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Home My WebLink About10984 City Clerk's Office Item # R1 Background Paper for Proposed Action Item COUNCIL MEETING DATE: July 14, 2025 TO: President Mark Aliff and Members of City Council CC: Mayor Heather Graham VIA: Marisa Stoller, City Clerk FROM: Scott Hobson, Acting Director Planning and Community Development SUBJECT: AN ORDINANCE APPROVING AND ACCEPTING THE AMENDED HOME-ARP GRANT AGREEMENT BETWEEN THE CITY OF PUEBLO, A COLORADO MUNICIPAL CORPORATION, AND THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT ("HUD"), AUTHORIZING THE MAYOR TO EXECUTE THE AGREEMENT TOGETHER WITH ALL REQUIRED AND NECESSARY CERTIFICATIONS, ASSURANCES, AND DOCUMENTATION, ACCEPTING HOME-ARP GRANT FUNDS FROM HUD ON BEHALF OF THE PUEBLO CONSORTIUM IN THE AMOUNT OF $3,090,925.00, AND BUDGETING AND APPROPRIATING THE HOME-ARP GRANT FUNDS SUMMARY: -ARP grant from the U.S. Department of $3,090,925.00 to $3,095,546.00, on behalf of the Pueblo Consortium. The City of Pueblo and Pueblo County formed the Pueblo Consortium to qualify for HOME funds. HUD determines the percentage of funds allocated to consortium members. The current consortia distribution between the City and the County is based on a (87%/13%) share and the initial distribution of HOME-ARP funds equates to $4,020.27 (City) and $600.73 (County). PREVIOUS COUNCIL ACTION: Ordinance No. 10129 was passed on March 14, 2022, to accept the grant funds, and budget and appropriate the funds. BACKGROUND: As an entitlement community, the Pueblo Consortium, is eligible to receive grant funds authorized by the American Rescue Plan Act of 2021 (P.L. No. 117-2) from HUD. The intent of the grant is to respond to the negative effects of the pandemic by assisting Qualified Populations through housing and related service activities. Examples of eligible activities are: supportive services, development of non-congregate shelter, permanent supportive housing, transitional housing, construction of new housing units, and rental assistance. A Qualified Population is defined as: homeless, at risk of homelessness, victims (domestic/dating violence, human trafficking, sexual assault, stalking), and other populations with high housing instability and meeting specific grant criteria. On June 3, 2025, HUD notified the City of Pueblo that an audit was conducted and it was FINANCIAL IMPLICATIONS: The Pueblo Consortium will allocate the additional $4,621.00 in grant amount proportionally to how it was received when the initial allocation of HOME-ARP funding was allocated. No matching contribution is required for the grant. Fifteen percent (15%) of the grant may be allocated to administration ($693.15), The grant to the Pueblo Consortium is shared with Pueblo County on an 87%/13% City/County basis. The grant funds are to be allocated as follows: Fund Name Fund Use Initial Allocation Additional Allocation June 2025 HOARP-10 City Administration $423,456.00 $633.08 HOARP-20 County $40,182.00 $60.07 Administration HOARP-30 County Projects $341,548.00 $510.62 HOARP-40 City Projects $2,285,739.00 $3,417.23 $3,090,925.00 $4,621.00 BOARD/COMMISSION RECOMMENDATION: Not applicable to this Ordinance. STAKEHOLDER PROCESS: None. ALTERNATIVES: The City Council can choose not to accept the grant funds and the associated requirements. RECOMMENDATION: Approval of the Ordinance. ATTACHMENTS: 1. Amended HOMEARP Contract 2. Amended HOMEARP Pueblo, CO Letter from HUD ORDINANCE NO.10984 AN ORDINANCE APPROVING AND ACCEPTING THE AMENDED HOME-ARP GRANT AGREEMENT BETWEEN THE CITY OF PUEBLO, A COLORADO MUNICIPAL CORPORATION, AND THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT ("HUD"), AUTHORIZING THE MAYOR TO EXECUTE THE AGREEMENT TOGETHER WITH ALL REQUIRED AND NECESSARY CERTIFICATIONS, ASSURANCES, AND DOCUMENTATION, ACCEPTING HOME- ARP GRANT FUNDS FROM HUD ON BEHALF OF THE PUEBLO CONSORTIUM IN THE AMOUNT OF $3,090,925.00, AND BUDGETING AND APPROPRIATING THE HOME-ARP GRANT FUNDS WHEREAS, the American Rescue Plan Act of 2021 (P.L. No. 117-2) authorized the provision of funds to the U.S. Department of Housing and Urban Development under Section 3205 for homeless assistance and supportive services programs; and WHEREAS, the U.S. Department of Housing and Urban Development provides HOME Investment Partnership funding authorized under Title II of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12721) to entitlement communities for the development of affordable housing and rental assistance programs; and WHEREAS, the U.S. Department of Housing and Urban Development has developed and made available to entitlement communities HOME-ARP Grant funding to provide homelessness assistance and supportive services to qualified populations; and WHEREAS, the Pueblo Consortium is a HOME entitlement community eligible to receive HOME-ARP Grant funding; and WHEREAS, the City of Pueblo acting as the Participating Jurisdiction of the Pueblo Consortium wishes to receive the HOME-ARP funding available to entitlement communities for the development of affordable housing and associated supportive services; NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. Corporation, and the U.S. Department of Housing and Urban Development, for the development of affordable housing and associated supportive services, a copy of which is attached hereto and incorporated herein, having been approved as to form by the City Attorney, is hereby approved. SECTION 2. The Mayor is hereby authorized to execute the Agreement in the name and on behalf of the City of Pueblo, where the Mayor may execute the Agreement by electronic signature and such electronic signature shall be attributable to the Mayor and the City of Pueblo. SECTION 3. The Mayor is hereby authorized to submit, in the name of the City of Pueblo and the Pueblo Consortium, all necessary certifications, assurances, action plans, and other documentation to the U.S. Department of Housing and Urban Development in accordance with the Agreement. SECTION 4. Special Fund No. 255 - HOME-ARP Affordable Housing and Supportive Services Project is hereby established. SECTION 5. Funds in the amount of $3,090,925.00 shall be accepted pursuant to the Agreement and are hereby budgeted and appropriated to Special Fund No. 255 - HOME-ARP Affordable Housing and Supportive Services Project, and distributed into the following accounts accordingly: HOARP-10 City Administration $ 423,456 HOARP-20 County Administration $ 40,182 HOARP-30 County Projects $ 341,548 HOARP-40 City Projects $2,285,739 Total $3,090,925 SECTION 6. Staff is authorized to expend up to $154,546.00 in Administration funds for planning and development of grant activities prior to receipt of the remaining grant funds. SECTION 7. The officers and staff of the City are authorized to perform any and all acts consistent with this Ordinance to implement the policies and procedures described herein. SECTION 8. If any section, paragraph, clause, or provision of this Ordinance shall for any reason be held to be invalid or unenforceable, the invalidity or unenforceability of such section, paragraph, clause, or provision shall not affect any of the remaining provisions of this Ordinance. SECTION 9. This Ordinance shall become effective on the date of final action by the Mayor and City Council. Action by City Council: Introduced and initial adoption of Ordinance by City Council on June 23, 2025. Final adoption of Ordinance by City Council on July 14, 2025. ____________________________ President of City Council Action by the Mayor: Approved on _______________. Disapproved on ______________ based on the following objections: ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ____________________________ Mayor Action by City Council After Disapproval by the Mayor: Council did not act to override the Mayor's veto. Ordinance re-adopted on a vote of ____________, on _____________ ____________________________ President of City Council ATTEST ________________________________ City Clerk