HomeMy WebLinkAboutPR 24453: CONTRACT AMENDMENT #2 FOR THE CATHOLIC CHARITIES __ .____
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INTEROFFICE MEMORANDUM
Date: September 9, 2025
To: The Honorable Mayor and City Council
Through: Ronald Burton, CPM, City Manager
From: Mary Essex, Grants Program Administrator
RE: Contract Amendment#2 for the Catholic Charities—P. R. #24453
Introduction:
This agenda item seeks the City Council's authorization to approve Catholic Charities' second
HOME Investment Partnerships Grant American Rescue Plan(HOME-ARP)budget amendment.
The amendment will allocate an additional $1,116.00 of HOME-ARP funding to Catholic
Charities and amend the budget to permit the use of HOME-ARP funds for Food Purchases,
Outreach, Transportation, and Financial Assistance Costs for eligible participants.
Catholic Charities was allocated $105,018.00 of HOME-ARP funding in 2023. It has expended
$31,561.13 of grant funds and has a balance of$73,456.87. Catholic Charities has assisted 56
families.
Background:
To address the need for homelessness assistance and supportive services, Congress appropriated
$5 billion in American Rescue Plan funds to be administered through the Home Investment
Partnerships (HOME)program to perform four activities that must primarily benefit qualifying
individuals and families who are homeless, at risk of homelessness, or in other vulnerable
populations
Resolution 23-295 allocated$105,018.00 to Catholic Charities to provide services to residents
who qualify under the HOME-ARP grant.
Resolution 25-286 amended the HOME-ARP contract expiration date from July 10, 2025,to July
9, 2026.
Catholic Charities was selected to receive the additional HOME-ARP funding because of the
number of services it offers the homeless community.
Budget Impact:
The HOME Investment Partnership Grant American Rescue Plan(HOME-ARP) is the only
funding source.
THE ACCOUNT NUMBER IS 108-13-033-5470-00-40-000; PROJECT # HMEARP2.
Recommendation:
It is recommended that the City Council approve P. R. #24453.
S:\grants2\HOME ARP\Resolutions\AMENDMENT#2 FOR CATHOLIC CHARITIES.docx
P. R. # 24453
08/12/2025 —M.E.E.
RESOLUTION NUMBER
A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE
AMENDMENT#2 TO THE HOME INVESTMENT PARTNERSHIPS PROGRAM
AMERICAN RESCUE PLAN (HOME-ARP) CONTRACT WITH CATHOLIC
CHARITIES OF SOUTHEAST TEXAS. THE AMENDMENT WILL ALLOCATE
AN ADDITIONAL $1,116.00 OF HOME-ARP FUNDING TO CATHOLIC
CHARITIES AND AMEND THE BUDGET TO PERMIT THE USE OF HOME-
ARP FUNDS FOR FOOD PURCHASES, OUTREACH, TRANSPORTATION,
AND FINANCIAL ASSISTANCE COSTS FOR ELIGIBLE PARTICIPANTS.
THE ACCOUNT NUMBER IS 108-13-033-5470-00-40-000; PROJECT #
HMEARP2.
WHEREAS,to address the need for homelessness assistance and supportive services,
Congress appropriated $5 billion in American Rescue Plan funds to be administered through the
Home Investment Partnerships (HOME)program to perform four activities that must primarily
benefit qualifying individuals and families who are homeless, at risk of homelessness, or in other
vulnerable populations. These activities include: (1) development and support of affordable
housing; (2)tenant-based rental assistance (TBRA); (3)provision of supportive services; and(4)
acquisition and development of non-congregate shelter units; and,
WHEREAS, Resolution 23-295 allocated $105,018.00 to Catholic Charities to provide
services to residents who qualify under the HOME-ARP grant; and,
WHEREAS, Catholic Charities has expended $31,561.13 of grant funds and has a
balance of$73,456.87; and,
WHEREAS, Resolution 25-286 amended the HOME-ARP contract expiration date from
July 10,2025, to July 9, 2026; and,
WHEREAS,the Department of Housing and Urban Development(HUD) has allocated
an additional $1,116.00 of HOME-ARP funding to the city due to an administrative error that
resulted in the city receiving less HOME-ARP funds than legally entitled to receive (see
Attachment"A"); and,
Pr
WHEREAS, Catholic Charities requests to amend its HOME-ARP contract to permit
expenditures related to food purchases, outreach,transportation, and financial assistance for
eligible participants according to the Department of Housing and Urban Development Notice:
CPD-21-10. The amendment will not exceed the contract balance; see Attachment"B"; and,
WHEREAS, the City Council now finds it desirable and appropriate to amend the
Catholic Charities' HOME-ARP budget to include an additional $1,116.00 of HOME-ARP
funding and to permit expenditures related to food purchases, outreach, transportation, and
financial assistance; and,
WHEREAS,the City Council is required to designate an official to sign all documents in
connection with Amendment#2; now,therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT
ARTHUR,TEXAS:
THAT the City Manager is authorized to execute an amendment to the contract with the
Catholic Charities from:
• Salaries
• HMIS/Client Track
• Office Supplies
• Copier Costs
• Internet/Desktop Computer
• Cell Phone
• State ID/Driver's License Assistance
To the following:
• Salaries
• HMIS/Client Track
• Office Supplies
• Copier Costs
• Internet/Desktop Computer
• Cell Phone
• State ID/Driver's License Assistance
• Food Purchase
• Outreach services
• Transportation
• Financial Assistance costs
THAT a copy of the caption of this Resolution be spread upon the minutes of the City
Council.
