ACTION:
____________________________
Clerk/Secretary
Department: City Manager Item No: D2
Prepared by: Jonathan Lung, Homeless Services Program Manager Meeting Date: August 8, 2023 Approved by: John Conley, City Manager Agenda Location: Discussion SUBJECT: AMERICAN RESCUE PLAN ACT CORONAVIRUS RENTAL ASSISTANCE PROGRAM RECOMMENDATION: Adopt City Council Resolution No. 2023- , approving the reallocation of unused American Rescue Plan Act funds to provide a Rental Assistance Program.
CORRELATION TO CITY COUNCIL GOALS: Homelessness and Housing.
PRIOR ACTION: On June 1, 2023, received an update on the implementation of the Strategic Plan to Address Homelessness, and motion by City Council to include a rental assistance program in the Strategic Plan to Address Homelessness to be available to Vista residents and investigate all funding sources, including general fund, grants, and funding sources already allocated and then to bring options back to City Council for approval (Vote: 5-0).
On August 24, 2021, adopted City Council Resolution No. 2021-139, accepting an allocation of $26,178,395 in American Rescue Plan Act (ARPA) Coronavirus State & Local Fiscal Recovery Funding (CSLFRF) from the United States Treasury; authoring the City Manager to approve and execute all related documents and contracts necessary to expend the allocation; and amending the Operating Budget for Fiscal Years 2021/2022 and 2022/2023 (Vote: 5-0).
On August 11, 2020, received an update on the Implementation of the Strategic Plan to Address Homelessness and adopted City Council Resolution No. 2020-138, approving an agreement with North County Lifeline for the Homeless Prevention Pilot Program for the Strategic Plan to Address Homelessness, and City Council Resolution No. 2020-139, approving an agreement with North county Lifeline for the Community Development Block Grant COVID-19 Emergency Rental Assistance Program for the Strategic Plan to Address Homelessness” (Vote: 5-0).
STATEMENT ON THE SUBJECT: On March 11, 2021, the $1.9 trillion American Rescue Plan Act (ARPA) was signed into law. ARPA included a $350 billion allocation of Coronavirus State & Local Fiscal Recovery Funds (CSLFRF) to state, local, territorial, and tribal governments. Metropolitan Cities were one of six CSLFRF recipient types and collectively received an allocation of $45.6 billion. The City of Vista was categorized as a Metropolitan City and was allocated $26,178,395.
The United States Treasury is overseeing the CSLFRF program and distribution of funds. CSLFRF funds may be spent in four expense categories: Public Health/Negative Economic Impacts, Premium Pay, Revenue Loss, and Investments in Water, Sewer, and Broadband.
AGENDA
REPORT
CITY COUNCIL
COMMUNITY DEVELOPMENT COMMISSION
SUCCESSOR AGENCY
BUENA SANITATION DISTRICT
JOINT POWERS FINANCING AUTHORITY
Approved above recommendation, adopted City Council Resolution No. 2023-146. Directed staff to increase the annual income limit from 60% to 65%.
Vote: 5-0.
MEETING DATE: August 8, 2023 PAGE 2
SUBJECT: AMERICAN RESCUE PLAN ACT CORONAVIRUS RENTAL ASSISTANCE PROGRAM On June 1, 2023, City Council directed staff to revise the Homelessness Prevention Pilot Program strategy of the Strategic Plan to Address Homelessness to a permanent Rental Assistance Program (Program) and consider available funding sources for its implementation. Staff have identified $1.4 million in funds in Vista’s CSLFRF allocation that are available to be reallocated towards an on-going Rental Assistance Program under the Public Health/Negative Economic Impacts expense category.
The purpose of the Program is to provide financial assistance and housing stability to low-income Vista families and individuals who are at risk of losing their housing. Services can include rental assistance, mortgage assistance, utility assistance, assistance paying delinquent property taxes, counseling and legal aid to prevent eviction and homelessness & emergency programs or services for homeless individuals, including temporary residences for people experiencing homelessness.
