Fiscal Note
The proposed resolution authorizes the utilization of up to $140,000 in unobligated federal Emergency Rental Assistance 2 (ERA 2) funds (Munis project 76121) to sustain the efforts of the Eviction Diversion and Defense Partnership program operated through the Tenant Resource Center. The amedned contract will extend through September 30, 2025. The program has been awarded $15.0 million of ERA 2 funds thusfar. No additional appropriation is required.
Title
Authorizing the Mayor and City Clerk to execute a contract amendment between the City of Madison and the Tenant Resource Center (TRC), utilizing up to $140,000 in remaining federal Emergency Rental Assistance funds, to sustain efforts to promote housing stability for eligible households in Dane County through TRC's Eviction Diversion and Defense Partnership. (Citywide)
Body
BACKGROUND
Near the beginning of the COVID-19 pandemic, Congress enacted two pieces of legislation that created funding for Emergency Rental Assistance: the Consolidated Appropriations Act, 2021 (H.R. 133, Public Law 116-260, a/k/a "COVID Relief Act" or “ERA1”), and the American Rescue Plan Act of 2021 (H.R. 1319, Public Law 117-2 a/k/a “ERA2”). These funds were distributed by the U.S. Treasury Department to state and local governments for use in preventing evictions and promoting housing stability among households affected by the COVID-19 pandemic. Through these acts, the City of Madison received approximately $33 million in ERA1 and $45.3 million in ERA2 allocations.
Together, these federal Emergency Rental Assistance Program funds, both ERA1 and ERA2, have been used by the City in collaboration with similar allocations received by Dane County. The largest portion of these funds went to support a local rental assistance program known as Dane CORE, created to provide direct assistance to eligible applicants, as well as associated housing stability services, through vendor contracts with local community organizations. In 2023, the Dane CORE program ended, but the Common Council awarded additional ERA funding to support the Eviction Diversion and Defense Partnership (EDDP), operated through Tenant Resource Center, through September 30, 2025, the date by which all ERA funds must be expended (RES-24-00095, Legistar #81628).
Due to unspent funds within other program areas, a small portion of Emergency Rental Assistance funds (approximately $140,000) remains unobligated within CDD’s 2025 Operating Budget. This resolution seeks authorization to amend the City’s agreement with the Tenant Resource Center to provide up to $140,000 in additional ERA2 funding for TRC's Eviction Diversion and Defense Partnership, utilizing the remaining unobligated funds. These dollars will be available to the EDDP program through September 30, 2025, for the provision of legal services for eligible tenants.
ACTION
WHEREAS, on December 21, 2020, Congress enacted the Consolidated Appropriations Act, 2021 (H.R. 133), which included $25 billion in Emergency Rental Assistance Program funding ("ERA1") to be distributed to state and local governments for use in preventing evictions and promoting housing stability among households affected by the COVID-19 pandemic, of which the City accepted roughly $33 million in ERA1 funds, comprised of a direct allocation from the U.S. Treasury Department and reallocation from the Wisconsin Department of Administration's Division of Energy, Housing & Community Resources; and,
WHEREAS, on March 10, 2021, Congress enacted the American Rescue Plan Act of 2021 (H.R. 1319), which included an additional $21.5 billion in Emergency Rental Assistance Program funding ("ERA2"), of which the City received roughly $45 million, comprised of a direct allocation from the U.S. Treasury Department, and a reallocation from the Wisconsin Department of Administration's Division of Energy, Housing & Community Resources; and,
WHEREAS, the City used these funds in collaboration with Dane County, which received its own Emergency Rental Assistance allocations, to establish and support the Dane CORE and CORE 2.0 programs and the Eviction Diversion and Defense Partnership to prevent evictions and promote housing stability in Madison and Dane County; and,
WHEREAS, the Common Council authorized the use of ERA2 funds for continued support, through September 30, 2025, of the services offered under the Eviction Diversion and Defense Partnership, led by the Tenant Resource Center (RES-24-00095, Legistar #81628); and,
WHEREAS, this resolution now seeks Council approval to direct up to $140,000 in remaining unobligated Emergency Rental Assistance (ERA2) funds to the Tenant Resource Center to sustain the legal services provided through legal partners in the Eviction Diversion and Defense Partnership through September 30, 2025, including administrative costs incurred by the Tenant Resource Center;
NOW, THEREFORE, BE IT RESOLVED, that the Common Council authorizes the Mayor and City Clerk to execute an amendment to the current contract between the City and the Tenant Resource Center to add up to $140,000 in federal ERA2 funds for the purpose of sustaining legal services offered through the Eviction Diversion and Defense Partnership, and associated administrative costs; and to extend the current contract term through September 30, 2025.