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8.A. - Page 5 of 18 in ERAP, eligible tenants can receive direct rent assistance equal to 25% of their unpaid rent for that period. Eligible tenants will also be able to access funds to cover 25% of prospective rent for the months of April, May, and June of 2021, subject to funding availability. CDBG-CV funding can provide assistance for up to three consecutive months for any month starting from March 2020. All of the State ERAP funds must be spent by August 1, 2021. Whereas, at least 80 percent of all CDBG— CV funds must be expended no later than June 30, 2023. The City's intent is to take full advantage of the rental assistance funds provided by ERAP and for the CDBG-CV funding to provide assistance once the ERAP expenditure deadline has passed and/or to households who do not meet the 50% AMI preference requirements. Overview of the City's COVID-19 Childcare Provider Assistance Program In July 2020, San Mateo County allocated $2 million of CARES Act funds to create the Child Care Relief Fund. The program provided grants to licensed child care centers, family child care homes and license - exempt public recreation and school -district operated programs in San Mateo County that were adversely impacted by COVID-19. The program prioritized child care programs that serve the most vulnerable San Mateo County residents, demonstrate fiscal sustainability, and participate in existing County initiatives such as The Big Lift and Quality Counts. Grants covered one month of operating expenses up to $10,000 for family child care homes and $55,000 for child care centers. The application period was open from August 24, 2020 to September 4, 2020. Unfortunately, the Child Care Relief Fund was oversubscribed and not all Redwood City family child care homes were able to receive assistance. According to the State child care database, there are 69 active family child care homes in the City. Forty-six of these providers received funding through the Child Care Relief Fund, which leaves 23 providers who have not received any assistance. The pandemic has significantly impacted the child care field and the City recognizes that child care is a necessity to reopening the community and sustaining the economy. The Community Child Care Council (4Cs) of San Mateo County has proposed to replicate the County's program and offer assistance to the 23 providers who did not receive prior assistance. The COVID-19 Childcare Provider Assistance Program will provide operating assistance to low income, in-home child care providers that have fewer than five employees located in Redwood City and have been adversely impacted by COVID-19. The goal of this program is to help stabilize and sustain the availability of child care in the City. Grants will be awarded based on the equivalent of one month of operating expenses in order to stabilize existing childcare providers that have been financially impacted by COVID-19. The maximum grant amount is $10,000. Included as Attachment C is the proposed budget. This activity is an eligible CDBG activity under microenterprise assistance. All applicants must meet the microenterprise definition of a business that has five or fewer employees, one or more of whom owns the business. This program will utilize the COVID-19 related HUD waiver that allows the applicant to be considered a one-person household based on the business earnings, instead of collecting income documentation from the owner's entire household. For the City of Redwood City, the maximum income is $97,600. Page 5 of 7 ARM City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.org 376