1 MEMORANDUM
DATE: May 15, 2023
TO: Justin Hess, City Manager
FROM: Patrick Prescott, Community Development Director VIA: Simone McFarland, Assistant Community Development Director BY: Maribel Leyland, Housing Authority Manager
SUBJECT: Budget Discussion Paper : Emergency Solutions Grant for S ecurity D eposit Assistance to Renters; or Similar Service Provider City Funded Program
INTRODUCTION
At the City Council meeting on May 9, 2023, Councilmember Takahashi requested information on the Emergency Solutions Grant (ESG) program as a possible funding source for a security deposit program. This memorandum summarizes the ESG federal program and the City of Burbank Rapid Re-Housing (RRH) Program currently in place for Burbank.
BACKGROUND
The federal Emergency Solutions Grant or ESG provides funds for a variety of activities to address homelessness . It is authorized by the Homeless Emergency Assistance and Rapid Transition to Housing (HEARTH) Act of 2009. T he U.S. Department of Housing and Urban Development (HUD) provides grants to States, cities, and counties who are deemed “entitlement recipients” under ESG program provisions. 1 In addition, the California Department of Housing and Community Development ( HCD) receives and administers funds for non- entitlement recipients and allocates those funds to Continuums of Care (CoC).2 The City of Burbank is not deemed an entitlement recipient of ESG nor are we a Continuum of Care. For additional details on this federal program, please see the ESG fact sheet (Attachment 1).
DISCUSSION
Home Again L.A. (HALA) administers Burbank’s RRH Program that includes a security deposit component. The program is funded with the City’s Permanent Local Housing Allocation (PLHA) through state funds awarded to the City.3 This is year two of a five-year RRH program approved
1 Title 24, Code of Federal Regulations Part 576.2
2 HCD ESG Program information Link - https://www.hcd.ca.gov/grants-and-funding/programs-active/emergency-solutions-grants. 3 The PLHA program is funded by Senate Bill 2 that became effective January 2018, and was part of a 15-bill housing package aimed at addressing the State’s housing shortage and high housing costs. Specifically, it
COMMUNITY
DEVELOPMENT
2 by the City Council for use of PLHA funds. HALA is the selected service provider for the RRH program due to their years of experience in administering this type of program that include s security deposit assistance as necessary. The program used to be funded by the Community Development Block Grant (CDBG) program in prior years. However, with PLHA funds available, CDBG funds are instead utilized for other critical programs in the city. The current RRH provides rental assistance to extremely-low income, h omeless households , and those at risk of homelessness for up to six months; along with case management to assist households with education and training in financial stability ; and a security deposit if necessary . The RRH flyer is attached for reference (Attachment 2).
HALA is also a homeless service provider in S ervice P lanning Area (SPA) 2. 4 They are a
subrecipient of different funding sources for the area – including ESG and California Emergency Solutions and Housing Grants (CESH). Those funding sources have income and jurisdictional boundary limits, and HALA leverages those funds to assist Burbank households as appropriate.
As previously noted, Burbank does not qualify for federal ESG funds, and CESH funds go directly to a Continuum of Care (CoC) for award. For Burbank, the CoC is the Los Angeles Homeless Services Authority ( LAHSA). When CESH funds are available, those funds are awarded by LAHSA on a competitive basis. Burbank has and will continue to apply to those funds.5
Should the department’s additional staff requests be approved for the Fiscal Year (FY) 2023- 2024 budget, those positions will be critical for grant writing to LAHSA (and any other federal, state, or local programs); and for the implementation of future grant funds received. Future funds could augment existing programs for homeless or at risk of homelessness households; and/ or create new programs for the Burbank community as outlined in the council adopted Homelessness Plan.
