EAST PALO ALTO
CITY COUNCIL
STAFF REPORT
DATE: July 5, 2022
TO: Honorable Mayor and Members of the City Council
VIA: Patrick Heisinger, Interim City Manager
BY: Karen Camacho, Housing Project Manager
Rachel Horst, Housing and Economic Development Manager
Natasha Raiburn, Rent Stabilization Program Administrator SUBJECT: Accept Report and Provide Direction on Anti-Displacement Services Recommendation
It is recommended that the City Council:
1. Accept a staff report on the City’s previous contract with multiple agencies to offer antidisplacement services funded by Measure O General Fund revenue;
2. Provide direction to staff regarding a future Request for Proposals (“RFP”) for the next round of anti-displacement services; and
3. Direct staff to issue an RFP to continue tenant assistance and anti-displacement services.
Alignment with City Council Strategic Plan
This recommendation is primarily aligned with:
Priority No. 2: Enhance Economic Vitality
Priority No. 5: Improve Communication and Enhance Community Engagement Priority No. 6: Create a Healthy and Safe Community
Background
On October 16, 2018, the City Council approved the City’s 5-Year Affordable Housing Strategy (“Strategy”), which sets ambitious goals to enable the City to increase the supply of housing between January 1, 2019 to December 31, 2023. A key item included in the Strategy was future issuance of a Request for Proposals (“RFP”) to identify an organization(s) to provide Measure O-related services to the Community, including increasing affordable housing and protecting residents from displacement and homelessness.
On July 16, 2019, the City Council directed staff to issue an RFP for Anti-Displacement Services and the City issued an RFP on August 7, 2019.1 The RFP specified the following service areas:
1. Legal Services (Eviction Defense and Other Support): Providing legal services for residents facing eviction or other related hardships that may lead to displacement. Services could include activities such as: legal intervention or mediation between landlords and tenants or interceding with the legal system to deal with appropriate expungement of criminal records that may impede an individual’s ability to secure a residence or job.
2. Tenant Advocacy and Education: Providing tenant education and advocacy services to renters. A key component of this work includes informing residents about activities happening in the community and empowering them to voice their concerns regarding activities/policies that may lead to further displacement.
3. Financial Assistance: Providing subsidies to residents experiencing homelessness or at risk of experiencing homelessness. Some examples of that assistance include:
• First month, last month, and deposit/rental assistance; • Short-term rental subsidies;
• Homelessness prevention subsidies;
• Moving or re-location assistance; and
• Furniture assistance for new move-ins.
Agreement with Measure O Contract Organizations
On October 4, 2019, Nuestra Casa, Youth United for Community Action (“YUCA”) and Community Legal Services in East Palo Alto (“CLSEPA”), collectively referred to as the “Measure O Contract organizations,” submitted a joint proposal for eviction defense and tenant education and outreach services. The Measure O Contract organizations confirmed they were not positioned to administer a comprehensive tenant financial assistance program. The City did not receive any other proposals
On February 18, 2020, the City Council adopted Resolution No. 17-2020, directing the City Manager to enter a one-year contract (“Measure O Contract”) for anti-displacement services with the Measure O Contract organizations for an amount not to exceed $279,088.2 Furthermore, the resolution authorized the City Manager to renew the contract for another year upon successful achievement of the first-year contract deliverables and subject to available funds. Over half of the funds ($163,088) came from General Fund (Measure O) revenues, with the remainder ($116,000) from Rent Stabilization Program (“RSP”) nonrecurring income from penalty fees paid for noncompliance with the Program’s registration requirements.
On March 4, 2020, California Governor Newsom declared a COVID-19 State of Emergency and on March 19, 2020, the State Public Health Official issued a Shelter in Place Order. During this time, many residents were financially impacted, intensifying the need for eviction 1 July 16, 2019 Council Meeting Staff Report:
http://eastpaloalto.iqm2.com/Citizens/Detail_Meeting.aspx?ID=1278. 2 February 18, 2021 Council Meeting Staff Report:
http://eastpaloalto.iqm2.com/Citizens/Detail_LegiFile.aspx?Frame=&MeetingID=1061&MediaPosition=&I D=1108&CssClass=
protection and rent relief.
On January 29, 2021, the State of California adopted Senate Bill 91 (“SB 91”). This law created a program for the administration of $2.6 billion that California would be receiving from the US Treasury under the US Coronavirus Response and Relief Supplemental Appropriations Act of 2021. Due to the need to assist the community residents with accessing SB 91 funds for rental assistance and to prevent the displacement that likely would be caused by the economic impact of COVID-19, staff contacted the Measure O Contract organizations to discuss their interests and capacity to amend the Measure O contract to add SB 91 outreach and education activities to the scope of the contract.
