Merced County opts to allow state supervision of COVID rental assistance funds
Merced County residents on Tuesday got a glimpse into how officials plan to spend almost $54 million in American Rescue Plan Act (ARPA) dollars over the next five years on services intended to benefit the community.
The Board of Supervisors also voted to hand over local oversight of the federal Emergency Rental Assistance program from Central Valley Opportunity Center (CVOC) to the State Department of Housing and Community Development.
The Winton-based nonprofit in February was selected to distribute more than $8.26 million of the nationwide program’s $25 billion to Merced County residents in need of rent and utility assistance due to COVID-19 hardships.
During previous Board of Supervisors meetings, some residents expressed concern or frustration about CVOC’s ability to adequately administer the federal aid program.
Residents told of negative experiences with the nonprofit during a prior contract that distributed rental, mortgage and utility assistance for COVID-19-impacted residents, as well as issues with the new Emergency Assistance Program rollout.
Board members on Tuesday, however, lauded CVOC and did not cite any shortfalls in the organization’s work as reason for the switch in program oversight.
The program is being transitioned to control by the state in an effort to streamline the process for residents, according to a Merced County news release.
In addition to the $8.26 in direct federal funds, the county received about $8.89 million via a similar state Emergency Assistance Program for tenants and landlords.
Having the state oversee both the federal and state aid will enhance efficiency by creating a single program for county residents, the release said.
The federal funds as of Wednesday will be administered on behalf of Merced County to residents through the state’s Housing is Key program to eligible applicants at or below 80% of area median income.
All new applications for rental or utility assistance not already scheduled with CVOC will need to be submitted to the state COVID-19 Rent Relief Program.
American Rescue Plan Act dollars to replace lost revenue
The Board of Supervisors on Tuesday also gave county staff the okay to allocate 100% of the region’s $54 million in ARPA funds to go toward making up for revenue lost due to COVID-19.
Revenue replacement can be used to fund government services that saw a loss in revenue due to the pandemic.
The plan is meant to recognize the one-time nature of the ARPA dollars and allow for maximum spending flexibility until the funds must be used by Dec. 31, 2026.
Board members voiced support for the spending plan on account of it furthering county efforts that had already been in the works for years, but were stalled because of the pandemic and its economic effects.
“This isn’t just a gift of money, this is revenue reimbursement,” said Supervisor Daron McDaniel. “I appreciate the direction we’re going because it still has our goals in mind.”
Under the ARPA funding framework approved by the board Tuesday, there are plans to reserve $14.8 million for community facilities like parks and veterans halls, $13.5 million for correctional facilities, $10 million for road reconstruction and resurfacing, $7.2 million for flood control and water, $4 million for homeless services like the navigation center and distributive housing and $2 million for COVID-19 support like improving vaccination rates.
The funding plan leaves $2.5 million for contingency spending.
“I think this is a very responsible approach,” Supervisor Josh Pedrozo said.
