EAST PALO ALTO
CITY COUNCIL
STAFF REPORT
DATE: November 1, 2022
TO: Honorable Mayor and Members of the City Council
VIA: Patrick Heisinger, Interim City Manager
BY: Natasha Raiburn, Rent Stabilization Program Administrator Karen Camacho, Housing Project Manager
Hansom Hom, Deputy Manager, Special Projects
SUBJECT: Approval of Agreements for Anti-Displacement Services Recommendation
Adopt a resolution:
1. Authorizing the City Manager to enter into two two-year agreements for antidisplacement services, in a form approved by the City Attorney, with Community Legal Services in East Palo Alto (CLSEPA) and Nuestra Casa for an amount not to exceed $426,788 ($213,394 each year) and with Youth United for Community Action (YUCA) for an amount not to exceed $133,196 ($66,598 each year); and;
2. Appropriating a total amount not exceeding $280,000 in FY 2022-23 to cover the first year of the two-year agreements for anti-displacement services by allocating $116,000 from the Rent Stabilization Program Fund for eviction defense services to be provided by CLSEPA; and $164,000 from the General Fund (Measure O) for other services to be provided by CLSEPA, Nuestra Casa, and YUCA. Funds for the second year of the agreements will be included in the FY2023-24 Rent Stabilization Program and General Fund budgets.
Alignment with City Council Strategic Plan
This recommendation is primarily aligned with:
Priority No.2: Enhance Economic Vitality
Priority No 3: Increase Organizational Effectiveness and Efficiency Background
On October 16, 2018, the City Council approved the City’s five-year Affordable Housing Strategy (Strategy). A key item included in the Strategy was issuance of a Request for Proposals (RFP) to identify an organization(s) using General Funds (from Measure O revenue) to provide anti-displacement services for renters in the community. Measure O is a general tax with the objective of funding affordable housing, anti-displacement, and homelessness activities, and the generated revenue is included in the General Fund.
On February 18, 2020, the City Council executed an agreement for anti-displacement services with Community Legal Services in East Palo Alto (CLSEPA), Nuestra Casa, and Youth United for Community Action (YUCA) for legal services (eviction defense and other support), tenant advocacy and education, and financial assistance. The total contract amount was $279,088, which included appropriating $116,000 from the Rent Stabilization Program Fund for eviction defense services in the first year of the agreement.
On July 5, 2022, the City Council received a staff report that summarized the activities and accomplishments of the providing legal services and tenant advocacy and education to prevent displacement during the two-year period from April 1, 2020 to March 31, 2022.1 During this period, the agreements with the service providers were amended to include landlord and tenant outreach and education related to the State’s Rent Relief Program which was created through Senate Bill 91 (“SB 91”) to address the economic impacts of COVID-19. SB 91 funds are no longer available and the service providers have fully expended the contract amounts.
Prior to developing a request for proposals (RFP) for continuing anti-displacement services, staff met with the three service providers to evaluate past accomplishments and to identify future community needs. Desired anti-displacement needs have been grouped into five categories: 1) legal services; 2) tenant outreach; 3) tenant empowerment and leadership development; 4) case management; and 5) direct rental and financial assistance.
On July 5, 2022, staff outlined to the City Council a proposal to continue providing communitybased anti-displacement services, and the City Council directed staff to issue an RFP for AntiDisplacement Services with direction to ensure accountability by defining clear deliverables, performance metrics, regular reporting requirements, and staffing plans. The City issued the RFP on August 1, 2022, with the following requested services based on the identified community needs:
1. Legal Services (Eviction Defense and Other Support): Provide legal services for residents facing eviction or other related hardships that may lead to displacement from East Palo Alto. Services may include activities such as:
a. Housing intakes and legal representation;
b. Legal intervention or mediation between landlords and tenants; c. Creation of know-your rights materials, presentations and legal workshops with information about tenants’ rights and most recent state or local laws; and
d. 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 Outreach: Provide rapid tenant outreach, which can include activities such as:
a. Door knocking;
b. Canvassing;
c. Pop-up clinics;
d. Mailers and postcards;
e. Phone calls; and
f. Communications in English, Spanish, and if possible, other language(s) as determined necessary, to provide timely information to tenants about their rights, resources available, and housing and development-related activities happening in the community.
3. Tenant Empowerment and Leadership Development: Provide intensive trainings in English and Spanish, and if possible, other language(s) as determined necessary, to empower tenants to engage civically and voice their opinions and concerns regarding activities/policies that may help prevent housing displacement. A key component of this work is to provide adequate information, leadership development, and “train-the-trainer” workshops.
4. Case Management: Provide high-touch and intensive case management support in English and Spanish, and if possible other language(s) as determined necessary, to East Palo Alto residents at risk of displacement. Examples of case management support include:
a. Producing documentation and completing rental assistance applications; b. Referring residents to service agencies and organizations; and c. Following up with residents who submitted assistance applications.
