DATE: April 7, 2025
TO: Mayor and Members of the City Council
VIA: Stefan Chatwin, City Manager
Marlene Subhashini, Assistant City Manager
FROM: Sofia Mangalam, Community Development Director
Nori Jabba, Housing Coordinator
DEPARTMENT: Community Development
SUBJECT: APPROPRIATION OF FUNDS AND AUTHORIZATION FOR THE
CITY MANAGER TO ACCEPT FUNDS FOR THE MEASURE K
EMERGENCY RENT RELIEF PILOT PROGRAM
RECOMMENDATION
It is recommended that the City Council approve attached Resolution (Attachment 1) authorizing: (1) supplemental appropriation of $35,000 to Account 124-0832-463-4297 for the Measure K Emergency Rent Relief Pilot Program; (2) the City Manager to accept funds for reimbursement of program expenditures from the County of San Mateo; and (3) find the request exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA guideline section 15061(B)(3).
EXECUTIVE SUMMARY
On August 2, 2024, staff applied for the County of San Mateo Measure K Notice of Funding Opportunity (NOFO) in the amount of $35,000 for the Foster City Emergency Rental Assistance Pilot Program for below-market-rate (BMR) renters. On January 14, 2025, the County of San Mateo Board of Supervisors approved Resolution No. 080855 (Attachment 2) authorizing a one-time grant of District-Discretionary Measure K funds, not to exceed $35,000, to the City of Foster City Emergency Rental Assistance Pilot Program and authorizing the County to execute the grant agreement. Funding is available until December 31, 2025.
Staff recommends that the City Council approve a one-time supplemental budget appropriation of $35,000 to Account 124-0832-463-4297 for the Measure K Emergency
Rent Relief Pilot Program and authorize the City Manager to accept funds for reimbursement of program expenditures from the County of San Mateo.
BACKGROUND/ANALYSIS
The Housing Element is an integral part of the Foster City General Plan that identifies the community’s housing needs, states the community’s goals and objectives regarding housing production, rehabilitation, preservation, and conservation to meet those needs, and defines the policies and programs. The chapter containing Housing Goals, Policies, and Programs forms the housing policy roadmap for the city and describes the implementation measures that the city needs to undertake in the planning period 2023-
31. The pilot program supports the 2023-2031 Housing Element, Policy H-C-2, Protection of the Rental Housing Stock: Promote the retention of rental units and encourage rental subsidy programs that can be applied to existing housing.
Measure K
In 2012, the San Mateo County Board of Supervisors placed the original (Measure A) half-cent sales tax on the November ballot as a means of raising local funds for local needs. The half-cent sales tax was listed as Measure A on the November 2012 ballot.
The tax measure passed with 65.4 percent votes. Deciding to build on the progress being made with the local funds, the Board of Supervisors placed a 20-year extension of the sales tax on the November 2016 ballot, designated as Measure K. Measure K was overwhelmingly approved with 70.37 percent of the vote.
Measure K provides limited-term funding to meet critical service needs, address service gaps, or save money by improving performance. At a public meeting on October 17, 2023, the County Board of Supervisors approved the priority funding areas of:
•Children, Families, and Seniors
•Housing and Homelessness
•Emergency Preparedness
For FY 2024-25, the County Board of Supervisors allocated $4 million to discretionary grant funding to cover funding gaps in affected County services. The Measure K Notice of Funding Opportunity (NOFO) applications were released with a due date of August 2, 2024. Staff applied for Measure K funds in the amount of $35,000 for the Foster City Emergency Rental Assistance Pilot Program for BMR renters.
Subsequently, on January 14, 2025, the County Board of Supervisors determined that Foster City’s application for Measure K funds is consistent with the criteria for district-discretionary Measure K funds approved by the Board in December 2018. At the meeting, the Board of Supervisors authorized a one-time grant of grant district-discretionary Measure K funds, not to exceed $35,000, to the City of Foster City for the Foster City Emergency Rental Assistance Pilot Program, and authorized the County Executive, or designee, to execute the grant agreement (Attachment 2 for Resolution and Attachment 3 for grant agreement).
