Title
Appropriate Additional Community Development Block Grant Funds for COVID-19 Response
Action
Action:
A. Adopt a budget ordinance appropriating $4,919,487 from the United States Department of Housing and Urban Development’s Community Development Block Grant in the General COVID-19 Assistance Fund, and
B. Authorize the City Manager to execute any necessary contracts related to the use of CARES Act: Community Development Block Grant funds.
Body
Staff Resource(s):
Shawn Heath, City Manager’s Office
Pamela Wideman, Housing and Neighborhood Services
Kelly Flannery, Finance
Explanation
§ In response to the COVID-19 pandemic, Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act providing the city a total of $8,434,410 in federal funding through the Community Development Block Grant (CDBG) program.
§ At its April 13, 2020 Business Meeting, City Council appropriated $3,514,923 from the first allocation of CDBG funds provided by the CARES Act.
§ A second allocation of CDBG funds from the CARES Act has been made by the United States Department of Housing and Urban Development (HUD), and this action appropriates the funds from this allocation.
§ HUD allows CDBG funds to be used for activities that build stronger and more resilient communities.
§ Proposed uses of the funding include:
- Up to $2,500,000 to partner with the Salvation Army Center of Hope (Salvation Army) to enable them to purchase a hotel.
§ The ability to purchase this facility will enable the Salvation Army to serve up to 100 families or 400 people a night. Additional benefits of this facility include:
- Bringing together homeless families who are currently scattered in hotels throughout the city due to the COVID-19 pandemic,
- Keeping families with minor children intact,
- Freeing up room in the existing Spratt Street location to house residents of the former encampment along North Tryon Street, and
- Leveraging approximately $500,000 from Mecklenburg County that has been committed for the provision of operational support including staff who will connect residents with supportive services.
- Up to $300,000 to partner with Socialserve to provide staffing for HousingCLT, including a program director and six housing navigators.
§ HousingCLT will help facilitate relationships between service-providing agencies and housing providers to ensure that eligible households avoid homelessness.
§ 315 households are expected to be assisted with housing placement.
- The remaining $2,119,487 will be used to fund additional CDBG activities as needs related to the COVID-19 pandemic are identified.
Fiscal Note
Funding: General COVID-19 Assistance Fund
Attachments
Attachment(s)
Budget Ordinance