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HomeMy WebLinkAbout60A - AMEND COVID-19 RESPONSE FUNDINGREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: AUGUST 18, 2020 TITLE: ADOPT A FIRST AMENDMENT TO THE COVID-19 RESPONSE FUNDING PLAN; AUTHORIZE APPROVAL OF AGREEMENTS TO IMPLEMENT THE PLAN; APPROVE AN APPROPRIATION ADJUSTMENT RECOGNIZING $11,598,442 OF EMERGENCY SOLUTIONS GRANTS PROGRAM COVID-19 FUNDS (NON -GENERAL FUNDS) CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 111 Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For Ifiel0191►111al III I /s/Kristine Ridge FILE NUMBER CITY MANAGER RECOMMENDED ACTION 1. Adopt a First Amendment to the COVID-19 Response Funding Plan for the allocation, administration and implementation of federal and state funding to respond to the coronavirus (COVID-19) pandemic to add $11,598,442 Emergency Solutions Grant Coronavirus Funds, subject to adjustment by the City Manager as needed in response to shifting needs and priorities not to exceed the amount of funds available (First Amendment to COVID-19 Response Funding Plan). 2. Direct the City Attorney to finalize and authorize the City Manager to enter into negotiations, execute agreements, and approve any other required actions necessary with various service providers, contractors, and sub -recipients, who will implement the First Amendment to the COVID-19 Response Funding Plan, subject to non -substantive changes approved by the City Manager and City Attorney. 3. Approve an appropriation adjustment recognizing a second allocation of Emergency Solutions Grants Program Coronavirus funds from the U.S. Department of Housing and Urban Development in the amount of $11,598,442 in revenue account No. 13518002-52000 and appropriating same to expenditure account Nos. 13518789-various. DISCUSSION On April 21, 2020, City Council adopted a COVID-19 Response Funding Plan for the allocation, administration and implementation of $6,486,644 in federal and state funding to respond to the coronavirus (COVID-19) pandemic including $1,385,224 in state Homeless Housing, Assistance and Prevention Program COVID-19 Funds, $3,374,017 in federal Community Development Block Grant Coronavirus Funds, and $1,727,403 in federal Emergency Solutions Grant Coronavirus Funds. Each federal and state grant source has its own state and federal requirements for 60A-1 Adopt First Amendment to COVID-19 Response Funding Plan August 18, 2020 Page 2 compliance purposes. On June 9, 2020, the U.S. Department of Housing and Urban Development (HUD) awarded the City with a second allocation of ESG-CV program funds in the amount of $11,598,442 as authorized by the CARES Act (Exhibit 1). In compliance with the federal regulations, these federal ESG-CV2 funds are to be used to prevent, prepare for, and respond to COVID-19 among individuals and families who are homeless or receiving homeless assistance and to support additional homeless assistance and homelessness prevention activities to mitigate the impacts of COVID-19. To most effectively address the needs of the community while complying with the eligible uses for this source of federal funds, staff has identified the following four general activities for the use of these funds: 1. Operating costs to start up the Year -Round Homeless Navigation Center and Recuperative Care Facility at 1815 Carnegie Avenue 2. Operating costs to extend the interim 200-bed shelter at The Link beyond October 31, 2020, while the new Homeless Navigation Center on Carnegie Avenue is under development 3. Eviction Prevention for Very -Low Income Families until August 2022 (Santa Ana Zero Eviction Program) 4. Eviction Defense Fund for Very -Low -Income Families qualified under Santa Ana Zero Eviction Program 5. Administrative Costs Allowance The costs to start-up the Year -Round Homeless Navigation Center and Recuperative Care Facility at 1815 Carnegie Avenue consist of payment to Illumination Foundation for on -going operations and services that will be provided. This is the same for the extension of the Link beyond October 31, 2020. In regards to the Eviction Prevention for Very -Low Income Families until August 2022, staff are tentatively referring to this program as the Santa Ana Zero Eviction Program, or Safely Home in Santa Ana as another possible name. The goal of this program is to ensure that no very -low income families are evicted for non-payment of rent in the City of Santa Ana until August 2022, the expenditure deadline for this source of funds. Following