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CONSENT CALENDAR
City of San Bernardino
Request for Council Action
Date: October 2, 2024
To: Honorable Mayor and City Council Members
From: Rochelle Clayton, Acting City Manager;
Gabriel Elliott, Director of Community Development & Housing Department: Community Development & Housing
Subject: FY2024-2025 Emergency Solutions Grant (ESG)
Subrecipient Agreement – Salvation Army (All Wards)
Recommendation
It is recommended that the Mayor and City Council of the City of San Bernardino, California:
1. Approve FY 2024-25 Emergency Solutions Grant Program Subrecipient Agreement with Salvation Army; and
2. Authorize the City Manager or designee to take any further actions and execute any additional documents as necessary to effectuate the agreements.
Executive Summary
The City Council has approved the Fiscal Year 2024-25 Annual Action Plan (FY24-25 AAP) for submittal to HUD funding under CDBG, HOME, and ESG programs and has authorized the City Manager or designee to take any further actions and execute any further documents as are necessary to effectuate the submittal of the proposed HUD Fiscal Year 2024-25 Annual Action Plan and Certification to HUD. Under the guidance of legal counsel, the Housing Staff is returning to the City Council to seek separate approval for the CDBG, ESG, and HOME subrecipient Agreements.
Background
The United States Department of Housing and Urban Development (HUD) awards Community Development Block Grants (CDBG) to entitlement communities to carry out a wide range of community development activities directed toward revitalizing neighborhoods, economic development, and providing improved community facilities and services. Entitlement communities develop their own programs and funding priorities. The City of San Bernardino (City) is an entitled City and has been awarded Emergency Solutions Grants (ESG) pursuant to Subtitle B of Title IV of the McKinney- Vento Homeless Assistance Act, as amended by Division B of the Homeless 2 1
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Emergency Assistance and Rapid Transition to Housing Act of 2009, for the rehabilitation or conversion of buildings for use as emergency shelters for the homeless, for the payment of certain expenses related to operating emergency shelters, for essential services related to emergency shelters and street outreach for the homeless, and for homelessness prevention and rapid re-housing assistance. The HOME Investment Partnership Program is administered by HUD for the purpose of creating affordable housing for low-income households. The program aims to strengthen public-private partnerships, provide financial resources for affordable housing development, and promote community-driven solutions to meet local housing needs. A key element of the CDBG, ESG, and HOME Programs is the required subrecipient agreements for measuring the subrecipients’ performance and regulatory compliance.
At a public hearing on May 15, 2024, the City Council approved the Fiscal Year 2024- 25 Annual Action Plan (FY24-25 AAP) for submittal to HUD funding under CDBG, HOME, and ESG programs and authorized the City Manager or designee to take any further actions and execute any additional documents as are necessary to effectuate the submittal of the proposed HUD Fiscal Year 2024-25 Annual Action Plan and Certification to HUD.
For FY24-25, the City’s HUD allocation was a total of $4,164,936 with the following breakdown:
•CDBG Funding: $2,746,082
•HOME Funding: $1,160,208
•ESG Funding: $258,646
Both CDBG and ESG funding had reprogrammed funds from FY23-24 that had to be reallocated during the FY24-25 AAP. CDBG had $520,000 of reprogrammed funds allocated to the San Bernardino Public Works Department for infrastructure rehabilitation projects. ESG had $80,500 of reprogrammed funds allocated to the Salvation Army for Emergency Shelter Services, Homelessness Prevention, and HMIS, which is software needed to store, track, analyze, and monitor client data with the County of San Bernardino.
The FY24-25 AAP approved and awarded:
ESG Recipients
•Salvation Army $319,747.55
CDBG Recipients
•Inland Fair Housing and Mediation Board $80,000
•San Bernardino Police Department $331,912
•San Bernardino Public Works Department $1,309,341
•El Sol $250,000
HOME Recipients
•Neighborhood Partnership Housing Services $920,000
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Services
The ESG and CDBG subrecipients provide the following:
1.Salvation Army provides emergency shelter to homeless families with children in the form of shelter beds and motel vouchers. Salvation Army also assist with meal provisions, assistance with benefits, assistance with important documentation (birth certificate, social security card) job placement, family relocation and connections to social programs to help with housing stabilization.
2.Inland Fair Housing and Mediation Board provides landlord and tenant mediation in the form of education, outreach, enforcement and administrative services to address fair housing issues encountered by city residents and to assist the City in supporting and sustaining inclusive neighborhoods.
3.City of San Bernardino Police Department will develop a specialized unit known as the Quality-of-Life Team. This unit will be tasked with focusing on the living conditions of children and youth living in poverty. Funds will be used to hire a Management Analyst for tracking and monitoring of CDBG funds, along with the purchase of specialized vehicles for transportation of clients.
