Staff and the Community Development Board recommend the City Council hold a public hearing on a substantial amendment to the FY21-22 Annual Action Plan, consider comments, and approve the amendment and HOME-ARP Allocation Plan. The plan must be submitted to U.S. Department of Housing and Urban Development (HUD) by March 31, 2023. 

Federal Funding Allocation: In September 2021, the City of Billings was awarded $1,211,321 in HOME Investment Partnership Program – American Rescue Plan (HOME-ARP) funding to serve individuals and families from the following qualifying populations: homeless; at-risk of homelessness; fleeing or attempting to flee domestic violence, dating violence, sexual assault, stalking, or human trafficking; other populations where providing assistance would prevent the family’s homelessness or would serve those with the greatest risk of housing instability; and veterans or families that include a veteran family member meeting the preceding criteria. Funds may be used for the following eligible activities: administration and planning, non-profit operating / capacity building, the production or preservation of affordable housing, tenant-based rental assistance, the development or purchase of non-congregate shelter, and supportive services. The City must expend the funding allocation by September 30, 2030.  

Survey, Needs Assessment & Gaps Analysis, and Community Development Board Priorities: City staff administered a survey designed to gather feedback from local social service agencies to establish community needs, identify gaps relative to homelessness, and engage consultation partners in the allocation planning process. The City of Billings HOME-ARP Survey resulted in 26 responses. After analyzing survey data and local housing inventory data, staff published a detailed HOME-ARP Allocation Plan illustrating the needs assessment and gaps analysis relative to the qualifying populations and eligible activities (February 2023). By March 2023, the Community Development Board completed reviewing the HOME-ARP Allocation Plan and established funding priorities:  

• Supportive Services: Child care, education services, employment assistance and job training, food, housing search and counseling services, legal services, life skills training, mental health services, outpatient health services, outreach services, substance abuse treatment services, transportation, case management, mediation, credit repair, landlord / tenant liaison, services for special populations, financial assistance costs (rental application fees, security depositions, utility deposits, utility payments, moving costs, first and last month’s rent, payment of rental arrears), and short-term and medium-term financial assistance for rent.
• Non-Profit Operating: General operating costs of the nonprofit organization include: employee salaries; wages and other employee compensation and benefits; employee education; training and travel; rent; utilities; communication costs; taxes; insurance; equipment; materials; and supplies.
• Administration & Planning: Overall HOME-ARP program management, coordination, monitoring, and evaluation through year 2030. 

HOME-ARP Application: City staff plans to develop an online application process in the Spring of 2023. Funding availability notices will be distributed via email, public notices, and direct contacts, especially targeted to survey respondents and social service agencies serving qualifying populations.  
 
Community Development Board Recommendations: City staff must submit an amendment to HUD as soon as possible with the HOME-ARP Allocation Plan outlining the City’s plans to carry out eligible activities with HOME-ARP resources. Therefore, the Community Development Board recommends the following:  

• Awardees: Grant full funding awards to eligible nonprofit organization(s) that will carry out activities as prioritized and identified in the HOME-ARP Allocation Plan.  
• Awardee Agreements: Documents will include language to carry out funding activities in compliance with the HOME-ARP program. Nonprofit subrecipient(s) administering funds will be monitored by City staff.  The Community Development Board will review applications for funding and provide recommendations, prior to submission to the City Council for final decision.  
• HOME-ARP Administration: Fifteen percent of the total HOME-ARP award ($181,698) will be allocated for staff costs and supplies necessary to carry out eligible activities, grant monitoring, and management activities. This is a one-time allocation to fund many years of project monitoring and reporting.  
• Amendment Submission Language: The HOME-ARP amendment will include the Board’s prioritized activities and projects as listed above (Supportive Services). This will enable the Board to maintain compliance with HUD’s current amendment submission deadline. They can also reopen the application process later on this year and in future years to meet the expenditure deadline.  

· Individuals and families that meet the criteria of the qualifying populations as outlined in the HOME-ARP program benefiting from supportive service activities.
· Public service and healthcare agencies serving the qualifying populations as outlined in the HOME-ARP program by carrying out supportive service activities.

City Council may:

• Approve the HOME-ARP Allocation Plan; or,
• Not Approve the HOME-ARP Allocation Plan. Delays in approval will put the HOME-ARP allocation in jeopardy due to untimely submission to HUD.