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DATE: December 15, 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 & Sustainability Manager
DEPARTMENT: Community Development
SUBJECT: APPROPRIATION OF FUNDS AND AUTHORIZATION FOR THE
CITY MANAGER TO ACCEPT FUNDS FOR THE MEASURE K
EMERGENCY RENT RELIEF PROGRAM
RECOMMENDATION
It is recommended that the City Council approve the attached Resolution: (1) approving a supplemental appropriation of $20,000 to Account 124-0832-463-4297 for the Measure K Emergency Rent Relief Program (“Program”); (2) authorizing the City Manager to accept the funds for reimbursement of Program expenditures from the County; (3) authorizing the City Manager to include funds in the amount of $10,000 in the proposed budget for Fiscal Year (FY) 2026-27 for the Program; and (4) find the request exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA guideline section 15061(B)(3).
EXECUTIVE SUMMARY
In 2024, as part of the implementation of the 2023-2031 Housing Element, staff initiated an Emergency Rent Relief Pilot Program for Below Market Rate Tenants with funding of $35,000 from the County of San Mateo’s Measure K funds. With the help of these funds, the City was able to help 15 low-income Foster City residents with awards of funding ranging from $510 to $3,000, with an average award of $2,000.
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Due to the success of the Program and continued community need, staff applied for a second round of funding of Measure K Notice of Funding Opportunity (NOFO) in the amount of $20,000. On November 18, 2025, the San Mateo County (“County”) Board of Supervisors approved Resolution 081510, which authorized a one-time grant of district- discretionary Measure K funds, not to exceed $20,000, to the City of Foster City for the Foster City Emergency Rental Assistance Program, and authorized the County Executive, or designee, to execute the grant agreement (see Attachment 2), which was executed on November 18, 2025 (Attachment 2A).
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.
The chapter containing Housing Goals, Policies, and Programs forms the housing policy roadmap for the City and describes the implementation measures the City needs to undertake in the planning period 2023-31.
Policy H-C-2 of the adopted 2023-31 Housing Element includes the following: Protection of the Rental Housing Stock: Promote the retention of rental units and encourage rental subsidy programs that can be applied to existing housing.
The Program supports the Housing Element Policy, H-C-2.
Measure K – the Source of Funding for the Pilot Program In 2012, the 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. Deciding to build on the progress already being made with the local funds, the County Board of Supervisors placed a 20-year extension of the sales tax on the November 2016 ballot, designated as Measure K, which was passed by the voters. 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
First Round of Program Funding: FY 2024-25
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 NOFO applications were released with a due date of August 2, 2024. Staff applied for Measure 1 0
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K funds in the amount of $35,000 for the Foster City Emergency Rental Assistance Pilot Program for BMR renters.
The City’s award included $30,000 for grants to landlords on behalf of eligible applicants and $5,000 to process applications and administer the Program for a total of $35,000.
On March 17, 2025, the County executed an amendment to the 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 (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 staff to administer the program.
On April 7, 2025, the City Council approved supplemental appropriation of $35,000 to Account 124-0832-463-4297 for the Pilot Program and authorized the City Manager to accept funds for reimbursement of Program expenditures from the County.
Subsequently, staff opened the Program application portal on April 8, 2025, with an online application form. The City advertised the Program in the Islander, on the City’s website, e-newsletter, and electronic billboard in addition to providing flyers at City Hall and other public locations, and providing hard copy and email flyers to BMR residents. Over the course of the subsequent three (3) months, staff received 35 applications for emergency rent relief. Staff processed the first 15 eligible applications until funding was depleted on July 31, 2025.
Of the 35 applications, 15 were approved, representing seven (7) BMR Properties.
Awards ranged from $510 to $3,000, with an average award of $2,000. Figure 1 shows the number of approved applications from each BMR property. There were no approved applications from Metro Center or the Existing Unit Purchase Program (EUPP) units. Staff received the greatest number of applications from Marlin Cove (12 applications).
Attachment 3 provides a summary of the 2025 funding awards.
Figure 1. Distribution of Awards
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Due to the success of the program and continued community need, staff applied for a second round of funding of Measure K Funds.
