TO: Mayor and Members of City Council
THRU: Telly C. Whitfield, Ph.D., Assistant City Manager
FROM: Christopher L. Cauley, Economic and Community Development Director
Kelly Olivera, Budget and Evaluation Director
DATE: October 11, 2021
RE:
Title
Adoption of Special Revenue Fund Project Ordinance 2022-8 to Appropriate the Second Phase of Emergency Rental Assistance Program Funding and Amend the Contract with Innovative Emergency Management, Inc.
end
COUNCIL DISTRICT(S):
Council District(s)
All
b
Relationship To Strategic Plan:
Goal 4: Desirable Place to Live, Work and Recreate
Executive Summary:
Council is asked to adopt Special Revenue Fund Project Ordinance (SRO) 2022-8 to appropriate a $2,020,501 grant from the U.S. Department of the Treasury to provide funding for the second phase of Emergency Rental Assistance Program. Council is also asked to approve a contract amendment which will allow Innovative Emergency Management, Inc. to hire at least eight additional staff to speed up the process,
to support better communications with applicants as well as improve the efficiency in the intake process and dispersing of funds to landlords.
Background:
In response to the Consolidated Appropriations Act, 2021, enacted by Congress on December 27, 2020, the U.S. Department of the Treasury launched the Emergency Rental Assistance Program (ERAP1). ERAP1 provided funding to assist households that are unable to pay rent or utilities. The City applied for funding and received a $6,343,864 grant, which was appropriated by City Council on March 22, 2021.
On March 11, 2021 Congress enacted the American Rescue Program Act of 2021, and the U.S. Department of the Treasury established a second Emergency Rental Assistance Program (ERAP2). The City received the first distribution of $2,020,501 ERAP2 funds on May 14, 2021 and is only eligible for the second distribution if these funds are spent. The City has expended almost 85% of the ERAP 1 program funds to assist Fayetteville families and exceeded the 65% milestone for September. As Fayetteville continues serving families in need, additional funds are required.
Issues/Analysis:
None
Budget Impact:
There is no impact to the General Fund as the grant does not require cost sharing or a local match.
Options:
1. Adopt SRO 2022-8 as presented to appropriate funds for the ERAP2 Program and direct staff to amend the contract with IEM, Inc.
2. Do not adopt SRO 2022-8 and provide further instructions to staff.
Recommended Action:
Staff recommends that Council move to adopt Special Revenue Fund Project Ordinance 2022-8 as presented and direct staff to amend the contract with IEM, Inc.
Attachments:
Special Revenue Fund Project Ordinance 2022-8
Innovative Emergency Management, Inc. Additional Staffing