DATE: December 14, 2021
TO: Board of Supervisors
SUBMITTED BY: Maria I. Aguirre, Interim Director, Department of Social Services
SUBJECT: Amendment to Agreement with RH Community Builders
RECOMMENDED ACTION(S):
TITLE
Approve and authorize the Chairman to execute Amendment No. 1 to Agreement with RH Community Builders LP, for the Emergency Rental Assistance Program extending the term by nine months from December 31, 2021 to September 30, 2022, with no change to the maximum compensation of $32,178,385.
REPORT
There is no additional Net County Cost associated with the recommended action. Approval of the recommended action will allow RH Community Builders LP (RHCB) to provide emergency financial assistance to residents of the County who were unable to pay rent and utility costs during the COVID-19 pandemic. This item is countywide.
ALTERNATIVE ACTION(S):
Should your Board decide not to approve the recommended action, the County will not have a vendor to administer the Emergency Rental Assistance Program (ERAP) past December 31, 2021. Additionally, if the County is unable to utilize ERAP funds, the allocation may be redistributed to other localities.
FISCAL IMPACT:
There is no increase in Net County Cost associated with the recommended action. The maximum compensation for the agreement is $32,178,385. All costs will be offset using funding from Emergency Rental Assistance Program - Round 1 (ERA1), $200,000 of the Coronavirus Aid, Relief, and Economic Security Act, and $1.3 million of the American Rescue Plan Act (ARPA) or similar funding. Sufficient appropriations and estimated revenues are included in the Department’s Org 5610 FY 2021-22 Adopted Budget and will also be included in subsequent budget requests.
DISCUSSION:
On April 5, 2021, the County Administrative Officer, acting as Emergency Service Director, executed Agreement No. 21-103, between the County and RHCB to begin ERAP. The initial agreement with RHCB included nine months of services, ending December 31, 2021. In accordance with ERAP guidelines, 90%, or $27,657,721 of the maximum compensation must be used solely on direct financial assistance for residents. The passage of ARPA extended the time limit to expend ERA1 funding until September 30, 2022. There remains sufficient ERA1 funding in the existing agreement to continue without additional funds. Working within the existing maximum compensation of the agreement, RHCB was able to revise their budget to meet the needs of the program and ensure services can be provided until September 30, 2022. The Department is currently planning for ERA2 and will return to your Board at a later date for use of those funds.
RHCB is subcontracting with Comprehensive Youth Services and Westside Family Preservation Services Network for ERAP outreach services. RHCB and the Department will continually re-evaluate the need for these subcontracted outreach services.
As of November 8, 2021, 2,537 applications have been approved for rental and/or utility assistance with an average claim of $5,616, totaling $14,248,522.
REFERENCE MATERIAL
BAI #9, February 23, 2021
ATTACHMENTS INCLUDED AND/OR ON FILE:
On file with Clerk - Amendment to Agreement with RH Community Builders
CAO ANALYST:
Sonia M. De La Rosa