On January 4 City Council meeting, councilmembers voted on a resolution that would amend the 2019-2020 Community Development Block Grant (CDBG) in order to transfer funds into the 2020-2021 Emergency Housing Payment Program.
This resolution will cancel the Dennis/Beverly Alley reconstruction project from the CDBG and transfer $100,000 from that project to the Emergency Housing Payment Program fund for its use.
Due to the current COVID-19 stay at home order, there has been an increase of applicants for the Emergency Housing Payment Program which helps impacted families who have been unable to pay their mortgage or rent.
Currently, the city has over 30 applications in waiting due to the lack of funds. With the recent lockdown, there have been more people trying to apply for the program.
The allocation of the funds from the CDBG will allow the Emergency Housing Payment Program to continue until late January or mid February. The city believes the new CARES Act funds will be available around February and that will allow the program to continue.
In February, the city will return to the council in order to reinstate the alley construction project along with other projects.
The average grant that the Emergency Housing Payment Program gives to approved applicants is about $3,000. The $100,000 along with the rest of the Emergency Housing Payment Program funding will be enough to serve around 30 to 40 applicants.
Councilmember Bob Whalen asked if the funding for the alley project was money that the city wouldn’t be able to recuperate.
Community and Economic Development Director Andrew Haussler said that the CDBG fund allowed for the use of the money in the Emergency Housing Payment Program and that the alley project will be funded with CDBG money. However, there will be less CDBG funds to spend on future projects.
“By saying we are going to take $100,000 from that broader scope on purpose and use it for the more narrow type of funds means that we are saying no to something we just don’t know what that no is,” Whalen said. “But I also understand the value of continuing this (Emergency Housing Payment Program) without interruption.”
The council voted unanimously to pass the resolution amending the CDBG fund and give the Emergency Housing Payment Program the funding.