Community Development Agency
www.santa-ana.org/community-development
Item # 11
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
November 19, 2024
TOPIC: Eviction Prevention Program Agreement with Families Forward, Inc.
AGENDA TITLE
Agreement with Families Forward, Inc. for the Administration of an Eviction Prevention Program (Non-General Fund)
RECOMMENDED ACTION
Authorize the City Manager to execute an agreement with Families Forward, Inc. to administer an Eviction Prevention Program for a one-year term beginning November 19, 2024 in an amount not to exceed $730,046 (Agreement No. A-2024-XXX).
GOVERNMENT CODE §84308 APPLIES: Yes
DISCUSSION
The City of Santa Ana (City) established the CARES for Tenants Program and successfully provided emergency rental assistance during COVID-19. The City received $9.88 million as part of the Emergency Rental Assistance Program (ERAP) established by the federal Consolidated Appropriations Act of 2021 to assist households unable to pay rent or utilities due to COVID-19. The City also received $20 million in ERAP funds from the COVID-19 Tenant Relief Act (SB 91) passed by the State on January 28, 2021.
A second allocation of ERAP funds (ERA2) from the U.S. Department of the Treasury (Treasury) provided an additional $14 million to the City with the majority directed towards the CARES for Tenants Program. There was $569,099.78 remaining in the City's CARES for Tenants Program and the Treasury is allowing the City to create an Eviction Prevention Program (Program) for these remaining ERA2 funds that must be spent by September 30, 2025.
The Program’s goal is to provide financial assistance to City residents facing eviction due to unpaid rent. To comply with the Treasury's regulations on administrative expenditures, City staff is including $141,630 in ERA interest funds and $19,316.22 in Housing Authority Issuer Fees to the remaining ERA2 funds for the Program. These additional funds will allow the City to contract with a service provider that can use up to 10% for administrative costs, while adhering to the Treasury’s requirements.
The procurement process for the Program began with the posting of a Request for Proposals on the City’s PlanetBids portal on July 3, 2024, which outlined the Program's objectives, eligibility criteria, and evaluation metrics for nonprofit organizations to submit
Eviction Prevention Program Agreement with Families Forward, Inc.
November 19, 2024
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proposals by July 24, 2024. The City received one proposal from Families Forward, which was evaluated by a selection committee of four City staff. Following this evaluation, Families Forward was selected due to their extensive experience administering similar programs in the City and Orange County, their approach to addressing the needs of at-risk tenants, and comprehensive measures for verifying eligibility and ensuring proper use of funds.
Families Forward will provide services to any individual or family from the City to prevent evictions, offering financial assistance for past-due rent payments for up to three months and up to 12 months of case management and supportive services, while prioritizing households and seniors in urgent need. The Program will evaluate annual income, risk of displacement, housing instability, household size, and heightened vulnerability situations (such as seniors on limited incomes) to ensure equitable support.
Families Forward will provide a CARE Team model with comprehensive services through case managers, housing resource specialists, career coaches, and mental health therapists tailored to the individual needs of each household. Outreach efforts will leverage Families Forward’s existing presence in the City, partnerships with local agencies, and community events to ensure broad access to the Program.
Families Forward estimates that the Eviction Prevention Program could serve 150 households or 387 individuals from the City (based on an average household size of 3.5 members). They anticipate that $568,476 of the funds will be available for direct rental assistance to these households, leading them to an average assistance cost of $3,790 per household. This estimate is based on recent patterns in rental assistance requests, including factors such as increased rates of eviction notices following even a single month of unpaid rent. By setting this average, Families Forward anticipates covering varying housing costs due to unit sizes, past-due amounts, and other needs.
During the grant terms, Families Forward expects assistance to be disbursed as follows:
Grant Quarter New Residents Served Expended Per Quarter Quarter 1 75 $77,500
Quarter 2 100 $220,000
Quarter 3 110 $385,000
Quarter 4 102 $568,476
Their approach includes tracking Key Performance Indicators (KPIs) to ensure timely distributions, targeting a 95% success rate for housing retention six months post- assistance. Their Data and Compliance Team will maintain a monthly dashboard to monitor the progress on these KPIs and adjust spending if necessary.
Families Forward was founded in 1984 as a community-based effort to house families experiencing homelessness. With offices in Santa Ana and Irvine, Families Forward serves both the Southern and Central Service Planning Areas. In the past year, Families Forward improved the lives of 14,325 people, preventing homelessness for 184 families, providing 23 families with bridge housing (safe and supportive housing, offering services and resources to help them regain stability), and offering prevention Eviction Prevention Program Agreement with Families Forward, Inc.
November 19, 2024
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services to over 1,500 individuals. Families Forward has annual budget over $12 million with a diverse funding base including government grants, private foundations, and corporate and community contributions. Families Forward operates a food pantry, mental health counseling, career coaching, and life-skills education. Families Forward earned Charity Navigator’s top 4-Star rating for 14 consecutive years (top 2% of rated charities nationwide), and their experience in managing public grants make them a good partner for administering the Program for the City.
FISCAL IMPACT
Funds for Emergency Rental Assistance ERA 2 – Payment to Subagent account (no. 17718701-69135) was appropriated in the prior fiscal year and was presented and approved by City Council as part of the City’s carry forward of unspent amounts from FY 2023-24 to FY 2024-25.
Remaining funds in the amount of $160,946.22 are budgeted and available in the FY 2024-25 budget. Any remaining balance not expended at the end of the fiscal year will be presented to City Council for approval of carryovers to FY 2025-26.
Fiscal
Year
Accounting Unit
– Account No. Fund Description Accounting Unit,
Account Description Amount
FY 24-25 17718701-69135 Emergency Rental
Assistance PG
ERA 2 - Payment
to Subagent $569,099.78
FY 24-25 13318780-69135 Housing Authority-
Issuer Fees
Housing Authority -
Issuer Fee - Payment
to Subagent
$19,316.22
FY 24-25 17718700-69135 Emergency Rental
Assistance PG
ERA - Payment
to Subagent $36,060.00
FY 24-25 17718701-69135 Emergency Rental
Assistance 2
ERA 2 - Payment
to Subagent $50,890.00
FY 24-25 17718702-69135 Emergency Rental
Assistance 2-State
ERA 2: State -
Payment to Subagent $54,680.00
Total $730,046.00
EXHIBIT(S)
1. Agreement for Eviction Prevention Program
2. Families Forward Eviction Prevention Program Proposal Submitted By: Michael L. Garcia, Executive Director of Community Development Approved By: Alvaro Nuñez, City Manager