October 15, 2024
Community Development
DATE: October 15, 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 No. 2 with RCF Connects for Short-
Term Rent Assistance Program
FINANCIAL IMPACT: The City Council allocated $1,984,233 of American Rescue Plan Act (ARPA) funds for Tenant Protections
and Rental Assistance and $1,000,000 of ARPA funds
for Richmond Rapid Response Fund, of which $300,000
has not been obligated. This amendment will be funded
from these two allocations of ARPA funds. Account
strings 13631063-400201-33001 and 13631063-400201-
AR238
PREVIOUS COUNCIL
ACTION:
February 15, 2022, December 5, 2023, and December
19, 2023
STATEMENT OF THE
ISSUE:
On December 19, 2023, the City Council authorized the
City Manager to negotiate and execute a contract with
RCF Connects, in an amount not to exceed $250,000, to
administer a rent assistance program. The contract was
amended for time in April 2024. The Community
Development Department is requesting City Council
approval of contract amendment no. 2 to add $510,000,
increasing the total contract amount to $760,000, to
provide additional rent assistance to continue to meet the urgent needs of Richmond residents.
AGENDA
REPORT
October 15, 2024
RECOMMENDED ACTION:
APPROVE a contract amendment no. 2 with RCF
Connects to add $510,000, for a not-to-exceed contract
amount of $760,000, for a term ending June 30, 2025, to administer a rent assistance program using American
Rescue Plan Act (ARPA) funds for the contract
amendment - Community Development Department (Lina
Velasco/Jesus Morales 510-620-6649).
DISCUSSION:
On February 15, 2022, the City Council allocated $1,000,000 of American Rescue Plan Act (ARPA) funds for the Richmond Rapid Response Fund (R3F). On December 5, 2023, the City Council allocated $1,984,233 of ARPA funds for Tenant Protections and Rental Assistance. On December 19, 2023, the City Council authorized the City Manager to negotiate and execute a sole-source contract with RCF Connects, in an amount not to exceed $250,000, to administer a rental assistance program funded using ARPA funds. RCF’s recent implementation and administration of the Short-Term Rental Assistance Program using ARPA funds was highly successful. City staff is seeking to amend their contract to add additional funding of $510,000 to provide more rent assistance. These additional funds will assist in meeting the urgent needs of Richmond residents who are experiencing rent increases.
RCF Connects, along with Richmond Neighborhood Housing Services and SparkPoint, administered a rental assistance program. This program was funded with $250,000 of ARPA funds that were quickly expended and provided rental assistance to 44 households helping them avoid potential eviction. RCF reports they continue to receive 3-5 calls per day from Richmond residents inquiring about the availability of funding for this program.
City staff is seeking City Council approval to execute a second amendment with RCF Connects adding $510,000 to the current contract, for a not-to-exceed contract amount of $760,000, through June 30, 2025. This funding is anticipated to support approximately 90 Richmond households to stay current on their rental housing payments thereby avoiding eviction and potential homelessness.
RCF and its partners have developed the infrastructure to implement and administer this program in a timely and efficient manner. City staff will ensure that the contract process and proposed project are implemented in accordance with all United States Treasury ARPA-related regulations.
SYNERGISTIC POLICIES:
The Short-Term Rental Assistance Program is in alignment with the City of Richmond Homelessness Strategic Plan, adopted by City Council on May 23, 2023, Goal 3:
Expand homelessness prevention and crisis programming. Short-Term Action Step 3.1 proposed to establish a flexible fund for diversion and housing focused problem-solving.
October 15, 2024
The Short-Term Rental Assistance Program is preventive programming that will allow Richmond renters to maintain their housing and avoid homelessness.
CONCLUSION:
Staff recommends that the City Council authorize execution of an Amendment No. 2 with RCF Connects to add $510,000, for a not to exceed contract amount of $760,000, for Short-Term Rental Assistance Program, funded by ARPA funds, through June 30, 2025.
DOCUMENTS ATTACHED:
Attachment 1 – Amendment No. 2 to the Contract
Attachment 2 – Original Contract and Amendment No. 1