Item Coversheet

OLD BUSINESS  2.

COMMITTEE MEMORANDUM

TO: Finance and Economic Resiliency Committee Members


FROM:
Raul J. Aguila, Interim City Manager


DATE: January 22, 2021


SUBJECT:STATUS REVIEW OF THE GENERAL FUND RESERVE FUNDS ALOCATED TO SUPPORT RENT, MORTGAGE, AND UTILITIES ASSISTANCE PROGRAM(S) FOR QUALIFIED CITY RESIDENTS DUE TO THE ECONOMIC CRISIS

HISTORY:

At its June 12, 2020 meeting, the Finance and Economic Resiliency Committee (FERC) discussed the demand for rent assistance services in the community and acknowledged that the need was greater than what could be met with the funds allocated in Tranches 1 and 2 through Community Development Block Grant (CDBG-CV) and HOME Investment Partnership (HOME) funds. As such, the Committee recommended that up to $700,000 in General Reserve Funds be set aside for potential use to address the pressing need for rent assistance. However, the Committee requested that only $330,000 of these funds be released at this time – a number equivalent to the value allocated in the two prior tranches of rent assistance. Furthermore, the Committee emphasized the desire that, if possible, these funds be reimbursed through other sources such as CARES funds from Miami-Dade County.

 

At its July 29, 2020 Commission meeting, the Administration recommended awarding these funds to a non-profit to ensure assistance be available to the broadest range of Miami Beach residents, including those who have not achieved permanent residency status. On September 18, 2020, a contract was executed with H.O.P.E. in Miami-Dade, Inc. (HOPE) to provide rent and utility services to Miami Beach households referred by the Office of Housing and Community Services (OHCS).

 

At its October 23, 2020 FERC meeting, the Administration recommended waiting for 60-days to reevaluate the need for additional funds in the future, not to exceed $700,000, to support rent, mortgage, and utility assistance programs.


ANALYSIS:

The chart below summarizes the funds and distributions for all of the federal and state funds utilized for rent, mortgage and utility assistance:

 

 

Upon execution of the contract with HOPE, OHCS identified clients from Tranches 1-2 (CDBG-CV and HOME funds), and Tranche 4 (Corona Virus relief funds) that were deemed ineligible due to status or who were impacted by funds being exhausted. Most households considered ineligible due to legal status either have a work permit or have applied for residency but have yet to achieve legal status. The following criteria was established for HOPE to maximize the possibility of federal reimbursement:

 

1. Program funds are only available to renters that live or plan to relocate within City limits and must have a valid ID with the address of the assisted property;

2. Qualifying utility costs to be paid may include: electricity and gas;

3. Maximum household income was amended to assist 120% of Area Median Income; 

4. Financial assistance was amended to allow rent assistance for a maximum of six (6) months, 

6. Rent must have been current as of March 12, 2020.  

 

As of December 30, 2020, HOPE has assisted fifty households expending $166,707.03. The average amount of disbursement was $1,953.00 per household. 

 

As of December 30, 2020, $158,228.91 processed by HOPE and funded initially through General Fund resources have been charged to the following pandemic relief assistance programs:

 

Funding Source:

Amount:

Miami-Dade County CARES funds

$62,733.91

Corona Virus Relief Funds (CRF) 2

$95,495.00

 

HOPE’s contract has been extended until January 31, 2021 to maximize the current allocation in light of the City prioritizing the expenditure of federal funds by the December 30, 2020 deadline and the ongoing demand for assistance. The City’s Community Development Block Grant – Coronavirus 3 (CDBG-CV3) funds will become available for disbursement sometime in January. The amount available is $254,000.


CONCLUSION:

The Administration recommends that we extend the current agreement with HOPE if funds are not expended by January 30th and that further funds are considered once the federal allocation of CDBG-CV3 funds are received and the pace of draw is evaluated. The Administration recommends re-evaluating the pace of draws every 30 days so as to be as responsive as possible to community need.


Is this a "Residents Right to Know" item, pursuant to City Code Section 2-14? Does this item utilize G.O. Bond Funds?
No No