HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 06/21/2022 - RESOLUTION 2022-062 AMENDING THE RECOMMENDED FUNDI Agenda Item 15
Item # 15 Page 1
AGENDA ITEM SUMMARY June 21, 2022
City Council
STAFF
Beth Rosen, Grants Compliance & Policy Manager
Ingrid Decker, Legal
SUBJECT
Resolution 2022-062 Amending the Recommended Funding Allocations and Uses for Programs and Projects
Receiving COVID-19 Response and Recovery Funding from the Federal Community Development Block Grant
Program.
EXECUTIVE SUMMARY
The purpose of this item is to increase the Community Development Block Grant Coronavirus (CDBG-CV)
funding allocation to Neighbor to Neighbor and to expand the eligible uses to include housing stabilization
services and mortgage assistance for low-income households.
STAFF RECOMMENDATION
Staff recommends adoption of the Resolution.
BACKGROUND / DISCUSSION
On March 2, 2021, Council approved the projects and activities recommended for funding with the $760,023
Community Development Block Grant Coronavirus (CDBG-CV) funds received from US Department of
Housing and Urban Development (HUD). The funds were prioritized for the following eligible uses:
1. Services in direct response to COVID-19 that mitigate the economic impact of the pandemic to Low-to
Moderate-Income (LMI) residents and prevent them from becoming homeless because of the virus.
2. Services that support at-home sheltering for at-risk persons and vulnerable populations.
3. Emergency shelter and supports for persons experiencing homelessness (PEH).
The funding allocations and unexpended balances are as follows:
CDBG-CV Projects and Programs Funding
Recommendation
Unexpended
Balance
City of Fort Collins - Emergency Shelter Programs* $196,080 $7,683
Homeward Alliance - COVID Isolation, Quarantine
and Recovery Site & Inclement Weather Shelter
$54,750 $0
Neighbor to Neighbor - Emergency Rent Assistance** $400,000 $400,000
Catholic Charities - The Mission Shelter Costs $60,297 $0
Family Housing Network: Day Center Operations
Costs - COVID safe
$23,896 $0
Meals on Wheels - Meal Delivery Programs $25,000 $0
Total $760,023 $407,683
Agenda Item 15
Item # 15 Page 2
*City of Fort Collins - Emergency Shelter Programs
With the assistance of 2020 CARES funding and 2021 CDBG-CV funds, the City was able to provide financial
support for the operations of an expanded overnight shelter at 1301 Blue Spruce and support the non-
congregate shelter program, which provided hotel rooms for PEH who were unable to stay in the emergency
shelters due to age and health conditions which put them at greater risk of severe disease if exposed to the
coronavirus. Both programs completed in the Spring of 2021 with an unexpended balance of $7,683.
The City is no longer in the lead role of contracting for shelter services related to the pandemic. The remaining
funds need to be re-directed to an eligible COVID response and recovery activity.
**Neighbor to Neighbor - Emergency Rent Assistance
After receiving notification of the CDBG Commission’s support of the proposed funding distribution, Neighbor
to Neighbor notified the City that it had been coordinating with Larimer County on the distribution of $9.6 million
in Emergency Rental Assistance (ERA) funds from the U.S. Department of the Treasury. In March 2021, it
was unclear how the funds would be distributed across the county and what gaps would remain. The Policy
Recovery Team advised retaining this allocation for emergency rental assistance and re-evaluating as
additional information emerged regarding additional stimulus dollars and remaining needs.
At the time of the original recommendation, staff advised Council that it would develop a new application and
establish a process that allowed for equitable re-allocation if the funds were not expended, and other urgent
needs were identified. Social Sustainability staff delayed contracting these funds with Neighbor to Neighbor
until after assessing the remaining COVID-related need for emergency rent assistance once all Treasury and
State funds had been deployed. Neighbor to Neighbor is reporting that the State funds are sufficient to address
the COVID-related need for low-income renters and that the most urgent need is for low-income homeowners
who are at risk of losing their housing because of the pandemic.
On May 9, 2022, Neighbor to Neighbor submitted a written request to direct its allocated CDBG-CV funds to
mortgage assistance and credit repair services for low-income homeowners. (Attachment 1) This distribution
of funds would still meet the HUD requirement of demonstrating a COVID nexus, as well as meeting the
original Priority as presented to Council: Services in direct response to COVID-19 that mitigate the economic
impact of the pandemic to Low-to Moderate-Income (LMI) residents and prevent them from becoming
homeless because of the virus.
