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Attachment 7 - Draft ARPA - Strategic Investment Plan.pdf

Richmond City Council
May 16, 2023

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Attachment 7 - Draft ARPA - Strategic Investment Plan.pdf
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May 16, 2023
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Richmond City Council
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Richmond, CA | Strategic Investment Plan
Using the American Rescue Plan Act (ARPA)
to Meet our Highest Needs
Image Source: Balazs Gardi/The Guardian
D E C E M B E R 2 0 2 2
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Contents
Introduction
Purpose of the Strategic Investment Plan
Planning Process
ARPA Overview
Community Needs Assessment Summary
3 Strategic Investment Plan
Recommendations Framework
Overview
Our Jobs and Businesses
Our Health
Our Homes and Neighborhoods
Our Families
Our Culture and Community
12 Guidance to Prioritize ARPA Spending 40
Appendix: Community Needs Assessment 38
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Acknowledgements
In addition to deep engagement with Richmond community members, a diverse range of stakeholders and community representatives provided meaningful and strategic input on ARPA investment priorities.

In particular, this report would like to acknowledge:

Leadership from City Staff in the Department of Children and Youth:
• LaShonda White, Interim Library and Community
Services Director
• Patrick Seals, Senior Management Analyst
Interviews and Direction from City Council:
• Tom Butt, Mayor
• Claudia Jimenez
• Demnlus Johnson III
• Eduardo Martinez
• Gayle McLaughlin
• Melvin Willis
• Nathaniel Bates
Focus Groups Organized with Community Leaders from:
• Office of Neighborhood Safety
• Rubicon Programs/Safe Organized Spaces (SOS)
• Literacy for Every Adult Program (LEAP)
• Reentry Success
• Literacy for Every Adult Program (LEAP)
• East Bay Center
• Building Blocks for Kids
• Family Justice
• YMCA
• Latina Center
• Nurturing Independence Through Artist Development (NIAD) • Asian Pacific Environmental Network (APEN)
• Local Business Owners (coordinated with Lizeht Zepeda from Richmond BED) • ABLE Community Development
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Introduction
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The American Rescue Plan Act (ARPA) provides local governments, including Richmond, with funds to address COVID-19 and support economic recovery.

INTRODUCTION
Signed into law in March 2021, the American Rescue Plan Act (ARPA) provides Federal funding for states, counties, and cities to address both the public health crisis of COVID-19 and the pandemic’s impact on the economy. The funding focuses on supporting the development of strong and equitable communities.

ARPA funds must be obligated by December 31, 2024 and must be expended by December 31, 2026.

While not an explicit requirement of the program, ARPA is a one-time source of funding, which means that the most suitable uses of ARPA funds are investment in projects or programs that do not require ongoing funding.

ARPA legislation outlines four broad categories of eligible uses for ARPA funds:

REPLACING LOST PUBLIC SECTOR REVENUE
RESPONDING TO THE PUBLIC HEALTH AND ENVIRONMENTAL IMPACTS OF COVID-19

PROVIDING PREMIUM PAY FOR ESSENTIAL WORKERS

MAKING INVESTMENTS IN WATER, SEWER, AND BROADBAND INFRASTRUCTURE DRAFT
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INTRODUCTION
Responding to public health and economic impacts of COVID-19 | This can be a program or service related to identified impacts and designed to benefit impacted groups. Subcategories include:
• Public health, including COVID-19 mitigation and prevention, assistance with medical expenses, behavioral and mental health treatment, and preventing or responding to violence.
• Assistance to households, including food assistance, emergency housing, internet access or digital literacy, burials, home repair or weatherization, paid leave, workforce development services, financial services, affordable housing development, education, childcare, and direct cash assistance.
• Assistance to small businesses, including loans, grants, and technical assistance and other services. • Assistance to nonprofits, including loans, grants, or technical assistance and other services. • Aid to impacted industries, including financial support for payroll, and support for the maintenance and operations of existing facilities, technical assistance or other services, and COVID-19 mitigation or prevention. • Public sector capacity, including increased capacity for public safety, public health, and human services staff; rehiring of public sector staff or providing other staff retention; and effective service delivery including program evaluation, community outreach, investments in technology, and costs related to COVID-19 response. • Assistance to disproportionately impacted households, businesses, and communities, such as services to address health disparities, vouchers to help households relocate to neighborhoods with higher economic opportunity, investments in neighborhoods to promote improved health outcomes, remediation and removal of hazardous materials, improvements to vacant and abandoned properties, services or investments to address educational disparities, support for start-ups or expanding small businesses, and funding for rehabilitation or improvements to commercial properties.

ARPA funding primarily focuses on either addressing the immediate public health needs that emerged during the pandemic or mitigating the pandemic’s adverse economic impacts.

Eligible uses for ARPA funds:

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However, local governments can also use the funding to invest in specific infrastructure needs, like expanding broadband access, or replace lost revenue.

INTRODUCTION
Replacing lost public sector revenue | To assist cities, the federal government allowed cities to take a maximum allowance of up to $10 million, allowing recipients to select between a standard amount of revenue loss or calculate revenue loss using the Treasury’s formula, which compares actual revenue to a counterfactual trend. Funds can be used for any typical government services, including general administrative staff, services, and facilities, public safety services, road maintenance, infrastructure, and environmental remediation. The City of Richmond elected to calculate its revenue loss based on the Treasury formula and saw a 12.4% reduction in revenue, or $34.9K, which is otherwise greater than the City’s allocation.

Premium pay for eligible workers | Cities can provide premium pay up to $13 per hour for eligible workers performing essential work, including:
• Health care, public health, mental health, social services, family or childcare, emergency response providers, medical testing, pharmacy, and other health and social services
• Grocery stores, restaurants, food production, and delivery • Sanitation, maintenance, laundry, elections, and other critical services • Biomedical research
• Transportation and warehousing
• Hotel and commercial lodging facilities used for COVID-19 mitigation and containment •
Investments in Water, Sewer, and Broadband Infrastructure | Cities can make investments to improve specific categories of infrastructure, including broadband, drinking water systems, and wastewater and sewer systems.

Eligible uses for ARPA funds:

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In 2022, the City of Richmond engaged a team, led by HR&A Advisors, to develop recommendations for how the city should allocate ARPA funds.

INTRODUCTION

LISTENING TOUR

COMMUNITY NEEDS

ASSESSMENT
APRIL
JUNE
AUGUST

DECEMBER

DEVELOP

RECOMMENDATIONS
ARPA

INVESTMENT
PLAN
The following document outlines how the City can use of its American Rescue Plan Act (ARPA) funds to support COVID-19 recovery and address community needs.

This work began with a Community Needs Assessment, where HR&A and Contigo Partners (“the Consulting Team”) led a community engagement process to help the City of Richmond (“the City”) understand how COVID-19 has impacted Richmond businesses and residents. The Consulting Team used a range of activities to connect with representative and diverse populations, focusing on the engagement of diverse residents, businesses, community serving organizations and other key stakeholder groups to gather broad meaningful input to inform the City’s COVID-19 recovery efforts and investments. The engagement efforts focused on reaching community members that may not typically attend public meetings but were most impacted by the economic and health impacts of the pandemic.

