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PUBLIC HEARING
City of San Bernardino
Request for Council Action
Date: February 19, 2025
To: Honorable Mayor and City Council Members
From: Tanya Romo, Acting City Manager
Gabriel Elliott, Director of Community Development & Housing Department: Community Development & Housing
Subject: Notice of Funding Availability (NOFA) for the Rapid Rehousing Program under the Encampment Resolution
Fund (ERF) (All Wards)
Recommendation:
It is recommended that the Mayor and City Council of the City of San Bernardino, California:
1. Conduct a Public Hearing to obtain citizens’ comments on the proposed Notice of Funding Availability (NOFA) for the Rapid Rehousing Program under the Encampment Resolution Fund (ERF) initiative.
2. Authorize the City Manager or designee to take any further actions and execute any further documents as necessary to effectuate the administration of the ERF3 program.
Executive Summary
The Notice of Funding Availability (NOFA) for the Rapid Rehousing Program under the Encampment Resolution Fund (ERF) initiative aims to address homelessness within the 5.2-mile prioritized encampment area along Waterman Avenue by transitioning 60 individuals into permanent housing. This NOFA invites qualified organizations to implement the program through two key components: a Procured Subcontractor, funded at $600,000 to provide housing placement, case management, and landlord engagement, and Rental Assistance and Landlord Incentives, funded at $792,432 to cover security deposits, six months of rent for 60 units, and one-time financial incentives for landlords. By combining housing placement services with direct financial support, the program promotes long-term stability and successful community reintegration.
Background
The Encampment Resolution Fund (ERF) Program, authorized by Senate Bill (SB) 197 2 5
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(Chapter 70, Statutes of 2022) and funded through SB 101 (Chapter 12, Statutes of 2023), was created to address critical needs of unhoused individuals residing in encampments across California.
Chronology
The California Interagency Council on Homelessness (Cal ICH) released the Notice of Funding Availability (NOFA) for Round 3 on November 27, 2023, with an appropriation of $400 million.
On February 1, 2023, the Mayor and City Council unanimously voted to adopt Resolution No.2023-028, declaring a Homelessness State of Emergency in response to a growing statewide and regional homelessness crisis.
In December 2023, the City’s outreach team counted approximately 200 people residing in the 5.2-mile prioritized encampment area. The 2023 Homeless Count Report provides concerning insights into the demographic makeup of this population:
The encampment population includes individuals, couples, and their animal companions. Addressing their needs necessitates coordinated intervention from both the City and County.
On January 30, 2024, the City submitted its application for the Round 3 ERF-3-R program to Cal ICH. This application outlined the City’s strategic approach to addressing homelessness in its most vulnerable areas, specifically focusing on large- scale encampments within a 5.2-mile corridor along Waterman Avenue.
On April 18, 2024, the City was notified of its $4,569,511 award.
On September 4, 2024, the Mayor and the City Council adopted Resolution 2024-201 reaffirming the declaration of a Homelessness State of Emergency. This restated the City Manager’s powers, allowing them to enter into contracts, pursue grants, and obtain emergency funding from state and federal entities to create additional shelters, add interim housing, and obtain emergency funding as it becomes available.
On December 4, 2024, the Mayor and City Council unanimously voted to accept ERF- 3-R funds and approved the City’s plans to launch its ERF3 program which includes hiring additional staff, entering into direct Agreements for interim housing, mobile showers and prevention/diversion services as well as issuing a NOFA for rapid rehousing (RRH).
Discussion
The purpose of this Public Hearing is to announce the availability of funding and present a PowerPoint to provide an overview of the program, its scope of work, and the eligibility criteria for applicants. The City’s ERF-3 Rapid Rehousing Program outlined in the NOFA seeks to achieve housing stability for 60 individuals through two key components: a procured subcontractor to provide housing placement services and rental assistance with landlord incentives to secure and sustain housing. 2 5
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The Procured Subcontractor, funded at $600,000 will oversee housing placement services, including case management, housing navigation, landlord engagement, and linkage to supportive resources. This provider will ensure that individuals are placed in housing and receive ongoing support to maintain stability.
The Rental Assistance and Landlord Incentives component will provide financial support to facilitate permanent housing placements. Rental subsidies will cover six months of rent and security deposits for 54 one-bedroom units at $1,611 per month and 6 two-bedroom units at $2,010 per month, totaling $693,378. Additionally, landlord incentives will offer one-time financial assistance to property owners—$1,611 per one- bedroom unit and $2,010 per two-bedroom unit—to encourage participation, totaling $99,054.
