DATE: December 14, 2021
TO: Board of Supervisors
SUBMITTED BY: Maria I. Aguirre, Interim Director, Department of Social Services
SUBJECT: Authorizing Resolution for the California COVID-19 Rent Relief Program
RECOMMENDED ACTION(S):
TITLE
1. Adopt Resolution authorizing the Department of Social Services to accept an allocation up to $39,119,367.99 for the State Rental Assistance Program administered by the California Department of Housing and Community Development; and,
2. Authorize the Vice-Chairman to execute, upon review by County Counsel as to legal form and the Auditor-Controller/Treasurer-Tax Collector as to accounting form, the Standard Agreement, in substantially the same form as the draft included as Attachment A, with the California Department of Housing and Community Development for California COVID-19 Rent Relief Program funding to provide rental arrears and housing stabilization services, effective upon execution by the State representative through September 22, 2025.
REPORT
There is no additional Net County Cost associated with the recommended actions. Approval of the first recommended action will allow the Department of Social Services to complete an allocation acceptance process with the California Department of Housing and Community Development (HCD) to receive a State allocation for the second round of Emergency Rental Assistance (ERA2) funding. Approval of the second recommended action will allow the Vice-Chairman to execute allocation-related documents, including the Standard Agreement, once received from HCD and reviewed and approved by County Counsel and the Auditor-Controller/Treasurer-Tax Collector. This item is countywide.
ALTERNATIVE ACTION(S):
Your Board could choose not to approve the recommended actions; however, the Department will not receive the State allocation earmarked for the County to assist local renters who are behind on their rent due to economic impacts of the COVID-19 pandemic, leaving the funding to be redirected to other counties in California.
FISCAL IMPACT:
There is no increase in Net County Cost associated with the recommended actions. If approved, the Department will receive the State’s ERA2 allocation for the County. Funding will be available through September 30, 2025. The recommended resolution lists an amount three times the current allocation. HCD’s direction is to triple the estimated amount so that resolutions do not need to be revised if additional funds are awarded later. While the recommended resolution authorizes the County to receive up to $39,119,367.99, the County will initially receive $13,039,789.33 but could receive additional funds later should funds become available. The Standard Agreement will reflect the $13,039,789.33 allocation with the understanding that should additional funds become available, the Standard Agreement would be amended by HCD and sent to the County for execution. 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 February 23, 2021 the County Administrative Officer (CAO), acting as the Emergency Services Director, executed an agreement with the US Department of the Treasury (USDOTT), for the County to receive $13,900,330.20 for round one of Emergency Rental Assistance (ERA1). As of October 11, 2021, all of the USDOTT ERA1 allocation has been obligated to eligible households.
On March 11, 2021 the American Rescue Plan Act (ARPA) was enacted, which allowed for a second round of Emergency Rental Assistance (ERA2). The County has received $5,873,474 of the $14,683,685 allocated from the USDOTT. Your Board ratified the acceptance of the USDOTT award terms as executed by the CAO acting as the Emergency Services Director on May 24, 2021.
On April 13, 2021 your Board adopted Resolution No. 21-107 which allowed the County to accept a Block Grant Award from HCD, in a total amount not to exceed $49,734,164.64, which is triple the County’s ERA1 allocation from HCD. On October 13, 2021 the Department received $16,578,054.88 from HCD for ERA1.
With your Board’s approval, the Department will submit the recommended resolution for HCD ERA2 and process the Standard Agreement through the Vice-Chairman for signature, which will be first reviewed and approved by both County Counsel and the Auditor-Controller/Treasurer-Tax Collector. The Standard Agreement template has been provided to your Board for reference as Attachment A.
The recommended resolution utilizes HCD’s template and differs from the County’s standard resolution template. This template may not be modified by any party other than HCD.
REFERENCE MATERIAL
BAI #9, February 23, 2021
BAI # 50, August 10,2021
ATTACHMENTS INCLUDED AND/OR ON FILE:
Attachment A
On file with Clerk - Resolution
CAO ANALYST:
Sonia M. De La Rosa