This process identified community needs and priorities. Input from the Community Needs Assessment, paired with a sociodemographic and market analysis, informed how the City should allocate ARPA funds. Those recommendations begin on page 11.

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The Community Needs Assessment identified priorities around job opportunities, economic and housing stability, mental health services, and access to information.

OUR JOBS AND BUSINESSES
Economic insecurity is at the root of Richmond resident’s struggles, as without sufficient and sustainable income, people struggle to pay rent, afford medical care, and more. To make it through the pandemic, local small businesses needed a range of technical, economic, and social support that many felt unable to access, including difficulties accessing Paycheck Protection Program (PPP) loans.

OUR HEALTH
More people than ever sought mental health services as a result of the pandemic, including disconnected youth, overburdened parents, and isolated older adults. For some, this was their first time seeking mental health services, and they found a lack of culturally-competent and accessible mental health service providers.

OUR HOMES AND NEIGHBORHOODS
Rent burden has been high in Richmond since even before the pandemic and was made worse as the pandemic disrupted workers’ ability to earn income. Housing insecurity is more pressing than ever, and many community members prioritized tenant assistance and rental assistance programs as their highest need.

OUR FAMILIES
Communities that struggle with accessing information often cannot overcome the barriers necessary to understand public announcements and connect with services. Access to broadband internet, technology and computer literacy further compounded issues of service access, particularly for youth and older adults.

OUR CULTURE AND COMMUNITY
Richmond residents rely on their churches, neighborhoods, and community organizations to stay socially and economically connected, and need events to return safely and quickly. To do so, the City can increase support for nonprofit organizations already leading this work locally.

INTRODUCTION
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Richmond was awarded $27.7M in ARPA funds and has already set aside approximately $10.5M, leaving $17.2M in uncommitted funds.

INTRODUCTION
Use of Funds
ARPA is a one-time source of funding. Therefore, the most suitable use of ARPA funds is investment in projects or programs that do not require ongoing funding. Examples of suitable projects include:
• Temporary programs that address short-term impacts of the COVID-19 pandemic
• One-time capital investments in property or infrastructure • Spending to conduct studies or pilot programs
• Seed funding for loan funds
• Other projects that do not require hiring new permanent staff or ongoing commitment of funds
ARPA funds must be obligated by December 31, 2024 and
expended by December 31, 2026. Richmond should consider both:
• Short-term recovery, including providing immediate relief to disproportionately impacted individuals; AND
• Long-term stability, including any long-term community needs Richmond can address now based on funding
availability
$27.7M
Richmond’s local ARPA funding award
$17.2M
To be allocated based on identified community needs
$10.5M
Already committed funds

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Richmond’s ARPA Strategic Investment Plan makes recommendations for how the City should allocate its funds to address these needs in alignment with ARPA requirements.

INTRODUCTION

REPLACING LOST PUBLIC SECTOR REVENUE

RESPONDING TO THE PUBLIC HEALTH AND
ECONOOMIC IMPACTS OF COVID-19

PROVIDING PREMIUM PAY FOR ESSENTIAL

WORKERS

MAKING INVESTMENTS IN WATER, SEWER,

AND BROADBAND INFRASTRUCTURE

SUITABLE USES OF

ARPA FUNDS

COMMUNITY NEEDS

AND PRIORITIES
Identify
alignment

OUR CULTURE AND COMMUNITY

OUR FAMILIES

OUR HOMES AND NEIGHBORHOODS

OUR HEALTH

OUR JOBS AND BUSINESSES

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ARPA Investment
Recommendations
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Image Source: Evelio Contreras/CNN
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This section provides high-level guidance for how
the City of Richmond should deploy its ARPA
funding. This includes a potential allocation of ARPA funds among areas of need, and an overview of all the strategies discussed and a guide for reading each potential project.

The subsequent recommendations are organized by the five priorities from the recommendations that emerged from the Community Needs Assessment and include:
• Insights from the Community Needs Assessment;
• Case studies highlighting how other municipalities have already allocated their ARPA funds;
• Potential projects that both align with ARPA requirements and community needs, and
• A brief summary of how the City has already addressed COVID-19 recovery needs, as well as opportunities to
leverage other funding sources.

Finally, the section provides context about how the City can advance implementation and prioritize ARPA expenditures. 13

ARPA INVESTMENT RECOMMENDATIONS
The City should use its ARPA
funds efficiently and effectively
to address community needs.
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The City should allocate available ARPA funds across the five areas of need based on the level of need, likely cost of potential projects, and input from the community.

ARPA INVESTMENT RECOMMENDATIONS

OUR JOBS AND

BUSINESSES
30%

OUR HEALTH
15%

OUR HOMES AND

NEIGHBORHOODS
30%

OUR FAMILIES
10%

OUR CULTURE AND

COMMUNITY
15%
Below is a potential allocation of ARPA funds based on the findings of the community needs assessment and the relative costs of potential projects.

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The Strategic Investment Plan outlines specific actions the City can take to address community needs by advancing the strategies below.

ARPA INVESTMENT RECOMMENDATIONS

OUR JOBS AND

BUSINESSES
A. Provide direct support to businesses
B. Increase accessibility of business services
C. Support broader economic development efforts (incl. infrastructure, marketing, and access to capital)

OUR HEALTH
D. Reduce community health disparities
E. Expand mental health services

STRATEGIES TO ADDRESS COMMUNITY NEEDS

OUR HOMES AND

NEIGHBORHOODS
F. Address immediate or emergency housing needs
G. Plan for bigger citywide efforts to increase housing affordability and strengthen neighborhoods H. Leverage available state and federal funding

OUR FAMILIES
I. Partner with West Contra Costa Unified School District (WCCUSD) to support children and families J. Expand the availability of childcare services

OUR CULTURE AND

COMMUNITY
K. Expand cultural and recreational programming and public art L. Make improvements to public facilities and subsidize available programming M. Expand access to broadband
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The summary of potential projects includes context about how each project aligns with community needs and ARPA requirements, as well as high-level implementation needs.

ARPA INVESTMENT RECOMMENDATIONS
How to read overview of potential projects for Richmond’s ARPA funds Alignment with
Community Needs
Needs Addressed & Beneficiaries
Alignment with ARPA
Requirements
Eligible Uses, Timing, & Suitability
Implementation
Needs
Responsibility &
Approximate Cost
1 2 3 4
1 A brief description of the recommended project or activity, as well as which strategy it aligns with. These projects came from sources including:
• Ongoing work the City is already doing;
• Direct comments and feedback during the Community Needs Assessment; and • Best practices and examples from other communities
2 A summary of how this project addresses critical community recovery needs, and additional context from the Community Needs Assessment.

A
A An overview of how this recommended project aligns with the strategies to address community needs (found on page 15).

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The summary of potential projects includes context about how each project aligns with community needs and ARPA requirements, as well as high-level implementation needs.

ARPA INVESTMENT RECOMMENDATIONS
4 Information about whether the City, a nonprofit partner, a private consultant, or another entity would lead implementation. Where available, an estimate of the scale of funding and potential impacts. Cost estimates may include a 10% allowance for administration or management of the proposed program.
3 • A determination of the eligible uses of ARPA funds this project aligns with • Relevant context about project readiness and the feasibility of deploying funds by the December 31, 2026 deadline
• Context about whether the project is suitable for a one-time source of funds, or whether it requires an ongoing commitment of funds.

