File #: 20-0578R    Name:
Type: Resolution Status: Passed
File created: 7/10/2020 In control: Planning and Economic Development
On agenda: 7/20/2020 Final action: 7/20/2020
Title: RESOLUTION AUTHORIZING A REQUEST FOR THE US DEPARTMENT OF HOUSING AND URBAN AND DEVELOPMENT (HUD) EMERGENCY GRANT SOLUTIONS (ESG-CV-1) AUTHORIZED BY CORONAVIRUS AID, RELIEF, AND ECONOMIC SECURITY ACT (CARES ACT), AUTHORIZING AGREEMENTS WITH APPROPRIATE AGENCIES.

Title

RESOLUTION AUTHORIZING A REQUEST FOR THE US DEPARTMENT OF HOUSING AND URBAN AND DEVELOPMENT (HUD) EMERGENCY GRANT SOLUTIONS (ESG-CV-1) AUTHORIZED BY CORONAVIRUS AID, RELIEF, AND ECONOMIC SECURITY ACT (CARES ACT), AUTHORIZING AGREEMENTS WITH APPROPRIATE AGENCIES.

 

Body

CITY PROPOSAL:

 

                     WHEREAS, the CARES Act was signed in to law on March 27, 2020 for the specific purpose of preventing, preparing for, responding to, and recovering from the impacts arising due to the coronavirus (COVID-19) as stated by HUD; and 

WHEREAS, city council resolution no. 20-0417R, adopted May 11, 2020, approved amendment to the FY 2019 annual Action Plan portion of the 2015-2019 Consolidated Plan to include $2,147,117 of new CDBG-CV-1 and ESG-CV-1 funds from the US Department of Housing and Urban Development (HUD) to utilize in response to the COVID-19 emergency; and

WHEREAS, the secretary of HUD is authorized to make grants to cities and counties to finance local community development programs, approved in accordance with the provisions of Title I of said Act, as well as grants under the Cranston-Gonzales National Affordable Housing Act of 1990, as amended, (the HOME program) and the Stewart B. McKinney Homeless Assistance Act of 1987, as amended (the Emergency Solutions Grant - ESG - program);

WHEREAS, the city has been notified by HUD that it will receive $719,669 from the Emergency Solutions Grant (ESG-CV-1) program funding, and has held a public hearing and opened a public comment period to receive public comment regarding said funding in accordance with HUD regulations.

NOW, THEREFORE, BE IT RESOLVED, that the proper city officials are hereby authorized to make and submit appropriate documentation to HUD for those projects and corresponding funding levels as set forth below:

EMERGENCY SOLUTIONS GRANT CORONAVIRUS FUNDS (ESG-CV-1) - FUND 262, AGENCY 020, OBJECT 5434, PROJECT CD20ES-CV1

SUB PROJECT

ACTIVITY

AMOUNT

PROJECT NAME

ES

TBD

$95,900

Improving Sanitation in the CHUM Shelter and Drop-In Center CHUM

ES

TBD

$50,000

Family Coach Position at the Steve O'Neil Apartments CHUM

ES

TBD

$43,000

Legal Hotline- Legal Aid Service of Northeastern MN

ES

TBD

$200,000

Shelter Expansion for Vulnerable Population-CHUM

ES

TBD

$68,840 

HRA Eviction Prevention Program- Housing & Redevelopment of Duluth, MN

 

 

$71,966

Program Administration  City of Duluth

 

BE IT FURTHER RESOLVED, that the following is hereby designated as the financial resources for the above program:

SOURCE OF FUNDING

$719,669

TOTAL ESG-CV -1

$529,706

ALLOCATED BY THIS RESOLUTION

$189,963

RESERVE FUNDS FOR EMERGING NEEDS

 

BE IT FURTHER RESOLVED, that the City of Duluth and its officials are authorized and directed to assume full responsibility for assuring that its community development program is carried out in full compliance with the provisions of the acts implementing the programs and all regulations of HUD issued pursuant thereto.  This authorization shall also apply to existing programs with the city and HUD under the HUD CDBG, HOME and ESG programs.

BE IT FURTHER RESOLVED, $189,963 in ESG CV-1 funds are to be reserved to allow City Staff to further evaluate the impacts of the COVID-19 pandemic and proceed with recommending additional projects.

BE IT FURTHER RESOLVED, that the appropriate city officials are authorized to execute the appropriate agreements with these agencies upon receipt of approval of HUD funds.

Statement of Purpose

STATEMENT OF PURPOSE:  The projects and funding amounts were arrived at after the city conducted public input processes and a request for proposal processes. The Planning and Development Division solicited comments from organizations and residents as related to the needs of COVID-19 and the special HUD allocation of CDBG-CV and ESG-CV funds. A public hearing was held on May 05, 2020. There was a HUD approved shortened 7-day public comment period from April 28, 2020, to May 04, 2020 and a virtual input session held on April 20, 2020 to identify community needs related to COVID-19. The recommendations contained in this resolution were developed based on public input, deliberations of the RFP Evaluation Committee, proposal eligibility, and staff recommendations.

Source of Funds:

$719,669 in ESG-CV-1 funds

The resolution, in addition to authorizing application for grant funds and administration of same when received, also takes the following actions:

                     (a)                     Allocates funds by project for the ESG-CV-1 Allocation.

                     (b)                     Authorizes contracts for the activities upon receipt of the funding contract and completion of the environmental review process

CV-1-ES-01

Project Name: Improving Sanitation in the CHUM Shelter and Drop-In Center- CHUM

Project Summary: Upgrading the hygiene, bathroom and kitchen facilities at the CHUM’s Emergency Shelter, the current situation has become more critical due to COVID-19.

Goal: 1 Facility

Amount Recommended: $ 95,900

 

CV-1-ES-02

Project Name:  Family Coach Position at the Steve O'Neil Apartments- CHUM

Project Summary:  Increase staff capacity at the Steve O’Neil Apartments to address the effects of COVID-19 on families

Goal: 200 people

Amount Recommended: $ 50,000

 

CV-1-ES-03

Project Name:  Legal Hotline- Legal Aid Service of Northeastern MN

Project Summary:  Providing legal services to LMI households who have been affected by COVID-19

Goal: 975 people

Amount Recommended:  $43,000

 

CV-1-ES-04

Project Name: Shelter Expansion for Vulnerable Population-CHUM

Project Summary: A 6-month pilot program to extend the lease for the use of the Duluth Inn as a preventative shelter during the COVID-19 pandemic

Goal: 25 people

Amount Recommended: $ 200,000

 

 CV-1-ES-05

Project Name: HRA Eviction Prevention Program- Housing & Redevelopment of Duluth, MN

Project Summary: Funding will be used to prevent evictions of public housing residents by paying their late and/or unpaid rent and/or utility bills that occurred due to the COVID-19 pandemic.

Goal: 145 households

Amount Recommended: $68,840

 

CV-1-AD-02

Project Name: Program Administration- City of Duluth

Project Summary: Funding will be used to administer the ESG-CV-1 funds.

Goal: Administration

Amount Recommended: $71,996