HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 06/15/2021 - FIRST READING OF ORDINANCE NO. 079, 2021, MAKING S Agenda Item 4
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AGENDA ITEM SUMMARY June 15, 2021
City Council
STAFF
Blaine Dunn, Accounting Director
SeonAh Kendall, Recovery Manager/Sr. Economic Health Manager
Travis Storin, Chief Finance Officer
Ryan Malarky, Legal
SUBJECT
First Reading of Ordinance No. 079, 2021, Making Supplemental Appropriations of a Portion of the City's
American Rescue Plan Act Funding for Local Fiscal Recovery Related to Response to and Recovery From the
COVID-19 Pandemic.
EXECUTIVE SUMMARY
The purpose of this item is to appropriate $4,217,846 (equivalent to fifteen percent) of the funds the City will
receive from the American Rescue Plan Act’s Coronavirus State and Local Fiscal Recovery Fund (“ARPA”).
The appropriated amount will be used to address immediate and short-term needs in response to the COVID-
19 public health emergency and its negative impact to our community’s health, social wellbeing and economy.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
BACKGROUND / DISCUSSION
On March 11, 2021, President Joe Biden signed into law the American Rescue Plan Act of 2021 to support the
U.S. recovery from the economic and health effects of the COVID -19 pandemic. ARPA builds upon many of
the measures in the CARES Act of March 2020 and the Consolidated Appropriations Act, 2021.
On May 10, 2021, the U.S. Department of the Treasury (“Treasury”) announced the launch of the Coronavirus
State and Local Fiscal Recovery Fund (“ARPA”), established by the American Rescue Plan Act of 2021, to
provide emergency funding for state, local, territorial, and Tribal governments. On May 17, 2021, Treasury
issued an interim final rule (“Rule”) establishing a framework for determining the types of programs and
services that are eligible for funding under AR PA along with examples of uses that local governments may
consider. It should be noted that Treasury is seeking public comment on all aspects of the Rule until July 16,
2021. Staff will monitor for any changes to the Rule as well as any additional regulat ions or official guidance.
ARPA funds provide more flexibility to meet local needs than the CARES Act Coronavirus Relief Fund
(“CVRF”) money the City received in 2020. The Rule’s allowable use of ARPA funds include (Attachment 1):
• Support public health expenditures, by funding COVID-19 mitigation efforts, medical expenses,
behavioral healthcare, and certain public health and safety staff;
• Address negative economic impacts caused by the public health emergency, including economic
harms to workers, households, small businesses, impacted industries, and the public sector;
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• Replace lost public sector revenue, using this funding to provide government services to the extent of
the reduction in revenue experienced due to the pandemic;
• Provide premium pay for essential workers, by offering additional support to those who have borne and
will bear the greatest health risks because of their service in critical infrastructure sectors; and
• Invest in water, sewer, and broadband infrastructure, by making necessary investments to improve
access to clean drinking water, support vital wastewater and stormwater infrastructure, and to expand
access to broadband internet.
The City will receive an allocation of ARPA funds totaling $28,118,971. The City received fif ty percent of that
allocation ($14,059,486) on May 19, 2021. Staff anticipates the remaining fifty percent will be received in May
2022.
On May 25, 2021 at a Council work session, staff discussed with Council the timeline of the City’s recovery
plan and ARPA. At the work session, staff recommended that fifteen percent of the total allocated amount of
ARPA funds be made available to meet current and short -term needs arising from the pandemic impacts.
Councilmembers expressed a willingness to move forward with the recommended 15/85 allocation of ARPA to
address current needs while staff continues developing the recovery plan. Adoption of the ordinance will
appropriate the fifteen percent of the total ARPA allocation.
City staff has identified some current needs for use of the 15% allocation to include, but not be limited to,
workforce development business support for disadvantaged businesses, business navigation programs,
supportive assistance to those experiencing homelessness, utility, mortgage, and renta l assistance for those
that do not meet the income qualification requirement for assistance from Neighbor to Neighbor. The
pandemic’s impacts have been uneven and uncertain, so the ability to be nimble with the use of the 15%
allocation as short-term funds is key. City staff have also identified other needs for the use of the 85%
allocation as long-term recovery ARPA funds, including but not limited to, water/sewer infrastructure
improvements in low-income areas, affordable housing and childcare, mental health assistance, connectivity
(such as sidewalks) in low-income areas and other financial support and expenditures for continued response
and recovery from COVID. Council will be able to direct these long-term funds through the Fort Collins
Recovery Plan that staff is developing.
Consistent with the Council discussion at the May 25th work session, staff will strive to avoid utilizing ARPA
funding for budget shortfalls from the 2020 budget cuts and use of reserves. There are several "watch list"
Funds for which revenue is particularly strained, including Recreation, Parking, and Self -insurance. It is
possible that the 2022 City Manager's Recommended Budget will propose utilizing ARPA funding to address
budget shortfalls on a targeted basis, but this will be c learly identified for Council’s consideration.
Process for Social and Economic Recovery Grants
As subrecipients of the City, eligible organizations and entities will need to apply to the City for awards and
meet the same eligibility and intent requirements of ARPA and applicable federal regulations and guidance.
Staff is currently awaiting Treasury guidance on requirements for procurement and subrecipient awards. Staff
is also currently developing Frequently Asked Questions (FAQs) (Attachment 2) and grant criteria for public
release. A Recovery Core Team has been created that will prioritize and provide direction and oversight of the
awards and report to Council on grantees and awards.
Rental and Utility Assistance
As requested by Mayor Pro Tem Gorgol at the May 25th work session, information is provided here regarding
other entities’ programs to address housing and utility assistance.
Larimer County was awarded an estimated $10,000,000 from the federal Consolidated Appropriations Act
(2021) passed on December 2020, which the County intends to use for its Emergency Rental and Utility
Assistance Program (“ERAP”). The ERAP is being administered by Neighbor to Neighbor and is currently
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supporting those households at or below 80% of the area median income. An overview of the ERAP is
included with this AIS (Attachment 4). Assistance for homeowners and higher income renters is temporarily
paused. In addition, the State of Colorado is due to receive an estimated $175,000,000 from the Treasury to
support the Homeowner Assistance Fund and an estimated $385,000,000 to support the Emergency Rental
Assistance Program. The State is awaiting guidance on the distribution of those funds.
Additionally, the City will be receiving approximately $2,600,000 in ARPA funds al located through the federal
HOME Investment Partnerships Program to address some long -term tenant-based rent assistance,
development of affordable housing, and other supportive services to serve populations that have greatest risk
of housing instability. Staff is awaiting additional guidance specific to the ARPA HOME funds.
CITY FINANCIAL IMPACTS
Staff will continue to evaluate Treasury guidance as it evolves to determine the best use of the funds. The City
will seek to use the funds appropriated here for immediate needs as described above, including for the
reimbursement of expenses the City has not yet incurred. Staff plans to use these funds to address immediate
and short-term needs in response to the COVID-19 public health emergency.
Once the City has finalized a recovery plan, staff will bring an additional appropriation forward for Council’s
consideration for the remainder of the ARPA allocation.
Of the $28,118,971 in ARPA funds the City has been allocated, the City is appropriating $4,217,846, o r fifteen
percent, to the General Fund for immediate and short-term needs to address the COVID-19 pandemic impacts.
ATTACHMENTS
1. FACT SHEET: The Coronavirus State and Local Recovery Fund (PDF)
2. Frequently Asked Questions: Coronavirus State and Local Fiscal Recovery Fund (PDF)
3. Financial Assistance Agreement (PDF)
4. Larimer County Emergency Rent Assistance Program Overview (PDF)
5. Work Session Summary - City Recovery Plan (PDF)
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FACT SHEET: The Coronavirus State and Local Fiscal Recovery Funds Will Deliver
$350 Billion for State, Local, Territorial, and Tribal Governments to Respond to the
COVID-19 Emergency and Bring Back Jobs
May 10, 2021
Aid to state, local, territorial, and Tribal governments will help turn the tide on the pandemic, address its
economic fallout, and lay the foundation for a strong and equitable recovery
Today, the U.S. Department of the Treasury announced the launch of the Coronavirus State and Local
Fiscal Recovery Funds, established by the American Rescue Plan Act of 2021, to provide $350 billion in
emergency funding for eligible state, local, territorial, and Tribal governments. Treasury also released
details on how these funds can be used to respond to acute pandemic response needs, fill revenue
shortfalls among these governments, and support the communities and populations hardest-hit by the
COVID-19 crisis. With the launch of the Coronavirus State and Local Fiscal Recovery Funds, eligible
jurisdictions will be able to access this funding in the coming days to address these needs.
State, local, territorial, and Tribal governments have been on the frontlines of responding to the
immense public health and economic needs created by this crisis – from standing up vaccination sites to
supporting small businesses – even as these governments confronted revenue shortfalls during the
downturn. As a result, these governments have endured unprecedented strains, forcing many to make
untenable choices between laying off educators, firefighters, and other frontline workers or failing to
provide other services that communities rely on. Faced with these challenges, state and local
governments have cut over 1 million jobs since the beginning of the crisis. The experience of prior
economic downturns has shown that budget pressures like these often result in prolonged fiscal
austerity that can slow an economic recovery.
To support the immediate pandemic response, bring back jobs, and lay the groundwork for a strong and
equitable recovery, the American Rescue Plan Act of 2021 established the Coronavirus State and Local
Fiscal Recovery Funds, designed to deliver $350 billion to state, local, territorial, and Tribal governments
to bolster their response to the COVID-19 emergency and its economic impacts. Today, Treasury is
launching this much-needed relief to:
•Support urgent COVID-19 response efforts to continue to decrease spread of the virus and bring
the pandemic under control;
•Replace lost public sector revenue to strengthen support for vital public services and help retain
jobs;
•Support immediate economic stabilization for households and businesses; and,
•Address systemic public health and economic challenges that have contributed to the inequal
impact of the pandemic on certain populations.
The Coronavirus State and Local Fiscal Recovery Funds provide substantial flexibility for each jurisdiction
to meet local needs—including support for households, small businesses, impacted industries, essential
workers, and the communities hardest-hit by the crisis. These funds also deliver resources that
recipients can invest in building, maintaining, or upgrading their water, sewer, and broadband
infrastructure.
ATTACHMENT 1
2
Starting today, eligible state, territorial, metropolitan city, county, and Tribal governments may request
Coronavirus State and Local Fiscal Recovery Funds through the Treasury Submission Portal. Concurrent
with this program launch, Treasury has published an Interim Final Rule that implements the provisions
of this program.
FUNDING AMOUNTS
The American Rescue Plan provides a total of $350 billion in Coronavirus State and Local Fiscal Recovery
Funds to help eligible state, local, territorial, and Tribal governments meet their present needs and build
the foundation for a strong recovery. Congress has allocated this funding to tens of thousands of
jurisdictions. These allocations include:
Type
Amount
($ billions)
States & District of Columbia $195.3
Counties $65.1
Metropolitan Cites $45.6
Tribal Governments $20.0
Territories $4.5
Non-Entitlement Units of
Local Government
$19.5
Treasury expects to distribute these funds directly to each state, territorial, metropolitan city, county,
and Tribal government. Local governments that are classified as non-entitlement units will receive this
funding through their applicable state government. Treasury expects to provide further guidance on
distributions to non-entitlement units next week.
Local governments should expect to receive funds in two tranches, with 50% provided beginning in May
2021 and the balance delivered 12 months later. States that have experienced a net increase in the
unemployment rate of more than 2 percentage points from February 2020 to the latest available data as
of the date of certification will receive their full allocation of funds in a single payment; other states will
receive funds in two equal tranches. Governments of U.S. territories will receive a single payment.
