DAYTON, Ohio (WDTN)– The City of Dayton announced they’ve created a plan to distribute the $138 million it’s receiving from President Biden’s American Rescue Plan Act funds. City staff say this has been a long process, after several public hearings and written surveys, their priority is to allow the community to lead the way in distributing funds.

“So many cities across the country have had such an incredibly, incredibly tough year, including Dayton,” said City Manager Shelley Dickstein.

$138 million will soon be flooding into Dayton’s economy from the American Rescue Plan Act. After eight community sessions and under 2,000 survey replies, City Manager Shelley Dickstein says the public has decided where the funds will go.

  • $55 million will go towards housing, parks and playgrounds including $16 million towards demolition of over 1,000 abandoned homes across the city
  • $36 million to cover the income tax that will not be received due to residents working from home
  • $21.5 million will keep city facilities and agencies operating
  • $10.8 million to fuel catalytic economic development projects
  • $7.6 million will help black-owned businesses recover from pandemic restrictions
  • $7.3 million for aiding community and small business recovery

“That’s the most we’ve put in demolition ever and I think it can be a real game changer for clearing blight and creating opportunities to start reinvestments into our neighborhoods,” said Dickstein.

Due to the pandemic, if people are working more than 20 days out of a year from home they can claim their income where they live instead of where they work. Dickstein believes it will cost the city up to $15 million annually. These funds will create a safety net for three years.

Additionally, staff says the public voiced concerns for small businesses recovering from the pandemic. They created the first floor fund which will target pedestrian oriented business districts in the city.

“The small retailers, the restaurants, they really got hit with the pandemic when everything shut down so this is a way to target and this is a revolving loan program to provide funding to those businesses,” said Dickstein.

There is a public hearing scheduled for December 15 and after receiving final approval, staff say there will be a 6 month period to organize funds and applications.

To watch Wednesday’s City Commissioner meeting, click here.