This Resolution would also re-allocate the $7,683 unexpended from COVID specific shelter programs to
Neighbor to Neighbor to help prevent housing loss because of the pandemic. The revised total allocation
amount of $407,683.02 will then be expanded to include rent assistance, mortgage assistance and housing
stabilization services for low-income households that can demonstrate financial hardship because of the
pandemic.
CITY FINANCIAL IMPACTS
HUD requires most of these funds to be expended by June 2023. Beneficiaries must demonstrate a COVID-
related economic impact, which gets harder to document as time goes on. This request will ensure the City is
able to retain $407,683 in HUD funding to be used to directly support low-income residents in our community.
This request modifies and redirects funding that was already appropriated for these general purposes and
does not create any new funding obligations on the part of the City.
BOARD / COMMISSION RECOMMENDATION
The Human Services and Housing Funding Board recommended supporting Neighbor to Neighbor’s request to
expand the scope of work and increase the funding allocation to $407,683 at its regular meeting on May 11,
2022. (Attachment 2)
Agenda Item 15
Item # 15 Page 3
PUBLIC OUTREACH
The proposed recommendations were published on the Social Sustainability website and via Public Notice in
the Coloradoan on February 19, 2021, per the HUD required minimum public review period for emergency
funding as outlined in the Citizen Participation Plan. This modification request does not require additional
public outreach.
ATTACHMENTS
1. Neighbor to Neighbor Letter, May 9, 2022 (PDF)
2. Human Services & Housing Funding Board Minutes (draft) (PDF)
May 9, 2022
Dear City of Fort Collins Human Services and Housing Funding Board,
Thank you for your work to distribute much-needed funding to support housing and
human services in our City. This letter serves to explain how $400,000 in CDBG-CV
previously allocated to N2N can be put to best use starting in 2022.
Neighbor to Neighbor (N2N) operates eleven programs ranging from ending and
preventing homelessness or eviction to achievement and preservation of homeownership.
We currently have adequate funding for Covid-related emergency rent and utility
assistance, and our highest Covid-related funding need is for assistance to homeowners.
We’d like to apply the $400,000 toward homeownership assistance to include direct
assistance with mortgage payments, HOA fees, taxes, and credit repair. Funding would still
prevent people from losing their housing as a result of the pandemic, and would extend
critical assistance to Fort Collins homeowners as well as renters.
Currently, 4,000 Colorado households are waiting for homeowner assistance through the
state. With a handful of providers (including N2N) providing assistance, it’s taking months
to process each application. With funding specific to Fort Collins, N2N would be able to
process applications for Fort Collins homeowners more quickly. Providers in other areas of
the state, such as Pueblo, have also begun applying local funds to better address local need.
Providing services with a variety of funding sources is typical for N2N. As with all of N2N’s
diverse funding streams, eligibility requirements would be constant, and the State’s EMAP
program provides a strong program model. Please let me know if I can answer any
questions and thank you for your consideration.
Best wishes,
Kelly Evans
Executive Director
Neighbor to Neighbor
ATTACHMENT 1
Human Services & Housing Funding Board
REGULAR MEETING DRAFT
May 11, 2022 at 5:30 PM
Remote/ZOOM due to COVID-19
05/11/2022 – MINUTES Page 1
1. CALL TO ORDER
·At 5:30 PM the meeting was called to order by Josh Johnson.
2. ROLL CALL
·Board Members Present
o Josh Johnson, Chair
o Olga Duvall, Vice Chair
o Steve Backsen
o Mike Kulisheck
o Pat Hastings
o Ethnie Treick
o Elizabeth Gillette
·Staff Members Present
o Adam Molzer, Staff Liaison, Social Sustainability - City of Fort Collins
o Beth Rosen, Social Sustainability - City of Fort Collins
·Guests Present
o None
For further information, details and insight, and audio recording, resources are available by contacting the
HSHF-Board staff liaison.
3. AGENDA REVIEW
Josh Johnson read remote session instructions for the Human Services & Housing Funding Board and public
attendees. Adam Molzer reviewed agenda. The Board accepted the agenda without modification.
