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LTC 193-2020 CDBG-CV Minor AmendmentM IA M I BEACH OFFICE OF THE CITY MANAGER NO. L TC# TO COMMISSION TO: Mayor Dan Gelber and Members of FROM: Jimmy L. Morales, City Manager DATE: May 27, 2020 SUBJECT: CDBG-CV Minor Amendment On May 13, 2020 the Mayor and City Commission approved a substantial amendment to the City's 2018-2022 Consolidated Plan and FY 2019 Action Plan to include the availability and planned use of $564,276 in Community Development Block Grant - Coronavirus (CDBG-CV) funding to prevent, prepare for, and respond to COVID-19. The planned use for this funding included the following projects: • CQyID-19 Testing for Elderly: $25,000 in funds to offset the costs associated with Fire Department staff escorting testing professionals to the homes of elderly residents receiving COVID-19 testing. • Emergency Food Assistance: $40,000 in groceries assistance for qualifying Miami Beach residents experiencing financial hardship. Since submission of the item for Commission approval, HUD has released additional guidance on the use of the CDBG-CV funds. On May 22, 2020, the National Community Development Association hosted a webinar with the U.S. Department of Housing and Urban Development (HUD) Community Planning and Development (CPD) staff. During this webinar, CPD staff emphasized that CDBG-CV grantees must prevent the duplication of benefits. CDBG-CV funds cannot be used to pay costs if another source is available. On May 13, 2020, the Mayor and City Commission approved a food distribution program for the benefit of vulnerable residents impacted by COVID-19 to provide food assistance for up to 600 households. The City Commission approved these expenses with the expectations that these expenditures would be eligible for reimbursement by the Federal Emergency Management Agency (FEMA). In light of the new guidance issued by HUD with regard to the duplication of benefits, the Administration will reallocate the CDBG-CV funds originally allocated for Emergency Food Assistance to Rent Assistance, an activity that has greater demand than resources. This action will ensure compliance with CDBG-CV regulations. Upon further review of the City's COVID-19 testing of the elderly, it was determined that additional funding is not needed for this service. In order to avoid duplication of benefits, the Administration will reallocate the CDBG-CV funds originally allocated for COVID-19 testing of the elderly to rent assistance, an activity that has greater demand than resources. These changes are considered a minor non-substantial amendment to the FY 2019 Action Plan. The minor amendments will be processed administratively and will result in an additional $65,000 in funds for rent assistance. If you have any questions, please see Maria Ruiz, Department Director, Office of Housing and Community Services. 193-2020