AgdaPkt 2020-05-04 Joint SA PFA - Laserfiche WebLink

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7.A. - Page 2 of 38 2020 Annual Action Plan (2019 Action Plan), which covers the program year from July 1, 2019 to June 30, 2020. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was enacted which made available $5 billion in CDBG Coronavirus (CDBG-CV) funding. The CDBG-CV funding is intended to immediately address novel coronavirus (COVID-19) impacts in the community. HUD allocated $2 billion of the CDBG-CV funding to existing CDBG grantees, of which the City received an allocation of $448,039, and $1 billion to states and insular areas. The remaining $2 billion in funding will be allocated based on a formula to be developed by HUD. At this time, the City does not know if it will receive an additional allocation of CDBG-CV funding. In order to immediately use the CDBG-CV funding, the City must amend its 2019 Action Plan to incorporate this new funding. HUD has also issued several waivers to expedite the use of CDBG-CV funds. These waivers include the Citizen Participation Public Comment Period for Consolidated Plan Amendment waiver, which reduces public comment period requirements, and the Citizen Participation Reasonable Notice and Opportunity to Comment waiver, which allows for virtual public hearings. Staff submitted a notification on April 16, 2020, notifying HUD of the City's intent to use both of these waivers. HUD acknowledged receipt of this notification on April 17, 2020. Although these waivers reduce the City's citizen participation obligations, the City also needs to amend its Community Participation Plan to reflect the changes permitted in the waivers. ANALYSIS The CDBG-CV funds are intended to fund CDBG-eligible activities that prevent the spread of COVID-19 and/or facilitate assistance to eligible communities and households economically impacted by COVID-19. While there are several types of CDBG-eligible activities that could address COVID-19 impacts, almost all of the CDBG regulations are still in effect including federal labor (e.g. Davis Bacon), procurement, and National Environmental Policy Act (NEPA) environmental review requirements. Therefore, it's important the City strike a balance between addressing an urgent need in the community and using the funds for a project that is feasible within the City's current staff capacity and resources. Under the CDBG regulations, short-term rental assistance (up to three months) for low-income households is an eligible public services activity. The CDBG regulations limit public service spending to 15% of the annual grant allocation however the CARES Act has suspended the public service spending cap for the CDBG-CV funds as well as 2019 and 2020 CDBG allocations. Therefore, short-term rental assistance would be an eligible use for CDBG-CV funding. Overview of the City's COVID-19 Emergency Rental Assistance Program On March 23, 2020, the City Council allocated $150,000 from Transient Occupancy Tax (TOT) from short- term rentals to expand the Fair Oaks Community Center's existing rental assistance program in order to help low-income households who have experienced income loss due to COVID-19. On April 6, 2020, the City Council directed staff to prepare a resolution allocating an additional $393,000 from the General Fund to the program. On April 27, 2020, the City Council formally adopted a resolution allocating this funding. Page 2 of 6 City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.ore