TO: Mayor and City Council
THROUGH: Steve Powers, City Manager
FROM: Kristin Retherford, Urban Development Department Director
SUBJECT:
title
Community and Business Assistance and Homelessness Prevention Program
Ward(s): All Wards
Councilor(s): All Councilors
Neighborhood(s): All Neighborhoods
Result Area(s): Good Governance; Strong and Diverse Economy; Welcoming and Livable Community.
end
ISSUE:
Information Only.
RECOMMENDATION:
Information Only.
SUMMARY:
The economic impacts of the COVID-19 pandemic are severe for many Salem businesses, community organizations, and residents most vulnerable to job loss. Staff have developed a program to provide funds to support small businesses and community organizations and to prevent homelessness. Using federal Community Development Block Grant (CDBG), City General Fund, enterprise zone fines, and a grant from Marion County, the City will be able to provide $3,473,000 million in assistance.
City funds of $488,000 will be available for award in June following City Council action on May 26. The CDBG funds of $2,985,000, including an additional amount received through the CARES act, will be awarded after two separate processes, each requiring a public hearing, City Council action, and HUD review and approval. The first of these funds are expected to be available for award in July or August, while the remainder will be available sometime between August and November, depending on Congressional and HUD action.
This information report is a high-level summary of the proposed program. Staff are working through federal requirements and will have specific information about organizations and amounts at the upcoming council meetings.
FACTS:
The City’s flexibility is limited with federal CDBG funds, including CARES, that have required approval processes and use restrictions. City funds require only City Council action and can allocated at the discretion of City Council, so staff have attempted to maximize the use of City funds for immediate assistance.
CDBG
Community Organizations $1,421,745
Emergency Mortgage, Rent, and Utility Assistance 425,000
Small Business Assistance 200,000
Grant Administration 467,250
Additional or Future allocations 470,737
$2,984,732
Community organizations include $965,000 in grants to non-profits that applied for funding through the City’s 2020 CDBG grant application process. These grants will be for programs that assist the unsheltered, prevent homelessness, retain jobs, and construct or rehabilitate affordable housing.
An additional $456,745 in CDBG funds will be recommended for grants to non-profits that have been funded by the City. These grants will be used to feed the hungry, provide case management, shelter, and utility payments.
The CDBG portion of the program includes $451,960 from the Yaquina project. This project has been significantly delayed and is not in immediate need of funds. The City risks losing CDBG funds that are not being used. The Yaquina project would be funded by the City’s 2021/2022 CDBG funds.
City
Rental Assistance and Crisis Support $149,000
Small Business Assistance 188,000
Cultural, Heritage Non-profits 25,000
Non-profit Grant Administration 35,000
Additional or Future Allocations 91,000
$488,000
Staff recommends that some CDBG and General Fund resources be retained through the end of the summer to assess and meet community needs.
Kristin Retherford
Urban Development Director