Request for Committee Action
A briefing memo explaining the purpose, background, and impact of the requested action.
Coronavirus Aid, Relief, and Economic Security (CARES) Act Community Development Block Grant (CDBG) Joint Powers Agreement with Hennepin County Amendment (RCA-2023-00778)
ORIGINATING DEPARTMENT
To Committee(s)
| # | Committee Name | Meeting Date |
|---|---|---|
| 1 | Business, Inspections, Housing & Zoning Committee | August 22, 2023 |
Action Item(s)
| # | File Type | Subcategory | Item Description |
|---|---|---|---|
| 1 | Action | Contract/Agreement | Authorizing an amendment to the Coronavirus Aid, Relief, and Economic Security (CARES) Act Community Development Block Grant (CDBG) Joint Powers Agreement with Hennepin County for Avivo Village operations to extend the spending deadline from December 2024 to December 2025. |
Previous Actions
2022-00948 - City/County Joint Strategy to Respond to Homelessness
Ward / Neighborhood / Address
| # | Ward | Neighborhood | Address |
|---|---|---|---|
| 1. | All Wards |
Background Analysis
Hennepin County and the City of Minneapolis jointly work together to administer the homelessness response system in Hennepin County. Hennepin County acts as the lead entity in setting strategy and providing services, while the City supports the effort by working to build permanent supportive housing, supporting shelter capital improvements, and directing federal funds that it receives for responding to homelessness, in consultation with Hennepin County and community partners. The City and County, together with state, nonprofit and philanthropic partners, have fundamentally reshaped the homelessness response system since the start of the pandemic in March 2020.
During the COVID-19 pandemic, Hennepin County saw an increase in homelessness among single adults. Family homelessness remained stable or low because of the eviction moratorium and influx of emergency rental assistance, but it has increased starting in summer of 2022 due to the end of eviction restrictions. Minneapolis saw an increase in the number of encampments in 2020 due to COVID-19 related rules that prohibited local governments from closing encampments and due to a Minneapolis Parks and Recreation Board (MPRB) resolution that permitted encampments in City parks.
The City and County received significant COVID response funds from the federal government to assist with responding to these conditions. Together, the City and County invested more than $200 million across the homelessness response system, including for the development of Avivo Village, a first-of-its-kind, indoor community of 100 secure, private dwellings or “tiny houses” that provides shelter and wraparound services to individuals experiencing unsheltered homelessness.
The City previously provided two grants for Avivo Village shelter operation in 2020 and 2021. In October 2022, Council approved a new grant of up to $1,200,000 in Coronavirus Aid, Relief, and Economic Security (CARES) Act Community Development Block Grant (CDBG-CV) funds for Avivo Village shelter operations, which is managed by Hennepin County pursuant to a Joint Powers Agreement with the City, with a condition that the funds be used by the end of 2024. Following execution of this JPA, the County indicated that they need a longer term in which to spend down the funds. The primary reason for the request is Avivo received some funding from the State that can support their 2024 activities. The federal deadline for spending the CDBG-CV funds is June 30, 2026. Staff is confident that the proposed amendment will not put the City at risk of grant compliance. Staff is recommending an amendment to the JPA with Hennepin County to allow the funds to be used through December 2025.