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RESOLUTION AMENDING THE 2019 ANNUAL ACTION PLAN TO INCLUDE $2,147,117 OF NEW CDBG-CV AND ESG-CV FUNDS FROM THE US DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD) TO UTILIZE IN RESPONSE TO THE COVID-19 EMERGENCY.
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CITY PROPOSAL:
WHEREAS, in early 2020, the community was impacted by effects of the widespread COVID-19 virus, and began to experience significant issues; including housing instability, loss of employment, business closures, and other impacts disproportionately effecting the city’s low and moderate income population; and
WHEREAS, on March 27, 2020 the federal Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law to assist communities in responding to COVID-19; and
WHEREAS, the city has been notified by HUD that it will receive $1,427,448 via the Community Development Block Grant (CDBG-CV) funding and $719,669 via the Emergency Solutions Grant (ESG-CV) funding; and
WHEREAS, the city council approved, by resolution 19-0412R, the 2019 annual action plan, part of the 2015-2019 Consolidated Plan, on June 24, 2019; and
WHEREAS, the CARES Act funding allocation is for the purpose of preventing, preparing for, responding to, and recovering from impacts arising due to the coronavirus (COVID-19) as stated by HUD; and
WHEREAS, upon approval, appropriate city officials will submit the required documentation of the substantial amendment to HUD;
NOW THEREFORE BE IT RESOLVED, that the city council hereby amends the 2019 annual action plan adopted by resolution 19-0412R to include the $1,427,448 in CDBG-CV funds and $719,669 in ESG-CV funds and the addition of new goals to assist with the prevention, preparation, response, and recovery from COVID-19.
Statement of Purpose
STATEMENT OF PURPOSE: The 2019 annual action plan was approved on June 24, 2019 by the city council after the community development committee completed an application funding round and associated public process. In March 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was passed by the US Congress and signed into law to provide additional special funding to communities already receiving Community Development Block Grant and Emergency Solutions Grant funds. Duluth is such a community, described by HUD as an “entitlement grantee.” In April 2020, the city was notified by the U.S. Department of Housing and Urban Development (HUD) that it will receive $1,427,448 in CDBG-CV funds and $719,660 in ESG-CV funds. This special allocation is being provided to communities to prevent, prepare for, respond to, and recovery from impacts arising due to the COVID-19 pandemic emergency.
Since receiving the notification of these funds, the planning and economic development department has been working to identify the emerging needs that the community is facing as a result of COVID-19. The funds from HUD are to be prioritized for low-income and moderate-income people and families. In addition to receiving direct response from individuals, businesses, and organizations that assist people in need, the city held a 7-day public comment period that lasted from April 28, 2020 to May 4, 2020, a virtual public input session that was attended by approximately 45 individuals on April 20, 2020, and a virtual public hearing on May 5, 2020. These expedited processes are allowed by HUD through new waivers that were issued as a result of COVID-19, and are outlined more fully in the May 2020 Citizen Participation Plan revisions.
Through this input on the current needs in the community, priority goals have been developed. HUD has encouraged communities to identify goals that meet the needs the community is directly experiencing from effects COVID-19 pandemic and amend the most recently approved annual action plan in order to expedite the transmittal of funds. By adopting this substantial amendment and adding these special funds and goals to the 2019 annual action plan, the city is able to submit to HUD for approval.
The next immediate step is to begin to identify specific activities and programs that are essential to meeting the needs of the community in its prevention, preparation, response to, and recovery from COVID-19. This step will likely take place, in part, through a Request for Proposal process, anticipated to begin as quickly as possible. Following identification of specific activities and partners, contracts to establish those programs will be presented to the city council for approval.