An overview of how well the project aligns with the requirements and best uses for ARPA funds, including:

How to read overview of potential projects for Richmond’s ARPA funds Alignment with
Community Needs
Needs Addressed & Beneficiaries
Alignment with ARPA
Requirements
Eligible Uses, Timing, & Suitability
Implementation
Needs
Responsibility &
Approximate Cost
1 2 3 4A
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Cities are using ARPA funds to help bolster this segment of the economy in several ways. A popular strategy includes training and technical assistance programs.

Anchorage, AK has used funds to help a nonprofit hire full-time outreach and technical assistance staff. In Torrington, CT, the city has allocated funds to offer special classes focused on a range of topics, including accounting, finance, and marketing. Other cities have taken an explicitly racial equity approach, as is the case in Buffalo, NY where the city awarded a $3.5 million grant to a minority-focused small business resource center.

Funds for the project will help the center provide technical assistance and develop a start-up incubator.

One of the other ways ARPA funds have helped small businesses is through façade and aesthetic improvements. For example, in Madison, WI, the city decided to dedicate $500,000 in funds for retail improvement grants that businesses can use to physically rehabilitee commercial spaces. Another strategy is “buy local” campaigns. In Oswego, NY, the city used a “Buy One, Get One” model where residents could pay $25 to receive a $50 gift card that they could redeem at local restaurants and retailers. Participating locations were not charged a fee, which meant the city’s investment helped local businesses increase foot traffic and keep money circulating in the local economy.

CASE STUDIES
Small businesses represent a vital part of a city’s local and regional economic development, employing
nearly half of the nation’s workforce.

Small business owners in Richmond shared that they
loved having their businesses in the City of Richmond but encountered many challenges doing business here. There
was a shared sentiment across participants that the City was not sufficiently supportive of small businesses.

Richmond’s strong ecosystem of nonprofit
organizations help fill this gap. Nonprofits were able to provide services like business owner outreach, sharing
materials and information, and shop local campaigns,
including CoBiz, Richmond Main Street Initiative and the Renaissance Center. Many perceived these organizations, not the City, as the most effective and supportive
institutions during the pandemic.

Business owners shared a strong call for more
accountability and access to information from the
City. Businesses during the pandemic noted their need
for a range of technical assistance to access PPP loans, formalize their structure and bookkeeping, and transition businesses to online business platforms.

OUR JOBS AND BUSINESSES
One of the ways other cities are supporting the local economy is either through expanding small business support or through workforce development initiatives.

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The City’s Short-Term Local Business Recovery Action Plan (STLBRAP) included a deeper analysis of the near-term impacts of COVID-19 on Richmond’s economy and made recommendations to support business recovery. Access to capital and regulatory challenges were among the major challenges identified in the STLBRAP , particularly because many businesses were hesitant or unable to take on new debt in an uncertain business environment. In response to these findings the STLBRAP recommended that small business assistance should focus on grants and technical assistance to access needed resources, as well as other changes to increase the accessibility of business services.

The City has already committed $1 million of its ARPA allocation to the Richmond Rapid Response Fund (R2F) to provide direct financial assistance to residents, businesses, and community-based organizations to meet a range of recovery needs.

PROGRAM HIGHLIGHT
Small business owners shared that during the pandemic, they needed a range of technical assistance to formalize their structure and bookkeeping and to transition businesses into online business platforms. Heading into the pandemic, many small businesses and entrepreneurs did not have their business formalized and did not have their financial statements organized in Quickbooks, which made it difficult to navigate PPP loans.

LISTENING TOUR FINDING
Small Business Recovery Resources
Businesses in Richmond received nearly $240M in Paycheck Protection Program (PPP) loans between April 2020 and May 2021. Of the roughly 3,000 loans distributed in Richmond, 75% were for amounts smaller than $30K. However, Retail, Health Care, Arts and Recreation, and other hard-hit industries received relatively low volume of PPP loans as compared to their pandemic employment losses. A San Francisco Chronicle analysis of census tracts throughout the Bay Area found that businesses located in lower income and communities of color were less likely to receive PPP loans than more affluent areas. During the listening tour, Black- and Brown-led businesses shared that having relationships with banks was a top factor in securing PPP loans.

Employment Opportunities
Though the Citywide unemployment rate has returned to pre- pandemic levels, populations with barriers to employment struggle to find new work – for example, communities with limited English proficiency have struggled to find
employment, while individuals with a criminal record have a harder time finding work opportunities that welcome them. For other communities, social distancing regulations cut them off from their networks and they couldn’t find new work.

To make it through the pandemic, local small businesses in Richmond needed a range of technical, economic, and social support that many felt unable to access.

OUR JOBS AND BUSINESSES | RICHMOND’S NEED
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Strategies
A. Provide direct support to businesses
B. Increase accessibility of business services
C. Support broader economic development efforts (incl. infrastructure, marketing, and access to capital)
Alignment with
Community Needs
Needs Addressed & Beneficiaries
Alignment with ARPA
Requirements
Eligible Uses, Timing, & Suitability
Implementation Needs
Responsibility &
Approximate Cost
Dedicate additional funding to provide
grants to small business owners to
support business recovery or expansion
During the pandemic, small business owners
needed a range of technical assistance to adapt to
new business practices, and many were unable to
access recovery loans due to a lack of formalized or
digital bookkeeping and other barriers. The Short-
Term Local Business Recovery Action Plan also
found that many small businesses had limited
ability or willingness to take on additional debt. The
City has already committed $1.0M of ARPA funding
to provide emergency assistance to residents and
businesses, but additional direct assistance to
businesses may be needed.

H&E, PS
Work with implementation
partners to confirm feasibility of
deploying funds on time
No ongoing commitment
Nonprofit business service
providers or fund administrator
such as a Community
Development Financial
Institution (CDFI)
$0.5M - $1.0M (20-35 grants with
average value of $25K)
Dedicate funding to provide façade
improvement grants for businesses in
commercial districts
Small business owners face ongoing recovery
challenges and may have limited funds available to
make needed investments in storefronts or critical
repairs. Retail businesses have seen challenges
from declining foot traffic.

H&E*, PS
Provide pilot funding to ensure
deployment on time
Non-ARPA funds could be
allocated based on pilot success
Nonprofit fund administrator
such as a CDFI, or City
$150K - $250K (10-15 grants with
average value of $15K)
Eligible uses for ARPA funds:
• H&E – Responding to the public health and economic impacts of COVID-19 • PS – Replacing lost public sector revenue
• PP – Premium Pay for Eligible Workers
• WSB – Investments in Water, Sewer, and Broadband Infrastructure * indicates eligibility in Qualified Census Tracts or disproportionately impacted communities) A
As the city looks ahead towards allocation and implementation, there are existing small business support programs and relationships with nonprofits that Richmond can leverage.

