City Council Work Session - AMENDED

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Meeting Date: 04/11/2023  
From: Kristine Pavlik, Housing and Grants Administrator
Department: Community Development  

Presentation regarding funding allocations for the City of Flagstaff American Rescue Plan Act Coronavirus Local Fiscal Recovery Funds for Housing Assistance Projects
To inform Council of funding allocations for the American Rescue Plan Act Coronavirus Local Recovery Funds for Housing Assistance Projects. Staff will provide Council with a presentation regarding the proposals received through the Notice of Funding Available process and recommendations made by the Ranking Committee.

Staff will request City Council's consideration of approval of grant agreements for the recommended projects through consent agendas at future meeting dates, TBD.
On October 12, 2021, Council directed that $1,900,000 in American Rescue Plan Act of 2021 (“ARPA”) Coronavirus State and Local Fiscal Recovery Funds (“Local Recovery Funds”) be distributed to support Housing Assistance under the Negative Economic Impact funding category. Under ARPA, the purpose of the programs, services, or capital expenditures (“Projects”) must be to respond to the negative economic impacts of the COVID-19 pandemic, by supporting the health of communities, and helping households recover from economic impacts, particularly disproportionately impacted low-income workers and people of color. 

On November 7, 2022, the City of Flagstaff released a Notice of Funding Available ("NOFA") for Housing Assistance Projects that address community needs identified as a result of the COVID-19 pandemic in order to improve community resilience, address disparities of disproportionately impacted communities and create and preserve stable, affordable housing and prevent eviction. The City received eight (8) eligible applications by the December 19, 2023 deadline. 

Staff will work with selected agencies to draft grant agreements in alignment with these recommendations and request Council approval in the coming months.
Housing staff conducted a risk assessment of all eight (8) applying agencies and their proposed Projects. Additionally, a Ranking Committee comprised of three (3) community representatives and three (3) City Staff met to review the proposals and rank them by consensus. Rankings primarily serve as a risk and benefit assessment and are the guiding input for Staff recommendations of ARPA Local Recovery Funds allocations. Staff presented the recommended allocations to the Housing Commission at the March meeting and the Housing Commission voted unanimously to forward them to Council with a recommendation for approval. 

With $1,900,000 in ARPA Local Recovery Funds available for Housing Assistance, Staff recommends fully funding the five (5) highest ranking applications and allocating partial funding to the remaining three (3) applications. After accounting for fully funding the top ranking applications, the remaining three (3) are recommended to receive approximately 80% of the funding requested based on available funds and their similar scores. All of the Projects are still able to proceed with partial funding. Habitat for Humanity and The Salvation Army will adjust their Project outcomes accordingly if alternative funding is not identified. 

The below table provides a list of the applying agency's, the proposed Projects and requested funding as well as each applications average ranking score and staff recommended funding. 
City of Flagstaff ARPA Local Recovery Funds Housing Assistance Requests
Agency and Project Individuals/ Households Served Requested Funding Recommended Funding  Ranking 
Housing Solutions of Northern Arizona
JoJo's Place Transitional Housing
44 Transitional Housing Units $500,000.00 $500,000.00 193
DNA People's Legal Services
Outreach/Legal Aid for Eviction Prevention
Outreach to 10,000 Households 
Legal Aid for 85 Households
$200,000.00 $200,000.00 189
Flagstaff Shelter Services
Hotel Shelter Operations
500 Unique Individuals $100,000.00 $100,000.00 188
Homeless Youth Connection
Transitional Housing Operations
Support services for 50 youth
and 7 Transitional Housing Beds
$46,250.00 $46,250.00 178
Catholic Charities
Homeless Outreach and Support Services
675 Unique Individuals $199,999.00 $199,999.00 178
Villas on Lake Mary 
LIHTC Development
76 LIHTC Units $500,000.00 $397,000.00 (20yr Loan) 165
Habitat for Humanity
Starter Homes at Timber Sky
Predevelopment of 24 sites $500,000.00 $397,000.00 164
The Salvation Army
Rental Assistance 
50 Households $75,000.000 $59,550.00 164
    $2,121,249.00 $1,899,799.00  

If funded as detailed in the chart above, these recommendations would support the creation of 76 permanently affordable rental units, 44 units of transitional housing and seven (7) transitional housing beds exclusively for youth experiencing homelessness, as well as, the development of 24 sites of future Starter Homes for affordable homeownership. ARPA funds would also provide operational support for shelter and outreach services to over 1,000 individuals experiencing homelessness and prevent eviction for over 135 households.

ARPA Presentation


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