Item 09 - First Amendment to Emergency Rental Assistance Program Spending Plan

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Emergency Rental Assistance Program Spending Plan & Appropriation Adjustment February 16, 2021 Page 2 4 1 9 on July 7, 2020. Finally, it is also separate from the $21.6 million in federal and state CARES Act funding that the City has received in various installments and appropriated on April 21, 2020, August 18, 2020, and December 1, 2020. In accordance with the statutory provisions in the Consolidated Appropriations Act of 2021, the Emergency Rental Assistance Program (ERAP) makes available $25 billion to assist households that are unable to pay rent and utilities due to the COVID-19 pandemic (Exhibit 1). The funds were provided directly to states, U.S. territories, local governments, and Indian tribes. Grantees must use the funds to provide assistance to eligible households through existing or newly created rental assistance programs. Not less than 90 percent of awarded funds must be used for direct financial assistance, including rent, rental arrears, utilities and home energy costs, utilities and home energy costs arrears, and other expenses related to housing. Remaining funds are available for administrative costs. Funds generally expire on December 31, 2021. An “eligible household” is defined as a renter household in which at least one or more individuals meets the following criteria: 1. Qualifies for unemployment or has experienced a reduction in household income, incurred significant costs, or experienced a financial hardship due to COVID-19; 2. Demonstrates a risk of experiencing homelessness or housing instability; and 3. Has a household income at or below 80 percent of the area median. Eligible households may receive up to 12 months of assistance, plus an additional three months if the grantee determines the extra months are needed to ensure housing stability and grantee funds are available. The payment of existing housing-related arrears that could result in eviction of an eligible household is prioritized. Assistance must be provided to reduce an eligible household’s rental arrears before the household may receive assistance for future rent payments. Once a household’s rental arrears are reduced, grantees may only commit to providing future assistance for up to three months at a time. Households may reapply for additional assistance at the end of the three-month period if needed and the overall time limit for assistance is not exceeded. A summary of information on the Emergency Rental Assistance Program by the National Community Development Association (NCDA) can be found within Exhibit 2. The Frequently Asked Questions for the program can be found within Exhibit 3. As an eligible grantee with a population greater than 200,000, the City applied for a direct allocation of these funds from the Department of Treasury on January 12, 2021, which included an agreement to comply with the statutory requirements summarized above (Exhibit 4). On January 21, 2021, our application was reviewed and approved and we received an allocation of $9,880,391. CARES funding is restricted money and the City must account for it in a special revenue fund. Accounting staff has established Fund 177 for this purpose. Staff recommends EXHIBIT 1