The award included $30,000 for grants to landlords on behalf of eligible applicants and $5,000 to process applications and administer the program. At the time, the City was to partner with Samaritan House to help administer the program and ensure that applicants have access to additional resources and support services from Samaritan House.
However, Samaritan House later determined that they could not administer the program without an amendment to expand the program to all Foster City renters rather than those in BMR housing to align with their other Measure K funding programs.
On March 17, 2025, the County executed an amendment to the agreement (see Attachment 4 for amendment to agreement) at the City’s request to extend the funding period from July 31, 2025, to December 31, 2025, and to permit the City of Foster City (City staff) to administer the program in-house. A ministerial amendment was authorized by the County Attorney to extend the funding period by six (6) months and to allow the City staff to administer the program (Attachment 4).
Foster City Needs
The Community Development Department frequently receives inquiries from residents who need financial assistance to pay rent and are often on the verge of losing their housing. Currently, these residents are referred to Samaritan House for rental and relocation assistance services. Samaritan House offers funding for those that meet their eligibility requirements through countywide Measure K funding, but funds are limited due to a high need for emergency rental assistance across the County. Recognizing this need, staff applied for Measure K funds in the amount of $35,000 to establish an Emergency Rental Assistance Pilot Program to complement the existing funding sources provided by Samaritan House and to provide dedicated financial support to low-income residents living in BMR units in Foster City that may be facing displacement.
Staff also conducted research from other jurisdictions with similar programs to understand the provisions of the program (Attachment 5).
Foster City BMR Program
The City of Foster City currently has 426 BMR rental units located in the properties as shown in Table 1.
Table 1, BMR Properties and Units
# Property BMR Units
1 The Plaza 60
2 100 Grand 33
3 The Triton 48
4 Marlin Cove 84
5 Miramar 48
6 Alma Point 65
7 Metro Center 60
8 The Pilgrim Workforce Housing 22 (14 BMR units and 8 workforce units)
9 Existing Unit Purchase Program 6 units
Pilot Program Funding
The Measure K provides $30,000 in grants to landlords for rent, utilities, including unpaid balance, or deposit assistance for BMR tenants and $5,000 for administration, which includes development of an application and evaluation materials and forms, promotion of the program, responding to public inquiries, application review, distribution of funds, notification to applicants and landlords, and reporting and submittal of two (2) reimbursement requests.
The program will offer one-time grants of up to $3,000 directly to landlords of eligible residents in lieu of residents’ rent payments. Payment directly to landlords is standard practice for rental assistance programs to ensure that payments are used for rent relief.
Program eligibility will be limited to seniors aged 62 or over, individuals living with disabilities, veterans, and families with children to comply with Measure K funding requirements.
The program will be administered through the City’s Affordable Housing Fund, Fund 124.
Currently, Fund 124 has an available fund balance of approximately $732,641 (as of 02/28/2025), which is sufficient to absorb the requested appropriation.
Outline of the Pilot Program:
1. Eligibility criteria
To qualify, applicants must demonstrate that their income is less than 50% of area median income (AMI), that they live in BMR housing, and that they are at risk of losing housing in the next three (3) months due to hardship as defined below. •To demonstrate the risk of losing housing in the next three (3) months, applicants will provide evidence of hardship causing loss or reduction of income combined with financial assets (e.g. savings, checking account balance) insufficient to cover rent payments for the next three (3) months. •If the applicant has experienced hardship, they will need to explain the hardship in the application and provide documentation as evidence. Hardship is defined as a recent medical condition, illness, or medical emergency of a household member resulting in temporary or permanent loss of or reduction in income; recent loss of job or income resulting in the inability to pay rent on time; or an emergency that precludes the tenant from paying rent on time.
