A communication transmitted from Yi-An Huang, City Manager, relative to Policy Order 2023 #35, related to the Allocation Plan for Cambridge’s HOME-ARP funds

C I T Y O F C A M B R I D G E Community Development Department 344 Broadway Cambridge, MA 02139 Voice: [phone removed] Fax: [phone removed] TTY: [phone removed] www.cambridgema.gov IRAM FAROOQ Assistant City Manager for Community Development SANDRA CLARKE Deputy Director Chief of Administration KHALIL MOGASSABI Deputy Director Chief Planner To: Yi-An Huang, City Manager From: Iram Farooq, Assistant City Manager for Community Development Date: March 16, 2023 Re: Policy Order-O-7, dated February 13, 2023, related to the Allocation Plan for Cambridge’s HOME-ARP funds The City of Cambridge was awarded $2,325,283 by the U.S. Department of Housing & Urban Development (HUD) via the American Rescue Plan Act of 2021 (H.R. 1319). This is a one-time award and in order to receive the funds, the City must submit a HOME-ARP Allocation Plan (Allocation Plan) by March 31, 2023. The Allocation Plan provides an assessment of the populations targeted by HOME-ARP and general strategies the City would employ. The Allocation Plan does not identify any specific projects. Potential Use of Funds HOME-ARP funds are a one-time allocation, not subject to annual renewal. These funds are available for expenditure until September 30, 2030. Given this singular nature of the allocation, using funds to support creation of permanent supportive housing for homeless and other vulnerable populations rather than for operating purposes that would be at risk of facing a cliff effect upon expiration of funds may make the most sense. While it is difficult to predict what projects may emerge in the period when funds are to be spent, one possible use would be for a future new development or redevelopment similar in nature to 116 Norfolk St or 35 Harvey St, i.e. projects that would cater to underserved populations such as homeless persons and families, those at risk of becoming homeless, victims of domestic violence, and other populations as defined in the HOME-ARP Notice. However, we are leaving all categories of authorized uses of HOME-ARP funds in the allocation plan to maintain flexibility over time. These are: • Affordable Rental Housing • Tenant Based Rental Assistance (TBRA) • Supportive Services • Acquisition & Development of Non-Congregate Structures We would welcome input from the City Council on its priorities. Permanent supportive housing has been identified by City Councilors in prior discussions on housing and homelessness and through Envision Cambridge and Addressing Homelessness in Cambridge, MA, the report of the Cambridge Ad Hoc Working Group on Homelessness. Public Comment Period and Public Hearing

2 HUD requires that the City provide the public with the amount of the award and the range of activities it may undertake and provide 15 calendar days for public comment. The HUD-ARP Notice specifically requires that grantees consult key agencies that address the needs of qualifying populations, and public or private organizations that address fair housing, civil rights, and the needs of persons with disabilities. The City followed the HUD process as required. We will continue to consult with key constituencies as we move forward to identify specific uses and projects. Conclusion We do not recommend holding a Finance Committee hearing on the HOME-ARP Allocation Plan since we are leaving open the possibility of using the funds for all of the allowable purposes. We look forward to hearing from the City Council now and as we identify specific uses for the monies.