a procurement process, staff plans to enter into an agreement with a single nonprofit organization to provide assistance to any very -low income family who has been notified in writing that their right to occupy their current housing unit will be terminated. The partner organization will be required to income qualify the family as a very -low income household earning no more than 50% of the Area Median Income in compliance with the federal regulations for this source of funds. If the family is eligible and has been notified in writing that their right to occupy their apartment will be terminated, the City will be able to provide rental assistance paid to the family's landlord to ensure that the family remains stably housed. For the Eviction Defense Fund, if a landlord refuses to accept payment by the City through this program, the law firm contracted by the City for this program will provide legal services to the family to require the landlord to accept payment. The City will seek to inform the Court, in partnership with the contracted law firm, that the City has funds available to pay off the family's rent owed under their lease agreement such that the family not be legally evicted. The outcome 60A-2 Adopt First Amendment to COVID-19 Response Funding Plan August 18, 2020 Page 3 we intend to achieve is that zero very -low income families will be evicted for nonpayment of rent in the City of Santa Ana during and after this pandemic is over, until at least August 2022. These five general activities have been consolidated into a First Amendment to the COVID-19 Response Funding Plan adopted by City Council (Exhibit 2). The Plan provides more details on each activity that is proposed to be carried out with each source of funds. However, the Plan is subject to adjustment as needed in response to shifting needs and priorities so long as the amount of funds does not exceed the amount available. For example, staff may need to change one eligible activity to another eligible activity because there are insufficient funds in that activity account to fully carry it out, or there is less need for funding in one activity relative to another activity. Staff may also need to remove or replace an eligible activity entirely without returning to City Council for approval. The Plan may be adjusted in response to shifting needs and priorities to most effectively respond to the COVID-19 pandemic on behalf of the community, but the amount of funds available for expenditure of these new ESG-CV2 funds will not exceed $11,598,442. FISCAL IMPACT Approval of the appropriation adjustment will recognize $11,598,442 in the Emergency Solutions Grants-Coronavirus revenue account (no. 13518002-52000) for expenditure as follows: Fiscal Accounting Fund Accounting Unit, Amount Year Unit -Account Description Account Description FY 20-21 13518789- Emergency (Oct- Solutions Grant— ESG-CV2 $5,525,701 June) various Coronavirus FY 21-22 135ious Emergency (July- Solutions Grant— ESG-CV2 $6,072,741 June) various Coronavirus Total Expenditures $11,598,442 Fiscal Impact Verified By: Kathryn Downs, CPA, Executive Director — Finance and Management Services Agency Submitted By: Steven A. Mendoza, Executive Director — Community Development Agency Exhibits: 1. ESG-CV Second Allocation Letter from HUD 2. First Amendment to COVID-19 Response Funding Plan 60A-3 o � NE�NpiNF N �` ��9/Lyry�OO * o U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT IIIIIIIi WASHINGTON, DC 20410-7000 ASSISTANT SECRETARY FOR COMMUNITY PLANNING AND DEVELOPMENT June 9, 2020 The Honorable Miguel A. Pulido Mayor of Santa Ana 20 Civic Center Plaza Santa Ana, CA 92701-4058 Dear Mayor Pulido I am pleased to inform you of the second allocation of Emergency Solutions Grants (ESG) Program funds HUD is awarding to your jurisdiction in the amount of $11,598,442, as authorized by the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), Public Law 116-136. These special ESG-CV funds are to be used to prevent, prepare for, and respond to the coronavirus pandemic (COVID-19) among individuals and families who are homeless or receiving homeless assistance; and to support additional homeless assistance and homelessness prevention activities to mitigate the impacts of COVID-19. President Trump signed the CARES Act on March 27, 2020 to help the Nation respond to the coronavirus outbreak. The CARES Act made available an additional $4 billion in ESG-CV funds to supplement the Fiscal Year (FY) 2020 ESG funding provided under the Further