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HomeMy WebLinkAboutMemo - Mail Packet - 4/14/2020 - Memorandum From Darin Atteberry Re: Covid-19 Funding Sources Available To Fort CollinsCity Manager’s Office City Hall 300 LaPorte Ave. PO Box 580 Fort Collins, CO 80522 970.221.6505 970.224.6107 - fax fcgov.com MEMORANDUM DATE: April 9, 2020 TO: Mayor and City Councilmembers FROM: Darin Atteberry, City Manager RE: COVID-19 Funding Sources Available to Fort Collins Attached is a memorandum to City Council that serves as an important reference for Council and our community regarding federal and state resources available to support Fort Collins’ recovery from the COVID-19 pandemic. As you know, our City organization is deeply committed to researching resources and providing that information to our community that is clear, timely, and easily accessible. We are in a dynamic environment in many ways, and information and guidelines on funding sources will continue to evolve. Information contained in this memo provides the best information we have today, but we anticipate things to evolve, and will share this information with Council and our community in a timely way. My intent is to discuss these funding opportunities with the Council Finance Committee on April 20 and then with the full City Council on April 28 in a work session on Social and Economic Recovery in Fort Collins. I am pleased and appreciative of the work to date to compile these resources, and to assess the needs in our community as we begin our work to disperse the funds. I also continue to refer community members to these City websites for additional information. COVID19 Resources For all residents: https://www.fcgov.com/eps/coronavirus For businesses: https://www.fcgov.com/business/ Want to help: https://www.fcgov.com/volunteer/ Connect with resources: https://uwaylc.org/ RECURSOS COVID-19 Para integrantes de la comunidad: https://www.fcgov.com/eps/coronavirus Para empresas: https://www.fcgov.com/business/ ¿Quieres ayudar o necesitas ayuda? https://www.fcgov.com/neighborhoodservices/adopt Recursos de United Way: https://uwaylc.org/ 1 Financial Services 215 North Mason Street 2nd Floor PO Box 580 Fort Collins, CO 80522 970.221.6770 970.221.6782 - fax fcgov.com MEMORANDUM DATE: April 9, 2020 TO: Mayor and City Councilmembers THRU: Darin Atteberry, City Manager Jeff Mihelich, Deputy City Manager FROM: Travis Storin, Interim Chief Financial Officer Jacqueline Kozak Thiel, Chief Sustainability Officer Caryn Champine, Planning, Development and Transportation Director RE: Summary of Federal and State COVID-19 Funding Sources Available to Fort Collins Purpose: To provide a summary of known Federal and State funding opportunities to support Fort Collins in response to and recovery from the COVID-19 pandemic. Bottom Line: There are multiple funding sources available to Fort Collins for COVID-19 response and recovery. Thus far, across the CARES funding and other federal/state agency mechanisms, the City has identified $8.4M that flow directly to the City organization (via FTA and HUD). An as-of- yet indeterminate amount of additional federal pass-through funding is available to the City organization and staff is working with partners at all levels of government to determine the City’s allocations. Available funding for residents and businesses is robust and the amount the community receives is dependent on the number of organizations that apply for aid. Staff continues to research additional opportunities and will inform Council as any are identified. I. Overview of Federal Funding Sources On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES) was signed into law. The $2.2 trillion package includes a wide range of provisions that provide funding for issues ranging from emergency relief to unemployment benefit expansion. Target recipients for each item are in parentheses. For ease, each of the major aspects of the CARES Act are described individually below and in more detail in Attachment 1. CARES Act: Payroll Protection Program (PPP) (Small businesses) • $350 billion to help small businesses keep workers employed • Provides 100% federally guaranteed loans to small businesses that maintain their payroll during this emergency. • The loans may be forgiven if borrowers maintain their payrolls during the crisis or restore their payrolls afterward. CARES Act: Economic Injury Disaster Loan Emergency Advance (EIDL) (Small businesses) • Small business can apply for an advance of up to $10,000 if experiencing a temporary loss of revenue. This advance will not have to be repaid. 2 CARES Act: Small Business Administration (SBA) Express Bridge Loans (Small businesses) • For small businesses who currently have a business relationship with an SBA Express Lender to access up to $25,000. CARES Act: Small Business Administration (SBA) Debt Relief (Small businesses) • SBA will automatically pay the principal, interest, and fees of certain small business loans a period of six months. The SBA will also automatically pay the principal, interest, and fees of new 7(a), 504, and microloans issued prior to September 27, 2020. CARES Act: Expanded Unemployment Benefits (Anyone experiencing a loss of hours, temporary unemployment, or loss of job) • Provides for (1) an extra $600 weekly payment, in addition to the weekly benefit amount an eligible employee otherwise receives under state law; and (2) increases the maximum number of weeks an individual may receive benefits. These new benefits are funded at the federal level but will be administered by the states. CARES Act: Community Development Block Grant (CDBG) Allocation (Residents and Businesses and local government) • The Director of the Denver Regional Field Office of the Department of Housing and Urban Development (HUD) notified the City of its additional CDBG funding allocation of $649,203 under the CARES Act to support the immediate response needs. • This CARES Act guidance encouraged the City 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. • Process guidance still pending. • Staff is working with a multidisciplinary team to identify priority needs and gaps based on local non-profit outreach and the preliminary guidance on using CDBG funding. The team will seek Council review of an anticipated deployment plan. Note funding allocations are approved by City Council, and a timeline for appropriation will be included in the deployment plan. CARES Act: Department of Justice Coronavirus Emergency Supplemental Funding (CESF) (City Government) • Funds are awarded under the CESF Program to prevent, prepare for, and respond to the coronavirus. Allowable projects and purchases include law enforcement and certain medical needs. • The City would be eligible for a grant up to $100,818 with no local match and intends to apply • The application is due by May 29, 2020, and if awarded the City would have two years to draw down the eligible funds for reimbursement. CARES Act: Election Assistance Commission (EAC) (State and Local Governments) • This funding provides $400 million for Election Security Grants, which will be provided to States and local jurisdictions in order to manage their role in the 2020 election cycle. • EAC Commissioners and staff are moving as quickly as possible to provide guidance on how these funds will be distributed. • Staff intends to apply. 3 Federal Emergency Management Agency (FEMA) (State and Local Governments) • On March 28, 2020 President Trump approved the major disaster declaration for the State of Colorado, making Federal funding available to state, tribal and eligible local governments and certain private nonprofits, on a cost-sharing basis for expenses such as Emergency Operation Center costs, related trainings, cleaning, some Personal Protective Equipment, related communications and certain other related expenses. • Staff is tracking expenses for reimbursement. • FEMA reimbursement of costs will not exceed 75%, so the City is responsible for 25% of eligible costs • FEMA will not duplicate assistance provided by other federal agencies Federal Transit Administration (FTA) (State and Local Governments) • Transfort will net $8,719,626 in CARES funding from the FTA • Funds can cover all operating activities that occur on or after January 20, 2020 including fixed route operating expenses; and operation and maintenance of Transfort’s fleets and facilities II. Overview of State Funding Sources Colorado COVID Relief Fund (Business, Nonprofits, governments) • Funds raised will be used to support the needs of communities impacted by COVID-19 in three categories: prevention, impact, and recovery efforts. • Organizations across Colorado, including local governments, may receive a general operating grant of up to $25,000 and City staff will apply as eligible • For more information see https://covrn.com/covid-relief-fund/ Colorado Department of Local Affairs (DOLA) Emergency Disaster Fund • $3 million from Disaster Emergency Fund allocated to DOLA for emergency rent and mortgage assistance for Coloradans facing economic disruption due to COVID-19 • DOLA is coordinating with local nonprofit housing counseling agencies and housing authorities, including Neighbor to Neighbor & Housing Catalyst. No allocation plans yet announced. III. Additional Funding Sources In addition to federal and state resources to support communities in this time, private foundations and community foundations are also providing grant support throughout Colorado. The organization Philanthropy Colorado is maintaining a comprehensive list, which can be found here: https://www.philanthropycolorado.org/news/resources-covid-19-coronavirus. Additional high level information regarding private funding sources will be provided at the April 28 Work Session. Next Steps: • Discussion planned with City Council Finance Committee on 4/20/20 regarding COVID- 19 funding • April 28 Work Session planned on Social and Economic Recovery with further updated information about these funds and how they can support recovery in our community 4 Attachments Attachment 1- Federal and State Funding Source to Support Fort Collins COVID-19 Response and Recovery Attachment 2 – Fort Collins COVID-19 Community Development Block Grant Award Letter CC: Josh Birks, Economic Health