HomeMy Public PortalAbout13.5) CC Mtg 05-19-20 CDBG COVID-19 funds v2Community Development Block Grant Funds Resulting from the CARES Act
Community Development Block Grant Funds Resulting from the CARES Act
City Council Public Hearing
May 19, 2020
Background
March 27, 2020, President Trump signed the CARES Act resulting in new CDBG funds
April 7, 2020, Los Angeles County Development Authority (LACDA) informed Temple City that we would receive $123,206
May 5, 2020, City Council discussed programs the CARES Act CDBG funds could be used on and directed staff to return on May 19, 2020
Potential Budget
Temporary Residential Rental Assistance
Impacted during the COVID-19 pandemic (job loss, furlough, etc.)
Annual household income cannot exceed the low- or moderate-income limits established by HUD
Current lease agreement with landlord
Paperwork from the landlord (W-9, participation-payment form, etc.)
Temporary Residential Rental Assistance
Temporary Residential Rental Assistance
Based on a budget of $469,800, the entire COVID-19 relief funds available.
Temporary Residential Rental Assistance
City has the option to use up to 20 percent of the program budget on City staff salaries and benefits or consultant costs
Could pay up to $93,960 towards staff or consultant costs, leaving $375,840 for rental assistance
Small Business Assistance Program
Specifically target businesses with 25 or less employees
Active business license prior to declaration of local emergency
Physical location in a non-residential zone
Prohibited businesses: payday loan, liquor and tobacco stores, pawn shops, firearm dealers, adult entertainment, passive real estate investments, or home-based businesses
Limitations on uses of the grant
Small Business Assistance Program
Employ and retain at least one person not exceeding the moderate-income limit; staff turnover, position filled by a moderate-income or below person
Small Business Assistance Program
Based on a budget of $469,800, the entire COVID-19 relief funds available.
Small Business Assistance Program
City has the option to use up to 20 percent of the program budget on City staff salaries and benefits or consultant costs
Could pay up to $93,960 towards staff or consultant costs, leaving $375,840 for small business assistance
Potential Budget
Program
Amount
COVID-19 Relief
CARES Act CDBG Funds
$123,206
$123,206
FY 20-21 CDBG Funds
Home Rehab (Delete)
$0
Youth Scholarship (Keep)
$31,000
New program(s)
$346,594
$346,594
Sub-Total
$377,594
Total
$500,800
$469,800
Recommendation
Direct the city staff on program options for the Temporary Rental Assistance Program and, or the Small Business Assistance Program;
Give the City Manager direction on which programs to fund and how much to allocate to each program and issue a public hearing notice;
Give the City Manager direction on which programs to fund and how much of the FY 2020-2021 CDBG budget, allocating $31,000 for the Youth Scholarship Program and issue a public hearing
notice;
Recommendation
Authorize the City Manager to amend CDBG-funded programs up to 50 percent of the approved allocation; and
Direct staff to return with a recommendation on further modifying new CDBG programs appropriating unused funds from FY 2019-2020 CDBG programs, and any housing rehabilitation loans paid
back to provide additional relief related to the COVID-19 pandemic
Community Development Block Grant Funds Resulting from the CARES Act
City Council Public Hearing
May 19, 2020