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DCRA-ARPA Local Government Lost Revenue (LGLR) Relief Program

The Alaska legislature appropriated $50 million from the State’s American Rescue Plan Act (ARPA) COVID State and Local Fiscal Recovery funds toward a local government relief grant program to promote economic recovery and continuity of government services to local governments that experienced revenue loss due to COVID-19, to be administered by the State of Alaska Department of Commerce, Community and Economic Development, Division of Community and Regional Affairs.

The application period for the DCRA - ARPA Local Government Lost Revenue Relief Program is now open!

The application period opened November 5, 2021 and will remain open until December 6, 2021. Applications will be accepted by email or fax at:
Attn: Robert Pearson, Division of Community and Regional Affairs
Email: DCRA.LGLR@alaska.gov
Fax: 907-465-4761

If you cannot apply via email or fax, please call 907-465-5541 to make alternative arrangements.

The DCRA-ARPA Lost Revenue Relief program is not a first-come, first, served grant opportunity.

Eligibility Requirements:

Alaska municipal governments are eligible for this program. Non-profits, community associations, tribes, school districts, and other non-governmental entities are not eligible for this funding.

Local governments must demonstrate at least a 10% revenue loss in 2020 revenue according to DCRA’s formula-based calculation tool.

Must be eligible to receive federal funding.

Must have a DUNS number. For guidance on how to obtain and/or manage a DUNS number, visit https://sam.gov/content/entity-information

Eligibility does not guarantee funding.

Grant Amounts:

Award amounts will be determined based on qualifying revenue loss due to COVID-19 and the total amounts applied for. If qualifying awards exceed $50 million, the award amounts will be calculated on a proportional basis. Remaining funds, if any, will be distributed in a second round of funding based on the period January 1 through December 31, 2021.

Allowable Use of Funds:

Federal rules and guidelines give recipients broad latitude to use funds to the extent of reduction of revenue. These funds may be used for the provision of government services.

Government services can include but are not limited to:

  • Maintenance of infrastructure
  • Pay-go spending for building new infrastructure (pay-go means financing expenditures with funds that are currently available rather than borrowed)
    • including roads;
    • modernization of cybersecurity;
    • health services;
    • environmental remediation;
    • school or educational services; and
    • provision of police, fire, and other public safety services

The funds may NOT be used to:

  • Pay interest or principal on outstanding debt
  • Replenish rainy day or reserve funds
  • Pay settlements or judgements
  • Other expenditures not considered to be for the direct provision of government services.

Application Process:

Review our DCRA-ARPA Local Government Lost Revenue Relief Program Handbook and Grant Application Instructions.

The Division of Community and Regional Affairs is the administrator for the DCRA-ARPA Local Government Lost Revenue Relief Program. For questions or assistance with your application, you can contact Robert Pearson at 907-465-5541 or DCRA.LGLR@alaska.gov

Local governments have a month-long window to apply, and grants will be issued based on the demonstrated revenue loss from January 1, 2020 to December 31, 2020, the first point in time revenue loss may be calculated in accordance with US Treasury guidance on use of ARPA funds for revenue loss. Detailed guidance is available in DCRA’s Application Handbook. Grants will not be awarded until the end of the application period after all applications have been reviewed.

More information is available at Treasury’s Coronavirus State and Local Fiscal Recovery Funds Website

Documents


FAQ

Q: Why does the initial application period only cover revenue losses from calendar year 2020? Q: Why is 10% the threshold for lost revenue? Q: How is lost revenue calculated?

A: Based on the federal formula in the Coronavirus State and Local Fiscal Recovery Funds Frequently Asked Questions at SLFRPFAQ.pdf (treasury.gov) used in DCRA's lost revenue calculation tool for local governments.

A reduction in a recipient’s General Revenue equals:

Federal Formula

Where:

Base Year Revenue is General Revenue collected in the most recent full fiscal year prior to the COVD-19 public health emergency.

Growth Adjustment is equal to the greater of 4.1 percent (or 0.041) and the recipient’s average annual revenue growth over the three full fiscal years prior to the COVID-19 public health emergency.

n equals the number of months elapsed from the end of the base year to the calculation date.

Actual General Revenue is a recipient’s actual general revenue collected during 12-month period ending on each calculation date.

(Subscript t denotes the calculation date.)

Q: How will the application process work for this program? Q: What is the maximum grant amount a local government may be eligible for? Q: Is there a way to request an exception to the eligibility requirements? Q: If I'm an entity that is not eligible, will another program launch that I can apply for? Q: Why is there only $50 million allocated to this program? Q: Can a consultant help complete a local government's application? Is this acceptable? Q: I need help completing my DCRA-ARPA Local Government Relief Grant Application. What do I do?

Contact

Robert Pearson
Division of Community and Regional Affairs
Department of Commerce, Community, and Economic Development
Location: Juneau
Phone: (907)465-5541
Email: DCRA.LGLR@alaska.gov

Revised 11/08/2021