CONCLUSION
While the City is not eligible for ESG funds, there are other funds available through grants and other local, state, and federal programs. Additional staff is necessary to research and apply for funds to augment or create new programs for the Burbank community. As discussed during the May 9, 2023, budget study session, C ommunity Development Block Grant C oronavirus Aid, Relief, and Economic Security Act (CDBG-CV) funds were utilized to provide emergency rental and security deposit assistance in the city during the Covid-19 Pandemic (also administered by HALA). A total of $667,171 was utilized to assist 265 households with emergency rental assistance and security deposits. This pandemic related effort required extensive staff time and coordination with HALA to implement and expend all available funds. The positions requested in FY 2023-2024 are required to write grants for all available funds including Los Angeles County, federal, state, and other grants for homelessness and housing programs. Those positions are
establishes a permanent source of funding intended to increase the affordable housing stock in California. The revenue from SB 2 will vary from year to year, as revenue is dependent on real estate transactions with fluctuating activity. Burbank has applied to and received PLHA funds for years 1 and 2. The year 3 application is expected later this year, and Burbank will apply. 4 The greater Los Angeles region is broken up into eight Service Planning Areas (SPAs), with Burbank falling into SPA 2. Due to the large size of LA County (4,300 square miles) it has been divided into eight areas that allows the Los Angeles Continuum of Care to develop and provide more relevant services, support, and coordination through 900+ agencies and programs. 5 Through a joint competitive application with HALA, HALA was pre-selected to receive an award of $227,141 for three years for rapid rehousing. The final award notification and contract has not been received to formally announce this award.
3 critical for researching and writing grants, grant reporting ( a major component of grant funds), implementing quality assurance measures, and the management of contracts with service providers.
ATTACHMENTS
Attachment 1 – Emergency Solutions Grant (ESG) Fact Sheet Attachment 2 – Rapid Rehousing Program Flyer
Emergency Solutions Grants (ESG) Program
U.S. Department of Housing and Urban Development, Office of Community Planning and Development Office of Special Needs Assistance Programs, 451 7th Street SW, Room 7262 Washin gton, DC 20410 CFDA Number: 14.231
OBJECTIVES
The ESG program provides funding to: (1) engage homeless individuals and families living on the street; (2) improve the number and quality of emergency shelters for homeless
individuals and families; (3) help operate these shelters; (4) provide essential services to shelter residents, (5) rapidly re- house homeless individuals a nd fam ilies, and (6) prevent families/individuals from becoming homeless.
For more information and resources about ESG, go to the HUD Exchange website at HUDExchange.info
GRANT AMOUNTS
FY 2019 Allocation: $280 million
▪ States total: $139,063,295
▪ Urban Counties total: $36,269,433
▪ Metro Cities total: $104,107,272
▪ Territories total: $560,000
Eligible Recipients (366)
▪ States: 51 (including Puerto Rico)
▪ Metropolitan Cities: 196
▪ Urban Counties: 115
▪ U.S. Territories: 4
RECIPIENTS & SUBRECIPIENTS
Eligible recipients generally consist of states, metropolitan cities, urban counties, and territories, as defined in 24 CFR 576.2.
Each recipient must consult with the local Continuum(s) of Care operating within the jurisdiction in determining how to allocate ESG funds.
State recipients must subgrant all of their ESG funds
(except the amount for its administrative costs and HMIS costs, if applicable ) to units of general purpose local government and/or private nonprofit organizations.
Metropolitan cities, urban counties and territories may subgrant ESG funds to private nonprofit organizations.
Local governments (whether recipients or subrecipients) may also subgrant ESG funds to public housing agencies
and local redevelopment authorities.
CITATIONS
Statute: Stewart B. McKinney Homeless Assistance Act of 1987, Title IV, Subtitle B, as amended (42 U.S.C. 11371 et seq.) Regulations: 24 CFR Part 576.
ELIGIBLE PROGRAM COMPONENTS
1. Street Outreach
Essential Services necessary to reach out to unsheltered homeless individuals and families, connect them with
emergency shelter, housing, or critical services, and provide them with urgent, non -facility-based care. Component
services generally consist of engagement, case
management, emergency health and mental health services, and transportation. For specific requirements and eligible costs, see 24 CFR 576.101.
2. Emergency Shelter
Renovation of a building to serve as an emergency shelter.
Site must serve homeless persons for at least 3 or 10 years, depending on the cost and type of renovation (major
rehabilitation, conversion, or other renovation) . Note:
Property acquisition and new construction are ineligible.
Essential Services for individuals and families in emergency shelter. Component services generally consist of case
management, child care, education services, employment assistance and job training, outpatient health services, legal services, life skills training, mental hea lth services, substance abuse treatment services, and transportation.
Shelter Operations, including maintenance, rent, security, fuel, equipment, insurance, utilities, and furnishings.
