PRESENTER: Presenter
Jennifer Gates, Grants Coordinator, and/or Paula Harper, CDBG Consultant
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SUBJECT: Title
Discussion of Pending Substantial Amendment to CDBG Program Year 2019 Annual Action Plan for New CDBG-CV Activity.
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DEPARTMENT: Finance
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COUNCIL DISTRICTS IMPACTED: Citywide
BACKGROUND INFORMATION:
In 2020, the City of New Braunfels was fortunate to receive two allocations of funds to the City’s Community Development Block Grant (CDBG) grant program from the U.S. Department of Housing and Urban Development (HUD) to be used to prevent, prepare for, and respond to the coronavirus (COVID-19). The allocations were authorized by the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), Public Law 116-136, which was signed by President Trump on March 27, 2020, to respond to the growing effects of the public health crisis.
HUD’s Community Development Block Grant Coronavirus (CDBG-CV) program funds may be used for a wide range of activities that must be associated with COVID-19, and all eligible activities must meet one of the three National Objectives: 1) Benefit low to moderate-income persons, 2) Aid in the prevention of slums and blight, or 3) Meet other urgent community needs such as disaster relief. Eligible activities include, but are not limited to, emergency rent/utility assistance, food distribution, provision of testing, diagnosis, or other services at a fixed or mobile location, and provision of short-term working capital assistance to small businesses to enable retention of jobs held by low- and moderate-income persons. CDBG-CV grant funding must only be used to support residents affected by COVID-19.
In 2020, a total of $735,844 was awarded to 7 local non-profit organizations to provide a variety of public services to support the community in response to the effects of COVID-19. The currently awarded CDBG-CV subrecipients are as follows:
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APRIL 2020 CDBG-CV FUNDING: $ 243,102 ALLOCATION + $68,923 PY19 FUNDS |
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Name of Organization |
Project/Program |
Awarded |
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CASA of Central Texas, Inc. |
court advocacy services |
$ 55,600 |
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Comal County Habitat for Humanity |
housing/utility assistance |
$ 136,425 |
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Crisis Center of Comal County |
food/shelter assistance |
$ 10,000 |
|
Family Life Center |
housing/utility assistance |
$ 10,000 |
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San Antonio Food Bank |
emergency food distribution |
$ 100,000 |
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TOTAL AWARDED AMOUNT |
$ 312,025 |
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SEPTEMBER 2020 CDBG-CV FUNDING: $ 423,819 ALLOCATION |
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Name of Organization |
Project/Program |
Awarded |
|
Comal County Habitat for Humanity |
housing/utility assistance |
$ 54,912 |
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Crisis Center of Comal County |
food/shelter assistance |
$ 5,419 |
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Family Life Center |
housing/utility assistance |
$ 10,839 |
|
Hope Hospice |
staffing and PPE to support clients |
$ 122,482 |
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NB Housing Partners |
food and shelter for homeless residents |
$ 230,167 |
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TOTAL AWARDED AMOUNT |
$ 423,819 |
All funded projects have been completed as of 2023. There is a remaining balance of $70,385.64, currently awarded to a subrecipient who has respectfully requested an early termination of their contract and associated deobligation of remaining funding due to a decreased demand of COVID-related services. After considerable discussion, City staff is recommending that the funding be awarded to a subrecipient that will provide mental health services to those affected by COVID-19. All funding must be utilized by June 2026.
To formalize a reallocation of funding, it is necessary to submit an amended CARES Act Substantial Amendment to the Program Year 2019 (PY19) Annual Action Plan to HUD with the following requested updates:
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Name of Organization |
Currently Approved Amount |
Revised Award Amount |
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Hope Hospice |
$ 70,385.64 |
$ 0 |
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River City Advocacy, Inc. |
$ 0 |
$ 70,385.64 |
HUD typically requires a 30-day comment period for the Substantial Amendment process; however, HUD has reduced the public comment period for CARES Act Substantial Amendments to 5 days to expedite the availability of funding to communities. The comment period for the CARES Act Substantial Amendment is December 8 to December 12, 2023. A public hearing will occur on December 11 during the regular City Council meeting to allow citizens to comment on the information proposed in the CARES Act Substantial Amendment to the approved CDBG PY19 Annual Action Plan.
A full draft of the amendment is available for review at the City Secretary’s Office at the New Braunfels’ City Hall, at the New Braunfels Central Public Library, at the New Braunfels Public Library - Westside Branch, and on the City’s CDBG website during this timeframe.
ISSUE:
This item supports the City’s Strategic Priorities as follows:
20. Protect the integrity of our neighborhoods.
FISCAL IMPACT:
Not applicable.
Recommendation
RECOMMENDATION:
Not applicable.