Community Development CommissionDec. 4, 2020

Item2_Substantial_Amendment_FY2019-20 Action Plan_Related_To_CARES_Act_Funding — original pdf

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PROPOSED AMENDMENT TO HUD 2019-2020 ACTION PLAN PRESENTATION TO COMMUNITY DEVELOPMENT COMMISSION DECEMBER 4, 2020 WHAT IS THE CITY OF AUSTIN ACTION PLAN? The Consolidated Plan is designed to help states and local jurisdictions to assess their affordable housing and community development needs and market conditions, and to make data-driven, place-based investment decisions. The consolidated planning process serves as the framework for a community dialogue to identify housing and community development priorities that align and focus funding from the CPD formula block grant programs: Community Development Block Grant (CDBG) Program, HOME Investment Partnerships (HOME) Program, Emergency Solutions Grants (ESG) Program, and Housing Opportunities for Persons With AIDS (HOPWA) Program. The Consolidated Plan is carried out through Annual Action Plans, which provide a concise summary of the actions, activities, and the specific federal and non-federal resources that will be used each year to address the priority needs and specific goals identified by the Consolidated Plan. 2 Why is the City of Austin amending its Fiscal Year 2019-20 Action Plan? • 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 2019-2020 Action Plan allows for the deployment of additional funds to respond to the impacts of COVID-19 • Jurisdictions must submit amended plans to HUD to then receive the additional funding 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 CARES ACT REGULATIONS FOR EXPEDITED DEPLOYMENT OF FUNDING Citizen Participation and Public Hearings for Consolidated Plans (including Action Plans): The CARES Act clarifies that grantees may amend citizen participation plans to establish expedited procedures to draft, propose, or amend consolidated plans. Expedited procedures must include notice and reasonable opportunity to comment of no less than 5 days. In-person public hearings are not required. Grantees may meet public hearing requirements with virtual public hearings if: 1) national/local health authorities recommend social distancing and limiting public gatherings for public health reasons; and 2) virtual hearings provide reasonable notification and access for citizens in accordance with the grantee’s certifications, timely responses from local officials to all citizen questions and issues, and public access to all questions and responses. 5 Action Plan Amendment Process FY 2019-20 Action Plan • Approved by HUD in fall 2019 Amend FY 2019-20 Action Plan • To include CARES Act funding Submit Amendments to HUD • Upon approval by HUD, begin the process of implementing programs to mitigate the economic effects of COVID-19 6 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. $7.2M 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 $10.8M 7 PROPOSED PROGRAMMING CDBG-CV 3 & ESG-CV 2 ACTIVITY ADMINISTERING DEPARTMENT FUNDING SOURCE Emergency Rental Assistance Housing and Planning Childcare Services for Essential Workers Austin Public Health Small Business Assistance Economic Development Emergency Solutions Grant (ESG) Austin Public Health CDBG-CV $2,262,074 CDBG-CV $2,500,000 CDBG-CV $2,500,000 ESG-CV $8,859,249 8 EMERGENCY RENTAL ASSISTANCE – CDBG-CV • Funding for emergency rental assistance activities will be used for direct rental assistance payments made to landlords • This program is designed to be a short-term solution and a rapid response to those experiencing financial hardships as a result of COVID-19 • This effort may also help the department in its mission to prevent the displacement of Austin’s low-income community members 9 CHILD CARE SERVICES – CDBG-CV • Funding for childcare assistance activities will be used for direct childcare services to sustain jobs of low- to moderate- income essential workers responding to coronavirus • There continues to be a waitlist for childcare subsidies for over • Funding will enable eligible essential workers on the waitlist to 2,000 children receive childcare • This funding will also help to keep childcare facilities operational and low- to moderate-income workers employed 10 SMALL BUSINESS ASSISTANCE – CDBG-CV • Funding for this activity will be used for grants to small businesses negatively affected by the COVID-19 pandemic, for the purpose of creating and retaining employment for low- to moderate-income workers. 11 HOMELESS ASSISTANCE – ESG • The ESG-CV funding will be used to help prevent and respond to the negative effects of coronavirus with programs designed to help individuals and households experiencing homelessness • The Downtown Austin Community Court will use $1,964,830 in funding to provide rapid rehousing services to individuals identified for temporary shelter stays at Protective Lodges during the pandemic • The City is proposing to use $138,632 in administrative dollars to help manage the ESG-CV program • The remaining $8,755,787 in funding will be allocated to provide rapid rehousing, shelter and outreach services 12 TIMELINE TIMELINE Nov 23-Dec 4 Online public notice and public comment Friday, December 4 Thursday, December 10 Friday, December 11 Community Development Commission Public Hearing; Recommendation Austin City Council Meeting and action; Public may comment on agenda item Submit Substantial Amendment to U.S. Department of Housing and Urban Development (HUD) 13 Housing and Planning Department www.austintexas.gov/housing 14