A
OUR JOBS AND BUSINESSES | POTENTIAL INVESTMENTS
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Alignment with
Community Needs
Needs Addressed & Beneficiaries
Alignment with ARPA
Requirements
Eligible Uses, Timing, & Suitability
Implementation Needs
Responsibility &
Approximate Cost
Provide funding to nonprofit business
service providers to hire and train
community members to provide
translation, or to expand outreach
and technical assistance to business
owners in multiple languages to improve
access to recovery funding and services
Many small business owners had difficulty accessing
recovery funding due to digital literacy, capacity, or
language barriers. Nonprofits are a primary resource
for local businesses, but additional support is needed.

H&E, PS
Work with partners to confirm
feasibility of deploying funds on
time
Funding for temporary additional
capacity, no ongoing commitment
Nonprofit business service
providers, RichmondWORKS (tent.)
$150K - $250K (15-30 part-time
temp workers at $15/hr)
Provide funding to launch a Buy-Local
Campaign for Richmond businesses,
including developing branded marketing
materials, planning neighborhood
business events, and consolidating
shared resources.

Small businesses in Richmond faced challenges due to
COVID-19, including reduced business and the
challenges of adapting to accommodate remote work
and social distancing. The Short-Term Business
Recovery Action Plan identified a Buy-Local Campaign
as a way for the City and its partners to promote and
celebrate locally-owned businesses.

H&E, PS
Program design completed, so
funds can be deployed quickly
No ongoing commitment
City & Economic Development
Working Group
$16,500 - $45,000
Make streetscape improvements in
commercial corridors
Many businesses, community members, and
commercial property owners have cited built
environment challenges including buildings in need of
repair and illegal dumping in commercial areas.

Richmond’s Business Investment and Attraction
Strategy highlights the need for built environment
improvements to support Richmond’s businesses.

H&E*, PS
City to confirm timing
No ongoing commitment
City
TBD based on City capital needs
B
B
C
The City can use its ARPA funds to provide direct support to businesses and to increase the uptake and accessibility of business services.

OUR JOBS AND BUSINESSES | POTENTIAL INVESTMENTS
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Alignment with
Community Needs
Needs Addressed & Beneficiaries
Alignment with ARPA
Requirements
Eligible Uses, Timing, & Suitability
Implementation Needs
Responsibility &
Approximate Cost
Study the feasibility of establishing a
public bank to increase access to
capital for residents and businesses
Some business owners had difficulty accessing
recovery loans through commercial lenders. Residents
may also have barriers to accessing capital. A public
bank could help more businesses and residents access
financing for businesses, education, and
homeownership.

PS
Funds can be deployed on time
No ongoing commitment
City, consultant
$100K - $200K
Expand the provision of English as a
Second Language classes or subsidize
class fees for job-seeking residents
Job-seeking residents with language barriers have
continued to face challenges returning to work in the
wake of COVID-19.

H&E, PS
Subsidizing fees for existing classes
may be the most efficient way to
deploy funds by the deadline
No ongoing commitment
RichmondWORKS
TBD, potentially $50K-$100K
C
C
The City can use its ARPA funds to provide direct support to businesses and to increase the uptake and accessibility of business services.

OUR JOBS AND BUSINESSES | POTENTIAL INVESTMENTS
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Business Recovery Planning
▪ The City developed a Short-Term Local
Business Recovery Action Plan and
Business Investment and Attraction
Strategy.

ARPA Expenditures
▪ The City dedicated $1M to the
Richmond Rapid Response Fund which
provides emergency assistance to
businesses and residents. Economic
recovery & security is one of the fund’s
priority areas.
▪ The City has used ARPA funds to
undertake a Green-Blue New Deal
Workforce Development Plan.

C U R R E N T C I T Y

E F F O R T S

I M P L E M E N TAT I O N

A P P R O A C H

O T H E R F U N D I N G

S O U R C E S
Nonprofit Business Service
Providers
▪ Richmond has many nonprofits that
provide outreach and services directly to
businesses. The City can award funds to
these partners to provide enhanced
services, and use nonprofit networks to
connect businesses with resources.

Other
▪ Some funds may be best distributed
through financial institutions that can
handle large financial transactions.
▪ RichmondWORKS, the city’s workforce
development agency, provides services
to businesses and job seekers.

County Funding
▪ The County has funding such as
Community Development Block Grant
funds that can be leveraged to support
infrastructure investments and other
economic recovery efforts.
▪ In addition, there are potentially other
State resources that the city can
leverage to support business
development.
▪ The City’s Small Business Recovery
Action Plan and Business Improvement
and Attraction Strategy identify funding
sources and implementation needs to
support Richmond business recovery.

As the City looks ahead towards allocation and implementation, there are existing small business support programs and relationships with nonprofits that Richmond can leverage.

OUR JOBS AND BUSINESSES

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According to community providers, the demand for
mental health services has risen exponentially during
the pandemic.

Isolation, stress, and other issues have contributed to a growing need for mental health services. Many parents
spoke about their children’s mental health challenges
and noted that they needed to advocate for their children to receive adequate care. Populations with cultural or
other barriers, including the disabled, seniors, limited English speaking residents, and the immigrant and Asian Pacific Islander refugee community, reported an increased sense of isolation due to an inability to connect to
community or access services. In response to these
challenges, some residents accessed mental health
services for the first time during the pandemic. However, some reported a lack of culturally-competent and
accessible mental health service providers. For
instance, those seeking care for the first time might find it challenging to connect with providers that do not
understand their unique beliefs and behaviors in their
treatment.

According to a 2021 report on the state of mental health in the United State, the number of people living with a mental health condition increased over the duration of the pandemic to nearly one in four individuals, or roughly 47.1 million Americans. As cities and the private sector begin to explore this growing health care need, ARPA offers a way for municipalities to address mental health by either expanding existing services or piloting new programs.

In San Francisco, the city started a Street Crisis Response Team in partnership with the San Francisco Department of Public Health, the Fire Department, and Emergency Management. The program provides an opportunity for non-law enforcement response to behavioral health crises, including delivering de-escalation services and linking people to the appropriate treatment options they may need. ARPA funding helped the City expand the program and hire more staff. Similar crises intervention programs in cities like Dallas, Denver, and Portland have open budget proposals or are already used ARPA to expand their service.

ARPA funding is also used to address the growing youth and young adult mental health crisis. In St. Louis, the city has committed $1 million through the Department of Health to help create safe spaces, drop-in centers, and community projects for youth. Kings County, which includes Seattle, have allocated $2 million in ARPA funding to support an initiative to “build, improve and enhance culturally appropriate behavioral health services” for communities disproportionately impacted by COVID.

CASE STUDIES
More people sought mental health services as a result of the pandemic, including disconnected youth, overburdened parents, and isolated older adults.

OUR HEALTH
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Strategies
D. Reduce community health disparities
E. Expand mental health services
Alignment with
Community Needs
Needs Addressed & Beneficiaries
Alignment with ARPA
Requirements
Eligible Uses, Timing, & Suitability
Implementation Needs
Responsibility &
Approximate Cost
Create a mobile service center to
provide public health outreach and
referrals, including for mental health
services.

Community health providers indicate an increase
demand for mental health services during the
pandemic. Offering mobile services can help
address this urgent need, particularly for vulnerable
populations, like the elderly, who may face mobility
or digital accessibility challenges.

