09-01-2020 2019 Annual Action PlanSecond Amendment to the
2019 Community Development
Block Grant (CDBG) Annual Action
Plan
City Council
September 1, 2020
Policy Question
Should City Council approve the Second Amendment
to the 2019 Community Development Block Grant
(CDBG) Annual Action Plan?
Community Development Block Grant
COVID-19 Funding (CDBG-CV)
•The City has received $432,622 in CDBG-CV.
•These funds are available specifically to prevent, prepare for,
and respond to the coronavirus (COVID-19).
•The public services cap has been removed for 2019 and
2020 CDBG funds if used to respond to COVID -19.
•Funds must support low- and moderate-income residents.
•All funded services must document connection to COVID -19.
Scope of Rent Delinquency in COVID-19
•It is estimated that between 5 and 10% of tenants in
Washington have not been able to pay all or a portion
of their rent since April
*Census Bureau Household Pulse Survey and Washington Multifamily
Housing Association
•Anticipated increases in rent arrears from August
forward since the extra unemployment benefit
ended in July.
•In Federal Way, 5 to 10% of renters is between 800
and 1,600 households.
•With an average rent of $1,244 (ACS 2014-18), that
means as much as $5 to $10 million in rent arrears for
Federal Way residents through August.
Housing and COVID-19
•Eviction moratorium extended through October 15.
•Housing stability is always important and COVID-19
adds new complexity
Increased potential for spread of the virus in
shelters and with households doubled up.
The scope of long-term impacts on financial and
housing stability is increased as so many people
are behind on rent, which will impact recovery.
Human Services Commission
Recommendations for Reallocation of Funding
•On August 17, 2020, the Human Services Commission
unanimously voted to recommend Council allocate an additional
$300,000 in CDBG funding to rent assistance.
•Reallocates:
•$200,000 in funding planned for microenterprise as the City
implemented a larger, broader program and there were
issues with cost and underwriting requirements to implement
a new CDBG funded grant program.
•$18,935 of CDBG-CV funding for planning and
administration.
•$81,065 of Housing Repair Program funding.
•Adds $300,000 to the Multi-Service Center’s rental assistance
program responding to COVID-19.
Timeline
•August 17: Human Services Commission Recommendation
•August 21: Public notice of Amendment and opening of public
comment period on August 26
•September 1: City Council consideration
•September 15: HUD Approval of Amendment
Questions?
Second Amendment to the 2019 Annual Action Plan
September 1, 2020
Staff Contacts:
Sarah Bridgeford, Community Services Manager
Brittany Julius, CDBG/Human Services Coordinator