GOVERNMENT
HOW DID THIS HAPPEN?
The Hays County Emergency Rental Assistance Program began six months after receiving federal funds. This is a timeline of events leading up to the nearly $2.5 million loss of federal funds.
The Department of the Treasury states that the expenditure ratio is 30%. Those below 30% of their spent funds are subject to potential recapturing of funds.
OCT. 4
Deputy Secretary of the Treasury Adewale Adeyemo announces detailed reallocation guidelines stating that there is a minimum ratio needed to be met and “the closer [an entity] is to the minimum ratio, the lower the amount of recaptured funds will be.”
Hays County ERA Program loses $772,791.22, which is reallocated to other entities utilizing their funds.
SEPT. 24
DEC.
The U.S. Department of the Treasury launches a $25 billion Emergency Rental Assistance Program; Hays County receives $6,955,475.70.
JAN. 5
The Department of the Treasury may re-evaluate all entities once again, at which point Hays County may lose more funds.
MARCH
2021
2022
The Hays County ERA Program loses $1.7 million.
FEB. 10 FEB. 15
The Department of the Treasury announces an additional $21.6 million to entities to ensure they are serving their communities and addressing housing challenges.
The Department of the Treasury announces that the amount of funds spent in June is the most spent in all previous months combined. Hays County launches its ERA Program to help citizens in need of financial assistance.
MAY 7
JULY
ERA Program Manager Wesley Matthews resigns, prompting the commissioners to seek proposals for the position. The Department of the Treasury re- evaluates all entities.
The Department of the Treasury begins evaluating every entities’ reports, looking for those that did not meet the minimum requirement and reallocating funds from those entities.
JAN.
NOV.
Hays County Commissioners Court approves a contract for the ERA Program manager position with Ardurra Group Inc.
JULY 21
SOURCES: HAYS COUNTY, U.S. DEPARTMENT OF THE TREASURY/COMMUNITY IMPACT NEWSPAPER
Hays County under scrutiny for nearly $2.5 million loss of funds
BY ZARA FLORES
county opted not to hire a third party to run the program as “all proposals received by the county included elevated administration costs, which the county thought would negatively impact the funding available for its citizens in need of assistance.” However, on the frequently asked questions page of the Department of the Treasury’s website, it is stated that 10% of the funds allocated to entities “may be used for administra- tive costs attributable to providing financial assistance and housing sta- bility services to eligible households.” Becerra cited his grievances with the former ERA program manager, Wesley Matthews. “The shortcomings of the expendi- ture ratios were a direct result of the program manager’s narrow approach to the administration of the ERA Program,” Becerra wrote. In his time as programmanager from July 2021-January 2022, Matthews alleged that all requests for additional staffing for the programwere denied. For $84,000, or 1.2% of the nearly $7 million allocated, the program could have hired six additional employees for help, he said. When asked about the letter to the U.S. representatives and about Matthews’ attempts to get additional staffing help, Becerra told Commu- nity Impact Newspaper in an email “I signed the letter as the head of
Commissioners Court. I personally do not believe we should blame anyone but the court.” Instead of spending $84,000, the commissioners were willing to lose over $2 million, Matthews said. He also alleged that attempts to speak to the commissioners for input and assistance for the program were either denied or very difficult to achieve and were often kept in execu- tive sessions, meaning the transcripts and details are not public record. The ticketing system to receive appli- cations and keep track of information was run through the county’s informa- tion technology system, he said. Upon Matthews’ departure from the program, the county Commissioners Court issued a request for proposals to outsource the position. They have since approved a contract with Ardurra Group Inc. for the position. Ardurra began meeting with staff, training and the takeover of the programMarch 9. The county will be re-evaluated every two months. The minimum amount that needs to be spent will continue to increase by 5% each month. If the county fails to meet that minimum, it could continue to lose the ERA funding. Requests for 2022 spending data were not made available from the pro- gram by the publication of this article. Residents in need of assistance can apply at https://era.co.hays.tx.us.
therefore making it ineligible for additional funding. The county was not only ineligi- ble for additional funding to help residents, but it was almost too late for the county to keep the original amount of funding provided. In mid-September, Deputy Secretary of the Treasury Adewale Adeyemo pre- sented detailed guidelines regarding reallocation of funds from entities that had not spent 30% of their funds by October. By the end of the month, Hays County reported it had spent $149,733, or 2.65% of the funds. As a result of not meeting the minimum requirements, $772,791.22 was taken from Hays County’s ERA fund—along with 20 other entities nationwide—in December and reallo- cated elsewhere. In February, the Department of the Treasury took another $1.7 million from the Hays County ERA fund for not meeting the minimum spending requirement. On Feb. 7, Hays County Judge Ruben Becerra posted to Facebook a letter he wrote to U.S. Reps. Chip Roy, Roger Williams and Lloyd Doggett asking for assistance regarding the second loss of funds. “Hays County is seeking an exten- sion of time in order to adequately allocate the funding to our citizens,” Becerra wrote in the letter. In the letter, Becerra said that the
In February, Hays County learned it would be losing federal funding for the second time from its Emergency Rental Assistance Program for not meeting the minimum spending requirement, at almost $2.5 million. The U.S. Department of the Treasury began the $25 billion program in January 2021, to help citizens with rent, utility and other payments. Through the Department of the Treasury, funding was allocated to more than 500 cities, counties and other entities across the country. Hays County was allocated $6,955,475.70 in ERA1 funding, though the money remained untouched through August, according to the Department of the Treasury’s ERA reports. The county also received $7,552,074 million in ERA2 funding for non- COVID-19 related expenses that can’t be touched until ERA1 funds are spent. It was not until six months later, in July, that the county announced the ERA program that is meant to provide financial assistance to residents for rent, utilities and other payments. In September, the Department of the Treasury allocated even more funding to ERA programs to “high-performing” entities. Neighboring entities such as Travis County had already spent almost $2 million by Sept. 1. Hays County did not disperse a penny by Sept. 1,
15
SAN MARCOS - BUDA - KYLE EDITION • MARCH 2022
Powered by FlippingBook