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HomeMy WebLinkAboutARPA Update 12.1.22 Date: December 1, 2022 To: City Council From: Cassandra Gripp, Grants 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 spent or encumbered approximately $4.8 million to-date. At the Sept. 7, 2021 Work Session, City Council signaled their support for the following expenditure priorities, categorized by emergent needs and strategic investments: Program 2021 Est. Range Funded Status Emergent Needs: Direct Payments to Eligible Adults $1 - $1.5 million $1.18M – Direct Assistance Complete Eviction Prevention $1 - $2 million -- In Progress Housing Repair / Relocation $500k - $1.5 million $1.2M – Forest View In Progress Emergency Non-Profit Assistance $500k - $1 million $485K – Non-profit grants In Progress Strategic Investments: BIPOC Business Support Framework / Infrastructure $4 - $6 million -- In Development Social Service Needs Assessment, Capital Planning & Seed Funding $3 - $6 million -- In Development Affordable Housing Initiatives $2.5 - $6 million -- In Development Mental Health Services $1.5 - $3 million $939K – Mobile Crisis In Progress Workforce Development $1.5 - $3 million $100K – Childcare Navigator $435K (pending) – Pre- Apprenticeship Program In Development Climate Resiliency and Hazard Assessment Planning $500k - $3 million -- Not Started Small Business, Arts, Culture, and Tourism Investments $1 - $2 million $250K – Think Iowa City In Progress Government Services and City Revenue Replacement $1 - $3 million $676K – Utility Replacement In Progress Total 2021 Estimated Funding Range: $18 - $38 million City’s Total ARPA Allocation: $18,325,190 Total ARPA Funds Encumbered: $4,834,299.68 ($5,269,538 pending approval of UI Labor Center) Total Unencumbered ARPA Funds: $13,490,890.32 December 1, 2022 Page 2 Program Status Update: Emergent Priorities Direct Payments to Eligible Adults Status: Complete Amount Funded: $1,184,071.19 The Johnson County Direct Assistance Program received 2,238 eligible applications from throughout Johnson County. In accordance with the subrecipient agreement, Johnson County funded the first 1,428 applicants and the City of Iowa City funded the remaining 472 eligible applicants residing in Iowa City. These 1,919 Direct Payment checks were distributed on July 22, 2022. Johnson County reported an additional 319 eligible applicants residing outside of Iowa City were not selected for funding. City Council members agreed to fund the remaining 319 eligible applicants. In total, the City of Iowa City funded 791 Direct Payments to eligible adults. Eviction Prevention Status: In Progress The pandemic created and exacerbated housing instability for many populations. Iowa Legal Aid and Shelter House have developed a proposal for an ARPA-funded community eviction prevention program that would extend and enhance previously allocated federal, state, and local dollars that created new pandemic-related eviction prevention programs. Next Steps: The proposed program is under review by City staff and Iowa Legal Aid and Shelter House are pursuing potential partnership opportunities with Johnson County. Forest View Relocation Status: In Progress Amount Funded: ~$1.2 million The Center for Worker Justice is working directly with residents in search of safe, affordable housing opportunities and updates City staff on the housing status of each household monthly. As of December 1, 2022: • 60 households have vacated and received the full relocation amount. • 20 households have received the 1st check and remain at Forest View o At least 17 of these households are anticipated to vacate prior to the December 9th deadline. The CWJ is assisting with helping these remaining households. Next Steps: All tenants must vacate the mobile home park by December 9, 2022 in order to be eligible for the second relocation payment. Emergency Non-Profit Assistance Status: In Progress Amount Funded: $485,000 Applications were reviewed and $400,000 in funding recommendations were approved by City Council at the October 18, 2022 meeting. Twelve non-profit agencies were awarded funding. Staff is working on completing all agreements with grantees at this time. Next Steps: Staff will monitor each project monthly and provide quarterly updates. December 1, 2022 Page 3 Wage Theft Status: Underway Amount Funded: $85,000 The Center for Worker Justice has proposed an expanded campaign to confront wage theft and promote worker rights through the hiring of a full time Wage Theft Organizer. Funding commitments have been obtained from Johnson County, Coralville, and North Liberty. In June 2022, Council directed staff to prepare an agreement with the CWJ for $85,000 over five years for wage theft services in coordination with other local entities’ commitments. An agreement has been signed and next steps are pending technical assistance. Next Steps: Staff will monitor the project and provide necessary technical assistance. Program Status Update: Strategic Investments BIPOC Business Support Framework & Infrastructure Status: In Development The Iowa City Area Development Group (ICAD) funded an economic inclusion study led by Astig Planning to identify gaps in resources and opportunities for local marginalized businesses and entrepreneurs. The study was completed and presented to Council in September 2022. Additionally, City staff have been engaged in