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HomeMy WebLinkAbout3.16.23 ARPA Status Update Date: March 16, 2023 To: City Council From: Cassandra Gripp, Grants Manager Re: American Rescue Plan Act Update The U.S. Treasury has allocated $18.3 million to the City of Iowa City in local fiscal recovery funds through the American Rescue Plan Act (ARPA). The City has spent or encumbered approximately $14.02 million to date. At the Sept. 7, 2021 Work Session, City Council signaled their support for the following expenditure priorities, categorized by emergent needs and strategic investments: Program 2021 Est. Range Funded Status Emergent Needs: Direct Payments to Eligible Adults $1 - $1.5M $1.18M – Direct Assistance Complete Eviction Prevention $1 - $2M $1.14M – Shelter House Housing Stability Pilot In Progress Housing Repair / Relocation $500k - $1.5M $1.07M – Forest View Relocation Complete Emergency Non-Profit Assistance $500k - $1M $400K – Nonprofit Operating Grants $85K – CWJ Wage Theft In Progress Strategic Investments: BIPOC Business Support Framework / Infrastructure $4 - $6M $4M – Inclusive Economic Development Program (pending) In Development Social Service Needs Assessment, Capital Planning & Seed Funding $3 - $6M $3M – Capacity Building Capital Grant Program (pending) In Development Affordable Housing Initiatives $2.5 - $6M -- In Development Mental Health Services $1.5 - $3M $939K – Mobile Crisis In Progress Workforce Development $1.5 - $3M $100K – 4 C’s Childcare Navigator $435K – UI Labor Center $750K – Childcare Wage Supplement Program (pending) In Progress Climate Resiliency and Hazard Assessment Planning $500k - $3M -- Not Started Small Business, Arts, Culture, and Tourism Investments $1 - $2M $250K – Think Iowa City In Progress Government Services and City Revenue Replacement $1 - $3M $676K – Utility Replacement In Progress Total 2021 Estimated Funding Range: $18 - $38 million City’s ARPA Allocation: $18,325,190.00 ARPA Funds Encumbered (includes pending): ~$14,028,758.68 Total Unencumbered ARPA Funds: ~$4,296,431.32 March 20, 2023 Page 2 Program Status Update: Emergent Priorities Direct Payments to Eligible Adults Status: Complete Amount Funded: $1,184,071.19 The Johnson County Direct Assistance Program received 2,238 eligible applications from throughout Johnson County. Johnson County funded the first 1,428 applicants and the City of Iowa City funded 791 applicants (472 residing in Iowa City and 319 residing outside Iowa City). Eviction Prevention Status: In Progress Amount Funded: $1,137,710 The pandemic created and exacerbated housing instability for many populations. Shelter House developed the Housing Stability Pilot program for ARPA-funded community eviction prevention that will extend and enhance previously allocated federal, state, and local dollars. The proposal was presented to and accepted by Council on January 10th, 2023. Next Steps: The project is in progress. Staff will monitor and provide quarterly updates. Forest View Relocation Status: Complete Amount Funded: $1,071,500.00 As of February 1, 2023, all residents vacated by the deadline and were eligible for relocation assistance. In total, 80 Forest View residents received the full relocation amount of $15,750. The Center for Worker Justice worked directly with residents to assist them in obtaining affordable housing opportunities. Emergency Non-Profit Assistance Status: In Progress Amount Funded: $485,000 Nonprofit Operating Assistance Funding Round: Applications for operating assistance were reviewed and $400,000 in funding recommendations were approved by City Council at the October 18, 2022 meeting. Twelve non-profit agencies were awarded funding. All agreements have been finalized and projects are in progress. Wage Theft: In coordination with commitments from Johnson County, Coralville, and North Liberty, Iowa City allocated $85,000 over five years to the Center for Worker Justice for an expanded campaign to confront wage theft, promote worker rights, and hire a full-time Wage Theft Organizer. An agreement has been signed and the project is in progress. Next Steps: Staff will monitor each project monthly and provide quarterly updates. March 20, 2023 Page 3 Program Status Update: Strategic Investments BIPOC Business Support Framework & Infrastructure Status: In Development Amount Allocated/Pending: $4 million The Iowa City Area Development Group (ICAD) funded an economic inclusion study led by Astig Planning to identify gaps in resources and opportunities for local marginalized businesses and entrepreneurs. The resulting Inclusive Economic Development Plan was presented to Council in September 2022. Additionally, City staff have been engaged in conversations with several local BIPOC business owners and entrepreneurs regarding projects and programs related to this effort. Based upon the recommendations included in the Plan, a proposed funding process and draft Request for Statements of Interest (RSI) was included in the March 2, 2023 Information Packet. With Council’s general consensus to move forward at the March 7th Work Session, the RSI was published on March 13th. The funding program intends to award $4 million in grants or loans for capital projects or business support programs serving underestimated small businesses and entrepreneurs. Next Steps: Statements of Interest are due May 1, 2023 and the evaluation process is anticipated to mirror the same process used for the Non-Profit Capital Grant program: • An internal team of City staff and Council representatives will evaluate submissions and interview one or more of the submitting agencies to learn more about the project. • The evaluation committee will develop preliminary funding recommendations and recommend to the City Council that the City work directly with one or more of the submitting agencies to develop a full proposal. • Upon initial approval by the City Council, staff will work with the selected applicant(s) to develop comprehensive proposals and grant agreements for final Council approval. Social Services Capital Funding Program Status: In Development Amount Allocated/Pending: $3 million With Council direction, staff developed a Non-Profit Capacity Building Capital Grant Program and released a Request for Statements of Interest in December 2022. Eight nonprofit agencies submitted a Statement of Interest for consideration under the program. Councilors Alter and Bergus were appointed to review the submissions along with a team of City staff members. The review committee held informational interviews with a set of applicants in February 2023 and has developed preliminary funding recommendations to be included on the