With the passage of the Coronavirus Aid, Relief, and Emergency Security (CARES) Act, the City of Allen received $256,000 in COVID-19 emergency relief funding through the CDBG program.  These funds are limited to CDBG eligible activities and subject to CDBG program requirements.  In addition, they must be used for a COVID-19 related impact.  On July 28, the City Council adopted the 2020-2021 CDBG Action Plan, which programmed these funds for public service and assistance activities. 

The Community Enhancement and Community Services departments have developed a program to use these funds to operate an emergency utility assistance program.  The program provides up to six months of subsistence payments to eligible families in order to bridge a financial crisis directly related to a COVID-19 financial loss.  The assistance will initially be used solely for City utility bills since CARES Act funds that are being provided for similar assistance in Collin County cannot be used for City utility bills. If the funding is not depleted through addressing delinquent City utility bills, then the City may consider providing rent/mortgage and other utility assistance to qualified applicants.

Since the funding source for this program is CDBG funds, the program must meet federal guidelines established by the Department of Housing and Urban Development (HUD).  Applicants will have to meet federal income eligibility guidelines to qualify.

Who is eligible:

• Resident of Allen.
• Delinquent water utility bill with the City of Allen billed after March 1, 2020.
• Demonstrate an income loss related to COVID-19.
• Meet CDBG program and income eligibility requirements.

What assistance is provided: 

• Up to 6 months of payments for delinquent utility accounts.
• Will include payments for owed charges of water, wastewater, waste services, drainage, HHW and taxes for a City of Allen utility bill.
• Late fees and penalties will be waived.
• Water charges will be adjusted to full amount of minimum water bill each month and $1.24 per 1,000 gallons of water use above 1,500 gallons up to the 10,000 maximum amount of water used to calculate wastewater charges.
• Wastewater charges will be adjusted to the monthly wastewater Minimum Bill (typical bill for most residential accounts.)
• Full monthly charges for waste services, drainage, HHW, and taxes will be paid.

Application process:

• Applications will be made directly to the Community Enhancement department through a standard application form.
• Application can be made online or with a paper form.
• Community Enhancement staff will review applications for eligibility and facilitate completion of the application process.
• Once qualified, Utility Billing will provide the adjusted payoff amount and amount eligible for assistance (some accounts may not be paid in full but will be adjusted per criteria above).
• Payment will be made from grant funds to utility accounts.
• Community Services will adjust accounts and provide confirmation that utility account has been credited with the eligible assistance.

The funding is programmed for FY 20-21, so payment transactions cannot occur until after October 1.  However, the application platform will be completed, and staff will be able to start accepting and reviewing applications in September. Staff will conduct a directed outreach program to customers with delinquent utility accounts.

Staff recommends that the City Council adopt a Resolution authorizing the creation of an Emergency Utility Assistance Program to provide relief for Allen residents facing financial hardship due to COVID-19, and authorizing the use of CARES Act Community Development Block Grant (CDBG) Funds for the Emergency Utility Assistance Program.

I make a motion to adopt Resolution No. __________ authorizing the creation of an Emergency Utility Assistance Program to provide relief for Allen residents facing financial hardship due to COVID-19, and authorizing the use of CARES Act Community Development Block Grant (CDBG) Funds for the Emergency Utility Assistance Program.