Item 2a: Proposed Amendments to HUD Action Plan, Consolidated Plan and Participation Plan — original pdf

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PROPOSED AMENDMENTS TO HUD ACTION PLAN, CONSOLIDATED PLAN & PARTICIPATION PLAN NEIGHBORHOOD HOUSING & COMMUNITY DEVELOPMENT Why Is The City Of Austin Amending Its U.S. Department Of Housing And Urban Development (HUD) Plans? • The federal government adopted the Coronavirus Aid, Relief and Economic Security, or CARES Act, in April of 2020, which provides additional funding to be deployed through HUD programs to respond to the impacts of COVID-19 • Amending the current year Action Plan and the corresponding Consolidated Plan is the fastest way to deploy the additional funds to respond to the impacts of COVID-19 • Jurisdictions must submit amended plans to HUD to receive the funding 2 Consolidated Plan & Action Plan Amendment Process FY 2019-24 Consolidated Plan and FY 2019-20 Action Plan • Approved by HUD in fall 2019 Amend FY 2019-24 Consolidated Plan and FY 2019-20 Action Plan Submit Amendments to HUD • To include CARES Act funding • Upon approval by HUD, begin the process of implementing programs to mitigate the economic effects of COVID-19 3 CORONAVIRUS AID, RELIEF, AND ECONOMIC SECURITY (CARES) ACT OF 2020 The CARES Act provided funding to respond to the impacts of the coronavirus to be deployed by HUD through three programs: 1. Community Development Block Grant coronavirus response (CDBG-CV) 2. Emergency Solutions Grant (ESG-CV) 3. Housing Opportunities for Persons with AIDS (HOPWA-CV) 4 Eligible Uses of HUD CARES Act Funding by Program Community Development Block Grant-CV May be used to cover or reimburse costs to prevent, prepare for, and respond to coronavirus, regardless of the date on which such costs were incurred, when those costs comply with CDBG requirements. $4.6M Emergency Solutions Grant-CV Prevent the spread of COVID-19, Provide additional support to individuals and families eligible for Continuum of Care or ESG assistance who are economically impacted by COVID-19 $2.4M Housing Opportunities for Persons With AIDS- CV Prevent the spread of COVID-19, Provide additional support to individuals and families eligible for Continuum of Care or HOPWA assistance who are economically impacted by COVID-19 $272,000 5 How The Cares Act Funding Proposals Were Informed Community input through SpeakUp Austin survey and public hearing Calls to 211 regarding Unemployment data needs for services analysis Review of other funding sources to align eligible source of funds with community need City of Austin Economic Recovery Core Directors Panel 6 UNITED WAY 211 calls In Travis County APRIL 1 - 15, 2020 Need Rent Payment Assistance Food Pantries Electric Service Payment Assistance COVID-19 Control Undesignated Temporary Financial Assistance * COVID-19 Water Service Payment Assistance COVID-19 Diagnostic Tests State Unemployment Insurance * COVID-19 Food Stamps/SNAP Applications Gas Service Payment Assistance Volume of 211 Calls 1938 1028 553 527 139 139 128 122 120 114 7 COVID-19 Impact & The Fragility Of Childcare • According to Workforce Solutions Capital Area, 68% of the childcare programs that contract for subsidized childcare are closed. • There are currently only 1, 469 childcare seats available for essential workers in Austin/Travis County. (Per 5/12/20 report from Workforce Solutions Capital Area). • Approximately 50% of all licensed child • It is estimated that 54% of childcare care programs in Travis County are closed. supply may be lost - a loss of more than 480,000 child care seats. • Nationally, only 3% of the first round of • Prior to the COVID-19 crisis, there was PPP and SBA loans went to the sector that includes childcare (educational services businesses), indicating that many of these closures, without government financial support, may be permanent. only 1 spot for every 2.71 children in Texas. Without investment, there may be only 1 spot for every 5.9 children. 8 Small Business And Creative Community Needs Loan Loss Reserve Small Businesses hit hard according to a study by the Downtown Austin Alliance (closed 4/19/20): Artist Education Program Local creatives according to a national study by Americans for the Arts (updated as of 5/4/20): • 65% of downtown businesses had suspended business or closed completely due to the pandemic, with 86% of reporting businesses stating that their revenue had dropped 76-100% since public health restrictions had been imposed. • The loan loss reserve is recommended to offset losses of the Economic Injury Bridge Loan Program, which has now stopped accepting inquiries. Financial losses to nonprofit arts organizations are estimated to be $4.98 billion, to date. They have also lost $208 million in admissions due to cancelled events, resulting in a $6.6 billion loss in event-related spending by audiences (restaurants, lodging, retail). The economic impact of these losses is $1.9 billion in lost government revenue and 328,000 jobs no longer being supported. Findings are based on 11,000 survey responses. (Survey. Dashboard.) • 95% cancelled events. • 66% expect this crisis to have a “severe” impact on their organization. • 29% reduced artistic workforce. • 24% reduced staff (42% are “likely” to reduce staff). • 10% are “not confident” that they will survive the COVID-19 pandemic (a potential loss of 12,000 organizations). • And yet, 65% are delivering artistic content to raise community spirits and morale. * Most of Austin's creatives fall between low and moderately low-income strata; estimated economic loss of SXSW cancellation alone is $360M. HOT-funded Cultural Funding for FY21 is anticipated to be 40 – 75% less than in years past. 9 Proposed Amendments To The Citizen Participation Plan Addition of Disaster Response and Recovery Section Additional Regulatory Provisions Provided by HUD 10 Opportunities To Engage & Stay Informed Community Input: SpeakUp Austin austintexas.gov/housing NHCD Mailing List Housing Matters Newsletter @ Email NHCD@austintexas.gov Comments via Standard Mail 11 QUESTIONS? Neighborhood Housing & Community Development 12