READ,ADOPTED AND APPROVED this day of A. D., 2025
at a Regular meeting of the City Council of the City of Port Arthur, Texas by the following vote:
AYES: MAYOR;
COUNCILMEMBERS:
NOES:
CHARLOTTE M. MOSES,MAYOR
ATTEST:
SHERRI BELLARD
CITY SECRETARY
APPROVED AS TO FORM:
ROXANN PAIS COTRONEO
CITY ATTORNEY
APPROVED FOR ADMINISTRATION:
O�'/
RO ALD TON, PM
IT ANA E
4,1„,./tc_ ,
PAMELA LANGFORD
ASSISTANT CITY MANAGER-OPERATIONS/
DIRECTOR OF DEVELOPMENT SERVICES
APPROVED AS TO AVAILABILITY OF FUNDS:
(et 69'gati/
LYN A BOSWELL
DIRECTOR OF FINANCE
ATTACHMENT "A"
U.S.DEPARTMIENT OF HOUSING AND URBAN DE'tLOPtfEyT
• idillli* m WASHINGTON.DC 20410-7000
OFFICE OF CO\RIL'NTTY PLAVNL`O
AND DEVELOPMENT
April 30. 2025
The Honorable Thurman Bartie
Mayor of Port Arthur
City of Port Arthur
444 4th Street
PO BOX 1089
Port Arthur, TX 77640
Dear Mayor Bartie:
In 2021,the Department of Housing and Urban Development's (HUD or the Department)
Office of Community Planning and Development(CPD)allocated $5 billion appropriated by the
American Rescue Plan Act(ARP) of 2021 to HOME Investment Partnerships Program participating
jurisdictions. These funds, known as "HOME-ARP," are intended to give you the financial tools to
assist your most vulnerable citizens by providing housing, shelter, tenant-based rental assistance, and
supportive services for persons experiencing or at risk of homelessness, fleeing or attempting to flee
domestic violence, dating violence, sexual assault, stalking, or human trafficking, and other
populations at greatest risk of housing instability.
While conducting recent quality control efforts,the Department discovered an administrative
error in the allocations of the HOME-ARP funds. This error resulted in your jurisdiction inadvertently
being allocated less HOME-ARP funds than it was legally entitled to receive. Specifically, the
Department determined that your jurisdiction received $1,116.00 less in its HOME-ARP allocation
than it should have. This letter notifies you of the corrected amount of your HOME-ARP award.
Original HOME-ARP Additional Allocation Revised HOME-ARP
Award Amount Award
$1,000,453.00 $1,116.00 $1,001,569.00
Attached is an amended HOME-ARP grant agreement for your agency's signature, indicating
the additional amount you are entitled to and your final corrected amount. Please sign this agreement
and return it to your CPD Representative. Please note: Build America, Buy America provisions
continue to be waived for HOME-ARP.
Additionally, you must amend your HOME-ARP allocation plan to include the correct amount
of HOME-ARP funds in accordance with HUD Notice CPD-21-10 and your citizen participation plan.
Depending upon the criteria for substantial amendments established in your citizen participation plan,
you may be required to develop a substantial amendment to the HOME-ARP allocation plan.
The requirements for substantial amendments can be found in section V.C.6 of HUD Notice
CPD-21-10. The Department can assist you in determining what may be required to be included in a
substantial amendment.
1 ,
2
The Department regrets this error and apologizes for any inconvenience it may cause.