Program applicants will be deemed eligible if one or more household members has qualified for unemployment benefits or experienced a reduction in household income, incurred significant costs, or experienced other financial hardship during or due, directly or indirectly, to the coronavirus pandemic; one or more household members can demonstrate a risk of experiencing homelessness or housing instability; and the household income does not exceed 60% AMI. The household must have a documented substantial decrease in household income, as defined by the U.S. Treasury, due to health, employment, unforeseen automobile repair, unforeseen medical emergency, or out-of-pocket medical expenses as evidenced by the following:
•Termination Notice
•Payroll Check or Pay Stubs
•Bank Statements
•Medical Bills accompanied by medical provider notice of inability to work/required time off •Signed Letter from Employer explaining tenant’(s) changed financial circumstances •Unemployment Award Letter
•Self-Certification of tenant’s inability to pay the next month rent and/or utility bill In an effort to ensure the preservation of housing stability, applications will be accepted on a first-come, first-serve basis, and awards shall not exceed $10,000 per household. A maximum of six months of assistance will be awarded per household. Program funds will be disbursed directly to the landlord or property manager or utility provider. No funds will be disbursed to program applicants directly. Prior to the release of funds, the following documents must be submitted:
From the Landlord:
•Documentation of a current City of Vista Business License, if applicable; •W-9 for the Landlord receiving rental payment; and
•Signed affidavit affirming that the Landlord has not and will not receive payment for the same month(s) rent due for the same tenant from any other rental assistance, mortgage assistance or other CARES Act program.
From the Tenant:
•Executed Rental Assistance Agreement that includes a signed affidavit affirming that the tenant is not receiving rent from any other sources (rental assistance programs, CARES Act funds, sub- lessees, roommates, etc.).
Staff recommends approving the reallocation of unused ARPA funds in the amount of $1.4 million to provide an on-going Rental Assistance Program. The ARPA funds must be expended by December 31, 2026. Upon adoption, staff will release a Request for Proposals to solicit a qualified administrator of the Rental Assistance Program and will return for City Council approval of a formal agreement. 08/08/2023 D2 2 of 4
MEETING DATE: August 8, 2023 PAGE 3
SUBJECT: AMERICAN RESCUE PLAN ACT CORONAVIRUS RENTAL ASSISTANCE PROGRAM FISCAL IMPACT: City Council approval of the staff recommendation has no direct fiscal impact as ARPA funding has already been recognized in the ARPA CSLFRF Revenue Account (No. 1510023.427049).
EXHIBITS:
1.City Council Resolution No. 2023- , approving the reallocation of unused American Rescue Plan Act funds to provide for a rental assistance program
08/08/2023 D2 3 of 4
00029213 7
RESOLUTION NO. 2023-
A RESOLUTION OF THE CITY COUNCIL OF THE CHARTERED CITY OF
VISTA, CALIFORNIA, TO APPROVE THE REALLOCATION OF UNUSED
AMERICAN RESCUE PLAN ACT FUNDS TO PROVIDE FOR A RENTAL
ASSISTANCE PROGRAM
The City Council of the City of Vista does resolve as follows:
1. Findings. The City Council hereby finds and declares the following:
A. On August 24, 2021, City Council accepted an allocation of $26,178,395 in American Rescue Plan Act (ARPA) funding from the United States Treasury to aid public health and economic recovery from the COVID-19 pandemic and authorized the City Manager to approve and execute all documents, applications, contracts, and agreements needed to receive and obligate ARPA allocations.
B. On June 1, 2023, City Council directed staff to include a rental assistance program in the Strategic Plan to Address Homelessness.
C. $1.4 million in unused ARPA funds have been identified to be reallocated towards a Rental Assistance Program in accordance with the Strategic Plan to Address Homelessness.
2. Action.
A. The reallocation of ARPA funds is approved, and the City Manager is authorized to execute all related documents.
3. Adoption. PASSED AND ADOPTED at a meeting of the City Council of the City of Vista held on August 8, 2023, by the following vote:
AYES:
NOES:
ABSTAIN:
APPROVED AS TO FORM:
WALTER CHUNG, CITY ATTORNEY
By:
APPROVED
Walter C. Chung
20230725114929
JOHN B. FRANKLIN, MAYOR
ATTEST:
KATHY VALDEZ, CITY CLERK
By:
08/08/2023 D2 4 of 4
EXHIBIT 1