Title
Consider a memorandum/resolution ratifying the acceptance of the HOME-ARP grant funding in the amount of $1,778,641.
Summary
DATE: January 18, 2022
TO: Kent Cagle, City Manager
FROM: Leslie Hinkle, Executive Director of Community Development
SUBJECT: HOME-ARP Grant Funding
BACKGROUND AND FINDINGS:
Through the American Rescue Plan Act of 2021, the City of Killeen was allocated $1,778,641 in HOME-ARP funding from the U.S. Department of Housing and Urban Development. Due to time constraints on accepting the grant, the City Manager executed the grant agreement on behalf of the City on November 4, 2021.
The HOME-ARP funds were allocated through the HOME formula to all cities/counties that qualified for an annual HOME allocation for FY 2021. HOME-ARP funds must be used for individuals or families from the following qualifying populations: homeless; at risk of homelessness; fleeing or attempting to flee domestic violence, dating violence, sexual assault, stalking, or human trafficking; other populations where providing assistance would prevent the family’s homelessness or would serve those with the greatest risk of housing instability; and veterans and families that include a veteran family member that meets one of the preceding criteria.
HOME-ARP funds can be used only for four basic eligible activities including the production or preservation of affordable housing; tenant-based rental assistance; supportive services, including homeless prevention services and housing counseling; and the purchase or development of non-congregate shelter for individuals and families experiencing homelessness. Additionally, HOME-ARP provides up to 15 percent of the allocation to administrative and planning costs of the City and for any subrecipient administering all or a portion of the grant. Also, HOME-ARP can provide up to 5 percent of the grant for operating costs of non-profits, including homeless providers. Additional funding is available to these organizations for capacity building. Full funding will not be available until the City has amended its FY 21 Annual Action Plan and HUD has reviewed and accepted the substantial amendment to that plan that includes this allocation of HOME-ARP funding with the required consultation processes as outlined in the attached HOME-ARP Program Fact Sheet. The deadline of expenditure of this grant funding is September 30, 2030.
THE ALTERNATIVES CONSIDERED:
1. Ratify the acceptance of HOME-ARP funding in the amount of $1,778,641
2. Do not ratify the acceptance of HOME-ARP funding in the amount of $1,778,641
Which alternative is recommended? Why?
Alternative 1 to ratify the acceptance of HOME ARP funding in the amount of $1,778,641 is recommended because it will provide funding that the City would not otherwise receive.
CONFORMITY TO CITY POLICY:
Yes
FINANCIAL IMPACT:
What is the amount of the expenditure in the current fiscal year? For future years?
N/A
Is this a one-time or recurring expenditure?
N/A
Is this expenditure budgeted?
N/A
If not, where will the money come from?
N/A
Is there a sufficient amount in the budgeted line-item for this expenditure?
N/A
RECOMMENDATION:
Ratify the acceptance of HOME-ARP funding in the amount of $1,778,641.
DEPARTMENTAL CLEARANCES:
Finance
Legal
ATTACHED SUPPORTING DOCUMENTS:
Grant Agreement
Award Letter
Fact Sheet