Report to Mayor and City Council
Tuesday, October 06, 2020
Consent
SUBJECT:
Title
CITY OF CARSON EMERGENCY RENTAL ASSISTANCE PROGRAM UPDATE (CITY COUNCIL)
Body
I. SUMMARY
On June 23, 2020, the City Council approved City of Carson’s Emergency Rental Assistance (ERA) program and allocated $264,819 in CDBG-CV (CARES Act) funds to assist low- and moderate-income Carson residents facing imminent threat of eviction as a result of loss of income related to the pandemic. In addition, according to HUD regulations, all senior citizens are presumed to be of low- and moderate income, therefore, and are eligible to apply for this assistance. Eligible households could receive up to a maximum of three months, with a maximum monthly assistance of $1,000 for a total of $3,000. Assuming assistance of $3,000 per household, the allocated funds could assist a maximum number of 88 households in Carson. Applicants must meet income qualifications and demonstrate financial impacts as a result of COVID-19. Examples include, but are not limited to, loss of employment, reduction of work hours, or reduced wages.
On August 14, 2020, the program was made public through a press release and also advertised through City’s website and social media outlets. The application submission period for the program was between August 14, 2020 and September 10, 2020.
To date, the City has received twenty three (23) applications. Upon review of the applications, staff has determined that none of the applicants had submitted all of the required documents to determine their eligibility, including but not limited to tax returns, employment verification, identification, income verification, etc. Staff is currently communicating with the applicants to assist them in submitting their missing documents. Given the number of applications received is significantly less than the funding available, even if all current applicants receive funding, staff has extended the application deadline to October 29, 2020.
The diligent follow-up with the current applicants to complete their paperwork is necessary because the U.S. Department of Housing and Urban Development (HUD) has strict guidelines in reviewing applications that need to be followed. Therefore, applications cannot be approved and funded until all requirements are met. After all submittal requirements are received by staff, the internal application review process and funding can proceed.
The City will continue to advertise this program in various ways including notification through the Carson Report (to be distributed this week) and through placing flyers in the Grab and Go Meals program, and additional press releases.
II. RECOMMENDATION
Recommendation
RECEIVE AND FILE
Body
III. ALTERNATIVES
TAKE another action the City Council deems appropriate.
IV. BACKGROUND
The CARES Act authorized $2.2 trillion in a first wave of stimulus measures to counter the nationwide effect of the COVID-19 pandemic. Included in that legislation was $2 billion for CDBG entitlement communities to enable them to prevent, prepare for, and respond to the effects of the pandemic. Carson’s share of this supplemental CDBG funding is $472,890.
HUD recognized that the onset of the COVID-19 pandemic place operational disruptions on local governments at a time most of them were in the midst of developing their 2020-21 Annual Action Plans, a process further complicated by passage of the CARES Act. HUD provided for expedited review of CDBG-CV funding allocations if they were submitted as Substantial Amendments to the existing 2019-20 Annual Action Plans. Therefore, staff prepared a Substantial Amendment to both the existing annual action plan and Five-Year Consolidated Plan approved by City Council at the June 23rd City Council meeting which were preliminarily approved by HUD on August 12th and officially approved on September 8th. As stated earlier, staff prepared all application materials that meet HUD requirements and made them available to residents on August 14, 2020.
V. FISCAL IMPACT
NONEVI. EXHIBITS
NONE
Prepared by: Saied Naaseh, Community Development Director, Debra Scott, Community Development Department