Explanation
BACKGROUND: The Emergency Rental Assistance program is a federal Covid relief program that makes funding available to assist households that are unable to pay rent or utilities. Two separate programs have been established: ERA1 provides up to $25 billion under the Consolidated Appropriations Act, 2021, which was enacted on December 27, 2020, and ERA2 provides up to $21.55 billion under the American Rescue Plan Act of 2021, which was enacted on March 11, 2021. These funds are provided directly to states, U.S. territories, local governments, and (in the case of ERA1) Indian tribes. Grantees use the funds to provide assistance to eligible households through existing or newly created rental assistance programs
Previous legislation (Ordinance 0284-2021) authorized the acceptance and appropriation of $26,822,803.20 in funding from the U.S. Treasury to the City of Columbus related to the ERA1 program. Pursuant to initial program implementation, the U.S. Treasury solicited additional funding requests from governmental entities made available by reallocations within the ERA1 program. These reallocations were comprised of 1) voluntary reallocations, whereby initial awardees provided uncommitted funds back to U.S. Treasury; and 2) involuntary reallocations, whereby funding was pulled from initial awardees for not meeting mandated obligation thresholds established by the U.S. Treasury.
Under the ERA1 reallocation process, the City of Columbus submitted a request to the U.S. Treasury for the award of additional ERA1 funding. The U.S. Treasury approved the City’s request and has awarded additional ERA1 funding in the amount of $2,513,379.24. This ordinance therefore seeks authorization to accept and appropriate these funds within the Emergency Rental Assistance Fund.
The Department of Finance and Management will be responsible for monitoring the distribution and appropriate expenditure of ERA funds based on guidance provided by the United States Department of Treasury. Where expenditures require City Council approval in accordance with Columbus City Code, city departments will advance said legislation for consideration by City Council.
Emergency Designation: Emergency consideration is requested so that funds made available to the city can be accepted and appropriated as quickly as possible. The Department of Finance and Management and the City Auditor have implemented a process to transfer appropriations to City agencies.
Fiscal Impact: The city has received $2,513,379.24 in additional ERA1 funding from the U.S. Treasury. Acceptance and appropriation of these funds is now necessary. Funds will not be appropriated within individual department budgets. Such transfers of appropriation will be processed to departments as needed and in accordance with existing policies and procedures.
Title
To authorize the acceptance and appropriation of $2,513,379.24 in additional funding from the U.S. Treasury, or such final amount(s) as allocated as a result of the Consolidated Appropriations Act, 2021 and the American Rescue Plan Act of 2021; to authorize transfers of cash and appropriation within the Emergency Rental Assistance Fund as needed; and to declare an emergency ($2,513,379.24).
Body
WHEREAS, the Emergency Rental Assistance program was created and funded pursuant to the Consolidated Appropriations Act, 2021 and the American Rescue Plan Act of 2021; and
WHEREAS, previous legislation (Ordinance 0284-2021) authorized the acceptance and appropriation of $26,822,803.20 in funding from the U.S. Treasury to the City of Columbus related to the ERA1 program; and
WHEREAS, pursuant to initial program implementation, the U.S. Treasury solicited additional funding requests from governmental entities made available by reallocations within the ERA1 program; and
WHEREAS, in accordance with the ERA1 reallocation process, the City of Columbus submitted a request to the U.S. Treasury for the award of additional ERA1 funding. The U.S. Treasury approved the City’s request and has awarded additional ERA1 funding in the amount of $2,513,379.24
WHEREAS, an emergency exists in the usual daily operation of the Department of Finance and Management in that it is immediately necessary to accept and appropriate funds from the U.S. Treasury at the earliest possible time, thereby preserving the public health, peace, property, safety, and welfare;
now, therefore
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That $2,513,379.24, or such final amount(s) as allocated by the U.S. Treasury, are hereby accepted by the City of Columbus from the U.S. Treasury as a result of the Emergency Rental Assistance Program, and an appropriation of the same is authorized according to the account codes in the attachment of this ordinance.
SECTION 2. That any interest earnings in the fund may be transferred, appropriated, and expended for the purposes of this fund as allowed by the grantor. All investment earnings are hereby deemed appropriated for the purposes of complying with all federal requirements pertaining to investment earnings.
SECTION 3. That the City Auditor is hereby authorized to transfer cash and appropriation between and among sub-funds, departments, divisions, and object classes within the Emergency Rental Assistance Fund 2208 as necessary to allow for the posting of prior and future expenses, not to exceed the cash available in the fund as a whole.
SECTION 4. That any such future deposits as the City may receive from the U.S. Treasury are hereby deemed to be appropriated and the City Auditor is hereby authorized to appropriate such amounts, as necessary.
SECTION 5. That the monies in the Emergency Rental Assistance Fund 2208 shall be deemed appropriated in an amount up to, but not to exceed, the cash in the fund not encumbered for any other purpose, and that no money shall be paid there from except by voucher approved by the City Auditor.
SECTION 6. That the City Auditor is hereby authorized to process expenditure corrections within this fund, and between this fund and other city funds to accurately post financial data related to the Emergency Rental Assistance Fund.
SECTION 7. That the funds are hereby deemed appropriated and expenditures and transfers authorized to carry out the purposes of this ordinance, and the City Auditor shall establish such accounting codes as necessary.
SECTION 8. That the City Auditor is hereby authorized to make any accounting changes to revise the funding source for all contracts or contract modifications associated with this ordinance.
SECTION 9. That for the reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor or ten days after passage if the Mayor neither approves nor vetoes the same.