Charlotte, North Carolina

Recovery Plan 

State and Local Fiscal Recovery 

Funds

2021 Report
Charlotte, North Carolina 2021 Recovery Plan Performance Report 1

About the Recovery Plan Performance Report

All metropolitan cities and counties with a population greater than 250,000 residents that 

received an award from the State and Local Fiscal Recovery Fund are required by the U.S. 

Department of Treasury (Treasury) to produce a Recovery Plan Performance Report (the 

“Recovery Plan”). This Recovery Plan provides information on Charlotte’s proposed spending 

for the first tranche of this funding, and how the City plans to ensure program outcomes are 

achieved in an effective and equitable manner. As specific projects are implemented, future 

iterations of this report will include key performance indicators identified by the City and

mandatory indicators identified by the Treasury. Subsequent annual Recovery Plans will be

posted on the City’s website on or by the date the the reports are submitted to the Treasury. 

This initial Recovery Plan covers the period from the date of award to July 31, 2021. This report 

will be updated annually according to the schedule below: 

Annual Report Period Covered Due Date

1 Award Date – July 31, 2021 August 31, 2021

2 July 1, 2021 – June 30, 2022 July 31, 2022

3 July 1, 2022 – June 30, 2023 July 31, 2023

4 July 1, 2023 – June 30, 2024 July 31, 2024

5 July 1, 2024 – June 30, 2025 July 31, 2025

6 July 1, 2025 – June 30, 2026 July 31, 2026

7 July 1, 2026 – December 31, 2026 March 31, 2027

More information about the State and Local Fiscal Recovery Fund program and associated 

reporting requirements are located at www.treasury.gov/SLFRP.
Charlotte, North Carolina 2021 Recovery Plan Performance Report 2

Charlotte, North Carolina

2021 Recovery Plan

Table of Contents

Executive Summary..................................................................................................................3

Uses of Funds ...........................................................................................................................4

Promoting Equitable Outcomes...............................................................................................5

Community Engagement..........................................................................................................6

Labor Practices.........................................................................................................................6

Use of Evidence ........................................................................................................................6

Expenses by Expenditure Category and Project Inventory ...................................................7
Charlotte, North Carolina 2021 Recovery Plan Performance Report 3

Executive Summary 

The American Rescue Plan Act allocated $142 million in Local Fiscal Recovery Funds to the 

City of Charlotte (the City). The City received the first tranche of this funding, $71 million, in May 

of 2021. Given the potential impact of this unprecedented federal investment, the City is being 

deliberate in planning for the use of these funds. This planning includes a balance between 

immediate needs, informed by public health and economic data, and transformational 

investments in Charlotte’s future, informed by City Council priorities and stakeholder input. This 

planning also includes a balance between internal investments in the City’s core services and 

externally focused community investments to support those most impacted by the COVID-19 

pandemic. 

Through this approach, the City has identified four potential categories of investment for the first 

tranche of Local Fiscal Recovery Funds:

City Operations

• Key goal – Ensure the continued provision of key government services and promote 

the safety and well-being of city employees.

• Potential projects –

o Information and technology investments in response to pandemic operational 

needs; 

o Employee vaccination incentive program; 

o Premium pay for first responders; and 

o Emergency medical leave.

Housing and Homelessness

• Key goal – Provide targeted support to families and individuals experiencing housing 

instability and/or homelessness.

• Potential projects –

o Investments to support neighborhood stabilization priorities identified by 

Charlotte City Council’s Great Neighborhoods Committee; and

o Investments to support the implementation of recommendations from the 

2025 Charlotte-Mecklenburg Housing and Homelessness Strategy 

Comprehensive Plan, designed to address and/or prevent homelessness in 

the local community.

Workforce Development and Employment

• Key goal – Provide targeted support to enhance small business competitiveness and 

job creation in the wake of the pandemic; provide relief to key industries [i.e., hotels] 

most impacted by the COVID-19 pandemic; and support our ongoing efforts to 

enhance economic vitality within the City’s identified “Corridors of Opportunity”.

• Potential projects –

o Support for ongoing workforce development studies to improve employment 

and economic mobility in areas of the City disproportionately impacted by the 

pandemic;

o Development of a digital platform to connect small businesses with 

pandemic-related resources;
Charlotte, North Carolina 2021 Recovery Plan Performance Report 4

o Hospitality sector support;

o Grants to support small businesses most impacted by the pandemic; and

o Workforce development training for individuals most impacted by the 

pandemic.

