City says HUD relaxes rules for virus funds

A sign posted at Transportation Depot Tuesday advises bus riders of new Intracity Transit policies in response to COVID-19. Riders will be screened for fevers and denied passage if they have elevated temperatures. - Photo by Grace Brown of The Sentinel-Record
A sign posted at Transportation Depot Tuesday advises bus riders of new Intracity Transit policies in response to COVID-19. Riders will be screened for fevers and denied passage if they have elevated temperatures. - Photo by Grace Brown of The Sentinel-Record

The city said Tuesday that purchases submitted for reimbursement from its $254,743 allocation of Community Development Block Grant funds Congress made available for COVID-19 response can be approved administratively.

Deputy City Manager Lance Spicer said disbursements don't have to follow the U.S. Department of Housing and Urban Development's normal CDBG process. Projects funded by the program typically have to be prioritized by the city's Community Development Advisory Committee and approved by the Hot Springs Board of Directors.

The process includes open hearings and public commentary.

"The guidance from HUD has been the funds must help the community prevent, prepare for and respond to the coronavirus," Spicer said, noting the money is in addition to the city's annual CDBG allocation. "The portion of the (CARES) Act that HUD points to states supplemental funds may be used 'to reimburse allowable costs incurred prior to receipt of the award provided such costs were used to prevent, prepare for or respond to COVID-19.'"

The city said it has been approved for a $433,067 annual CDBG allocation for the federal fiscal year ending in September.

Spicer said emergency powers City Manager Bill Burrough invoked last month coupled with the authority the board delegated while the emergency declaration is in effect gives the city further confidence money HUD provided for COVID-19 mitigation doesn't have to follow regular disbursement protocols.

"The emergency declaration/powers ordinance along with the supplemental funding guidance is further confirmation that the city manager is authorized to make purchases to prevent, prepare and respond to the coronavirus and be reimbursed once the funds are available for draw down," he said.

The city board considered a resolution Tuesday night reallocating $14,395 in unspent CDBG funds from prior years to the city's COVID-19 response. Authority to reprogram the funds will be available when HUD approves the reallocation, the city said.

Spicer said the public submitted several letters and comments in support of redirecting the unspent CDBG funds to COVID-19 mitigation.

Burrough told the board last week the money could be used to help local health care providers acquire point-of-care test kits the Food and Drug Administration recently approved. The rapid test kits return results in minutes, significantly expediting the turnaround time providers experience when submitting specimens to commercial labs.

CDBG money could also be used to purchase protective equipment for evaluation centers providers have set up at clinics and hospitals. Burrough said some of the protective equipment the city and Garland County have acquired on the open market has been sent to the centers.

Money the city and county spend acquiring protective equipment is eligible for reimbursement from the Federal Emergency Management Agency under the emergency declaration County Judge Darryl Mahoney issued last month.

Mahoney issued an executive order Monday mandating masks covering the mouth and nose be worn inside county buildings, but Burrough said Tuesday that the city isn't requiring masks to be worn inside city government buildings. Last month the city began screening the public and city employees in the foyer of City Hall, taking temperatures with a no-touch thermometer and limiting access to the interior offices.

Tuesday the city announced bus passengers would be screened using no-touch thermometers. Those with elevated temperatures would be denied entrance and advised to contact the local COVID-19 call center at 501-760-4307.

Burrough said he was pleased high-traffic businesses such as Walmart have put social distancing measures in place. Saturday the retail giant began limiting store traffic to five customers per 1,000 square feet.

"I know Lowe's was pretty busy this weekend," he said. "They did have some areas where they were trying to space people out at check out counters and have Plexiglas between you and the cashier. I was glad to see Walmart make the move they did. I know it's an inconvenience for people who have to wait to be able to shop, but I think it's the right thing to do."

Local on 04/08/2020

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