Tribal governments will receive two payments, with the first payment available in May and the second
payment, based on employment data, to be delivered in June 2021.
USES OF FUNDING
Coronavirus State and Local Fiscal Recovery Funds provide eligible state, local, territorial, and Tribal
governments with a substantial infusion of resources to meet pandemic response needs and rebuild a
stronger, more equitable economy as the country recovers. Within the categories of eligible uses,
recipients have broad flexibility to decide how best to use this funding to meet the needs of their
communities. Recipients may use Coronavirus State and Local Fiscal Recovery Funds to:
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• Support public health expenditures, by funding COVID-19 mitigation efforts, medical expenses,
behavioral healthcare, and certain public health and safety staff;
• Address negative economic impacts caused by the public health emergency, including
economic harms to workers, households, small businesses, impacted industries, and the public
sector;
• Replace lost public sector revenue, using this funding to provide government services to the
extent of the reduction in revenue experienced due to the pandemic;
• Provide premium pay for essential workers, offering additional support to those who have
borne and will bear the greatest health risks because of their service in critical infrastructure
sectors; and,
• Invest in water, sewer, and broadband infrastructure, making necessary investments to
improve access to clean drinking water, support vital wastewater and stormwater
infrastructure, and to expand access to broadband internet.
Within these overall categories, Treasury’s Interim Final Rule provides guidelines and principles for
determining the types of programs and services that this funding can support, together with examples
of allowable uses that recipients may consider. As described below, Treasury has also designed these
provisions to take into consideration the disproportionate impacts of the COVID-19 public health
emergency on those hardest-hit by the pandemic.
1. Supporting the public health response
Mitigating the impact of COVID-19 continues to require an unprecedented public health response from
state, local, territorial, and Tribal governments. Coronavirus State and Local Fiscal Recovery Funds
provide resources to meet these needs through the provision of care for those impacted by the virus
and through services that address disparities in public health that have been exacerbated by the
pandemic. Recipients may use this funding to address a broad range of public health needs across
COVID-19 mitigation, medical expenses, behavioral healthcare, and public health resources. Among
other services, these funds can help support:
• Services and programs to contain and mitigate the spread of COVID-19, including:
Vaccination programs
Medical expenses
Testing
Contact tracing
Isolation or quarantine
PPE purchases
Support for vulnerable populations to
access medical or public health services
Public health surveillance (e.g.,
monitoring for variants)
Enforcement of public health orders
Public communication efforts
Enhancement of healthcare capacity,
including alternative care facilities
Support for prevention, mitigation, or
other services in congregate living
facilities and schools
Enhancement of public health data
systems
Capital investments in public facilities to
meet pandemic operational needs
Ventilation improvements in key settings
like healthcare facilities
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• Services to address behavioral healthcare needs exacerbated by the pandemic, including:
Mental health treatment
Substance misuse treatment
Other behavioral health services
Hotlines or warmlines
Crisis intervention
Services or outreach to promote access
to health and social services
• Payroll and covered benefits expenses for public health, healthcare, human services, public
safety and similar employees, to the extent that they work on the COVID-19 response. For
public health and safety workers, recipients can use these funds to cover the full payroll and
covered benefits costs for employees or operating units or divisions primarily dedicated to the
COVID-19 response.
2. Addressing the negative economic impacts caused by the public health emergency
The COVID-19 public health emergency resulted in significant economic hardship for many Americans.
As businesses closed, consumers stayed home, schools shifted to remote education, and travel declined
precipitously, over 20 million jobs were lost between February and April 2020. Although many have
since returned to work, as of April 2021, the economy remains more than 8 million jobs below its pre-
pandemic peak, and more than 3 million workers have dropped out of the labor market altogether since
February 2020.
To help alleviate the economic hardships caused by the pandemic, Coronavirus State and Local Fiscal
Recovery Funds enable eligible state, local, territorial, and Tribal governments to provide a wide range
of assistance to individuals and households, small businesses, and impacted industries, in addition to
enabling governments to rehire public sector staff and rebuild capacity. Among these uses include:
• Delivering assistance to workers and families, including aid to unemployed workers and job
training, as well as aid to households facing food, housing, or other financial insecurity. In
addition, these funds can support survivor’s benefits for family members of COVID-19 victims.
• Supporting small businesses, helping them to address financial challenges caused by the
pandemic and to make investments in COVID-19 prevention and mitigation tactics, as well as to
provide technical assistance. To achieve these goals, recipients may employ this funding to
execute a broad array of loan, grant, in-kind assistance, and counseling programs to enable
small businesses to rebound from the downturn.
• Speeding the recovery of the tourism, travel, and hospitality sectors, supporting industries that
were particularly hard-hit by the COVID-19 emergency and are just now beginning to mend.
Similarly impacted sectors within a local area are also eligible for support.
• Rebuilding public sector capacity, by rehiring public sector staff and replenishing
unemployment insurance (UI) trust funds, in each case up to pre-pandemic levels. Recipients
may also use this funding to build their internal capacity to successfully implement economic
relief programs, with investments in data analysis, targeted outreach, technology infrastructure,
and impact evaluations.
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3. Serving the hardest-hit communities and families
While the pandemic has affected communities across the country, it has disproportionately impacted
low-income families and communities of color and has exacerbated systemic health and economic
inequities. Low-income and socially vulnerable communities have experienced the most severe health
impacts. For example, counties with high poverty rates also have the highest rates of infections and
deaths, with 223 deaths per 100,000 compared to the U.S. average of 175 deaths per 100,000.
Coronavirus State and Local Fiscal Recovery Funds allow for a broad range of uses to address the
disproportionate public health and economic impacts of the crisis on the hardest-hit communities,
populations, and households. Eligible services include:
• Addressing health disparities and the social determinants of health, through funding for
community health workers, public benefits navigators, remediation of lead hazards, and
community violence intervention programs;
• Investments in housing and neighborhoods, such as services to address individuals
experiencing homelessness, affordable housing development, housing vouchers, and residential
counseling and housing navigation assistance to facilitate moves to neighborhoods with high
economic opportunity;
• Addressing educational disparities through new or expanded early learning services, providing
additional resources to high-poverty school districts, and offering educational services like
tutoring or afterschool programs as well as services to address social, emotional, and mental
health needs; and,
• Promoting healthy childhood environments, including new or expanded high quality childcare,
home visiting programs for families with young children, and enhanced services for child
welfare-involved families and foster youth.
Governments may use Coronavirus State and Local Fiscal Recovery Funds to support these additional
services if they are provided:
• within a Qualified Census Tract (a low-income area as designated by the Department of Housing
and Urban Development);
• to families living in Qualified Census Tracts;
• by a Tribal government; or,
• to other populations, households, or geographic areas disproportionately impacted by the
pandemic.
4. Replacing lost public sector revenue
State, local, territorial, and Tribal governments that are facing budget shortfalls may use Coronavirus
State and Local Fiscal Recovery Funds to avoid cuts to government services. With these additional
resources, recipients can continue to provide valuable public services and ensure that fiscal austerity
measures do not hamper the broader economic recovery.
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Many state, local, territorial, and Tribal governments have experienced significant budget shortfalls,
which can yield a devastating impact on their respective communities. Faced with budget shortfalls and
pandemic-related uncertainty, state and local governments cut staff in all 50 states. These budget
shortfalls and staff cuts are particularly problematic at present, as these entities are on the front lines of
battling the COVID-19 pandemic and helping citizens weather the economic downturn.
Recipients may use these funds to replace lost revenue. Treasury’s Interim Final Rule establishes a
methodology that each recipient can use to calculate its reduction in revenue. Specifically, recipients
will compute the extent of their reduction in revenue by comparing their actual revenue to an
alternative representing what could have been expected to occur in the absence of the pandemic.
Analysis of this expected trend begins with the last full fiscal year prior to the public health emergency
and projects forward at either (a) the recipient’s average annual revenue growth over the three full
fiscal years prior to the public health emergency or (b) 4.1%, the national average state and local
revenue growth rate from 2015-18 (the latest available data).
For administrative convenience, Treasury’s Interim Final Rule allows recipients to presume that any
diminution in actual revenue relative to the expected trend is due to the COVID-19 public health
emergency. Upon receiving Coronavirus State and Local Fiscal Recovery Funds, recipients may
immediately calculate the reduction in revenue that occurred in 2020 and deploy funds to address any
shortfall. Recipients will have the opportunity to re-calculate revenue loss at several points through the
program, supporting those entities that experience a lagged impact of the crisis on revenues.
Importantly, once a shortfall in revenue is identified, recipients will have broad latitude to use this
funding to support government services, up to this amount of lost revenue.
5. Providing premium pay for essential workers
Coronavirus State and Local Fiscal Recovery Funds provide resources for eligible state, local, territorial,
and Tribal governments to recognize the heroic contributions of essential workers. Since the start of the
public health emergency, essential workers have put their physical well-being at risk to meet the daily
needs of their communities and to provide care for others.
Many of these essential workers have not received compensation for the heightened risks they have
faced and continue to face. Recipients may use this funding to provide premium pay directly, or through
grants to private employers, to a broad range of essential workers who must be physically present at
their jobs including, among others:
Staff at nursing homes, hospitals,
and home-care settings
Workers at farms, food production
facilities, grocery stores, and restaurants
Janitors and sanitation workers
Public health and safety staff
Truck drivers, transit staff, and
warehouse workers
Childcare workers, educators, and school
staff
Social service and human services staff
Treasury’s Interim Final Rule emphasizes the need for recipients to prioritize premium pay for lower
income workers. Premium pay that would increase a worker’s total pay above 150% of the greater of
the state or county average annual wage requires specific justification for how it responds to the needs
of these workers.
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In addition, employers are both permitted and encouraged to use Coronavirus State and Local Fiscal
Recovery Funds to offer retrospective premium pay, recognizing that many essential workers have not
yet received additional compensation for work performed. Staff working for third-party contractors in
eligible sectors are also eligible for premium pay.
6. Investing in water and sewer infrastructure
Recipients may use Coronavirus State and Local Fiscal Recovery Funds to invest in necessary
improvements to their water and sewer infrastructures, including projects that address the impacts of
climate change.
Recipients may use this funding to invest in an array of drinking water infrastructure projects, such as
building or upgrading facilities and transmission, distribution, and storage systems, including the
replacement of lead service lines.
Recipients may also use this funding to invest in wastewater infrastructure projects, including
constructing publicly-owned treatment infrastructure, managing and treating stormwater or subsurface
drainage water, facilitating water reuse, and securing publicly-owned treatment works.
To help jurisdictions expedite their execution of these essential investments, Treasury’s Interim Final
Rule aligns types of eligible projects with the wide range of projects that can be supported by the
Environmental Protection Agency’s Clean Water State Revolving Fund and Drinking Water State
Revolving Fund. Recipients retain substantial flexibility to identify those water and sewer infrastructure
investments that are of the highest priority for their own communities.
Treasury’s Interim Final Rule also encourages recipients to ensure that water, sewer, and broadband
projects use strong labor standards, including project labor agreements and community benefits
agreements that offer wages at or above the prevailing rate and include local hire provisions.
7. Investing in broadband infrastructure
The pandemic has underscored the importance of access to universal, high-speed, reliable, and
affordable broadband coverage. Over the past year, millions of Americans relied on the internet to
participate in remote school, healthcare, and work.
Yet, by at least one measure, 30 million Americans live in areas where there is no broadband service or
where existing services do not deliver minimally acceptable speeds. For millions of other Americans, the
high cost of broadband access may place it out of reach. The American Rescue Plan aims to help remedy
these shortfalls, providing recipients with flexibility to use Coronavirus State and Local Fiscal Recovery
Funds to invest in broadband infrastructure.