March 21, 2023 City Council formal meeting agenda. Next Steps: Preliminary funding recommendations will be included on the March 21, 2023 City Council meeting agenda. Upon City Council approval of the preliminary funding recommendations, staff will work with the selected agency or agencies to develop a full proposal and the corresponding grant agreements for final City Council approval at a future formal meeting. Affordable Housing Initiatives Status: Not Started ARPA-funded affordable housing investments will take a multi-pronged approach, including: March 20, 2023 Page 4 • Housing Trust Fund of Johnson County: The City has initiated discussion with the Housing Trust Fund on their interest in administering an ARPA-funded Affordable Rental Housing Initiative targeting projects that will secure permanent affordability. • Other Projects: The Johnson County Board of Supervisors allocated $4 million in ARPA funding to develop the County-owned property at 821 S. Clinton Street for affordable housing redevelopment. Staff will continue to work with the County to identify opportunities for collaboration. Next Steps: “Advance prioritized recommendations in the 2022 Affordable Housing Action Plan. Work with partners to undertake significant-scale affordable housing efforts” has been added to the City Council Pending Work Session Topic list and this discussion (anticipated Summer 2023) will inform next steps on this ARPA priority. Mental Health Services Status: In Progress Amount Funded: $939,082 City Council approved a subrecipient agreement with CommUnity at the February 15, 2022 meeting to expand Mobile Crisis Outreach in response to the exacerbated mental health impacts of the pandemic. To date, CommUnity has hired three full-time counselors, purchased eight vehicles, and completed the remodel of the physical office space. Next Steps: Staff will continue to monitor this agreement and will report as appropriate to City Council on the outcomes of this investment. Workforce Development Status: In Progress & In Development Amount Funded - Childcare Navigator (4Cs): $100,000 Amount Funded - Pre-Apprenticeship Program (UI Labor Center): $435,239 Amount Allocated/Pending: $750,000 Workforce Development: A $435,239 agreement with the UI Labor Center for a pre- apprenticeship program targeting underserved populations in the building and construction trades was approved by Council on December 6th, 2023. This program is underway and a progress update will be included in future ARPA status update memos. Childcare: In June, 4Cs and the Iowa City Area Business Partnership presented an update on regional childcare efforts and needs to City Council and recommended Council consider funding a childcare navigator position. 4Cs applied for this funding during the Nonprofit Operating Assistance funding round, however Council agreed with the staff recommendation that the proposal be funded through the Workforce Development initiatives. 4Cs was awarded $100,000 in ARPA funds for the navigator position. This program is underway and a progress update will be included in future ARPA status update memos. Additionally, Johnson County, Better Together 2030, and other community partners presented a proposed Childcare Wage Supplement Program at the March 7, 2023 City Council Work Session. Continued discussion of the Wage Supplement Program and other local early childhood proposals will take place at the March 21, 2023 Work Session. Staff will draft a tentative ARPA grant March 20, 2023 Page 5 agreement for the Wage Supplement Program to be prepared to move forward should Council direct staff to do so. monitored by staff. The childcare wage supplement program proposal will be brought before Council when it is received (anticipated February or March 2023). Climate Resilience and Hazard Assessment Planning Status: Not Started Discussion about the utilization of ARPA dollars for climate action-related projects is scheduled for the March 21, 2023 City Council Work Session. Given demands in other ARPA priority areas, staff have advised that this project may need to be deferred for funding with local dollars or other federal funding opportunities rolled out through the Inflation Reduction Act. Small Business, Arts & Culture, and Tourism Investments Status: In Progress Amount Funded: $250,000 At the June 6, 2022 City Council meeting, Council approved an agreement with Think Iowa City to replace $125,000 in lost hotel/motel tax revenue due to COVID-19 and to develop and administer a $125,000 tourism and visitor recovery grant program to spur tourism and economic activity in the Iowa City area. Of the $125,000 available through the grant program, Think Iowa City has awarded four projects to date: • $7,500 to the Iowa Golden Gloves to host the 2023 Iowa Golden Gloves Championships boxing tournament in Iowa City, organized by the ICOR Boxing Club. • $15,000 to the Refocus Film Festival hosted by FilmScene in Iowa City. • $30,000 to the Iowa City Downtown District to host the Winter Night Lights light display and winter programming in downtown Iowa City. • $5,000 to EntreFEST to host a two-day entrepreneurship and innovation conference in downtown Iowa City in June 2023. Think Iowa City continues to accept applications on a rolling basis. Additionally, some ARPA funds were tentatively set aside for the regional river activation proposal submitted to the state ARPA-funded Destination Iowa tourism grant program. However, staff was informed in March 2023 that the application was denied. Next Steps: Staff will continue to monitor the existing local tourism grant program and report updates to Council. Further assistance programs in this priority area will be considered in 2023. Government Services and Revenue Replacement Status: N/A Utility Assistance Program Council approved the resolution authorizing Utility Billing Revenue Replacement on September 6, 2022 meeting, bringing utility accounts current as of June 1, 2022 and resuming regular collections procedures. March 20, 2023 Page 6 Revenue Replacement At the September 7, 2021 Work Session, Council indicated a hesitancy to pursue revenue replacement as allowed under the ARPA statue. The Final Rule simplified the revenue replacement process, allowing a standard revenue replacement allowance of up to $10 million. This change was intended to simplify the revenue replacement option for local governments and to expand eligible uses to government services that are not enumerated or otherwise eligible in U.S. Treasury eligible use guidance. Staff encourages Council to maintain revenue replacement as a viable option as it may provide additional flexibility to meet community needs.