How To Spend $479M: Riverside County Mulls Where Money Should Go

RIVERSIDE COUNTY, CA — The Board of Supervisors Tuesday authorized a provisional spending plan for Riverside County's share of federal American Rescue Plan Act funds, designating portions of the county's $479 million allocation to infrastructure improvements, homeless relief, child care and other needs.

"We continue to focus on really getting these dollars out into the community," Transportation & Land Management Agency Director Juan Perez said ahead of the board's 5-0 vote.

The county received the first half of its ARPA distribution — $239.9 million — in May, and the balance is due next spring. However, none of the funds have been expended because jurisdictions throughout the nation have been awaiting final criteria from the U.S. Treasury on what qualifies as appropriate use of the money.

Interim guidance was received last month, allowing county TLMA and Executive Office staff to begin sorting out where funds can be dedicated.

The categories are infrastructure, homelessness solutions, economic recovery, public health, revenue backfills for agencies impacted by COVID containment measures, nonprofit assistance, rental assistance and child care.

Perez said $65 million is slated for infrastructure needs, including road improvements, but most prominently the expansion of broadband internet access to remote areas of the county.

"We will return to the board with more specific information," the TLMA director said of the plan, as well as all other proposed spending commitments.

Supervisor Kevin Jeffries was doubtful that some of the goals were achievable.

"My concern is our capacity to deliver," Jeffries said. "We have trouble getting roads paved in a timely manner because we're spread too thin in the county. I'm not confident we have the capacity with existing staff to complete (infrastructure) projects."

Supervisor Jeff Hewitt said the key will be "flexibility."

"We try to have equity in all five (supervisorial) districts, but sometimes that's not going to be possible," Hewitt said. "Hopefully we won't miss some important projects. We want to make sure that when we start approving (projects), we can shift from one bucket to another."

Supervisor Manuel Perez said he was comfortable with a general outline of how to proceed, as long as specific details are included in individual spending proposals associated with ARPA funds that are brought to the board for consideration.

"Those specifics need to be cleared up, but we should move forward with this because our folks are asking for it," the supervisor said.

Board Chair Karen Spiegel expressed concern that the rental assistance programs under ARPA, and established using 2020 Coronavirus Aid, Relief & Economic Security Act — CARES — funds, continue to ignore "mom and pop" property owners who rent out apartments.

"If a tenant doesn't file for assistance, the landlord doesn't get paid," Spiegel said. "Individuals can get all kinds of assistance, but landlords, like mom and pops who own units for their retirement -- we're turning our back on them and not giving them an opportunity to catch up.

People are walking away from these landlords, owing them thousands of dollars."

Until earlier this year, the state and federal governments imposed eviction moratoriums that deferred court hearings on unlawful detainers, allowing people to remain in their current leased properties if unable to pay because of job losses stemming from the coronavirus pandemic.

Spiegel said corporate entities had the ability to absorb the losses, but not smaller scale operators.
County Housing, Homelessness Prevention & Workforce Services Director Heidi Marshall acknowledged that it has been "problematic for some mom and pops," but the feds continue to require that all requests for rental relief begin with applications from tenants.

Roughly $90 million in CARES money has been spent on rental assistance, according to Marshall.

The county's total CARES disbursal last year was about $480 million, and CEO Jeff Van Wagenen said nearly $10 million remains available. Proposals on how to spend the remainder will be coming to the board before the end of the year, officials said.

The board last month urged the Executive Office to ensure child care was included in and among the categories eligible for the ARPA funds, and TLMA Director Perez said $15 million is tentatively in the mix for those programs, with the aim of government-subsidized measures providing the means for parents and guardians to get back into the workforce without worrying over how their children will be supervised.

The $1.9 trillion ARPA was approved by Congress in March.