Recognizing the acute need in certain communities, Treasury’s Interim Final Rule provides that
investments in broadband be made in areas that are currently unserved or underserved—in other
words, lacking a wireline connection that reliably delivers minimum speeds of 25 Mbps download and 3
Mbps upload. Recipients are also encouraged to prioritize projects that achieve last-mile connections to
households and businesses.
Using these funds, recipients generally should build broadband infrastructure with modern technologies
in mind, specifically those projects that deliver services offering reliable 100 Mbps download and 100
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Mbps upload speeds, unless impracticable due to topography, geography, or financial cost. In addition,
recipients are encouraged to pursue fiber optic investments.
In view of the wide disparities in broadband access, assistance to households to support internet access
or digital literacy is an eligible use to respond to the public health and negative economic impacts of the
pandemic, as detailed above.
8. Ineligible Uses
Coronavirus State and Local Fiscal Recovery Funds provide substantial resources to help eligible state,
local, territorial, and Tribal governments manage the public health and economic consequences of
COVID-19. Recipients have considerable flexibility to use these funds to address the diverse needs of
their communities.
To ensure that these funds are used for their intended purposes, the American Rescue Plan Act also
specifies two ineligible uses of funds:
• States and territories may not use this funding to directly or indirectly offset a reduction in net
tax revenue due to a change in law from March 3, 2021 through the last day of the fiscal year
in which the funds provided have been spent. The American Rescue Plan ensures that funds
needed to provide vital services and support public employees, small businesses, and families
struggling to make it through the pandemic are not used to fund reductions in net tax revenue.
Treasury’s Interim Final Rule implements this requirement. If a state or territory cuts taxes, they
must demonstrate how they paid for the tax cuts from sources other than Coronavirus State
Fiscal Recovery Funds—by enacting policies to raise other sources of revenue, by cutting
spending, or through higher revenue due to economic growth. If the funds provided have been
used to offset tax cuts, the amount used for this purpose must be paid back to the Treasury.
• No recipient may use this funding to make a deposit to a pension fund. Treasury’s Interim
Final Rule defines a “deposit” as an extraordinary contribution to a pension fund for the purpose
of reducing an accrued, unfunded liability. While pension deposits are prohibited, recipients
may use funds for routine payroll contributions for employees whose wages and salaries are an
eligible use of funds.
Treasury’s Interim Final Rule identifies several other ineligible uses, including funding debt service, legal
settlements or judgments, and deposits to rainy day funds or financial reserves. Further, general
infrastructure spending is not covered as an eligible use outside of water, sewer, and broadband
investments or above the amount allocated under the revenue loss provision. While the program offers
broad flexibility to recipients to address local conditions, these restrictions will help ensure that funds
are used to augment existing activities and address pressing needs.
AS OF MAY 27, 2021
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Coronavirus State and Local Fiscal Recovery Funds
Frequently Asked Questions
AS OF MAY 27, 2021
This document contains answers to frequently asked questions regarding the Coronavirus State
and Local Fiscal Recovery Funds (CSFRF / CLFRF, or Fiscal Recovery Funds). Treasury will
be updating this document periodically in response to questions received from stakeholders.
Recipients and stakeholders should consult the Interim Final Rule for additional information.
•For overall information about the program, including information on requesting funding,
please see https://home.treasury.gov/policy-issues/coronavirus/assistance-for-state-local-
and-tribal-governments
•For general questions about CSFRF / CLFRF, please email SLFRP@treasury.gov
•Treasury is seeking comment on all aspects of the Interim Final Rule. Stakeholders are
encouraged to submit comments electronically through the Federal eRulemaking Portal
(https://www.regulations.gov/document/TREAS-DO-2021-0008-0002) on or before July
16, 2021. Please be advised that comments received will be part of the public record and
subject to public disclosure. Do not disclose any information in your comment or
supporting materials that you consider confidential or inappropriate for public disclosure.
Questions added 5/27/21: 1.5, 1.6, 2.13, 2.14, 2.15, 3.9, 4.5, 4.6, 10.3, 10.4 (noted with “[5/27]”)
1.Eligibility and Allocations
1.1. Which governments are eligible for funds?
The following governments are eligible:
•States and the District of Columbia
•Territories
•Tribal governments
•Counties
•Metropolitan cities
•Non-entitlement units, or smaller local governments
1.2. Which governments receive funds directly from Treasury?
Treasury will distribute funds directly to each eligible state, territory, metropolitan city,
county, or Tribal government. Smaller local governments that are classified as non-
entitlement units will receive funds through their applicable state government.
1.3. Are special-purpose units of government eligible to receive funds?
ATTACHMENT 2
AS OF MAY 27, 2021
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Special-purpose units of local government will not receive funding allocations; however,
a state, territory, local, or Tribal government may transfer funds to a special-purpose unit
of government. Special-purpose districts perform specific functions in the community,
such as fire, water, sewer or mosquito abatement districts.
1.4. How are funds being allocated to Tribal governments, and how will Tribal
governments find out their allocation amounts?
$20 billion of Fiscal Recovery Funds was reserved for Tribal governments. The
American Rescue Plan Act specifies that $1 billion will be allocated evenly to all eligible
Tribal governments. The remaining $19 billion will be distributed using an allocation
methodology based on enrollment and employment.
There will be two payments to Tribal governments. Each Tribal government’s first
payment will include (i) an amount in respect of the $1 billion allocation that is to be
divided equally among eligible Tribal governments and (ii) each Tribal government’s pro
rata share of the Enrollment Allocation. Tribal governments will be notified of their
allocation amount and delivery of payment 4-5 days after completing request for funds in
the Treasury Submission Portal. The deadline to make the initial request for funds is
June 7, 2021.
In late-May or shortly after completing the initial request for funds, Tribal governments
will receive an email notification to re-enter the Treasury Submission Portal to confirm or
amend their 2019 employment numbers that were submitted to the Department of the
Treasury for the CARES Act’s Coronavirus Relief Fund. The deadline to confirm
employment numbers is June 21, 2021. Treasury will calculate each Tribal government’s
pro rata share of the Employment Allocation for those Tribal governments that confirmed
or submitted amended employment numbers. In late-June, Treasury will communicate to
Tribal governments the amount of their portion of the Employment Allocation and the
anticipated date for the second payment.
1.5. My county is a unit of general local government with population under 50,000. Will
my county receive funds directly from Treasury? [5/27]
Yes. All counties that are units of general local government will receive funds directly
from Treasury and should apply via the online portal. The list of county allocations is
available here.
1.6. My local government expected to be classified as a nonentitlement unit. Instead, it
was classified as a metropolitan city. Why? [5/27]
The American Rescue Plan Act defines, for purposes of the Coronavirus Local Fiscal
Recovery Fund (CLFRF), metropolitan cities to include those that are currently
metropolitan cities under the Community Development Block Grant (CDBG) program
but also those cities that relinquish or defer their status as a metropolitan city for purposes
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3
of the CDBG program. This would include, by way of example, cities that are principal
cities of their metropolitan statistical area, even if their population is less than 50,000. In
other words, a city that is eligible to be a metropolitan city under the CDBG program is
eligible as a metropolitan city under the CLFRF, regardless of how that city has elected to
participate in the CDBG program.
Unofficial allocation estimates produced by other organizations may have classified
certain local governments as nonentitlement units of local government. However, based
on the statutory definitions, some of these local governments should have been classified
as metropolitan cities.
2. Eligible Uses – Responding to the Public Health Emergency / Negative
Economic Impacts
2.1. What types of COVID-19 response, mitigation, and prevention activities are
eligible?
A broad range of services are needed to contain COVID-19 and are eligible uses,
including vaccination programs; medical care; testing; contact tracing; support for
isolation or quarantine; supports for vulnerable populations to access medical or public
health services; public health surveillance (e.g., monitoring case trends, genomic
sequencing for variants); enforcement of public health orders; public communication
efforts; enhancement to health care capacity, including through alternative care facilities;
purchases of personal protective equipment; support for prevention, mitigation, or other
services in congregate living facilities (e.g., nursing homes, incarceration settings,
homeless shelters, group living facilities) and other key settings like schools; ventilation
improvements in congregate settings, health care settings, or other key locations;
enhancement of public health data systems; and other public health responses. Capital
investments in public facilities to meet pandemic operational needs are also eligible, such
as physical plant improvements to public hospitals and health clinics or adaptations to
public buildings to implement COVID-19 mitigation tactics.
2.2. If a use of funds was allowable under the Coronavirus Relief Fund (CRF) to
respond to the public health emergency, may recipients presume it is also allowable
under CSFRF/CLFRF?
Generally, funding uses eligible under CRF as a response to the direct public health
impacts of COVID-19 will continue to be eligible under CSFRF/CLFRF, with the
following two exceptions: (1) the standard for eligibility of public health and safety
payrolls has been updated; and (2) expenses related to the issuance of tax-anticipation
notes are not an eligible funding use.
2.3. If a use of funds is not explicitly permitted in the Interim Final Rule as a response to
the public health emergency and its negative economic impacts, does that mean it is
prohibited?
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The Interim Final Rule contains a non-exclusive list of programs or services that may be
funded as responding to COVID-19 or the negative economic impacts of the COVID-19
public health emergency, along with considerations for evaluating other potential uses of
Fiscal Recovery Funds not explicitly listed. The Interim Final Rule also provides
flexibility for recipients to use Fiscal Recovery Funds for programs or services that are
not identified on these non-exclusive lists but which meet the objectives of section
602(c)(1)(A) or 603(c)(1)(A) by responding to the COVID-19 public health emergency
with respect to COVID-19 or its negative economic impacts.
2.4. May recipients use funds to respond to the public health emergency and its negative
economic impacts by replenishing state unemployment funds?
Consistent with the approach taken in the CRF, recipients may make deposits into the
state account of the Unemployment Trust Fund up to the level needed to restore the pre-
pandemic balances of such account as of January 27, 2020, or to pay back advances
received for the payment of benefits between January 27, 2020 and the date when the
Interim Final Rule is published in the Federal Register.
2.5. What types of services are eligible as responses to the negative economic impacts of
the pandemic?
Eligible uses in this category include assistance to households; small businesses and non-
profits; and aid to impacted industries.
Assistance to households includes, but is not limited to: food assistance; rent, mortgage,
or utility assistance; counseling and legal aid to prevent eviction or homelessness; cash
assistance; emergency assistance for burials, home repairs, weatherization, or other
needs; internet access or digital literacy assistance; or job training to address negative
economic or public health impacts experienced due to a worker’s occupation or level of
training.
Assistance to small business and non-profits includes, but is not limited to:
• loans or grants to mitigate financial hardship such as declines in revenues or
impacts of periods of business closure, for example by supporting payroll and
benefits costs, costs to retain employees, mortgage, rent, or utilities costs, and
other operating costs;
• Loans, grants, or in-kind assistance to implement COVID-19 prevention or
mitigation tactics, such as physical plant changes to enable social distancing,
enhanced cleaning efforts, barriers or partitions, or COVID-19 vaccination,
testing, or contact tracing programs; and
• Technical assistance, counseling, or other services to assist with business planning
needs
2.6. May recipients use funds to respond to the public health emergency and its negative
economic impacts by providing direct cash transfers to households?
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5
Yes, provided the recipient considers whether, and the extent to which, the household has
experienced a negative economic impact from the pandemic. Additionally, cash transfers
must be reasonably proportional to the negative economic impact they are intended to
address. Cash transfers grossly in excess of the amount needed to address the negative
economic impact identified by the recipient would not be considered to be a response to
the COVID-19 public health emergency or its negative impacts. In particular, when
considering appropriate size of permissible cash transfers made in response to the
COVID-19 public health emergency, state, local, territorial, and Tribal governments may
consider and take guidance from the per person amounts previously provided by the
federal government in response to the COVID crisis.
