Request for Committee Action

2020-00617 - Amendment to U.S. Department of Housing and Urban Development (HUD) 2020 Consolidated Plan Action Plan for COVID-19 Community Development Block Grant (CDBG-CV) and Emergency Solutions Grant (ESG-CV) supplemental funding

Overview

Under the federal 2020 Coronavirus Aid, Relief, and Economic Security (CARES) Act, the City of Minneapolis is eligible to receive additional supplemental funding of $2,918,060 in Community Development Block Grant (CDBG-CV) funds from the U.S. Department of Housing and Urban Development (HUD). This third round of HUD CDBG-CV funding follows an initial allocation of funding made to the city in 2020 and a second allocation made to states. In order to make an application for this third round of funding, the City will need to make an amendment to its HUD 2020 Consolidated Plan Action Plan.

CDBG-CV Coronavirus Response

With respect to the CARES Act CDBG-CV supplemental funding, existing statutory requirements for CDBG apply. 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 percent (70%) of all CDBG spending must address the Low/Moderate Income benefit. HUD has provided some regulatory flexibility to communities under the CARES Act, most importantly eliminating the fifteen percent (15%) cap on CDBG-funded public services. CDBG-CV funds however, must be used for programming that prevents, prepares for, and responds to the coronavirus. 

Amended Action Plan Public Hearing and Comment Period

Due to the COVID-19 pandemic and needed urgency of any programming response, HUD has provided grantees the ability to allow a public comment period of 5 days rather than the standard 30 days for a 2020 Consolidated Plan Amendment and any subsequent amendments needed during the 2020 program year ending on May 31, 2021, through submission of a program waiver. On April 6, 2020 the City requested the program waiver from HUD and it took effect on April 13, 2020. Staff issued the proposed Amendment under your consideration for public comment on the Grants and Special Projects website January 22- 27, 2021 consistent with this waiver. The public hearing today is also required for purposes of making the Amendment.

CDBG-CV Round 3 Project Proposals

Staff from Finance and Property Services, Community Planning and Economic Development, and Health departments with input from Mayor and City Council leadership worked to review HUD guidance issued with respect to CDBG-CV funds against identified community coronavirus response needs and matched the information against existing grant eligibility to recommend the following funding priorities for this Amendment. Further, the City Council provided staff direction in the adopted 2021 City Budget prioritizing $300,000 to fund temporary positions in the Health Department to support public health options for unsheltered persons in the city's Homelessness Response efforts. As the recommended projects are further developed, city staff will be returning to City Council for any necessary authorizations to implement programming.