We are working hard to make this process as seamless as possible for all affected recipients. If you or
your staff wish to discuss this correction or have any questions about HOME-ARP, please contact your
local HUD Field Office or HUD's Office of Affordable Housing Programs at HOMEARPAhud.gov.
Sincerely,
Claudette Fernandez
General Deputy Assistant Secretary
for Community Planning and Development
Docusign Envelope ID:CB884D76-869E-432B-88A2-F8 'F28F4F U.S. Department `Housing and Urban Development
HOME ARP Grant Agreement Office of imunity Planning and Development
Title II of the Cranston-Gonzalez National Affordable Housing Act
Assistance Listings#14.239—HOME Investment Partnerships Program
1. Grantee Name(must match name associated with 3b.)and 2. Grant Number(Federal Award Identification Number(FAIN)
Address M21 MP480217
City of Port Arthur 3a Tax Identification Number 3b. Unique Entity Identifier(formerly DUNS)
444 4th Street 746001885 EMVNEFYW2KN4
PO BOX 1089 4.Appropriation Number 5. Budget Period Start and End Date
Port Arthur,TX 77640 861/50205 FY 2021—09/30/2030
6. Previous Obligation(Enter"0"for initial FY allocation) $1,000,453.00
a. Formula Funds $1,000,453.00
7. Current Transaction(+or-) $1,116.00
a. Administrative and Planning Funds Available on Federal Award Date $
b. Balance of Administrative and Planning Funds $
c. Balance of Formula Funds $1,116.00
8. Revised Obligation $1,001,569.00
a. Formula Funds $1,001,569.00
9. Special Conditions(check applicable box) 10.Federal Award Date(HUD Official's Signature Date)
® Not applicable ❑Attached (mm/dd/y
yyy) 9/20/2021
11. Indirect Cost Rate* 12.Period of Performance
Administering Agency/Dept. Indirect Cost Rate Direct Cost Base Date in Box#10-09/30/2030
— _%
•If funding assistance will be used for payment of indirect costs pursuant to 2 CFR
—
% 200, Subpart E-Cost Principles, provide the name of the department/agency, its
—% indirect cost rate(including if the de minimis rate is charged per 2§CFR 200.414),and
—
the direct cost base to which the rate wit be applied. Do not include cost rates for
—
% subrecipients.
The HOME-ARP Grant Agreement(the"Agreement")between the Department of Housing and Urban Development(HUD)and the Grantee is made pursuant to the authority
of the HOME Investment Partnerships Act(42 U.S.C. 12701 et seq.)and Section 3205 of the American Rescue Plan(P.L. 117-2)(ARP). HUD regulations at 24 CFR part 92(as
may be amended from time to time),the CPD Notice entitled"Requirements for the Use of Funds in the HOME-American Rescue Plan Program"(HOME-ARP Implementation
Notice)(as is now in effect and as may be amended from time to time)„the Grantee's HOME-ARP allocation plan(as of the date of HUD's approval,and as amended from time to
time),and this HOME-ARP Grant Agreement,form HUD-40093a,including any special conditions(in accordance with 2 CFR 200.208),constitute part of this Agreement. HUD's
payment of funds under this Agreement is subject to the Grantee's compliance with HUD's electronic funds transfer and information reporting procedures issued pursuant to 24
CFR 92.502 and the HOME-ARP Implementation Notice(both as are now in effect and as may be amended from time to time).To the extent authorized by HUD regulations at 24
CFR part 92,HUD may,by its execution of an amendment,deobligate funds previously awarded to the Grantee without the Grantee's execution of the amendment or other consent.
The Grantee agrees that funds invested in HOME-ARP activities under the HOME-ARP Implementation Notice are repayable in accordance with the requirements of the HOME-
ARP Implementation Notice as it may be amended from time to time.The Grantee agrees to assume all of the responsibility for environmental review,decision making,and actions,
as specified and required in regulation at 24 CFR 92.352 and 24 CFR Part 58,as well as the HOME-ARP Implementation Notice.
The Grantee must comply with the applicable requirements at 2 CFR part 200, as amended, that are incorporated by the program regulations and the HOME-ARP
Implementation Notice,as may be amended from time to time.Where any previous or future amendments to 2 CFR part 200 replace or renumber sections of part 200 that are cited
specifically in the program regulations or HOME-ARP Implementation Notice,activities carried out under the grant after the effective date of the 2 CFR part 200 amendments will
be governed by the 2 CFR part 200 requirements,as replaced or renumbered by the part 200 amendments.