2.7. May funds be used to reimburse recipients for costs incurred by state and local
governments in responding to the public health emergency and its negative
economic impacts prior to passage of the American Rescue Plan?
Use of Fiscal Recovery Funds is generally forward looking. The Interim Final Rule
permits funds to be used to cover costs incurred beginning on March 3, 2021.
2.8. May recipients use funds for general economic development or workforce
development?
Generally, not. Recipients must demonstrate that funding uses directly address a negative
economic impact of the COVID-19 public health emergency, including funds used for
economic or workforce development. For example, job training for unemployed workers
may be used to address negative economic impacts of the public health emergency and be
eligible.
2.9. How can recipients use funds to assist the travel, tourism, and hospitality
industries?
Aid provided to tourism, travel, and hospitality industries should respond to the negative
economic impacts of the pandemic. For example, a recipient may provide aid to support
safe reopening of businesses in the tourism, travel and hospitality industries and to
districts that were closed during the COVID-19 public health emergency, as well as aid a
planned expansion or upgrade of tourism, travel and hospitality facilities delayed due to
the pandemic.
Tribal development districts are considered the commercial centers for tribal hospitality,
gaming, tourism and entertainment industries.
2.10. May recipients use funds to assist impacted industries other than travel, tourism,
and hospitality?
Yes, provided that recipients consider the extent of the impact in such industries as
compared to tourism, travel, and hospitality, the industries enumerated in the statute. For
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example, nationwide the leisure and hospitality industry has experienced an
approximately 17 percent decline in employment and 24 percent decline in revenue, on
net, due to the COVID-19 public health emergency. Recipients should also consider
whether impacts were due to the COVID-19 pandemic, as opposed to longer-term
economic or industrial trends unrelated to the pandemic.
Recipients should maintain records to support their assessment of how businesses or
business districts receiving assistance were affected by the negative economic impacts of
the pandemic and how the aid provided responds to these impacts.
2.11. How does the Interim Final Rule help address the disparate impact of COVID-19 on
certain populations and geographies?
In recognition of the disproportionate impacts of the COVID-19 virus on health and
economic outcomes in low-income and Native American communities, the Interim Final
Rule identifies a broader range of services and programs that are considered to be in
response to the public health emergency when provided in these communities.
Specifically, Treasury will presume that certain types of services are eligible uses when
provided in a Qualified Census Tract (QCT), to families living in QCTs, or when these
services are provided by Tribal governments.
Recipients may also provide these services to other populations, households, or
geographic areas disproportionately impacted by the pandemic. In identifying these
disproportionately-impacted communities, recipients should be able to support their
determination for how the pandemic disproportionately impacted the populations,
households, or geographic areas to be served.
Eligible services include:
• Addressing health disparities and the social determinants of health, including:
community health workers, public benefits navigators, remediation of lead paint
or other lead hazards, and community violence intervention programs;
• Building stronger neighborhoods and communities, including: supportive housing
and other services for individuals experiencing homelessness, development of
affordable housing, and housing vouchers and assistance relocating to
neighborhoods with higher levels of economic opportunity;
• Addressing educational disparities exacerbated by COVID-19, including: early
learning services, increasing resources for high-poverty school districts,
educational services like tutoring or afterschool programs, and supports for
students’ social, emotional, and mental health needs; and
• Promoting healthy childhood environments, including: child care, home visiting
programs for families with young children, and enhanced services for child
welfare-involved families and foster youth.
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2.12. May recipients use funds to pay for vaccine incentive programs (e.g., cash or in-kind
transfers, lottery programs, or other incentives for individuals who get vaccinated)?
Yes. Under the Interim Final Rule, recipients may use Coronavirus State and Local
Fiscal Recovery Funds to respond to the COVID-19 public health emergency, including
expenses related to COVID-19 vaccination programs. See forthcoming 31 CFR
35.6(b)(1)(i). Programs that provide incentives reasonably expected to increase the
number of people who choose to get vaccinated, or that motivate people to get vaccinated
sooner than they otherwise would have, are an allowable use of funds so long as such
costs are reasonably proportional to the expected public health benefit.
2.13. May recipients use funds to pay “back to work incentives” (e.g., cash payments for
newly employed workers after a certain period of time on the job)? [5/27]
Yes. Under the Interim Final Rule, recipients may use Coronavirus State and Local
Fiscal Recovery Funds to provide assistance to unemployed workers. See forthcoming
31 CFR 35.6(b)(4). This assistance can include job training or other efforts to accelerate
rehiring and thus reduce unemployment, such as childcare assistance, assistance with
transportation to and from a jobsite or interview, and incentives for newly employed
workers.
2.14. The Coronavirus Relief Fund (CRF) included as an eligible use: "Payroll expenses
for public safety, public health, health care, human services, and similar employees
whose services are substantially dedicated to mitigating or responding to the
COVID-19 public health emergency." What has changed in CSFRF/CLFRF, and
what type of documentation is required under CSFRF/CLFRF? [5/27]
Many of the expenses authorized under the Coronavirus Relief Fund are also eligible uses
under the CSFRF/CLFRF. However, in the case of payroll expenses for public safety,
public health, health care, human services, and similar employees (hereafter, public
health and safety staff), the CSFRF/CLFRF does differ from the CRF. This change
reflects the differences between the ARPA and CARES Act and recognizes that the
response to the COVID-19 public health emergency has changed and will continue to
change over time. In particular, funds may be used for payroll and covered benefits
expenses for public safety, public health, health care, human services, and similar
employees, including first responders, to the extent that the employee’s time that is
dedicated to responding to the COVID-19 public health emergency.
For administrative convenience, the recipient may consider a public health and safety
employee to be entirely devoted to mitigating or responding to the COVID-19 public
health emergency, and therefore fully covered, if the employee, or his or her operating
unit or division, is primarily dedicated (e.g., more than half of the employee’s time is
dedicated) to responding to the COVID-19 public health emergency.
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Recipients may use presumptions for assessing whether an employee, division, or
operating unit is primarily dedicated to COVID-19 response. The recipient should
maintain records to support its assessment, such as payroll records, attestations from
supervisors or staff, or regular work product or correspondence demonstrating work on
the COVID-19 response. Recipients need not routinely track staff hours. Recipients
should periodically reassess their determinations.
2.15. What staff are included in “public safety, public health, health care, human
services, and similar employees”? Would this include, for example, 911 operators,
morgue staff, medical examiner staff, or EMS staff? [5/27]
As discussed in the Interim Final Rule, funds may be used for payroll and covered
benefits expenses for public safety, public health, health care, human services, and
similar employees, for the portion of the employee’s time that is dedicated to responding
to the COVID-19 public health emergency.
Public safety employees would include police officers (including state police officers),
sheriffs and deputy sheriffs, firefighters, emergency medical responders, correctional and
detention officers, and those who directly support such employees such as dispatchers
and supervisory personnel. Public health employees would include employees involved
in providing medical and other health services to patients and supervisory personnel,
including medical staff assigned to schools, prisons, and other such institutions, and other
support services essential for patient care (e.g., laboratory technicians, medical examiner
or morgue staff) as well as employees of public health departments directly engaged in
matters related to public health and related supervisory personnel. Human services staff
include employees providing or administering social services; public benefits; child
welfare services; and child, elder, or family care, as well as others.
3. Eligible Uses – Revenue Loss
3.1. How is revenue defined for the purpose of this provision?
The Interim Final Rule adopts a definition of “General Revenue” that is based on, but not
identical, to the Census Bureau’s concept of “General Revenue from Own Sources” in the
Annual Survey of State and Local Government Finances.
General Revenue includes revenue from taxes, current charges, and miscellaneous
general revenue. It excludes refunds and other correcting transactions, proceeds from
issuance of debt or the sale of investments, agency or private trust transactions, and
revenue generated by utilities and insurance trusts. General revenue also includes
intergovernmental transfers between state and local governments, but excludes
intergovernmental transfers from the Federal government, including Federal transfers
made via a state to a locality pursuant to the CRF or the Fiscal Recovery Funds.
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Tribal governments may include all revenue from Tribal enterprises and gaming
operations in the definition of General Revenue.
3.2. Will revenue be calculated on an entity-wide basis or on a source-by-source basis
(e.g. property tax, income tax, sales tax, etc.)?
Recipients should calculate revenue on an entity-wide basis. This approach minimizes
the administrative burden for recipients, provides for greater consistency across
recipients, and presents a more accurate representation of the net impact of the
COVID- 19 public health emergency on a recipient’s revenue, rather than relying on
financial reporting prepared by each recipient, which vary in methodology used and
which generally aggregates revenue by purpose rather than by source.
3.3. Does the definition of revenue include outside concessions that contract with a state
or local government?
Recipients should classify revenue sources as they would if responding to the U.S.
Census Bureau’s Annual Survey of State and Local Government Finances. According to
the Census Bureau’s Government Finance and Employment Classification manual, the
following is an example of current charges that would be included in a state or local
government’s general revenue from own sources: “Gross revenue of facilities operated by
a government (swimming pools, recreational marinas and piers, golf courses, skating
rinks, museums, zoos, etc.); auxiliary facilities in public recreation areas (camping areas,
refreshment stands, gift shops, etc.); lease or use fees from stadiums, auditoriums, and
community and convention centers; and rentals from concessions at such facilities.”
3.4. What is the time period for estimating revenue loss? Will revenue losses experienced
prior to the passage of the Act be considered?
Recipients are permitted to calculate the extent of reduction in revenue as of four points
in time: December 31, 2020; December 31, 2021; December 31, 2022; and December 31,
2023. This approach recognizes that some recipients may experience lagged effects of the
pandemic on revenues.
Upon receiving Fiscal Recovery Fund payments, recipients may immediately calculate
revenue loss for the period ending December 31, 2020.
3.5. What is the formula for calculating the reduction in revenue?
A reduction in a recipient’s General Revenue equals:
Max {[Base Year Revenue* (1+Growth Adjustment)(nt12)] - Actual General Revenuet ; 0}
Where:
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Base Year Revenue is General Revenue collected in the most recent full fiscal year prior
to the COVD-19 public health emergency.
Growth Adjustment is equal to the greater of 4.1 percent (or 0.041) and the recipient’s
average annual revenue growth over the three full fiscal years prior to the COVID-19
public health emergency.
n equals the number of months elapsed from the end of the base year to the calculation
date.
Actual General Revenue is a recipient’s actual general revenue collected during 12-month
period ending on each calculation date.
Subscript t denotes the calculation date.
3.6. Are recipients expected to demonstrate that reduction in revenue is due to the
COVID-19 public health emergency?
In the Interim Final Rule, any diminution in actual revenue calculated using the formula
above would be presumed to have been “due to” the COVID-19 public health emergency.
This presumption is made for administrative ease and in recognition of the broad-based
economic damage that the pandemic has wrought.
3.7. May recipients use pre-pandemic projections as a basis to estimate the reduction in
revenue?
No. Treasury is disallowing the use of projections to ensure consistency and
comparability across recipients and to streamline verification. However, in estimating
the revenue shortfall using the formula above, recipients may incorporate their average
annual revenue growth rate in the three full fiscal years prior to the public health
emergency.
3.8. Once a recipient has identified a reduction in revenue, are there any restrictions on
how recipients use funds up to the amount of the reduction?
The Interim Final Rule gives recipients broad latitude to use funds for the provision of
government services to the extent of reduction in revenue. Government services can
include, but are not limited to, maintenance of infrastructure or pay-go spending for
building new infrastructure, including roads; modernization of cybersecurity, including
hardware, software, and protection of critical infrastructure; health services;
environmental remediation; school or educational services; and the provision of police,
fire, and other public safety services.
