Item No. 1.
| MEETING DATE: July 20, 2020 |
|
| TO: | HONORABLE MAYOR AND COUNCILMEMBERS |
| FROM: | JIM SADRO, CITY MANAGER By: Andrew Ho, Community Development Director |
| SUBJECT: | CONSIDER APPROVAL OF COMMUNITY DEVELOPMENT BLOCK GRANT-CORONAVIRUS (CDBG-CV) PROGRAM GUIDELINES |
RECOMMENDATION:
That the City Council:
A. Approve the following Community Development Block Grant-Coronavirus (CDBG-CV) program guidelines:
1. La Habra Community Employment Center.
2. Micro-Business Stabilization Program.
3. Emergency Residential Rental Assistance Program.
A. Approve the following Community Development Block Grant-Coronavirus (CDBG-CV) program guidelines:
1. La Habra Community Employment Center.
2. Micro-Business Stabilization Program.
3. Emergency Residential Rental Assistance Program.
B. Approve and authorize staff to make minor changes and adjustments to program guidelines, as necessary, to reflect future potential guidance from the U.S. Department of Housing and Urban Development (HUD) to ensure programs are operated in manner that is compliant with HUD guidelines.
C. Approve and authorize staff to use other potential sources of funds for these programs, such as CARES Act funding, that may be less restrictive, if available.
D. Approve and authorize staff to release program applications when guidance from HUD for the use of CDBG-CV funds is released, or earlier if other sources of eligible funding are identified and approved by Council.
C. Approve and authorize staff to use other potential sources of funds for these programs, such as CARES Act funding, that may be less restrictive, if available.
D. Approve and authorize staff to release program applications when guidance from HUD for the use of CDBG-CV funds is released, or earlier if other sources of eligible funding are identified and approved by Council.
DISCUSSION:
Program Guidelines
As presented at the May 18, 2020, City Council meeting, staff in the Community Development Department have been working to develop program guidelines for three temporary programs to provide assistance to local residents and businesses who have been impacted financial as a result of the COVID-19 pandemic.
Attached to this are detailed program guidelines for three proposed programs: the La Habra Community Employment Center, the Micro-Business Stabilization Program, and Emergency Residential Rental Assistance Program.
La Habra Community Employment Center: $30,000
The City recently established a new program called the La Habra Community Employment Center within its Employment and Training division of the Community Services Department. This program has been designed specifically to assist adults to find and secure employment. Staff is proposing to use $30,000 of CDBG-CV funds to provide services to low and moderate-income residents negatively affected by the COVID-19 pandemic.
The program will provide the following services to approximately 45 low- and moderate-income residents:
Micro-Business Stabilization Program (MSP): $25,000
The MSP will provide grants up to $2,500 to micro-businesses (defined as businesses with five or fewer employees and owned by low- or moderate-income individuals) adversely impacted by the COVID-19 pandemic. Grants can be used for costs associated with rent, payroll, and the purchase of personal protective equipment (PPE) to enable the business to operate in a socially distanced manner. The program is estimated to assist 10 micro-businesses.
The following types of businesses are ineligible for participation in the MSP:
The ERAP will provide emergency rental assistance grants to an estimated 20 low and moderate income-eligible individuals and families economically impacted during the COVID-19 pandemic through job loss, furlough or reduction in hours or pay, residing in the City of La Habra. Emergency grants will be for rental payments made to landlords on behalf of an income-eligible applicant, in a reasonable amount determined by the City for a maximum period of three consecutive months, to maintain housing and/or to reduce rental delinquency in arrears as a result of the economic downturn during the COVID-19 pandemic.
CDBG-CV funds will be used for emergency rental payments on behalf of income-eligible individuals and families economically impacted by the COVID-19 pandemic. Monthly rental assistance is provided for a period of up to three consecutive months through direct payment to a bona fide landlord, property management agent or company for current rent, future rent, and/or to pay down up to two months of rental arrears within the three consecutive months to be addressed. The City may also use CDBG-CV funds for program implementation costs such as direct personnel and non-personnel costs.
The City will provide up to $3,000 in rental assistance per month for a period of no more than three consecutive months (total award not to exceed $9,000). For applicants with current back rent due, the total amount due must be less than two full months of rent due at the time of grant award.
Each applicant’s eligibility will be determined upon submission of a completed Program Application with all required information and documentation. Once date of application period is announced, the application period will be open for one week.
At the conclusion of the application period, the City will hold a lottery to randomly order all applications and preliminary select the individuals and families that are eligible for the ERAP. Once a family is selected, the City will conduct a review of the application to confirm eligibility and request any additional documentation.
If the number of eligible applicants do not exceed the total funding available at the close of the application period, the City will continue to operate the program on a first come, first served basis.
Program participants will be encouraged to utilize the job training and resource assistance services provided by the La Habra Community Employment Center. For further guidance on ERAP, guidelines and application are listed as attachments to this report.
If approved by Council, the Community Development Department staff will make minor changes and adjustments to the program guidelines to reflect additional guidance from the U.S. Department of Housing and Urban Development (HUD) and to ensure programs are operated in a compliant manner. The start date for these programs has not been determined because HUD has not yet released the Federal Register. The Federal Register provides additional waivers, alternative requirements, and the rules implementing CARES Act requirements. Lastly, staff recommends that other appropriate funding sources, including CARES Act funding if available, be authorized for use for these programs if HUD does not release the Federal Register for the use of CDBG-CV funds in a timely manner. As of July 13, 2020, HUD indicated that a Federal Register for these funds is forthcoming.
As presented at the May 18, 2020, City Council meeting, staff in the Community Development Department have been working to develop program guidelines for three temporary programs to provide assistance to local residents and businesses who have been impacted financial as a result of the COVID-19 pandemic.
Attached to this are detailed program guidelines for three proposed programs: the La Habra Community Employment Center, the Micro-Business Stabilization Program, and Emergency Residential Rental Assistance Program.
La Habra Community Employment Center: $30,000
The City recently established a new program called the La Habra Community Employment Center within its Employment and Training division of the Community Services Department. This program has been designed specifically to assist adults to find and secure employment. Staff is proposing to use $30,000 of CDBG-CV funds to provide services to low and moderate-income residents negatively affected by the COVID-19 pandemic.
The program will provide the following services to approximately 45 low- and moderate-income residents:
- Self Service Job Center: Residents will have access to computers and other resources to search and apply for available jobs, prepare for job interviews, and identify programs to upskill themselves for different career fields.
- Career Coach Support Sessions: Career coaches will conduct one on one, or small group sessions with residents on the job search and application process and available training programs to upskill themselves.
- Applicants must complete intake form certifying their income and COVID-19 hardship eligibility.
Micro-Business Stabilization Program (MSP): $25,000
The MSP will provide grants up to $2,500 to micro-businesses (defined as businesses with five or fewer employees and owned by low- or moderate-income individuals) adversely impacted by the COVID-19 pandemic. Grants can be used for costs associated with rent, payroll, and the purchase of personal protective equipment (PPE) to enable the business to operate in a socially distanced manner. The program is estimated to assist 10 micro-businesses.
The following types of businesses are ineligible for participation in the MSP:
- Businesses located outside the City of La Habra
- Nonprofit organizations
- Passive businesses (i.e. rental property or other business in which one does not actively participate)
- Home-based businesses
- Government organizations
- Businesses that limit patrons to 18 and older
To be eligible for MSP the following applies:
Emergency Residential Rental Assistance Program (ERAP): $200,188- Business must be a for-profit business located within La Habra and operating for at least six months prior to March 4, 2020 (the date the Governor declared a state of emergency)
- Business must certify as being low-to-moderate income using the most currently available income limits as detailed in the attached guidelines.
- Owner is 18 years old or older
- Business or owner has a DUNS number (https://fedgov.dnb.com)
- Owner has a valid employer identification number
- Business has a bank account
- Business is not currently bankrupt, and has not declared bankruptcy within the last seven years
- Business is current with property taxes, City fees, business license, and other applicable local, county, state fees and requirements
- No person who is subject to the provisions of the City’s Conflict of Interest Code has any ownership interest in the business, or would otherwise receive a financial benefit from the business
- The business must provide documentation that the business was negatively affected by COVID-19 such as documentation showing that revenue decreased as a result of COVID-19 and/or the cost of doing business increased as a result of COVID-19
The ERAP will provide emergency rental assistance grants to an estimated 20 low and moderate income-eligible individuals and families economically impacted during the COVID-19 pandemic through job loss, furlough or reduction in hours or pay, residing in the City of La Habra. Emergency grants will be for rental payments made to landlords on behalf of an income-eligible applicant, in a reasonable amount determined by the City for a maximum period of three consecutive months, to maintain housing and/or to reduce rental delinquency in arrears as a result of the economic downturn during the COVID-19 pandemic.
CDBG-CV funds will be used for emergency rental payments on behalf of income-eligible individuals and families economically impacted by the COVID-19 pandemic. Monthly rental assistance is provided for a period of up to three consecutive months through direct payment to a bona fide landlord, property management agent or company for current rent, future rent, and/or to pay down up to two months of rental arrears within the three consecutive months to be addressed. The City may also use CDBG-CV funds for program implementation costs such as direct personnel and non-personnel costs.
The City will provide up to $3,000 in rental assistance per month for a period of no more than three consecutive months (total award not to exceed $9,000). For applicants with current back rent due, the total amount due must be less than two full months of rent due at the time of grant award.
Each applicant’s eligibility will be determined upon submission of a completed Program Application with all required information and documentation. Once date of application period is announced, the application period will be open for one week.
At the conclusion of the application period, the City will hold a lottery to randomly order all applications and preliminary select the individuals and families that are eligible for the ERAP. Once a family is selected, the City will conduct a review of the application to confirm eligibility and request any additional documentation.
If the number of eligible applicants do not exceed the total funding available at the close of the application period, the City will continue to operate the program on a first come, first served basis.
Program participants will be encouraged to utilize the job training and resource assistance services provided by the La Habra Community Employment Center. For further guidance on ERAP, guidelines and application are listed as attachments to this report.
If approved by Council, the Community Development Department staff will make minor changes and adjustments to the program guidelines to reflect additional guidance from the U.S. Department of Housing and Urban Development (HUD) and to ensure programs are operated in a compliant manner. The start date for these programs has not been determined because HUD has not yet released the Federal Register. The Federal Register provides additional waivers, alternative requirements, and the rules implementing CARES Act requirements. Lastly, staff recommends that other appropriate funding sources, including CARES Act funding if available, be authorized for use for these programs if HUD does not release the Federal Register for the use of CDBG-CV funds in a timely manner. As of July 13, 2020, HUD indicated that a Federal Register for these funds is forthcoming.
FISCAL IMPACT/SOURCE OF FUNDING:
There is no impact on the General Fund. The City of La Habra’s special allocation for CDBG-CV resources is $400,188 and is proposed to be allocated to the four temporary programs as follows:
1. $30,000 for the La Habra Community Employment Center.
2. $25,000 for the Micro-Business Stabilization Program.
3. $200,188 for the Emergency Residential Rental Assistance Program.
4. $105,000 for a new "parklet" concept that will be presented to Council as a separate Public Hearing report.
5. $40,000 for program administration expenses.
1. $30,000 for the La Habra Community Employment Center.
2. $25,000 for the Micro-Business Stabilization Program.
3. $200,188 for the Emergency Residential Rental Assistance Program.
4. $105,000 for a new "parklet" concept that will be presented to Council as a separate Public Hearing report.
5. $40,000 for program administration expenses.
GENERAL PLAN RELEVANCE:
LU. 2.3 Places to Work
LU. 17.1 Adequate Community-Supporting Uses
ED. 2.1 Business Attraction
ED. 2.2 One-Stop Business Assistance
ED. 2.3 Business Attraction-Retention
H.2.8 Rehabilitation & Home Improvement Program
H.3.2 Assistance to Prevent Housing Discrimination
LU. 17.1 Adequate Community-Supporting Uses
ED. 2.1 Business Attraction
ED. 2.2 One-Stop Business Assistance
ED. 2.3 Business Attraction-Retention
H.2.8 Rehabilitation & Home Improvement Program
H.3.2 Assistance to Prevent Housing Discrimination
Attachments
- La Habra Community Employment Center Guidelines
- Emergency Rental Addendum
- Microbusiness Guidelines
- ERAP APPLICATION
- Microbusiness Application
- ERAP Guidelines