Consolidated Appropriations Act, 2020 (Public Law 116-94). Of this amount, the Department previously allocated $1 billion for ESG-CV grants based on the FY 2020 ESG formula and set aside $40 million for technical assistance. An additional $2.96 billion in funding for ESG-CV grants is now being allocated directly to States or units of local government by a separate formula developed by the Secretary. The formula approved by the Secretary includes variables that quantify the population currently experiencing and at risk of homelessness, including: • Total Homeless Population • Unsheltered Homeless Population • Total Very Low Income (VLI) Renters • VLI Renters that are Overcrowded or without a Kitchen or Plumbing The variables were further weighted to adjust for fair market rents. HUD's formula methodology for this second allocation can be found at hitps://www.hud.gov/sites/dfiles/CPD/docutnents/ESG CARES Act Round 2 Allocation Metho dologv rev.ndf w .hud.gov espanol.hud.gov 60A-4 As with the first allocation, this second allocation of ESG-CV funds is subject to the following flexibilities and conditions provided by the CARES Act: • The funds may be used to cover or reimburse allowable costs incurred by a State or locality before the award of funding (including prior to the signing of the CARES Act) to prevent, prepare for, and respond to COVID-19; • The funds are not subject to the spending cap on emergency shelter and outreach under 24 CFR 576.100(b)(1); • Up to 10 percent of funds may be used for administrative costs, as opposed to 7.5 percent as provided by 24 CFR 576.108(a); • The funds are exempt from the ESG match requirements, including 24 CFR 576.201; • The funds are not subject to the consultation and citizen participation requirements that otherwise apply to the Emergency Solutions Grants, however each recipient must publish how its allocation has and will be used, at a minimum, on the Internet at the appropriate Government web site or through other electronic media; • The funds may be used to provide homelessness prevention assistance (as authorized under 24 CFR 576.103 or subsequent HUD notices) to any individual or family who does not have income higher than HUD's Very Low-hicome Limit for the area and meets the criteria in paragraphs (1)(ii) and (1)(iii) of the "at risk of homelessness" definition in 24 CFR 576.3; • That recipients may deviate from applicable procurement standards when using these funds to procure goods and services to prevent, prepare for, and respond to coronavirus, notwithstanding 24 CFR 576.407(f) and 2 CFR 200.317-200.326; • While we encourage you to offer treatment and supportive services when necessary to assist vulnerable homeless populations, individuals and families experiencing homelessness must not be required to receive treatment or perform any other prerequisite activities as a condition for receiving shelter, housing, or other services for which these funds are used, notwithstanding 24 CFR 576.401(e). In addition, the Act authorizes the Secretary to grant waivers of and specify alternative requirements for statutes and regulations the Secretary administers in connection with the use of ESG funds (except for requirements related to fair housing, nondiscrimination, labor standards, and the environment). These waivers and alternative requirements can be issued when necessary to expedite and facilitate the use of funds to prevent, prepare for, and respond to coronavims. HUD has made available the following waivers that are applicable to ESG-CV funding: • CPD Memo: Availability of Additional Waivers for CPD Grant Programs to Prevent the Spread of COVID-19 and Mitigate Economic Impacts Caused by COVID-19 (5/22/2020) o Waiver Applicability to ESG-CV -Made all ESG waivers provided in 3/31/2020 memo applicable to ESG-CV 60A-5 o Housing Stability Case Management — Original waiver (see below) is extended an additional 3 months beginning on the date of the memorandum (5/22/2020) • CPD Memo: Availability of Waivers of CPD Grant Program and Consolidated Plan Requirements to Prevent the Spread of COVID-19 and Mitigate Economic Impacts Caused by COVID-19 for CoC, ESG, and HOP WA (3/31/2020) o HMIS Lead Activities - Allows any recipient to use ESG funds to pay costs of upgrading or enhancing its local HMIS to incorporate data on ESG Program participants and ESG activities related to COVID-19 o Re-evaluations for Homelessness Prevention Assistance - For up to the 2-year period beginning on the date of the waiver