However, paying interest or principal on outstanding debt, replenishing rainy day or other
reserve funds, or paying settlements or judgments would not be considered provision of a
government service, since these uses of funds do not entail direct provision of services to
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citizens. This restriction on paying interest or principal on any outstanding debt
instrument, includes, for example, short-term revenue or tax anticipation notes, or paying
fees or issuance costs associated with the issuance of new debt. In addition, the
overarching restrictions on all program funds (e.g., restriction on pension deposits,
restriction on using funds for non-federal match where barred by regulation or statute)
would apply.
3.9. How do I know if a certain type of revenue should be counted for the purpose of
computing revenue loss? [5/27]
As discussed in FAQ #3.1, the Interim Final Rule adopts a definition of “General
Revenue” that is based on, but not identical, to the Census Bureau’s concept of “General
Revenue from Own Sources” in the Annual Survey of State and Local Government
Finances.
Recipients should refer to the definition of “General Revenue” included in the Interim
Final Rule. See forthcoming 31 CFR 35.3. If a recipient is unsure whether a particular
revenue source is included in the Interim Final Rule’s definition of “General Revenue,”
the recipient may consider the classification and instructions used to complete the Census
Bureau’s Annual Survey.
For example, parking fees would be classified as a Current Charge for the purpose of the
Census Bureau’s Annual Survey, and the Interim Final Rule’s concept of “General
Revenue” includes all Current Charges. Therefore, parking fees would be included in the
Interim Final Rule’s concept of “General Revenue.”
The Census Bureau’s Government Finance and Employment Classification manual is
available here.
4. Eligible Uses – General
4.1. May recipients use funds to replenish a budget stabilization fund, rainy day fund, or
similar reserve account?
No. Funds made available to respond to the public health emergency and its negative
economic impacts are intended to help meet pandemic response needs and provide
immediate stabilization for households and businesses. Contributions to rainy day funds
and similar reserves funds would not address these needs or respond to the COVID-19
public health emergency, but would rather be savings for future spending needs.
Similarly, funds made available for the provision of governmental services (to the extent
of reduction in revenue) are intended to support direct provision of services to citizens.
Contributions to rainy day funds are not considered provision of government services,
since such expenses do not directly relate to the provision of government services.
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4.2. May recipients use funds to invest in infrastructure other than water, sewer, and
broadband projects (e.g. roads, public facilities)?
Under 602(c)(1)(C) or 603(c)(1)(C), recipients may use funds for maintenance of
infrastructure or pay-go spending for building of new infrastructure as part of the general
provision of government services, to the extent of the estimated reduction in revenue due
to the public health emergency.
Under 602(c)(1)(A) or 603(c)(1)(A), a general infrastructure project typically would not
be considered a response to the public health emergency and its negative economic
impacts unless the project responds to a specific pandemic-related public health need
(e.g., investments in facilities for the delivery of vaccines) or a specific negative
economic impact of the pandemic (e.g., affordable housing in a Qualified Census Tract).
4.3. May recipients use funds to pay interest or principal on outstanding debt?
No. Expenses related to financing, including servicing or redeeming notes, would not
address the needs of pandemic response or its negative economic impacts. Such expenses
would also not be considered provision of government services, as these financing
expenses do not directly provide services or aid to citizens.
This applies to paying interest or principal on any outstanding debt instrument, including,
for example, short-term revenue or tax anticipation notes, or paying fees or issuance costs
associated with the issuance of new debt.
4.4. May recipients use funds to satisfy nonfederal matching requirements under the
Stafford Act? May recipients use funds to satisfy nonfederal matching requirements
generally?
Fiscal Recovery Funds are subject to pre-existing limitations in other federal statutes and
regulations and may not be used as non-federal match for other Federal programs whose
statute or regulations bar the use of Federal funds to meet matching requirements. For
example, expenses for the state share of Medicaid are not an eligible use. For information
on FEMA programs, please see here.
4.5. Are governments required to submit proposed expenditures to Treasury for
approval? [5/27]
No. Recipients are not required to submit planned expenditures for prior approval by
Treasury. Recipients are subject to the requirements and guidelines for eligible uses
contained in the Interim Final Rule.
4.6. How do I know if a specific use is eligible? [5/27]
Fiscal Recovery Funds must be used in one of the four eligible use categories specified in
the American Rescue Plan Act and implemented in the Interim Final Rule:
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a) To respond to the public health emergency or its negative economic impacts,
including assistance to households, small businesses, and nonprofits, or aid to
impacted industries such as tourism, travel, and hospitality;
b) To respond to workers performing essential work during the COVID-19 public
health emergency by providing premium pay to eligible workers;
c) For the provision of government services to the extent of the reduction in revenue
due to the COVID–19 public health emergency relative to revenues collected in
the most recent full fiscal year prior to the emergency; and
d) To make necessary investments in water, sewer, or broadband infrastructure.
Recipients should consult Section II of the Interim Final Rule for additional information
on eligible uses. For recipients evaluating potential uses under (a), the Interim Final Rule
contains a non-exclusive list of programs or services that may be funded as responding to
COVID-19 or the negative economic impacts of the COVID-19 public health emergency,
along with considerations for evaluating other potential uses of Fiscal Recovery Funds
not explicitly listed. See Section 2 for additional discussion.
For recipients evaluating potential uses under (c), the Interim Final Rule gives recipients
broad latitude to use funds for the provision of government services to the extent of
reduction in revenue. See FAQ #3.8 for additional discussion.
For recipients evaluating potential uses under (b) and (d), see Sections 5 and 6.
5. Eligible Uses – Premium Pay
5.1. What criteria should recipients use in identifying essential workers to receive
premium pay?
Essential workers are those in critical infrastructure sectors who regularly perform in-
person work, interact with others at work, or physically handle items handled by others.
Critical infrastructure sectors include healthcare, education and childcare, transportation,
sanitation, grocery and food production, and public health and safety, among others, as
provided in the Interim Final Rule. Governments receiving Fiscal Recovery Funds have
the discretion to add additional sectors to this list, so long as the sectors are considered
critical to protect the health and well-being of residents.
The Interim Final Rule emphasizes the need for recipients to prioritize premium pay for
lower income workers. Premium pay that would increase a worker’s total pay above
150% of the greater of the state or county average annual wage requires specific
justification for how it responds to the needs of these workers.
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5.2. What criteria should recipients use in identifying third-party employers to receive
grants for the purpose of providing premium pay to essential workers?
Any third-party employers of essential workers are eligible. Third-party contractors who
employ essential workers in eligible sectors are also eligible for grants to provide
premium pay. Selection of third-party employers and contractors who receive grants is at
the discretion of recipients.
To ensure any grants respond to the needs of essential workers and are made in a fair and
transparent manner, the rule imposes some additional reporting requirements for grants to
third-party employers, including the public disclosure of grants provided.
5.3. May recipients provide premium pay retroactively for work already performed?
Yes. Treasury encourages recipients to consider providing premium pay retroactively for
work performed during the pandemic, recognizing that many essential workers have not
yet received additional compensation for their service during the pandemic.
6. Eligible Uses – Water, Sewer, and Broadband Infrastructure
6.1. What types of water and sewer projects are eligible uses of funds?
The Interim Final Rule generally aligns eligible uses of the Funds with the wide range of
types or categories of projects that would be eligible to receive financial assistance
through the Environmental Protection Agency’s Clean Water State Revolving Fund
(CWSRF) or Drinking Water State Revolving Fund (DWSRF).
Under the DWSRF, categories of eligible projects include: treatment, transmission and
distribution (including lead service line replacement), source rehabilitation and
decontamination, storage, consolidation, and new systems development.
Under the CWSRF, categories of eligible projects include: construction of publicly-
owned treatment works, nonpoint source pollution management, national estuary
program projects, decentralized wastewater treatment systems, stormwater systems, water
conservation, efficiency, and reuse measures, watershed pilot projects, energy efficiency
measures for publicly-owned treatment works, water reuse projects, security measures at
publicly-owned treatment works, and technical assistance to ensure compliance with the
Clean Water Act.
As mentioned in the Interim Final Rule, eligible projects under the DWSRF and CWSRF
support efforts to address climate change, as well as to meet cybersecurity needs to
protect water and sewer infrastructure. Given the lifelong impacts of lead exposure for
children, and the widespread nature of lead service lines, Treasury also encourages
recipients to consider projects to replace lead service lines.
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6.2. May construction on eligible water, sewer, or broadband infrastructure projects
continue past December 31, 2024, assuming funds have been obligated prior to that
date?
Yes. Treasury is interpreting the requirement that costs be incurred by December 31,
2024 to only require that recipients have obligated the funds by such date. The period of
performance will run until December 31, 2026, which will provide recipients a
reasonable amount of time to complete projects funded with Fiscal Recovery Funds.
6.3. May recipients use funds as a non-federal match for the Clean Water State
Revolving Fund (CWSRF) or Drinking Water State Revolving Fund (DWSRF)?
Recipients may not use funds as a state match for the CWSRF and DWSRF due to
prohibitions in utilizing federal funds as a state match in the authorizing statutes and
regulations of the CWSRF and DWSRF.
6.4. Does the National Environmental Policy Act (NEPA) apply to eligible infrastructure
projects?
NEPA does not apply to Treasury’s administration of the Funds. Projects supported with
payments from the Funds may still be subject to NEPA review if they are also funded by
other federal financial assistance programs.
6.5. What types of broadband projects are eligible?
The Interim Final Rule requires eligible projects to reliably deliver minimum speeds of
100 Mbps download and 100 Mbps upload. In cases where it is impracticable due to
geography, topography, or financial cost to meet those standards, projects must reliably
deliver at least 100 Mbps download speed, at least 20 Mbps upload speed, and be
scalable to a minimum of 100 Mbps download speed and 100 Mbps upload speed.
Projects must also be designed to serve unserved or underserved households and
businesses, defined as those that are not currently served by a wireline connection that
reliably delivers at least 25 Mbps download speed and 3 Mbps of upload speed.
6.6. For broadband investments, may recipients use funds for related programs such as
cybersecurity or digital literacy training?
Yes. Recipients may use funds to provide assistance to households facing negative
economic impacts due to Covid-19, including digital literacy training and other programs
that promote access to the Internet. Recipients may also use funds for modernization of
cybersecurity, including hardware, software, and protection of critical infrastructure, as
part of provision of government services up to the amount of revenue lost due to the
public health emergency.
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7. Non-Entitlement Units (NEUs)
7.1. Can states impose requirements or conditions on the transfer of funds to NEUs?
As the statute requires states to make distributions based on population, states may not
place additional conditions or requirements on distributions to NEUs, beyond those
required by the ARPA and Treasury’s implementing regulations and guidance.
For example, states may not impose stricter limitations than permitted by statute or
Treasury regulations or guidance on an NEU’s use of Fiscal Recovery Funds based on the
NEU’s proposed spending plan or other policies, nor permitted to offset any debt owed
by the NEU against its payment. Further, states may not provide funding on a
reimbursement basis (e.g., requiring NEUs to pay for project costs up front before being
reimbursed with Fiscal Recovery Fund payments), because this approach would not
comport with the statutory requirement that states make distributions to NEUs within the
statutory timeframe.
7.2. Can states transfer additional funds to local governments beyond amount allocated
to NEUs?
Yes. The Interim Final Rule permits states, territories, and Tribal governments to transfer
Fiscal Recovery Funds to other constituent units of government or private entities beyond
those specified in the statute, as long as the transferee abides by the transferor's eligible
use and other requirements. Similarly, local governments are authorized to transfer
Fiscal Recovery Funds to other constituent units of government (e.g., a county is able to
transfer Fiscal Recovery Funds to a city, town or school district within it).