Key Program Details
Total Funding Amount: $1,392,432
Procured Subcontractor (Housing Placement Services): $600,000 Rental Subsidies: $693,378
Landlord Incentives: $99,054
Contract Term: Through June 30, 2027
Application Deadline: February 26, 2025, at 3:00 P.M.
Eligible Applicants and Evaluation Criteria:
The NOFA is open to qualified organizations, including nonprofit organizations, community-based organizations, and entities with demonstrated experience in Rapid Rehousing programs. Applicants must have expertise in securing rental housing, providing rental assistance, delivering case management services, and supporting individuals transitioning to permanent housing. The City will evaluate proposals based on organizational capacity, experience in housing-focused interventions, financial management capabilities, and data management proficiency in systems such as HMIS and CES.
Project Timeline and Obligation Deadline:
Per the ERF-3 Standard Agreement, all awarded funds must be fully obligated by June 30, 2025. The Rapid Rehousing Program is a structured initiative through June 30, 2027, ensuring compliance with this requirement while maintaining a sustainable transition plan for program participants. Originally designed as a 36-month program, the implementation timeline was impacted by delays in HCD issuing the Standard Rapid RehousingTotal BudgetDelivery of Permanent Housing (Procured Subcontractor)$600,0001 contract Procured subcontractor$600,000Rapid Rehousing$792,43254 One-bedroom housing units$608,9586 Two-bedroom housing units$84,42060 Placements$99,054Grand Total$1,392,432 2 5
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Agreement. As a result, while the contract term remains through June 30, 2027, the program's operational period has been shortened from its original timeframe.
Cost Escalation and Extended Rental Periods:
There are no provisions included in this funding allocation to accommodate cost escalations or extended rental periods beyond six months. The program operates within the defined budget and timeframe, requiring strict adherence to the approved financial parameters.
Marketing and Outreach Efforts for the NOFA:
To ensure broad awareness and accessibility, the NOFA was strategically marketed through multiple outreach channels. It was published for 10 days in both English and Spanish newspapers, specifically in San Bernardino County Sun (English) and El Chicano (Spanish), reaching a diverse audience and ensuring language accessibility.
Additionally, it was shared through social media platforms to expand visibility and disseminated via email notifications to the housing and homelessness network, ensuring that key stakeholders, service providers, and potential applicants were informed of the funding opportunity. The NOFA was also shared with the County’s Continuum of Care (CoC) Board and the Central Valley Regional Steering Committee and Homeless Partnership Network.
The ERF-3-R grant program emphasizes collaboration, sustained progress, and positive outcomes for unhoused individuals in the 5.2-mile prioritized area. The Rapid Rehousing Program will focus on providing comprehensive services, including:
1. Housing navigation and tenancy support.
2. Case management tailored to individual needs.
3. Landlord engagement and financial incentives.
These efforts complement the City’s broader homelessness response strategy, which includes securing permanent and interim housing for 110 individuals in the encampment area.
2021-2025 Strategic Targets and Goals
The ERF project aligns with Strategic Target No. 3: Improved Quality of Life, by expanding accessibility to housing and services, improving living conditions for the unhoused population, and positively impacting the community.
Fiscal Impact
There is no General Fund impact with this item. The Encampment Resolution Fund initiatives will be funded by the $4,569,511 ERF-3-R grant award.
Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, California:
1. Conduct a Public Hearing to obtain citizens’ comments on the proposed the 2 5
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Notice of Funding Availability (NOFA) for the Rapid Rehousing Program under the Encampment Resolution Fund (ERF) initiative.
2. Authorize the City Manager or designee to take any further actions and execute any further documents as necessary to effectuate the administration of the ERF3 program.
Attachments
Attachment 1 Notice of Funding Availability (NOFA) ERF-3 Rapid Rehousing Attachment 2 ERF Standard Agreement.
Attachment 3 Rapid Rehousing Program - Proof of Notice - English Attachment 4 Rapid Rehousing Program - Proof of Notice - Spanish Ward:
All Wards
Synopsis of Previous Council Actions:
December 4, 2024 Approval of the Encampment Resolution Fund grant in the amount of $4,569,511.
January 21, 2025 Release of the NOFA for the Rapid Rehousing Program.