RESOLUTION NO.
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA AUTHORIZING THE ACCEPTANCE OF RE-
ALLOCATED FUNDS FROM THE UNITED STATES
DEPARTMENT OF TREASURY USING FUNDING FROM THE
CONSOLIDATED APPROPRIATIONS ACT, 2021 AND/OR
THE AMERICAN RESCUE PLAN ACT OF 2021 AND
APPROPRIATING FUNDS FOR AN EMERGENCY RENTAL
ASSISTANCE PROGRAM
WHEREAS, On December 27, 2020, the Consolidated Appropriations Act, 2021 (Pub.L .
No. 116-260) (the “Act”) was signed into law. Section 501 of Division N of the Act established the federal Emergency Rental Assistance Program (“ERA1”), and authorized the direct allocation of emergency rental assistance funds to states, units of local government, tribal communities, and territories. The ERA1 funds are intended to assist households that are unable to pay rent and utilities due to the COVID-19 pandemic; and
WHEREAS, On March 11, 2021, the American Rescue Plan Act of 2021 (Pub.L. No. 117- 2) (“ARPA”) was signed into law. Section 3201 of Subtitle B of Title III of ARPA established the federal Emergency Rental Assistance Program (“ERA2”), and authorized the direct allocation of funds to states, the District of Columbia, units of local government, territories, and high -need grantees. The ERA2 funds are intended to assist low -income households that have experienced financial hardship during or due to the COVID-19 pandemic, are unable to pay for rent and utilities, and are at risk of experiencing homelessness or housing instability; and WHEREAS, the ERA 1 and ERA2 assists low-income households that are unable to pay rent and utilities due to the COVID-19 pandemic; and
WHEREAS, the City of Chula Vista submitted an application to U.S. Department of Treasury “Treasury” and for ERA1 and ERA2 and supplemental funding; and WHEREAS, the Treasury allocations awarded to the City have been to date as follows as shown in Table I:
Table I
Funding Source ERA1 and ERA2 Federal Awards
CRF-0006 Federal (ERA1) $8,161,123.80
CRF-0008 Federal (ERA2) $9,662,343.90
WHEREAS, the Treasury awarded re -allocated funds to the City as follows as show in Table II below:
Table II
Funding Source ERA1 and ERA2 Federal Awards
CRF-0006 Federal (ERA1)
Supplemental Funding $409,925.36
CRF-0006 Federal (ERA1)
Supplemental Funding $1,045,985.28
WHEREAS, California Assembly Bill No. 832 (Chapter 27, Statutes of 2021) (“AB 832”) provides the legal basis for the State of California’s administration of its share of ERA1 and ERA2 funds (the “ State Rental Assistance Program,” “SRA,” or “ SRA Funds”). AB 832 amended Sections 50897, 50897.1, 50897.2, 50897.3, and 50897.4 of, and added Sections 50897.2.1 and 50897.3.1 to, the Health and Safety Code. Health and Safety Code section 50897.1, subdivision (a)(1) authorizes the Department of Housing and Community Development (the “Department”) to administer the SRA Funds in accordance with state and federal law; and WHEREAS, the Department allocations awarded to the City have been as follows:
Table III
Funding Source ERA1 and ERA2 Awards
CRF-0007 State (ERA1) $9,662,343.90
CRF-0010 State (ERA2) $7,600,103.26
CRF-0010 State (ERA2)-
Supplemental Funding $2,000,000.00
WHERERAS, the City of Chula Vista (“Entity”) is participating in the SRA under “Option B,” as that term is defined in subdivision (i) of Section 50897 of the Health and Safety Code; or is a federally recognized tribal government, consistent with the state’s implementation of Chapter 17 (commencing with Section 50897) of Division 31 of Part 2 of the Health and Safety Code; and WHEREAS, Entity applied to the U.S. Department of the Treasury (“ Treasury”) for a reallocation of ERA1 funds (the “ ERA1 Reallocation”) by submitting one or more appropriate requests for reallocated funds to Treasury’s portal (“Reallocation Request”); and WHEREAS, Entity will apply to the Treasury for a reallocation of ERA2 funds (the “ERA2 Reallocation”) once those reallocation moneys become available. The ERA1 Reallocation and the ERA2 Reallocation are also referred to herein, individually and collectively, as the “ ERA Reallocation(s);” and
WHEREAS, Entity desires to request and accept a temporary cashflow loan of funds from the Department, as authorized by California Senate Bill No. 115 (this amount, the “SRA Loan Award”), while it awaits the additional federal funding described above (ERA Reallocations); and WHEREAS, E ntity plans to administer any ERA Reallocation in accordance with the applicable federal law (the Act and/or ARPA); the applicable Treasury interpretive guidance; and all such requirements as may be subsequently amended and applicable; and WHEREAS, Entity acknowledges that every SRA Loan Award is subject to and shall be administered in accordance with the state’s requirements for Round 2 of the State Rental Assistance Program, including, without limitation, the applicable requirements of AB 832; SB 115; the Department’s State Rental Assistance Program Guidelines, dated September 27, 2021; and all such requirements as may be subsequently amend ed (collectively, the “ SRA Loan Award Requirements”); and
WHEREAS, Entity further acknowledges that every SRA Loan Award is subject to the terms and conditions of a Department-approved STD 213, Standard Agreement (“Standard Agreement”), all other documents required or deemed necessary or appropriate UNDER STATE OR FEDERAL LAW to disburse, evidence, and secure the SRA Loan Award, and all amendments thereto (collectively, the “SRA Loan Award Documents”); and
WHEREAS, Entity shall accept a n ERA Reallocation from the Treasury and these funds will be used to repay the SRA Loan Award per the terms and conditions of the SRA Loan Award Documents; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista that it ( 1) authorizes the acceptance of the ERA1 and ERA2 Treasury and the Department U.S.
Department of Treasury allocations and revised and restated above based on actual funding agreements; (2) acknowledges and ratifies the submission of the terms and use of funds by the City Manager; and (3) authorizes the revised appropriation of such funds in the City’s Housing Authority Fund in fiscal year 2021/2022 with expenditures made in accordance with the funding requirements, subject to modifications that may be necessary or appropriate to assure expenditure of all available funds in a qualified and timely manner.
NOW, THEREFORE, BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista (City referred to as “Entity”) that:
1. Entity is hereby authorized and directed to request and accept re-allocated funds from the Treasury in amount not to exceed $14,117,440.62. Such amount matches and includes the Reallocation Request submitted in January 2022 and any future Reallocation Requests needed to repay the Departments Loan Award.
2. Entity is hereby authorized and directed to assume responsibility for ensuring that the Departments SRA Loan Award is repaid using available Treasury funding.
3. Maria Kachadoorian, City Manager, or her designee is authorized to execute the Treasury Acceptance of Award Terms, and any and all documents requested by the Treasury including Reallocation Requests.
NOW, THEREFORE, BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista that it further authorizes the appropriation of such funds in the City’s Housing Authority Fund in fiscal year 202 1/2022 with expenditures made in accordance with terms and conditions described above including Table II.
Presented by Approved as to form by
TIFFANY ALLEN GLEN R. GOOGINS
Development Services Director City Attorney