7.3. What is the definition of “budget” for the purpose of the 75 percent cap on NEU
payments, and who is responsible for enforcing this cap?
States are responsible for enforcing the “75 percent cap” on NEU payments, which is a
statutory requirement that distributions to NEUs not exceed 75 percent of the NEU’s
most recent budget. Treasury interprets the most recent budget as the NEU’s most recent
annual total operating budget, including its general fund and other funds, as of January
27, 2020. States may rely for this determination on a certified top-line budget total from
the NEU. Funding amounts in excess of such cap must be returned to Treasury.
7.4. May states use funds to pay for the administrative costs of allocating and
distributing money to the NEUs?
Yes. If necessary, states may use Fiscal Recovery Funds to support the administrative
costs of allocating and distributing money to NEUs, as disbursing these funds itself is a
response to the public health emergency and its negative economic impacts.
AS OF MAY 27, 2021
17
8. Ineligible Uses
8.1. What is meant by a pension “deposit”? Can governments use funds for routine
pension contributions for employees whose payroll and covered benefits are eligible
expenses?
Treasury interprets “deposit” in this context to refer to an extraordinary payment into a
pension fund for the purpose of reducing an accrued, unfunded liability. More
specifically, the interim final rule does not permit this assistance to be used to make a
payment into a pension fund if both: (1) the payment reduces a liability incurred prior to
the start of the COVID-19 public health emergency, and (2) the payment occurs outside
the recipient’s regular timing for making such payments.
Under this interpretation, a “deposit” is distinct from a “payroll contribution,” which
occurs when employers make payments into pension funds on regular intervals, with
contribution amounts based on a pre-determined percentage of employees’ wages and
salaries. In general, if an employee’s wages and salaries are an eligible use of Fiscal
Recovery Funds, recipients may treat the employee’s covered benefits as an eligible use
of Fiscal Recovery Funds.
9. Reporting
9.1. What records must be kept by governments receiving funds?
Financial records and supporting documents related to the award must be retained for a
period of five years after all funds have been expended or returned to Treasury,
whichever is later. This includes those which demonstrate the award funds were used for
eligible purposes in accordance with the ARPA, Treasury’s regulations implementing
those sections, and Treasury’s guidance on eligible uses of funds.
9.2. What reporting will be required, and when will the first report be due?
Recipients will be required to submit an interim report, quarterly project and expenditure
reports, and annual recovery plan performance reports as specified below, regarding their
utilization of Coronavirus State and Local Fiscal Recovery Funds.
Interim reports: States (defined to include the District of Columbia), territories,
metropolitan cities, counties, and Tribal governments will be required to submit one
interim report. The interim report will include a recipient’s expenditures by category at
the summary level and for states, information related to distributions to nonentitlement
units of local government must also be included in the interim report. The interim report
will cover activity from the date of award to July 31, 2021 and must be submitted to
Treasury by August 31, 2021. Nonentitlement units of local government are not required
to submit an interim report.
AS OF MAY 27, 2021
18
Quarterly Project and Expenditure reports: State (defined to include the District of
Columbia), territorial, metropolitan city, county, and Tribal governments will be required
to submit quarterly project and expenditure reports. This report will include financial
data, information on contracts and subawards over $50,000, types of projects funded, and
other information regarding a recipient’s utilization of award funds. Reports will be
required quarterly with the exception of nonentitlement units, which will report annually.
An interim report is due on August 31, 2021. The reports will include the same general
data as those submitted by recipients of the Coronavirus Relief Fund, with some
modifications to expenditure categories and the addition of data elements related to
specific eligible uses. The initial quarterly Project and Expenditure report will cover two
calendar quarters from the date of award to September 30, 2021 and must be submitted to
Treasury by October 31, 2021. The subsequent quarterly reports will cover one calendar
quarter and must be submitted to Treasury within 30 days after the end of each calendar
quarter.
Nonentitlement units of local government will be required to submit the project and
expenditure report annually. The initial annual Project and Expenditure report for
nonentitlement units of local government will cover activity from the date of award to
September 30, 2021 and must be submitted to Treasury by October 31, 2021. The
subsequent annual reports must be submitted to Treasury by October 31 each year.
Recovery Plan Performance reports: States (defined to include the District of Columbia),
territories, metropolitan cities, and counties with a population that exceeds 250,000
residents will also be required to submit an annual recovery plan performance report to
Treasury. This report will include descriptions of the projects funded and information on
the performance indicators and objectives of each award, helping local residents
understand how their governments are using the substantial resources provided by
Coronavirus State and Local Fiscal Recovery Funds program. The initial recovery plan
performance report will cover activity from date of award to July 31, 2021 and must be
submitted to Treasury by August 31, 2021. Thereafter, the recovery plan performance
reports will cover a 12-month period and recipients will be required to submit the report
to Treasury within 30 days after the end of the 12-month period. The second Recovery
Plan Performance report will cover the period from July 1, 2021 to June 30, 2022 and
must be submitted to Treasury by July 31, 2022. Each annual recovery plan performance
report must be posted on the public-facing website of the recipient. Local governments
with fewer than 250,000 residents, Tribal governments, and nonentitlement units of local
government are not required to develop a Recovery Plan Performance report.
Treasury will provide further guidance and instructions on the reporting requirements for
program at a later date.
9.3. What provisions of the Uniform Guidance for grants apply to these funds? Will the
Single Audit requirements apply?
Most of the provisions of the Uniform Guidance (2 CFR Part 200) apply to this program,
including the Cost Principles and Single Audit Act requirements. Recipients should refer
AS OF MAY 27, 2021
19
to the Assistance Listing for detail on the specific provisions of the Uniform Guidance
that do not apply to this program. The Assistance Listing will be available on
beta.SAM.gov.
10. Miscellaneous
10.1. May governments retain assets purchased with Fiscal Recovery Funds? If so, what
rules apply to the proceeds of disposition or sale of such assets?
Yes, if the purchase of the asset was consistent with the limitations on the eligible use of
funds. If such assets are disposed of prior to December 31, 2024, the proceeds would be
subject to the restrictions on the eligible use of payments.
10.2. Can recipients use funds for administrative purposes?
Recipients may use funds to cover the portion of payroll and benefits of employees
corresponding to time spent on administrative work necessary due to the COVID–19
public health emergency and its negative economic impacts. This includes, but is not
limited to, costs related to disbursing payments of Fiscal Recovery Funds and managing
new grant programs established using Fiscal Recovery Funds.
10.3. Are recipients required to remit interest earned on CSFRF/CLFRF payments made
by Treasury? [5/27]
No. CSFRF/CLFRF payments made by Treasury to states, territories, and the District of
Columbia are not subject to the requirement of the Cash Management Improvement Act
and Treasury’s implementing regulations at 31 CFR part 205 to remit interest to
Treasury. CSFRF/CLFRF payments made by Treasury to local governments and Tribes
are not subject to the requirement of 2 CFR 200.305(b)(8)–(9) to maintain balances in an
interest-bearing account and remit payments to Treasury.
10.4. Is there a deadline to apply for funds? [5/27]
The Interim Final Rule requires that costs be incurred by December 31, 2024. Eligible
recipients are encouraged to apply as soon as possible. For recipients other than Tribal
governments, there is not a specific application deadline.
Tribal governments do have deadlines to complete the application process and should
visit www.treasury.gov/SLFRPTribal for guidance on applicable deadlines.
11. Operations
11.1. How do I know if my entity is eligible?
AS OF MAY 27, 2021
20
The Coronavirus State and Local Fiscal Recovery Funds American Rescue Plan Act of
2021 set forth the jurisdictions eligible to receive funds under the program, which are:
• States and the District of Columbia
• Territories
• Tribal governments
• Counties
• Metropolitan cities (typically, but not always, those with populations over 50,000)
• Non-entitlement units of local government, or smaller local governments
(typically, but not always, those with populations under 50,000)
11.2. How does an eligible entity request payment?
Eligible entities (other than non-entitlement units) must submit their information to the
Treasury Submission Portal. Please visit the Coronavirus State and Local Fiscal
Recovery Fund website for more information on the submission process.
11.3. I cannot log into the Treasury Submission Portal or am having trouble navigating
it. Who can help me?
If you have questions about the Treasury Submission Portal or for technical support,
please email covidreliefitsupport@treasury.gov.
11.4. What do I need to do to receive my payment?
All eligible payees are required to have a DUNS Number previously issued by Dun &
Bradstreet (https://www.dnb.com/).
All eligible payees are also required to have an active registration with the System for
Award Management (SAM) (https://www.sam.gov).
And eligible payees must have a bank account enabled for Automated Clearing House
(ACH) direct deposit. Payees with a Wire account are encouraged to provide that
information as well.
More information on these and all program pre-submission requirements can be found on
the Coronavirus State and Local Fiscal Recovery Fund website.
11.5. Why is Treasury employing id.me for the Treasury Submission Portal?
ID.me is a trusted technology partner to multiple government agencies and healthcare
providers. It provides secure digital identity verification to those government agencies
and healthcare providers to make sure you're you – and not someone pretending to be you
– when you request access to online services. All personally identifiable information
provided to ID.me is encrypted and disclosed only with the express consent of the user.
Please refer to ID.me Contact Support for assistance with your ID.me account. Their
support website is https://help.id.me.
AS OF MAY 27, 2021
21
11.6. Why is an entity not on the list of eligible entities in Treasury Submission Portal?
The ARP statute lays out which governments are eligible for payments. The list of
entities within the Treasury Submission Portal includes entities eligible to receive a direct
payment of funds from Treasury, which include states (defined to include the District of
Columbia), territories, Tribal governments, counties, and metropolitan cities.
Eligible non-entitlement units of local government will receive a distribution of funds
from their respective state government and should not submit information to the Treasury
Submission Portal.
If you believe an entity has been mistakenly left off the eligible entity list, please email
SLFRP@treasury.gov.
11.7. What is an Authorized Representative?
An Authorized Representative is an individual with legal authority to bind the
government entity (e.g., the Chief Executive Officer of the government entity). An
Authorized Representative must sign the Acceptance of Award terms for it to be valid.
11.8. How does a Tribal government determine their allocation?
Tribal governments will receive information about their allocation when the submission
to the Treasury Submission Portal is confirmed to be complete and accurate.
11.9. How do I know the status of my request for funds (submission)?
Entities can check the status of their submission at any time by logging into Treasury
Submission Portal.
11.10. My Treasury Submission Portal submission requires additional
information/correction. What is the process for that?
If your Authorized Representative has not yet signed the award terms, you can edit your
submission with in the into Treasury Submission Portal. If your Authorized
Representative has signed the award terms, please email SLFRP@treasury.gov to request
assistance with updating your information.
11.11. My request for funds was denied. How do I find out why it was denied or appeal the
decision?
Please check to ensure that no one else from your entity has applied, causing a duplicate
submission. Please also review the list of all eligible entities on the Coronavirus State
and Local Fiscal Recovery Fund website.
AS OF MAY 27, 2021
22
If you still have questions regarding your submission, please email
SLFRP@treasury.gov.
11.12. When will entities get their money?
Before Treasury is able to execute a payment, a representative of an eligible government
must submit the government’s information for verification through the Treasury
Submission Portal. The verification process takes approximately four business days. If
any errors are identified, the designated point of contact for the government will be
contacted via email to correct the information before the payment can proceed. Once
verification is complete, the designated point of contact of the eligible government will
receive an email notifying them that their submission has been verified. Payments are
generally scheduled for the next business day after this verification email, though funds
may not be available immediately due to processing time of their financial institution.
