Item Coversheet

CITY COUNCIL AGENDA COMMUNICATION
AGENDA DATE:February 23, 2021
SUBJECT:

Adopt a Resolution Authorizing the City Manager to Negotiate and Execute a Contract with Community Development Properties North Texas, Inc., a Delaware non-profit Corporation to Administer the Following Programs on behalf of the City of Allen: The Texas Emergency Rental Assistance Program and Texas Eviction Diversion Program funded with CDBG-CV Funds from the Texas Department of Housing and Community Affairs, the Emergency Rental Assistance Program funded by Collin County and the U.S. Treasury, and the Small Business Grant Program funded by CDBG-CV through the Department of Housing and Urban Development in the Amount of $3,305,341.

STAFF RESOURCE:

Lee Battle, Director of Community Enhancement

Erin Jones, Planning Manager
ACTION PROPOSED:

Adopt a Resolution Authorizing the City Manager to Negotiate and Execute a Contract with Community Development Properties North Texas, Inc., a Delaware non-profit Corporation, to Administer the Following Programs on behalf of the City of Allen: The Texas Emergency Rental Assistance Program and Texas Eviction Diversion Program funded with CDBG-CV Funds from the Texas Department of Housing and Community Affairs, the Emergency Rental Assistance Program funded by Collin County and the U.S. Treasury, and the Small Business Grant Program funded by CDBG-CV through the Department of Housing and Urban Development in the Amount of $3,305,341.




BACKGROUND

The City of Allen has received over $4.8 million in COVID relief funds from a variety of grant sources. Approximately $1.5 million of those funds have been allocated to programs that will be run directly by City Staff. Those programs include Utility Assistance, Tutoring Assistance, Meal on Wheels, and a needs assessment in conjunction with the University of North Texas.

 

The subject contract will outline the programing of the remaining funds to be managed by Community Development Properties North Texas, Inc., a Delaware non-profit corporation, commonly referred to as the National Development Council (NDC). These funds will support the following programs: The Texas Emergency Rental Assistance Program and Texas Eviction Diversion Program funded with CDBG-CV Funds from the Texas Department of Housing and Community Affairs, the Emergency Rental Assistance Program funded by Collin County and the U.S. Treasury, and the Small Business Grant program funded by CDBG-CV through the Department of Housing and Urban Development.

 

In its over fifty-year history, NDC has gained extensive experience assisting client communities responding to economic crises from natural disasters, market disruptions and more recently the COVID-19 pandemic. NDC's technical advisory services team helps to operationalize federal regulations with practical local policies and program design that adhere to both the letter and spirit of the law. NDC can also act as a third-party administrator for implementation of the programs including the rental and small business assistance programs funded through federal programs such as the Coronavirus Aid, Relief and Economic Security (CARES) Act and local/state funding. NDC's framework for administering these disaster response programs remains true to its organizational core values to build local capacity and maximize benefit to the local community by partnering with local organizations and hiring locally.

 

Ultimately, given the amount of funding, time limitations and various funding guidelines, NDC offers the City the best option for assisting citizens and businesses in the most efficient and timely way possible. The goal is to launch the rental assistance programs on March 1, 2021, with the small business program launching in mid-April.

 

The sources and allocation as they pertain to the subject contract are as follows:  

 

Program

Source

Funding Amount

Maximum Administration Payment to NDC

The Texas Emergency Rental Assistance Program and Texas Eviction Diversion Program

CDBG-CV Funds from the Texas Department of Housing and Community Affairs

$150,000.00

$15,000 (10%)

Emergency Rental Assistance Program

Collin County and the U.S. Treasury

$2,909,435.00

$261,849.15 (9%)

Small Business Grant program

CDBG-CV through the Department of Housing and Urban Development

$275,000.00

$27,500.00 (10%)



BUDGETARY IMPACT

Once executed by the City Manager, the contract will provide for NDC to administer over $3.0 million in COVID Relief funds to Allen residents and small businesses. These are grant funds so there is no direct cost to the City. 


STAFF RECOMMENDATION

Staff recommends that the City Council adopt a Resolution authorizing the City Manager to negotiate and execute a contract with Community Development Properties North Texas, Inc., a Delaware non-profit corporation to administer the following programs on behalf of the City of Allen: The Texas Emergency Rental Assistance Program and Texas Eviction Diversion Program funded with CDBG-CV Funds from the Texas Department of Housing and Community Affairs, the Emergency Rental Assistance Program funded by Collin County and the U.S. Treasury, and the Small Business Grant Program funded by CDBG-CV through the Department of Housing and Urban Development in the Amount of $3,305,341.


MOTION

I make a motion to approve Resolution No. _______________ authorizing the City Manager to negotiate and execute a contract with Community Development Properties North Texas, Inc., a Delaware non-profit corporation to administer the following programs on behalf of the City of Allen: The Texas Emergency Rental Assistance Program and Texas Eviction Diversion Program funded with CDBG-CV Funds from the Texas Department of Housing and Community Affairs, the Emergency Rental Assistance Program funded by Collin County and the U.S. Treasury, and the Small Business Grant Program funded by CDBG-CV through the Department of Housing and Urban Development in the Amount of $3,305,341.



ATTACHMENTS:
Description
Resolution