FROM:
Economic Development
SUBJECT:
Title
Fontana Forward Grant Program - Fontana Eats
End
RECOMMENDATION:
Recommendation
1. Approve and authorize the City Manager to establish and implement the Fontana Grant program not to exceed $3,000,000.
2. Approve and authorize the use of funds in the amount of $3,000,000 in Fund 302 as part of the City’s American Rescue Plan Act (ARPA) Expenditure Plan.
3. Approve and authorize the recategorization of the allocated $3,000,000 Small Business Loan/Grant Program to Assistance to Households Grant Program as part of the City’s American Rescue Plan Act (ARPA) Expenditure Plan.
4. Approve Program Creation and Name of Fontana Eats
End
COUNCIL GOALS:
• To support eligible Fontana Households who need food assistance as a result of a negative economic impact due to the COVID-19 pandemic.
DISCUSSION:
On March 8, 2022, the City Council approved the American Rescue Plan Act (ARPA) Expenditure Plan which included $3,000,000 for a Small Business Loan/Grant Program under the Federal use category of Public Health and Economic Response. On September 13, 2022, the Council approved the renaming of the project to Fontana Forward grant program (Program) with the program details to be presented at a later date. The proposed Program details are discussed below.
Due to economic uncertainty and food instability exacerbated by COVID-19, the City of Fontana is focused on providing grants to impacted households. Upon approval, the $3 million fund originally approved for small businesses will be reallocated towards this grant program, available to residents negatively impacted by COVID-19 for the creation of a food assistance program to provide direct benefit to eligible households. Therefore, renaming the grant program to Fontana Eats. The ARPA Final Rule describes the eligible households. Additionally, the ARPA Final Rule “Treasury encourages uses of funds that advance strong, equitable growth, including economic and racial equity. For the purposes of the State and Local Fiscal Recovery Funds (SLFRF), equity is described in the Executive Order 13985 On Advancing Racial Equity and Support for Underserved Communities Through the Federal Government, as issued on January 20, 2021.”
PROGRAM:
The Fontana Eats grant program will award eligible households a minimum $100 pre-paid card that can be used only at local grocery stores and local restaurants. This limitation is monitored by the issued program cards; utilizing merchant category codes (MCC) specified by the card issuer.
To further engage the community, a monthly drawing of $500 will be distributed to those that collect restaurant and grocer stamps around the city and submit their completed game card at a designated City location. Proof of purchase is necessary to win.
Program monitoring will continue until the close of the program. Please note staff will re-evaluate program effectiveness after 180 days and a full staff report will be provided to City Council to determine reallocation of funds or extension of the program under ARPA guidelines.
Program Eligibility
• All participants must provide CA issued photo ID for persons over 18 and school enrollment documentation for children under 18.
• Qualify as either:
o An Impacted Household, per the Rules set forth by the U.S. Department of Treasury. A Household is consider Impacted by the pandemic if it meets one of the below criteria:
§ Low- or moderate-income household as defined by: (i) income at or below 300 percent of the Federal Poverty Guidelines for the size of household based on the most recently published poverty guidelines or (ii) income at or below 65 percent of the area median income for the county and size of household based on the most recently published data;
§ Households that experienced unemployment;
§ Households that experienced increased food or housing insecurity;
§ Households that qualify for the Children’s Health Insurance Program, Childcare Subsidies through the Child Care Development Fund (CCDF) Program or Medicaid.
§ Pre-paid card disbursement is based on Impacted household size:
|
1 - 2pp |
3 - 4pp |
5 - 6pp |
7+pp |
|
$100 |
$200 |
$300 |
$400 |
*Proof of household size will be required for verification.
o A Disproportionately Impacted Household, per the Rules set forth by the U.S. Department of Treasury. A Household is considered Disproportionately Impacted by the pandemic if it meets one of the following criteria:
§ Low-income households as defined by: (i) income at or below 185 percent of the Federal Poverty Guidelines for the size of its household based on the most recently published poverty guidelines or (ii) income at or below 40 percent of the area median income for its county and size of household based on the most recently published data;
§ Households that live in a Qualified Community Track;
§ Households that qualify for certain federal benefits:
• Temporary Assistance for Needy Families (TANF),
• Supplemental Nutrition Assistance Program (SNAP),
• Free- and Reduced-Price Lunch (NSLP) and/or School Breakfast (SBP) programs,
• Medicare Part D Low-Income Subsidies,
• Supplemental Security Income (SSI),
• Head State and/or Early Head Start,
• Special Supplemental Nutrition Program for Women, Infants, and Children (WIC),
• Section 8 Vouchers,
• Low-Income Home Energy Assistance Program (LIHEAP),
• Pell Grants.
§ Households that receive services provided by Tribal governments.
§ Pre-paid card disbursement is based on Disproportionately Impacted household size:
|
1 - 2pp3 - 4pp5 - 6pp7+pp |
|
|
|
|
$200 |
$400 |
$500 |
$600 |
*Proof of household size will be required for verification.
ARPA Eligibility:
Based upon the Program details as discussed above, is eligible under Assistance to Households.
FISCAL IMPACT:
A total of $3 Million Dollars of the American Rescue Plan Act (ARPA) funding was budgeted in FY 2021/22, in Fund 302, Project 10500001-302-A-8028, Small Business Loan / Grant Program and upon approval reallocated to Assistance to Households. Funds were rolled over in FY 2022/23 for program implementation.
MOTION:
Approve staff recommendation.