Title
Appropriate Funds for Displacement Support
Action
Action:
A. Adopt a budget ordinance appropriating $3,910,215.97 from the Emergency Rental Assistance program provided by the American Rescue Plan Act of 2021 to the American Rescue Plan Act Fund, and
B. Authorize the City Manager, or his designee, to negotiate, execute, amend, and renew any documents necessary for administering the funds.
Body
Staff Resource(s):
Shawn Heath, Housing and Neighborhood Services
Explanation
* The Emergency Rental Assistance (ERA2) program provided by the American Rescue Plan Act of 2021 makes funding available to state and local governments to assist households at-risk of displacement with financial assistance and housing stability services.
* Eligible uses of ERA2 funds include housing stability and relocation expenses for low-income households (e.g., security deposits, application fees, rent payments, case management, legal services, etc.) and administrative costs.
* The American Rescue Plan Act of 2021 requires the recapture of excess funds not obligated by municipalities and other grantees for eligible ERA2 purposes, and reallocates those funds to grantees, such as the city, that have successfully obligated their original ERA2 allocations.
* On February 1, 2023, the U.S. Treasury awarded the city a new allocation of ERA2 funding through the recapture and reallocation process totaling $3,910,215.97.
* This funding will be used to support housing stability for residents with an emphasis on the city's displacement event protocol for large-scale displacement events. Per ERA2 guidelines, funds must be obligated by September 30, 2025.
Background
* On August 9, 2021, City Council appropriated $28,841,640.10 in Emergency Rental and Utility Assistance funding (ERA2) provided in the American Rescue Plan Act of 2021.
* The city utilized the ERA2 allocation to help fund the RAMP CLT rent and utility assistance program administered by DreamKey Partners. The RAMP CLT program cl...
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