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January 23, 2024
ITEM TITLE
Fund Appropriation: Appropriation of Successor Housing Agency Funds for the Homelessness Prevention Program and Development of a Landlord Incentive Program Report Number: 24-0029
Location: No specific geographic location
Department: Housing and Homeless Services
G.C. § 84308: No
Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines. Therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.
Recommended Action
City Council and Housing Authority adopt a resolution authorizing and appropriating the use of $100,000 for the Homelessness Prevention Program and $300,000 for a new Landlord Incentive Program using Successor Housing Agency Funds, and authorizing the City Manager/Housing Authority Director or designee to execute documents consistent with the proposed activities. (4/5 Vote Required)
SUMMARY
In F iscal Year 20 23-24 the Housing and Homeless Services Department implemented a homeless ness prevention program which allows the city to assist Chula Vista residents on the verge of eviction by paying up to six months of missed rent and late fees. The Department also administers a rental assistance program which provides low -income households with affordable housing opportunities; however, staff have encountered challenges in identifying housing, particularly for unsheltered individuals working with the city towards self-sufficiency, some of which can be addressed with a landlord incentive program.
This action requests approval to allocate additional rental arrears funds to continue assisting hou seholds facing housing insecurity as well as the creation of an incentive program to better serve residents in need of affordable housing options.
ENVIRONMENTAL REVIEW
The Director of Development Services has reviewed the proposed activity for compliance with the California Environmental Quality Act (“CEQA”) and has determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines because it will not result in a physical change in the environment.
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Therefore, pursua nt to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. Thus, no environmental review is required.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
The Housing and Homeless Advisory Commission will be provided an update on the proposed programs at their next meeting.
DISCUSSION
Homelessness Prevention Program
In June of 2023 the Housing and Homeless Services Department implemented a Homelessness Prevention Program which assists clients on the verge of eviction and has assisted 15 households to date. This program enables the City of Chula Vista to pay up to six months of missed rent and late fees to avoid eviction and potential homelessness. Keeping households in place has a direct impact on the health of the community as well as on the individual. Having an eviction on their rental history can lead to housing instability, barriers, and other negative impacts.
There are many reasons a household can fall behind on rent that are unpredictable and unmanageable. For example, approximately 64% of the clients assisted thus far have had a sudden medical issue or condition that prevented them from working for weeks at a time, putting them in a complicated situation and being unable to pay rent. Most households assisted are considered low-income, earning less than 50% of the Area Median Income, or $ 74,450 for a family of f ive. Any loss of income, no matter how temporary, can be a substantial setback for a household that depends on every paycheck.
Many individuals experiencing homel essness came to be in that situation because of an eviction. Once a household has gone through the eviction process, they may have trouble finding a future landlord willing to accept them due to their rental history. This is the beginning of a harsh cycle of applying to units and being repeatedly denied, further preventing the household from stabilizing and returning to self-sufficiency. In the ongoing battle against homelessness, the City aims to provide programs designed to protect households from common factors contributing to homelessness. This program directly addresses the issue by stepping in on behalf of the tenant to prevent eviction and instability. With an allocation of $100,000 the City anticipates being able to assist up to 15 additional households with rental arrears to maintain their current housing.
Landlord Incentive Program
The City of Chula Vista is working to address the issues surrounding homelessness and give unhoused clients a better opportunity to succeed and become self -sufficient. By offering a variety of programs, as well as partnering with other agencies and service providers, the City seeks to better serve residents and provide all of the resources available. In this effort, staff has identified several barriers to housing previously unhoused clients, including lack of rental history and credit, which may be resolved by offering a Landlord Incentive Program.
The incentive program would include the following:
a leasing bonus of $2,500 to a landlord willing to accept a tenant who was previously unhoused; security deposit totaling 2 months’ rent;
payment of application and credit check fees up to $50; and/or a contingency fund totaling up to $5,000 per unit to cover any damage caused.
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This program assists both parties in the rental market as it helps secure a unit for an individual who may not be otherwise accepted, and it assures landlords when considering housing the City’s clients.
DECISION-MAKER CONFLICT
Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific and consequently, the real property holdings of the City Council members do not create a disqualifying real property-related financial conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.).
Staff is not independently aware and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision-maker conflict of interest in this matter.
CURRENT-YEAR FISCAL IMPACT
There is no current year fiscal impact to the City's General Fund as all costs associated with the program are covered by Successor Housing Agency Funds . This action will allocate surplus funds from the Successor Housing Agency in the amount of $400,000, $300,000 for a Landlord Incentive Program and $100,000 for a Homelessness Prevention Program for the remainder of the fiscal year.
ONGOING FISCAL IMPACT
There is no ongoing fiscal impact to the City's General Fund as all costs associated with the program are covered by available funds from Successor Housing Agency Funds.
ATTACHMENTS
None.
Staff Contact: Stacey Kurz, Director of Housing and Homeless Services Alekzander De La Cruz, Senior Fiscal Office Specialist