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C. 33
To: Board of Supervisors
From: John Kopchik, Director, Conservation & Development Department
Date: June  2, 2020
The Seal of Contra Costa County, CA
Contra
Costa
County
Subject: Substantial Amendment to the County’s FY 2019/20 CDBG/ESG Action Plan – Allocation of CARES Act funding

APPROVE OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE

Action of Board On:   06/02/2020
APPROVED AS RECOMMENDED OTHER
Clerks Notes:

VOTE OF SUPERVISORS

AYE:
John Gioia, District I Supervisor
Candace Andersen, District II Supervisor
Diane Burgis, District III Supervisor
Karen Mitchoff, District IV Supervisor
Federal D. Glover, District V Supervisor
Contact: Gabriel Lemus, 925-674-7882
I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown.
ATTESTED:     June  2, 2020
David Twa,
 
BY: , Deputy

 

RECOMMENDATION(S):

1. APPROVE a Substantial Amendment to the County’s FY 2019/20 CDBG/ESG Annual Action Plan to add $2,728,826 in Community Development Block Grant-Coronavirus (CDBG-CV) funds and $1,390,138 in Emergency Solutions Grant-Coronavirus (ESG-CV) funds under the Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020; and  
2. APPROVE staff recommendations for the allocation of CDBG-CV funds in the following categories:$727,687 in Food Security; $727,687 in Rental Assistance; $727,687 in Microenterprise Loan/Grant Assistance; and $545,765 in Program Administration; and  

3. APPROVE staff recommendation for the allocation of $1,390,138 in ESG-CV funds to support the Project Roomkey initiative in Contra Costa County; and  




RECOMMENDATION(S): (CONT'D)
4. AUTHORIZE the DCD Director, or designee, to execute the program certifications and applications (SF-424's) for transmittal to the U.S. Department of Housing and Urban Development (HUD); and  
5. AUTHORIZE the DCD Director, or designee, to execute CDBG-CV and ESG-CV program/project agreements with the service providers identified in this Substantial Amendment to the FY 2019/20 CDBG/ESG Annual Action Plan approved and adopted by the Board of Supervisors.

FISCAL IMPACT:

There is no General Fund impact. All funds are provided to Contra Costa County on a formula basis through the U.S. Department of Housing and Urban Development.  
  
CATALOG OF FEDERAL DOMESTIC ASSISTANCE  
CDBG - 14.218  
ESG Program - 14.231  

BACKGROUND:

The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was passed by Congress and signed by the President on March 27, 2020, in response to the harmful effects of the novel coronavirus known as COVID-19. The Department of Housing and Urban Development (HUD) has allocated $2 billion in CDBG funding and $1 billion in ESG funding under the CARES Act to eligible grantees. Contra Costa County, as a CDBG and ESG grantee, has been awarded the following CARES Act grants: 1) $2,728,826 in Community Development Block Grant-Coronavirus (CDBG-CV) funds; and 2) $1,390,138 in Emergency Solutions Grant-Coronavirus (ESG-CV) funds. Grantees may use these funds for a range of activities but the funds must prevent, prepare for, and/or respond to the coronavirus and its impacts.  
  
Due to the nature and focus of these supplemental funds, HUD is encouraging grantees for quick access to these funds to address the immediate crisis resulting from this historical health pandemic. HUD is requiring all CDBG/ESG grantees to amend their FY 2019/20 CDBG/ESG Action Plan in order to access and distribute these funds to the community.  
  
As permitted in the CARES Act, HUD is allowing the following waivers to the typical CDBG and ESG regulations due to the urgency of utilizing these funds.

- The County is not required to update the Needs Analysis sections of its 2015-2020 Consolidated Plan and its FY 2019/20 Action Plan.
- The 30-day public comment period has been reduced to a minimum of 5 days.
- The typical 15 percent Public Service cap for the CDBG Program is removed.
- The typical 60 percent Emergency Shelter Services cap for the ESG Program is removed.
- The typical 100 percent match requirement for the ESG Program is removed.
  
