April 18, 2023
Community Development
& Community Services
DATE: April 18, 2023
TO: Mayor Martinez and Members of the City Council
FROM:
Lina Velasco, Director of Community Development
LaShonda White, Deputy City Manager – Community
Services
Subject:
Richmond Rapid Response Fund (R3F) Update
FINANCIAL IMPACT: There is no financial impact to receiving this report. On June 21, 2021, City Council approved a $1 million
allocation from the City’s American Rescue Plan Act fund to support this work (13631063-400201-AR238).
PREVIOUS COUNCIL
ACTION:
February 15, 2022, August 1, 2022 , and November 22,
2022
STATEMENT OF THE
ISSUE:
The Richmond Rapid Response Fund (R3F) is providing
an update on their rent assistance and direct
disbursement assistance work, including the number of
residents assisted and funds disbursed through the
program. City staff will also provide an update on the
status of the strategic planning process and their work related to the development of a pilot Guaranteed Income Program.
RECOMMENDED ACTION:
RECEIVE a written report from the Richmond Rapid
Response Fund Program (R3F) including updates on
funds disbursed, residents served, and strategic plan and guaranteed income program development - Community
Development/Community Services (Lina Velasco 510-
620-6841/LaShonda White 510-620-6828). This item
was continued from the April 4, 2023, meeting.
AGENDA
REPORT
April 18, 2023
DISCUSSION:
Background
On June 21, 2021, City Council allocated $1 million in the City’s American Rescue Plan Act (ARPA) funds to the Richmond Rapid Response Fund (R3F) to support Richmond residents negatively impacted by the COVID-19 pandemic through direct financial disbursements, rent assistance, and the research and development of a guaranteed income program. On February 15, 2022, City Council approved an initial $600,000 contract with West Contra Costa Education Fund West(Ed Fund), fiscal sponsor for R3F, to support direct disbursements and rent relief. In addition, on August 1, 2022, the City Council approved a $125,000 contract with Dalberg Consulting Firm (Dalberg) to support a strategic planning effort for R3F and to support the development of the guaranteed income program (EdFund/R3F contributed $25,000 towards the total cost of the contract). City staff plans to amend the EdFund/R3F contract at the end of Fiscal Year (FY) 2022-23 to add the remaining $300,000 in ARPA funds allocated by City Council that are anticipated to be used in support of a guaranteed income pilot program.
Table 1: City Council ARPA Allocation for R3F
Allocation Spent or
Encumbered
Remaining
Support to Families $600,000 $325,000 $275,000
Direct Disbursements $25,000
Rent/Mortgage Relief $300,000
Guaranteed Income Program $400,000 $100,000 $300,000
Contract with Dalberg $100,000 0
Guaranteed Income Pilot $300,000
Total ARPA Allocation $1,000,000 $425,000 $575,000
EdFund/R3F and City staff provided an update to City Council on November 22, 2022, and per City Council direction, are returning to provide further updates. This report and the presentation will provide an update on R3F’s success in assisting Richmond residents, negatively impacted by the COVID-19 pandemic, and the status of R3F’s current and future programs including the initial work regarding guaranteed income.
Impact of Richmond Rapid Response Fund (R3F)
The Richmond Rapid Response Fund (R3F) is a community-led asset serving Richmond residents most vulnerable to systematic harm by mobilizing resources to individuals and families to meet their basic needs. R3F is a wrap-around initiative that was developed to meet the immediate and ongoing needs of the community during the
April 18, 2023
COVID-19 pandemic and beyond (www.richmondresponsefund.org). R3F’s key priority areas include food and essential supplies, economic recovery and security, housing and homelessness, health and healing, and education and learning. Shortly after March 2020, R3F was created to support Richmond residents experiencing financial hardship due to the COVID-19 pandemic, connecting residents to resources through R3F’s network of community-based organizations via the West Contra Costa Cares Coalition.
To-date, R3F has provided $1,027,000 in support to 1,177 Richmond residents impacted by COVID. The information below represents all revenue sources including funds from the City of Richmond’s current ARPA allocation:
Direct Financial Disbursements:
o 1,100 families have been served totaling $550,000, of which 50 families were supported using ARPA funds ($25,000)
Rent Assistance:
o 77 families were assisted totaling approximately $477,000, of which 59 families were served with ARPA funds ($300,000)
Table 2: ARPA vs Non-ARPA Support
ARPA NON-ARPA TOTAL
#
Supported
Amount #
Supported
Amount #
Supported
Amount
Direct
Disbursements
50 $25,000 1,050 $525,000 1,100 $550,000
Rent Assistance 59 $300,000 18 $177,000 77 $477,000
Totals 109 $325,000 1,068 $702,000 1,177 $1,027,000
For the rapid response cash assistance, R3F coordinated with partners from the West Contra Costa Cares Coalition to further connect families with a resource and referral network for ongoing needs and support. Through data provided by direct recipient reports and partner financial data collection, R3F observed that residents overwhelmingly spent funds on food, utilities, rent, transportation, and school and household supplies. R3F found that investments went most often into two of the lowest income zip codes in Richmond (94801 and 94804).
R3F Strategic Planning Process
The City of Richmond partnered with R3F staff to prepare a request for proposals (RFP) seeking a consultant to support R3F in strategic planning, future program development (primarily focused on a guaranteed income pilot program), and a governance structure.
After a competitive bidding process, the Richmond City Council approved a $125,000 contract with Dalberg and Empathy in Action on August 1, 2022. The strategic planning effort, which was funded jointly by the City ($100,000) and R3F ($25,000), began in September 2022. Dalberg has expertise in cross-sector collaboration locally, nationally,
April 18, 2023
and internationally. Empathy In Action is a Richmond-based non-profit that collaborates with other Richmond-based organizations supporting outreach and engagement.
In late 2022, the consultants facilitated research on proposed governance and sustainability models, yielding preliminary discussion and draft strategies on a governance structure. Currently, the consultants are working to refine the strategy with the R3F core team and the West Contra Costa Cares Coalition. Over the next several weeks, R3F and the consultants will finalize the draft strategy for submission to City staff and members of the core team to develop, implement, and transition the new governance structure and associated bylaws. Additionally, efforts to invite community stakeholders to participate and provide feedback on the process has commenced.
The consultants have conducted over 25 interviews with key stakeholders to inform the strategic plan. In addition, Empathy In Action has engaged 280 predominantly low- income residents of Richmond representing a demographic and socioeconomic cross- section to assess the needs and aspirations of the community. The key findings were that economic security was the greatest need and desire of participants followed closely by housing. Non-English-speaking residents were more likely to feel that their needs were not addressed and based on resident feedback cash disbursements would allow varying needs to be met. Moving forward, R3F may focus more on guaranteed income (GI) instead of direct rent relief.
Targeted/Guaranteed Income Pilot Program
Dalberg also supported R3F in evaluating the creation of a pilot GI program (also referred to as a targeted income program). Per the City’s contract, funding for a GI program pilot would come from allocated ARPA funds. R3F has experience setting up mechanisms for financial disbursement and enhancing wrap-around service collaboration for recipients.
The GI work also aligns with former Councilmember Demnlus Johnson III’s recommendation to look for GI models for the City of Richmond as part of the work on Race, Equity, and Inclusion (June 2021). GI has been shown to close financial gaps for both race and gender especially for those who face higher rates of poverty than their white and male peers. R3F worked with graduate students from UC Berkeley’s Goldman School of Public Policy and School of Public Health to administer a feasibility study regarding the populations in Richmond who will receive the greatest impact from a GI program. R3F also connected with regional and statewide communities of practices and interviewed key leaders who have implemented GI pilot programs and other direct cash policies.
More than 100 GI programs are currently active across the country, many of which are utilizing ARPA funds for their pilots. Interest in GI has sparked the development of a Contra Costa Working Group, funded by Y&H Soda Foundation, that is dedicated to curating a blueprint for GI in the county. Local jurisdictions like the County of Santa Clara and the City of Stockton implemented pilot GI programs in their communities.
April 18, 2023
Currently, several West County Cares Coalition partners, who have worked with R3F, are offering support to the Budget Justice Coalition’s County budget proposal, and specifically, the adoption of a GI fund of $3 million for Contra Costa County.
R3F is beginning to engage with leadership in County departments in order to make waivers to protect GI participants from losing their benefits. R3F is also fundraising and working with leaders in the GI space such as the Economic Security Project and Mayors for Guaranteed Income to provide technical assistance to implement the program successfully while building political will and engaging the community.
Next Steps
R3F is bringing on a fellow to further support and continue its work to support Richmond residents negatively impacted by the COVID-19 pandemic and achieve an equitable recovery. R3F will continue to provide regular updates to City staff and City Council on the use and impact of ARPA funds on the Richmond community, as well as the continued research and development of a GI program.
DOCUMENTS ATTACHED:
Attachment 1 – PowerPoint