Title
Authorizing the City to transfer $2,534,489 of American Rescue Plan funds from the 30% AMI Deeply Affordable Housing account to a specific account for the Twelve-22 Apartment project.
Body
WHEREAS, since the first case of coronavirus disease 2019 (COVID-19) was discovered in the United States in January 2020, the disease has infected over 85 million and killed over 1 million Americans and impacted every part of life; and
WHEREAS, both the public health and economic impacts of the pandemic have fallen most severely on communities and populations disadvantaged before it began; and
WHEREAS, amid this crisis the City of Saint Paul (the City) has been called on to respond at an immense scale; and
WHEREAS, on March 11, 2021, the American Rescue Plan Act (ARPA) was signed into law by the President of the United States; and
WHEREAS, the ARPA established the Coronavirus Local Fiscal Recovery Fund, intended to provide support to local governments in responding to the impact of COVID-19 and in their efforts to contain COVID-19 in communities, residents, and businesses; and
WHEREAS, from the Local Fiscal Recovery Fund the U.S. Department of Treasury is distributing $45.8 billion to metropolitan cities, of which the City’s allocation totals $166,641,623; and
WHEREAS, in May 2021, the City received the first half of its ARPA Local Fiscal Recovery Fund allocation of $83,320,812; and
WHEREAS, according to the ARPA, the Local Fiscal Recovery funds may be used for the following expenses and must be obligated by December 31, 2024 and spent by December 31, 2026:
1) To respond to the public health emergency or its negative economic impacts, including assistance to households, small businesses, and nonprofits, or aid to impacted industries such as tourism, travel, and hospitality;
2) To respond to workers performing essential work during the COVID-19 public health emergency by providing premium pay to eligible workers;
3) For the provision of government services to the extent of the reduction in revenue due to the COVID-19 public health emergency relative to revenues collected in the most recent full fiscal year prior to the emergency; and
4) To make necessary investments in water, sewer, or broadband infrastructure; and
WHEREAS, on December 16, 2021, via RES 21-1794, the City allocated $20 Million of its ARPA Local Fiscal Recovery Funds to its department of Planning and Economic Development for the provision of deeply affordable housing as a response to the negative economic impacts suffered from the COVID-19 public health emergency; and
WHEREAS, through a formal solicitation and review process for the 30% AMI Deeply Affordable Housing funds, the City identified the following recipient as eligible for a total allocation of $2,534,489:
1. Twelve-22 Apartment Project: $2,534,489
WHEREAS, the $2,534,489 of ARPA funds will be combined with $748,983 of pooled TIF funding for a total blended loan of $3,283,472; and
WHEREAS, A separate City Council resolution adopted concurrent with this resolution will authorize City Council execution of the blended loan; and
WHEREAS, an HRA resolution adopted on this date will authorize the execution of the blended loan; and
WHEREAS, pursuant to Section 10.07.4 of the City Charter, the Mayor recommends the transfer of unencumbered ARPA 30% AMI Deeply Affordable Housing appropriations as outlined in the attached financial analysis, which is consistent with the City’s plan to shift ARPA funds to project-specific accounts for spending; now therefore, be it
RESOLVED, that the City Council of Saint Paul does hereby:
1. Authorize the City to transfer $2,534,489 from the ARPA 30% AMI Deeply Affordable Housing holding account to a project-specific account as outlined in the attached financial analysis.
2. Authorize the appropriate City Officials to execute agreements and such other documents necessary to carry out this Resolution.
3. Authorize City staff to take all other actions necessary to carry out this Resolution.
Financial Analysis
See Attachment.