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
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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.
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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.
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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
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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.