July 2, 2024
Community Development
DATE: July 2, 2024
TO: Mayor Martinez and Members of the City Council
FROM:
Lina Velasco, Director of Community Development
Jesus M. Morales, Housing Manager
Subject:
Contract Amendment with RCF Connects for Unhoused
Services
FINANCIAL IMPACT: The City Council accepted and appropriated an Encampment Resolution Round 2 (ERF-2R) award
totaling approximately ~$8.6 million. The City Council allocated $1.9 million (ARPA funds) in funding for Tenant Protections/Rental Assistance in the approved budget.
The total contract amendment amount is $1,403,658.17
which will be paid for using the project-specific account string: (ERF–2R),13861119-400201, and account string:
(ARPA) 13631063-400201-33001. Specific funding
allocations will be determined later.
Approximately $450,000 of the ARPA funding will be
reallocated from unused funds from amendment no. 3
that were intended for Emergency Shelter Services.
PREVIOUS COUNCIL
ACTION:
December 20, 2022, July 11, 2023, September 12, 2023,
November 28, 2023
STATEMENT OF THE
ISSUE:
In November 2023, the City Council approved
Amendment no. 2 to add $1,111,633.15 to the contract
with the Richmond Community Foundation (RCF) to
administer the Encampment Resolution Fund grant, ERF-
2R in December 2023, the City Council approved
Amendment no. 3 to add $700,000 for Emergency
AGENDA
REPORT
July 2, 2024
Shelter Services, as part of the City’s Housing First and Emergency Housing Assistance Programs.
On December 20, 2022 City Council approved a contract
in the amount of $525,000 for the Housing First Program and added an additional $625,084.80 on July 11, 2023
for a total of $1,150,084.80 to provide rental assistance under the housing first program
Former Rydin Road and Castro encampment clients
need additional rental assistance while they are
developing income to become self-sustainable.
Way 2Love, has notified the City they are terminating
their contract for project management and case
management services effective July 31, 2024. The City is in the process of procuring a contract with another
organization to provide project and case management
services including housing assistance payments.
In the interim period to ensure rental payments for clients that are housed are made timely RCF will provide rental payment and case management services until the
replacement organization is contracted with. We expect
RCF will provide this service through October 2024.
RECOMMENDED ACTION:
APPROVE a contract amendment No. 4 with RCF to add
$1,403,658.17 in additional funding for the Richmond
Housing First Emergency Housing Assistance Programs
and the Encampment Resolution Fund (ERF 2R), for a
total contract amount not to exceed $4,365,376.12, for a term extending through June 30, 2025 – Community
Development (Lina Velasco/Jesus Morales 510-620-
6706).
DISCUSSION:
In December 2022, the City Council approved a $525,000 contract with the Richmond Community Foundation to administer the City’s Housing First and Emergency Housing Assistance Programs. In July 2023, the City Council approved an amendment no. 1 to add an additional $625,084.80 Housing First program funds, a total of $1,150,084.80.
The Housing First Rental Assistance program funds are almost fully expended.
The City Council accepted and appropriated an Encampment Resolution Round 2 award totaling approximately ~$8.6 million. The grant funds include resources for rent assistance and support services, such as case management and housing navigation services. In November 2023, the City Council approved an amendment no. 2 to add
July 2, 2024
$1,111,633.15 of ERF–2R funds to have RCF provide case management and housing services to ERF–2R unhoused clients. In November 2023, the City Council approved amendment no. 3 to add $700,000 of ARPA funds for Emergency Shelter Services.
There are approximately 30 former Castro residents and 30 Housing First clients currently housed that require additional rental assistance while working on income development to become self-sustainable. With the additional funding RCF will provide ongoing rental assistance and case management services to approximately 30 former Castro clients, not transferred to ERF-2R, and 30 Housing First clients currently housed.
Way 2Love had a contract with the city for project management, client case management, and housing navigation services for ERF-2R unhoused clients. Way 2Love has informed the city of its intention to terminate their contract effective July 31, 2024.
City staff has been reaching out to other organizations that can provide the case management and housing services previously provided under the Way 2Love contract.
RCF would be providing these services ensuring that rental assistance payments are made, and client continue to receive case management services while the city onboards another service provider. RCF is willing and able to provide the requested service on an interim basis until a contract is executed with a project manager and service provider(s).
City staff will be coming back to City Council with a contract proposal after the summer recess for project management and case management services provider(s).
The ERF-2R program is a valuable resource in addressing challenges faced by the unhoused population including eligible former Castro residents. Approximately 30 Castro residents have been transferred to ERF 2R for continued housing assistance and case management services. These former Castro clients have actively participated in therapy meetings, Staying on Your Feet meetings, following program and housing rules, developing employment skills, and or obtaining stable income through jobs or other benefits they may be entitled to.
The navigation center facilitates providing interim housing and delivery of essential case management services, employment support, and wrap-around services. The program aims to stabilize individuals' housing situations and lessen some of the pressures of transitioning directly into housing.
The additional ERF-2 funds will be used for direct rental assistance payments to landlord participants. Similarly, the additional Housing First funds (ARPA) funds would allow RCF to make rental assistance payments for former Housing First and Castro residents as they work on developing income and becoming self-sustainable. The additional funding will allow RCF to provide case management services to these clients until a new service provider is onboarded.
July 2, 2024
Staff recommends approving contract amendment No 4 with Richmond Community Foundation to continue the ERF-2R and Housing First programs t o assist unhoused clients with housing assistance and case management services in the amount of $1,403,658.17 for a total not to exceed contract amount of $4,365,376.12, for a term through June 30, 2025, to be funded using the City’s Encampment Resolution Funds Round 2 grant and ARPA funds.
DOCUMENTS ATTACHED:
Attachment 1 – Amendment No. 4
Attachment 2 – Original Contract and Amendments 1-3