDBG-CV),Emergency Solutions Grant(ESG-CV),and Housing Opportunities for Persons with AIDS(HOPWA-CV)grant funds,contingent upon receipt of funding and satisfactory completion of all regulatory requirements; 4. Authorize the City Manager or his designee to extend contracts for up to one year if an agency or department requests an extension and such extension is necessary for completion of the program,or to amend contracts if necessary to achieve program goals,provided any amendment is within the scope of the program and complies with City policies and all applicable laws and regulations governing the use of federal grant funds;and 5. Adopt the attached appropriation ordinance increasing the estimated receipts and appropriations to the Grants Operating Federal Fund in the amount of$6,810,056.00 consisting of$4,360,291.00 in CARES Act Community Development Block Grant(CDBG-CV)funds, $2,202,959.00 in CARES Act Emergency Solutions Grant(ESG-CV)funds,and$246,806.00 in CARES Act Housing Opportunities for Persons with AIDS(HOPWA-CV)funds,all subject to receipt of such funds. DISCUSSION: The Coronavirus Aid,Relief,and Economic Security(CARES)Act was signed into law on March 27,2020 to respond to the many impacts of the COVID-19 public health emergency.The CARES Act includes provisions to help local governments prevent, prepare for and respond to the coronavirus, including providing for additional allocations of formula grant funds under the Community Development Block Grant(CDBG), Emergency Solutions Grant(ESG),and Housing for Persons with AIDS(HOPWA)programs administrated by the U.S.Department of Housing and Urban Development(HUD).The City was notified on April 9,2020 of awards of$4,360,291.00 in CDBG-CV funds, $2,202,959.00 in ESG-CV funds,and$246,806.00 in HOPWA-CV funds.All of these funds must be used to prevent,prepare for,and respond to the coronavirus. In order to allow local governments to act quickly to use the funds,the CARES Act also provides for certain waivers of federal statutes and regulations governing these programs,including a waiver of the customary 30-day public comment period for Substantial Amendments to the Consolidated Plan and Action Plan and a waiver of the standard 15%limitation on public services activities for the CDBG program.The CARES Act also instructed HUD to make additional awards of further CDBG-CV and ESG-CV funds to state and local governments based on factors such as economic and housing market disruption resulting from coronavirus, risk of transmission of the illness, number of coronavirus cases,and rates of homelessness. It is anticipated that the second allocation of ESG-CV funds for local governments will be announced by June 30,2020,and the second allocation of CDBG-CV funds will be announced later this year. To receive the initial award of CARES Act funds from HUD,the City must revise its Citizen Participation Plan to allow for a five-day public comment period for CARES Act related activities,and must prepare and submit a Substantial Amendment to its 2019-20 Action Plan which tells how the CDBG-CV,ESG-CV,and HOPWA-CV funds will be used.The proposed Citizen Participation Plan Amendment is attached to this M&C. On April 29, 2020,the Community Development Council (CDC)as the City's advisory body for the use of CDBG, ESG and HOPWA funds, approved a recommendation that the City's Citizen Participation Plan be revised to authorize a five-day public comment period for Substantial Amendments related to the Coronavirus response. The CDC also approved a Substantial Amendment Action Plan for CARES Act grant funds based on the following principles: • Addressing needs which HUD grant funds are uniquely qualified to meet and that other funding sources cannot serve(housing). • Addressing the most urgent needs(food,shelter)and the needs of populations most sensitive to COVID-19(elderly). • Reliance on existing allocation processes and existing nonprofit partners to increase the speed and simplicity of service delivery and to reduce administrative challenges and compliance concerns. • Consistency with local priority needs and goals previously established in the City's 2018-2022 Consolidated Plan. Using these principles,three key activities were approved by the CDC for CARES Act funds: emergency rental assistance, services for the elderly, and employment-related services. Emergency rental assistance activities address both the Consolidated Plan goals for affordable housing and homeless services and may include homelessness prevention and rapid rehousing for persons already homeless. Services for the elderly address the Consolidated Plan goals for aging in place. Employment-related services address the Consolidated Plan goal for poverty reduction. The CDC also approved a two-tier process for allocation of these CARES Act funds. Tier One funds totaling$2,546,754.00 are recommended to be awarded directly to agencies for the activities listed in the Tables below so that services can begin as quickly as possible. Tier Two funds totaling$2,924,143.00($457,664.00 in ESG-CV and$2,466,479.00 in CDBG-CV)will be awarded for the three above-listed priority activities through a competitive Request for Proposal process that identifies additional service-delivery partners by the end of May,for CDC review and approval in early June,and subsequent City Council approval. A 5-day public comment period was held from May 4,2020 to May 10,2020. Notice of this public comment period was published in the Fort Worth Star-Telegram,posted on the City's website,and distributed through the City News and other ongoing communications activities of the City Community Engagement Office.Any comments received are maintained