On March 16, 2021, the City Council adopted Resolution No. 34-2021,3 authorizing the City Manager to amend the Measure O Contract (“Amended Measure O Contract”) to add to the contract scope of work services related to landlord and tenant outreach and education regarding the rental relief fund program created by SB 91 and increasing the not-to-exceed amount to $339,088. This additional $60,000 was intended to cover any increased administrative costs incurred by the Measure O Contract organizations and was appropriated from the General Fund.
On July 1, 2021, the City executed the Amended Measure O Contract.
On January 18, 2022, through Resolution No. 02-2022, City Council clarified that the total amount of the Measure O Contract for the two-year term was $618,176. City Council also received an overview of the Measure O Contract accomplishments and activities.4 On March 31, 2022, the term of the Amended Measure O Contract concluded.
Background Summary:
Agreement with Measure O Contract Organizations
Date Resolution Description Amount Fund
August 7,
2019
N/A RFP Released N/A N/A
February
18, 2020
Resolution
No. 17-
2020
1-year contract for antidisplacement services with
Nuestra Casa, YUCA and CLSEPA,
from April 1, 2020 to March 31,
2021.
$279,088
($116,000
from RSP)
General
Fund +
RSP
March 16,
2021
Resolution
No. 34-
2021
Authorized City Manager to amend
the April 1, 2020 contract to add
services related to SB 91 rent
relief to scope of work. Increased
total from $279,088 to $339,088;
appropriated additional $60,000
from General Fund for any
+ $60K
Admin
Costs =
$339,088
for first
year
General
Fund
3 March 16, 2021 Council Meeting Staff Report:
http://eastpaloalto.iqm2.com/Citizens/Detail_LegiFile.aspx?Frame=&MeetingID=1359&MediaPosition=&I D=1620&CssClass=
4 January 18, 2022 City Council Staff Report:
http://eastpaloalto.iqm2.com/Citizens/Detail_LegiFile.aspx?Frame=&MeetingID=1471&MediaPosition=&I D=2032&CssClass=
additional admin costs. Extended
contract from April 1, 2021 to March
31, 2022.
January
18, 2022
Resolution
No. 02-22
Clarified that the total amount of the
Measure O Contract for the twoyear term is $618,176.
+ $279K
for 2nd yr
contract =
$618,176
total
General
Fund
Additional Investments in Anti-Displacement
On March 26, 2020, City Council issued Residential Moratorium Ordinance No. 01-2020 and provided $100,000 in rapid rehousing assistance to East Palo Alto tenants for COVID-19 related non-payment of rent, to be administered by Samaritan House. East Palo Alto residents were able to access these funds starting May 1, 2020.5
Expiration of Statewide Eviction Moratorium and Need for Eviction Prevention Applications for California’s COVID-19 Rent Relief Program, which provided assistance with rent payments or utility bills, were accepted from March 15, 2021 to March 31, 2022. At the application expiration date, Governor Newsom approved California Assembly Bill 2179,6 which extended protections to tenants from eviction if they had completed a rent relief application for COVID-19-related debt by March 31, 2022. Tenants who applied for rental relief by March 31, 2022 were protected from eviction while their application was pending, up through June 30, 2022. However, if a tenant failed to submit a rental relief application by the March 31, 2022 deadline, that tenant is not protected from eviction.
Starting June 1, 2022, tenants who have overdue rent or do not have an active application with California’s COVID-19 Rent Relief Program could start receiving Notices to Pay Rent or Quit, which may then lead to eviction proceedings if payment is not made. Notices to Pay Rent or Quit ask that tenants pay the rent or vacate the unit due to nonpayment of rent. If the tenant does not pay the due rent and does not vacate the unit, then the landlord may file for an unlawful detainer to begin the eviction proceedings in court. Landlords issue such notices to encourage tenants who have not paid in a timely manner to do so, and some tenants routinely wait for such notices.
As an example, on March 24, 2022, prior to the March 31 expiration of the CA Eviction Moratorium, Woodland Park Communities (“WPC”) issued sixty-eight (68) 3-Day Notices to Pay Rent or Quit. Of the 68, 49 tenants made a payment, 18 did not, and 1 moved out. WPC did not file any unlawful detainer actions based upon the March 3-Day Notices to Pay Rent or Quit.
