Request for Committee Action
A briefing memo explaining the purpose, background, and impact of the requested action.
2020 Community Development Block Grant Supplemental Funding (CDBG-CV) funding recommendations (RCA-2020-00982)
ORIGINATING DEPARTMENT
To Committee(s)
| # | Committee Name | Meeting Date |
|---|---|---|
| 1 | Business, Inspections, Housing & Zoning Committee | October 6, 2020 |
Action Item(s)
| # | File Type | Subcategory | Item Description |
|---|---|---|---|
| 1 | Action | Grant | Approving up to $1,972,950 in Coronavirus Aid, Relief, and Economic Security (CARES) Act Community Development Block Grant (CDBG) funds for operations for the Indoor Villages project, to be operated by Avivo, conditioned on the project receiving all necessary zoning and licensing approvals and operating funding necessary to open by December 31, 2020. |
| 2 | Action | Contract/Agreement | Authorizing contracts and agreements with Avivo for the shelter operations for Indoor Villages. |
Ward / Neighborhood / Address
| # | Ward | Neighborhood | Address |
|---|---|---|---|
| 1. | Ward 3 | North Loop |
Background Analysis
Background
Under the 2020 Coronavirus Aid, Relief, and Economic Security (CARES) Act, the federal government, through the U.S. Department of Housing and Urban Development (HUD) awarded the City of Minneapolis supplemental Community Development Block Grant (CDBG-CV) funding to prevent, prepare for, and respond to the coronavirus.
In April 2020, the City of Minneapolis received notice of supplemental funding of $6,642,950 in CDBG-CV funds. The City's 2020 Consolidated Plan Action Plan was amended in June to account for this additional funding, and the Grant was approved by Council on July 17, 2020. Under statute all CDBG programming must address one of three national objectives: 1) Low/Moderate Income (Housing, Jobs, Limited Clientele), 2) Slum/Blight (Spot or Area Basis), and 3) Urgent Need. A minimum of seventy (70%) of all CDBG spending must address the Low/Moderate Income benefit. Activities deemed as eligible with CDBG-CV funding include: public facilities improvements, assistance to businesses, affordable housing, quantifiable increases to public services, planning, capacity building, and technical assistance.
The CDBG-CV funding has been designated for a variety of coronavirus response efforts, including public health, business support and housing and homelessness response. Through an amendment to the Consolidated Plan pending before this Committee, operating support for emergency shelters can been added as a designated use for these funds.
The City Council has previously approved the use of CARES Act Emergency Solutions Grant (ESG-CV) funds for a 50 bed culturally specific shelter for Native Americans, a 30 bed women's shelter, and a 30 bed medical respite shelter. In addition to funding for these three projects, the City and County issued a joint request for proposals (RFP) in July for community proposals for ESG-CV funds for emergency shelter, street outreach, rapid re-housing and homelessness prevention. After thorough review by city and county staff, community partners and people with lived experience of homelessness, the City and County committed funding for additional street outreach capacity, a new shelter diversion program, and funding to ensure that the existing emergency shelters can remain open 24 hours per day, 7 days per week in a COVID safe manner for the next two years. The Indoor Villages proposal was not yet ready to apply for the ESG RFP, but has progressed since publication of the RFP.
Indoor Villages
The Indoor Villages project will be a low barrier shelter for people experiencing homelessness. The model is unique in that it will be comprised of 100 tiny shelters located inside a warehouse building. Each resident will have their own individual living space. The program is intended to create a safe, secure and service-rich environment where residents can connect with wrap-around services designed to connect people to permanent housing. Indoor Villages is a model that is well designed for the COVID-19 pandemic, as it allows for more social distancing and provides personal space for residents. It may also better serve people who do not feel comfortable staying in a traditional shelter setting by giving them their own secure, separate spaces. The shelter operations will be provided by Avivo. Their responsibilities include client intake, shelter staffing, coordination of daily meals, mail distribution and security. Avivo is a critical partner to the City in addressing homelessness, mental health and substance abuse, undoing racism and addressing economic and health disparities.
The City anticipates that the novel coronavirus COVID-19 will continue to affect the metropolitan area for the foreseeable future and requires safe alternatives to unsheltered homelessness particularly as winter approaches, to reduce reliance on COVID-19 unsafe, overcrowded indoor alternatives like doubling up. The Indoor Villages proposal is eligible for CDBG-CV funds for operations under the public services category. The State of Minnesota and Hennepin County are also considering funding requests for this project. The State recently approved $2 million in funding to stand up additional shelter capacity before winter. The Indoor Villages project team is in discussions with a private owner to lease space located at 1251 N Washington Ave as the site for this project.
Funding Recommendation
Avivo has requested up to $2,000,000 in CDBG-CV funds to support operating costs at Indoor Villages. Staff is recommending a grant in the amount of $1,972,950 from CARES Act CDBG funds.