About five years after Durham received federal pandemic relief money, the city has invested in a range of projects from local businesses to affordable housing.
The money comes from ARPA, or the American Rescue Plan Act, which the federal government passed in 2021 as a response to the COVID-19 pandemic. ARPA distributed $350 billion in relief to state and local governments. The city of Durham received about $51.8 million and Durham County received about $62.4 million, with the county disbursing about $15.25 million to the city.
Mayor Pro Tempore Javiera Caballero, who has served on the Durham City Council since 2019, was one of two current council members who were part of the initial ARPA funding allocation process.
“This was a long, arduous process, and we did what we set out to do,” Caballero said during a recent work session. “We put a lot of money back out into the community at a very trying time.”
ARPA funding can be used to support public health responses; replace public sector revenue loss; bolster water and sewer infrastructure; address negative economic impacts; provide premium pay for essential workers; and strengthen broadband infrastructure.
Out of the $73.6 million Durham has received, it has allocated $72.3 million and actually spent $42.5 million so far. With another $330,000 from green-lit projects that didn’t move forward, the city has $1.6 million left to spend.
Since receiving the funding, the City Council approved $13.5 million for affordable housing projects, which Durham County matched. The money was allocated to expand developments for households earning less than 80% of the area median income, according to the county’s 2024 recovery plan. The $13.5 million is in addition to other housing-related projects, including helping Durhamites avoid eviction and preserving existing affordable housing.
The city and county have allocated $750,000 each for digital equity. The city and county have worked jointly to distribute 650 MiFi hotspots, which provide free internet service.
Hayti Reborn Justice Movement, a nonprofit that helps Durhamites find employment, housing, and other resources to avoid involvement in the criminal legal system, received $1 million from the city. The Fayetteville Street Corridor Project, intended to support entrepreneurship, affordable housing, street safety, and historic preservation in Hayti, got $10 million back in 2024.
In addition to significant money allocated for affordable housing and the Durham Housing Authority, Deputy City Manager Bertha Winbush said the city wanted to highlight the small partners “who were really impacted significantly by small amounts of dollars, in some cases.”
The city approved about $19 million for 31 individual projects that residents requested money for, with funding ranging from $35,000 to $1 million each. Twelve of the projects received the full $1 million.
Part of the $10 million awarded to the Fayetteville Street Corridor Project went toward supporting 16 small businesses in the area. Andrew Holland, the city’s assistant director of strategy and performance, said Luster and Beauty Bar, a beauty salon, used the money to buy a chair, mirror, and equipment. Rhythm and Brews Bar and Grill, a restaurant and live music spot, bought lights, a new fridge, and a new freezer and replaced its ceiling.
The city sorted projects into four categories: economic equity, community resiliency, safe and stable housing, and health and wellness. Of those projects, 15 have been completed, 11 are in progress, and five have been suspended. Projects were suspended for various reasons, including that only a small amount of the money provided was spent, Holland said. Of the 11 in progress, Holland said most are close to being completed.
Cities and counties around Durham also received millions in ARPA money to recover from pandemic losses.
Christopher Lawson works as a program manager for the Central Pines Regional Council, which represents 50 municipalities and counties in and around the Triangle.
Lawson, who manages the council’s community and economic development sector, said most local governments realized the ARPA funding was “once-in-a-generation money.”
“Generally, what I noticed, it wasn’t setting up reoccurring programs,” Lawson said. “It was ‘We’ve got this money, we had this idea, let’s go do that specific thing.’”
December 31 is the deadline to spend ARPA money. But the city’s remaining $1.6 million comes from accrued interest, so it isn’t subject to the deadline.
“There is no timeline on these dollars, so they are available to support our budget, City Council priorities, any other discussions you want to have about initiatives,” Winbush said.
The $1.6 million can be used at the council’s discretion. City Manager Bo Ferguson said he wants to bring a proposal for that money, in conjunction with the proposed budget in May, “finding a place for that to support council priorities.”
“Given the complexity of the program, given the significant number of dollars, I think [there’s] a certain amount of pride that we have that we were able to get these dollars out in the community,” Ferguson said. “I’m very proud of the work that a number of departments did to make sure these dollars were deployed into our community and, for the most part, spent very successfully.”
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