Relocation assistance for persons displaced by a project assisted with ESG funds.
For specific requirements and eligible costs, see 24 CFR 576.102.
3. Homelessness Prevention
Housing relocation and stabilization services and/or short- and/or medium-term rental assistance necessary to prevent the individual or family fro m moving into an emergency shelter or another place described in paragraph (1) of the “homeless” definition in § 576.2.
Component services and assistance generally consist of
short-term and medium-term rental assistance, rental arrears, rental application fees, security deposits, advance payment of last month's rent, utility deposits and payments, moving costs, housing search and placement, housing stability case management, mediati on, legal services, and credit repair.
For specific requirements and el igible costs, see 24 CFR 576.103, 576.105, and 576.106.
4. Rapid Re-Housing
Housing relocation and stabilization services and short- and/or medium-term rental assistance as necessary to help ATTACHMENT 1 - 1
individuals or families living in an emergency shelter or other place described in paragraph ( 1) of the “homeless” definition move as quickly as possible into permanent
housing and achieve stability in that housing.
Component services and assist ance generally consist of short-term and medium -term rental assistance, rental
arrears, rental application fees, security deposits, advance payment of last month's rent, utility deposits and payments, moving costs, housing search and placement, housing
stability case management, mediation, legal services, and credit repair. For specific requirements and el igible costs, see 24 CFR 576.104, 576.105, and 576.106.
5. HMIS
Grant funds may be used for certain Homeless Management Information System (HMIS) and c omparable database
costs, as specified at 24 CFR 576.107.
Administration
Up to 7.5% of a recipient’s fiscal year grant can be used for administrative activities, such as general management,
oversight, coordination, and reporting on the program. State recipients must share administrative funds with their local government subrecipients and may share administrative
funds with their nonprofit subrecipients. For specific requirements and eligible costs, see 24 CFR 576.108.
ALLOCATION FORMULA
HUD will set aside for allocation to the territories up to
0.2%, but not less than 0.1 %, of the total fiscal year appropriation. The remainder will be allocated to States, metropolitan cities, and urban counties. The percentage allocated to each State, metropolitan city, and urban county will equal the percentage of the total amount available under section 106 of the Housing and Community Development
Act of 1974 for the prior fiscal year that was allocated to the State, metropolitan city or urban county. If an allocation to a metropolitan city or urban county would be less than
0.05% of the total fiscal year appropriation for ESG, the amount is added to the allocation of the State in which the city or county is located. For more on the ESG formula, see 24 CFR 576.3.
MATCH
Metropolitan city and urban county recipients must
match grant funds with an equal amount of contributions, which may include cash, donated buildings or materials, and volunteer services.
States must match all but $100,000 of their awards, but must pass on the benefits of that $100,000 exception to their subrecipients that are least capable of providing matching amounts.
Territories are exempt from the match requirement.
For the specific match requirements, see 24 CFR 576.201.
OBLIGATION & EXPENDITURE DEADLINES
Metropolitan cities, urban counties and territories must obligate all funds, except funds for administrative costs, within 180 days after HUD signs the grant agreement.
States must obligate all funds, except funds for
administrative costs, within 60 days after HUD signs the grant agreement. Within 120 days after the State obligates funds to a local government, the local government must obligate all its funds.
All grant funds must be expended within 24 months after HUD signs the grant agreement with the recipient.
Further obligation and expenditure requirements are
specified at 24 CFR 576.203.
CONSOLIDATED PLAN
Eligible recipients apply through the Consolidated Planning process, which requires jurisdictions to assess homeless assistance and housing needs, examine available resources, set 3-5 year strategies , and develop annual action plans.
Plan preparation must include citizen participation and consultation with the local Continuum(s) of Care and other organizations. Each jurisdiction should submit its
Consolidated Plan to HUD at least 45 days before the
jurisdiction’s program year begins as provided under 24 CFR Part 91. For specific planning and submission
requirements, see 24 CFR part 91 and 576.200.
REPORTS
Annual performance reports must be submitted in
accordance with 24 CFR 91.520 and are due 90 days after the jurisdiction’s program year ends. Recipients also have other reporting requirements under 24 CFR 576.500(aa).
ATTACHMENT 1 - 2
ATTACHMENT 2 - 1