Staff and the Community Development Board recommend the City Council hold a public hearing on this substantial amendment to the Consolidated Plan and FY20-21 Annual Action Plan, consider comments, and approve the amendment and CDBG-CV budget recommendations.

Federal Funding Allocation: In April 2020, the City of Billings was awarded $386,973 in CARES Act Community Development Block Grant (CDBG-CV) funding exclusively to prevent, prepare for and respond to the coronavirus pandemic in the Billings community. Just after the U.S. Department of Housing and Urban Development (HUD) published the final rule and regulations for CDBG-CV funding in August 2020, the City was awarded an additional $522,153 bringing the total allocation to $909,126. The City must expend 80 percent of the CDBG-CV funding allocation within three years of the executed grant agreement following amendment submission to HUD. Projects and activities also must benefit low-income individuals, families, and/or neighborhoods.

Surveys, Assessment, and Community Development Board Priorities: AmeriCorps VISTA members and staff recently concluded two surveys designed to gather feedback from local community members and social service agencies regarding COVID-19 pandemic impact. The Coronavirus Community Member Survey resulted in 3,512 responses and the Service Provider Survey resulted in 26 responses. After analyzing survey data, AmeriCorps VISTA members published a detailed Community Assessment Report illustrating community member and social service agency needs relative to the pandemic (December 2020). By March 2021, the Community Development Board completed reviewing the Community Assessment and established funding priorities (see Attachment C Priorities Presentation):

· Low-Income Beneficiaries: Rent, mental health care, meal distribution, mortgage payments, internet access, utility assistance, childcare, etc. 
· Public Improvements & Facilities: Handwashing stations, additional public restrooms/cleaning, infrastructure, etc.
· Social Service Agencies & Public Health Support: Client remote access, vaccination activities, virtual service ability, exposure prevention - staff training, unmet hospital / public health needs, FEMA match, and facility social distancing.

CDBG-CV Application: City staff developed an online application process and launched the platform on April 19, 2021. Funding availability notices were extensively distributed via email, public notices, and direct contacts. The City received two applications by the May 14 deadline:
· The Salvation Army: $55,000 to purchase food and trays for the Mobile Meals program.
· Downtown Billings Business Improvement District: $117,715 for equipment and supplies to develop a new downtown public restroom and hand-washing station.

Community Development Board Recommendations: City staff must submit an amendment to HUD as soon as possible with general descriptions of projects and activities the City plans on carrying out with CDBG-CV resources. Therefore, the Community Development Board recommends the following:
· Awardees: Grant full funding awards to The Salvation Army and the Downtown Billings Business Improvement District, as submitted.
· Awardee Agreements: Documents will include amendment language to continue funding activities if community need exceeds the initial CDBG-CV allocation and /or if additional facilities can be installed. This would require full regulatory compliance with the first allocation, application submission for additional funds, Community Development Board review and recommendation, and submission to the City Council for final decision.
· CDBG-CV Administration: Twenty percent of the total CDBG-CV award ($181,825) will be allocated for staff costs and supplies necessary to carry out grant monitoring and management activities. This is a one-time allocation to fund many years of project monitoring and reporting.
· Amendment Submission Language: The CDBG-CV amendment will include the Board’s prioritized activities and projects as listed above (Low-Income Beneficiaries, Public Improvements & Facilities, Social Service Agencies, and Public Health Support). 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 three-year expenditure deadline.
· Infrastructure & Facility Projects: The Board recommends Community Development staff coordinate with other City departments to identify eligible CDBG-CV projects and activities including, but not limited to public restrooms, sanitation, handwashing stations, and other infrastructure projects.

 

Stakeholders include the community as a whole in terms of the benefits of these funds assisting Billings in addressing impacts and affects of COVID-19 in the community. While there have been multiple opportunities for public comment and participation, including the meeting tonight, the specific stakeholders and focus of the funding allocations include:

•    Low-income individuals and families benefiting from public service and public facility improvement activities.
•    Low-income neighborhood residents benefiting from facility and infrastructure improvements.
•    Public service and healthcare agencies serving low-income individuals and families by carrying out public service and facility improvement activities.

City Council may:
•    Approve the Community Development Board’s recommended CDBG-CV allocations to fund projects, with or without conditions.
•    Not approve the Community Development Board’s recommended CDBG-CV allocations to fund projects. Delays in funding allocations and amendment approval will put the City’s CDBG-CV allocation in jeopardy due to untimely submission to HUD.

An adverse financial outcome to the City is not anticipated due to the CD staff’s monitoring and management of the program and projects per HUD guidelines and requirements. The commitment of these funds will help the City to meet CDBG-CV federal timeliness requirements as well as provide needed services to the community in line with the HUD funding requirements.

Staff and the Community Development Board recommend the City Council hold a public hearing on the substantial amendment to the Consolidated Plan and FY20-21 Annual Action Plan, consider comments, and approve the amendment and CDBG-CV budget recommendations.