CITY OF SAN MATEO
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CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 30 Section Name: {{section.name}} Account Number: 34-3133 File ID: {{item.tracking_number}} TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Community Development Department
MEETING DATE: July 28, 2025
SUBJECT:
Emergency Rental Assistance Program - Adoption and Agreement RECOMMENDATION:
Adopt a Resolution to establish an Emergency Rental Assistance Program, appropriate $168,000 from the Low and Moderate Income Asset Fund for FY 2025-26, approve an agreement with Samaritan House to administer the program, and authorize the City Manager to execute the agreement in substantially the form presented.
BACKGROUND:
On April 21, 2025, the City Council held a Study Session on Tenant Protections and Anti-Displacement. This study session was held to support the implementation of the following policies contained in the City’s 2023-2031 Housing Element:
Policy H 3.4: Expand tenant protections in local ordinance to extend measures of AB 1482 related to relocation, documentation, and right to return policy in eviction cases. Policy H 3.6: Monitor rents, evictions, and tenant displacement citywide. Policy H 5.4.1: Establish tenant protections in local ordinance to extend measures of AB 1482 related to relocation, documentation, and right to return policy in eviction cases.
A frequent topic that came up during community outreach and engagement, as well as at the study session, was that nonpayment of rent was a key factor for many of the evictions in and around San Mateo. Following public comments and discussion, the City Council directed staff to prioritize the establishment of an emergency rental assistance program as part of the City’s efforts to address tenant protection and displacement, and to meet Housing Element commitments.
Background Research
Prior to the April 21 Study Session, staff met with legal service providers serving San Mateo clients to obtain data on eviction cases and general trends in caseloads over the last five years. These organizations provide services prior to formal eviction proceedings and legal aid in unlawful detainer (UD) cases. All reported a significant increase in caseloads. For example, Project Sentinel, a non-profit that provides services in fair housing, dispute resolution, and support to tenants facing eviction in San Mateo County, found a 24 percent increase in their caseload, from 346 cases in 2018 to 428 cases in 2023. Legal Aid Society of San Mateo County reported that their caseload on unlawful detainers went from 1,120 in 2019 to 1,520 in 2023, a 35 percent increase. This trend can be attributed in part, but not entirely, to the termination of COVID-19 pandemic- related rental assistance and eviction moratoria. The primary reason for most eviction cases in the County is related to nonpayment of rent.
A study of court records of eviction filings in San Mateo County published in February 2025 by Mills Legal Clinic at Stanford Law School supports these observations. AB 1482 appeared to contribute to a significant drop in “no-cause” evictions, with
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most evictions due to alleged nonpayment of rent. San Mateo (city), with 141 filings, was one of the four San Mateo County jurisdictions with more than 100 unlawful detainers in 2019 and 2023 combined, along with Daly City, East Palo Alto, and Redwood City.
Emergency Rental Assistance Programs
Staff reviewed emergency rental assistance programs in nearby jurisdictions to gather more information on best practices and how program administrators were selected. Jurisdictions with such programs did not launch a Request for Proposals (RFP), but sole sourced eligible administrators who have the capacity to effectively administer an emergency rental assistance program. Many jurisdictions selected core service agencies who previously ran rental assistance programs during the COVID-19 pandemic and had previous service agreements. There are eight core service agencies within San Mateo County who work in collaboration with the County’s Human Service Agency to provide individuals and families with basic emergency and support services to stabilize their living situations. Core Service Agencies provide clients with crisis intervention and referrals based on an evaluation of their needs and qualifications for assistance. By partnering with a core service agency, San Mateo residents will have access to receive the services these agencies provide and can address other disparities that impact their housing stability.
Cities with an Emergency Rental Assistance Program:
City Funding Source Amount Max per Household People Served Operator South
San Francisco
Housing
Successor Funds
$150,000 $4,5000 33 individuals YMCA
Half Moon Bay General Fund $50,000 $3,000 16 individuals Coastside Hope Daly City Housing
Successor Funds
$50,000 $5,000 10 individuals Daly City
Partnership
Redwood City General Fund $120,000 $5,000 24 individuals Fair Oaks Community Center
Foster City Measure K $35,000 – One
time
$3,000 11 individuals In-House
Brisbane Housing
Successor Funds
$100,000 –
One time
$4,000 25 individuals Samaritan House
*Foster City’s Emergency Rental Assistance Program is only available to residents living in Below Market Rate Units
The City of San Mateo partnered with Samaritan House during the COVID-19 pandemic (2020-2022) to utilize $961,000 of Community Development Block Grant CARES Act (CDBG-CV) funds for an emergency rental assistance program. The successful administration of this program led to the recommendation of Samaritan House to be the administrator for the City’s new Emergency Rental Assistance Program. Samaritan House is part of the core service agencies in San Mateo County that provide safety net services to help stabilize households seeking food, clothing, and emergency housing assistance. Aside from the services Samaritan House provides, they are also the only core service agency in the City of San Mateo. Samaritan House administers an existing emergency rental assistance program that uses various funding sources to help with rent payments. The City’s Emergency Rental Assistance Program will supplement this existing program to expand services and rental assistance to more City of San Mateo residents.