H&E, PS
Make deployment deadline a
requirement of the NOFA
Startup would be a one-time cost.

Additional funding might be
needed to subsidize ongoing
operations.

Implementation by nonprofit
service provider identified
through a NOFA
TBD based on NOFA responses
Create programs to provide residents
and families with community health
tools including nutrition education,
fresh food access, and programming to
help parents of children in crisis
Isolation, stress, and other issues have contributed
to a growing need for mental health services.

Populations with cultural or other barriers,
including the disabled, seniors, limited English
speaking residents, and the immigrant and Asian
Pacific Islander refugee community, reported an
increased sense of isolation due to an inability to
connect to community or access services.

H&E, PS
Make deployment deadline a
requirement of the NOFA
Startup would be a one-time cost.

Additional funding might be
needed to subsidize ongoing
operations.

Implementation by nonprofit
service provider identified
through a NOFA
TBD based on NOFA responses
Eligible uses for ARPA funds:
• H&E – Responding to the public health and economic impacts of COVID-19 • PS – Replacing lost public sector revenue
• PP – Premium Pay for Eligible Workers
• WSB – Investments in Water, Sewer, and Broadband Infrastructure * indicates eligibility in Qualified Census Tracts or disproportionately impacted communities) D
D
The City should use its ARPA funds to reduce community health disparities and expand mental health services.

OUR HEALTH | POTENTIAL INVESTMENTS
DRAFT
26 | HR&A AdvisorsRichmond ARPA Investment Strategy
Alignment with
Community Needs
Needs Addressed & Beneficiaries
Alignment with ARPA
Requirements
Eligible Uses, Timing, & Suitability
Implementation Needs
Responsibility &
Approximate Cost
Provide financial support to ensure
access to healthcare by providing
families with help covering their medical
costs and related transportation costs
Rising costs due to inflation, and job losses
means that households have less money to
spend on nonessentials. Services like
healthcare are often deprioritized over
groceries and rent.

H&E, PS
Make deployment deadline a
requirement of the NOFA
Startup would be a one-time cost.

Additional funding might be needed
to subsidize ongoing operations.

Implementation by nonprofit service
provider identified through a NOFA
TBD based on NOFA responses
Develop a program for community-
provided mental health services by
training residents to provide counseling
within their communities
Residents noted difficulty accessing
culturally competent and representative
mental health service providers, which
contributed to feelings of isolation and
mental health crisis.

H&E, PS
Make deployment deadline a
requirement of the NOFA
Startup would be a one-time cost.

Additional funding might be needed
to subsidize ongoing operations.

Implementation by nonprofit service
provider. RichmondWORKS may be able
to coordinate training
TBD based on NOFA responses
Expand the provision of mental
health services in schools
Many parents spoke about their children’s
mental health challenges, and noted that
they needed to advocate for their children
to receive adequate care.

H&E, PS
Make deployment deadline a
requirement of the NOFA
Temporary cost for expanded
services
Programming should be deployed in
partnership with WCCUSD; work with
WCCUSD to determine whether a
nonprofit partner is needed.

TBD based on potential scale of added
services.

D
E
E
D
The City should use its ARPA funds to reduce community health disparities and expand mental health services.

OUR HEALTH | POTENTIAL INVESTMENTS
DRAFT
27 | HR&A AdvisorsRichmond ARPA Investment Strategy
Early Pandemic Response
▪ The City took action early in the
pandemic to address the health and
safety needs of the community,
including launching a website and
hotline with health information,
community resources, and information
about County-provided services.

ARPA Expenditures
▪ The City dedicated $1M to the
Richmond Rapid Response Fund which
provides emergency assistance to
businesses and residents. Two priority
areas for this fund are food & essential
supplies and health & healing.

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S O U R C E S
Nonprofit Service Providers
▪ Nonprofit organizations will be crucial
partners in the temporary expansion of
health care services and outreach to
improve community health outcomes.
▪ The City should issue a Notice of
Funding Availability (NOFA) for regional
health care providers to deliver
programming that meets community
needs guided by the proposed projects.

Regional Partnerships
▪ The City should work with WCCUSD and
Contra Costa County to identify ways it
can deploy funding to supplement
available programs.

County Funds
▪ Contra Costa County has approved the
use of over $112M in ARPA funds for its
health department to support COVID-19
response, including addressing
disparities in public health outcomes
through community engagement and
targeted outreach.

State
▪ Through State Proposition 63, California
has a $11.6 billion available this
upcoming fiscal year to fund mental
health programs throughout the state.

Health services are frequently provided at the County level and by nonprofits, but the City can put forward funding for organizations to provide needed additional services.

OUR HEALTH
DRAFT
28 | HR&A AdvisorsRichmond ARPA Investment Strategy
Housing insecurity is more pressing than ever; as a result of COVID some Richmond residents faced loss of housing
despite eviction protections, and others experiencing
homelessness became disconnected from services.

Richmond residents may be particularly vulnerable to
eviction due to a perceived lack of legal protections, despite the City temporary ordinance and State tenant relief act.

Contra Costa County has one of the highest rates of
pandemic evictions in the Bay Area, second only to Solano County. Eviction rates are 2 to 3 times higher for Black households in the County. During the pandemic, the
homeless population in Contra Costa County grew by 35%.

According to the 2021 Continuum of Care Annual Report, of those who reported losing their housing, 30% of households were in West County, where Richmond has the largest
population.

California has dedicated ARPA funds and other funding to create and expand programs to increase the supply of housing and address housing security and affordability statewide. These include:
• Multifamily Housing Program: Provides low-interest deferred-payment loans for new construction, rehabilitation, and preservation of permanent and transitional housing that serves lower-income households
• California Housing Accelerator Fund: Provides funding for shovel-ready development projects that have received awards of funding from the department of Housing and Community Development but have funding gaps • HOME-ARP Program: Funding for the Department of Housing and Community Development to assist individuals or households experiencing homelessness or at risk of homelessness by providing rental assistance, supportive services, shelters, and other support
• State Low-Income Housing Tax Credit Program:Provides tax credits to support the development of rental housing for low-income households • Adaptive Reuse Program and Homekey Program: Provides funding to convert commercial buildings, hotels, and motels into affordable housing • Infill Infrastructure Grant Program: Provides funding to accelerate the development of infill projects in brownfields and downtowns
• Preservation Fund: Funding to preserve existing affordable housing • Legal Aid: Provides funding for legal services to prevent evictions

AVAILABLE STATE FUNDING
Focus group participants expressed the need to make
rental assistance programs more accessible. One
participant shared that after applying for rental relief, “we had to take out a loan because it took 8 months [to receive funding from the State]. We couldn’t access
services even if they existed.”

LISTENING TOUR FINDING
The State has dedicated significant recovery resources to increasing housing affordability throughout California.

