REPORT TO COUNCIL
SUBJECT
Title
Action on a Public Service Grant Agreement with ABODE Services for Administration of the City’s Tenant-Based Rental Assistance Program (TBRA) and Related HOME Fund Budget Allocations
Report
COUNCIL PILLAR
Promote and Enhance Economic, Housing, and Transportation Development
BACKGROUND
The City’s Tenant-Based Rental Assistance (TBRA) Program assists households with income levels at or below 60% of the Area Median Income and that are homeless or in jeopardy of becoming homeless, with an emphasis on helping families with children. The goal of the program is to help participants obtain housing and avoid homelessness. The program is designed to act as a “bridge” to self-sufficiency. Along with deposit and rental subsidy assistance, case management services are provided to help participants connect with social services, get on waitlists for long-term affordable housing, and develop other self-sufficiency skills.
The TBRA Program is funded with Housing and Urban Development (HUD) Home Investment Partnership Act (HOME) federal grant funds, local City Affordable Housing Funds (CAHF), and City Housing Successor Funds (CHSF). HOME funds are used to pay for subsidies, and deposits, while the local funds are used to pay for case management activities and some program administration.
Over the past three years, the City has relied upon two non-profits, Abode Services and Bill Wilson Center, to administer the TBRA program. HOME funding levels were high due to year over year carryover and this necessitated having two administrators. Prior year carryover amounts have diminished and now the City requires only one administrator.
In January 2023, the City issued a 2023-2025 Notice of Funding Availability (NOFA). ABODE services applied to administer the City’s TBRA program in response to the NOFA. On May 9, 2023, the City Council approved the 2023-2024 HUD Annual Action Plan which allocated up to $827,242 in HOME funds to ABODE services for the 2023-2024 fiscal year with the goal of providing tenant based rental assistance and case management to up to 30 households. See Attachment 1 to read the 2023-2024 Annual Action Plan.
DISCUSSION
Staff is seeking Council approval to execute a new one-year agreement with ABODE Services which will implement the City Council’s approved 2023-2024 HUD Annual Action Plan.
The TBRA program is one of the City’s key implementation tools to achieve the City’s Consolidated Action Plan (Con Plan) goal for use of HUD funding to address the need for affordable housing. The program will serve approximately 20-30 unduplicated households. City Council approval will allow the City to continue to administer the TBRA program in partnership with ABODE Services.
The proposed contract allows for a one-year extension as clients may start the program at any point during the fiscal year and may need to continue assistance into the next fiscal year. Authorization to extend for a second year would be subject to the subrecipient’s successful performance in the first year, the availability of funds from the U.S. Department of Housing and Urban Development for the HOME program, and the appropriation of HOME funds by the City Council for FY 2024/2025.
The number of clients served in year one is a conservative estimate because household sizes, actual rent and deposit costs, and the duration of assistance can vary by household. Staff must ensure there are sufficient funds to support existing clients before adding new ones.
All final agreements and any amendments will be in final forms approved by the City Attorney.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(5) in that it is a governmental organizational or administrative activity that will not result in direct or indirect changes in the environment.
FISCAL IMPACT
The 2023-2024 Annual Action Plan, approved by City Council on May 9, 2023, details the funds allocated to the TBRA program. Funding for this agreement will be effective July 1, 2023 through June 30, 2024. This funding is appropriated in the FY 2023/24 and FY 2024/25 Adopted Biennial Operating Budget, approved by the City Council on June 27, 2023.
FUND TOTALS HOME CAHF CHSF
ABODE Services $827,242 $160,697 $140,000
COORDINATION
This report has been coordinated with the Finance Department and the City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any report to council may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov <mailto:clerk@santaclaraca.gov> or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
1. Authorize the City Manager to negotiate and execute a new Public Service Grant Agreement with ABODE Services for an amount not to exceed $1,127,939 to administer the City’s Tenant-Based Rental Assistance Program, and all related documents for the provision of administrative services for the TBRA Program effective July 1, 2023 through June 30, 2024 contingent upon available funding and appropriation of funds;
2. Authorize the City Manager to execute amendments to the Agreement including increasing maximum compensation and extending the term through June 30, 2025, contingent upon available funding and appropriation of funds; and
3. Authorize and direct the City Manager to make proportional adjustments to the HOME Fund allocations in the event that the City's Final FY 2023/24 and 2024/25 Award Amount is different than the projected amount, such that each project will receive a proportional allocation of the recommended amount, subject to the appropriation of funds and after the City’s administration set-aside and CHDO set-aside is calculated.
Staff
Reviewed by: Andrew Crabtree, Director, Community Development
Approved by: Jovan Grogan, City Manager
ATTACHMENTS
1. 2023-2024 Annual Action Plan
2. 2023-2024 Abode Services TBRA Agreement