REPORT TO COUNCIL
SUBJECT
Title
Consideration of a Grant Agreement with Abode Services to administer the City’s Tenant-Based Rental Assistance Program (TBRA)
Report
BACKGROUND
[The City of Santa Clara’s Tenant Based Rental Assistance (TBRA) program assists homeless households and households in jeopardy of becoming homeless with an emphasis on assisting families with children and/or domestic violence survivors. The goal of the program is to assist participants in stabilizing their housing situation with housing search assistance, payment of housing deposits, and monthly rental subsidies. Further, case management services are included to help participants connect with social services, get on waitlists for affordable housing, develop financial budgeting skills, and improve employment/educational standing with the intent to help participants transition to a stable housing situation at the end of the program term. The program is designed to act as a “bridge” until participants enhance their self-sufficiency to the extent they can cover their full contract rent.
Participants pay 30% of their adjusted gross income towards their total housing costs and the program subsidizes the balance. Criteria for eligibility include families with:
• An income of 60% or less of Area Median Income (AMI); and
• Current or last place of residence in the City of Santa Clara, or
• Employment or a bonafide job offer in Santa Clara, or
• Children attending school in Santa Clara.
The TBRA Program is primarily funded through use of the City's Home Investment Partnership Act (HOME) grant funds which are used to provide rental subsidies, while case management activities and much of the administration costs are paid for with City Housing Funds.
On July 14, 2015, the City Council approved a three-year agreement with Abode Services to administer the City’s TBRA program (as detailed in Exhibit A, “Scope of Services”).
On September 26, 2017, the City Council approved Amendment No.2, renewing the Grant Agreement with Abode Services to administer the Program for a third year. The current Agreement is scheduled to expire on June 30, 2018.
DISCUSSION
[Staff recommends approval of a one-year Grant Agreement with Abode Services to administer the City’s Tenant-Based Rental Assistance Program to provide critical services to individuals and families who are homeless or at-risk of homelessness. Staff recommends a one year contract because Federal Home Investment Partnership Act (HOME) funding uncertainty will likely change the scope of the City’s TBRA program. The rationale for a sole source contract (Santa Clara City Code section 2.135.330(e)(2) is based on the identification of only two vendors that provide such services and the cost to both the City and the program’s clients caused by an administrative transfer. In addition, HOME Regulations (24 CFR § 92.2) specifically excludes the selection of TBRA program administrators from applicable federal procurement procedures and requirements. The Housing Staff has been working with Abode staff over the past three years to refine and expand the program to best meet clients’ needs, and Abode has hired new staff to meet program needs. The program has started to reach its capacity at 40 households and is just starting to see clients exit the program. It is difficult to truly evaluate the program until more clients exit the program and outcomes can be observed and measured. Furthermore, there is a substantial amount of staff work required to transition clients between vendors and ensure client data is transferred in a confidential manner. Most importantly, clients would have to transfer case management services, which could cause disruptions in services and negatively impact the program’s desired outcomes. Abode has agreed to the same pricing structure, and terms and conditions as the previous agreement. At the end of the one-year agreement term staff will re-evaluate the effectiveness of the program.
Abode Services will provide an array of housing services to ensure that families identified through City of Santa Clara, and other partner agencies, can access the TBRA program. These services include, but are not limited to, outreach and engagement, assessment for eligibility, housing/landlord location, housing placement, housing quality inspections, rent reasonableness assessment, practical tenancy training, permanent housing plan development, tenant lease addendum preparation, tenant-landlord mediation, income verification, subsidy invoicing and payment, data collection, reporting, and evaluation. It is estimated that up to 40 individuals and/or households will be assisted during the contract period. The services and planned outcomes are more fully described in Exhibit A and Exhibit B of the attached agreement.]
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 proposed TBRA agreement is for the 2018-2019 Fiscal Year and will be for a total of $1,258,000. This program is designed to utilize HOME funds to meet the City’s expenditure deadline by August 31, 2019. The proposed Agreement would be funded by the following sources: $958,000 of HOME funds, $140,000 of Housing Successor Funds (HS) and $160,000 of City Affordable Housing Funds (CAHF). HOME funds are strictly reserved for deposits, subsidies, inspection services, income review, and background checks while Special Revenue Funds cover case management and program administrative costs. These funding allocations were included in the Annual Action Plan approved by Council on May 8, 2018.]
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 agenda report 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
Approve and authorize the City Manager to execute the Public Service Grant Agreement with Abode Services to administer the City’s Tenant-Based Rental Assistance Program in an amount not to exceed $1,258,000, and all related documents for the provision of administrative services for the TBRA Program effective July 1, 2018.
Staff
Reviewed by: Andrew Crabtree, Director, Community Development
Approved by: Deanna J. Santana, City Manager
ATTACHMENTS
1. TBRA Agreement