by the Neighborhood Services Department in accordance with federal regulations. A summary of funding recommendations approved by the CDC is provided below. A spreadsheet of funding recommendations is also attached. This Substantial Amendment Action Plan for use of CARES Act funds under the CDBG-CV, ESG-CV, and HOPWA-CV programs will be submitted to HUD following City Council approval. Indirect costs are not being charged to these grants,as the Neighborhood Services Department Indirect Cost rate was zero in the City's most recent Cost Allocation Plan. CARES ACT COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG-CV) It is recommended that$4,360,291.00 of CDBG-CV funds be allocated as follows: • Emergency Rental Assistance Programs: $1,866,479.00 ^ These funds will be awarded on a competitive basis to agencies that administer emergency rental assistance consistent with a program model that provides up to three months of rental assistance for households with incomes at or below 80%of Area Median Income(AMI)who are late on their rent or unable to pay next month's rent. Eligible clients will pay 30%of current income toward their rent,will provide proof of income for all household members,will provide proof of reduction and/or loss of income due to the COVID-19 crisis;will provide a copy of their current lease; and will obtain verification of landlord's acceptance of terms and conditions of City rental assistance. • Services for the Elderly: $300,000.00 v These funds will be awarded on a competitive basis to agencies that provide services to elderly persons to reduce their risk of COVID- 19,such as in-home meals or other services,transportation,health and wellness-related services,and the like. • Employment-related Services:$300,000.00 These funds will be awarded on a competitive basis to agencies that provide services addressing COVID-related unemployment,such as job placement,training,coaching,and/or direct assistance to support employment or remove barriers to employment,such as child care,certifications,work clothing or tools,and related items. • General Administration: $872,058.00 Costs of planning for,administering,reporting on,and monitoring all activities paid for with CDBG-CV funds. • Direct Awards to Public Services Agencies($1,021,754.00): Contracts are recommended for the following agencies and programs in the following amounts: TABLE 1: CDBG-CV AGENCIES AGENCY PROGRAM AMOUNT Housing Channel Emergency Rental Assistance $350,000.00 Center for Transforming Lives Emergency Rental Assistance $350,000.00 Meals on Wheels Home Delivery of Meals/Food $200,000.00 Center for Transforming Micro-Enterprise $121,754.00 Lives Support TOTAL CDBG-CV CONTRACTS $1,021,754.00 I I I I CARES ACT EMERGENCY SOLUTIONS GRANT(ESG-CV) It is recommended that$2,202,959.00 of ESG-CV funds be allocated as follows: • Rapid Rehousing Programs: $457,664.00 o These funds will be awarded on a competitive basis to agencies that provide rapid rehousing assistance and accompanying support services to homeless persons living in shelters or on the streets. • Administration: $220,295.00 o Costs of planning for,administering,reporting on,and monitoring all activities paid for with ESG-CV funds. • Direct Awards to Public Service Agencies: $1,525,000.00 Contracts are recommended for the following agencies and programs in the following amounts: TABLE 2: ESG-CV AGENCIES AGENCY PROGRAM AMOUNT Presbyterian Night Shelter of Tarrant Shelter Operations/Services $230,000.00 County True Worth Place Day Shelter $120,000.00 Operations/Services The Salvation Army,a Georgia Homelessness Prevention $75,000.00 Corporation SafeHaven of Tarrant County Rapid Re-Housing $100,000.00 Day Resource Center Rapid Re-Housing $375,000.00 Presbyterian Night Shelter of Tarrant Rapid Re-Housing $300,000.00 County The Salvation Army,a Georgia Rapid Re-Housing $325,000.00 Corporation TOTAL ESG-CV CONTRACTS $1,525,000,00 CARES ACT HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS(HOPWA-CV) It is recommended that$246,806.00 of HOPWA-CV funds be allocated as follows: • City's Neighborhood Services Department Community Action Partners(CAP)Program,Tenant Based Rental Assistance(TBRA) $77,332.00 • Grant Administration: $14,808.00 o Costs of planning for,administering,reporting on,and monitoring all activities paid for with HOPWA-CV funds. • Direct Awards to Public Service Agencies: $154,666.00 o Contracts are recommended for the following agencies and progams in the following amounts: TABLE 3: HOPWA-CV AGENCIES AGENCY PROGRAM AMOUNT Tarrant County Samaritan Supportive Services, Facility-Based $77,333.00 Housing,Inc. Housing Operations,Administration Short Term Rent Mortgage and Utility AIDS Outreach Center Assistance,Supportive Services, $77,333.00 Administration TOTAL HOPWA-CV CONTRACTS $154,666.00 All figures have been rounded to the nearest dollar for presentation purposes. These programs are available in ALL COUNCIL DISTRICTS. FISCAL INFORMATION/CERTIFICATION: The Director of Finance certifies that upon approval of the above recommendations and adoption of the attached appropriation ordinance,funds will be available in the current operating budget,as appropriated,in the Grants Operating Federal Fund.The Neighborhood Services Department will be responsible for the collection and deposit of funds due to the City. Prior expenditures being incurred the Neighborhood Services Department has the responsibility to validate the availability of funds prior to an expenditure being made.These are reimbursement grants. Submitted for City Manager's Office by: Fernando Costa 6122 Originating Business Unit Head: Victor Turner 8187 Additional Information Contact: Barbara Asbury 7331