TITLE
Title
DHHS - DIVISION OF SOCIAL SERVICES EMERGENCY RENTAL ASSISTANCE - ADDITIONAL PROGRAM FUNDING
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SPONSOR
Sponsor
Heather Skeens (Sharon Barlow)
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BACKGROUND
Background
The Emergency Rental Assistance program is funded by the United States Department of Treasury and available to assist households that are unable to pay rent and/or utilities due to the COVID-19 pandemic.
Guilford County received its first allocation of $7,252,721.90 in funding for this program in February 2021 (ERA1). Up to 10% of this allocation ($725,272.19) can be used for administrative costs such as staffing, marketing and support programs and contracts. This program, in conjunction with monies Guilford received from the CARES Act and local COVID Relief funding, provides assistance to eligible households through our "Guilford CARES" rental assistance program and funds were approved by the board in a previous budget amendment (February 2021).
This program has been successful in its rollout and assists with keeping Guilford County renters in their homes as the economy continues to be impacted by the pandemic and recovers.
In May 2021, Guilford County was allocated funding under the second round of Emergency Rental Assistance program (ERA2). The agency has received $2,295.495.76, which is approximately 40% of the total allocation designated to Guilford, which is $5,738,739. We can expect to receive the remaining portion of the allocation when the first allocation of (ERA1) is expended. Up to 15% ($860,810.85) of this funding can be used for administrative costs to support staffing, marketing and other program related expenses. 15% of what we received to date is $344,324.36 and will be used for administrative costs to support the program. When the remaining portion of this allocation is received, this will be brought to the Board to request an additional budget amendment.
On June 23, 2021, the County was notified of a third allocation designated by the State for the Emergency Rental Assistance program and Guilford county was awarded a total of $36,873,026.00. The allocations will come to the county in two installments. The first installment will be $20,642,140.66. Up to 5% ($1,032.107.03) of the first installment of the funding allocation can be used for administrative costs such as staffing, marketing and program support and initiatives.
We have not yet received additional guidance on the second installment for this third round of funding for emergency rental assistance. Therefore, at this time a budget amendment for the second installment is not requested but will be brought before the Board at a later date when additional information is received.
These additional allocations result in an increase of $20,642,140.66 for state revenues for ERA1 and increase of $2,295,495.76 for federal revenues for ERA2. No additional county funds will be required. These additional ERA allocations will be spent out of the Community Development & Recovery Fund, the same place as the initial ERA funding was budgeted.
With the additional funding, the County will begin to accept and process applications from residents within the City of Greensboro limits experiencing hardships with rental or utility assistance. The agency currently has (7) staff working in overfilled positions and (3) additional internal staff on standby in anticipation of increased application numbers. At this time, the agency is requesting to formally add seven time-limited Eligibility Caseworker positions at an estimated annual cost of $443,228 for salaries & benefits to administer this program with the positions to be contingent upon continued ERUA program funding through state and/or federal entities to support this program.
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BUDGET IMPACT
Budget Impact
Grant Project Ordinances
Community Development & Recovery Fund
Emergency Rental Assistance 1 (State)
$20,642,141 Increase in Federal/State Revenue
$20,642,141 Increase in Appropriation to Emergency Rental & Utilities Assistance 1 (State)
Emergency Rental Assistance 2 (Federal)
$2,295,496 Increase in Federal/State Revenue
$2,295,496 Increase in Appropriation to Emergency Rental & Utilities Assistance 2 (Federal)
NO ADDITIONAL COUNTY FUNDS REQUIRED
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REQUESTED ACTION
Requested Action
Accept funding from US Department of Treasury and State of North Carolina to administer the Emergency Rental Assistance (ERA) Programs (ERA1 and ERA2); establish grant project ordinances for each ERA program in the Community Development & Recovery Fund to be funded with the Federal and State funding in the amounts described below to reflect funding received for these programs in May and June 2021; and delegate to the County Manager the authority to execute any necessary agreements on behalf of the Board of Commissioners.
Approve maximum allowable administrative costs to be designated for staffing, marketing, program support and initiatives in the following amounts:
$725,272.19 for ERA1 (federal; received in February 2021)
$344,324.36 for ERA2 (federal)
$1,032,107.03 for ERA1 (state)
$2,101,703.58 Total
Approve seven (7) time-limited Eligibility Caseworker positions at an estimated annual cost of $443,228 for salaries & benefits to support the administration of this program with positions to be contingent upon continued ERUA program funding through state and/or federal entities.
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