Coversheet

Board Action Request
20-0271

Item Description:
Allocate $1,231,000 CARES Act to establish an affordable housing stabilization fund; Neg agmts with various entities, 08/01/20-12/31/2020, total combined NTE $1,081,000; supp app of $1,081,000 to 2020 HED budget

Resolution:
BE IT RESOLVED,

that the Hennepin County Board of Commissioners hereby allocates $1,231,000 of its federal funding from the Coronavirus Relief Fund available under section 601(a) of the Social Security Act, as added by section 5001 of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) to establish an affordable housing stabilization fund to increase outreach, education, and assistance to prevent evictions and mortgage foreclosures due to the economic impacts of the COVID-19 pandemic, during the period June 1, 2020 through December 31, 2020; and that the Controller be authorized to accept and disburse funds as directed; and

BE IT FURTHER RESOLVED, that the County Administrator be authorized to negotiate an agreement with a technology developer to create a virtual tenant resource navigation tool, during the period August 1, 2020 through December 31, 2020, with a total combined not to exceed amount of $300,000; that following review and approval by the County Attorney's Office, the Chair be authorized to sign the award agreement on behalf of the county; and that the Controller be authorized to disburse funds as directed; and

BE IT FURTHER RESOLVED, that the County Administrator be authorized to negotiate an agreement with a nonprofit agency to support individualized housing resource navigation, during the period August 1, 2020 through December 31, 2020, with a total combined not to exceed amount of $300,000; that following review and approval by the County Attorney's Office, the Chair be authorized to sign the award agreement on behalf of the county; and that the Controller be authorized to disburse funds as directed; and

BE IT FURTHER RESOLVED, that the County Administrator be authorized to negotiate an agreement with nonprofit agency to support tenants in Housing Court to access assistance, during the period August 1, 2020 through December 31, 2020, with a total combined not to exceed amount of $100,000; that following review and approval by the County Attorney's Office, the Chair be authorized to sign the award agreements on behalf of the county; and that the Controller be authorized to disburse funds as directed; and

BE IT FURTHER RESOLVED, that the County Administrator be authorized to solicit and negotiate agreements to provide marketing and education to tenants and rental property owners, during the period August 1, 2020 through December 31, 2020, with a total combined not to exceed amount of $60,000; that following review and approval by the County Attorney's Office, the Chair be authorized to sign the award agreements on behalf of the county; and that the Controller be authorized to disburse funds as directed; and

BE IT FURTHER RESOLVED, that the County Administrator be authorized to negotiate an agreement with the Minnesota Homeownership Center to provide outreach, education, and counseling to homeowners, during the period August 1, 2020 through December 31, 2020, with a total combined not to exceed amount of $321,000; that following review and approval by the County Attorney's Office, the Chair be authorized to sign the award agreements on behalf of the county; and that the Controller be authorized to disburse funds as directed; and

BE IT FURTHER RESOLVED, that a supplemental appropriation to the 2020 Housing and Economic Development department operating budget in the amount of $1,081,000, be approved.


Background: History: Section 601(a) of the Social Security Act, as added by section 5001 of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), established the Coronavirus Relief Fund (Fund) and appropriated $150 billion to the Fund. Under the CARES Act, the Fund is to be used to make payments for specified uses to states and certain local governments; the District of Columbia and U.S. Territories; and Tribal governments. Hennepin County received a direct payment out of the Fund from the U.S. Treasury. The CARES Act provides that money from the Fund may only be used to cover costs that: are necessary expenditures incurred due to the public health emergency with respect to the Coronavirus Disease 2019 (COVID–19); were not accounted for in the budget most recently approved as of March 27, 2020 (the date of enactment of the CARES Act) for the State or government; and were incurred during the period that begins on March 1, 2020 and ends on December 30, 2020. Allowable expenditures include those incurred to respond to second-order effects of the emergency, such as providing economic support to those suffering from employment or business interruptions due to COVID-19-related business closures, as well as emergency financial assistance or consumer grants to prevent eviction and assist in preventing homelessness. These business closures and subsequent joblessness are disproportionately impacting low-income renters who were already housing cost burdened. As Unemployment Insurance, the eviction moratorium, and Payroll Protection Program grants all expire mid-summer, eviction filings and foreclosure threats will likely increase dramatically. Available federal, state and local housing assistance programs - including Hennepin County’s more than $15 million allocations – are situated to preserve housing for thousands, but the most vulnerable households need additional assistance to access to these programs. Staff recommends allocating $1,231,000 of Hennepin County CARES Act funding to establish an affordable housing stabilization fund. This fund would preserve housing through pro-active outreach to households at risk of eviction and foreclosure, and coordinated access to eviction prevention resources and mortgage counseling. Eviction prevention will be offered at three intervention points: Before eviction filing: Virtual online housing resource navigation tool in multiple languages ($300,000 for tool implementation) Individualized, culturally responsive housing navigation support ($300,000) At the point of eviction filing Outreach to tenants who’ve received eviction filings to connect to services and assistance ($100,000 for re-assigned County staff) At the eviction hearing at Housing Court Immediate support and service connections for tenants allowed time to seek assistance before a second hearing ($100,000 for contracted staffing) Expedited applications for emergency housing assistance ($50,000 for re-assigned County staff) Outreach to rental property owners and tenants will offer resources to prevent evictions and stabilize tenancies. This marketing campaign will have one broad approach, plus a more targeted approach to properties and owners with the most applications to the County’s CARES Emergency Housing Assistance program and tenants at highest likelihood of impact. Marketing campaign to landlords and tenants to increase awareness of tenant and landlord resources and rights ($30K to consultant) Funding for the Minnesota Homeownership Center (HOC) would increase homeowner outreach, education, and counseling. HOC will partner with existing counseling agencies, such as CLUES, LSS, NEDA, Neighborworks Home Partners, PRG, TCHfH, whose combined program participants are predominantly low income (79% below 80% of the area median income) and homeowners of color (63%). Outreach campaign to dispel scams and share resources, and financial counseling for homeowners with mortgage payment delinquencies due to COVID-19 ($321,000 for contracted outreach and counseling) Impact/Outcomes: Approval of these agreements will preserve housing stability for households facing economic impacts of the COVID-19 pandemic.