Title
Allocating the balance of Round Two Federal Emergency Rental Assistance funds to the Saint Paul - Ramsey County Tenant Assistance Program and authorizing the execution of necessary agreements
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WHEREAS, the COVID-19 public health emergency has affected and continues to affect housing stability across the country, the state of Minnesota, and the City of Saint Paul (the “City”) and continued action is needed to address ongoing housing instability; and
WHEREAS, on December 27, 2020, the United States Congress passed the Consolidated Appropriations Act, 2021, Pub. L. No. 116-260 (the “First Act”), in response to the COVID-19 public health emergency and distributed $25 billion in aid to eligible units of government for the purpose of providing Emergency Rental Assistance; and
WHEREAS, under the First Act, the City received and accepted $9,222,640.00 (“ERA1 Funds”) by RES PH 21-36, and has spent or obligated all of those funds; and
WHEREAS, on November 17, 2021, the Saint Paul City Council accepted funds by RES PH 21-319 allocated to the City by the United States Department of the Treasury’s (“Treasury”), as part of the second round of Federal Emergency Rental Assistance (“ERA2 Funds”) authorized by the United States Congress on March 11, 2021 through the American Rescue Plan Act of 2021, Pub. L. No. 117-2 (the “Second Act”); and
WHEREAS, of the City’s $11,588,419.60 ERA2 allocation, $2,000,000 was appropriated to the Zero Balance Project, a landlord initiated rental assistance program established and operated by metro area jurisdictions who were recipients of ERA1 Funds; and
WHEREAS, on April 7, 2021, by Resolution 21-497, the City Council authorized the exercise of Joint Powers, in accordance with Minnesota Statute Section 471.59, with Ramsey County to carry out a tenant initiated rental assistance program (the “Tenant Program”); and
WHEREAS, on January 5, 2022, by Resolution 22-21, the City Council authorized the appropriation of $5,070,091.86 in ERA2 Funds to the Tenant Program in an effort to continue to serve those in need;
WHEREAS, Zero Balance Project projections indicate that approximately $1,150,000 of the $2,000,000 appropriation will be required to close out that program;
WHEREAS, City Staff recommend reallocating the unspent balance of the Zero Balance Project funds to the Tenant Program;
WHEREAS, additionally, City Staff recommend appropriating the unallocated balance of $4,518,327.74 in ERA2 Funds to support the Tenant Program as there is still a significant need for rent and utility assistance in the City; and
WHEREAS, City Staff recommend the continuation of the terms of the Joint Powers Agreement with Ramsey County to continue Tenant Program activity; and
WHEREAS, the Saint Paul City Council finds a public purpose in continuing participation in the Tenant Program for the purpose of providing ongoing assistance to households in need; now, therefore, be it
RESOLVED, that the Saint Paul City Council does hereby:
1. Authorize the appropriation of the unspent balance of ERA2 Funds from the Zero Balance Project to the Tenant Program.
2. Authorize the appropriation of the unallocated balance of ERA2 Funds to the Tenant Program.
3. Authorize the continued exercise of Joint Powers in support of the Tenant Program.
4. Authorize the appropriate City officials to execute agreements and take any other action necessary to carry out this Resolution and authorize the execution of such powers in the manner authorized by Minnesota Statute Section 12.37.