Explanation
BACKGROUND: The City received Emergency Rental Assistance (“ERA1”) Program funding through the Consolidated Appropriations Act, 2021, from the U.S. Department of Treasury for the period December 27, 2020 through September 30, 2022. In agreement with the acceptance of ERA1, the City is required to comply with the provisions of the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”), which includes the return of funds for any potential instances of fraud, waste, and/or abuse associated with the program.
ERA2 closeout ended April 30, 2026, at which time the City verified the amount suspected in both ERA1 and ERA2 for potential fraud, waste, and/or abuse previously reported to federal oversight entities including: the Special Inspector General for Pandemic Recovery (SIGPR) and Offices of Inspector General (OIG). The U.S. Department of Treasury authorized the ERA2 return in the amount of $438,813.48 and that return was approved on Ord. 2290-2026. This ordinance is necessary to provide for the required reimbursement of ERA1 funds to the U.S. Department of Treasury in the amount of $12,175.00.
The required repayment will be made using ERA interest earnings that have been set aside for this purpose, minimizing impacts on City operations and local resources. Through these actions, the City seeks to maintain the integrity of the ERA program while demonstrating its continued commitment to compliance, transparency, and responsible stewardship of federal funds.
FISCAL IMPACT: This ordinance authorizes the expenditure and return of $12,175.00 from the Emergency Rental Assistance Fund (Fund 2208) to reimburse the American Rescue Plan Act of 2021, administered by the U.S. Department of Treasury.
EMERGENCY DESIGNATION: Emergency action is requested to allow the financial transaction to be processed as soon as possible to mitigate risk of potential penalties from untimely action and assurance compliance...
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