memorandum (3/31/2020), the required frequency of re-evaluations for homelessness prevention assistance under section 576.401(b) is waived c Housing Stability Case Management - For the 2-month period beginning on the date of the waiver memorandum (3/31/2020), the required frequency of housing stability case management for homelessness prevention and rapid re -housing assistance is waived o Restriction of Rental Assistance to Units At or Below FMR - For the 6-month period beginning on the date of the waiver memorandum (3/31/2020), the FMR restriction is waived for any individual or family receiving Rapid Re -housing or Homelessness Prevention assistance who executes a lease for a unit The Department is developing a notice that will further lay out the CARES Act provisions and other waivers and requirements to enable swift implementation of ESG-CV grants. This notice and any subsequent notices of waivers and alternative requirements will be made available on HUD's website and distributed to recipients. The Department will also support recipients with technical assistance. As your jurisdiction continues to develop its plan to use these grant funds, HUD encourages approaches that prioritize the unique needs of persons experiencing homelessness and the development of partnerships between all levels of government and the private for -profit and non- profit sectors. Your jurisdiction should coordinate with State and local health authorities as you support state or local pandemic response. HUD encourages you to share successes that may help other recipients. Like other supplemental funding, ESG-CV grants are subject to oversight and tracking. We look forward to working with you to achieve the best possible outcomes for people experiencing and at risk of homelessness and to prevent fraud, waste, and abuse. Importantly, proper reporting in the Integrated Disbursement and Information System (IDIS) and Homeless Management Information Systems (HMIS) is critical to ensuring recipients are complying with program requirements and policies, providing demographic and income information about the persons who benefit from funded activities, and allowing HUD to monitor recipients. Your jurisdiction's ongoing attention is essential to ensuring complete and accurate reporting of performance measurement data. . 1 M All ESG recipients must ensure they maintain active Dun and Bradstreet Numbering System (DUNS) numbers in the System for Award Management (SAM) system. Entities must have an active and unexpired DUNS before execution of grant agreements to avoid delays in the obligation of funds which will delay your ability to drawdown funds in IDIS. Recipients are required to maintain an active SAMs registration by re -activating their DUNS number annually in the SAM system for the entire drawdown period of their grants. DUNS numbers can be registered and renewed each year at the following website: https://www.sam.gov/SAM/. HUD's Office of Community Planning and Development (CPD) is looldng forward to working with your jurisdiction to successfully meet the urgent and complex challenges faced by our communities. If you or your staff have questions, please contact your local CPD Field Office Director or CPDOuestionsAnswered@hud.gov. Sincerely, A6& John Gibbs Acting Assistant Secretary for Community Planning and Development U.S. Department of Housing and Urban Development 60A-7 MINIMUM First Amendment to COVID-19 Response Funding Plan As of August 18, 2020 To prevent, prepare for, and respond to the coronavirus (COVID-19) among individuals NEW - Emergency Solutions Grant Coronavirus Round 2 Funds and families who are homeless or receiving homeless assistance; and to support (ESG-CV2) additional homeless assistance and homelessness prevention activities to mitigate the impacts of COVID-19. Total General Description Detailed Description Operating costs to start up the Year -Round Homeless $ 3,673,851 Navigation Center and Recuperative Care Facility at 1815 Carnegie Shelter Carne ie Avenue Extension of the interim 200-bed shelter at The Link 1,000,000 beyond October 31, 2020, while the new Homeless Extension of the Link beyond October 31, 2020, including overlap of operating time for the Navigation Center on Carnegie Avenue is under Carnegie Shelter develo ment 5,514,747 Eviction Prevention for Very -Low Income Families until Homelessness Prevention / Eviction Prevention eligible ESG activities. Prevention of Au ust 2022 Santa Ana Zero Eviction Pro ram evictions for ve low-income families until Au ust 2022. Evicts Evicti on Defense Fund far Very -Low Income Families If a landlord refuses to accept payment by the City through the Santa Ana Zero Eviction 250,000 ! under Santa Ana Zero Eviction Program qualfifanmIV Program, the law firm contracted by the City for this Fund will provide legal services to the to require the landlord to accept payment. 