Through Samaritan House, individuals who apply to the emergency rental assistance program can be connected to other resources that can help stabilize their household and finances. Samaritan House provides a variety of services such as food distribution, case management, shelter services, housing case management, and financial empowerment services.
Samaritan House works in close collaboration with the County’s Human Services Agency to provide individuals and families with basic emergency and support services to stabilize their living situations. Core Service Agencies such as Samaritan House provide clients with crisis intervention and referrals based on an evaluation of their needs and qualifications for additional assistance.
Proposed Program Description
Staff developed program guidelines to set expectations for the operation of this Emergency Rental Assistance (ERA) Program
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based on the City’s prior program, current programs in nearby jurisdictions and input from Samaritan House staff. The program guidelines are included as Exhibit A in the Resolution (Attachment 1) and as follows:
Term
The ERA Program is proposed with a one-year term from July 1, 2025, to June 30, 2026, with the option to renew the service agreement for additional years, subject to City Council approval. Staff recommends that the initial term be for one year to function as a pilot for the program. If renewed, a two-year contract term may be considered.
Eligibility
Below are the requirements for potential applicants to be eligible for the ERA Program:
Gross Income meets the 60 percent or less of the County of San Mateo’s AMI of the Poverty Guidelines Gross Income is determined as amount received within the previous 30 days/1 month Verification of reason for financial assistance request (example: layoff notice, email from employer, etc.) Other Income Verification (example: letters or statements from public assistance (CalWorks), child support, Social Security, unemployment, employment offer letter, bank statements for the last 2-3 months) Proof of Address to establish residency (example: lease, utility bill, mail with client’s name received at the current address)
Verification of rental documents (example: Letter of Intent, Lease, Housing Voucher and/or Inspection Report with new address, etc.)
Proof of identification for each member of the household (example: picture of ID, birth certificate, etc.)
Staff received feedback that there can be barriers in meeting the documentation requirements; so Samaritan House will assist applicants, when needed, to support obtaining the necessary documentation.
Eligible Fund Uses
Assistance can be for “housing” (rent, security deposits) or both housing and utilities. If including utilities, verification of the utility bill must be submitted when applying.
Budget – Maximum Amount Per Household
Samaritan House shared that they incorporate approximately 12 percent of the budget for personnel and overhead costs.
To maximize the number of clients assisted, Staff determined that a budget of $168,000 would be an effective contribution to establish the ERA.
$150,000 for rental assistance
$18,000 for administrative expenses
With a $150,000 allocated for rental assistance, as directed by Council, and a maximum of $4,000 per household, at least 37 clients will be able to receive assistance. The maximum number of times a client can receive assistance is once a year (fiscal year), or until they reach the $4,000 threshold.
Assistance Payments
Payments will be made by Samaritan House to landlords/property managers and/or utility companies. Under no circumstances should the client receive the payment.
Intake Form
The intake form (in English and Spanish) can include questions on the client’s demographics, income information, reason for seeking assistance and amount, and household information.
This is a great opportunity to add questions that can contribute to local data collection on displacement. Examples of questions can be if the client has ever been evicted/displaced in San Mateo, do they live in overcrowded or unsafe conditions, and if they would like more information on tenant protections.
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Program Outreach
Staff will conduct outreach on the program utilizing the Housing website, social media, eNews, printed materials at city facilities, targeted flyering, and email notifications as well as through partner organizations and agencies. Samaritan House will also conduct their own outreach and share their marketing materials with the City. Outreach will be completed in both English and Spanish.
Monitoring
Samaritan House will submit a progress report to the City each quarter to highlight successes and challenges, and track how many San Mateo clients were served. Additionally, Requests for Reimbursement and Expense Summaries will be submitted each quarter to reimburse Samaritan House for their expenses related to the City’s ERA Program. Staff will review personnel documentation such as paystubs and time sheets. Samaritan House will also include copies of the checks issued with the intake form attached.
All monitoring reports templates will be provided to Samaritan House by City staff as part of program initiation. Reports will be submitted to the Community Development Department via email no later than 14 days after the end of each quarter.
Program Administration
Samaritan House will be the administrator of the ERA program in fiscal year 2025-26. A Professional Service Agreement with Samaritan House (Attachment 2) was developed to outline the contractual requirements and the scope of work of the program. The term of this agreement will go through July 31, 2026. Since this year will function as a pilot, staff will bring this item back to Council during the first half of 2026 with a report on how the ERA Program did with meeting its objectives, and bring potential options for how the ERA Program could be funded and run on a longer-term basis.
Housing Element and TOC Policy Compliance
This program supports Housing Element Goal H-3: Protection of Current Residents to Prevent Displacement. A rising issue identified in the Housing Element is the displacement of low-income renters in San Mateo. The increasing rental rates, along with the slow progress in incomes, disproportionally impacts communities who spend more than 30 percent of their monthly income towards rent. And when they are displaced, households often must leave their community in San Mateo to seek more affordable housing elsewhere.