Community Vitality

• Key goal – Support the recovery of Charlotte’s communities that were most impacted 

by the COVID-19 pandemic.

• Potential projects –

o Investments in internet access;

o Targeted support to grassroots non-profits impacted by the pandemic;

o Public safety projects in impacted communities.

This framework is still in development, and City staff are working closely with Charlotte’s City 

Council to finalize and adopt an ultimate plan for these funds. As the City awaits final federal 

guidance, staff will continue to work with the community to further refine and eventually

implement this plan.

Uses of Funds

The American Rescue Plan Act defines six eligible Expenditure Categories for Local Fiscal 

Recovery Funding. The proposed framework included this report is designed to address 

Charlotte’s most critical needs as the City continues to recover from the COVID-19 pandemic. 

The investment categories and potential projects included in this framework are based on 

extensive community engagement and a thorough analysis of public health and economic data 

and are targeted at the communities that have been most impacted by COVID-19. Although no 

specific projects have been implemented at this time, the City anticipates this framework would 

address the Expenditure Categories outlined in the American Rescue Plan in the following 

ways:

• Public Health – Mecklenburg County is the lead public health agency in the Charlotte

area, and the City is working closely with the County to coordinate investments in public 

health. Given that many city employees interact with the public daily, the City is exploring 

a vaccination incentive program for all employees. The City is also considering public 

safety projects to address violent crime in Charlotte’s most vulnerable communities.

• Negative Economic Impacts – The City is proposing to use initial investments to support 

the development of Charlotte’s Corridors of Opportunity Workforce Study and HIRE 

Charlotte strategic employment plan, which will in turn inform future Local Fiscal 

Recovery Fund investments. The City is also planning to invest in the development of a 

digital platform to connect small businesses with the resources needed to plan and thrive 

in a post-pandemic future. Additional proposed investments focus on direct support for 

Charlotte’s most impacted communities, including:

o Support for hospitality sector focused on job creation and tourism;

o Workforce development training for those most impacted by the pandemic;

o Innovation grants to aid small businesses as they adapt to new economic 

realities caused by COVID-19;

o Support for non-profits with demonstrable financial hardship caused by the 

pandemic; and
Charlotte, North Carolina 2021 Recovery Plan Performance Report 5

o Arts and culture grants to support artists impacted by the pandemic.

• Services to Disproportionately Impacted Communities – The City has previously 

identified six “Corridors of Opportunity” (Corridors) for prioritized investments in housing, 

community safety, infrastructure, transportation, and workforce and business 

development. These Corridors have significant overlap with the Qualified Census Tracts 

identified by the U.S. Department of Housing and Urban Development. Spending across 

most investment categories will be targeted at communities in these Corridors. In the 

coming months, the City intends to identify specific opportunities to invest in antidisplacement [“staying in place”] initiatives across the city, with a focus on investments in 

the City’s Corridors.

Charlotte’s homeless population was especially vulnerable and impacted by COVID19. The City, alongside more than thirty community leaders and stakeholders, has been 

working to develop a 2025 Charlotte-Mecklenburg Housing and Homelessness Strategy. 

This group is scheduled to release a Comprehensive Plan for addressing housing and 

homelessness this October. The specific recommendations from this plan will be 

considered as potential opportunities for Local Fiscal Recovery Fund investments, which 

will be coordinated with investments and projects supported by the Emergency Rental 

Assistance and HOME programs provided in the American Rescue Plan.

The City is also proposing to use a significant portion of the Local Fiscal Recovery 

Fund to promote digital inclusion in communities of need. Specific projects would include 

targeted investments in internet access, digital literacy, and technical support.

• Premium Pay – The City used Coronavirus Relief Funding provided by the CARES Act 

to support premium pay for first responders and frontline workers throughout the height 

of the pandemic. The City is considering a resumption premium pay for these 

employees, as COVID-19 cases are beginning to resurge in the Charlotte area. City staff 

are continuously monitoring public health data and will act accordingly in the coming 

months. 

• Water, Sewer, and Broadband Infrastructure – The City is not currently planning to use 

any of the first tranche of Local Fiscal Recovery Funding on infrastructure projects.