The Grantee shall comply with requirements established by the Office of Management and Budget(OMB)concerning the Universal Numbering System and System for Award
Management(SAM)requirements in Appendix Ito 2 CFR part 200,and the Federal Funding Accountability and Transparency Act(FFATA)in Appendix A to 2 CFR part 170.
The Period of Performance for the funding assistance shall begin on the date specified in item 12 and shall end on September 30th of the 6'h fiscal year after the expiration of
the period of availability for obligation. Funds remaining in the grantee's Treasury account after the end of the budget period will be cancelled and thereafter not available for
obligation or expenditure for any purpose.Per 31 U.S.C.1552,the Grantee shall not incur any obligations to be paid with such assistance after the end of the Budget Period.
The Grantee must comply with the requirements of the Build America,Buy America(BABA)Act,41 U.S.C.8301 note,and all applicable rules and notices,as may be amended,
if applicable to the Grantee's infrastructure project.Pursuant to HUD's Notice,"Public Interest Phased Implementation Waiver for FY 2022 and 2023 of Build America,Buy America
Provisions as Applied to Recipients of HUD Federal Financial Assistance"(88 FR 17001) 2023-05698.pdf(govinfo.pov), any funds obligated by HUD on or after the applicable
listed effective dates,are subject to BABA requirements,unless excepted by a waiver.
13.For the U.S. Department of HUD(Name and Title of Authorized Official) 14. Signature ' o.¢n a I�. 15. Date
Leticia Ibarra CPD Director (gioA, Iloam, 5/27/2025
16.For the Grantee(Name and Title of Authorized Official) 17.Signature r'b 4Uu`""4btl
�o�a I elt3ulrn CoMarlQ� 18.Date
r 6 / 9 LdL3
19.Check one:
❑ Initial Agreement ® Amendment#1
20. Funding Information: HOME ARP
Source of Funds Appropriation Code PAS Code Amount
2021 861/50205 HMX $1,116.00
Page 1 form HUD-40093a
ATTACHMENT "B"
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C(T
ATHOLIC CHARITIES OF SOUTHEAST TEXAS
2780 Eastex Freeway Beaumont, Texas 77703 1.855.924.4400 www.catholiccharitiesbmt.org
June 12, 2025
Mary E. Essex
Grants Manager
Development Services Department
City of Port Arthur
P. O. Box 1089
Port Arthur, TX 77641-1089
Dear Ms. Essex,
It has been our honor to work with the City of Port Arthur to address some of the issues
regarding homelessness, through the HOME ARP Program. Margaret Marsh, our Case
Manager, has become a visible presence at the Hospitality Center and has served many
individuals with assistance through this program.
Although the work continues, based on our current contract guidelines, we will be unable to
exhaust the grant balance within the terms of the contract. As such, I am writing to request an
extension for the time allotted to deliver the HOME ARP Program on behalf of the City of Port
Arthur and, to expand the services that we provide to include other services outlined in Section
D. Supportive Services, of the Requirements for the Use of Funds in the HOME-American
Rescue Plan Program.
As discussed in our recent call, it is becoming increasingly evident that, to spend the balance of
the grant, we will need to provide additional assistance, as defined under Section D. Supportive
Services. The initial grant from the City of Port Arthur was $105,000.00. Our records
indicate that we have a current balance of$73,456.87. With your approval, we will be able to
provide more services to the homeless and those at risk of homelessness and further assist the
City in addressing this need.
In addition to the activities outlined in Exhibit A of our contract, we would also like to expand our
services under Section D: Supportive Services, part 4.c to include:
(D) Food
(J) Outreach services
(L) Transportation
(R) Financial assistance costs
Article V, Section 1. of our contract states that the contract is for two years from the date of
execution. Section 2., of Article V, allows for a two-month extension, however, based on our
current spending rate, we will be unable to exhaust the fund balance in that timeframe. We
would like to request an extension of this contract to June 30, 2026, which is the end of our next
fiscal year.
Thank you very much for your consideration of this request. It is our pleasure to continue to
serve the City of Port Arthur through this partnership under HOME-ARP.
Sincerely,
0/-
Carolyn R. Fernandez
President/CEO
cc: Fred Lemond, Vice President of Programs, CCSETX
Amendment #2
DATE: September 09, 2025
CATHOLIC CHARITIES OF SOUTHEAST TEXAS
PROJECT DESCRIPTION: HOME-ARP funding will cover the cost of Salaries,
HMIS/Client Track, Office Supplies, Copier Costs, Internet/Desktop Computer, Cell Phone, and
State ID/Driver's License Assistance.
