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HomeMy WebLinkAboutResolutions - 2024.11.21 - 41739 AGENDA ITEM: Memorandum of Understanding between the Oakland County Board of Commissioners and the Oakland County Neighborhood and Housing Development Division to Manage Unobligated American Rescue Plan Act Funds for the Shelter Capacity Project DEPARTMENT: Health & Human Services - Neighborhood and Housing Development MEETING: Board of Commissioners DATE: Thursday, November 21, 2024 1:46 PM - Click to View Agenda ITEM SUMMARY SHEET COMMITTEE REPORT TO BOARD Resolution #2024-4646 Motion to authorize the execution of a Memorandum of Understanding between the Oakland County Board of Commissioners and the Neighborhood and Housing Development Division within Oakland County for the Neighborhood and Housing Development Division to manage the $7,000,000 of unobligated American Rescue Plan Act funds appropriated to the Oakland Together Housing Security Initiative Shelter Capacity Fund; further, allocate unobligated American Rescue Plan Act funds to increase the number of available emergency shelter beds for both individuals and families experiencing homelessness and to de-congregate currently available units to improve safety and privacy; further, authorize the Chair of the Board to execute the agreement. ITEM CATEGORY SPONSORED BY Contract Penny Luebs INTRODUCTION AND BACKGROUND Pursuant to the Coronavirus State and Local Fiscal Recovery Funds (“SLFRF”) program, the United States Department of Treasury Final Rules and March 29, 2024 guidelines and FAQ, the Board of Commissioners seeks to enter into a Memorandum of Understanding with the Neighborhood and Housing Development Division to administer the Shelter Capacity Fund. The Oakland County Board of Commissioners (BOC) authorized an appropriation of $7,000,000 in American Rescue Plan Act Local Fiscal Recovery Funds for the Oakland Together Housing Security Initiative (OTHSI), of which, $5,000,000 was appropriated, via Miscellaneous Resolution (MR) #22035, the for the creation of a Shelter Capacity Fund and $2,000,000 appropriated to the Shelter Capacity Fund via MR #2023-3612 _ 23-166 for increasing the number of emergency shelter beds. BOC and NHD understand this MOU is required pursuant to the LFRF program, the United States Department of Treasury’s Final Rules, and the March 29, 2024 Guidelines and Frequently Asked Questions. BUDGET AMENDMENT REQUIRED: No Committee members can contact Barbara Winter, Policy and Fiscal Analysis Supervisor at 248.821.3065 or winterb@oakgov.com or the department contact persons listed for additional information. CONTACT Kyle Hines, Housing Trust Fund Manager ITEM REVIEW TRACKING Aaron Snover, Board of Commissioners Created/Initiated - 11/21/2024 AGENDA DEADLINE: 11/21/2024 9:30 AM ATTACHMENTS 1. Non-Congregate Shelter SLFRF MOU Resolution - Clean 2. Interdepartmental MOU v2 - NCS - Clean csa 10.24.24 3. ARPA MOU Memo COMMITTEE TRACKING 2024-11-12 Public Health & Safety - Recommend to Board 2024-11-21 Full Board - Adopt Motioned by: None Seconded by: None Yes: None (0) No: None (0) Abstain: None (0) Absent: (0) Memorandum of Understanding between the Oakland County Board of Commissioners and the Neighborhood and Housing Development Division with Oakland County WHEREAS the United States Treasury allocated Oakland County $244,270,949 of Local Fiscal Recovery Funds (LFRF) established under the American Rescue Plan Act (ARPA) of 2021; and WHERAS On April 14, 2022, via Miscellaneous Resolution (MR) #22035, the Oakland County Board of Commissioners (BOC) authorized the creation of the Oakland Together Housing Security Initiative (OTHSI) and a one-time appropriation in the amount of $5,000,000 in ARPA LFRF (#21285) for the creation of a Shelter Capacity Fund; and WHERAS On December 7, 2023, via Miscellaneous Resolution (MR) #23165, the BOC authorized a one-time appropriation in the amount of $2,000,000 in ARPA LFRF (#21285) to the OTHSI Shelter Capacity Fund; and WHEREAS the BOC seeks to enter into a Memorandum of Understanding (MOU) with the Neighborhood and Housing Development Division (NHD) within Oakland County for NHD to manage the $7,000,000 ARPA LFRF appropriated to the OTHSI Shelter Capacity Fund and allocate ARPA LFRF to increase the number of available emergency shelter beds for both individuals and families experiencing homelessness and to de-congregate currently available units to improve safety and privacy; and WHEREAS BOC and NHD understand this MOU is required pursuant to the LFRF program, the United States Department of Treasury’s Final Rules, and the March 29, 2024 Guidelines and Frequently Asked Questions. NOW THEREFORE BE IT RESOLVED that in accordance with the above, the Oakland County Board of Commissioners (BOC) authorizes the execution of a Memorandum of Understanding between the BOC and the Neighborhood and Housing Development Division (NHD) within Oakland County for NHD to manage the $7,000,000 ARPA LFRF appropriated to the Oakland Together Housing Security Initiative Shelter Capacity Fund and allocate ARPA LFRF to increase the number of available emergency shelter beds for both individuals and families experiencing homelessness and to de-congregate currently available units to improve safety and privacy, subject to review by Corporation Counsel. OAKLAND COUNTY MEMORANDUM OF UNDERSTANDING BETWEEN OAKLAND COUNTY BOARD OF COMMISSIONERS AND NEIGHBORHOOD & HOUSING DEVELOPMENT a Division of the HEALTH AND HUMAN SERVICES Department within Oakland County This Memorandum of Understanding (“MOU”) is made and entered into between the Oakland County Board of Commissioners, (“BOC”), a Michigan Constitutional and Municipal Corporation, a political subdivision of the state of Michigan, whose address is 1200 North Telegraph, Pontiac, Michigan 48341 and Oakland County Neighborhood & Housing Development Division (“NHD”). County and NHD may be referred to individually as a “Party” and jointly as "Parties". The Parties agree as follows: 1. PURPOSE OF MOU. In accordance with MR 22-035 and MR 23-166, the BOC appropriated the amounts of $5,000,000 and $2,000,000, of which, $150,000 was committed via Amendment Number 2 to Contract 009271 to Alliance for Housing on January 12, 2024, leaving a total balance of $6,850,000 for the project as described by this MOU. Further, BOC and NHD understand this MOU is required pursuant to the Coronavirus State and Local Fiscal Recovery Funds (“SLFRF”) program, the United States Department of Treasury Final Rules, and March 29, 2024 guidelines and FAQ. 2. SLFRF CONDITIONS. A.State the conditions on the use of funds by the division, department, or part of government receiving funds to carry out the project: BOC authorized the creation of the Oakland Together Housing Security Initiative (“OTHSI”) via MR 22-035. As part of the OTHSI, the BOC appropriated $5,000,000 in SLFRF to fund the creation of a Shelter Capacity Fund (“SCF”). An additional $2,000,000 in SCF was appropriated by BOC via MR 22-166, of which, $150,000 was committed via Amendment Number 2 to Contract 009271 with Alliance for Housing on January 12, 2024, leaving a total balance of $6,850,000. The remaining $6,850,000 in SCF funds are to be used to increase the number of available emergency shelter beds for both individuals and families experiencing homelessness and to de-congregate currently available units to improve safety and privacy. The SCF will be used for one-time costs including but not limited to the acquisition of land and construction of shelters or acquisition and/or rehabilitation of existing structures such as motels, hotels, or other facilities to be used for shelters. NHD is responsible for administering the SCF. SCF funds shall be allocated to emergency shelter beds for both individuals and families experiencing homelessness and to de-congregate currently available units in conformance with MR 22-035, the SLFRF program, the United States Department of Treasury Final Rules, and March 29, 2024 guidelines and FAQ. B.Describe how the provision of the funds from one agency, department, or part of government to another to carries out an eligible use of SLFRF funds: or C.Describe how the use of funds governs the procurement of goods or services by one division, department, or part of the County from another: 3. SCOPE. Designate a project manager and describe the specific requirements of the project (the scope of work to be performed, all project deliverables, period of performance, and any other information regarding the project): Curtis Smith, Chief, Neighborhood & Housing Development Division, shall serve as the project manager for the SCF. Through the investment of SCF funds, NHD will increase the number of available emergency shelter beds for both individuals and families experiencing homelessness and to de-congregate currently available units to improve safety and privacy. NHD has issued and received proposals from emergency shelter operators (“Operators”) via a request for proposals (“RFP”). NHD will negotiate and execute the necessary documents, subject to review by the Purchasing Division and Corporation Counsel, to effectuate the transfer for SCF funds to the most responsive proposal(s). The RFP requires that Operators provide emergency shelter beds in a non- congregate manner. All SLFRF funds appropriated to the SCF shall be expended by September 30, 2026. NEIGHBORHOOD & HOUSING DEVELOPMENT Division of the HEALTH AND HUMAN SERVICES Department BY: DATE: Leigh-Anne Stafford Director, Oakland County Health and Human Services THE COUNTY OF OAKLAND BY: DATE: David T. Woodward Chairperson, Oakland County Board of Commissioners MEMO To: Chief Deputy County Executive Subject: SLFRF Obligation FAQs Date: November 7, 2024 Executive Summary 1. Key Takeaway: The introduction of interagency MOUs as an obligation vehicle provides the County a tool to obligate dollars more efficiently and allows more time to continue refining its reallocation decisions. This memo summarizes preliminary takeaways from the updated FAQ released earlier this year. Interpretation of this guidance may evolve as additional information is released. Summary of FAQ Significant Changes The updated SLFRF FAQs provide funding recipients with more pathways to obligate funds before the December 31, 2024 and more flexibility to adjust obligations after December 31, 2024 in response to changing program needs. Key Language from Treasury: “Treasury considers an interagency agreement, including an agreement in the form of a memorandum of understanding (MOU), to constitute a “transaction requiring payment” similar to a contract or subaward and therefore an obligation for purposes of the SLFRF rule, if the agreement satisfies one of the following conditions: •it imposes conditions on the use of funds by the agency, department, or part of government receiving funds to carry out the program; •it governs the provision of funds from one agency, department, or part of government to another to carry out an eligible use of SLFRF funds; or •it governs the procurement of goods or services by one agency, department, or part of government from another, and the agreement also satisfies each of the following conditions: •it sets forth specific requirements, such as a scope of work and project deliverables; •it is signed by the parties to the agreement, or otherwise evidences that each party has assented to the agreement; and •it does not disclaim any binding effect or state that it does not create rights or obligations.” Considerations: Interagency MOUs may be easier and faster to execute than contracts, grant agreements or other legal vehicles and may serve as an “umbrella obligation” for other types of costs, allowing recipients to more broadly obligate funds within a discrete program in advance of the expenditure deadline. In addition, the new FAQs appear to indicate that personnel costs for positions that remain unfilled as of 12/31/24 may be obligated through an MOU.