HomeMy WebLinkAbout1.13.22 ARPA Status Update
Date: January 12, 2022
To: City Council
From: Rachel Kilburg, Assistant City Manager
Re: American Rescue Plan Act Update
The U.S. Treasury has allocated $18.3 million to the City of Iowa City in local fiscal recovery funds
through the American Rescue Plan Act (ARPA). The City has received its first tranche of entitled
funds (approximately $9 million) and has not yet made any encumbrances or expenditures.
On January 6, 2022, the U.S. Treasury released the Final Rule with updated eligibility guidance.
Most notably, updates to the Final Rule expanded and clarified eligible uses and added a major
simplification allowing cities to take advantage of a standard allowance of up to $10 million in
revenue loss. However, a more in-depth review and analysis of the updated guidance is underway
and City staff will keep Council apprised of notable changes that are relevant to the City’s ARPA
expenditure priorities.
Following extensive public input, at the September 7, 2021 Work Session City staff presented
initial expenditure recommendations and the City Council signaled their support for the following
expenditure priorities, categorized by emergent needs and strategic investments. A column has
been added to indicate the project status, with details on the following page(s).
Program Est. Funding Range Status
Emergent Needs:
Direct Payments to Eligible Adults $1 - $1.5 million In Development
Eviction Prevention $1 - $2 million In Development
Housing Repair / Relocation $500k - $1.5 million In Development
Emergency Non-Profit Assistance $500k - $1 million Not Started
Strategic Investments:
BIPOC Business Support Framework / Infrastructure $4 - $6 million In Development
Social Service Needs Assessment and Capital Planning
+ Seed Funding
$3 - $6 million Not Started
Affordable Housing Initiatives $2.5 - $6 million In Development
Mental Health Services $1.5 - $3 million In Development
Workforce Development $1.5 - $3 million Not Started
Climate Resiliency and Hazard Assessment Planning $500k - $3 million Not Started
Small Business, Arts, Culture, and Tourism Investments $1 - $2 million Not Started
Government Services and City Revenue Replacement $1 - $3 million Not Started
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Program Status Update: Emergent Priorities
Direct Payments to Eligible Adults Status: In Development
The pandemic had a disproportionate financial impact on low- to moderate-income individuals, many of whom were left out of federal stimulus payments intended to provide household relief. In November, the Johnson County Board of Supervisors allocated $2 million in ARPA funding to a direct payment program. Following a joint City-County work session, Council agreed to let Johnson County lead development of a direct assistance program. Over a continuing series of work sessions, Johnson County has developed a Direct Assistance Program which provides one-time $1,400 payment to Johnson County residents who faced negative economic impacts as a result of the COVID-19 pandemic. A draft of the Direct Assistance Program from Johnson County’s December 21, 2021 Work Session agenda is attached to this memo. Per the program draft, eligible applicants must have lived in Johnson County since March 1, 2020, be a legal adult, and meet the U.S. Treasury’s definition of low- to moderate-income. After a set application period, applicants will be chosen through random selection.
Next Steps: Johnson County staff intends to refine their proposal in accordance with the
recently released Final Rule and continues work on developing the program webpage,
communications plan, and application with the intention of opening the application period in
March 2022. County staff is preparing an ARPA update for the Board of Supervisors at their
January 19 Work Session.
City Council will discuss direct assistance at their January 18, 2022 Work Session and staff
will communicate any feedback from the Council to the County, as directed. Staff recommend
Council’s January 18th Work Session discussion includes a decision on financially contributing
to or supplementing the County’s Direct Assistance Program.
Eviction Prevention Status: In Development
The pandemic created and exacerbated housing instability for many populations. Iowa City,
Johnson County, and Shelter House have initiated discussion regarding an ARPA-funded
community eviction prevention program. This would extend and enhance previously allocated
federal, state, and local dollars that created new pandemic-related eviction prevention
programs in the community. That previously allocated funding has not yet been exhausted.
Additionally, it is anticipated the State may use a portion of their federal pandemic relief
funding to develop a new statewide housing initiative.
Next Steps: Conversations have temporarily paused until details on any new State housing
programs are announced.
Housing Repair/Relocation Status: In Development
City Council has communicated that relocation of the remaining Forest View Mobile Home
residents is a top priority within this expenditure use, as the pandemic has exacerbated
housing stability for this population. City staff have remained engaged with the mobile home
community tenants and the Center for Worker Justice (CWJ), who has submitted a proposal
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outlining tenant priorities for relocation assistance. City staff are reviewing the tenants’ and
CWJ’s proposal within the context of the updated Treasury guidance.