• Revenue Replacement – Based on the formula included in the Interim Final Rule

provided by the U.S. Department of Treasury, the City has estimated a calculated

Revenue Loss in excess of $150 million for calendar year 2020. The City is currently 

planning to reserve approximately 15% of the first tranche of Local Fiscal Recovery 

Funding for city operations. Actual spending in this category will be contingent on the 

City’s operational needs over the course of the next year.

Promoting equitable outcomes 

The City is prioritizing investments in the communities most impacted by COVID-19, specifically 

along our six “Corridors of Opportunity” (Corridors). As previously mentioned, these Corridors 

are areas the City has prioritized for investments in housing, community safety, infrastructure, 

transportation, and workforce and business development. These Corridors have significant 

overlap with the Qualified Census Tracts identified by the U.S. Department of Housing and 

Urban Development. Spending across most investment categories will be targeted at 

communities in these Corridors.

The City will consult federal guidance and internal expertise to develop a plan to spread 

awareness of Local Fiscal Recovery Fund-supported programs as they are implemented.
Charlotte, North Carolina 2021 Recovery Plan Performance Report 6

Outreach will be targeted to disadvantaged areas and communities of need. Over time, the City 

will refine outreach efforts to ensure underrepresented groups are captured by community 

engagement efforts.

Project managers will consult federal guidance to develop equity goals for appropriate projects

and will develop plans for collecting the appropriate data and metrics to measure equitable 

outcomes throughout projects’ implementation. 

Community Engagement 

The City’s current framework for the first tranche of Local Fiscal Recovery Funding builds on 

many of the programs the City established with Coronavirus Relief Funds provided by the 

CARES Act. These programs were developed in close consultation with the community through 

Charlotte’s COVID 2020 Community Recovery Task Force (Task Force). The Task Force held a 

series of listening sessions with community leaders and stakeholders and focused on COVID19’s impact on small businesses and housing throughout Charlotte.

Additionally, many of the proposed programs in the current framework were designed around 

recommendations from existing strategies, studies, and community engagement efforts 

developed by the City in the past year. This includes:

• The City’s Corridors of Opportunity Workforce Study and HIRE Charlotte strategic 

employment plan, which involved stakeholder interviews and surveys. When finalized, 

these studies will inform many of the proposed economic and workforce development 

programs.

• The Charlotte-Mecklenburg 2025 Housing and Homelessness Strategy Comprehensive 

Plan, which is being developed by a team of more than thirty community leaders and 

stakeholders. Recommendations from this plan would be the basis of the housing and

homelessness investments proposed in the framework.

• The City’s FY2022 budget development process, which included public listening 

sessions and an online survey. Recommendations from this engagement were used to 

develop the arts and culture investments proposed in this framework.

• The SAFE Charlotte Community Input Group, which provided the recommendations that 

form the basis of the City’s SAFE Charlotte plan, and other community engagement led 

by City Council’s Safe Communities Committee related to violence prevention, violence 

interruption, and a community violence dashboard. The recommendations that arose 

from this engagement would be the basis for the public safety investments proposed in 

this framework.

Labor Practices 

The City is not currently planning to use any of the first tranche of Local Fiscal Recovery 

Funding on infrastructure projects. City staff will follow federal guidance and ensure fair and 

equitable labor practices are employed on any infrastructure projects planned for future Local 

Fiscal Recovery Funding.

Use of Evidence 

The proposed framework included in this report is still in development. The City is working with 

external partners and other government entities to finalize the details of a strategic spending 

plan for the first tranche of Charlotte’s Local Fiscal Recovery Funding. As the City transitions
Charlotte, North Carolina 2021 Recovery Plan Performance Report 7

into project-specific planning, city staff will consult federal guidance and resources to ensure 

qualifying projects are evidence-based and evaluable, and that adequate data is collected to 

measure the outcomes of these projects. Much of the City’s currently proposed spending would 

build on previous programs the City implemented with Coronavirus Relief Funds provided by the 

CARES Act. When possible, the City will attempt to use data collected from former and existing 

programs to inform the implementation of projects supported by the Local Fiscal Recovery 

Fund.

Expenses by Expenditure Category and Project Inventory

The City is still finalizing a spending plan for the first tranche of Local Fiscal Recovery Funding. 

None of the City’s Local Fiscal Recovery Funding has been obligated at this time, and no 

projects have been implemented.