To protect our existing communities, programs such as an emergency rental assistance program can prevent housing insecure households from having to leave the City entirely. With the intervention of a service operator, households can get more housing stability through the introduction of additional resources. Establishment of an emergency rental assistance program to prevent San Mateo residents from being displaced from their homes and be at-risk for homelessness supports implementation of Policy H 3.1: Prevent Homelessness.
This program is also in compliance with the Metropolitan Transportation Commission’s (MTC) Transit-Oriented Communities (TOC) Policy. To meet TOC Policy requirements, jurisdictions need to establish local policies that address minimum residential and commercial office densities for new development; affordable housing production, preservation and protection, and stabilizing businesses to prevent displacement; parking management; and transit station access.
By establishing an emergency rental assistance program, the City will meet the TOC’s Affordable Housing Protection Policy #5: Rental Assistance Program. This Protection Policy requires jurisdictions to provide a dedicated funding source and program for rental assistance to low-income households. The proposed rental assistance program meets the requirements for TOC Policy Compliance:
Provide a total allocation of at least $300,000 over a four-year One Bay Area Grant (OBAG) cycle. At the time of publication of this report, the current OBAG cycle is in its third round covering the years of 2023-2026. If funded for four years, this program’s budget will exceed the $300,000 threshold with a total of $672,000. Since we are approaching the end of the third OBAG cycle, this program will continue to comply during the fourth OBAG cycle. The program will be funded through the Housing Successor Fund, a local funding source that allows homelessness programs such as rental assistance to be funded.
This policy requires the eligibility of applicants to meet the 80 percent of AMI or less threshold, to be considered
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low-income. This program will be eligible to residents who meet the 60 percent AMI or less threshold. Bilingual outreach for this program will include promotion via the City’s website and other communication channels as a method to make information available to City of San Mateo residents.
BUDGET IMPACT:
The Housing Successor Fund, also known as the Low and Moderate Income Asset Fund (Fund 255), is proposed as the funding source for the Emergency Rental Assistance Program. To fund this pilot Emergency Rental Assistance Program, staff recommends a budget of $168,000 for FY 2025-26 to launch this pilot program, allocating up to $150,000 for rental assistance and $18,000 for administrative costs.
In addition to this program, $190,000 from Fund 255 was already allocated in the FY 2025-26 budget to support operations of the Police Department’s Homeless Outreach Team (HOT Team), which plays a critical role in connecting unsheltered individuals to housing and critical resources in San Mateo County.
Fund 255 is a public fund used by California “successor housing agencies” to manage and utilize revenues left over from dissolved redevelopment agencies. The City of San Mateo receives revenues to this fund from loan repayments, lease payments and sales of property previously acquired with Housing Set Aside funds. These funds are regulated to be used in the future for housing assistance to households whose income does not exceed 80 percent of the median income, as well as a portion that is allowed for administrative purposes.
Section 34176.1(a)(2)(A) of the California Health and Safety Code allows up to $500,000 of Housing Successor Funds per fiscal year, plus any percentage change in the cost of living, for homeless prevention and rapid rehousing services for individuals and families who are homeless or would be homeless but for this assistance, including the provision of short- term or medium-term rental assistance, contributions toward the construction of local or regional homeless shelters, housing relocation and stabilization services including housing search, mediation, or outreach to property owners, credit repair, security or utility deposits, utility payments, rental assistance for a final month at a location, moving cost assistance, and case management, or other appropriate activities for homelessness prevention and rapid rehousing of persons who have become homeless.
Together, the Emergency Rental Assistance Program and the HOT team funding represent a combined investment of $358,000 in FY 2025-26 in homelessness prevention efforts, which is within the $500,000 annual limit allowed under State law. Funding the two programs will expand services that help support individuals who are homeless or at-risk of homelessness.
Fund 255 has a current fund balance of $5,237,647 and received annual revenue of approximately $289,000 in FY 2024-25.
If this proposal is approved, the fund balance is expected to be moderately drawn down by approximately $69,000 in FY 2025-26.
Program Budget for 2025-26:
Line Item Low and Moderate Income Asset Fund (F255)
Administration $18,000
Rental Assistance $150,000
Total: $168,000
ENVIRONMENTAL DETERMINATION:
This resolution is not a project subject to CEQA, because it is an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. (CEQA Guidelines Section 15378(b)(5).)
NOTICE PROVIDED
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All meeting noticing requirements were met. Announcements on the implementation of the ERA program were shared through the City’s Housing and Policy Updates newsletter for the public. Staff also reached out to community partners who have engaged with the City on tenant protections issues to provide notification about this public meeting.
ATTACHMENTS
Att 1 – Proposed Resolution
Att 2 – Agreement
STAFF CONTACT
Jennifer Mora, Housing Specialist I
[email protected]
650-522-7230