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ARPA spending update: Chatham reports 72% allocated, federal 'obligation' guidance threatens funding for five county positions
Summary
County staff reported that about 72% of Chatham County’s $14.4 million ARPA award has been allocated and described programs in progress, but interim U.S. Treasury guidance on what counts as an "obligation" could prevent the county from charging five ARPA‑funded positions to the grant after Dec. 31 unless the final rule changes.
Chatham County staff told commissioners Feb. 19 that roughly 72% of the county’s $14.4 million American Rescue Plan Act award has been allocated to projects and programs, but interim federal guidance on what the Treasury counts as an "obligation" is threatening approximately $1.5 million in planned personnel costs.
Assistant county staff Will Kervin presented the ARPA second‑quarter update and said the largest allocated portion is to capital projects and to five county positions planned to be funded with ARPA. Those five positions — listed during the presentation as advocacy/diversion counselors, housing employees in Social Services and a housing position in the manager’s office — were estimated to cost about $1.5 million through 2026.
Kervin said the U.S. Treasury’s November interim final rule about the grant “obligation” deadline clarified that payroll commitments do not meet the Treasury’s definition of obligation in the way the county had expected. The change could prevent the county from charging multi‑year salary and benefit commitments to ARPA funds after the obligation deadline. Kervin said the county is awaiting final guidance from Treasury, which at the time of the briefing had completed a public comment period.
Kervin described active ARPA‑funded programs: the Emergency Housing Assistance Program (EHAP), which has approved 88 applications and distributed about $38,000 in one‑time payments; a new voluntary case‑management supplement called EHAP Plus to help households sustain housing; nonprofit program awards that are now beginning to report early programmatic outcomes; and translation and interpretation expenditures funded through Building Integrated Communities grants.
Commissioners asked about deposit assistance, translation funding for the UDO (Unified Development Ordinance) process and which projects are in progress versus those that have not yet moved from the planning list. Kervin said staff will return to the board in April with a proposed fallback plan for reallocating the positions’ funding if the final Treasury guidance disallows the intended obligation method for payroll.
No formal action was taken Feb. 19; commissioners asked for follow‑up options and a proposed reallocation plan to ensure the county can spend its ARPA award before federal deadlines.