Additionally, the RFP invited proposals from organizations with experience to provide the following services:
5. Direct Rental and Financial Assistance: Work with City staff to develop and administer a rent relief program with funds available from the City or other sources. Respondents were requested to highlight how they will target outreach to residents who may benefit from these services, how they will reduce barriers to accessing the funds, and how they will rapidly respond to rental and financial assistance. Examples of direct rental and financial assistance include:
a. Rent or utility payments;
b. First month, last month, and deposit/rental assistance; c. Short-term rental subsidies;
d. Homelessness prevention subsidies;
e. Moving or relocation assistance;
f. Furniture assistance for new move-ins; and
g. Shadow debt payment.
On August 15, 2022, staff issued an addendum to the RFP responding to specific inquiries that the City received about the RFP issued on August 1, 2022.
On August 26, 2022, CLSEPA and Nuestra Casa submitted a joint proposal, and YUCA submitted a separate proposal (collectively referred to as "Respondents"). The City did not receive any other proposals. In addition, the City did not receive any proposals for Direct Rental and Financial Assistance pertaining to administering a rent relief fund program.
On September 15, 2022, City staff interviewed CLSEPA and Nuestra Casa to discuss and seek clarification on their joint proposal, reviewing services and cost structure. Respondents also submitted an addendum responding to staff’s questions about their proposal. On September 23, 2022, City staff interviewed YUCA to discuss and seek clarification on their proposal. City staff took the discussions with Respondents into account when drafting the scope of work for each Respondent.
Rent Stabilization Fund
On October 12, 2022, the Rent Stabilization Board, when considering the adoption of the Rent Stabilization Program’s Annual Fee for the 2022-2023 Program Year, received an update of the current Program’s fund balance; and the Board expressed its support for staff’s recommendation to use the monies collected for penalty fees to cover the cost of eviction defense services in the City. Currently, the Rent Stabilization Program’s Fund’s balance includes about $314,000 in nonrecurring income from penalty fees paid for noncompliance with the Program’s registration requirements that the Program has collected during the last four fiscal years.
The stated purposes of the City’s Rent Stabilization Ordinances of 1988, which applies to mobile home park tenancies, and of the 2010 Ordinance, which applies to residential dwelling units, are to protect residential tenants in the City from unreasonable rent increases, to discourage speculation in rental property, to protect tenants from arbitrary, discriminatory or retaliatory evictions, and to assure landlords the right to a fair return. Protecting tenants from improper evictions is a stated purpose. The Council may use penalty fees to fund activities that further the purposes of the Ordinances such as providing eviction defense services.
Analysis
Description of Scope & Cost of Services
Staff received two proposals in response to the RFP:
· A joint proposal from CLSEPA and Nuestra Casa for legal services, tenant outreach, and case management services (RFP items 1, 2, and 4); and · A proposal from YUCA for primarily tenant empowerment and leadership development services (RFP Item 3).
The Respondents are the same three community organizations that provided a wide spectrum of anti-displacement services to the City during the previous contract period. They have a long history of serving residents in East Palo Alto and have expressed a strong interest in continuing to offer these services to the community.
Respondents were presented with an updated scope of work on October 18, 2022 that provided a comprehensive and detailed description of measurable activities and deliverables for each Respondent (Attachment 2 for CLSEPA/Nuestra Casa and Attachment 3 for YUCA).
Respondents also received a revised cost structure of their proposals with revisions to their activities and deliverables. In the updated scope of work provided to Respondents, City staff delineated the case management and outreach services each Respondent will be responsible for during the contract year(s). All three Respondents would collaborate on public outreach to inform the community about their respective program services and activities.
CLSEPA/Nuestra Casa Proposal
The joint CLSEPA/Nuestra Case proposal totals $213,394 for year one of the agreement, with $150,000 allocated to CLSEPA for legal services and $63,394 to Nuestra Casa for tenant outreach and case management services. The same amount is proposed for year two of the agreement, but staff would evaluate the outcomes after year one to determine if adjustments to the scope and cost of services are advisable.
CLSEPA proposes to provide legal services to 110 East Palo Alto residents throughout the contract year with the goal of having 70% of residents who seek eviction prevention services remain in their current homes. CLSEPA will host six legal workshops throughout the contract year, and educational material will be updated and distributed. Several CLSEPA attorneys will be assigned to provide legal services.
Services provided by Nuestra Casa will include:
1. Co-hosting legal workshops with CLSEPA;
2. Providing case management services to 300 unduplicated households by counseling and referring households to available services, including assisting with rent relief applications;
3. Developing and distributing 1,500 informational flyers about housing laws, tenants’ rights, and resources;
4. Preparing an extensive resource guide in English and Spanish listing services provided by various agencies in East Palo Alto and San Mateo County; and
5. Conducting marketing to publicize the services of CLSEPA and Nuestra Casa to East Palo Alto residents.
Staffing will include a Housing Coordinator to coordinate the program and a Case Manager with social work experience.
