DATE: March 28, 2023
TO: Board of Supervisors
SUBMITTED BY: Sanja Bugay, Director, Department of Social Services
SUBJECT: CalWORKs Housing Support Program Amendments
RECOMMENDED ACTION(S):
TITLE
1. Approve and authorize the Chairman to execute a retroactive first Amendment to Agreement with the Housing Authority of the City of Fresno for administration of the California Work Opportunity and Responsibility to Kids Housing Support Program, effective March 1, 2023, extending the term by one year from June 1, 2023 through May 31, 2024 and increasing the maximum by $1,699,245 to a total of $3,733,245.
2. Approve and authorize the Chairman to execute a retroactive second Amendment to Agreement with Centro La Familia Advocacy Services for administration of the California Work Opportunity and Responsibility to Kids Housing Support Program, effective March 1, 2023, extending the term by one year from June 1, 2023 through May, 31 2024 and increasing the maximum by $911,000 to a total of $2,282,220.
REPORT
There is no additional Net County Cost associated with the recommended actions. Approval of the recommended actions will allow the Department of Social Services to augment funds for homeless services, including rapid rehousing assistance and related supportive services, for up to 102 eligible homeless families. The services are funded by the California Work Opportunity and Responsibility to Kids (CalWORKs) Housing Support Program (HSP) allocation. This item is countywide.
ALTERNATIVE ACTION(S):
Should your Board elect not to approve the recommended actions, there will be insufficient funding to continue direct program services to families currently receiving housing assistance through the CalWORKs HSP.
RETROACTIVE AGREEMENT:
The recommended Amendments are retroactive to March 1, 2023, due to a lack of funds to sustain services for the remainder of the term (through May 31, 2023). Since the inception of the Agreements in March 2020, housing costs have increased each year. In the last three years, according to the US Department of Housing and Urban Development (HUD), there was a twenty-seven percent (27%) increase in the Fair Market Rental Amount for apartments in Fresno. Many of the families served in the CalWORKs HSP have a larger household composition and require more bedrooms, resulting in higher rental costs. Recent inflation rates have also impacted the longevity of the funds used to make homes habitable for families. The vendors have tried to mitigate the funding shortfalls but can no longer serve families without a budget increase.
FISCAL IMPACT:
There is no increase in Net County Cost associated with the recommended actions. The maximum cost of the recommended Agreements ($6,015,465) will be fully offset with the CalWORKs HSP allocation. Sufficient appropriations and estimated revenues are included in the Org 5610 FY 2022-23 Adopted Budget and will be included in subsequent budget years.
DISCUSSION:
CalWORKs HSP is a program for families receiving CalWORKs cash assistance who are experiencing homelessness. The program provides eligible families with temporary shelter, case management, housing financial assistance, and housing location services, and is designed to rapidly move families from homelessness into safe permanent housing. HSP services are funded through a yearly allocation from the California Department of Social Services (CDSS).
On February 25, 2020, your Board approved Agreements 20-089 and 20-090 with the Housing Authority of the City of Fresno (HA) and Centro La Familia Advocacy Services (CLFA) to administer the CalWORKs HSP in Fresno County. On May 11, 2021, your Board approved the first Amendment to Agreement 20-090 with CLFA in response to an increased need for emergency shelter services for CalWORKs families amidst the COVID-19 pandemic.
The recommended Amendments seek to add funds for the remainder of the 2022-2023 term to Agreements with both vendors, as well as add an additional year, along with increased funding for the 2023-2024 term. With housing and program costs rising each year, the Department has had to work closely with vendors to pace services and expenditures. This year, the impact of inflation affected the vendors’ ability to provide fiscally comprehensive services well before the end of the term. The recommended actions will provide the funding necessary to continue the work of getting CalWORKs families safely housed.
Approval of the recommended Amendments will be retroactive to March 1, 2023. The Agreements may be terminated without cause by either party upon providing 30-day advance written notice.
REFERENCE MATERIAL:
BAI #47, May 11, 2021
BAI #60, February 25, 2020
ATTACHMENTS INCLUDED AND/OR ON FILE:
On file with Clerk - Amendment to Agreement with Housing Authority of the City of Fresno
On file with Clerk - Amendment to Agreement with Centro La Familia Advocacy Services
CAO ANALYST:
Ronald Alexander