REPORT TO COUNCIL
SUBJECT
Title
Public Hearing: Substantial Amendment to the FY2021 Annual Action Plan to Allocate $1,604,104 in Federal Housing and Urban Development (HUD) Grant Funds from the HOME American Rescue Plan Program and Approve Related Budget Amendment
Report
COUNCIL PILLAR
Promote and Enhance Economic, Housing and Transportation Development
BACKGROUND
The American Rescue Plan Program (ARP) is a one-time federal grant program intended to reduce homelessness and increase housing stability across the country by funding local jurisdictions to provide housing, rental assistance, supportive services, and non-congregate shelter to individuals or households who are homeless, at risk of homelessness, or otherwise vulnerable. These grant funds will be administered through HUD’s HOME Investment Partnerships Program (HOME). On April 8, 2021 the Federal Government announced allocations for the $5 billion (ARP). The City of Santa Clara was allocated a total of $1,604,104.
This funding must serve five qualifying subpopulations:
1) Homeless as defined by the McKinney-Vento Homelessness Assistance Act;
2) At-risk of homelessness;
3) Fleeing or attempting to flee domestic violence;
4) Populations where providing supportive services or assistance would prevent the family’s homelessness or would serve those with the greatest risk of housing instability; and
5) Veterans and families that include Veterans.
To access these funds, the City is required to first submit a HOME ARP Allocation Plan. The HOME ARP Allocation Plan must be approved by the City Council as a substantial amendment to our HUD Fiscal Year 2021 Annual Action Plan by March 31, 2023. This is achieved by simply adding the HOME ARP allocation plan as an attachment to the Fiscal Year 2021 Annual Action Plan. If the City does not submit a plan prior to this deadline, HUD will reallocate the funds to other jurisdictions.
DISCUSSION
City staff have been working to prepare the City’s draft HOME ARP Allocation Plan (ARP Plan) with assistance from Homebase, the consultant that facilitated the City’s Homelessness Taskforce and that is currently drafting the city’s local homelessness response plan. The draft ARP Plan includes a needs assessment and gaps analysis to quantify and compare how much shelter, housing, and supportive services are needed with how much is actually available. The ARP Plan should be informed through local outreach. The draft ARP Plan also includes proposed changes to City programs to address the needs identified through this assessment, including expansion of the City’s Tenant Based Rental Assistance (TBRA) program, additional support services for victims of domestic violence, and a set-aside for administrative costs.
With City Council approval, staff will submit the HOME ARP Allocation Plan to the Department of Housing and Urban Development (HUD) by March 31, 2023. HUD will then review and approve the plan or ask for revisions before funding can be drawn down.
TBRA Program Expansion
The draft ARP Plan includes a proposed expansion to the City’s Tenant Based Rental Assistance Program which includes rental and deposit assistance along with case management services. HOME ARP would fund a second TBRA program with slightly different policies and procedures. The HOME ARP TBRA program would serve an additional 38 clients for one year or 19 clients for two years and would be open to all qualifying populations, not just households with children. Staff is proposing to broaden the client population served because there is a clear need among households without children, the HOME ARP program must serve all qualifying populations, and because HOME ARP makes it difficult to justify limitations for qualifying populations. The HOME ARP TBRA program would be offered on a first come first served basis to residents who are affiliated with Santa Clara. The regular HOME funded TBRA program would continue as is.
Domestic Violence Support Services
The draft HOME ARP Allocation Plan also proposes to set aside funds for supportive services, specifically for persons feeling or attempting to flee, domestic violence, dating violence, sexual assault, stalking, or human trafficking. The needs assessment demonstrated in this plan identified a clear gap for these services. In addition, funding these services with HOME ARP frees up more flexible CDBG public service dollars for the 2023-2025 period.
ARP Administration
The draft HOME ARP Allocation Plan will also be used to pay for planning and implementation of this one-time grant. See Attachment 2 for a detailed breakdown of the HOME ARP Allocation budget.
ENVIRONMENTAL REVIEW
This action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(a) as it has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.
FISCAL IMPACT
The City’s total HOME ARP allocation is $1,604,104. HUD’s approval of this allocation plan will allow the City to draw down up to 15% ($240,616) for planning and administration costs incurred by the City. The remaining $1,363,488 will be made available to fund programs identified in the City’s recent public services, capital projects and tenant based rental assistance program notice of funding availability. Below is the recommended budget amendment for the Housing and Urban Development Fund to recognize and appropriate this grant funding.
Budget Amendment
FY 2022/23
|
|
Current |
Increase/ (Decrease) |
Revised |
|
Housing and Urban Development Fund |
|
|
|
|
Revenue |
|
|
|
|
Grant Revenue |
$3,664,461 |
$1,604,104 |
$5,268,565 |
|
|
|
|
|
|
Expenditure |
|
|
|
|
HOME - American Rescue Plan Program project |
$0 |
$1,604,104 |
$1,604,104 |
COORDINATION
This report has been coordinated with the City Attorney’s Office and the Finance Department.
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>.
Building on earlier outreach conducted as part of the Homelessness Task Force process, Homebase has reached out for additional consultations with the Santa Clara Unified School District, Santa Clara County Housing Authority, Bill Wilson Center, Santa Clara Continuum of Care, Silicon Valley Independent Living Center, Nation’s Finest, Veteran’s Administration, and Law Foundation of Silicon Valley, and Health Care for Homeless Veterans (HCHV). Attachment 1 includes detailed notes from these consultation meetings.
RECOMMENDATION
Recommendation
1. Provide feedback and approve the substantial amendment to the 2021 Annual Action Plan and grant authority to the City Manager’s Office to submit a HOME ARP Allocation Plan to the Department of Housing and Urban Development (HUD) before the March 31, 2023 deadline; and
2. Approve the FY 2022/23 budget amendment in the Housing and Urban Development Fund to recognize grant revenue in the amount of $1,604,104 and establish the HOME - American Rescue Plan Program project in the amount of $1,604,104 (5 votes required).
Staff
Reviewed by: Andrew Crabtree, Community Development Director
Approved by: Office of the City Manager
ATTACHMENTS
1. HOME ARP Consultation Meeting Notes
2. Draft HOME ARP Allocation Plan