TO: Mayor and Members of City Council
THRU: Kelly Olivera, Assistant City Manager
Jeffery Yates, Assistant City Manager
FROM: Christopher Cauley, MPA, Economic and Community Development Director
Albert Baker, Assistant Economic and Community Development Director
Kimberly Leonard, CLGBO, CLGFO, CPA, MPA, Budget & Evaluation Director
DATE: October 28, 2024
RE:
Title
Adoption of Special Revenue Fund Project Ordinance to Appropriate an additional $153,374 for the FY2024-2025 Emergency Solutions Grants Program for street outreach, emergency shelter, homeless prevention, rapid re-housing assistance, and the Homeless Management Information System.
end
COUNCIL DISTRICT(S):
Council District(s)
All
b
Relationship To Strategic Plan:
Goal 1: Safe and Secure Community
Strategic Objective 1.1: Prepare for emergency response
Goal 2: Responsive City Government Supporting a Diverse and Viable Economy.
Strategic Objective 2.2: Increase the quality of life.
Goal 4: Desirable Place to Live, Work and Recreate
Strategic Objective 4.6: Reduce poverty and homelessness.
Goal 6: Collaborative Citizen and Business Engagement.
Strategic Objective 6.3: Inform and educate about local government by enhancing public outreach and increasing community dialog, collaboration and empowerment.
Executive Summary:
The City of Fayetteville amended the 2020-2024 Consolidated Plan and the 2024-2025 Annual Action Plan with the U.S. Department of Housing and Urban Development (HUD) on July 7, 2024, for the inclusion of an additional annual entitlement of $155,374 for services under the Emergency Solutions Grants (ESG). The Council is asked to adopt Special Revenue Fund Project Ordinance 2025-12 to appropriate the operating budgets for the ESG allocation. The ESG grant requires a dollar-for-dollar match, which shall largely be passed to nonprofit partners.
Background:
The proposed ESG allocation aligns with the amendment to the HUD 2020-2024 Consolidated Plan and the 2024-2025 Annual Action Plan as approved by Council on July 7, 2024.
The consolidated planning process serves as the framework for a community-wide dialogue to identify housing and community development priorities that align and focus funding from CDBG, HOME, HOPWA and ESG. On May 7, 2024, following the adoption of the HUD 2024 - 2025 Annual Action Plan by the City Council, the City received notice from HUD of an additional annual entitlement of $155,374 for services under the Emergency Solutions Grants (ESG).
ESG funds may be used for five program components along with administration. Program components are street outreach, emergency shelter, homelessness prevention, rapid re-housing assistance, and Homeless Management Information System (HMIS) as set forth in 24 CFR §576.100 - 107. Any funding consideration shall be done after consultation with Fayetteville Cumberland County Continuum of Care (FCCCOC).
In July the City conducted a priority survey with the FCCCOC and ESG partners, which identified the community priorities as Homeless Prevention/Rapid Re-Housing, Emergency Shelter, Street Outreach and HMIS services. On September 1, 2024, the City issued a Notice of Funding Availability (NOFA) that closed on September 30, 2024. The City also held a stakeholder meeting with ESG and FCCCOC partners on September 5, 2024, to discuss community survey priorities, and how to apply.
Issues/Analysis:
The City’s ESG allocation for Fiscal Year 2024-2025 is $155,374 with $143,721 for program services and $11,653 for administration. The match requirement for program services will be the responsibility of the nonprofit partners, and the administration will be the responsibility of the City.
|
Nonprofit Agency |
ESG Program |
Funding Amount |
|
Myrover-Reese Fellowship Homes, Inc |
Street Outreach |
$40,000 |
|
Carolina Collaborative Community Care, Inc. (4C) |
Rapid Rehousing |
$50,000 |
|
Fayetteville Urban Ministry Emergency Assistance Program |
Homeless Prevention |
$53,721 |
Staff has reviewed the applications for ESG funding for qualifications to include nonprofit agency’s experience with ESG, ability to meet the ESG $1:$1 match requirement, and other federal and state requirements.
Budget Impact:
There is no impact to the General Fund fund balance. The required local match is provided in the Economic and Community Development’s General Fund Fiscal Year 2024-2025 budget. The match requirement of $11,653 is exceeded by approximately $56,000 in support for HMIS paid to the HMIS software vendor and Cumberland County.
Options:
1.) Adopt Special Revenue Fund Project Ordinance 2025-12 to appropriate funding for the ESG program.
2.) Do not adopt Special Revenue Fund Project Ordinance 2025-12 and provide additional guidance to staff.
Recommended Action:
Staff recommends Council move to adopt Special Revenue Fund Project Ordinance
2025-12 as presented.
Attachments:
• Special Revenue Fund Project Ordinance 2025-12
• Executed ESG Agreement