AUSTIN (KXAN) — Conversations are happening now at the City of Austin about what happens when more than $188.5 million in federal pandemic relief funding runs out. More than half of that money is going toward addressing homelessness.
“[That] included the investment in permanent supportive housing, we’re gonna see over 400 new permanent supportive housing units come online by the end of the year. It also included some strategic investment in rapid rehousing,” Council Member Vanessa Fuentes said.
In 2021, President Joe Biden signed off on a massive amount of COVID-19 relief funding called the American Rescue Plan Act (ARPA) that, in part, shoveled billions to state and local governments, including the City of Austin.
The roughly 30 programs the City of Austin said it would use that money for include rapid rehousing, funding homelessness service providers, affordable childcare and access to food.
Of the roughly $188.5 million the City of Austin got in that ARPA funding to do it, Austin has spent more than $105 million of it — roughly 55% — according to an annual expenditures report the city was required to submit to the federal government last week. KXAN received it through the Texas Public Information Act.
But the report also shows a significant amount of that money has been allocated already, though it may not be technically spent yet. In all, that document shows there’s about $30 million left to be allocated.
“Truth be told, there’s not a lot of wiggle room here on how we’re able to allocate our federal dollars. In fact, we’re on a timeline on how we’re able to expend them and to ensure they are appropriately allocated,” Fuentes said.
Governments are required to have all of their funds allocated by the end of this year and spent by the end of 2026 if they want to hang on to them.
When asked if city council members would require city staff to report back on how successful those programs end up being, Fuentes said they would. But she also said it could take some time, particularly when it comes to projects like permanent supportive housing.
“Absolutely, it’s on us to ensure that we have a transparent and accountable system in place,” Fuentes said.
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