Grantees will be required to document that the activities funded through CDBG-CV and ESG-CV are in response to COVID-19. Staff recommends funding the following activities with the CDBG-CV and ESG-CV funds:  
  
CDBG-CV   
- Food Security/Food Assistance programs: As the economic toll of COVID-19 spreads across the community, hunger is a growing concern. Local food security programs have experienced an increase in the number of people needing food. Staff acknowledges the need to ensure residents have access to food to reduce hunger, and is recommending Loaves and Fishes, the Food Bank of Contra Costa, and Meals on Wheels Diablo Region to meet this need in our community. Each of these agencies has experience and has responded to the pandemic by increasing services since the Shelter in Place order took place.($727,687)  
- Emergency Rental Assistance: In support of the County’s Ordinance 2020-14, adopted on April 21, 2020, regarding residential evictions during the COVID-19 local emergency, staff acknowledges the need to provide financial assistance to eligible households so they can remain in their homes and avoid homelessness. Staff is recommending Shelter, Inc. to meet this critical need and to provide this assistance to support eligible households in the County. Shelter, Inc. has successfully administered such a program and has recently created a dedicated hotline for residents to call. ($727,687)  
- Microenterprise Loan/Grant Assistance: With the COVID-19 situation rapidly changing, virus containment and mitigation have become priority in every community across the County, forcing small businesses to temporarily shut down. Unfortunately, some businesses have had to permanently shut down as business has dwindled. To mitigate this economic impact, Renaissance Entrepreneurship Center (Renaissance) is providing relief to County businesses that have been greatly affected by the COVID-19 economic downturn. Renaissance will provide a loan/grant of no more than $10,000 to eligible microenterprises in the County that have been negatively impacted by COVID-19. ($727,687)  
- General Program Administration: County staff will take on additional responsibility in managing these new programs to ensure that federal requirements are met and funds are being utilized in the manner necessary to address impacts of COVID-19. The Administration line item funds the additional work. ($545,765)  
  
ESG-CV
- Project Roomkey: Congregate shelters for the homeless, where many people shelter together in one space, present a risk for quick spread of the virus. The State of California, with the support from Federal Emergency Management Agency (FEMA) funds, launched the “Project Roomkey” initiative in early April to assist communities move homeless individuals and families from existing congregate emergency shelters to hotel and motel rooms as temporary shelters. The Health, Housing, and Homelessness Division (H3) of Contra Costa County’s Health Services Department is the lead agency in managing and coordinating this effort in the County. H3 has been working with the County pursuant to the County’s Health Officer recommendation that all emergency shelter clients be moved out of congregate shelter facilities and into safe individual quarters at hotels and motels.  
  
Staff is recommending all the ESG-CV funds ($1,390,138) be allocated to H3 to support the County’s “Project Roomkey” initiative. Hotel placement is a large expense and not all individuals are covered by the limited FEMA funds to address the pandemic. Specifically, FEMA allows for partial reimbursement of funds to place high risk or COVID-19 positive individuals in temporary shelter for isolation. Due to the County Health Officer guidance, H3 is seeking additional accommodation for all other individuals at shelters who are healthy and do not otherwise qualify for the FEMA-funded placement at hotels during the course of the pandemic. The ESG-CV funds would be used by H3 to support ensuring all persons in shelters are not further displaced into literal homelessness and that the County can continue to manage the spread of the virus by placing those individuals into safe temporary shelter at hotels.

CONSEQUENCE OF NEGATIVE ACTION:

If the Substantial Amendment to the FY 2019/20 CDBG/ESG Action Plan is not approved, it would delay or jeopardize the County receiving CDBG-CV and ESG-CV to specifically address some of the negative impacts from COVID-19 experienced by many residents and households throughout the County.

CHILDREN'S IMPACT STATEMENT:

(1) Children Ready for and Succeeding in School;  
(2) Children and Youth Healthy and Preparing for Productive Adulthood;  
(3) Families that are Economically Self Sufficient;  
(4) Families that are Safe, Stable and Nurturing; and  
(5) Communities that are Safe and Provide a High Quality of Life for Children and Families.

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