Fremont City Council Meeting: 10/04/22 07:00 PM
3300 Capitol Avenue Div/Dept: Human Services Department Fremont, CA 94538 Category: Agreements and Contracts
SCHEDULED
Sponsors:
STAFF REPORT (ID # 4715) DOC ID: 4715 D
Updated: 9/27/2022 3:07 PM by Alberto Quintanilla D Page 1
FEDERAL EMERGENCY SOLUTIONS GRANT PROGRAM AGREEMENT AND FUND APPROPRIATION – Adopt a Resolution and Authorize the City Manager to Execute an Agreement with the U.S. Department of Housing and Urban Development for the new Emergency Solutions Grant (ESG) Program for Fiscal Year 2022/23 and Appropriate $149,961 in ESG Funding
Contact Persons:
Name: Robert Lopez Suzanne Shenfil
Title: CDBG Administrator Director
Div/Dept: Human Services Department Human Services Department Phone: 510-574-2043 510-574-2051
E-Mail: [email protected] [email protected]
Executive Summary: The City of Fremont has been selected to receive $149,961 in on- going Federal Emergency Solutions Grant (ESG) funds from the United States Department of Housing and Urban Development to provide funding for programs and services assisting homeless individuals and families, as well as those in danger of falling into homelessness.
Staff recommends that the City Council adopt a resolution and authorize the City Manager or her designee to enter into an agreement with HUD for the new Emergency Solutions Grant program for FY 2022/23 and appropriate ESG funding in the Federal Operating Grants Fund (Fund 199).
BACKGROUND:
As a HUD entitlement jurisdiction, the City receives Community Developmen t Block Grant (CDBG) program funds each year from HUD for housing and community development activities. The funding is allocated to the City based on several factors including population, poverty, and housing statistics. It is because of these factors from the recent 2020 Census that HUD has awarded new federal entitlement program funds, the ESG program, to the City.
The primary objectives of the ESG program are to address the needs of homeless people in emergency or transitional shelters to assist people to quickly regain stability in permanent housing after experiencing a housing crisis and/or homelessness. ESG funds must be used for activities which primarily benefit individuals and families that meets HUD’s “homeless” and “at-risk of homelessness” definitions in accordance with 24 CFR 576.
The ESG program provides funding for five program components that the City may select from:
1. Street Outreach: Engage homeless individuals and families living on the street;
2. Emergency Shelter: Improve the number and quality of emergency shelters for homeless individuals and families, help operate these shelters, and provide essential services to shelter residents;
3. Rapid Re-housing Assistance: Rapidly re-house homeless individuals and families;
4. Homelessness Prevention: Prevent families and individuals from becoming homeless; and
Staff Report (ID # 4715) Meeting of October 4, 2022
Updated: 9/27/2022 3:07 PM by Alberto Quintanilla D Page 2
5. Homeless Management Information System: Support the operation of the local information technology system used to collect client-level data County-wide.
The ESG grant allows for 7.5% of the funds to be used for administrative activities.
DISCUSSION/ANALYSIS: Like the City’s CBDG funds, all federal funds, including ESG, must be programmed into the City’s Consolidated and Annual Action Plan. The CDBG funding recommendations and FY 2022/23 Annual Action Plan was passed by City Council on June 21, 2022. Because HUD announced the ESG award to the City late in the action plan process, HUD has allowed additional time to obligate ESG funding. The City has 180 days from the date of the executed ESG grant agreement with HUD to obligate ESG funds to programs and services. This also includes a Request for Proposals (RFP) process that staff will oversee.
After setting aside the City’s 7.5% administrative allocation ($11,247), the Department will have $138,714 available for an RFP. Because of the limited amount of ESG grant funding, staff plans to issue an RFP solely for Rapid Re-housing rental housing rental assistance subsidies and deposits. Affording quality, sustainable, and permanent housing for our homeless residents continues to be a critical underfunded need. This new resource will allow the City to increase its ability to house homeless individuals and families. This option also aligns with Alameda County’s Home Together 2026 Community Plan. On May 3, 2022, Fremont City Council endorsed Alameda County’s Home Together 2026 Community Plan, which identifies the addition of new rapid rehousing slots as a strategy to achieve a primary goal to increase housing solutions, and thereby, reducing homelessness.
Rapid Re-housing allows for short and/or medium-term rental assistance as necessary to help individuals or families living in an emergency shelter or other places, as defined by HUD “as not meant for human habitation”, move as quickly as possible into perman ent housing and achieve stability in that housing. Funds in this category may be used for services and assistance generally consisting of short-term and medium-term rental assistance, rental arrears, rental application fees, security deposits, advance paym ent of last month's rent, utility deposits and payments, moving costs, housing search and placement, housing stability case management, mediation, legal services, and credit repair.
However, the RFP will focus on providing rental and deposit assistance.
The City allocates CDBG funds in two-year funding cycles, which will also be the basis for the ESG program funding cycle framework. This allows agencies to better budget their resources and reduces the amount of paperwork they need to complete each year.
Staff will return to the City Council once the RFP process is completed to amend the City’s FY 2020-2025 Consolidated Plan and FY 2022/23 Annual Action Plan to program ESG funds and seek approval of ESG funding recommendations and contract execution authority.
FISCAL IMPACT: There is no impact to the general fund. Metropolitan city and urban county recipients must match grant funds with an equal amount of contributions, which may include cash, donated buildings or materials, and volunteer services. The City has sufficient federal and local funds dedicated to homelessness programs to meet the match requirement. Staff recommends the City Council appropriate $149,961 in the Federal Operating Grants Fund.
Staff Report (ID # 4715) Meeting of October 4, 2022
Updated: 9/27/2022 3:07 PM by Alberto Quintanilla D Page 3
ENVIRONMENTAL REVIEW:
Consistent with National Environmental Policy Act (NEPA), regulations, funding will not be distributed to a project until appropriate NEPA review and clearance is completed for that project.
All of the projects being recommended are exempt from review under the California Environmental Quality Act (CEQA), without limitation, as the repair, maintenance or minor alteration of existing facilities involving negligible or no expansion of use pursuant to CEQA Guidelines Section 15301, and/or as replacement or reconstruction of existing structures and facilities where the new structure will be located on the same site and have substantially the same purpose and capacity as the replaced structure pursuant to CEQA Guidelines Section 15302. Each of the foregoing provides a separate and independent basis for CEQA exemption
ATTACHMENTS:
• Exhibit 1 - Resolution FY 22-23 ESG Funding
RECOMMENDATION: Staff recommends that the City Council adopt a resolution and authorize the City Manager or her designee to enter into an agreement with HUD for the new Emergency Solutions Grant program for FY 2022/23 and appropriate ESG funding in the Federal Operating Grants Fund.