Title
Dept/ Agency: Administration/Office of Management and Budget
Action: (X) Ratifying (X) Authorizing (X) Amending
Type of Service: Transfer of CDBG Funds
Purpose: To amend CDBG Coronavirus Aid, Relief and Economic Security (CARES) ACT, CDBG-CV Allocation.
Funding Source: United States Department of Housing and Urban Development
Amount Transferred: Increased by $3,500,308.00
Transferred From: Special Economic Development Activities, Microenterprise Assistance, and Tenant Based Rental Assistance
Transferred To: Special Economic Development Activities, Microenterprise Assistance, and Tenant Based Rental Assistance
Additional Information:
Apply and Acceptance Resolution 7R1-c(AS) adopted February 3, 2021.
This amendment will increase the amount for the CDBG-CV Allocation by the following:
|
CDBG-CV3 Allocation - |
$3,500,308 |
|
Special Economic Development Activities - |
$300,308 |
|
Microenterprise Assistance - |
$1,200,000 |
|
Rental Assistance - |
$2,000,000 |
Two-Thirds vote of full membership required.
body
TR # 9
WHEREAS, Resolution 7R1-a, adopted November 7, 2019, authorized the Mayor and Business Administrator to submit a 2019 One Year Action Plan for Program Year 2019-2020 to the US Department of Housing and Urban Development and authorized acceptance of grant funds and execution of grant agreements necessary to receive those grant funds; and ; and
WHEREAS, on March 27, 2020, to assist communities in their efforts to prevent, prepare for and respond to the coronavirus pandemic (COVID-19), the Federal Coronavirus Aid, Relief and Economic Security Act (CARES) was signed into law and included supplemental formula allocations to HUD’s Community Planning and Development Programs; and
WHEREAS, the City of Newark was allocated $4,310,416.00 in CDBG funds, $7,621,389.00 in ESG, and $842,513.00 in HOPWA funds as a result of the CARES supplemental formula allocations; and
WHEREAS, Resolution 7R1-a adopted on August 19, 2020 by the Municipal Council, authorized the acceptance of said supplemental formula allocations to HUD’s Community Planning and Development programs for the Coronavirus Aid, Relief and Economic Security Act (CARES) for the prevention, preparation and response to the coronavirus pandemic (COVID-19) to meet the needs of the citizens of Newark; and
WHEREAS, Resolution 7R1-a, adopted on August 19, 2020, listed the amounts awarded for the CBDG-CV allocations Microenterprise Assistance and Tenant Based Rental Assistance at $1,800,000.00 and $1,300,000.00 respectively; and
WHEREAS, the City of Newark adopted Resolution 7R1-g on October 7, 2020 to amend the amounts stated incorrectly in Resolution 7R1-a to reflect the actual CBDG-CV allocations: Microenterprise Assistance award in the amount of $1,300,000.00 instead of $1,800,000.00 and Tenant Based Rental Assistance award of $1,800,000.00 instead of $1,300,000.00; and
WHEREAS, on September 11, 2020, the City of Newark was allocated $3,500,308.00 from a third round of CDBG funds authorized by the CARES Act HUD to further assist communities in their efforts to prevent, prepare for and respond to the coronavirus pandemic (COVID-19), and
WHEREAS, the City desires to further the public interest by obtaining these funds as an additional resource to be used to prevent, prepare for, and respond to the Coronavirus Pandemic (COVID-19) to meet the needs of the citizens of Newark; and
WHEREAS, on January 11, 2021, the City’s Business Administrator signed and submitted to HUD a Substantial Amendment of the City’s 2015-2020 HUD Consolidated Plan by submitting a Substantial Amendment of the City’s 2019 Annual Action Plan, which proposed a CARES Act Amendment, that included the supplemental formula allocation of $3,500,308.00 to the City of Newark from a third round of funding for CDBG, and
WHEREAS, by an award letter dated January 26, 2021, HUD approved the City’s aforesaid Substantial Amendment (a copy of said award letter is attached hereto and made a part hereof) for a total of $3,500,308.00; and
WHEREAS, the Mayor and the Business Administrator wish to accept the additional CARES Act funding and execute a grant agreement governing the supplemental program award in the amount of $3,500,308.00; and
WHEREAS, no matching municipal funds are required for the acceptance of the additional CARES Act funding; and
WHEREAS, no commitment of City resources or staff is required for the acceptance of the additional CARES Act funding.
NOW, THEREFORE, BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
1. The Municipal Council hereby authorizes the Mayor and/or his designee, the Business Administrator, to increase the CDBG-CV Allocations, as listed in Resolution 7R1-a adopted on August 19, 2020, to reflect as shown in the schedule below:.
PROJECT FROM TO
CDBG-CV Allocation
Special Economic Development Activities
Salaries and Wages $-0- $-0-
Other Expenses $800,000 $1,100,308
Microenterprise Assistance
Salaries and Wages $-0- $-0-
Other Expenses $1,300,000 $2,500,000
Tenant Based Rental Assistance
Salaries and Wages $-0- $-0-
Other Expenses $1,800,000 $3,800,000
TOTAL ALLOCATION $3,900,000 $7,400,308
STATEMENT
Resolution authorizing and amending the allocation amount for the Special Economic Development Activities, Microenterprise Assistance, and Tenant Based Rental Assistance Programs, by increasing the amount for the Community Development Block Grant (CDBG) CDBG-CV allocation as identified in the Substantial Amendment for the PY2019 Annual Action Plan.