REPORT TO THE CITY COUNCIL FROM: JENNIFER CLARK, Director Planning and Development Department BY: KAREN JENKS, Manager Housing and Community Development Division SUBJECT ..Title Actions pertaining to supplemental funding provided by the U.S. Department of Housing and Community Development Office of Community Planning and Development (HUD CPD) through the HOME Investment Partnership Program - American Rescue Plan (HOME-ARP): 1. ***RESOLUTION - Approving submission of the HOME-ARP Grant Agreement to HUD CPD and authorizing the City Manager to sign all required implementing documents (Subject to Mayor's Veto) 2. ***RESOLUTION - Adopting the 23rd amendment to the Annual Appropriation Resolution No. 2021-178 to appropriate $596,200 for HOME-ARP administrative and planning activity (Requires 5 Affirmative Votes) (Subject to Mayor's Veto) ..Body RECOMMENDATION Staff recommends the City Council approve submission of the HOME-ARP Grant Agreement to HUD CPD in order to receive the City's allocation of HOME-ARP funds, authorize the City Manager to sign all required implementing documents and adopt the 23rd amendment to the Annual Appropriation Resolution appropriating $596,200 for HOME-ARP administrative and planning activities. EXECUTIVE SUMMARY As part of the American Rescue Plan Act of 2021, HUD CPD has allocated $11.9 million in additional entitlement funds to the City of Fresno (City) through HOME-ARP to provide housing, services, and shelter to individuals experiencing homelessness and other vulnerable populations. In order to establish a Line of Credit for the HOME-ARP award, the City must sign, execute, and return the HOME-ARP Grant Agreement. The City may use up to 5% of its total award for administrative and planning costs. The City is then required to draft a HOME-ARP Allocation Plan that staff will bring back to Council for consideration and approval to submit to HUD CPD. Once the City's HOME-ARP Allocation Plan is approved by HUD CPD, the remaining award will be made available. BACKGROUND The American Rescue Plan Act of 2021 appropriated $5 billion through HUD CPD's HOME program to participating jurisdictions that qualified for FY 2021 HOME funds. The HOME-ARP funds can be used to make targeted, strategic investments in housing and other assistance for people experiencing homelessness or at imminent risk of homelessness, and other vulnerable populations. On September 23, 2021, HUD CPD sent the City an award letter indicating it was allocated $11,922,873 in HOME-ARP funding and requested that the City sign the required HOME-ARP Grant Agreement. Transmittal of the Grant Agreement does not constitute approval of any planned activities for use of HOME-ARP funds. The Grant Agreement only establishes a Line of Credit for the HOME-ARP award. Once the City submits the HOME-ARP Grant Agreement and HUD obligates the HOME-ARP funds, the City may incur and expend up to 5% ($596,143.65) of the total award amount for administrative and planning costs. In order to receive the remaining award, the City must submit to HUD for approval a HOME-ARP Allocation Plan that includes the City's planned use of the funds for approval. The City must publish its draft HOME-ARP Allocation Plan for a fifteen-day public comment review period and hold a public hearing. HUD has not issued a deadline for submitting the HOME-ARP Allocation Plan. Following participation in HUD's web-based training and office hours regarding HOME-ARP rules and requirements, staff will draft a HOME-ARP Allocation Plan, publish it for the fifteen-day public comment period, and bring an item before Council requesting it hold the required public hearing and consider approving the plan. ENVIRONMENTAL FINDINGS This item is not a project as defined by the California Environmental Quality Act and is exempt for NEPA purposes pursuant to 24 CFR 58.34. LOCAL PREFERENCE Local preference was not implemented because of the use of federal funding. FISCAL IMPACT Approval of submission of the HOME-ARP Grant Agreement is required in order for the City to receive its $11.9 million allocation of HOME-ARP funding from HUD CPD. Attachments: Resolution - Approving submission of the Grant Agreement Resolution - 23rd Amendment to the AAR No. 2021-178 appropriating $596,200 City of Fresno HOME-ARP Grant Agreement City of Fresno HOME-ARP Award Letter