Council directs staff to pursue second round of housing and homeless innovations grants; keeps youth services funding recurring

City staff presented results from the most recent youth services grant year and asked the Urbana City Council for direction on how to allocate $700,000 in one‑time social‑service funding and uncommitted ARPA toward community needs.

Nick (grants staff) reviewed FY2024 program accomplishments: the youth services program awarded grants to 17 programs (13 organizations), serving several hundred youth per quarter, with a concentration on violence prevention and education. Staff said most grantees successfully drew down awarded funds and that reporting improvements would be implemented to better track unique clients across quarters.

Recommendation: Braden and staff recommended maintaining the youth services grant at $300,000 annually (a recurring allocation approved in the FY2025 budget) and using one‑time funds — a $400,000 city general‑fund allocation and approximately $300,000 in uncommitted ARPA — to support a second round of the city’s Housing and Homeless Innovations (HHI) grant program. Staff noted an additional approximately $500,000 in uncommitted HOME‑ARP funds could be made available but would require collaboration with the city of Champaign because those are joint HOME‑ARP funds.

Staff said reopening the HHI portal for a round 2 is a relatively small administrative lift because the city can reuse much of the prior application and review infrastructure and that many nonprofits have asked about another round. They described eligible categories including housing navigation, supportive services, rental assistance, non‑congregate shelter development and capacity building.

Timing and ARPA: Staff flagged ARPA timing constraints — uncommitted ARPA funds require obligation within the Treasury deadlines — and said the city can obligate ARPA with an interdepartmental memorandum of understanding if council directed staff to proceed. Several council members asked about encumbrance and whether money could be carried forward; the finance director explained committed funds can be encumbered and carried forward for execution under contract.

Council direction: Council members broadly supported staff’s approach while asking for refinements. Some members sought a broader social‑services scope (including adult workforce and food/transportation assistance) and asked that staff ensure outreach and equitable access in grant design. One council member proposed retaining part of the $400,000 general‑fund allocation for flexible social‑service grants and committing the remainder to HHI round 2. Council gave staff informal direction to proceed with reopening the HHI round and to return with a specific timetable and draft grant materials; because of ARPA deadlines staff emphasized the need for quick action to obligate uncommitted ARPA funds.

Provenance: Presentation by Braden and Nick summarizing FY2024 youth services outcomes and a staff recommendation to apply one‑time funds to a second HHI round; council discussion and informal consensus recorded at the Dec. 9 meeting.