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RESOLUTION NO. RES-22-0073
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF LONG BEACH AUTHORIZING A STATE RENTAL
ASSISTANCE PROGRAM LOAN AWARD
7 WHEREAS, on December 27, 2020, the Consolidated Appropriations Act, 8 2021 (Pub.L. No. 116-260) (the "Act") was signed into law. Section 501 of Division N of 9 the Act established the federal Emergency Rental Assistance Program ("ERA 1 "), and 10 authorized the direct allocation of emergency rental assistance funds to states, units of 11 local government, tribal communities, and territories. The ERA 1 funds are intended to assist households that are unable to pay rent and utilities due to the COVID-19 13 . pandemic; and
WHEREAS, on March 11, 2021, the American Rescue Plan Act of 2021 (Pub.L. No. 117-2) ("ARPA") was signed into law. Section 3201 of Subtitle B of Title Ill of 16 ARPA established the federal Emergency Rental Assistance Program ("ERA2"), and 17 authorized the direct allocation of funds to states, the District of Columbia, units of local 18 government, territories, and high-need grantees. The ERA2 funds are intended to assist 19 low-income households that have experienced financial hardship during or due to the 20 COVID-19 pandemic, are unable to pay for rent and utilities, and are at risk of 21 experiencing homelessness or housing instability; and 22 WHEREAS, California Assembly Bill No. 832 (Chapter 27, Statutes of 2021) 23 ("AB 832") provides the legal basis for the State of California's administration of its share 24 of ERA 1 and ERA2 funds (the "State Rental Assistance Program," "SRA," or "SRA 25 Funds"). AB 832 amended Sections 50897, 50897.1, 50897.2, 50897.3, and 50897.4 of, 26 and added Sections 50897.2.1 and 50897.3.1 to, the Health and Safety Code. Health and 27 Safety Code section 50897.1, subdivision (a)(1) authorizes the Department of Housing 28 and Community Development (the "Department") to administer the SRA Funds in RFA:bg A22-00971 (03-23-2022)
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1 accordance with state and federal law; and
2 WHEREAS, California Senate Bill No. 115 (Chapter 2, Statutes of 2022) 3 4
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("SB 115") authorized eligible local jurisdictions and federally recognized tribal governments to request cashflow loans from the Department for Emergency Rental Assistance Program expenditures. Such expenditures must be for complete, eligible applications by households that were received on or before March 31, 2022, including administrative costs that are consistent with the provisions of Chapter 17 (commencing with Section 50897) of Division 31 of Part 2 of the Health and Safety Code, as applicable; and
WHEREAS, in enacting SB 115, the Legislature's intent was to provide local programs with immediate cash, in the form of temporary cashflow loans, to maximize rental relief to all eligible households as the local programs await additional federal funding from either ERA1 or ERA2. If the anticipated federal funding is not received by June 30, 2023, and if such funds cannot be utilized for reimbursements, the Department of Finance will forgive an amount up to the amount not covered by the federal allocation; and
WHEREAS, as authorized by SB 115, the Department will make such cashflow loans available pursuant to terms and conditions developed by the Department.
Such terms and conditions may include, but are not limited to, reporting; a repayment schedule; interest charged at the rate earned by moneys in the Pooled Money Investment Account; and remittance mechanisms that include the withholding of future state and federal funding administered by the Department; and
WHEREAS, the City of Long Beach ("City") is participating in the SRA under "Option B," as that term is defined in subdivision (i) of Section 50897 of the Health and Safety Code; or is a federally recognized tribal government, consistent with the state's implementation of Chapter 17 (commencing with Section 50897) of Division 31 of Part 2 of the Health and Safety Code; and
WHEREAS, City applied to the U.S. Department of the Treasury 2 RFA:bg A22-00971 (03-23-2022)
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25 (''Treasury") for a reallocation of ERA 1 funds (the "ERA 1 Reallocation") by submitting one or more appropriate requests for reallocated funds to Treasury's portal ("Reallocation Request") by January 21, 2022. City will apply to the Treasury for a reallocation of ERA2 funds (the "ERA2 Reallocation") once those reallocation moneys become availabl e. The ERA 1 Reallocation and the ERA2 Reallocation are also referred to herein, individually and collectively, as the "ERA Reallocation(s)"; and
WHEREAS, City desires to request and accept a temporary cashflow loan of funds from the Department, as authorized by SB 115 (this amount, the "SRA Loan Award"), while it awaits the additional federal funding described above; and WHEREAS, City plans to administer any ERA Reallocation in accordance with the applicable federal law (the Act and/or ARPA); the applicable Treasury interpr etive guidance; and all such requirements as may be subsequently amended and applicable; and
WHEREAS, City acknowledges that every SRA Loan Award is subject to and shall be administered in accordance with the state's requirements for Round 2 of the State Rental Assistance Program, including, without limitation, the applicable requirements of AB 832; SB 115; the Department's State Rental Assistance Program Guidelines, dated September 27, 2021; and all such requirements as may be subseq uently amended (collectively, the "SRA Loan Award Requirements"); and WHEREAS, City further acknowledges that every SRA Loan Award is subject to the terms and conditions of a Department-approved STD 213, Standard Agreement ("Standard Agreement"), all other documents required or deemed necessary or appropriate UNDER STATE OR FEDERAL LAW to disburse, evidence, and secure the SRA Loan Award, and all amendments thereto (collectively, the "SRA Loan Award Docu ments");
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1 NOW, THEREFORE, the City Council of the City of Long Beach resolves as 2 follows:
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Section 1. City is hereby authorized and directed to request and accept an SRA Loan Award totaling Twenty-Eight Million Thirty-Three Thousand Eight Hundred Forty Dollars ($28,033,840). Such amount matches the Reallocation Request submitted in November 2021 or in January 2022 and does not exceed the amount set forth in the City's last-in-time Reallocation Request submitted to Treasury.
Section 2. City is hereby authorized and directed to enter into, execute, and deliver the SRA Loan Award Documents, which shall include a Standard Agreement in a total amount not to exceed Sixty Four Million Eight Hundred Thousand Dollars ($64,800,000).
Section 3. City is hereby authorized and directed to assume responsibility for administering the SRA Loan Award in accordance with all SRA Loan Award Requirements.
Section 4. Thomas B. Modica, City Manager, or designee, is authorized to execute the SRA Loan Award Documents on behalf of the City for participation in the State Rental Assistance Program - Round 3
Section 5. This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting this resolution.
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I hereby certify that the foregoing resolution was adopted by the City Council of the City of Long Beach at its meeting of May 10 , 2022 by the following vote:
Ayes: Councilmembers:
Noes: Councilmembers:
Absent: Councilmembers:
Recusal(s): Councilmembers:
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Zendejas, Allen, Saro, Uranga,
Richardson.
None.
Price, Supernaw, Mungo, Austin.
None.
C�le
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