HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 05/05/2020 - FIRST READING OF ORDINANCE NO. 065, 2020, APPROPRIAgenda Item 5
Item # 5 Page 1
AGENDA ITEM SUMMARY May 5, 2020
City Council
STAFF
Beth Rosen, Affordable Housing Program Administrator
Ingrid Decker, Legal
SUBJECT
First Reading of Ordinance No. 065, 2020, Appropriating Unanticipated Revenue in the Community
Development Block Grant Fund for COVID-19 Response and Recovery.
EXECUTIVE SUMMARY
This item meets the following priorities for items to be considered by Council during the COVID-19 emergency:
(1) urgent items specifically related to COVID-19 activities that are critical in nature and must receive Council
consideration as soon as possible; (6) items that relate to funding, operation and business activities that the
City must continue despite the current crisis; and (7) items that are required to comply with federal or state
legal or other requirements.
The purpose of this item is to appropriate unanticipated Community Development Block Grant (CDBG) funding
in the amount of $649,203 from the Department of Housing and Urban Development (HUD) to be used 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 entitled cities and counties to develop viable urban communities by providing decent housing and a
suitable living environment, and by expanding economic opportunities, principally for low- and moderate-
income persons. Entitlement communities develop their own programs and funding priorities. However,
grantees must give maximum feasible priority to activities which benefit low- and moderate-income persons.
The City is currently administering its Fiscal Year 2019 (FY19) grant award from the Department of Housing
and Urban Development (HUD) in the amount of $1,078,629. These funds were appropriated by Council on
July 2, 2019, in Ordinance No. 080, 2019, and have been allocated to housing and human services projects as
adopted by Council on June 4, 2019, in Resolution No. 2019-074. These funds serve the program year that
runs from October 1, 2019, through September 30, 2020.
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. Of this amount, HUD immediately allocated $2 billion based on the fiscal year 2020 CDBG formula.
HUD notified the City on April 2, 2020, of its CARES Act allocation in the amount of $649,203. This
appropriation will add the new CDBG funding to the FY19 program year and support timely response and
deployment. (Attachment 1)
Agenda Item 5
Item # 5 Page 2
Staff is currently working on a coordinated effort to identify priority needs and uses for this critical funding. This
appropriation will allow for expedient deployment of the funds once a Council-approved plan has been
adopted.
CITY FINANCIAL IMPACTS
This will increase the City’s total CDBG allocation for FY19 from $1,078,629 to $1,727,832. These additional
funds will assist in critical response and recovery efforts not funded by other sources and will free up City
resources to address other identified priorities.
ATTACHMENTS
1. HUD CDBG-CV 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
April 2, 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 is immediately allocating $2
billion based on the fiscal year 2020 CDBG formula. The remaining $3 billion shall be allocated
based on needs using best available data, in the following tranches: $1 billion shall be allocated to
States and insular areas within 45 days of enactment of the Cares Act, and $2 billion shall be
distributed to states and local governments at the discretion of the Secretary. Up to $10 million will
be set aside for technical assistance. Given the immediate needs faced by our communities, the
Department has announced the first allocation of funds. Your jurisdiction’s allocation is $649,203.
The CARES Act adds additional flexibility for both the CDBG-CV grant and, in some cases,
for the annual 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 Secretary to grant waivers and alternative
requirements of statutes and regulations the 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,
prepare for, and respond to coronavirus.
The Department is developing a notice that will further describes the CARES Act’s
provisions, a Quick Guide to the CARES Act flexibilities and other provisions, and other resources
to enable swift implementation of CDBG-CV grants. As these become available, they will be
ATTACHMENT 1
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 requirements that each grantee have adequate procedures to prevent the duplication
of benefits. HUD will provide guidance and technical assistance on DOB and regarding prevention
of fraud, waste, and abuse and documenting the impact of this program for beneficiaries.
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. 065, 2020
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 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, HUD has allocated $649,203 of CDBG-CV funds to the City; 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:
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 SIX HUNDRED
-2-
FORTY-NINE THOUSAND TWO HUNDRED THREE DOLLARS ($649,203), to be used
towards COVID-19 response and recovery.
Introduced, considered favorably on first reading, and ordered published this 5th
day of May, A.D. 2020, and to be presented for final passage on the 19th day of May, A.D. 2020.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
Passed and adopted on final reading on the 19th day of May, A.D. 2020.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk