Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Michael P. Callagy, County Executive
Subject: Final American Rescue Plan Act (ARPA) Funding Allocations
RECOMMENDATION:
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Adopt a resolution:
A) Authorizing the reallocation of $12,575,000 from San Mateo County's previously obligated American Rescue Plan Act (ARPA) funds to eligible housing projects and related needs; and
B) Authorizing and directing the County Executive, or designee, in consultation with the County Attorney, to negotiate and enter into agreements and/or amendments, as necessary and advisable, to expend the $12,575,000 in specified reallocated ARPA funds for ARPA-eligible housing projects and related needs; and
C) Authorizing the County Executive, or designee, to use general funds or other available funds, to fund previously obligated ARPA projects from which funds have been reallocated, as may be necessary and advisable.
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BACKGROUND:
The federal government has allocated to the County $148,897,819 in Coronavirus State and Local Fiscal Recovery Funds under the American Rescue Plan Act (ARPA). These funds were distributed to support state and local governments in responding to the COVID-19 pandemic and its negative economic consequences by funding a range of eligible uses specified in the ARPA legislation and federal guidance.
On May 20, 2021, the County received its first tranche of ARPA funds in the amount of $74,448,909, which funds the Board appropriated in the FY 2021-22 Adopted Budget. On July 25, 2022, the County received its second tranche, $74,448,909, which funds the Board appropriated in the FY 2022-23 Adopted Budget.
To date, the County has spent $139,371,810 of its original APRA fund allocation of $148,897,819. All ARPA funds received by the County have been obligated for ARPA-eligible purposes within the timelines required by ARPA. Some projects did not expend the full amount obligated due to efficient program rollout, changed priorities, or other circumstances warranting reallocation, thereby making such funding available to supplement previously obligated ARPA-eligible projects that require additional support. The County has worked to ensure eligible projects receive the funding necessary to account for potential changes in project timelines and expenditures with the overall goal of fully spending all obligated ARPA funds within the ARPA expenditure deadline of December 31, 2026.
DISCUSSION:
Addressing housing-related concerns remains a top priority for the County. Certain ARPA-eligible use such as, funding for programs to relieve housing insecurity, develop affordable housing, and provide assistance for individuals and families experiencing homelessness, can help to address those concerns.
Under ARPA, funds must be obligated by December 31, 2024 and fully expended not later than December 31, 2026. The County is making its final reallocations of previously obligated ARPA funds before June 30, 2026 (end of FY 2025-26) to ensure these funds are expended no later than December 31, 2026.
In view of these deadlines, staff recommends that the Board reallocate the balance of previously obligated ARPA funds, in the total amount of $12,575,000, to existing ARPA-eligible housing projects and related needs. This approach allows for flexibility with any potential changes to project timelines or expenditures leading up to the deadline. Staff recommends that the Board approve the use general funds or other available funds, to fund previously obligated ARPA projects from which funds have been reallocated, as may be necessary and advisable.
Staff further recommends that the Board authorize the County Executive, or designee, in consultation with the County Attorney, to negotiate and enter into agreements and/or amendments, as necessary and advisable, to obligate and expend the $12,575,000 in specified ARPA funds for ARPA-eligible housing projects and related needs, such as Casa Esperanza, 721 Airport Blvd (formerly Ramada Inn), LINC’s Corners (Hill Street project), Middlefield Junction, Monarch at Redwood, and the Navigation Center.
The County Attorney’s Office has reviewed the proposed resolution as to form.
COMMUNITY IMPACT:
Reallocation of the County’s remaining ARPA funds will help to address housing-related issues facing our community’s vulnerable residents.
FISCAL IMPACT:
The balance of all received ARPA funds have been included in the FY 2026-27 Recommended Budget. There is no fiscal impact on the County General Fund associated with approving the final reallocation of ARPA funds. To the extent that General Fund or other available funds are used to fund ARPA projects from which funds were reallocated, such amounts will be addressed in the FY 2026-27 September revisions budget thereto.