4.City of San Bernardino Public Works Department will use these funds for improving public infrastructure aimed to benefit low- and moderate-income communities in San Bernardino. These projects include improving roads for ADA compliance, improving public parks and facilities, and public safety enhancements.
5.El Sol will use the CDBG funds to assist in the development of their El Sol Recreation and Wellness Center in San Bernardino. This Recreation and Wellness Center will provide afterschool programs and activities to San Bernardino residents, prevention programs focusing on health, safety, and social issues, arts and cultural programs holding at least 10 arts and cultural events each year and increasing physical activity among center participants.
6.Neighborhood Partnership Housing Services will use the allocated HOME funds to serve as the Project Administrator for the City’s Owner-Occupied Rehabilitation Program (OORP), a program that allows the City to provide loans to owners of single-family residences whose income does not exceed 80 percent of the Area Median Income per HUD Low-Moderate Income (LMI) guidelines.
Discussion
The Emergency Solutions Grant Program Subrecipient Agreement will allow the Salvation Army to provide Emergency Shelter Services and Homelessness Prevention along with the use of HMIS for client tracking and monitoring. The breakdown for ESG funds allocated to the Salvation Army is as follows:
•Emergency Shelter Services: $155,187.60
•Homeless Prevention: $129,559.95
•HMIS: $35,000
•Grand Total: $319,747.55
Approval and execution of this subrecipient agreement is the next step in the process following Council’s adoption of the FY24-25 AAP, where $319,747.55 was allocated to 2 1
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the Salvation Army for Emergency Shelter Services, Homelessness Prevention, and HMIS. Subrecipient agreements formally outline the terms and conditions under which federal funds are provided, and HUD requires the execution of these agreements per 24 CFR 540.503 (a). The term of this agreement is from July 1, 2024, to June 30, 2025, which aligns with our City’s fiscal year. Per the direction of BB&K, the City was able to backdate the agreements to ensure the Salvation Army’s ability to expend the ESG funds in a timely manner.
During the term of this subrecipient agreement, the Salvation Army will provide the following services:
•Emergency Shelter Services – Operational and essential costs associated with providing provisional shelter for individuals and families within the targeted population. Funding provided for this activity aims to provide services to a minimum of 150 individuals experiencing homelessness.
•Homeless Prevention – Housing stabilization services and short/medium-term rental assistance as necessary to prevent an individual or family from moving into an emergency shelter.
•HMIS – Used for data entry and administration into the system needed for homeless client information.
In addition to the Salvation Army agreement, subrecipient agreements for Neighborhood Partnership Housing Services under the HOME Grant program and El Sol under the CDBG Grant program. Currently, the NPHS subrecipient agreement is with BB&K for review. The El Sol agreement is currently being reviewed by El Sol to ensure compliance can be completed with their project.
Regarding the subrecipient agreement with Inland Fair Housing and Mediation Board, it is important to clarify that this process operates within the established authority of the City Manager in accordance with the City of San Bernardino’s Purchasing Guidelines. The City Manager holds the authority to sign agreements up to $100,000 and this agreement valued at $80,000 falls within that limit. The City Council approved the allocation of funds to Inland Fair Housing on May 15, 2024, in the FY24-25 AAP. Following the approval from IFHMB and BB&K, the Acting City Manager signed the agreement on September 15, 2024.
As for funds allocated to San Bernardino Public Works Department and Police Department, under the guidance of BB&K, Interoffice Memorandums (IMOs) were created by City staff to facilitate collaboration between the Community Development Housing Department, Police Department and Public Works Department. This is due to these departments not being external subrecipients that need a subrecipient agreement. 2021-2025 Strategic Targets and Goals
The request to approve the Subrecipient Agreements aligns with Strategic Target No. 3:
Improved Quality of Life by reducing the burden of homelessness through enjoyment, collaboration, and partnership with other entities.
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Fiscal Impact
There is no General Fund impact.
Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, California:
1. Approve FY 2024-25 Emergency Solutions Grant Program Subrecipient Agreement with Salvation Army; and
2. Authorize the City Manager or designee to take any further actions and execute any additional documents as necessary to effectuate the agreements.
Attachments
Attachment 1 FY2024-25 Salvation Army ESG Agreement Attachment 2 FY2024-25 Annual Action Plan
Ward
All Wards
Synopsis of Previous Council Actions
April 15, 2020 The Mayor and City Council approved the City of San Bernardino’s Consolidated Plan for 2020-2025.
May 1, 2024 Proposed FY 2024-25 Annual Action Plan was taken to Mayor and City Council for public comment and for City Council to review propose subrecipients.
May 15, 2024 Mayor and City Council approved FY 2024-25 Annual Action Plan.