4. PUBLIC PARTICIPATION
None
5. APPROVAL OF MINUTES
Josh Johnson moved to approve the April 26th, 2022 meeting minutes as presented, Ethnie Treick seconds
the motion. Approved 6-0. Elizabeth Gillette abstained.
Olga Duvall moved to approve the April 27th, 2022 meeting minutes as presented, Elizabeth Gillette seconds
the motion. Approved 7-0.
ATTACHMENT 2
Human Services & Housing Funding Board
REGULAR BOARD MEETING
05/11/2022 – MINUTES Page 2
6. UNFINISHED BUSINESS
None
7. NEW BUSINESS
a. Re-Assigning Use of CDBG-CV Funds at Neighbor to Neighbor
Beth Rosen, Grants Compliance & Policy Manager at the City of Fort Collins, joined the Human Services
and Housing Funding Board members for a presentation regarding the current state of funding dollars
allocated through the CARES Act and request for repurposing the funds provided to Neighbor to Neighbor
from rent assistance to mortgage assistance. The presentation offered insight into the intended purpose
of those federal funds and how the community needs have changed for low-income households since the
start of the pandemic. Several board members followed up with clarifying questions to Beth Rosen.
Olga Duvall moved to support Neighbor to Neighbor’s request to modify the scope of work in their
contract to include mortgage assistance and housing stabilization services to prevent low-income
homeowners from losing their homes as a result of the pandemic to include the original allocation of
$400,000 and $7,683 of remaining funds unspent on City Sheltering.
Ethnie Treick seconds the motion. Approved 6-0. Elizabeth Gillette abstained.
b. Competitive Process Update and 360-Review
Elevation Community Land Trust Kechter Townhomes (priority #3 in housing deliberations) received a $2.2
million grant from the State Division of Housing and therefore withdrew their application for the City’s
competitive grant funding.
CARE Housing Heartside Hill is undergoing an internal review process, beginning with the Council Finance
Committee, to determine whether it will receive ARPA funding. If so, they will also withdraw their
application for the City’s competitive grant funding.
The U.S. Department of Housing and Urban Development has not finalized their funding allocations that
will be used to support the housing and CDBG public service projects. Those figures are expected this week.
Adam Molzer walked through the activities and follow-up that has occurred since the April 26th and 27th
funding deliberation meetings, as well as the timeline of activities ahead to complete the funding process.
He shared a brief analysis of the funding recommendations that the Board created, including average
amounts recommended for human service proposals.
Adam Molzer facilitated the group through an examination of the 2022 competitive grant process to gather
feedback, critique, and ideas from the Board members. The group addressed the grant application and
questions, support materials, review meetings with the Affordable Housing Board and the human services
apps, presentations, the scorecard and criteria, the funding protocol, and the deliberation meeting. Notes
were documented by staff and will be considered as potential improvements for the FY2023 grant process.
c. APRA Funding Review for Human Services TBD
The City is and will be offering new grants focused on COVID-19 impact mitigation to learning loss,
childcare, homelessness, and human services projects.
Human Services & Housing Funding Board
REGULAR BOARD MEETING
05/11/2022 – MINUTES Page 3
City staff are working to determine if the $150,000 in ARPA funding allocated in the 2021 budget for human
services projects will require a separate grant process and review by this board to make recommendations
for funding for City Council.
d. Recess for Summer
The HSHF-Board agreed that they are favorable to recessing their meetings until September 2022, unless
pressing business arises.
e. New Board Member Recruitment
This board currently has two vacancies and the City Clerk’s Office has opened applications.
Board members are encouraged to share this opportunity with Fort Collins residents in their personal and
professional networks.
8. BOARD MEMBER REPORTS
None
9. STAFF REPORTS
Larimer County will open their Impact Fund Grant Program on June 1st to fund care and coordination,
workforce expansion, alternatives and intervention in criminal justice, services in diverse settings,
expansion of child and youth services, and responsive grants. They will distribute $2.5 million to behavioral
health programming serving Larimer County residents.
10. OTHER BUSINESS
Grantee Client Story
Adam Molzer shared a brief impact story submitted by Catholic Charities for their Senior Services program
in their recent quarterly report.
11. NEXT MEETING
a. Wednesday, September 14, 2022 | 5:30pm | Location: TBD
12. ADJOURNMENT
Josh Johnson adjourned meeting at 7:12 PM.