1, 159,844 Administrative Costs Allowance CDA Recipients can use up to 10%ofthe allocation for administrative purposes. $ 11,598,442Total Available Funds(2 years from date of Grant Agreement - 2022) Homeless Housing, Assistance and Prevention Program COVID-19 To protect the health and safety of homeless populations and reduce the spread of the Funds (HHAP COVID-19) COVID-19 outbreak. Total General Description Detailed Description Tenant improvements to start up the new permanent $ 885,224.00 emergency shelter sooner than planned for COVID-19 Carnegie Shelter homeless response $ 201,447.16 Servicing the trailers from the State of CA Retrofit and maintenance of the trailers by Mike Thompson RV and removal of black wastewater by A&J Portables. $ 205,000,00 Servicing the trailers from the State of CA Services for the trailers including janitorial services by (clean and security services by Santa Ana Security Services. $ 21,364.93 Servicing the trailers from the State of CA Generators for the trailers $ 65,199.00 Utilities at the Trailers Set-up of electrical infrastructure at the trailers provided by Lead Electric $ 3,425.56 Servicing the trailers from the State of CA Supplies $ 3,787.50 Servicing the trailers from the State of CA Weed Abatement $ 1,385,448 Total Available Funds Community Development Block Grant-Coronavirus Funds (CDBG-CVJ To prevent, prepare for, and respond to the coronavirus (COVID-19). Total General Description Detailed Description Proposed amendment to public services contract with the Salvation Army, Community Action $ 1,610,435 Expansion of Emergency Rental Relief Fund Partnership and Catholic Charities to assist more renters impacted by COVID-19 who are unable to pay their rent due to loss of income. Emergency Rental Relief Fund Public services contact with the Salvation Army, Community Action Partnership and Catholic 500,000 Salvation Amy (209506) Cathalic Charities Charities to assist renters impacted by COVID-19 who are unable to pay their rent due to loss (209507) Community Action Partnership of income. (2095081 500,000 Economic Development -Small Business Incentive Expansion of City -run Small Business Incentive Program to provide additional loans and Program 209501 rants. Screening and testing operation in partnership with Alta Med, a non-profit medical services 250,000 ALTA-Med COVID-19 Evaluation Center(209503) provider. Testing,diagnosis, or other services at a fixed location. Grant agreementwlth ALTAMed for up to two weeks oftesting for Santa Ana residents. 113,780 Food Distribution for Seniors and/or Residents(209505) Grant agreementwlth Meals on Wheels SeniorSery to supportfaod distribution to seniors 62,400 Food Distribution for Seniors and/or Residents -Traffic MOU between City and PWAto contract outwith CA Barricades to provide traffic control Control (2095041 services for food tlistribution servivices provided bV nonprofits in the community Recipients can use up to 20%of the allocation for administrative purposes. Staff used 10 % 337,402 Administrative Costs Allowance (CDA) (209500) instead of the 20%that is allowed in order to contribute a total of $337,402 in eligible grant administrative expenses to COVID-19 response. $ 3 374 017 Total Available Funds (Expenditure Deadline: July 24, 2026 To prevent, prepare for, and respond to the coronavirus (COVID-19) among individuals Emergency Solutions Grant Coronavirus Funds and families who are homeless or receiving homeless assistance; and to support (ESG-CV) additional homeless assistance and homelessness prevention activities to mitigate the impacts of COVID-19. Total General Description Detailed Description Operating cost to start up the new permanent emergency $ 1,353,700 shelter sooner than planned for COVID-19 homeless Carnegie Shelter response 200,9fi3 Extension of the Link Extension of the Link beyond October 31, 2020, including overlap of operating time for the Carne is Shelter 172,740Administrative Costs Allowance CDA 20760fi Reci Tents can use up to 10%ofthe allocation for administrative purposes. $ 1,727,403Total Available Funds (Expenditure Deadline: July23, 2022) 3 19.085,310 TOTAL 60A-9