OUR HOMES AND NEIGHBORHOODS
DRAFT
29 | HR&A AdvisorsRichmond ARPA Investment Strategy
Strategies
F. Address immediate or emergency housing needs
G. Plan for bigger citywide efforts to increase housing affordability and strengthen neighborhoods
H. Leverage available state and federal funding
Eligible uses for ARPA funds:
• H&E – Responding to the public health and economic impacts of COVID-19 • PS – Replacing lost public sector revenue
• PP – Premium Pay for Eligible Workers
• WSB – Investments in Water, Sewer, and Broadband Infrastructure * indicates eligibility in Qualified Census Tracts or disproportionately impacted communities) F
G
H
Alignment with
Community Needs
Needs Addressed & Beneficiaries
Alignment with ARPA
Requirements
Eligible Uses, Timing, & Suitability
Implementation Needs
Responsibility &
Approximate Cost
Provide funding for emergency rental
assistance to prevent eviction and
homelessness
Rent burden had been high in Richmond in
advance of the pandemic and was made worse as
the pandemic disrupted workers’ ability to earn
income. Focus group participants indicated that
this is an important, unaddressed challenge. As
one participant explained, “My husband got sick
and he also had high fever. No one helped us with
high rent.”

H&E, PS
Funding can be deployed promptly
to meet immediate need,
dependent on capacity of fund
administrator
No ongoing commitment
City or nonprofit fund
administrator
TBD based on capacity of fund
administrator. $1.0-$1.5 million
could provide 12 months of
assistance to approx. 100
households.

Provide funding to hire and train
community members to provide
translation, or to expand outreach and
technical assistance to residents in
multiple languages to help them access
available housing assistance
Richmond is a diverse community – over half of
residents speak a language other than English and
a third are foreign-born. However, that cultural
and linguistic diversity is not always reflected in
the services that the city currently offers.

Additional funding can help address this gap.

H&E, PS
Work with partners to confirm
feasibility of deploying funds on
time
Temporary additional capacity, no
ongoing commitment
Nonprofit service provider,
RichmondWORKS (tentatively)
$150K- $$250K (15-30 part-time
temp workers at $15/hr)
The City can use ARPA funds to address immediate housing needs while planning for bigger citywide efforts.

OUR HOMES AND NEIGHBORHOODS | POTENTIAL INVESTMENTS
DRAFT
30 | HR&A AdvisorsRichmond ARPA Investment Strategy
Alignment with
Community Needs
Needs Addressed & Beneficiaries
Alignment with ARPA
Requirements
Eligible Uses, Timing, & Suitability
Implementation Needs
Responsibility &
Approximate Cost
Develop a citywide Affordable Housing
Plan
54% of Richmond renters are housing cost
burdened, which means they spend over one-third
of their income on rent, compared to 50% in
Contra Costa County and 44% in the Metro Area.

H&E, PS
Funds can be deployed on time
No ongoing commitment
City, consultant
$150K - $200K
Make streetscape improvements in
neighborhoods, including trash cleanup, to
enhance neighborhood safety and quality
of life; Invest in green streets projects
In both the survey and listening tour, participants
indicated that the city should invest more in its
public spaces by making sidewalk and road
repairs, as well as other quality of life
improvements.

H&E*, PS
City to confirm timing
No ongoing commitment
City
TBD based on City capital needs
Hire temporary grant writers to pursue
additional funding for neighborhood and
affordable housing improvements
City staff have limited capacity to take on
additional work to secure funding in the form of
grants from the state, philanthropic partners, and
other funders that could address the City’s
housing and neighborhood development needs.

H&E, PS
Funds can be deployed on time
No ongoing commitment
City
$50K - $100K (2-4 part time
grantwriters)
G
F
G
H
The City can use ARPA funds to address immediate housing needs while planning for bigger citywide efforts.

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31 | HR&A AdvisorsRichmond ARPA Investment Strategy
ARPA Expenditures
▪ The City dedicated $1M to the
Richmond Rapid Response Fund which
provides emergency assistance to
businesses and residents. Housing &
homelessness is one of the fund’s
priority areas.

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S O U R C E S
Use ARPA efficiently and
leverage other funding
▪ The City will not be able to create many
units of affordable housing directly
using ARPA alone. It should focus
funding on helping address emergency
needs while identifying a longer-term
strategy to support affordability.
▪ The City should help its residents,
developers, and departments to access
available funds from state, county, and
federal sources to address affordable
housing.

State Funds
▪ The State of California has dedicated
significant funds, including its COVID-19
recovery funds, to addressing
affordable housing challenges
statewide.

County Funds
▪ Contra Costa County has dedicated over
$10M in HOME-ARP funds to the
development of affordable rental
housing. The City can work with the
County and developers to identify
suitable development sites in
Richmond.

Affordable housing is costly to produce. The City can use its ARPA funds to meet near-term needs, plan for bigger investments, and leverage other funding sources.

OUR HOMES AND NEIGHBORHOODS
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32 | HR&A AdvisorsRichmond ARPA Investment Strategy
While California offers subsidies for childcare, support is capped by income.

A family of three can earn no more than $78K to be eligible for childcare assistance. Due to the rising costs of living, families who might make slightly more than the
household maximum are left with limited childcare
options, often waiting months, or even years to find a
slot. The state is providing some relief in the form of tax refunds; California’s 2022-23 budget includes $9.5 billion in tax refunds to directly benefit families. Households making as much as $75,000 for individuals or $150,000 for joint filers will receive $350 per taxpayer, plus an additional $350 if they have at least one dependent - a single parent would receive $700 and two-parent families would receive $1,050.

There are additional barriers that families face once their children are in school. While remote learning was difficult for everyone, its impact was particularly harmful for low income and people of color. These demographics
experienced more dramatic educational declines in reading and math proficiency than their whiter, more affluent peers.

During listening sessions, people expressed a need for
programming that addressed either educational loss or
more focused interventions for older youth.

One major factor driving rising costs of childcare is a lack of qualified providers and caregivers. Local governments and nonprofits are trying to address this. In San Francisco, The Good Rural, a local nonprofit is using city and private funding to develop a pipeline of licensed childcare providers. The program provides 1-on-1 support and group training, as well as support navigating the licensing process, and how to build a successful home- based business. This program is still in its pilot phase but has directly working with over 10 informal childcare providers to help them gain an official license.

Cities have used ARPA funding to address both learning loss and provide general youth programming in a few ways. In Akron, OH, the city has allocated funds for a Youth Violence Prevention Community Grant Program, where children in grades K-3 can participate in an afterschool program. As other cities have even developed youth-specific plans for how they will allocate ARPA funding, like in New Haven, CT, where the city dedicate its first round of funding ($6.3 million) to support a “summer reset” initiative, which included expanding summer learning, youth safety initiatives, and an arts and cultural events.

CASE STUDIES
In a conversation with Building Blocks for Kids, Latina Center, and Family Justice, families voiced the need for education and program support for older children 6- 19 years of age. While speaking with the Reentry Success Center, participants stressed interest in support for people coming out of high school, who “need more direction or help, instead of being dumped on the street. Young people could use help, education, and housing assistance.”

LISTENING TOUR FINDING
There is a growing need for affordable and accessible childcare as well as after school activities for youth, especially ones that address learning loss from the pandemic.