Minutes were finalized and approved by the HSHF-Board on ____________________
City of Fort Collins Staff Liaison: ____________________________________________
Adam Molzer
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RESOLUTION 2022-62
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING THE RECOMMENDED FUNDING ALLOCATIONS AND
USES FOR PROGRAMS AND PROJECTS RECEIVING COVID-19
RESPONSE AND RECOVERY FUNDING FROM THE FEDERAL
COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM
WHEREAS, On March 27, 2020, the federal Coronavirus Aid, Relief, and Economic
Security Act (“CARES Act”) was signed in to law, making available $5 billion in Community
Development Block Grant Coronavirus (“CDBG-CV”) funds; and
WHEREAS, on April 2, 2020, the federal Department of Housing and Urban
Development (“HUD”) notified the City it would receive a CARES Act allocation of $649,203,
which amount the City Council appropriated on May 19, 2020, through adoption of Ordinance
No. 065, 2020, and allocated to eligible public service projects pursuant to Resolution No. 2020-
054 on June 20, 2020; and
WHEREAS, on September 11, 2020, HUD notified the City it would receive an
additional CARES Act allocation of $760,023, which amount the City council appropriated on
February 16, 2021, through adoption of Ordinance No. 024, 2021, and allocated to eligible
public service projects pursuant to Resolution No. 2021-028 on March 2, 2021(the “2021
Resolution”) ; and
WHEREAS, for the second round of funding, the City prioritized funding for the
following categories:
1. Services that mitigate the economic impact of the pandemic to Low-to Moderate-
Income (LMI) residents and prevent them from becoming homeless as a result of the
virus;
2. Support for at-home sheltering for at-risk persons and vulnerable populations; and
3. Emergency shelter and supports for persons experiencing homelessness (PEH); and
WHEREAS, one project the Council approved for funding in the 2021 Resolution was
Neighbor to Neighbor’s emergency rent assistance program, which was allotted $400,000; and
WHEREAS, Neighbor to Neighbor then learned that it would also receive, through
Larimer County, Emergency Rental Assistance funds from the U.S. Department of the Treasury,
and the City delayed contracting with Neighbor to Neighbor for the 2021 CDBG-CV funds until
other federal and state funds had been used; and
WHEREAS, On May 9, 2022, Neighbor to Neighbor submitted a written request to the
City asking to direct its allocated CDBG-CV funds to mortgage assistance and credit repair
services for low-income homeowners; and
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WHEREAS, this use of the 2021 CDBG-CV funds would still meet the HUD
requirement of demonstrating a COVID nexus, as well as meet the original priority as presented
to Council in 2021 of providing services in direct response to COVID-19 that mitigate the
economic impact of the pandemic to LMI residents and prevent them from becoming homeless
as a result of the virus; and
WHEREAS, the City also has $7,683 in unexpended 2012 CDBG-CV funds left from an
allocation of $196,080 that was designated for emergency shelter programs; and
WHEREAS, HUD requires that the majority of CDBG-CV funds be spent by June, 2023,
and be spent to mitigate a COVID-related economic impact, which becomes harder to document
as time goes on, making it important to redeploy remaining funds for a qualifying purpose as
quickly as possible; and
WHEREAS, City staff recommends that both the $400,000 and $7,683 in funds be re-
allocated to Neighbor to Neighbor to be used not just for rent assistance, but also mortgage
assistance and housing stabilization services for low-income households that can demonstrate
financial hardship as a result of the pandemic; and
WHEREAS, the Human Services and Housing Funding Board at its regular meeting on
May 11, 2022, voted to recommend supporting Neighbor to Neighbor’s request to expand its
scope of work and increasing its funding allocation to $407,683.
NOW, THEREFORE, BE IT RESOLVED 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 the City Council hereby authorizes use of the City’s remaining 2021
CDBG-CV funding allocation of $407,683 to fund the Neighbor to Neighbor programs and
projects described in this Resolution.
Section 3. That, subject to the appropriation of funds by the City Council, the City
Manager is hereby authorized to execute any agreements or amendments to existing agr eements
necessary to implement the funding allocations described herein on terms and conditions
consistent with this Resolution, along with such additional terms and conditions as the City
Manager, in consultation with the City Attorney, deems necessary or appropriate to protect the
interests of the City.
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Passed and adopted at a regular meeting of the Council of the City of Fort Collins this
21st day of June, A.D. 2022.
Mayor
ATTEST:
City Clerk