YUCA Proposal
The proposal from YUCA totals $66,598 for year one of the agreement. The same amount is proposed for year two of the agreement but staff would evaluate the outcomes after the first year to determine if adjustments to the scope of services and costs are advisable.
The scope of services include:
1. Hosting at least six community “Know Your Rights” workshops delivered in a minimum English and Spanish;
2. Providing tenant leadership development by convening a tenant advisory board and hosting at least 11 meetings led by YUCA’s Housing Organizer;
3. Providing tenant education to at least 150 residents via one-on-one interactions such as door-to-door outreach, farmer’s markets, and community events; and
4. Working with CLSEPA to create/update educational materials and literature in English and Spanish to disseminate during community-wide outreach efforts.
Staff is suggesting a two-year agreement with each of the Respondents given the satisfactory services that these organizations have provided to East Palo Alto residents for many years.
Both agreements will require Respondents to submit quarterly progress reports to the City as well as a midterm and annual performance reports. If the agreement is extended for a second year, Respondents will be required to provide similar services in the second year, which may be adjusted by staff after evaluating the final report. The quarterly reports will track the measurable outcomes that have been communicated to the Respondents. These reports will be used to ensure that Respondents will maintain on track in achieving the defined objectives and scope of services during the reporting year (Attachment 4).
Costs Summary
Contract Year 1 Amount Year 2 Amount Total 2-Year Amount Past
Contract
$163K (Measure O Funds) $163K (Measure O Funds) $326K (Measure O Funds) $116K (Rent Stabilization
Funds)
$116K (Rent Stabilization
Funds)
$232K (Rent Stabilization Funds)
$60K (Additional general funds
for administrative cost due to
SB91)
$60K (Additional general funds for
administrative cost due to SB91)
$279K (Combined Total) $339K (Combined Total) $618K (Combined Total Over the 2 years)
Year 1 Amount Year 2 Amount Total 2-Year Amount
New
Contract
$164K (Measure O Funds) $164K (Measure O Funds) $328K (Measure O Funds) $116K (Rent Stabilization
Funds)
$116K (Rent Stabilization
Funds)
$232K (Rent Stabilization Funds)
$280K (Combined Total) $280K (Combined Total) $560K (Anticipated Combined Total Over the 2 years)
Rent Relief Program
As mentioned above, staff did not receive a proposal to provide Direct Rental and Financial Services, which was to administer a possible rent relief program. Staff believes that while the Respondents will assist tenants in applying for rent relief and related financial assistance, providers are hesitant or do not have the staff capacity to directly administer funds. If the City Council would like to continue to pursue the feasibility of establishing this program, , staff could further explore this potential activity.
Recommendation
Staff recommends that the City Council: approve the scope of services for anti-displacement services (Attachments 2 and Attachment 3) and authorize the City Manager to enter into twoyear agreements, in a form approved by the City Attorney, with CLSEPA and Nuestra Casa for an amount not to exceed $426,788 (213,394 each year) and with YUCA for an amount not to exceed $133,196 ($66,598 each year.). This funding amount is similar to the amount allocated in Fiscal Years 2020-2021 and FY 2021-2022. Through the required quarterly progress reports, City staff will monitor the delivery of services to confirm conformance with the terms and performance metrics in the agreements. The City Council will be provided a copy of the annual performance report at the end of the first year, and Council approval would be required for any significant modifications to the scope of services or contract costs for the second year of the agreements.
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)(3), and (b)(4).
Fiscal Impact
Staff recommends appropriating $116,000 for anti-displacement services from the Rent Stabilization Program (RSP) Fund and $164,000 from the General Fund Reserve of FY2022- 23 Budget. Funds for the second year of the agreements will be discussed in the future FY 2023-24 budget development. The allocation from the RSP Fund would come from accumulated nonrecurring income from penalty fees paid for noncompliance with the Rent Stabilization Program’s registration requirements. The RSP funds would be earmarked for eviction defense services and sufficient funds are currently available to cover the proposed appropriation. The General Fund includes revenue from Measure O, which is a general tax with advisory language to fund affordable housing, anti-displacements, and homelessness programs and activities.
Public Notice
The public was provided notice of this agenda item by posting the City Council agenda on the City’s official bulletin board outside City Hall and making the agenda and report available at the City’s website and at the San Mateo County Library located at 2415 University Avenue, East Palo Alto.
Next Steps
Staff expects to have the agreements that are discussed in this staff report executed in midNovember with services to commence immediately thereafter. Further, if desired by the Council, staff will continue to work with the contracted parties to identify an organization that might be able to manage the distribution of financial assistance that was requested as part of the original RFP.
Attachments
A. Attachment 1 Anti-Displacement Resolution Final Draft B. Attachment 2 Scope of Services CLSEPA & Nuestra Casa goals C. Attachment 3 Scope of Services YUCA goals
D. Attachment 4 CLSEPA and Nuestra Casa Quarterly Report E. Attachment 5 YUCA Quarterly Report