Director; Lindsay Ex, Sr. Environmental Program Manager; Drew Brooks, Transit Director; Kaley Zeisel, Compliance Manager; Blaine Dunn, Interim Accounting Director 1 Attachment 1 - Federal and State Funding Sources to Support Fort Collins COVID-19 Response and Recovery (4/8/20) (The information presented here represents staff’s current understanding of funding opportunities and may evolve as additional guidance is provided.) I. Federal Funding Sources CARES Act: Payroll Protection Program  (PPP) The CARES Act allocated $350 billion to help small businesses keep workers employed amid the pandemic and economic downturn. Known as the Payroll Protection Program (PPP), the initiative provides 100% federally guaranteed loans to small businesses that maintain their payroll during this emergency. Importantly, these loans may be forgiven if borrowers maintain their payrolls during the crisis or restore their payrolls afterward. Eligibility/Process: • 100% federally guaranteed loans made by SBA-approved lenders direct to eligible small businesses, including charitable non-profits, Veterans organizations, Tribal concerns, sole proprietorships, self-employed individuals, and independent contractors, with 500 or fewer employees. • An individual business can apply for the funds through any existing SBA lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program. • Starting April 3, 2020, small businesses and sole proprietorships can apply for and receive loans to cover their payroll and other certain expenses through existing SBA lenders. • Starting April 10, 2020, independent contractors and self-employed individuals can apply for and receive loans to cover their payroll and other certain expenses through existing SBA lenders. Other relevant context: • The loan amounts will be forgiven as long as: (a) The loan proceeds are used to cover payroll costs, and most mortgage interest, rent, and utility costs over the 8 week period after the loan is made; and (b) Employee and compensation levels are maintained. CARES Act: Economic Injury Disaster Loan Emergency Advance (EIDL) The CARES Act authorized an Emergency Advance on Economic Injury Disaster Loans (EIDL) enabling small business owners in all U.S. states, Washington D.C., and territories to apply for an advance of up to $10,000. This advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue. Funds will be made available following a successful application. This advance will not have to be repaid. Eligibility/Process: • Direct advance of funds to an approved small business. • An individual business must apply for an Economic Injury Disaster Loan (EIDL) and request an Emergency Advance. The application is available directly from the Small Business Administration (SBA) on their website. • SBA is currently taking applications. 2 CARES Act: Small Business Administration (SBA) Express Bridge Loans The Express Bridge Loan Pilot Program allows small businesses who currently have a business relationship with an SBA Express Lender to access up to $25,000. These loans can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing and can be a term loan or used to bridge the gap while applying for a direct SBA Economic Injury Disaster Loan. If a small business has an urgent need for cash while waiting for decision and disbursement on an Economic Injury Disaster Loan, they may qualify for an SBA Express Disaster Bridge Loan. Eligibility/Process • Loans eligible to businesses with an existing SBA Express Lender relationship for up to $25,000 to be repaid from the proceeds of an EIDL loan. • An individual business must apply for an Economic Injury Disaster Loan (EIDL) and request an Emergency Advance. The application is available directly from the Small Business Administration (SBA) on their website. • SBA is currently taking applications. CARES Act: Small Business Administration (SBA) Debt Relief The SBA is providing a financial reprieve to small businesses during the COVID-19 pandemic. The SBA will automatically pay the principal, interest, and fees of current 7(a), 504, and microloans for a period of six months. The SBA will also automatically pay the principal, interest, and fees of new 7(a), 504, and microloans issued prior to September 27, 2020. Eligibility/Process: • Provides debt relief including paying principal, interest, and fees. • No application necessary based on status and eligibility of the loan. • Currently available. CARES Act: Expanded Unemployment Benefits The CARES Act includes various provisions increasing and expanding unemployment insurance benefits available to workers, including individuals who are unemployed, partially unemployed, or unable to work due to COVID-19. Eligibility/process: • Provides for (1) an extra $600 weekly payment, in addition to the weekly benefit amount an eligible employee otherwise receives under state law; and (2) increases the maximum number of weeks an individual may receive benefits. These new benefits are funded at the federal level, but will be administered by the states. • As normal through the State of Colorado Department of Labor and Employment – the state’s processer of unemployment benefits. • As of April 7, 2020, the coloradoui.gov website indicates it is not ready to accept and process claims for individuals experiencing a loss of hours or employment due to COVID19. CARES Act: Community Development Block Grant (CDBG) Allocation On April 3rd, the Director of the Denver Regional Field Office of the Department of Housing and Urban Development (HUD) notified the City of its additional CDBG funding allocation of $649,203 under the CAREs Act. Eligibility/process • HUD has stated all funding can be used for immediate response needs. • This CARES Act guidance encouraged the City 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. 