DATE: May 21, 2024
TO: Board of Supervisors
SUBMITTED BY: Sanja Bugay, Director, Department of Social Services
SUBJECT: Agreement with RH Community Builders for Landlord Engagement and Risk Mitigation Fund Services
RECOMMENDED ACTION(S):
TITLE
1. Under Administrative Policy No. 34 for competitive bids or requests for proposals (AP 34), determine that an exception to the competitive bidding requirement under AP 34 is satisfied and a suspension of competition is warranted due to unusual or extraordinary circumstances, and that the best interests of the County would be served by entering into an agreement with RH Community Builders as the vendor is uniquely qualified to provide Landlord Engagement and Risk Mitigation Fund services; and
2. Approve and authorize the Chairman to execute an Agreement with RH Community Builders for Landlord Engagement and Risk Mitigation Fund Services, effective July 1, 2024, not to exceed five consecutive years, which includes a two-year base contract and three optional one-year extensions, total not to exceed $1,793,193.
REPORT
There is no Net County Cost associated with the recommended actions. Approval of the recommended actions will waive the competitive bid process for Landlord Engagement and Risk Mitigation Fund services and will allow the Department of Social Services (Department) to contract with RH Community Builders (RHCB) to provide Landlord Engagement and Risk Mitigation Fund services to landlords in Fresno and Madera counties to increase access to housing for individuals and families experiencing homelessness. This item is countywide.
ALTERNATIVE ACTION(S):
Should your Board elect not to approve the recommended actions, the Landlord Engagement and Risk Mitigation Fund agreement will expire June 30, 2024. The Department will lose the housing inventory maintained by this service, resulting in the loss of potential rental units that could aid in transitioning individuals and families experiencing homelessness to permanent and secured housing. Additionally, an allocation of the Homeless Housing Assistance Program (HHAP) round 3 (HHAP-3) funding has been set aside for the Landlord Engagement and Risk Mitigation Fund Services. Should the recommended actions not be approved, the Department will be unable to meet the HHAP-3 obligation deadline as well as not perform in accordance to the joint service plan developed in coordination with the regional HHAP recipient jurisdictions and submitted to the State as part of the HHAP-3 application.
SUSPENSION OF COMPETITION/SOLE SOURCE CONTRACT:
It is requested that the County find under AP 34 that an exception to the competitive bidding requirement is satisfied, and a suspension of competition is warranted due to unusual or extraordinary circumstances, as RHCB is able to provide the landlord engagement services and has partnered with the Department since the program’s inception in 2019 to provide these specific services. In 2019, the Landlord Engagement and Risk Mitigation Fund services were solicited through a Request for Proposal with no bids received. The Department sought out a local housing developer and property manager involved in the Fresno Madera Continuum of Care (FMCoC) to provide the requested services. RHCB has delivered effective Landlord Engagement services throughout the life of the program. From 2019 to the current contract year, through February 2024 (sixty-six percent of contract year), RHCB has secured a total of 531 housing units for homeless clients. RHCB has exceeded the expected goal of 333 units for this period. Additionally, RHCB has recruited and maintained a total of 65 landlords to rent to FMCoC households on an ongoing basis. RHCB has exceeded the expected goal of maintaining 25 landlords during this period. RHCB has proven to have the necessary knowledge and skills to successfully engage landlords, secure housing opportunities, and maintain positive relationships within the community. The Internal Services Department - Purchasing concurs with the Department’s assessment that this satisfies the exception to the competitive bidding process required by AP 34.
FISCAL IMPACT:
There is no increase in Net County Cost associated with the recommended actions. The maximum cost of the recommended Agreement ($1,793,193) will be fully offset with existing HHAP-3 and prospective rounds of HHAP funding (Round 5 and 6). Sufficient appropriations and estimated revenues will be included in the Department’s Org 5610 FY 2024-25 Recommended Budget and will be included in subsequent budget requests. Should anticipated rounds of funding not be realized, the Department would re-negotiate the terms of the recommended agreement to align with available funding. This would not occur until year two of the recommended agreement.
DISCUSSION:
RHCB provides two separate services for landlord recruitment and retention to house individuals and families experiencing homelessness. The primary service is Landlord Engagement; these are services intended to build relationships with local landlords and property management agencies and serve as an access point for landlords and agencies seeking to connect available units to individuals and families experiencing homelessness and in search of housing. As part of the Landlord Engagement services, RHCB also manages a local centralized housing inventory and listing process in which the listing is available to local homeless services agencies for locating housing placements for individuals and families experiencing homelessness. Secondary is the Risk Mitigation Fund, which is funding available to landlords to compensate for specific costs incurred by eligible individuals and families experiencing homelessness, such as excess damage to rental units or unpaid rent. The purpose of the fund is to incentivize landlords to relax screening criteria for people who are experiencing homelessness and who may have barriers to obtaining housing independently.
RHCB incorporates California Advancing and Innovating Medi-Cal (CalAIM) Community Support (CS) housing support services into the Landlord Engagement services to provide additional support to clients. As part of the CS program, CalAIM offers housing supportive services to Medi-Cal beneficiaries who may be experiencing homelessness or are at risk of homelessness. The CalAIM CS housing support services provided by RHCB include additional housing transition/navigation services to assist individuals and families with obtaining housing, tenant screening and housing assessment, housing tenancy and sustaining services, housing deposits, and communicating and advocating on behalf of the member with landlords. RHCB was also awarded funding through the CalAIM Health and Housing Incentive Program (HHIP) which allows for an expansion of these services within the FMCoC areas of Fresno and Madera. By leveraging CalAIM CS and HHIP, RHCB is able to expand Landlord Engagement Services to assist individuals and families experiencing homelessness to strengthen permanent housing placement opportunities
If approved, the recommended agreement will be effective July 1, 2024, with a two-year base contract and three optional one-year renewal terms. Either party, upon providing 30-days advance written notice, may terminate the agreement without cause.
ATTACHMENTS INCLUDED AND/OR ON FILE:
Suspension of Competition Acquisition Request Landlord Engagement
On file with Clerk - Agreement with RH Community Builders Landlord Engagement
CAO ANALYST:
Amina Flores-Becker