Next Steps: Staff will develop a relocation program for City Council consideration at a
February meeting with a goal of offering relocation payments by early summer 2022.
Emergency Non-Profit Assistance Status: Not Started
Many local non-profits continue to experience financial pressures, increased demand for
services, and a shortage of staff and volunteers. Earlier in the pandemic, the City contributed
federal, state, and local funds to provide emergency assistance for local non-profits. Thus, a
framework for administering emergency non-profit assistance exists.
Next Steps: Staff will develop a program proposal based on similar previous efforts. That
proposal will be forwarded to Council for consideration in the coming months.
Program Status Update: Strategic Investments
BIPOC Business Support Framework & Infrastructure Status: In Development
In November 2021, the Iowa City Area Development Group (ICAD) funded an economic
inclusion study led by Astig Planning and supported by the RE | Connect Collective. The study
aims to identify gaps in resources and opportunities for local BLIPOC businesses and
entrepreneurs. Staff anticipate this study will help inform decisions by Council and other
elected bodies on how to most effectively, strategically, and equitably invest ARPA funds to
support BLIPOC business. Additionally, staff have been engaged in conversations with
several local BIPOC business owners and entrepreneurs regarding projects and programs
related to this effort, such as a BIPOC business venture fund and a fashion design skill- and
community-building program for youth.
Next Steps: Completion of the Economic Inclusion Study is expected in June 2022. Following
completion of the study, staff will prepare recommendations for investing in a comprehensive
BIPOC business support framework and seek Council approval to solicit proposals.
Social Service Needs Assessment and Capital Planning Status: Not Started
Iowa City has held preliminary conceptual conversations with local social service agencies
regarding a comprehensive social services needs assessment. Johnson County has signaled
interest in collaboration.
Next Steps: Develop a steering committee and hold initial stakeholder meetings with local
social service agencies and other entities in spring 2022 and prepare an Request for
Qualifications (RFQ) for professional assistance in completing the needs assessment.
Affordable Housing Initiatives Status: Not Started
ARPA-funded affordable housing investments will take a multi-pronged approach, including:
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• Housing Trust Fund of Johnson County: The City has initiated discussion with the Housing
Trust Fund on their interest in administering an ARPA-funded Affordable Rental Housing
Initiative targeting projects that will secure permanent affordability.
• Other Projects: The Johnson County Board of Supervisors allocated $4 million in ARPA
funding to develop the County-owned property at 821 S. Clinton Street for affordable
housing redevelopment. Staff will continue to work with the County to identify opportunities
for collaboration.
Next Steps: Staff will present a proposed Affordable Rental Housing partnership with the
Housing Trust Fund for Council consideration in late winter or early spring of 2022.
Mental Health Services Status: In Development
A cover memo from the City Manager and a proposal from CommUnity Crisis Services &
Foodbank on expansion of Mobile Crisis Outreach in response to the COVID-19 pandemic is
included in the January 13, 2022 Information Packet. No other initiatives are planned within
this category.
Next Steps: Staff will draft a formal agreement with CommUnity in compliance with updated
federal guidance for Council consideration at a formal meeting in February or March of 2022.
Workforce Development Status: Not Started
Staff will explore partnership opportunities to invest in childcare services and workforce
development training, such as pre-apprenticeship programs. Previous conversations with the
University of Iowa Labor Center have provided an initial framework for pre-apprenticeship
programs that will target underserved populations.
Climate Resilience and Hazard Assessment Planning Status: Not Started
Final Rule guidance on resilience projects has been updated and is under review.
Small Business, Arts & Culture, and Tourism Investments Status: Not Started
Final Rule guidance on such investments has been updated and is under review. A framework
for small business assistance exists. Staff will evaluate the efficacy of this use in the context
of competing priorities and as directed by City Council.
Government Services and Revenue Replacement Status: N/A
At the September 7, 2021 Work Session, Council indicated a hesitancy to pursue revenue replacement as allowed under the ARPA statue. The Final Rule simplified the revenue replacement process, allowing a standard revenue replacement allowance of up to $10 million. This change was intended to simplify the revenue replacement option for local governments and to expand eligible uses to government services that are not enumerated or otherwise eligible in U.S. Treasury eligible use guidance. Staff encourages Council to maintain revenue replacement as a viable option as it may provide additional flexibility to meet community needs.