3 • Process guidance is still pending. • In the meantime, staff is working with an interdisciplinary team to identify priority needs and gaps based on the preliminary guidance on using CDBG funding for infectious disease response. • This allocation is directly to Fort Collins and does not require a formal application, but will require a submission of an amendment to the FY2019 Annual Action Plan and approval from HUD prior to the release of funds • Once we receive the formal guidance from HUD, we will update Council on an anticipated deployment plan, including a proposed timeline for the Appropriation Ordinance for City Council's review which comes with all HUD funding recommendations. Other relevant context: • The $649,203 allocation is associated with the first wave of funding ($2B out of a total of $5B included in the CARES Act). The remaining $3B in funding will be allocated as follows: (a) $1B directly to States and (b) $2B (retained) to be released based on need as determined by the Secretary. Staff is actively monitoring these resources for opportunities to address Fort Collins’ needs. CARES Act: Department of Justice Coronavirus Emergency Supplemental Funding (CESF) Funds awarded under the CESF Program must be utilized to prevent, prepare for, and respond to the coronavirus. Allowable projects and purchases include, but are not limited to, overtime, equipment (including law enforcement and medical personal protective equipment), hiring, supplies (such as gloves, masks, sanitizer), training, travel expenses (particularly related to the distribution of resources to the most impacted areas), and addressing the medical needs of inmates in state, local, and tribal prisons, jails, and detention centers. These funds would be able to be used City-wide and not just for the Police Department. Eligibility/process: • The City would be eligible for a grant up to $100,818 and this grant does not require a local match and the City intends to apply. • The application is due by May 29, 2020, and will use the standard Federal Assistance Form. • If awarded the City would have two years to draw down the eligible funds for reimbursement. CARES Act: Election Assistance Commission (EAC) This funding provides $400 million for Election Security Grants, which will be provided to states and local jurisdictions in order to manage their role in the 2020 election cycle. Eligibility/process: • EAC Commissioners and staff are moving as quickly as possible to provide guidance on how these funds will be distributed. • Staff intends to apply as eligible. Federal Transit Administration (FTA) FTA is allocating $25 billion in CARES funding to recipients of urbanized area and rural area formula funds. These funds are being dispersed to transit agencies based on their 2020 formula funding apportionments. Eligibility/Process: • Transfort will receive a net of $8,719,626 in CARES funding by the FTA. These funds are available at a 100% federal match, there is no local match requirement. 4 • Funding through the CARES Act are available for all operating activities that occur on or after January 20, 2020 that are eligible. Funds are available until expended, there is no lapse date to obligate funds available under the CARES Act. Eligible expenses include: o Fixed route operating expenses; o Some or all of paratransit operating expenses; o Operation and maintenance of Transfort’s fleets and facilities; o Administrative leave; o Some capital and planning projects are also eligible. • Transfort will execute the contract to use these funds through FTA’s existing online portal, the Transit Award Management System (TrAMS). • Transfort will begin the process of contracting for CARES funds immediately; however, the process of executing an agreement in TrAMS takes approximately 4-6 weeks. At that time, Transfort will be able to begin submitting for reimbursements. Other relevant context: • The City of Fort Collins, as designated recipient of the Fort Collins-Loveland- Berthoud Transportation Management Area (TMA), is responsible for determining allocations of federal formula funding throughout the TMA. The TMA has been awarded a total of $12,787,733 in CARES funding for allocation among the four eligible transit agencies: Transfort, City of Loveland Transit (COLT), North Front Range Metropolitan Planning Organization (MPO) and Berthoud Area Transportation Services (BATS). • COLT will receive $2,419,666 of this funding directly from FTA. For disbursements