On the final days leading to March 31, 2022, YUCA and Tenant Advisory Board members door knocked and gave tenants information about their rights, specifically focusing on the tenants 5 March 26, 2020 City Council Staff Report:
http://eastpaloalto.iqm2.com/Citizens/Detail_LegiFile.aspx?Frame=&MeetingID=1076&MediaPosition=&I D=1168&CssClass=. Note that a 12% administrative fee was deducted from the $100,000 grant, ensuring no less than 88% of the funds were used for direct services. 6 AB 2179: https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202120220AB2179 who received 3-Day Notices to Pay Rent or Quit from WPC.
Since the March 31, 2022 expiration of state-wide eviction protections, the RSP has received approximately 471 3-Day Notices to Pay Rent or Quit from landlords. The amount of rent due ranges from $2,000 to $4,000 per household on average. An overview of the number of 3-Day Notices to Pay Rent or Quit administered to rent-stabilized units is provided below. Please note that these estimates only capture units in the City’s Rent Stabilization Program, and do not include tenancies in single-family homes or other multiple-family dwellings. 3-Day Notices to Pay Rent or Quit
since Expiration of COVID-19 Eviction Moratorium
Non-WPC WPC Total
*March 0 68 68
April 33 0 33
May 10 78 88
**June 71 279 350
***Total 114 357 471
*68 3-Day Notices to Pay Rent or Quit were issued by WPC before expiration of the Eviction Moratorium on March 31, 2022. WPC is the largest landlord under the RSP, with approximately 1,847 units.
**Estimates as of June 28, 2022.
***Total does not count initial 68 3-Day Notices to Pay Rent or Quit sent by WPC in March and again in May.
Landlords have also begun eviction proceedings. An overview of the 3-Day Unlawful Detainer Notices7 administered to rent-stabilized units is below:
3-Day Unlawful Detainer Notices
since Expiration of COVID-19 Eviction Moratorium
Non-WPC WPC Total
March 0 0 0
April 0 1 1
May 2 0 2
*June 4 4 8
Total 6 5 11
Note: Estimates do not count units that are not under the City’s Rent Stabilization Program, including tenancies in single family homes and other multi-family dwellings. *Estimates as of June 28, 2022.
Given the number of notices already issued and the end of statewide assistance, it is anticipated there will be a greater need for anti-displacement services aimed at eviction prevention going forward throughout East Palo Alto.
The purpose of this staff report is to provide a summary report on the City’s Measure O Contract, and to obtain City Council direction to issue a new RFP to continue some of the activities under the Measure O Contract, while shaping a new contract tailored to meet the 7 3-Day Unlawful Detainer Notices are posted to make tenants aware of the eviction proceedings.
Tenants may file a response and if no response is filed, the landlord receives a faster judgement on the proceeding. Court attendance is required.
community’s present needs and to access remaining or new State COVID-19 recovery funds.
Analysis
Measure O Contract Accomplishments
The City of East Palo Alto and the Measure O Contract organizations have been able to effectively collaborate and quickly mobilize to support residents facing eviction and at risk of displacement.
Attachment 1 of this report provides an updated overview of the Measure O Contract accomplishments and activities directed to the realization of the two main goals of the agreement: 1) providing legal services and 2) advancing tenant advocacy and education to prevent displacement in the City.
New Measure O Request for Proposals
While the state-wide eviction moratorium has been lifted, East Palo Alto renters continue to face many of the same challenges as during the first two years of the COVID-19 pandemic, except that there are no longer protections from eviction due to nonpayment of rent. State laws also continue to change and cause uncertainty and confusion for many residents.
The following are the pressing community needs the Measure O Contract organizations and City staff have identified:
1. Legal Services (Eviction Defense and Other Support): Providing legal services for residents facing eviction or other related hardships that may lead to displacement. Services may include activities such as: legal intervention or mediation between landlords and tenants, creation of know-your-rights materials, presentations and legal workshops with information about tenants’ rights and most recent state or local laws.
2. Tenant Outreach: Door knocking, canvassing, pop-up clinics, and other in-person communication in English, Spanish, and if possible, Tongan and other languages as deemed necessary,8to inform tenants about their rights, resources available, and housing and development-related activities happening in the community.
3. Tenant Empowerment & Leadership Development: Providing East Palo Alto tenants and residents with intensive trainings in English and Spanish, and if possible, Tongan and other languages as deemed necessary, to empower them to engage civically and voice their opinions and concerns regarding activities/policies that may lead to displacement.
4. Case Management: Providing high touch/intensive case management support in English and Spanish to East Palo Alto residents at risk of displacement. Some examples of case management support include:
• Support producing documentation and completing rental assistance applications;
8 Note that the City does not yet have a language access plan, and services in different languages may differ by need.
• Referring residents to direct services agencies and organizations and following up;
• Supporting tenants who submitted applications for rental relief but still have missing paperwork needed to qualify.9
5. Direct Rental and Financial Assistance: Administering financial support to East Palo Alto residents experiencing homelessness or at risk of experiencing homelessness.
