The Texas Department of Housing and Community Affairs (TDHCA) received $36.3 million in Community Development Block Grant - Coronavirus (CDBG-CV) funds and is making those funds available to entitlement communities in the state of Texas that have existing COVID-19 rental assistance programs and have indicated an interest to participate in the Texas Emergency Rental Assistance Program (TERAP) and Texas Eviction Diversion Program (TEDP). The City of Allen is eligible to receive $150,000 in funding to administer a program for eligible Allen residents. Staff anticipates aiding approximately 15-20 families with this program.

In summary, the program guidelines are as follows:

• This program is for rental assistance only. No late fees, mortgage or utility assistance will be offered with these funds.
• Applicants must be residents of Allen and meet HUD's income guidelines to qualify for assistance.
• Eligible applicants can qualify for up to six months of assistance with no duplication of funds from other CDBG-CV programs.
• This program will pay up to 120% Fair Market Rate (FMR), and applicant can qualify for the program if their rent is up to 150% FMR; however, another funding source must pay the difference between 120% and 150%. If the rent is above 150%, then the applicant is not qualified for the program. Examples are as follows:
  
  • Example 1 - The FMR for a two-bedroom apartment in zip code 75002 is $1,750 X 120%= $2,100. If the applicant's rent is at or below $2,100, then the program can pay 100% of the rent.
  • Example 2 - The FMR for a two-bedroom apartment in zip code 75002 is $1,750 X 150%= $2,625. If the applicant's rent is $2,500, then they are eligible for the program, but the program can only pay up to $2,100 and the applicant or another funding source would have to pay the difference of $125.00.
  • Example 3 - If the rent exceeds 150% of the FMR, then the applicant is not qualified for the program regardless of household income.
• 10% of the funds must go to renters who are referred from the Justice of the Peace in active eviction status

This program will be run by City Staff through an application process that will open to the public on February 1, 2021.

This contract will provide for $150,000 in CDBG-CV funds in order to provide rental relief to qualified Allen residents.

Staff recommends that the City Council Adopt a Resolution Authorizing the City Manager to Execute a Contract with The Texas Department of Housing and Community Affairs to Administer the Texas Emergency Rental Assistance Program and the Texas Eviction Diversion Program in the Amount of $150,000.

I make a Motion to Adopt Resolution No. _____________ Authorizing the City Manager to Execute a Contract with The Texas Department of Housing and Community Affairs to Administer the Texas Emergency Rental Assistance Program and the Texas Eviction Diversion Program in the Amount of $150,000.