Second Round of Program Funding - FY 2025-26
For FY 2025-26, the County Board of Supervisors approved $2.63 million in discretionary funding, including $500,000 for District Two, a substantial decrease from the prior year’s $4.0 million for discretionary funding. For FY 2025-26, District Two grants were limited to a maximum award of $75,000 and in three funding areas: disaster preparedness, affordable housing, and immigrant rights and resources. The NOFO for District Two grants closed on May 16, 2025. Staff applied for a second round of funding with a request for $35,000 for the Program.
On August 15, 2025, staff received notice from the County that Supervisor Corzo had recommended funding of $20,000 for the Program (less than the originally requested amount of $35,000).
On November 18, 2025, the County approved the grant for $20,000, with $2,500 for Program administration and $17,500 for awards to at least six (6) Foster City BMR tenants in need and executed the Agreement for the award. Staff will administer the Program in-house, as it did for the first round of funding. An important stipulation of the FY 2025-26 grant was that the City propose funding for the Program in the FY 2026-27 budget cycle, subject to City Council approval.
Overview of the 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*
9 Existing Unit Purchase Program 6 units
*14 BRM units and eight (8) workforce units
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Program Outline
The first round of Measure K funding for the Pilot Program for FY 2024-25 provided $30,000 in grants to landlords for rent, utilities, including unpaid balance, or deposit assistance for BMR tenants and $5,000 for administration, which included 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 second round of funding for FY 2025-26 provides $17,500 in awards and $2,500 for Program administration. The Program is administered through the City’s Affordable Housing Fund – Fund 124.
The Program offers one-time grants of up to $3,000 directly to landlords of eligible residents in lieu of residents’ rent payments. Direct payments to landlords are standard practice in rental assistance programs to ensure funds are used for rent relief.
Program demographic eligibility is limited to seniors aged 62 or older, individuals with disabilities, veterans, and families with children to comply with Measure K funding requirements.
1. Eligibility criteria
To qualify, applicants must demonstrate that their income is less than 50% of the 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. Program Goal
The goal for FY 2025-26 is to provide support to six (6) or more BMR households.
3. Distribution of Funding and Reimbursement of Funds
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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.
Staff will request reimbursement for the full amount after all funds have been distributed.
4. Application Submittal Process
Applications will tentatively open on January 5, 2025, and may be submitted online, in person at City Hall, or by mail. Online applications will be available in multiple languages. The applicant must submit an application for the Program and the required documentation, including pay stubs, bank statements, a copy of the tenant’s current lease, and evidence of hardship, such as job loss. Staff will screen applicants to determine eligibility and the amount of each award (Attachment 4).
5. Application Review Process
City of Foster City staff will evaluate the applicant's application, income, and assets to determine the tenant’s ability to pay rent and eligibility.
Staff will screen applicants to determine eligibility and the amount of each award using an application screening form. Staff will verify that the applicant meets these eligibility criteria using an eligibility review form developed by Staff, along with verification of the lease, 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 updated the flyer for the Program (Attachment 5). 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 notifying public meetings 1 0
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Emailing the flyer and, if requested, providing hard copies to all BMR property managers for distribution to all BMR tenants.
Staff will also provide information at City Hall and directly to BMR tenants who contact the city inquiring about rental assistance.
The Agreement with the County also requires that staff provide a report to the City Council. Staff has included the attached summary for FY 2024-25 funding and will return to the City Council in the coming year with an updated Program report once all awards have been issued.
It shall be noted that since the award of the funds from the County, staff has received two (2) queries from the public inquiring when the City will start accepting applications for the Program.
California Environmental Quality Act
This item is not subject to review under the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 21000, et seq. 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
Staff is requesting a supplemental appropriation of $20,000 to Account 124-0832-463- 4297. As of October 30, 2025, Fund 124 has an available fund balance of $874,918, which is sufficient to absorb the requested appropriation. With reimbursement for expenditures by the County of San Mateo, the net fiscal impact to the City will be $0.
CITY COUNCIL VISION, MISSION, AND VALUE/PRIORITY AREA
Smart Planning, Development, and the Local Economy
ATTACHMENTS:
Attachment 1 - Resolution
Attachment 2 - County Resolution No. 081510
Attachment 2A – Executed Agreement with the County of San Mateo for Measure K Attachment 3 - 2025 Program Results
Attachment 4 - Eligibility Screening Form
Attachment 5 - 2026 Program Flyer