HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 02/02/2021 - FIRST READING OF ORDINANCE NO. 024, 2021, APPROPRI Agenda Item 8
Item # 8 Page 1
AGENDA ITEM SUMMARY February 2, 2021
City Council
STAFF
Beth Rosen, Grants Compliance & Policy Manager
Ingrid Decker, Legal
SUBJECT
First Reading of Ordinance No. 024, 2021, Appropriating Unanticipated Revenue in the Community
Development Block Grant Fund for COVID-19 Response and Recovery.
EXECUTIVE SUMMARY
The purpose of this item is to appropriate unanticipated Community Development Block Grant (CDBG) funding
in the amount of $760,023 from the Department of Housing and Urban Development (HUD) for COVID-19
response and recovery.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
BACKGROUND / DISCUSSION
The Community Development Block Grant (CDBG) Entitlement Program provides annual grants on a formula
basis to eligible cities and counties to develop viable urban communities by providing decent housing and a
suitable living environment, and by expanding economic opportunities for low- and moderate- income persons.
Recipient communities develop their own programs and funding priorities. However, grantees must give
maximum feasible priority to activities which benefit low- and moderate-income persons.
On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law.
The CARES Act made available $5 billion in Community Development Block Grant Coronavirus (CDBG -CV)
funds. The City received initial funding of $649,203 in April 2020 and quickly deployed the funds to meet urgent
community needs benefiting low- and moderate-income persons. Those funds were appropriated by Council
on May 19, 2020, with Ordinance No. 065, 2020, and allocated to eligible public service projects as adopted by
Council with Resolution 2020-054 on June 2, 2020.
On September 11, 2020, the City received notification from HUD that it was receiving an additional allocation
of $760,023. These funds must be allocated to help prevent, prepare for, and respond to the COVID -19
pandemic. The City recovery team has prioritized the use of these fu nds for public service activities that
prevent at-risk populations from exposure to the virus and mitigate the economic impacts of the pandemic to
low-and moderate-income households.
City staff is currently assessing the remaining funding needs and revi ewing applications from eligible nonprofit
organizations. Funding requests will be scored according to established priorities and presented to the
Community Development Block Grant (CDBG) Commission for a final funding recommendation at its regular
meeting on February 10, 2021. This recommendation will be presented to Council for approval at its regular
meeting on March 2, 2021. This appropriation will allow for expedient deployment of the funds once a Council -
approved funding recommendation has been adopted.
Agenda Item 8
Item # 8 Page 2
CITY FINANCIAL IMPACTS
This will increase the City’s total CDBG-CV allocation for Coronavirus relief and recovery from $649,203 to
$1,409,226. These additional funds will assist in critical response and recovery efforts not funded by other
sources.
ATTACHMENTS
1. Award Letter (PDF)
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
WASHINGTON, DC 20410-7000
ASSISTANT SECRETARY FOR
COMMUNITY PLANNING AND DEVELOPMENT
www.hud.gov espanol.hud.gov
September 11, 2020
The Honorable Wade Troxell
Mayor of Fort Collins
P.O. Box 580
Fort Collins, CO 80522
Dear Mayor Troxell:
I am pleased to inform you of a special allocation to your jurisdiction of Community
Development Block Grant funds to be used to prevent, prepare for, and respond to the coronavirus
(COVID-19). This allocation was authorized by the Coronavirus Aid, Relief, and Economic
Security Act (CARES Act), Public Law 116-136, which was signed by President Trump on March
27, 2020, to respond to the growing effects of this historic public health crisis.
The CARES Act made available $5 billion in Community Development Block Grant
Coronavirus (CDBG-CV) funds. Of this amount, the Department immediately allocated $2 billion
on March 27, 2020, the same day President Trump signed the Act, based on the fiscal year 2020
CDBG formula; this constituted the first round of CDBG-CV funds. Next, $1 billion was required
by the Act to be allocated to States and insular areas within 45 days of enactment of the Act; HUD
accomplished this on May 11, 2020, and this constituted the second round of CDBG-CV funds.
Finally, the remaining $2 billion in CDBG-CV funds was required by the Act to be allocated to
states and local governments at the discretion of the Secretary on a rolling basis; HUD
accomplished this on September 11, 2020, and this constituted the third round of CDBG-CV funds.
Additionally, up to $10 million will be set aside for technical assistance.
Accordingly, this letter informs you that your jurisdiction’s allocation for the third round is
$760,023. Your cumulative amount for all allocation rounds is $1,409,226.
The CARES Act adds additional flexibility for both the CDBG-CV grant and, in some cases,
for the annual FY2019 and FY2020 CDBG grants in these unprecedented times. The public
comment period is reduced to not less than 5 days, grantees may use virtual public hearings when
necessary for public health reasons, the public services cap is suspended during the emergency, and
States and local governments may reimburse costs of eligible activities incurred for pandemic
response regardless of the date.
