REPORT TO COUNCIL
SUBJECT
Title
Action on Grant Agreements with Abode Services and Bill Wilson Center to administer the City’s Tenant-Based Rental Assistance Program
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 for up to a two-year period. 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. Case management services are provided to help participants connect with social services, get on waitlists for long-term 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.
Participants pay 30% of their adjusted gross income towards their total housing costs and the program subsidizes the balance. Criteria for eligibility includes 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) federal grant funds which are used to provide rental subsidies and deposits, 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 two-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 a one-year agreement with Abode Services to administer the program for a third year. The current agreement is scheduled to expire on June 30, 2019. In anticipation of the expiration of the City’s contract, staff issued a Request For Proposals (RFP) for administration of the TBRA Program on April 2, 2019. Submissions were due on April 30, 2019. Two respondents, Abode Services and Bill Wilson Center, submitted proposals.
DISCUSSION
After review of the two proposals, staff recommends approval of two one-year agreements (with options for a second year) to share administration of the City’s Tenant-Based Rental Assistance Program between Abode Services and Bill Wilson Center. The proposals from both agencies were very similar and both have an established track record of providing services to the Santa Clara community. Bringing on Bill Wilson Center to share in the administration of the TBRA program opens the program to an underserved population: Homeless youth with children and youth transitioning out of foster care.
Abode is currently case managing and providing subsidies for approximately 35 households. Abode will receive a higher amount of subsidy due to their current client load. Bill Wilson does not require as much of the funding as it will take time for them to ramp up services. All new clients will be assisted by Bill Wilson. It is expected that subsidies for new clients will not start until 2-3 months into the program year.
The one-year term will allow the City to evaluate the shared administration approach as well as the performance of each agency and make a decision about continued administration of the program based on that evaluation.
Abode Services and Bill Wilson Center will provide an array of housing services to ensure that eligible homeless or at risk of homelessness families identified through the county’s Continuum of Care queue and other partner agencies, can access the TBRA program. These services include, but are not limited to, assessment for eligibility, housing search and placement, housing quality inspections, practical tenancy training, permanent housing plan development, case management services, subsidy invoicing and payment, data collection and reporting.
It is estimated that Abode Services will assist up to 40 households, and Bill Wilson Center will assist up to 25 households during the contract period. The services and planned outcomes are more fully described in Exhibit A and Exhibit B of the attached agreements.
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 funds allocated to the City’s TBRA program total $1,340,000; $1,040,000 of HOME funds, $160,000 of City Affordable Housing Funds, and $140,000 of Housing Successor Funds. The Abode Services’ agreement will be for an amount not to exceed $850,000, and Bill Wilson Center’s agreement will be for an amount not to exceed $490,000. Funding for both agreements, effective July 1, 2019 through June 30 2020, are included as part of the Proposed FY 2019/20 Operating Budget and presented in the Annual Action Plan approved by the City Council on May 7, 2019. HOME funds are strictly reserved for deposits, subsidies, inspection services, income review, and background checks. The Special Revenue Funds cover case management and program administrative costs.
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
1. Approve and authorize the City Manager to execute a Public Service Grant Agreement with Abode Services for an amount not to exceed $850,000 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, 2019 through June 30, 2020, with an option to extend the terms of this agreement for a second year.
2. Approve and authorize the City Manager to execute the Public Service Grant Agreements with Bill Wilson Center for an amount not to exceed $490,000 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, 2019 through June 30, 2020, with an option to extend the terms of this agreement for a second year.
Staff
Reviewed by: Andrew Crabtree, Director, Community Development
Approved by: Deanna J. Santana, City Manager
ATTACHMENTS
1. TBRA Agreement (Abode Services)
2. TBRA Agreement (Bill Wilson Center)