DATE: JUNE 21, 2022
DEPARTMENT: COMMUNITY DEVELOPMENT
FROM: MEGAN HUNTER, COMMUNITY DEVELOPMENT DIRECTOR
BY: ROD POWELL, PLANNING MANAGER
TITLE: CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT 2022 EMERGENCY SOLUTIONS GRANT PROGRAM CONTINUUM OF CARE ALLOCATION RECOMMENDED MOTION:
A motion to approve the following Resolutions:
California Department of Housing and Community Development (HCD) Resolution authorizing the City of Salinas (City) as the Administrative Entity (AE) to receive and administer the 2022 Emergency Solutions Grants (ESG) Program Continuum of Care (CoC) grant; and Resolution of the Salinas City Council approving a) the 2022 HCD ESG Program CoC Allocation Notice of Funding Availability (NOFA) application submittal no later than August 17, 2022 and b) upon receipt of the allocated funds, establishment of appropriations in the Emergency Solutions Grant-CoC Fund Housing & Community Development Division budget totaling the amount awarded.
RECOMMENDATION:
Staff recommends that the City Council review staff proposed HCD ESG CoC funding allocations and approve the following Resolutions:
California Department of Housing and Community Development (HCD) Resolution authorizing the City of Salinas (City) as the Administrative Entity (AE) to receive and administer the 2022 Emergency Solutions Grants (ESG) Program Continuum of Care (CoC) grant; and Resolution of the Salinas City Council approving a) the 2022 HCD ESG Program CoC Allocation Notice of Funding Availability (NOFA) application submittal no later than August 17, 2022 and b) upon receipt of the allocated funds, establishment of appropriations in the Emergency Solutions Grant-CoC Fund Housing & Community Development Division budget totaling the amount awarded.
EXECUTIVE SUMMARY:
The City of Salinas has served as the ESG Administrative Entity on behalf of the local Salinas/Monterey/San Benito Counties CoC #506 since 2016. On March 7, 2022, in accordance with HCD’s two-year approval requirement, the City has again received HCD approval to serve as the AE for CoC #506 through the 2023 program year. The CoC Leadership Council is the final approving body regarding HCD ESG Program CoC Allocation funding. As a function of its HCD ESG AE role for the CoC, the City is required to execute and submit a Council Resolution authorizing and directing the submission of the required application and execution of City Funding Agreements/Contracts and related documents (e.g., environmental documentation, request for release of funds) to HCD in order to implement the 2022 HCD ESG CoC Allocation grant program. In anticipation of a yet to be determined June 2022 HCD ESG NOFA release date, HCD has advised AEs of an August 3, 2022 NOFA application submission deadline with final funding awards forthcoming in December 2022.
BACKGROUND:
In order to meet HCD’s established deadline, the City published its annual NOFA on January 22, 2022 with an estimated 2022 ESG CoC allocation of approximately $258,964. Following the February 23, 2022 NOFA application deadline, the City assembled a diverse rating and ranking panel to assist in the review of applications and prioritization of funding recommendations, received final approval from the CoC #506 Leadership Council on April 27, 2022, and presented funding recommendations to the City’s Housing and Land Use Committee on June 7, 2022.
DISCUSSION:
HCD ESG funds may be utilized within six primary funding components including Rapid Re-housing (min. 40%), Homeless Prevention, Street Outreach, Emergency Shelter, Homeless Management Information System (HMIS) and Program Administration. The following table shows the estimated funding amounts available per category for the 2022 HCD ESG Program.
Proposed Budget
ESG Component
% Allocation
Allocation Amount
Administration
2.7%
$7,079
Emergency Shelter
56.8%
$147,005
Street Outreach
Homeless Prevention
HMIS
Rapid Re-Housing*
40.5%
$104,880
Total
100%
$258,964
* Minimum 40% must be spent for Rapid Re-Housing.
The table below provides a timeline of applicable activities and dates associated with the City’s 2022 ESG CoC Program NOFA and application.
Proposed Timeline
Activity
Timeframe
City Publishes NOFA
January 22, 2022
NOFA Application Workshop
February 3, 2022
City NOFA Application Deadline
February 22, 2022
City NOFA Initial Rating and Ranking
March 2022
Leadership Council Approval of City NOFA Application Funding Recommendations April 27, 2022
City NOFA Application Submittal to HCD
August 3, 2022
HCD Award Notifications
TBD
HCD/City Standard Agreement Executed
TBD
City Funding Agreements Executed
TBD
DEPARTMENT COORDINATION:
This agenda item is solely administered by the City’s Community Development Department Housing Division. However, other City departments including Finance and Legal have contributed both staff time and resources. Additional, external coordination with outside agencies, such as HCD and staff of the local CoC #506 Leadership Council, has also occurred.
CEQA CONSIDERATION:
Not a Project. The City of Salinas has determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378). In addition, CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Because the proposed action and this matter have no potential to cause any effect on the environment, or because it falls within a category of activities excluded as projects pursuant to CEQA Guidelines section 15378, this matter is not a project. Because the matter does not cause a direct or foreseeable indirect physical change on or in the environment, this matter is not a project. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability.
STRATEGIC PLAN INITIATIVE:
HCD ESG Program CoC Allocation funding administered by the City allows the undertaking of a variety of programs that are instrumental in providing homeless and homelessness prevention services, furthering partnerships with public service organizations and addressing the human service needs of the City’s low-income, elderly, and special needs communities. The funding and its implementation support all of the City Council’s strategic goals including: Housing/Affordable Housing, Public Safety, Youth and Seniors, and Effective and Culturally Responsive Government.
FISCAL AND SUSTAINABILITY IMPACT:
There is no General Fund impact associated with this agenda item. HCD programs such as ESG CoC return tax dollars back to the community. This additional funding provides vital resources to assist the homeless population within Monterey and San Benito Counties.
ATTACHMENTS:
City of Salinas Resolution
State HCD Resolution
HCD ESG Funding Allocations
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