conversations with several local BIPOC business owners and entrepreneurs regarding projects and programs related to this effort. Next Steps: Based upon the findings of the Inclusive Economic Development Plan, City staff will prepare a framework for Council consideration for investing in inclusive business and economic support programs using ARPA funds. Social Services Capital Funding Program Status: In Development Council agreed to staff proceeding with a non-profit capital grant program. Staff has developed a framework to gauge agency interest and solicit project proposals, which is included in the December 1, 2022 Information Packet. Next Steps: Staff will proceed based on Council feedback of the proposed framework to be discussed at the December 6, 2022 Work Session. Affordable Housing Initiatives Status: Not Started ARPA-funded affordable housing investments will take a multi-pronged approach, including: • 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. December 1, 2022 Page 4 Next Steps: Staff is reviewing this item in relation to the Council’s new Strategic Plan and will bring forward recommendations in the First Quarter of 2023. Mental Health Services Status: In Progress Amount Funded: $939,082 City Council approved a subrecipient agreement with CommUnity at the February 15, 2022 meeting to expand Mobile Crisis Outreach in response to the exacerbated mental health impacts of the pandemic. To date, CommUnity has hired three full-time counselors, purchased eight vehicles, and completed the remodel of the physical office space. Next Steps: Staff will continue to monitor this agreement and will report as appropriate to City Council on the outcomes of this investment. Workforce Development & Childcare Status: In Development Amount Funded, Childcare Navigator (4Cs): $100,000 Amount Funded (anticipated 12/6/22), Pre-Apprenticeship Program (UI Labor Center): $435,239 Workforce Development: An $435,239 agreement with UI Labor Center for a pre-apprenticeship program targeting underserved populations in the building and construction trades will be considered at the December 6, 2022 City Council meeting. Childcare: In June, 4Cs and the Iowa City Area Business Partnership presented an update on regional childcare efforts and needs to City Council and recommended Council consider funding a childcare navigator position. 4Cs applied for this funding during the Nonprofit Operating Assistance funding round, however Council agreed with staff recommendation that the proposal be funded through the Workforce Development initiatives. 4Cs was awarded $100,000 in ARPA funds for the navigator initiative. Agreements are pending. Additionally, staff are in discussion with Johnson County and the Iowa City Area Business Partnership along with other community partners about a potential childcare wage supplement program, which would be brought to City Council for consideration as the proposal is refined. Next Steps: Pending approval by the City Council at the December 6, 2022 formal meeting, staff will work with the UI Labor Center to implement and monitor the award. Future childcare programs will be brought before the City Council in the coming months. Climate Resilience and Hazard Assessment Planning Status: Not Started Given demands in other ARPA priority areas, this project may need to be deferred for funding with local dollars. Staff will place this on hold until other priority areas are completed. Small Business, Arts & Culture, and Tourism Investments Status: In Progress Amount Funded: $250,000 At the June 6th City Council meeting, Council approved an agreement with Think Iowa City to replace $125,000 in lost hotel/motel tax revenue due to COVID-19 and to develop and administer December 1, 2022 Page 5 a $125,000 tourism and visitor recovery grant program to spur tourism and economic activity in the Iowa City area. Of the $125,000 available through the grant program, Think Iowa City has awarded four projects to date: • $7,500 to the Iowa Golden Gloves to host the 2023 Iowa Golden Gloves Championships boxing tournament in Iowa City, organized by the ICOR Boxing Club. • $15,000 to the Refocus Film Festival hosted by FilmScene in Iowa City. • $30,000 to the Iowa City Downtown District to host the Winter Night Lights light display and winter programming in downtown Iowa City. • $5,000 to EntreFEST to host a two-day entrepreneurship and innovation conference in downtown Iowa City in June 2023. Additionally, in collaboration with Iowa City, Coralville, and the University of Iowa, Think Iowa City submitted a river activation proposal to the state ARPA-funded Destination Iowa tourism grant program. A decision on the application is pending, but if the proposal is awarded, some local ARPA dollars may be needed for local match to this program. Next Steps: Staff will continue to monitor the existing local tourism grant program and status of the Destination Iowa grant application and report to Council accordingly. Further assistance programs in this priority area will be considered in 2023. Government Services and Revenue Replacement Status: N/A Utility Assistance Program Council approved the resolution authorizing Utility Billing Revenue Replacement on September 6, 2022 meeting, bringing utility accounts current as of June 1, 2022 and resuming regular collections procedures. Revenue Replacement 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.