City of Sacramento
City Council - 5PM Report
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File ID: 2022-02458 2/7/2023 Consent Item 19.
Contracts: Stockton Boulevard Housing Anti-Displacement and Housing Stabilization Programs
File ID: 2022-02458
Location: Districts 5 and 6; zip codes: 95817, 95820, 95824, 95828 Recommendation: Pass a Motion authorizing the City Manager or the City Manager’s designee to execute professional service contracts for anti-displacement and housing stabilization programming services for income-qualified households in the four zip codes identified as at-risk of displacement around the Stockton Boulevard area with: a) Habitat for Humanity of Greater Sacramento for home repair and electrification services for a total not-to-exceed amount of $560,000 for a term of 24 months with the option to extend for an additional 6 months for a total contract term of 30 months; b) The Salvation Army for homeless prevention and budgeting services for a total not-to-exceed amount of $500,000 for a term of 18 months with the option to extend for an additional 6 months for a total contract term of 24 months; c) Step Up on Second Street, Inc. for homeless prevention and rehousing services for a total not-to-exceed amount of $530,000 for a term of 12 months with the option to extend for an additional 6 months for a total contract term of 18 months; and d) Unseen Heroes and CLTRE for credit repair, homebuyer education and first-time homebuyer services for a total not-to-exceed amount of $500,000 for a term of 18 months with the option to extend for an additional 6 months for a total contract term of 24 months.
Contact: Danielle Foster, Housing Policy Manager, (916) 808-1869, [email protected], Office of Innovation & Economic Development; Leslie Fritzsche, Economic Investment Manager, (916) 808-5450, [email protected], Office of Innovation & Economic Development Attachments:
1-Description/Analysis
2-Habitat for Humanity Contract
3-Salvation Army Contract
4-Step Up on Second Street Contract
5-Unseen Heroes/CLTRE Contract
File ID: 2022-02458 2/7/2023 Consent Item 19.
Description/Analysis
Issue Detail: As part of the City's Aggie Square Community Benefit Partnership Agreement, and related Settlement Agreements, the City and the Regents of the University of California (“UC Davis”) have committed $10 million for a range of programs and activities to counter potential resident displacement and support housing stability in the neighborhoods surrounding the Aggie Square project on the Stockton Boulevard corridor. To determine the range of efforts needed to address potential displacement and housing stability, the City completed a survey last spring to understand the community needs around this topic and is utilizing the results of that survey to contract with partners to implement programs and assist existing residents with their housing needs.
The survey collected results from 367 individuals within the identified community zip codes surrounding Stockton Boulevard and UC Davis employees in the AFSCME Local 3299 employee union. The margin of error for the survey was 5.1%-5.2%. The survey collected information from a variety of respondents (ethnicities and ages) using interactive voice calling and flyering/outreach for a web-based written survey accessible in multiple languages. There was the greatest demand for Home Repair (76%) and Homeless Prevention (73%) Programs, with First-time Homebuyer Programs coming in third at 67%. The contracts in this report cover these categories.
These contracts will provide services to reduce risk and likelihood of housing displacement for income-qualified households in the Stockton Boulevard Area (zip codes 95817, 95820, 95824, 95828) and willprovide resources for rehousing and housing stabilization. These contracts will leverage existing resources and partner programs/expertise, further collaboration and related city policy and equity objectives (e.g. housing electrification), maximize community benefit and include an iterative process for client feedback. These four contracts include the following services for qualified low-income households:
•Habitat for Humanity Home Repair and Electrification Program ($560,000) - This 24-month contract will offer habitability and structural repairs related to the life and safety of the housing for low-income homeowners and will ensure ongoing compliance with the Uniform Building Code, livability, accessibility, and affordability, while also furthering energy efficiency, housing electrification and equitable access to these repairs and environmental health improvements. This contract includes $60,000 of Urban Sustainability Directors Network (USDN) grant funding for two full home electrification projects. This contract will be completed in collaboration with community partners like SMUD and the Community Resources Project (CRP) to expand assistance to homeowners and stretch resources further. This program anticipates serving 40-50 households, depending upon repair costs.
•The Salvation Army Homeless Prevention Program ($500,000) - This 18-month contract will provide one-time assistance with large bill expenses related to an unexpected life occurrence (e.g. medical expenses, car repair, etc.) or rent, mortgage or utility assistance for no more than a three-month span
File ID: 2022-02458 2/7/2023 Consent Item 19.
in order to ensure housing stability. The Salvation Army will include budgeting classes, referral to the Financial Empower Center (FEC), job training referrals, and other resources, and/or identification of alternative affordable housing options to support the household in maintaining housing long-term.
This program estimates serving 50-90 households, depending upon level of need. •Step Up Homeless Prevention, Housing Coordination, Stability and Retention Program ($530,000)- This 12-month contract will provide assistance to low-income households who are unsheltered, at- risk of losing housing and/or other identified voucher holders who need help covering one-time costs, identifying housing options, completing the necessary application process, paying the required application fees, and associated moving/household costs. For more vulnerable households, landlord support and retention services will also be paired with this work. This program estimates serving approximately 100 people.
•Unseen Heroes/CLTRE First-time Homebuyer Loan Program ($500,000)- This 18-month contract will work with a pool of 50 or more households to improve their credit and budgeting skills in preparation for homeownership, including partnering in providing financial literacy classes, homebuyer education, and/or other Financial Empowerment Center referrals. At least 25 households will work towards identifying the path to homeownership and will obtain down payment assistance, closing costs and/or secondary loan gap funding from the program to further opportunities for increased housing stability and inter-generational wealth-building. Unseen Heroes recently created its Community Development Corporation, CLTRE (there’s no culture without “U”) to focus on this work. The two organizations will work together to bring this program to fruition. This program will assist approximately 50 households with financial literacy, budgeting and credit repair, with 25 of those households following a pathway to homeownership.
Policy Considerations: The contracts recommended in this staff report carry out the City’s commitments within agreements surrounding Stockton Boulevard to provide housing anti- displacement and stabilization programming, and they incorporate other city objectives, like home energy efficiency and community equity. Programs being provided in these recommended contracts respond directly to the community survey completed last April, where respondents placed homeless prevention and home repair programs as their greatest needs. Homeownership opportunities also ranked highly amongst respondents, as noted above. City staff and its contract partners will work diligently to make these resources available quickly to support low-income households. In addition to these programs, Mercy’s 200-unit affordable housing development is under construction on Stockton, with at least 500 more affordable units to follow soon in various projects in the area.
With the affordable and mixed income housing developments in the Stockton Boulevard Area, the City has provided over $43.5 million to the development of affordable housing, well beyond its commitment of $29 million in the CBPA. These contracts program the first $2,030,000 of the $10,000,000 set-aside by the City and UC Davis for housing anti-displacement and stabilization programming. The City is starting with these contracts and will continue to evaluate the need for
File ID: 2022-02458 2/7/2023 Consent Item 19.
other programming, increased resources to these recommended contracts, and changes to these programs, based on program outcomes, and community response and feedback.
Economic Impacts: The City investment in these projects is estimated to infuse the economy with a minimum of 42 jobs, 24 direct and 18 indirect, with the provision of these programs. The greater economic impact will be stabilizing housing costs and preventing homelessness for approximately 250 households, reducing rent burden and other community costs for homeless and at-risk individuals, and providing a platform for additional income and spending capacity amongst these community residents.
Environmental Considerations: The City’s establishment of a funding mechanism for the Local Projects (contracts) is not a project pursuant to CEQA Guidelines section 15378(b)(4) because it qualifies as the creation of government funding mechanisms or other government fiscal activities, which does not involve any commitment to any specific project, which may result in a potentially significant physical impact on the environment.
Sustainability: The Home Repair Program incorporates $60,000 of additional grant funding and objectives to provide additional information and opportunities for low-income households to access full home electrification. This contract will work to further the City’s climate objectives to reach carbon neutrality by 2045 and expands the opportunity to low-income homeowners who are interested in reducing their carbon footprint and saving on the cost of utilities.
Commission/Committee Action: Not applicable.
Rationale for Recommendation: The contracts being recommended are by qualified organizations that responded to the City’s Request for Qualifications (RFQ) posting and are able to provide programming ranked high as a need by the community to be served. Staff is recommending these contracts in alignment with City commitments to provide housing anti-displacement and stabilization programming and to be responsive to the community’s voice on which programs to initiate first. By only programming just over $2 million of this funding to start, the City can continue to evaluate local needs and the outcomes of these programs in deciding how to program the additional funds.
Financial Considerations: On December 14, 2021, Council adopted Resolution No. 2021-0359, allocating $5 million from the City-Held Housing Trust Fund from the Measure U fund balance to the Stockton Boulevard Housing Anti-Displacement Program (I02189030) based on the commitments in the Community Benefit Partnership Agreement and related agreements. Sufficient funding is available for these four recommended contracts which will utilize $2,030,000 of the $5,000,000 set- aside by the City for this purpose. The additional $60,000 is being provided through a climate related USDN grant for full home electrification of two homes as part of the home repair contract, further leveraging this funding for community assistance and reinvestment into the local housing stock.
File ID: 2022-02458 2/7/2023 Consent Item 19.
Additional funding, including the additional $5,000,000 from UC Davis, will be programmed based on demand for/use of these programs and additional community input going forward.
Local Business Enterprise (LBE): All of the organizations receiving contracts have Sacramento- based offices and are well-connected to the local community.