City of Sacramento
City Council - 2PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2023-00266 3/14/2023 Discussion Item 3.
COVID-19 Response: Sacramento Emergency Rental Assistance (SERA) Program Update File ID: 2023-00266
Location/Council District: Citywide
Recommendation: Receive and File.
Contact: MaryLiz Paulson, SERA Program Director (916) 440-1310, Sacramento Housing and Redevelopment Agency
Presenter: MaryLiz Paulson, SERA Program Director (916) 440-1310, Sacramento Housing and Redevelopment Agency
Attachments
1-Description/Analysis
Description/Analysis
Issue Detail: In the Spring of 2020, the United States was impacted by the Coronavirus (COVID-19) pandemic, significantly impacting the nation and the City of Sacramento. These impacts continue to be felt in 2023, even as Governor Newsom issued a proclamation ending the State’s State of Emergency as of February 28, 2023, and the Biden Administration intends to end the national emergency on May 11, 2023.
The pandemic placed an enormous economic strain on families to pay rent and subsequently strained landlords and property owners to pay mortgages. As a result, many legislative bills have been passed to provide temporary relief to rental households and help them remain stably housed while avoiding accruing additional rental debt going forward.
Rent Relief Bills
On December 27, 2020, President Trump signed the Consolidated Appropriations Act of 2021, which included a $900 billion pandemic relief package. In addition, $25 billion was allocated to the U.S.
File ID: 2023-00266 3/14/2023 Discussion Item 3.
Department of Treasury (Treasury) to disburse emergency rental assistance program (ERAP) funds to local jurisdictions and the states to assist unemployed renters impacted by COVID-19 at the brink or facing eviction. The City of Sacramento received an initial allocation of $15,270,934 in federal funds and has received almost 20,000 applications for assistance from City residents since February 2020. The requests exceeded the funds available, so the City requested and received four (4) additional reallocations of funds totaling an additional $4,734,418, bringing the total to $20,005,352 received in federal funds.
On January 28, 2021, the California Legislature passed the COVID-19 Tenant Relief Act (SB 91), extending eviction protections through June 30, 2021, and created a mechanism to deploy $2.6 billion in ERAP resources (received from the Treasury) to assist California tenants and landlords impacted by COVID-19. As a result, the City of Sacramento received an additional $16,435,224 and an additional allocation of $1,777,463.79 from the State. In total, the City received $38,218,040 of federal and state funds combined to provide emergency rental assistance to families in the City of Sacramento.
On March 11, 2021, President Biden signed the American Rescue Plan Act of 2021, providing an addition $21.6 billion to assist households unable to pay rent and utilities due to the COVID pandemic. The City of Sacramento received an initial allocation of $12,083,176 and then two (2) additional re-allocations totaling $1,047,691 for a total of $13,130,867 in federal funds.
Governor Newsom signed Assembly Bill 832 on June 28, 2021, which extended eviction protections and increased the funds available for rental assistance. As a result, the City of Sacramento received $14,325,541 to provide rent and utility assistance to low-income families impacted by the pandemic.
The City received a total of $27,456,408 in federal and state funds from the American Rescue Plan Act to provide emergency rental assistance to families in the City of Sacramento.
Consolidated Appropriations Act of 2021 $38,218,040
American Rescue Plan Act of 2021 $27,456,408
Total City Emergency Rental Act Funds $65,674,448
To ensure continuity for residents, both the County of Sacramento and the City of Sacramento contracted with the Sacramento Housing and Redevelopment Agency to manage the Sacramento Emergency Rental Assistance (SERA) Program on their behalf.
Update on SERA2 Program
The application period for the SERA Program was open from February 25, 2021, to March 19, 2021, and received 12,800 applications. It reopened on May 11, 2021, and remained open until February 1, 2023, when it closed to City residents due to a lack of City funds.
The City received a total of $65,674,448 from both the Treasury and the State. All funds have been
File ID: 2023-00266 3/14/2023 Discussion Item 3.
The City received a total of $65,674,448 from both the Treasury and the State. All funds have been expended, and a total of 5,862 households received assistance so that they could remain in their homes.
There are still 4599 City applications pending funding. If any additional funding is received, the first priority will be to assist households under eviction, as referred to by the SERA Program from the courts. The next priority will be households who have submitted documents showing that they are in the process of eviction.
Policy Considerations: The proposed appropriation of funds is consistent with the goals and objectives outlined in federal and state guidelines to provide immediate relief to rental households nationwide. These funds are allocated by the Department of Treasury and the State of California for the sole purpose of providing emergency rental assistance relief to Sacramento City rental households impacted by COVID-19.
Economic Impacts: Not applicable.
Environmental Considerations:
California Environmental Quality Act (CEQA): The proposed action is not a project under CEQA pursuant to CEQA Guidelines §15378.
National Environmental Policy Act (NEPA): The proposed action is categorically excluded under NEPA pursuant to 24 CFR 58.35(b)(2).
Sustainability: Not applicable.
Commission Action: Not applicable.
Rationale for Recommendation: No action is required.
Financial Considerations:
Consolida
ted
Appropria
tions Act
of 2021
Funding Source Total Grant Amount
City Federal $ 15,270,934
City Federal reallocation #1 $ 645,495
City Federal reallocation #2 $ 1,749,895
City Federal reallocation #3 $ 1,561,148
City Federal reallocation #4 $ 777,880
City State $ 18,212,688
Total $ 38,218,040
American
Rescue
Act Plan
of 2021
City Federal $ 12,083,176
City Federal reallocation #1 $ 487,250
City Federal reallocation #2 $ 560,441
City State $ 14,325,541
Total $ 27,456,408
Total City Funds $ 65,674,448
File ID: 2023-00266 3/14/2023 Discussion Item 3.
Consolida
ted
Appropria
tions Act
of 2021
Funding Source Total Grant Amount
City Federal $ 15,270,934
City Federal reallocation #1 $ 645,495
City Federal reallocation #2 $ 1,749,895
City Federal reallocation #3 $ 1,561,148
City Federal reallocation #4 $ 777,880
City State $ 18,212,688
Total $ 38,218,040
American
Rescue
Act Plan
of 2021
City Federal $ 12,083,176
City Federal reallocation #1 $ 487,250
City Federal reallocation #2 $ 560,441
City State $ 14,325,541
Total $ 27,456,408
Total City Funds $ 65,674,448
LBE - M/WBE and Section 3 requirements: Not Applicable