A U.S. Department of Housing and Urban Development (HUD) designation will benefit the city when federal stimulus funds are allocated.

On Monday, Jamestown Mayor Eddie Sundquist announced to the Jamestown City Council during its work session meeting that the city will be receiving $29.87 million from the $1.9 trillion American Rescue Plan Congress approved and signed by President Joe Biden.

“That is a large number and that is quite shocking, but know that there are some strings attached,” Sundquist said. “We won’t get that funding all at once. It needs to be used to provide a response to COVID, to a potential for premium pay, to make up for lost revenue reductions, as well as water, sewer and broadband infrastructure.”

Sundquist said once the president signs the bill city officials will be issued guidance on how to access the funds and how the money can be used. Sundquist said an advantage for the city when it comes to the allocation of the funding is the city’s designation by HUD as a Community Development Block Grant (CDBG) entitlement community.

The CDBG entitlement program assists metropolitan cities and urban counties meet their housing and community development needs. The program provides annual grants on a formula basis to entitled communities to carry out a wide range of community development activities directed toward neighborhood revitalization, economic development and improved community facilities and services.

The city’s entitlement status was such an advantage that Jamestown’s stimulus aid is $5 million more than what Chautauqua County will receive, which is $24.61 million. The reason why the city will receive more than the county is because of its entitlement designation in the CDBG program.

The disparity is even higher in larger state cities. Buffalo will receive $350 million while Erie County will be allocated $178 million while Rochester will be funded nearly $207 million while Monroe County will only gain approximately $144 million.

Sundquist also said that because Jamestown has the entitlement designation, the funding will be allocated straight to city officials instead of it flowing to the state first and then eventually making its way to the Pearl City.

“I will note that since we are an entitlement community, it provides us with a little bit different usage. Normally that funding would go to the state first and then the state would then provide that money to us, many times adjusting their payment to us, or the aid to municipalities,” Sundquist said.

“Because we are an entitlement community, that money will come directly from the treasurer department. It will not go to the state first, so we do have some advantages there.”