In addition, the CARES Act authorizes the HUD Secretary to grant waivers and alternative
requirements of statutes and regulations the HUD Secretary administers in connection with the use
of CDBG-CV funds and fiscal year 2019 and 2020 CDBG funds (except for requirements related to
fair housing, nondiscrimination, labor standards, and the environment). Waivers and alternative
requirements can be granted when necessary to expedite and facilitate the use of funds to prevent,
ATTACHMENT 1
prepare for, and respond to coronavirus.
The CDBG CARES Act Federal Register Notice (FR-6218-N-01) was released on August
10, 2020. The notice describes the allocations and grant procedures applicable to the CDBG-CV
grants. It also describes the program flexibilities, waivers, and alternative requirements that apply to
the CDBG-CV grants as well as the fiscal year 2019 and 2020 CDBG grants. As further such
flexibilities become available, they will be posted on HUD’s website and distributed to grantees.
The Department will also support grantees with technical assistance.
As you develop your plan for the use of these grant funds, we encourage you to consider
approaches that prioritize the unique needs of low- and moderate–income persons and the
development of partnerships between all levels of government and the private for-profit and non-
profit sectors. You should coordinate with state and local health authorities before undertaking any
activity to support state or local pandemic response. CDBG-CV grants will be subject to oversight,
reporting, and the requirement that each grantee have adequate procedures to prevent the
duplication of benefits (DOB). HUD will provide guidance and technical assistance on DOB, the
prevention of fraud, waste, and abuse, and on documenting the impact of this program for
beneficiaries.
Reminder, all CPD Grantees must ensure they maintain active Dun and Bradstreet Numbering
System (DUNS) numbers in the System for Award Management (SAM) system. Entities must have
an active and unexpired DUNS before execution of grant agreements to avoid delays in the
obligation of funds- which will delay your ability to drawdown funds in the Integrated
Disbursement & Information System (IDIS). Grantees are required to maintain an active SAMs
registration by re-activating their DUNS number annually in the SAM system for the entire
drawdown period of their grants. DUNS numbers can be registered and renewed each year at the
following website: https://www.sam.gov/SAM/.
The Office of Community Planning and Development (CPD) is looking forward to working
with you to successfully meet the urgent and complex challenges faced by our communities. If you
or any member of your staff has questions, please contact your local CPD Field Office Director or
CPDQuestionsAnswered@hud.gov.
Sincerely,
John Gibbs
Acting Assistant Secretary
for Community Planning and Development
U.S. Department of Housing and Urban Development
-1-
ORDINANCE NO. 024, 2021
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROPRIATING UNANTICIPATED REVENUE IN THE
COMMUNITY DEVELOPMENT BLOCK GRANT FUND
FOR COVID-19 RESPONSE AND RECOVERY
WHEREAS, the City receives annual grants of funds from the federal Department of
Housing and Urban Development (“HUD”) Community Development Block Grant (“CDBG”)
entitlement program to help support affordable housing and other programs to benefit low- and
moderate-income persons; and
WHEREAS, on March 27, 2020, the federal Coronavirus Aid, Relief, and Economic
Security Act (“CARES Act”) was signed into law, making available $5 billion in Community
Development Block Grant Coronavirus (“CDBG-CV”) funds; and
WHEREAS, the City received $649,203 of CDBG-CV funds from HUD, which the City
Council appropriated on May 19, 2020, pursuant to Ordinance No. 065, 2020, and allocated to
eligible public service projects as specified in Resolution 2020-054, approved by the Council on
June 2, 2020; and
WHEREAS, HUD is now allocating to the City an additional $760,023 of CDBG-CV
funds that must be spent to help prevent, prepare for, and respond to the impacts of the COVID -
19 pandemic; and
WHEREAS, this appropriation benefits public health, safety and welfare of the citizens
of Fort Collins and serves the public purpose of supporting timely response to and recovery from
the impacts of the COVID-19 pandemic; and
WHEREAS, Article V, Section 9 of the City Charter permits the City Council, upon
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 to be received during the fiscal year; and
WHEREAS, Article V, Section 11, of the City Charter provides that federal grant
appropriations shall not lapse if unexpended at the end of the budget year until the expiration of
the federal grant; and
WHEREAS, the City Manager has recommended the appropriation described herein and
determined that this appropriation is available and previously unappropriated from the
Community Development Block Grant Fund and will not cause the total amount appropriated in
the Community Development Block Grant Fund to exceed the current estimate of actual and
anticipated revenues 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:
-2-
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 for expenditure from unanticipated grant
revenue in the Community Development Block Grant Fund, the sum of SEVEN HUNDRED
SIXTY THOUSAND TWENTY-THREE DOLLARS ($760,023), to be used towards COVID-19
response and recovery.
Introduced, considered favorably on first reading, and ordered published this 2nd day of
February, A.D. 2021, and to be presented for final passage on the 16th day of February, A.D.
2021.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
Passed and adopted on final reading on the 16th day of February, A.D. 2021.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk