That the City Council consider and approve a substantial amendment to the Fiscal Year 2019-2020 Action Plan to include a third round of Community Development Block Grant-Coronavirus (CDBG-CV3) funds to be utilized to help prevent, prepare for, and respond to COVID-19 impacts.

Pursuant to the Coronavirus Aid, Relief, and Economic Security (CARES) Act, enacted by the Federal government on March 27, 2020, CDBG-CV funds were made available to entitlement jurisdictions.  On April 2, 2020, the City of La Habra (City) received CARES Act funding from the U.S. Department of Housing and Urban Development (HUD) in the amount of $400,188 in CDBG-CV1 funds to be used to address impacts of the COVID-19 pandemic in La Habra.  These funds were submitted as the first amendment to the 2019-2020 One-Year Annual Action Plan which was approved by the City Council on May 18, 2020.  The City received a second notification of allocation of federal CARES Act funding from HUD indicating that the City will receive an additional $569,260 in CDBG funding, referred to as CDBG-CV3.  The funding is to be utilized to help prevent, prepare for, and respond to COVID-19 impacts.

Staff proposes to use the CDBG-CV3 allocation to fund social services programs administered by the Community Services Department, including programs that aid individuals at-risk of contracting COVID-19, augment rental assistance programs, and provide funding for overall program administration.  Social services program recipients include:  households at risk of eviction and/or homelessness; individuals and families exiting homelessness who need assistance; homeless shelter operations; health and education support operations, such as food distribution and health wellness events; and support for COVID-19 testing and vaccination sites.  A portion of the funds may be used to fund a counselor position within the Community Services Department.

The rental assistance program will continue to provide short-term rental assistance to households adversely impacted by COVID-19 due to job loss/termination, furlough, reduction in hours and/or pay during the eligible pandemic period (March 1, 2020 to present), and program administration.  The substantial amendment includes the following modifications:
 

Social Services Program for At-Risk Persons:                    $200,000
Rental Assistance Program:                                                $255,408
Program Administration:                                                      $113,852

If this amendment is approved, funding will be made available to eligible residents and businesses in La Habra who meet specific HUD criteria.  Although there is a limited amount of CDBG-CV funds available for these programs, Council's approval of the amendment will establish a framework for staff to follow should additional funding be made available by the federal, state or county governments in the future.  Pursuant to the City’s Citizen Participation Plan, the Community Development Department made the draft substantial amendment available for public review and comment from July 15, 2021, through July 19, 2021.  All comments received prior to the City Council meeting will be made available to the City Council for review and consideration.

There is no impact on the General Fund. The City of La Habra’s special allocation of CDBG-CV3 resources is $569,260 and is proposed to be allocated as follows: