StoryAmerican Rescue Plan Act (ARPA) Funding for Homelessness Response and Prevention ServicesJune 26, 2026

Bloomington allocates final $175,000 in federal homelessness funds

The Bloomington Housing and Redevelopment Authority unanimously approved spending the last of its federal pandemic relief money on three local organizations that provide homelessness services. The decision came after a commissioner raised questions about how the city vets organizations receiving public funds.

Meeting date: Dec 11, 2024
Published Jun 26, 2026

On December 10, the Housing and Redevelopment Authority voted unanimously to distribute $175,000 in remaining American Rescue Plan Act funds—federal money allocated during the COVID-19 pandemic—to combat homelessness in Bloomington. The three selected organizations are Oasis for Youth, Home Line, and Touchstone Mental Health Services. Two will receive their full funding requests, while one will receive 85% of what it requested.

The deadline to commit these funds is the end of 2024, with all money needing to be spent by June 2025. This represents the final portion of a larger $500,000 allocation the city received. Staff said they selected the organizations through a formal request-for-proposal process that drew three applications.

Commissioner Mueller pressed staff on the vetting process before voting, citing recent high-profile fraud cases involving nonprofits. "Can you share a little bit about how we review RFP and what we did to vet the organizations to ensure the funds will be used properly?" Mueller asked. Staff responded that the city has "pretty robust" monitoring systems in place and emphasized that the selected providers have established reputations. They also noted that the city works with the attorney's office to ensure compliance with contracting laws.

The unanimous approval—with Commissioner Musa making the motion and Commissioner Mueller seconding it—signals the board's confidence in both the organizations and the city's oversight mechanisms. The decision moves forward efforts to address homelessness in Bloomington through prevention and response services.

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Full analysis

Votes (1)

American Rescue Plan Act (ARPA) Homelessness Response and Prevention Services Agreements

Approved Unanimously

Dissent: None

Moved by Commissioner Musa [6:30] · Seconded by Commissioner Mueller [6:31]

Staff presented a recommendation to allocate the remaining $175,000 of ARPA funds. These funds, part of a larger $500,000 allocation, must be committed by year-end 2024 and spent by June 2025, with a possible three-month extension. The recommendation was to fund three community organizations: Oasis for Youth, Home Line, and Touchstone Mental Health Services, with two at full request and one at 85%. Commissioner Mueller raised concerns regarding the vetting process for organizations, referencing recent high-profile fraud cases. Staff reassured the board about the robust, standardized RFP and contracting processes, emphasizing the known reputation of the selected providers and the city's monitoring systems.

Notable Quotes (3)

There's a remaining $175,000 to commit yet this year these contracts do need to be executed by the end of 2024 and so we have staffers according to an RFP process and received three applications.

American Rescue Plan Act (ARPA) Homelessness Response and Prevention Services Agreements

CAN YOU START TO SHARE A LITTLE BIT ABOUT HOW WE REVIEW RFP AND WHAT WE DID TO VET THE ORGANIZATIONS TO ENSURE THE FUNDS WILL BE USED PROPERLY AND WE'LL BE SUPPORTING RESIDENTS IN BLOOMINGTON

— Commissioner Mueller [4:40]
American Rescue Plan Act (ARPA) Homelessness Response and Prevention Services Agreements

BUT I THINK OUR SYSTEMS ARE PRETTY ROBUST HERE TO MONITOR THAT AND IT'S A FOCUS OF OUR NEW STAFF TO MAKE SURE WE'RE WE'RE FOLLOWING OTHER CONTRACTING LAWS AND WORKING WITH THE ALL TO MAKE SURE WE'RE ON.

American Rescue Plan Act (ARPA) Homelessness Response and Prevention Services Agreements

Ordinances & Resolutions (3)

Resolution 2024-27Resolution

Authorizing staff to enter into service agreements for homelessness response and prevention services.

American Rescue Plan Act (ARPA)Other

Federal legislation providing funding for various recovery efforts, including homelessness response.

Homelessness Response and Prevention Services AgreementsOther

Contracts with service providers (Oasis for Youth, Home Line, Touchstone Mental Health Services) for ARPA-funded services.

Source document

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