2. Pilot Program Goal
The goal is to provide support to ten (10) or more BMR households in 2025. In early fall 2025, if staff determines that it appears unlikely that the City will reach the goal, staff will request an additional extension of the funding deadline and/or expansion of the program to market rate renters or an ability to increase the award amount to those experiencing extreme hardship (via a contract addendum with the County).
3. Distribution of Funding and Reimbursement of Funds
City Staff will evaluate applications and determine eligibility based on specific criteria as specified below. The funding limit is $3,000 per household to cover rent and/or utilities, or a deposit. The City will issue the checks using the Special Demand Payment (SPD) Form directly to the applicant’s landlord from Fund 124, City Affordable Housing Fund.
City staff will then seek reimbursement from the county in two parts: one for FY24- 25, for up to half of the award amount ($17,500), and the remaining funds after the December 31, 2025, funding distribution deadline. Funds will be reimbursed to Fund 124.
4. Application Submittal Process
Applications will open April 8, 2025, and may be submitted online, in person at City Hall, or by mail. Online applications will be available in up to 10 languages.
The applicant must submit an application for the program and required documentation, including paystubs, bank statements, and a copy of the tenant’s current lease as well as evidence of hardship such as job loss.
Staff will screen applicants to determine eligibility and the amount of each award (See Attachment 6).
5. Application Review Process
City of Foster City staff will evaluate the application, income, and assets to determine the tenant’s ability to pay their rent to determine eligibility.
Staff will verify that the applicant meets these eligibility criteria using an eligibility review form developed by staff, and verification of lease, and household income and financial asset documentation. In addition, the property manager will submit a copy of the most recent tenant income certification if the tenant does not have a copy. This income certification will confirm the tenant’s income eligibility as less than 50% of AMI.
6. Awards of one-time Grants
Awards shall be granted up to one (1) month of rent and utility expenses or to cover the cost of a deposit, with a maximum of $3,000 per household.
Promotion of the Program
City staff has created a flyer for the program (See Attachment 7). The flyer and information about the program will be promoted through the following methods:
•Advertisement in The Islander
•Informational updates on the City’s social media accounts •Informational updates on the City’s electronic billboard •Details on the City’s website
•Posting the flyer in public locations used for noticing public meetings •Emailing the flyer and/or providing hard copies to the school district, childcare centers, and all BMR property managers.
Staff will also provide information directly to BMR tenants who contact the city inquiring about rental assistance and will provide flyers to landlords to share with BMR tenants who have balances due or recurring late payments.
The Agreement with the County also requires that the program be announced at least one (1) City Council meeting held during the month of May for Affordable Housing Month.
However, staff believe that a public announcement by way of this report (April 3, 2025) will meet this requirement.
CEQA
This item is not subject to review under the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 21000, et seq. and the CEQA Guidelines (14 Cal. Code Regs. §§ 15000 et. seq.), including without limitation, Public Resources Code section 21065 and California Code of Regulations 15378 as this is not a “project” that may cause a direct, or reasonably foreseeable indirect, physical change in the environment.
FISCAL IMPACT
Currently, Fund 124 has an available fund balance of approximately $732,641 (as of 02/28/2025), which is sufficient to absorb the requested appropriation. Staff is requesting supplemental appropriation of $35,000 to Account 124-0832-463-4297 and with reimbursement for expenditures by the County of San Mateo, there will be a $0 net fiscal impact.
CITY COUNCIL VISION, MISSION, AND VALUE/PRIORITY AREA
Smart Planning, Development, and the Local Economy
ATTACHMENTS:
Attachment 1 - Resolution
Attachment 2 - County Board of Supervisors Resolution No. 080855 Attachment 3 - County Agreement dated January 14, 2025
Attachment 4 - Amendment to Agreement, dated March 17, 2025 Attachment 5 - Research from other jurisdictions
Attachment 6 - Eligibility Screening Form
Attachment 7 - Program Flyer