OUR FAMILIES
DRAFT
33 | HR&A AdvisorsRichmond ARPA Investment Strategy
Alignment with
Community Needs
Needs Addressed & Beneficiaries
Alignment with ARPA
Requirements
Eligible Uses, Timing, & Suitability
Implementation Needs
Responsibility &
Approximate Cost
Provide services for families and youth
with the goal of increasing third grade
literacy rates
Two years of navigating remote learning and in-
person classes have contributed to declines in
reading comprehension in younger grades. Third
grade is an important year for students – studies
show that if children are not proficient readers by
the time they enter fourth grade, it will become
harder for them to catch up.

H&E, PS
Work with partners to confirm
timing
Funds can support startup and
design but additional funding may
be needed for ongoing operations
WCCUSD, Nonprofit service
providers, City and County
TBD
Provide expanded programming for
youth to meet current gaps in City and
School District programming, such as for
middle school-aged children
Many youth, parents, and formerly incarcerated
residents spoke to the need for youth
programming. West Contra Costa Unified School
District noted that there is a gap in programming
for middle schoolers in particular, and that better
family engagement is needed at all levels. One
reason why this happens is because parents are
often less involved due to work commitments; a
way to address this be paying parents a small
stipend for engaging with their children.

H&E, PS
Work with partners to confirm
timing
Funds can support temporary
operations but additional funding
may be needed for ongoing
operations
WCCUSD, Nonprofit service
providers, City (e.g. recreation
department)
TBD
Strategies
I. Partner with West Contra Costa Unified School District (WCCUSD) to support children and families
J. Expand the availability of childcare services
Eligible uses for ARPA funds:
• H&E – Responding to the public health and economic impacts of COVID-19 • PS – Replacing lost public sector revenue
• PP – Premium Pay for Eligible Workers
• WSB – Investments in Water, Sewer, and Broadband Infrastructure * indicates eligibility in Qualified Census Tracts or disproportionately impacted communities) I
I
J
The City can partner with West Contra Costa Unified School District (WCCUSD) to increase support for children and families and to support the expansion of childcare services.

OUR FAMILIES | POTENTIAL INVESTMENTS
DRAFT
34 | HR&A AdvisorsRichmond ARPA Investment Strategy
Alignment with
Community Needs
Needs Addressed & Beneficiaries
Alignment with ARPA
Requirements
Eligible Uses, Timing, & Suitability
Implementation Needs
Responsibility &
Approximate Cost
Provide additional support services for
students experiencing homelessness at
the City and School District
Schools are often the only way children and youth
receive social supports, yet administrators and
staff are often unequipped or underfunded to
help address those challenges. Attendance data
showed that about 3,400 students left West
Contra Costa Unified during the pandemic. One
resident shared that “The youth got forgotten.

Doing school from home was really hard. The
school district lost a lot of students because
teachers couldn’t connect with them. A lot of kids
got lost, a lot of education got lost.” Another noted
that some students “had to stop school in order to
work, because if they didn’t work, they couldn’t
make ends meet. We saw 16-year-olds entering
the workforce full-time.”

H&E, PS
Work with partners to confirm
timing
Funds can support temporary
operations but additional funding
may be needed for ongoing
operations
WCCUSD, Nonprofit service
providers
TBD
Provide funding and technical
assistance to help informal childcare
providers establish formal, licensed
childcare facilities or preschools, and to
increase their capacity
Childcare, not housing, has become the highest
expense for families in California, driven in large
part because there is a lack of certified childcare
providers. Lack of affordable childcare may be a
challenge preventing some residents from
returning to work.

H&E, PS
Work with partners to confirm
timing
Funds can support temporary
operations but additional funding
may be needed for ongoing
operations
Nonprofit service providers, CDFIs,
foundations and other
philanthropic partners
I
J
The City can partner with West Contra Costa Unified School District (WCCUSD) to increase support for children and families and to support the expansion of childcare services.

OUR FAMILIES | POTENTIAL INVESTMENTS
DRAFT
35 | HR&A AdvisorsRichmond ARPA Investment Strategy
ARPA Expenditures
▪ The City dedicated $1M to the
Richmond Rapid Response Fund which
provides emergency assistance to
businesses and residents. A portion of
that fund is earmarked for education &
learning.

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S O U R C E S
Partnership with WCCUSD
▪ The West Contra Costa Unified School
District (WCCUSD) will be a critical
partner. The City can work with
WCCUSD to identify and bridge gaps in
programming and support for students
and their families.

State & Federal Funding
▪ The West Contra Costa Unified School
District can potentially contribute funds
to support expanded programming
through the Coronavirus Response and
Relief Supplemental Appropriations.

The district received $29 million to help
address lost instructional time.
▪ There are also additional federal funds
available to help school districts
address the rising rates of student
homelessness.

Students and their families were impacted by COVID-19. The City can use funding to pilot interventions and programs to help address short-term educational losses.

OUR FAMILIES
DRAFT
36 | HR&A AdvisorsRichmond ARPA Investment Strategy
Los Angeles County is home to over 400,000 families who do not have a reliable home internet connection. Following the COVID-19 pandemic, the Los Angeles County Internal Services Department (ISD) designed and supported the implementation of Community Broadband Networks and Digital Navigators, both of which are solutions to broadband access, affordability, and adoption for communities impacted by the digital divide.

Community Broadband Networks are public-private partnerships to deploy new high- speed internet infrastructure and guarantee affordable internet service. ISD was awarded $56 million in American Rescue Plan Act funding to implement the Community Broadband Network program and is currently partnering with a consulting firm to implement the digital navigators program.

Other cities and counties across California have set aside ARPA funding to address broadband access. The library system in Paso Robles used ARPA funding to purchase hotspots, which residents can checkout. In Santa Cruz County, funding was allocated to connect housing developments and low-income neighborhoods with free or low-cost Internet service. Around the country, municipalities have gotten creative with their ARPA funding to address broadband needs. For example, Dallas County is using ARPA funding to focus on providing residents with a minimum of 100 Mbps download and upload speeds; funding will target households and businesses without access, as well as those with low speeds.

CASE STUDIES
Richmond residents are struggling with both
broadband access and digital literacy.

According to the 2020 US Census, 90 percent of
households in Richmond have access to the internet.

However, the quality and cost of internet access can
vary widely across income groups. For families that had parents and students relying on the internet for work or school at the same time, the quality of their internet
access dipped.

Digital literacy, including accessing virtual meeting spaces, became a constraint for many residents, particularly those from older demographics. Community events, including
religious groups, met online; not being literate in
programs like Zoom limits the ability to connect with
others or participate in remote work. Many services, such as vaccination and testing appointments, required online scheduling further compounding access to care.

Emerging from the pandemic, it is essential to both
increase digital access and literacy and reinvigorate
physical spaces for connection and community. By
investing in parks, libraries, and community spaces,
residents can come together while still reaching their
families and communities online.

Access to affordable, reliable internet service is an important component of staying connected to community events, educational opportunities, and basic services.

OUR CULTURE AND COMMUNITY
DRAFT
37 | HR&A AdvisorsRichmond ARPA Investment Strategy
Alignment with
Community Needs
Needs Addressed & Beneficiaries
Alignment with ARPA
Requirements
Eligible Uses, Timing, & Suitability
Implementation Needs
Responsibility &
Approximate Cost
Provide grants to community nonprofit
organizations providing critical cultural
and supportive services to Richmond’s
communities
Richmond is a diverse city, with half of residents
speaking a language other than English; a third of
the population was born outside of the U.S.

