HomeMy WebLinkAboutOrdinance 25490-04-2022 Ordinance No.25490-04-2022
AN ORDINANCE INCREASING ESTIMATED RECEIPTS AND APPROPRIATIONS IN THE
GRANTS OPERATING FEDERAL FUND, SUBJECT TO RECEIPT OF THE GRANT, IN
THE AMOUNT OF $10,000,000.00, FOR THE PURPOSE OF FUNDING ALLOWABLE
EXPENSES RELATED TO ASSISTING ELIGIBLE HOUSEHOLDS WITH RENTAL
ASSISTANCE AND HOUSING STABILITY SERVICES; 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 2021-2022 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 the grant, in the amount of$10,000,000.00,for the purpose
of funding allowable expenses related to assisting eligible households with rental assistance and housing
stability services.
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 orjudgment 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 25073-09-2021 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said prior ordinances and appropriations are hereby expressly repealed.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
J ette S.Goodall(Apr 27,202213& CDT)
Assistant City Attorney Jannette S. Goodall
City Secretary
ADOPTED AND EFFECTIVE:April 26, 2022
City of Fort Worth, Texas
Mayor and Council Communication
DATE: 04/26/22 M&C FILE NUMBER: M&C 22-0309
LOG NAME: 19TARRANT COUNTY EMERGENCY RENTAL ASSISTANCE REALLOCATION
SUBJECT
(ALL)Accept the Award of Grant Funds from the United States Department of the Treasury Provided through Section 501 of the Consolidated
Appropriations Act of 2021 in the Amount of$10,000,000.00 for Emergency Rental Assistance Received through Reallocation from Tarrant County
and Adopt Attached Appropriation Ordinance
RECOMMENDATION:
It is recommended that the City Council:
1. Accept the increased Emergency Rental Assistance Award from the United States Department of the Treasury through reallocation from
Tarrant County in the amount of$10,000,000.00 for a total award of$37,484,117.00;and
2. Adopt the attached ordinance increasing the estimated receipts and appropriations in the Grants Operating Federal Fund,subject to receipt
of the grant,in the amount of$10,000,000.00,for the purpose of funding allowable expenses related to assisting eligible households with
rental assistance and housing stability services.
DISCUSSION:
In December 2020,the Consolidated Appropriations Act of 2021 was approved by Congress and signed by the President. This statute was part
of the federal government's continued effort to help communities respond to economic and other impacts of the coronavirus pandemic. Section
501 of the Act included authorization of$25 billion for a first Emergency Rental Assistance(ERA#1)program to be administered by state and local
governments,including$27,484,117.00 for the City of Fort Worth (City). City Council approved acceptance of this first ERA award through Mayor
and Council Communication (M&C)21-0111 on February 16, 2021. In March of 2021, Congress and the President approved the American
Rescue Plan Act(ARPA),which extended the deadline for expenditure of ERA#1 funds until September 30,2022, and included further funds for
Emergency Rental Assistance(known as ERA#2). The purpose of the funds continues to be for financial assistance and housing stability services
for households with incomes under 80%of the Area Median that have incurred financial hardship and housing instability due to or during the
coronavirus pandemic.
Up to 10% of ERA#1 funds may be used for program administration, and 10% may be used for Housing Stabilization programs which assist
beneficiary households to maintain their housing,allowing approximately$22 million for direct client assistance. For ERA#2, up to 15% may be
used for grant administration, 10%for Housing Stabilization, and 25% may be reserved for affordable housing development if the City meets
ERA#2 obligation and expenditure goals. The City must obligate 50% of all ERA#2 funds to tenants by March 31, 2022, and must expend all
ERA#2 funds by September 30,2025. The City of Fort Worth's allocation under ERA#2 was$29,071,786.00,with$16,352,880.00 dedicated for
direct rental assistance after the administration, housing stabilization, and affordable housing development funds are reserved. For ERA#1,
assistance may be provided for up to 12 months;for ERA#2, assistance may be provided for up to 18 months(from a combination of ERA#1 and
ERA#2 funds). Income recertification is required every three months for both programs.
The Neighborhood Services Department has been administering the ERA programs through a common software platform for client applications
(Neighborly Software)and through partnerships with local nonprofit organizations, including Fort Worth Housing Solutions, Samaritan House,
Cornerstone Assistance Network,the Salvation Army,Center for Transforming Lives,and Housing Channel. Additional staff has been hired within
the Neighborhood Services Department to directly assist clients in completing applications and to ensure accuracy of client data aggregated for
U.S.Treasury Department reports. The Department proposes to continue partnerships with Fort Worth Housing Solutions, Samaritan House,and
Cornerstone Assistance Network for ERA#2,while amending contracts with the other agencies to ensure consistent customer service and data
cleanup during the closeout phase of their ERA#1 contracts.
The City of Fort Worth met the statutory initial performance goal for ERA#1 which required that 65%of funds be obligated to tenants by September
30,2021. In Texas, local jurisdictions were in effect competing with the Texas Department of Housing and Community Affairs'Texas Rent Relief
Program,which offered a very aggressive and successful online application program. Local jurisdictions which did not meet initial performance
goals for ERA#1 have been authorized by the U.S.Treasury Department to make voluntary reallocations to other jurisdictions within their state.
Tarrant County has agreed to support reallocation of$10,000,000.00 in ERA#1 funds to the City of Fort Worth,as most residents of Fort Worth are
also residents of Tarrant County. Analysis of current client application data indicates that the City's program can meet the Treasury Department's
performance goals even with this additional allocation.
As of March 2022,the City has over 4,500 applications which have been completed and are pending review, not including those clients who have
already been assisted or who may require additional assistance pending recertification. Approximately$31 million of the ERA#1 funds has been
disbursed on behalf of clients, leaving zero remaining funds in the City's original ERA#1 allocation once administrative and housing stabilization
allocations are considered. Based on the average assistance amount of$6,400.00 per household, and estimating a small percentage of
application withdrawals or denials,this means that approximately$37 million is still needed to assist current pending clients. A portion of the$37
million can be made up of the$18 million in ERA#2 funds available, and$10 million in reallocated ERA#1 funds from Tarrant County. The Fort
Worth Emergency Rental Assistance Program portal will be closed on March 31,2022.
Given that estimated demand for the program is presently more than available funds, Neighborhood Services staff are preparing plans to close the
City's Rental Assistance application portal. This process will include full communications with the public regarding timing, and other assistance
options for households that continue to be at risk of eviction or homelessness due to financial hardship.
In order to continue to process applications, NSD will be disbursing funds to partnering agencies awaiting on the approval of this M&C.The total
amount of$10,000,000.00 has already been deposited into the city's account and is currently available for use.
A Form 1295 is not required because:This contract will be with a governmental entity,state agency or public institution of higher education: United
States Department of Treasury
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
(and Financial Management Services)will be responsible for the collection and deposit of funds due to the City. Prior to an expenditure being
incurred,the Neighborhood Services Department has the responsibility to validate the availability of funds. This is an advance grant.
Submitted for City Manager's Office by: Fernando Costa 6122
Originating Business Unit Head: Victor Turner 8187
Additional Information Contact: Terrance Jones 7563
Sharon Burkley 5785
Expedited