11.13. How does a local government entity provide Treasury with a notice of transfer of
funds to its State?
For more information on how to provide Treasury with notice of transfer to a state, please
email SLRedirectFunds@treasury.gov.
__________________________________________________
__________________________________________________
OMB Approved No. 1505-0271
Expiration Date: November 30, 2021
U.S. DEPARTMENT OF THE TREASURY
CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS
Recipient name and address: DUNS Number: [Recipient to provide]
Taxpayer Identification Number: [Recipient to
provide]
Assistance Listing Number: 21.019
[Recipient to provide]
Sections 602(b) and 603(b) of the Social Security Act (the Act) as added by section 9901 of the
American Rescue Plan Act, Pub. L. No. 117-2 (March 11, 2021) authorize the Department of the
Treasury (Treasury) to make payments to certain recipients from the Coronavirus State Fiscal
Recovery Fund and the Coronavirus Local Fiscal Recovery Fund.
Recipient hereby agrees, as a condition to receiving such payment from Treasury, to the terms
attached hereto.
Recipient:
Authorized Representative:
Title:
Date signed:
U.S. Department of the Treasury:
Authorized Representative:
Title:
Date:
PAPERWORK REDUCTION ACT NOTICE
The information collected will be used for the U.S. Government to process requests for support. The
estimated burden associated with this collection of information is 15 minutes per response. Comments
concerning the accuracy of this burden estimate and suggestions for reducing this burden should be
directed to the Office of Privacy, Transparency and Records, Department of the Treasury, 1500
Pennsylvania Ave., N.W., Washington, D.C. 20220. DO NOT send the form to this address. An agency
may not conduct or sponsor, and a person is not required to respond to, a collection of information unless
it displays a valid control number assigned by OMB.
ATTACHMENT 3
U.S. DEPARTMENT OF THE TREASURY
CORONAVIRUS LOCAL FISCAL RECOVERY FUND
AWARD TERMS AND CONDITIONS
Use of Funds.
a. Recipient understands and agrees that the funds disbursed under this award may only be
used in compliance with section 603(c) of the Social Security Act (the Act), Treasury’s
regulations implementing that section, and guidance issued by Treasury regarding the
foregoing.
b. Recipient will determine prior to engaging in any project using this assistance that it has
the institutional, managerial, and financial capability to ensure proper planning,
management, and completion of such project.
Period of Performance. The period of performance for this award begins on the date hereof and
ends on December 31, 2026. As set forth in Treasury’s implementing regulations, Recipient
may use award funds to cover eligible costs incurred during the period that begins on March
3, 2021, and ends on December 31, 2024.
Reporting. Recipient agrees to comply with any reporting obligations established by Treasury
as they relate to this award.
Maintenance of and Access to Records
a. Recipient shall maintain records and financial documents sufficient to evidence compliance
with section 603(c) of the Act, Treasury’s regulations implementing that section, and
guidance issued by Treasury regarding the foregoing.
b. The Treasury Office of Inspector General and the Government Accountability Office, or
their authorized representatives, shall have the right of access to records (electronic and
otherwise) of Recipient in order to conduct audits or other investigations.
c. Records shall be maintained by Recipient for a period of five (5) years after all funds have
been expended or returned to Treasury, whichever is later.
Pre-award Costs. Pre-award costs, as defined in 2 C.F.R. § 200.458, may not be paid with
funding from this award.
Administrative Costs. Recipient may use funds provided under this award to cover both direct
and indirect costs.
Cost Sharing. Cost sharing or matching funds are not required to be provided by Recipient.
Conflicts of Interest. Recipient understands and agrees it must maintain a conflict of
interest policy consistent with 2 C.F.R. § 200.318(c) and that such conflict of interest policy
is applicable to each activity funded under this award. Recipient and subrecipients must
disclose in writing to Treasury or the pass-through entity, as appropriate, any potential
conflict of interest affecting the awarded funds in accordance with 2 C.F.R. § 200.112.
2
Compliance with Applicable Law and Regulations.
a. Recipient agrees to comply with the requirements of section 603 of the Act, regulations
adopted by Treasury pursuant to section 603(f) of the Act, and guidance issued by Treasury
regarding the foregoing. Recipient also agrees to comply with all other applicable federal
statutes, regulations, and executive orders, and Recipient shall provide for such compliance
by other parties in any agreements it enters into with other parties relating to this award.
b. Federal regulations applicable to this award include, without limitation, the following:
i. Uniform Administrative Requirements, Cost Principles, and Audit Requirements for
Federal Awards, 2 C.F.R. Part 200, other than such provisions as Treasury may
determine are inapplicable to this Award and subject to such exceptions as may be
otherwise provided by Treasury. Subpart F – Audit Requirements of the Uniform
Guidance, implementing the Single Audit Act, shall apply to this award.
ii. Universal Identifier and System for Award Management (SAM), 2 C.F.R. Part 25,
pursuant to which the award term set forth in Appendix A to 2 C.F.R. Part 25 is
hereby incorporated by reference.
iii. Reporting Subaward and Executive Compensation Information, 2 C.F.R. Part 170,
pursuant to which the award term set forth in Appendix A to 2 C.F.R. Part 170 is
hereby incorporated by reference.
iv. OMB Guidelines to Agencies on Governmentwide Debarment and Suspension
(Nonprocurement), 2 C.F.R. Part 180, including the requirement to include a term or
condition in all lower tier covered transactions (contracts and subcontracts described
in 2 C.F.R. Part 180, subpart B) that the award is subject to 2 C.F.R. Part 180 and
Treasury’s implementing regulation at 31 C.F.R. Part 19.
v. Recipient Integrity and Performance Matters, pursuant to which the award term set
forth in 2 C.F.R. Part 200, Appendix XII to Part 200 is hereby incorporated by
reference.
vi. Governmentwide Requirements for Drug-Free Workplace, 31 C.F.R. Part 20.
vii. New Restrictions on Lobbying, 31 C.F.R. Part 21.
viii. Uniform Relocation Assistance and Real Property Acquisitions Act of 1970 (42 U.S.C.
§§ 4601-4655) and implementing regulations.
ix. Generally applicable federal environmental laws and regulations.
c. Statutes and regulations prohibiting discrimination applicable to this award include,
without limitation, the following:
i. Title VI of the Civil Rights Act of 1964 (42 U.S.C. §§ 2000d et seq.) and Treasury’s
implementing regulations at 31 C.F.R. Part 22, which prohibit discrimination on the
basis of race, color, or national origin under programs or activities receiving federal
financial assistance;
3
ii. The Fair Housing Act, Title VIII of the Ci vil Rights Act of 19 68 (42 U.S.C. §§ 3601
et seq.), which prohibits discrimination in housing on the basis of race, color,
religion, national origin, sex, familial status, or disability;
iii. Section 504 of the Rehabilitation Act of 1973, as amended (29 U.S.C. § 794), which
prohibits discrimination on the basis of disability under any program or activity
receiving federal financial assistance;
iv. The Age Discrimination Act of 1975, as amended (42 U.S.C. §§ 6101 et seq.), and
Treasury’s implementing regulations at 31 C.F.R. Part 23, which prohibit
discrimination on the basis of age in programs or activities receiving federal
financial assistance; and
v. Title II of the Americans wi th Disabilities Act of 1990, as amended (42 U.S.C. §§
12101 et seq.), which prohibits discrimination on the basis of disability under
programs, activities, and services provided or made available by s tate and local
governments or instrumentalities or agencies thereto.
Remedial Actions. In the event of Recipient’s noncompliance with section 603 of the Act, other
applicable laws, Treasury’s implementing regulations, guidance, or any reporting or other
program requirements, Treasury may impose additional conditions on the receipt of a
subsequent tranche of future award funds, if any, or take other available remedies as set
forth in 2 C.F.R. § 200.339. In the case of a violation of section 603(c) of the Act regarding the
use of funds, previous payments shall be subject to recoupment as provided in section 603(e)
of the Act.
Hatch Act. Recipient agrees to comply, as applicable, with requirements of the Hatch Act (5
U.S.C. §§ 1501-1508 and 7324-7328), which limit certain political activities of State or local
government employees whose principal employment is in connection with an activity
financed in whole or in part by this federal assistance.
False Statements. Recipient understands that making false statements or claims in connection
with this award is a violation of federal law and may result in criminal, civil, or administrative
sanctions, including fines, imprisonment, civil damages and penalties, debarment from
participating in federal awards or contracts, and/or any other remedy available by law.
Publications. Any publications produced with funds from this award must display the
following language: “This project [is being] [was] supported, in whole or in part, by federal
award number [enter project FAIN] awarded to [name of Recipient] by the U.S. Department
of the Treasury.”
Debts Owed the Federal Government.
a. Any funds paid to Recipient (1) in excess of the amount to which Recipient is finally
determined to be authorized to retain under the terms of this award; (2) that are
determined by the Treasury Office of Inspector General to have been misused; or (3)
that are determined by Treasury to be subject to a repayment obligation pursuant to
section 603(e) of the Act and have not been repaid by Recipient shall constitute a debt
to the federal government.
b. Any debts determined to be owed the federal government must be paid promptly by
4
Recipient. A debt is delinquent if it has not been paid by the date specified in Treasury’s
initial written demand for payment, unless other satisfactory arrangements have been
made or if the Recipient knowingly or improperly retains funds that are a debt as
defined in paragraph 14(a). Treasury will take any actions available to it to collect such
a debt.
Disclaimer.
a. The United States expressly disclaims any and all responsibility or liability to Recipient
or third persons for the actions of Recipient or third persons resulting in death, bodily
injury, property damages, or any other losses resulting in any way from the
performance of this award or any other losses resulting in any way from the
performance of this award or any contract, or subcontract under this award.
b. The acceptance of this award by Recipient does not in any way establish an agency
relationship between the United States and Recipient.
Protections for Whistleblowers.
a. In accordance with 41 U.S.C. § 4712, Recipient may not discharge, demote, or otherwise
discriminate against an employee in reprisal for disclosing to any of the list of persons or
entities provided below, information that the employee reasonably believes is evidence of
gross mismanagement of a federal contract or grant, a gross waste of federal funds, an
abuse of authority relating to a federal contract or grant, a substantial and specific danger
to public health or safety, or a violation of law, rule, or regulation related to a federal
contract (including the competition for or negotiation of a contract) or grant.
The list of persons and entities referenced in the paragraph above includes the following:
i. A member of Congress or a representative of a committee of Congress;
ii. An Inspector General;
iii. The Government Accountability Office;
iv. A Treasury employee responsible for contract or grant oversight or management;
v. An authorized official of the Department of Justice or other law enforcement
agency;
vi. A court or grand jury; or
vii. A management official or other employee of Recipient, contractor, or
subcontractor who has the responsibility to investigate, discover, or address
misconduct.
Recipient shall inform its employees in writing of the rights and remedies provided under
this section, in the predominant native language of the workforce.
b.
c.
Increasing Seat Belt Use in the United States. Pursuant to Executive Order 13043, 62 FR
19217 (Apr. 18, 1997), Recipient should encourage its contractors to adopt and enforce on-the-
job seat belt policies and programs for their employees when operating company-owned,
rented or personally owned vehicles.
Reducing Text Messaging While Driving. Pursuant to Executive Order 13513, 74 FR 51225
(Oct. 6, 2009), Recipient should encourage its employees, subrecipients, and contractors to
adopt and enforce policies that ban text messaging while driving, and Recipient should
establish workplace safety policies to decrease accidents caused by distracted drivers.
5
Emergency Rent Assistance Program Overview
May 19, 2021
Purpose: To help individuals who are or were unemployed due to COVID 19 restrictions pay back rent, and
three future rent payments, and back utility payments, plus three future utility payments; prioritizing individuals
earning 50% of AMI or below.