AMENDED DESCRIPTION: Salaries, HMIS/Client Track, Office Supplies, Copier
Costs, Internet/Desktop Computer, Cell Phone, and State ID/Driver's License Assistance, Food
Purchase, Outreach services, Transportation, and Financial Assistance costs.
ORIGINAL BUDGET: $105,028.00
AMENDED BUDGET: $106,144.00 (increase of$1,116.00)
ORIGINAL CONTRACT BUDGETS:
• Salaries
• HMIS/Client Track
• Office Supplies
• Copier Costs
• Internet/Desktop Computer
• Cell Phone
• State ID/Driver's License Assistance
AMENDED CONTRACT BUDGETS:
• Salaries
• HMIS/Client Track System
• Office Supplies
• Copier Costs
• Internet/Desktop Computer
• Cell Phone
• State ID/Driver's License Assistance
• Food—The cost to provide meals or groceries to program participants. Catholic Charities
will purchase HEB Gift Cards (Food only) in$25 increments. Clients may receive a
maximum of$100 monthly for up to three(3)months. Eligible clients include homeless
clients, clients who recently received housing assistance, and clients who are"at-risk of
homelessness". Catholic Charities has to provide the City of Port Arthur with
documentation of the recipient's name, address, proof of program eligibility,the number
of gift cards received, and the date the gift card was issued. The Director of Catholic
Charities and a case manager must sign the documentation.
• Outreach Services—The cost of activities to engage the qualified population for the
purpose of providing immediate support and intervention, as well as identifying potential
program participants, is eligible.
o Eligible costs include the outreach worker's transportation costs and a cell phone
to be used by the individual performing the outreach. Catholic Charities must
submit a travel log to the city with the beginning and ending odometer readings,
total miles traveled,the trip's reason,the date, and the outreach worker's name.
The travel log must include the worker's and supervisor's signature. The outreach
work will be reimbursed at the rate of 0.70 per mile. Please submit a copy of the
cell phone bill used by the outreach worker.
• Transportation—The costs of program participants' travel on public transportation to and
from medical care, employment, or childcare only. The grant fund will reimburse
HOME-ARP clients for public transportation(City of Port Arthur Transit bus passes).
Please provide documentation that includes the client's name, address, date, reason for
the trip, a copy of the receipt from the Port Arthur Transit, and program eligibility. The
case manager and their supervisor must sign the documentation.
• Financial Assistance—HOME-ARP funds may be used to pay housing owners, utility
companies, and other third parties for the following costs, as applicable:
o Utility payments: HOME-ARP funds may pay for up to 24 months of utility
payments per program participant, per service, including up to 6 months of utility
payments in arrears,per service. A partial payment of a utility bill counts as one
month. This assistance may only be provided if the program participant or a
member of the same household has an account in his or her name with a utility
company or proof of responsibility to make utility payments. Eligible utility
services are gas, electricity,water, and sewage. No program participant shall
receive more than 24 months of utility assistance within any 3-year period.
o First and Last month's rent—If necessary to obtain housing for a program
participant, HOME-ARP funds may be used to make a pre-payment of the first
and last month's rent under a new lease to the owner at the time the owner is paid
the security deposit for the program participant's tenancy in the housing. This
assistance must not exceed two months' rent and must be tracked for purposes of
determining the total short- and medium-term financial assistance for rent that the
program participant may receive. This assistance is separate and distinct from
financial assistance for Security Deposits.
o Payment of rental arrears—HOME-ARP funds may be used for a one-time
payment for up to 6 months of rent in arrears, including any late fees or changes
on those arrears, if necessary for the household to maintain their existing housing
or, for those without housing, if necessary to remove a demonstrated barrier to
obtaining housing.
Catholic Charities must provide the city with proof of purchase for all expenditures, including
receipts and copies of cancelled checks, before expenditures are reimbursed.
According to HUD's CPD 21-10 notice, each client's eligibility requires proper documentation,
including but not limited to name, proof of income, address, and evidence of qualifying
population, household size, and race.
CONTRACT AMOUNT due to this AMENDMENT will not exceed S74,572.87.
Executed this day of September 09, 2025
CATHOLIC CHARITIES OF SOUTHEAST TEXAS
By:
Print Name:
Title:
CITY OF PORT ARTHUR
By:
Ronald Burton, CPM
City Manager