Agenda - Council Work Session - 03/08/2022

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Federal Register/Vol. 87, No. 18/Thursday, January 27, 2022/Rules and Regulations 4441 to entities impacted by the pandemic. low-income cutoff, 185 percent of the governments—were disproportionately Recipients also retain flexibility to FPG for a family of four is$49,025, impacted. In the final rule,to further identify and serve other populations which is approximately the wage decrease administrative burden and and entities that experienced pandemic earnings for a two-earner household enhance recipient flexibility,Treasury is impacts, ensuring that recipients can where both earners receive the median allowing recipients to also presume that meet the particularized needs of their wage in occupations, such as waiters low-income households were local communities. and waitresses and hotel clerks,that disproportionately impacted. Treasury Defining Low and Moderate Income: were heavily impacted by COVID-19. anticipates that adding low-income To streamline the provision of funds As such,this cutoff is likely to include households as a presumed eligible relating to negative economic impacts more workers in industries heavily population will maintain targeting of resulting from the pandemic,Treasury impacted by COVID-19,who may be funds to populations and communities has created an eligibility standard most likely to face disproportionate most likely to have experienced severe making it easier for recipients to provide impacts of the pandemic,than a lower pandemic impacts,while providing a assistance to low-and moderate-income threshold.392 With respect to the more flexible approach for recipients. populations without needing to identify moderate-income cutoff,many Identifying Impacted Classes:In the and document a specific negative households with incomes between 200 final rule, Treasury reiterated its stance economic impact.Populations falling percent and 300 percent of the FPG in the interim final rule allowing under the definition of low income are struggle with a lack of economic recipients to designate a class of presumed to have been security,suggesting that 300 percent of households or other entities as impacted disproportionately impacted by the the FPG was an appropriate cutoff for or disproportionately impacted and pandemic,while those falling under the moderate income. provide responsive services.After definition of moderate income are Treasury also considered relatively designating a class,recipients can serve presumed to have been impacted by the higher thresholds for both an FPG and a household or entity by simply pandemic.In addition,the final rule AMI approach;however,increasing identifying that the household or entity recognizes categorical eligibility for income thresholds for presumed is a member of the class. Relative to certain enumerated programs and eligibility increases the likelihood that restricting services to only presumed populations if a recipient chooses to higher-income workers,who generally eligible populations identified by implement categorical eligibility when experienced fewer economic impacts Treasury,this decision provides vital identifying impacted and from the pandemic,would become administrative flexibility for recipients disproportionately impacted presumed eligible for responsive that may identify particular impacted populations. Treasury considered services.Providing services to classes in the context of their several options for eligibility standards households that did not experience a jurisdiction. Treasury anticipates that that would reduce administrative negative economic impact, or SLFRF funds will be targeted to burdens for recipients when experienced a relatively minimal impacted or disproportionately determining who qualifies as low and impact,would provide much less impacted communities,as recipients moderate income. benefit than serving households that must demonstrate that the designated One option involved defining a experienced more severe impacts, class experienced negative economic household as low income or moderate diluting the benefits of the SLFRF impacts or meaningfully more severe income based only on FPG thresholds funds. negative economic impacts.This and could use levels lower than those In all Treasury anticipates that these approach maintains the requirement selected. This option involved setting , y p that entities served have to have uniform thresholds throughout the selected thresholds, combined with the experienced a negative economic regional adjustment will allow p g country. resources to be targeted toward impact,while simultaneously A second option took a broader minimizing any administrative costs approach, defining a household as low individuals and households with the pp g greatest need while also reducing associated with meeting this income if it has (i)income at or below administrative burdens on recipients. requirement. 185 percent of the FPG for the size of its household or(ii)income at or below Disproportionately Impacted Additional Enumerated Uses Populations:In the interim final rule, 40 percent of the AMI for its county and Treasury enumerated a broader set of The interim final rule enumerated size of household. The option defined a eligible uses for disproportionately eligible uses of SLFRF funds to serve household as moderate income if it has both impacted and disproportionately (i) income at or below 300 percent of the impacted communities,in recognition impacted communities. For example, FPG for the size of its household or(ii) of the pre-existing health, economic, enumerated eligible uses to serve income at or below 65 percent of the and social disparities that contributed to impacted communities included food AMI for its county and size of disproportionate pandemic impacts in assistance;rent,mortgage, or utility household. The combination of an FPG certain communities and that assistance; and counselling and legal aid floor with AMI allows for a regional addressing root causes of those to prevent eviction or homelessness. adjustment in areas with substantially disparities constitutes responding to the Examples of enumerated eligible uses to higher costs and incomes. Finally, public health and negative economic serve disproportionately impacted Treasury also considered a range of FPG impacts of the pandemic. To identify communities included remediation of and AMI thresholds above and below these communities and reduce lead paint or other lead hazards and these levels. administrative burden,Treasury housing vouchers and assistance Treasury chose the second option. allowed recipients to presume that relocating to neighborhoods with higher Treasury believes that the higher FPG certain populations—those in QCTs and levels of economic opportunity. In the floor will ease administrative burdens those being served by Tribal final rule,Treasury had the option to by making more households retain, expand, or reduce enumerated presumptively eligible for funds meant ssz See U.S.Bureau of Labor Statistics, eligible uses, or shift use eligibility Occupational Employment and Wage Estimates, to address negative economic impacts in https://www.bls.govloes/currentloes_nat.htm(last between disproportionately impacted a targeted manner.With respect to the visited November 9,2021). and impacted communities. Many