However, the lack of culturally competent and
representative resources means that a significant
portion of the city continues to struggle accessing
information and resources.

H&E, PS
Make deployment deadline a
requirement of the NOFA
Funds for temporary or one-time
programming; no ongoing
commitment
Nonprofit organizations
TBD based on NOFA responses
Dedicate funding to commission local
artists to create public art installations
Arts and cultural institutions were among the
hardest hit industries during the early stages of
COVID and were less likely to receive Paycheck
Protection Program funding. Investment in public
art will not only support local creators, but also
provide a sense of community pride and
connection.

H&E, PS
Make deployment deadline a
requirement of the NOFA
Funds for temporary or one-time
programming; no ongoing
commitment
Arts organizations, City
TBD based on NOFA responses
Strategies
K. Expand cultural and recreational programming and public art L. Make improvements to public facilities and subsidize available programming M. Expand access to broadband
Eligible uses for ARPA funds:
• H&E – Responding to the public health and economic impacts of COVID-19 • PS – Replacing lost public sector revenue
• PP – Premium Pay for Eligible Workers
• WSB – Investments in Water, Sewer, and Broadband Infrastructure * indicates eligibility in Qualified Census Tracts or disproportionately impacted communities) K
K
The City can use ARPA funds to support expanded cultural programming and amenities to enhance mental health, community wellbeing, and quality of life.

OUR CULTURE AND COMMUNITY | POTENTIAL INVESTMENTS
DRAFT
38 | HR&A AdvisorsRichmond ARPA Investment Strategy
Alignment with
Community Needs
Needs Addressed & Beneficiaries
Alignment with ARPA
Requirements
Eligible Uses, Timing, & Suitability
Implementation Needs
Responsibility &
Approximate Cost
Make improvements to parks, open
space, community centers, libraries and
other amenities to improve safety and
utility
Richmond residents rely on their churches,
neighborhoods, and community organizations to
stay socially and economically connected, and
need events to return safely and quickly.

Improvements and upgrades to these facilities will
help connect residents who have felt socially
disconnected from their neighbors and
community or faced mental health challenges.

PS
City to confirm timing for
improvements
Funds for one-time capital
improvements; no ongoing
commitment
City
Provide additional free or subsidized
community and cultural programs
through the City’s parks, libraries, and
community centers
During the pandemic, there were significantly
fewer places to connect, contributing to mental
health challenges and feelings of isolation, as a
result of closure of day programs for the disabled,
churches and community centers, the
cancellation of large cultural celebrations and
community festivals, and the closure of ethnic
restaurants or the shift to take-out only service.

H&E (may depend on type of
programming), PS
City to confirm ability to deploy
subsidized programming
Funds for temporary programming
City
Address digital access and service
disparities by expanding broadband to
under-resourced communities
While 90 percent of households in the city of
Richmond have internet access, statewide data
shows that this access is likely not equitably
distributed across income levels. During the
listening tour, residents shared that the need for
internet service and technology added a new
expense and source of stress.

WSB, PS
City to confirm timing for
improvements
Funds for one-time improvements;
no ongoing commitment
City
K
L
M
The City can use ARPA funds to support expanded cultural programming and amenities to enhance mental health, community wellbeing, and quality of life.

OUR CULTURE AND COMMUNITY | POTENTIAL INVESTMENTS
DRAFT
39 | HR&A AdvisorsRichmond ARPA Investment Strategy
ARPA Expenditures
▪ The City has dedicated over $2M in
ARPA funds to make critical repairs and
improvements to community amenities,
including the main library, Nevin
community center, the recreation
center, Richmond Museum, and MLK. Jr.

Park.

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Dual Approach
▪ Part of the implementation approach for
culture & community involves issuing a
Notice of Funding Availability (NOFA) or
identifying arts and cultural service
organizations to provide expanded
programming and public arts in the near
or intermediate term.
▪ The other part relies on investing
directly into improved city services for
recreation and community amenities.

State Funding
▪ California Arts Council has several grant
programs that provide general
operating relief for arts and cultural
organizations that experienced negative
economic impacts of COVID.
▪ The California State Library has a state-
funded high-speed broadband program
that supports libraries and other
organizations with internet access.

Federal Funding
▪ The Affordable Connectivity Program
provides eligible households with a $30
monthly credit for their internet service
plan.

Nonprofit organizations played critical, central roles for many types of communities during the pandemic, but still face tight resourcing and some competition for funding.

OUR CULTURE AND COMMUNITY
DRAFT
40 | HR&A AdvisorsRichmond ARPA Investment Strategy
40 | HR&A Advisors
03 40
| HR&A AdvisorsRichmond ARPA Community Needs
Assessment
DRAFTImage Source: The Richmond Standard
Guidance to
Prioritize ARPA
Spending
DRAFT
41 | HR&A AdvisorsRichmond ARPA Investment Strategy
The City may not be able to advance all potential strategies identified in the Strategic Investment Plan. To prioritize investments, the City should identify projects that:

ARPA INVESTMENT RECOMMENDATIONS

BUILD ON CITY PROGRESS MADE
The City has already begun pursuing
investments and programs to address
COVID-19 recovery needs identified
through the Community Needs
Assessment and other outreach, as noted
throughout this plan. Projects for which
planning and implementation is already in
progress will be easier to advance within
the timeframe for ARPA funds.
▪ The City should prioritize projects that
are “shovel-ready” or ready to be
funded, or that can easily be advanced
to funding readiness.
▪ The City should also prioritize projects
with public and political support.

ALIGN CAPACITY AND IMPACTS
The City will implement some projects directly, and engage consultants or nonprofit partners to advance others. City staff have limited capacity for new projects, so it will be critical to consider capacity for implementation and impacts.
▪ The City should prioritize projects for which capacity exists or can be outsourced to ensure implementation
and consider staff's capacity to oversee consultants or a NOFA process.
▪ The City should evaluate NOFA submissions on: their
alignment with ARPA investment strategies and the City’s policy for one-time sources of funding; the level of funding requested; the organization’s capacity to deliver services within the timeframe for ARPA funds; and their anticipated impacts.
▪ The City should apply ARPA funds toward a mix of
investments that address immediate needs and advance
long-term initiatives. In addition, the City’s use of APRA funds should align with the City’s ongoing equity work.

LEVERAGE OTHER FUNDING SOURCES
ARPA is a flexible source of one-time
funding to support recovery needs.

However, community recovery needs are
greater than what the City can address
through ARPA alone. The City should
prioritize projects that leverage or help
capture other funding sources, such as:
▪ Hiring grant writers to secure
additional funds for City projects.
▪ Providing technical assistance that
helps residents and businesses
access other funding sources and
services.
▪ Investing in infrastructure
improvements that may attract or
catalyze private investment.

DRAFT
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Richmond, CA | Strategic Investment Plan
Using the American Rescue Plan Act (ARPA)
to Meet our Highest Needs
Image Source: Balazs Gardi/The Guardian
D E C E M B E R 2 0 2 2
DRAFT

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