Title
Consider/Discuss/Act on a Resolution Authorizing the City Manager to Accept Grant Participation under Texas Emergency Rental Assistance Program (TERAP), under the Texas Department of Housing and Community Affairs (TDHCA).
Summary
COUNCIL GOAL: Enhance the Quality of Life in McKinney
MEETING DATE: December 15, 2020
DEPARTMENT: Housing & Community Development Department
CONTACT: Shirletta Best, Community Services Administrator
Janay Tieken, Housing & Community Development Manager
RECOMMENDED CITY COUNCIL ACTION:
• Approve the Resolution
ITEM SUMMARY:
• The U.S. Department of Housing & Urban Development (HUD) provided funding under the CARES Act to prevent, prepare for or respond to the Coronavirus. The process included three rounds of funding. Municipalities received funding under round 1 and 3; States received funds under round 2, with option to distribute to interested municipalities. The Texas Department of Housing and Community Affairs (TDHCA) is making $40 million in CDBG-CV funds available to entitlement communities who receive funding directly from HUD, who have existing COVID-19 rental assistance programs and have indicated an interest to participate in the Texas Emergency Rental Assistance Program (TERAP) and the Texas Eviction Diversion Program (TEDP). The City of McKinney was allocated a direct total of $ 222,994 under the program.
BACKGROUND INFORMATION:
• TERAP provides rental assistance program only to income-eligible households impacted by COVID-19 to help them stay housed during the pandemic. The program can pay up to six months of an eligible household's rent, including rental arrears, with at least one of those months covering a month of future rent. Assistance cannot be older than April 2020. Rent for the household assisted may not exceed the TDHCA maximum limits based on zip code program requirements. An estimated 22 households may be assisted.
• The City has been allocated funds directly from the state, however a grant application is required. The grant application is required to be submitted to the State of Texas by 5:00 PM on December 28, 2021. If the City does not accept the funds, they will be reallocated to other cities. It anticipated the City will be notified in January and the program will begin statewide after January 15, 2021.
• The City was a participant under the Collin Cares Emergency Living Assistance program to assist McKinney residents with mortgage, rental, utility, and food assistance. The program funded under the CARES Act - U.S. Treasury fund, has ended for new applicants and the program officially closes on December 30. The City has been allocated CDBG-CV funds from the U.S. Department of Housing and Urban Development; funds will be used to administer a mortgage, rental and utility assistance program for eligible residents. Duplication of benefits is prohibited. Residents cannot have already received six months of payments from CDBG funds or another payment method covering the same period of time. Participants will be required to sign an affidavit.
FINANCIAL SUMMARY:
• The City has been awarded a direct allocation in the amount $222,994. Expenditures will be listed under the fiscal account, 017-1704 with a designated project number.
• There is also a companion agenda item to amend the Annual Budget for the Texas Emergency Rental Assistance Program (TERAP) grant program.