Fremont City Council Meeting: 06/20/23 07:00 PM
3300 Capitol Avenue Div/Dept: Human Services Department Fremont, CA 94538 Category: Agreements and Contracts
SCHEDULED
Sponsors:
COUNCIL STAFF REPORT (ID # 4940) DOC ID: 4940
Updated: 6/15/2023 12:28 PM by Alberto Quintanilla Page 1
AUTHORIZE THE CITY MANAGER TO EXECUTE FEDERAL HOME AGREEMENTS – Authorize the City Manager to execute HOME Funding Agreements to Fremont Family Resource Center and Abode Services
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 purpose of this staff report is to request that the City Council authorize the City Manager to execute the following HOME funded community agreements:
1. A $342,860 HOME agreement with the Fremont Family Resource Center, for FYs 2023/24 and 2024/25, for the Stay Housed Program.
2. A $150,000 HOME agreement with Abode Services, for FYs 2023/24 and 2024/25 for its Rapid Rehousing Program.
BACKGROUND: The purpose of the federal HOME Program is to expand the supply of decent, safe, sanitary, and affordable housing for very low and low-income households. In general, HOME funds can be used to acquire, rehabilitate, finance, and construct affordable housing, as well as provide Tenant Based Rental Assistance (TBRA) to prevent families from falling into homelessness.
Since 1991, Fremont has participated in the Alameda County HOME Program Consortium in order to receive federal HOME funds. Members of the Consortium include the cities of Fremont, Alameda, Hayward, Livermore, Pleasanton, San Leandro, Union City and Alameda County representing the unincorporated portions of the county. Alameda County administers the HOME funds on behalf of the Consortium. HOME Funds require cities to provide a 25% match which is calculated and reported on by Alameda County on behalf of the HOME consortium.
On July 14, 2020, and June 6, 2023, the City Council approved the City’s continued participation in the Alameda County HOME Consortium of contiguous jurisdictions for Federal Fiscal Year 2023/24 and 2024/25, respectively, for the purpose of securing federal HOME funding. Council’s approval for continued participation in the HOME consortium did not commit the City to any specific project or activity. However, the consortium agreement provides that all projects to be funded with HOME funds must have prior approval of the City Council before the County will allocate the funds.
The City has utilized its HOME funds primarily for TBRA, with Abode Services and the Fremont Family Resource Center providing rental subsidies for low income households to quickly regain stability in permanent housing after experiencing a housing crisis and/or homelessness.
Council Staff Report (ID # 4940) Meeting of June 20, 2023 Updated: 6/15/2023 12:28 PM by Alberto Quintanilla Page 2 Staff believes that the continued use of HOME funds for these programs is valuable for the community and will help meet the needs of many households who are in precarious housing situations. The City has a total of $246,430 in FY 2023/24 HOME funds available for allocation to these eligible projects and anticipates an additional $246,430 in FY 2024/25 HOME funding.
DISCUSSION/ANALYSIS:
Fremont Family Resource Center Stay Housed Program
The City’s Human Services Department, through the Family Resource Center (FRC), has provided HOME TBRA rental subsidies through the Stay Housed program since 2013. Since its inception, the program, with an original allocation of $400,000, has served a total of thirty families, for up to 24 months, who were at risk of becoming homeless due to temporary financial setbacks. Of the thirty families who participated in the program, twenty-three families retained permanent housing. Although the FRC is close to spending down the entire fund balance, families in Fremont are continuing to be confronted with job loss and other crisis situations that lead to eviction and eventual homelessness. Therefore, the Human Services Department wants to continue to have a source of funding to be able offer tenant-based rental assistance, to help families get through a crisis and remain housed.
The Stay Housed rental assistance is offered in conjunction with the FRC’s SparkPoint self - sufficiency program. SparkPoint assists families to achieve long-term financial stability while receiving rental assistance, by reducing expenses, increasing savings, and increasing credit scores. Each Stay Housed participant works with a Sparkpoint coach or a FRC Family Support Specialist to create an individualized step-by-step self-sufficiency plan/agreement to set and achieve personal financial goals and stabilize their housing situation.
Staff is recommending funding the Stay Housed Program with $342,860 in FY 2023/24 and FY 2024/25 HOME funds, $171,430 each fiscal year, which will help the FRC assist 13 - 16 new Fremont households in each year.
Abode Services Rapid Rehousing Program
In FY 2010/11, Abode Services re-designed the Winter Relief Program, which previously sheltered homeless families in local churches, into a program that focuses on placing homeless families already on the shelter’s waiting list directly into permanent housing. Since its program re-design, Abode has received a total of $150,000 in HOME funds from the City to finance the rental subsidy portion of this program and has served a total of 45 Fremont households using a combination of City HOME funds and other funds. Abode clients may receive subsidies for up to 24 months, but typically average twelve months.
Abode needs additional funds to continue this program. With the high cost of rent in the Bay Area, many homeless families continue to need housing subsidies to be able to get back into the local housing market. The use of HOME funds for rapid re-housing efforts is also showing promising outcomes with an average of 80% housing retention rate after program exit.
Council Staff Report (ID # 4940) Meeting of June 20, 2023 Updated: 6/15/2023 12:28 PM by Alberto Quintanilla Page 3 Staff is recommending funding Abode’s Rapid Rehousing program with $150,000 in FY 2023/24 and FY 2024/25 HOME funds, $75,000 each fiscal year, which projects to serve 8- 10 Fremont households (singles and families) in each year. Abode provides supportive services and other housing stabilization assistance which will provide the necessary match for HOME funding.
These projects have a proven track record in providing TBRA assistance using HOME funds.
With the high cost of rent in the Bay Area, staff anticipates many low-income households will continue to have a need for rental subsidies.
FISCAL IMPACT: As part of the FY 2023/24 Adopted Budget, the City Council appropriated sufficient funding for the recommended HOME projects. The City’s family support services satisfy the City’s match requirement for HOME funding. FY 2024/25 funding will be contingent upon the City receiving its FY 2024/25 allocation from the County.
ENVIRONMENTAL REVIEW: The current action does not authorize any project that will result in adverse effects on the physical environment and does it constitute a project under CEQA, as specified in, without limitation, CEQA Guidelines Section 15378, and/or 15061(b)(3), each as a separate and independent basis for exemption. All projects listed in this staff report are subject to environmental review procedures pursuant to the National Environmental Policy Act (NEPA). Consistent with NEPA regulations, funding will not be distributed to a project until appropriate NEPA review and clearance is completed for that project.
ATTACHMENTS: None.
RECOMMENDATION: Authorize the City Manager, or her designee, to execute:
1. A $342,860 HOME agreement with the Fremont Family Resource Center, for FYs 2023/24 and 2024/25, for the Stay Housed Program.
2. A $150,000 HOME agreement with Abode Services, for FYs 2023/24 and 2024/25, for its Rapid Rehousing Program.