DATE: January 12, 2021
TO: Board of Supervisors
SUBMITTED BY: Delfino E. Neira, Director, Department of Social Services
SUBJECT: Retroactive Agreement with RH Community Builders for Project Homekey Rapid Rehousing Services
RECOMMENDED ACTION(S):
TITLE
1. Make a finding that it is in the best interest of the County to suspend the competitive bidding process consistent with Administrative Policy No. 34 for unusual or extraordinary circumstances as RH Community Builders had the capacity to begin offering rapid rehousing services on January 1, 2021.
2. Approve and authorize the Chairman to execute a retroactive Agreement with RH Community Builders, for rapid rehousing services at the County-operated Homekey site, Crossroads Village, effective January 1, 2021 through June 30, 2021 ($965,017).
REPORT
There is no additional Net County Cost associated with the recommended actions, which will allow RH Community Builders (RH) to provide rapid rehousing services in accordance with the California Department of Housing and Community Development (HCD)’s Project Homekey. The cost of these services will be offset with allocated County Emergency Solutions Grant -Coronavirus (ESG-CV) funds. This item pertains to a location in District 2.
ALTERNATIVE ACTION(S):
There is no alternative action. If your Board does not approve the recommended actions, the County will not meet occupancy requirements set forth in HCD’s Standard Agreement 20-HK-00007 and will be unable to house those experiencing homelessness.
SUSPENSION OF COMPETITION
The Department requests to suspend the competitive bidding process consistent with Administrative Policy No. 34 for unusual or extraordinary circumstances. In order to meet occupancy requirements, set forth in HCD’s Standard Agreement 20-HK-00007, the Department is required to begin placing clients in the Crossroads Village in early January 2021. A minimum of 50% of the units at the Crossroads Village need to be occupied within 30 days of close of escrow and fully occupied within 90 days of close of escrow. As there is not sufficient time for a competitive bid process, the Department is requesting a six-month agreement with RH Community Builders to immediately begin serving clients. The Internal Services Department - Purchasing concurs with the Department’s request to suspend the competitive bidding process. Upon approval of the recommended actions, the Department will issue a Letter of Interest (LOI) for these rapid rehousing services and will subsequently go out to bid if more than one response is received.
RETROACTIVE AGREEMENT
The recommended agreement is retroactive to January 1, 2021 due to delays in receiving the executed agreement and funding from HCD.
FISCAL IMPACT:
There is no increase in Net County Cost associated with the recommended actions. The maximum amount of the agreement is $965,017 and will be offset using ESG-CV funds. Sufficient appropriations and estimated revenues are included in the FY 2020-21 Adopted Budget for Social Services Org 5610. There are no pending invoices for the retroactive period.
DISCUSSION:
Project Homekey is the next phase in the State’s response to protecting Californians experiencing homelessness who are at high risk for serious illness and are impacted by COVID-19. Administered by HCD, Homekey funding was made available to local public entities within California to purchase and rehabilitate housing including hotels, motels, vacant apartment buildings, and other buildings and convert them into interim or permanent, long-term housing.
On October 6, 2020, your Board authorized an agreement with HCD to provide Federal Coronavirus Relief Funds to acquire, rehabilitate and convert the old Smugglers Hotel, located at the southwest corner of Blackstone and Dakota Avenues in Fresno, into Crossroads Village. The site must provide interim housing and be occupied at least 50% within 30 days of close of escrow and fully occupied within 90 days of close of escrow, with a plan to convert to permanent housing. Interim housing funds would be identified within the Department’s existing State or Federal COVID-19 allocations.
RH will operate a project-based rapid rehousing program for 50% (83 units) of the total units at the Crossroads Village. Program services will include case management, rental assistance, and renter’s education. Services will target individuals or families that are experiencing homelessness in Fresno and Madera Counties and have demonstrated the ability to continue progressing towards unsubsidized housing or those who are also at risk of serious illness from COVID-19.
If approved, the recommended agreement will be effective January 1, 2021 through June 30, 2021. The agreement may be terminated without cause by either party upon providing 30-day advance written notice.
REFERENCE MATERIAL:
BAI, #7.1, October 6, 2020
ATTACHMENTS INCLUDED AND/OR ON FILE:
Suspension of Competition Acquisition Request
On file with Clerk - Agreement with RH Community Builders
CAO ANALYST:
Sonia M. De La Rosa