HomeMy WebLinkAboutMemo - Mail Packet - 9/20/2022 - Memorandum From Beth Rosen Re: Allocation Update On 2.6M Home-Arp Funding From Hud
Social Sustainability
222 Laporte Avenue
PO Box 580
Fort Collins, CO 80522
MEMORANDUM
DATE: September 12, 2022
TO: Mayor and City Council
TH: Kelly DiMartino, City Manager
Tyler Marr, Interim, Deputy City Manager
Beth Yonce, Social Sustainability Department Director
FM: Beth Rosen, Grants Compliance and Policy Manager
RE: Allocation update on $2.6 HOME-ARP Funding from HUD
______________________________________________________________________
Purpose: The purpose of this memo is informational to provide an update to Council
on progress toward allocation of $2.6 million in funding to be received through the
HOME Investment Partnership program from the American Rescue Plan Act (HOME-
ARP). Before any funds can be allocated, the City must submit an allocation plan for
approval by the Department of Housing and Urban Development (HUD). This memo
updates Council on the release of a Draft HOME-ARP Allocation Plan and required
public review period prior to submittal to HUD.
Bottom Line:
On September 12, 2022, the City published the “Draft HOME-ARP Allocation Plan” (the
Plan) as required by HUD. The Plan must be submitted to and approved by HUD before
the City is authorized to disburse any HOME-ARP funding through the City’s annual
competitive process. Publication of the Draft Plan will begin a required 30-day public
review period in which members of the public can review the proposed allocation of
HOME-ARP funds and provide feedback on the identified needs, priorities and
proposed uses. Once the Plan is accepted by HUD, the City will execute a grant
agreement allowing it to make the funds available to specific projects through a
competitive application process. Council will receive funding recommendations from the
Human Services and Housing Funding Board for proposed HOME-ARP projects
beginning in 2023.
Background:
On March 11, 2021, President Biden signed the American Rescue Plan Act (ARPA) into
law, enabling over $1.9 Trillion in relief to address the continued impact of the COVID-
19 pandemic on the economy, public health, Sta te and local governments, individuals
and businesses.
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The American Rescue Plan Act appropriated $5 billion to help communities pro vide
housing, shelter and services for people experiencing homelessness and other
qualifying populations. These funds are administered by the Department of Housing
and Urban Development (HUD) through the HOME Investment Partnership Program –
American Rescue Plan (HOME-ARP). On April 21, 2021, HUD issued an award letter
notifying the City that as a HOME program participating jurisdiction, it received an
allocation $2,628,410 to benefit qualifying populations in our community. Late in 2021,
HUD issued the implementing notice providing instructions and requirements for
developing a substantial amendment to our FY21 Annual Action Plan. The Social
Sustainability Department (SSD) has spent the better part of 2022 conducting
stakeholder engagement, needs assessment and gap analysis in accordance with HUD
guidelines.
Funding Requirements:
In order to address the most critical needs for persons experiencing homelessness and
housing insecurity, HUD has limited HOME-ARP funds to serve the following eligible
populations:
homeless, at-risk of homelessness;
persons fleeing or attempting to flee domestic violence, dating violence, sexual
assault, stalking or human trafficking;
other populations where providing assistance would prevent homelessness or
would serve those with the greatest risk of housing insta bility; and
veterans and families that include a veteran family member that meet one of the
preceding criteria.
Furthermore, HOME-ARP funds are limited to four eligible activities, which include:
1. Production or preservation of affordable housing
2. Tenant-based rental assistance (TBRA)
3. Provision of supportive services, including homeless prevention services
4. Acquisition and development of non-congregate shelter
The HOME ARP-Allocation Plan submitted to HUD must include the following:
1. Stakeholder engagement with non-profit and public agencies serving each of the
qualifying populations
2. Analysis of the characteristics and demographics of each of the qualifying
populations
3. Assessment of the gaps in housing and services for each of the following
qualifying populations
Proposed Allocation:
After receiving community input from all required stakeholders and assessing the needs
and gaps in the current system, SSD developed a Draft Plan which priorities using the
$2.6 million in HOME-ARP funds as follows:
$2 million – development of units
$400k – supportive services
$228k – grant specific administration costs
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The Draft Plan is available at https://www.fcgov.com/socialsustainability/home-arp for
review through October 12, 2022. SSD anticipates deploying HOME-ARP grant
applications for Housing and Supportive Services early in 2023. All funding must be
expended by June 30, 2030.
Next Steps:
The required 30-day public review period will end on October 12, 2022. Following
completion of the review period, Staff will prepare a final Draft Plan to submit to HUD as
an amendment to the City’s Annual Action Plan.
On October 17, 2022, Council will receive a funding appropriation ordinance to allocate
the HOME-ARP funds.
In 2023, Council will review and approve all funding requests for HOME-ARP funds as
part of the City’s competitive funding processes.
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