Some examples of direct rental and financial assistance include:
• COVID-19 rent or utility pay
• First month, last month, and deposit/rental assistance; • Short-term rental subsidies;
• Homelessness prevention subsidies;
• Moving or re-location assistance; and
• Furniture assistance for new move-ins.
Staff recommend the City Council authorize release of a new Measure O Request for Proposals (“RFP”) to provide these services. This RFP would follow the same general outline as the previous RFP from 2019 (Attachment 2), with updated Service Areas that reflect the current community needs noted above. Service providers responding to the RFP must submit a proposal that describes their experience, capacity, and ability to perform the services being sought by the City. Respondents may submit their qualifications to be considered for one or more of the defined service areas, which will be ranked/rated separately.
If Council wishes, the direct financial assistance services can be administered separately, as administered in 2020.
Proposals will be evaluated solely based on the Respondent’s ability and capacity to perform the work outlined in the RFP, in the areas detailed below.
Proposal Evaluation Rubric
RFP Content
Area Description Possible Points
Minimum
Threshold
Requirement
Respondents are expected to increase their capacity
by adding new staff positions or dedicating staff time
to implement the activities. Funding must be utilized to enhance the services provided.
Pass/Fail
Experience
Respondents shall demonstrate experience providing
the services outlined in the RFP for public
agencies, within a specific service area, with
successful results. For example, if a Respondent
applies for the Service Area for providing Case
Management, that organization must have
demonstrated experience managing similar programs.
50 9
In accordance with California Senate Bill 115, the remaining CA COVID-19 Rent Relief Program applications are still being reviewed and paid in the order in which they were received. See SB 115 at:
https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201920200SB115.
Capacity to
Perform
Respondents shall demonstrate the capacity to
provide the services described in the RFP and to
respond to the public, the City, and other stakeholders in a timely manner. Defined expectations for
timeliness of service delivery and stakeholder
communication should be outlined in the submittal.
40 Familiarity with
East Palo Alto
Respondents will be scored based on their knowledge
and experience working in the City of East Palo Alto
and/or with community groups that currently service
residents in the City.
10 Extra Credit Points Local organizations (from the City of East Palo Alto) will receive bonus points. 10
To be considered for more than one service area, the Respondent should submit a separate clearly delineated narrative for each area of interest. Each submittal will be reviewed and rated separately. Staff will return to City Council with recommendations based on the RFP responses received.
Next Steps
If directed, staff will draft and release an RFP with the following schedule:
Tentative Schedule
Task Date
Issue RFP July 15, 2022
RFP Due Date August 15, 2022
Internal Evaluation of Proposals Mid-August 2022
Interviews of Respondents Late August 2022
Return to City Council for Consideration of
Selected Contractors and Budget Allocation*
September 20, 2022
Execution of Contracts Late September 2022
*Finance would return to City Council the first week of September to discuss allocation of American Rescue Plan Act (ARPA) Funds.
Fiscal Impact
The total fiscal impact associated with the April 2020 to March 2022 Measure O Contract for the two years of the contract was $618,176, and the fiscal impact associated with the emergency rental assistance administered by Samaritan House in 2020 was $100,000.
Given this background and input from Measure O Contract organizations, staff is recommending that a total amount of $900,000 be appropriated over a two-year period, broken down into the following categories:
1) 1-year contract(s) of approximately $300,000 total the first year with an additional $300,000 the second year if contract(s) term is extended by the City Manager; 2) 1-year contract(s) of $300,000 total in Direct Rental and Financial Assistance, with a one-year extension if approved by the City Manager.
The City is projected to receive $600,000 in Measure O General Fund revenue in the coming fiscal year, based on FY21-22 figures. The City also has approximately $1.9 million in ARPA funds that have not yet been allocated. Finance will return to City Council the first week of September to discuss the allocation of the ARPA Funds. This discussion will help City Council determine what specific revenue source(s) to use upon consideration of selected contractors and budget allocation later in September.
Public Notice
The public was provided notice by making the agenda and report available on the City’s website and on a bulletin board located at City Hall: 2415 University Avenue, East Palo Alto.
Environmental
The action being considered does not constitute a “Project” within the meaning of the California Environmental Quality Act (CEQA), pursuant to CEQA Guideline section 15378 (b)(5), in that it is a government administrative activity that will not result in direct or indirect changes in the environment.
Attachments
1. Final Report - Measure O Contract Accomplishments and Activities
2. Anti-Displacement Services Request for Proposals for 2020-2022