to the other two eligible agencies in the TMA, Transfort will facilitate a funding “exchange” whereby Transfort retains 100% of the federal funds as well as 38% of each agency’s allocation and will pay out the remainder (62%) of their allocations in local funds. Therefore, Transfort will receive a total of $10,368,067 in federal funds while paying $1,648,440 in local funds to MPO and BATS. CARES Act FTA Apportionment Total $12,787,733 Loveland Federal Amount (as Direct Recipient) $2,419,666 Transfort Federal Amount $10,368,067 NFRMPO Allocation (Local Funds) ($1,473,705) BATS Allocation (Local Funds) ($174,736) Transfort Net (Federal – Local) $8,719,626 Federal Emergency Management Agency (FEMA) On March 13, 2020 President Trump declared a national emergency related to COVID-19. On March 28, 2020 the President approved the major disaster declaration for the State of Colorado. By approving this declaration Federal funding is available to the state, tribal and eligible local governments and certain private nonprofit organizations on a cost-sharing basis for emergency protective measures (Category B), including direct federal assistance under Public Assistance, for all areas affected by COVID-19 at a federal cost share of 75 percent. Eligibility/process: • Under the emergency declaration FEMA may provide assistance and reimbursement for the following costs: 5 o Management, control and reduction of immediate threats to public safety:  Emergency Operation Center costs  Training specific to declared event  Disinfection of eligible public facilities in relation to COVID-19 o Purchase and distribution of food, water, ice, medicine, and other consumable supplies, to include personal protective equipment and hazardous material suits o Movement of supplies and persons o Security and law enforcement directly related to COVID-19 o Communication of general health and safety information to the public o Reimbursement for local government force account overtime costs • Reimbursement is being handled through FEMA’s Public Assistance application process. Staff is currently working to set up a login for the City to be able to submit eligible costs for reimbursement. Staff will be able to submit costs on an ongoing basis while the City continues to respond to this disaster. • Once costs are submitted to FEMA, the City and FEMA will review backup documentation to ensure all costs are eligible for reimbursement. Once costs are reviewed the City will sign and Grant application and receive funds. Other relevant context: • The types of funds available listed above is not an all inclusive list and staff continues to research and work with partners at the State and Federal level to identify other costs that may be reimbursable. FEMA will not duplicate assistance provided by other federal agencies, staff will work together closely to ensure we are not asking for funding for the same costs from multiple federal agencies. FEMA reimbursement of costs will not exceed 75%, so the City is responsible for 25% of eligible costs II. State Funding Sources Colorado COVID Relief Fund Launched in mid-March by Governor Polis, funds raised will be used to support the needs of communities impacted by COVID-19 in both response and recovery. The fund will support work in three categories: prevention, impact, and recovery efforts. This will include things like medical and cleaning supplies, food services, early childhood education, small business support, behavioral health services, and more. Eligibility/process: • Organizations across Colorado, including local governments, may receive a general operating grant of up to $25,000. • Online application available at https://covrn.com/covid-relief-fund/ • Organizations helping with the response to COVID-19 are now able to apply for funds. • Rolling application deadlines every two weeks. • City staff will apply as eligible Other relevant context: • Fund is hosted by the State of Colorado and Mile High United Way. • Eligible Organizations: Nonprofit organizations, local government, school districts and small businesses who are: Serving areas of the state with limited nonprofit capacity; and/or Serving a community need resulting from the COVID-19 crisis. Colorado Department of Local Affairs (DOLA) Emergency Disaster Fund $3 million from the Disaster Emergency Fund were allocated to DOLA for emergency rent and mortgage assistance for Coloradans facing economic disruption due to COVID-19 Eligibility/Process; 6 • DOLA is contracting with statewide non-profit agencies & public housing authorities to administer • Neighbor to Neighbor & Housing Catalyst are currently coordinating with DOLA – no allocation plans yet announced • Timeframe for applying is unknown Other relevant context: • Multiple private entities across the state have issued guidance against evictions until after April 30 • Single family federally-backed mortgages can be deferred for up to 180 days • For more information see: https://drive.google.com/file/d/1mMCRLb6PxMPI680_THFn4nqLGAty1jq9/view 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 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