REPORT TO COUNCIL
SUBJECT
Title
Action on an Agreement for Services with Bill Wilson Center for Administration of the City's Emergency Rental Assistance Program and Approval of Related Budget Amendment [Council Pillar: Promote and Enhance Economic, Housing, and Transportation Development]
Report
BACKGROUND
As an "entitlement jurisdiction," the City of Santa Clara receives annual funding from the United States Department of Housing and Urban Development (HUD) in the form of Community Development Block Grant (CDBG) and Home Investment Partnerships Program (HOME) funds. CDBG funds are used to provide public services to Santa Clara's low-income residents and funding for capital improvement projects. HOME funds are generally used for the development of affordable housing programs.
In addition to its normal annual entitlements for HOME and CDBG, the City anticipates receiving two one-time CDBG entitlements for 2020-2021 totaling approximately $1,500,000. These entitlements are part of the $2.2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) stimulus package to help address the COVID-19 Crisis. In response, staff is developing an Emergency Rental Assistance Program (ERAP) to assist low-income Santa Clara residents affected by COVID-19. The program is meant to provide one-time emergency financial assistance to low-income families and individuals who incurred rental arrears beginning on April 1, 2020. Program applicants will be asked to verify that arrears were incurred due to substantial impacts to income caused by COVID-19. The City's Eviction Moratorium allows tenants who are financially affected by COVID-19 to avoid eviction if they are not able to pay their rent; however, once the moratorium ends, many residents will have significant arrears and become at risk of homelessness.
DISCUSSION
The City of Santa Clara's Emergency Rental Assistance (ERAP) program will assist low-income households that are at <60% of Area Median Income (AMI), with rental...
Click here for full text