TO: CRA Board of Commissioners
FROM: Alexina Jeannite, Community Engagement Director
THROUGH: Renée A. Jadusingh, Esq., Executive Director
DATE: August 31, 2021
Title
MODIFICATIONS TO RENT SUBSIDY PROGRAM GUIDELINES
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Recommended Action:
Recommendation
Approve the modifications to the Rent Subsidy Program Guidelines.
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Background:
The Rent Subsidy Program was established to assist start-up businesses during the critical first year of operation. The CRA pays for up to one-third of a business’s monthly rent, or $500/month
(whichever is less), for a maximum total subsidy of $6,000. Businesses that are eligible to receive funding assistance include: new business ventures; personal service businesses such as salons and barbershops; existing businesses relocating to Delray Beach from another city; or an existing business opening an additional location in Delray Beach.
Currently, the program guidelines require that the grantee make partial payments to the Landlord, then submit proof of such payment to the CRA (along with other documents), and in turn, the CRA pays the Landlord directly for the subsidy amount. Because documentation from the grantee is required on a monthly basis, prior to the disbursement of subsidy payments, this causes a timeline issue between the time the grantee is to pay the partial rent and when the Landlord will receive the subsidy payment from the CRA for the remaining portion of rent.
The CRA staff is making the recommendation to modify the Rent Subsidy Program Guidelines to allow for the CRA to directly reimburse the grantee. Proof of full payment of rent is required to request the reimbursement. The option to reimburse the grantee will eliminate any interruptions to the rent payment schedule as well as enhance the administration of the Rent Subsidy Program, making it more efficient.
Attachments: Exhibit A - Rent Subsidy Program Guidelines with tracked edits
CRA Attorney Review:
The CRA Attorney has reviewed the Program Guidelines (with tracked edits) and has determined it to be acceptable.
Finance Review:
N/A
Funding Source/Financial Impact:
N/A