Amount: $10,740,667.90
Timeline to distribute: Now through September 2022
Partners: Neighbor to Neighbor, City of Fort Collins Utilities, City of Loveland Utilities, Poudre Valley REA, and
Xcel Energy
Background: COVID 19 and the pandemic’s public health precautions and restrictions affected millions of
people and their jobs.
In Larimer County, 5.8% of our population is unemployed (about 13,000 people; March 2021 data).
The Federal Government has been releasing billions of dollars to communities to offset some of the COVID 19
financial effects of the most impacted individuals and families.
One of the programs is the Emergency Rent Assistance Programs, or ERAP for short.
Larimer County applied for funding and received $10.7M earlier this year. We are partnering with Neighbor to
Neighbor to manage the application process using eligibility criteria that was shared by the federal government.
The funds can be used to pay back rent and back utilities, as well as three current and future months’ worth of
expenses. Individuals making 50% of AMI or less are prioritized (approximately $43,600 a year for a family of
four).
By paying back utility providers and landlords, renters can stay housed, can keep their water, heat, and air
conditioning on, and can improve their credit score. The assistance provides landlords and utility providers with
critical funds that they would not have had otherwise.
The government is requiring several data points for ongoing reporting. We will provide four quarterly reports a
year and monthly reports. In addition, Larimer County is requesting other information that will help us
understand who is receiving funds, their demographics, and how the funds have impacted both renters and
landlords.
LARIMER COUNTY | BOARD OF COUNTY COMMISSIONERS
200 West Oak Street, P.O. Box 1190, Fort Collins, Colorado 80522-1190, 970.498.7010, Larimer.org
ATTACHMENT 4
2
Quarter 1 2021 Report Highlights
Quarterly reports include information such as what kind of assistance did people receive, how much per
payment, and demographic information. Larimer County did not distribute any ERAP funds January-March
2021 as the funds did not arrive until April.
• 1,211 people applied for ERA program assistance
• $58,543.12 was spent on grant administrative work (N2N)
• $854,413.65 of administrative funds remain
April 2021 Monthly Report
Monthly reports will include total assistance paid out by zip codes and number of people.
In the future, we will map the zip codes and assistance amounts.
Zip
Code/Community
# of ERAP
recipients
$ of ERAP assistance
80513/Berthoud 6 $18,716.00
80515/Drake 1 $10,500.00
80517/EP 5 $20,009.86
80521/FC 27 $130,808.21
80524/FC 47 $152,706.78
80525/FC 50 $229,249.50
80526/FC 49 $249,327.08
80528/FC 30 $148,016.02
80534/Johnstown 7 $34,908.69
80535/Laporte 5 $11,122.71
80537/LVLD 36 $186,006.06
80538/LVLD 35 $173,330.65
80539/LVLD 1 $4,050.00
80547/Timnath 1 $8,200.00
80549/Wellington 3 $12,455.00
80550/Windsor 2 $12,100.00
TOTAL 305 $1,400,506.56
• Payments from $500 - $11,000, mostly in the $2,500-4,000 range
• 87 applicants were denied or withdrew from the process (client inactivity, no follow up, insufficient
documents)
• The average age of recipients is 39.5 years old
• 165 reported as Non-Hispanic or Latino (54%)
• 92 reported as Hispanic or Latino (30%)
• 48 refused to answer (16%)
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How is the assistance program working?
From a landlord:
Neighbor2Neighbor has been a tremendous help during these hard times. We, as landlords, only own the one
income property. Over the last year we had done everything possible to allow our tenants to stay in the house.
We immediately eliminated any late fees, cut their rent significantly and allowed them to pay sometimes a
month or more late. They were still struggling. It was very difficult to watch, as we know them to be great
people who want to do the absolute best for their children.
With all the money we had lost from the rental during the year, we were at the end of our rope. We had nothing
more that we could provide for them. That is when I found the rental assistance program provided by N2N. I
suggested it to our tenants who were very excited at the prospect of getting back on their feet. From the
beginning, the process was easy, quick and the customer service was second to none.
The rental assistance provided for our tenants allowed them to be able to pay their mortgage for enough time
to get back on their feet and has given us the ability to keep them and their children housed. It is such a
wonderful program and so beneficial for the whole community. We appreciate all that N2N has been able to
offer.
From a renter:
I wanted to reach out to let you know just how amazing it was to work with one of the gals within your
organization.
I had the pleasure of working with Mistie, who, went above and beyond in every facet of this process. I can't
quite tell you just how much it meant to me to feel as though I was being heard that my prayers were being
answered, and that we were going to make it out of this alive.
Please find more people like her so that those who seek out the services you offer, feel the love that I felt the
ENTIRE TIME working with her. She and I crossed paths at one of the most embarrassing times in my life, and
somehow, that wasn't something she cared to focus on. she never talked down to me, never once was
belittling, and always followed through with any commitments she made. Working with someone who
possesses not just one, but all of the qualities above seems nearly impossible these days, and I feel credit
should always be given where credit is due, so please know, you struck gold with that one!
Thank you all for the work you are doing!
MEMORANDUM
DATE:May 28, 2021
TO:
THRU: Darin Atteberry, City Manager
Travis Storin, Chief Financial Officer
FROM:SeonAh Kendall, City Recovery Manager
RE: Work Session Summary –May 25, 2021, re: City Recovery Plan
This memorandum provides a summary of the discussion related to the May 25, 2021, Work Session
Item –City Recovery Plan.
Mayor and Councilmembers Present: Mayor Arnt, Mayor Pro Tem Gorgol, and Councilmembers
Gutowsky, Pignataro, Canonico, Peel and Ohlson
Presenting Staff:Travis Storin and SeonAh Kendall
DIRECTION SOUGHT:
Does Council agree with the recommended allocation of the 15/85 split ($4.2M 2021 appropriation) of
the City’s American Rescue Plan funding to address current needs while developing the City Recovery
Plan?
DISCUSSION SUMMARY:
Staff presented a highlevel recap of the City’s CARES Coronavirus Relief Fund, a review of the ne w
American Rescue Plan Act’s State and Local Fiscal Recovery Fund (“ARPA”) and previewed the City’s
Recovery Plan and timeline.
Key Discussion Points Included:
x Supported an iterative approach of making 15% of the ARPA funds available to meet current and
shortterm needs due to the uncertainty of the pandemic impacts. Areas of caution are:
o Not to limit resources needed to the 15%, if more is needed.
o Not to constrain potential support programs as either response or recovery.
o Refrain from utilizing ARPA funds to offset budget constraints or shortfalls.
x Encouraged community connections and leveraging funding opportunities with partners such as
with Poudre School District, Larimer County, Neighbor to Neighbor and more.
x Suggested focus opportunities included, but are not limited to, housing and childcare, mental
health, rent and utility assistance, workforce development, women and historically
underrepresented community members.
x Underscored that there are still community members impacted by the pandemic.
ATTACHMENT 5
x Urged utilizing various outreach and engagement methods to make sure the entire community
is aware of resources and support.
x Discussion on whether resiliency planning would be better than recovery.
NEXT STEPS:
ARPA Funding Allocation:
1. Staff will bring forward an ordinance to appropriate the 15% ARPA.
a. 1
st reading is anticipated June 15, 2021, 2 nd reading on July 6, 2021.
b. Funds would be available approximately July 19, 2021.
2. Staff will continue to monitor ARPA Interim Final Rule for changes while developing a short
term needs assessment and application process.
City Recovery Plan
1. Begin public engagement process (June 2021) and begin development of the City Recovery
Plan.
2. Anticipate a Fall 2021 Council Work Session to review a draft plan.
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ORDINANCE NO. 079, 2021
OF THE COUNCIL OF THE CITY OF FORT COLLINS
MAKING A SUPPLEMENTAL APPROPRIATION OF A PORTION OF THE CITY’S
AMERICAN RESCUE PLAN ACT FUNDING FOR LOCAL FISCAL RECOVERY
RELATED TO RESPONSE TO AND RECOVERY FROM THE COVID-19 PANDEMIC
WHEREAS, in response to the public health emergency resulting from the spread of the
Novel Coronavirus 2019 (“COVID-19”), the City Manager proclaimed a local emergency on
March 13, 2020, and City Council extended such proclamation with its adoption of Resolution
2020-030; and
WHEREAS, on March 11, 2020, President Joseph R. Biden signed the American Rescue
Plan Act into law (“ARPA”), which established the Coronavirus Local Fiscal Recovery Fund
intended to provide support to local governments in responding to the impact of COVID-19 on
their communities, residents, and businesses; and
WHEREAS, the U.S. Treasury Department has provided regulatory guidance on how
ARPA funds may be used, which includes: supporting public health expenditures; addressing
negative economic impacts; replacing lost public sector revenue; providing premium pay for
essential workers; and investing in water, sewer and broadband infrastructure; and
WHEREAS, the City will be allocated a total amount of $28,118,971, of which the City
has received fifty percent or $14,059,485.50, with the remaining fifty percent anticipated to be
available in May 2022; and
WHEREAS, City staff presented background information about the proposed use of these
funds to City Council at a work session on May 25, 2021, including the appropriation of
$4,217,846, which is fifteen percent of the total amount allocated to the City, to address current
needs of the community consistent with the requirements of ARPA and applicable federal
regulations and to support public health expenditures; address negative economic impacts;
replace lost public sector revenue; provide premium pay for essential workers; and invest in
water, sewer and broadband infrastructure; and
WHEREAS, City staff has identified some current needs consistent with U.S. Treasury
guidance to include financial support and expenditures for workforce development; business
support for disadvantaged businesses; business navigation programs; supportive assistance to
those experiencing homelessness; utility, mortgage and rental assistance to those who do not
meet the income qualification requirements for assistance from Neighbor to Neighbor or other
available programs, and response and recovery expenses of the City and others in the Fort
Collins community; and
WHEREAS, this appropriation benefits the public health, safety and welfare of the
citizens of Fort Collins and serves the public purpose of responding to the immediate and short-
term community health, social wellbeing, and economic needs arising from the negative impacts
of the COVID-19 public health emergency; and
WHEREAS, Article V, Section 9, of the City Charter permits the City Council, upon
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recommendation of the City Manager, to make supplemental appropriations by ordinance at any
time during the fiscal year, provided that the total amount of such supplemental appropriations,
in combination with all previous appropriations for that fiscal year, does not exceed the current
estimate of actual and anticipated revenues and all other funds to be received during the fiscal
year; and
WHEREAS, the City Manager has recommended the appropriation described herein and
determined that this appropriation is available and previously unappropriated from the General
Fund and will not cause the total amount appropriated in the General Fund to exceed the current
estimate of actual and anticipated revenues and all other funds to be received in that fund during
this fiscal year.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
Section 1. That the City Council hereby makes and adopts the determinations and
findings contained in the recitals set forth above.
Section 2. That there is hereby appropriated from unanticipated grant revenue in the
General Fund the sum of FOUR MILLION TWO HUNDRED SEVENTEEN THOUSAND
EIGHT HUNDRED FORTY-SIX DOLLARS ($4,217,846) for expenditure from the General
Fund for supporting public health expenditures, addressing negative economic impacts, replace
lost public sector revenue, provide premium pay for essential workers and invest in water, sewer
and broadband infrastructure related to response to and recovery from the COVID-19 pandemic,
as described in this Ordinance.
Introduced, considered favorably on first reading, and ordered published this 15th day of
June, A.D. 2021, and to be presented for final passage on the 6th day of July, A.D. 2021.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
Passed and adopted on final reading on the 6th day of July, A.D. 2021.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk