TITLE
Recommendation to approve a first amendment to the Fiscal Year 2011-2012 Action Plan incorporating the second allocation of the Emergency Solutions Grant program, and authorize City Manager to execute all necessary documents with the U.S. Department of Housing and Urban Development and other entities necessary to receive Emergency Solutions Grant funds; and enter into new, and amend existing, Emergency Solutions Grant contracts to allocate the second provision of Emergency Solutions Grant for eligible activities. (Citywide)
DISCUSSION
On July 19, 2011, the City Council approved the Fiscal Year 2012 (FY 12) Action Plan, which included the first allocation of Emergency Solutions Grant (ESG) funding formerly known as the Emergency Shelter Grant. The City is now eligible to receive the second allocation of ESG funding in the amount of $213,392 to provide supportive services and housing for homeless and persons at risk of becoming homeless. Because this is a new allocation of funding, the City must amend the FY 12 Action Plan in order to receive the funds. The substantial amendment and a summary of ESG regulations are provided in Exhibit A.
ESG funding is typically allocated as part of the City's annual Block Grant Action Plan process. However, for the 2012 ESG allocation, the U.S. Department of Housing and Urban Development (HUD) divided ESG funding into two allocations to allow for the development of new regulations under the Homeless Emergency Assistance and Rapid Transition to Housing (HEARTH) Act of 2009.
On April 18, 2012, the Community Development Advisory Commission conducted a Public Hearing to solicit public comment on the substantial amendment to the FY 12 Action Plan. The Commission voted unanimously to recommend to the City Council approval of the substantial amendment to the FY 12 Action Plan. Notices regarding the Public Hearing and the availability of the substantial amendment to the FY 12 Action Plan were published in the Press Telegram and Impacto USA. In addition, the program announcement was posted on the Neighborhood Services Bureau website. All of the public comments received at the public hearing and during the public comment period, March 18, 2012 to April 18, 2012, are included in the amended Action Plan.
There are six categories of eligible activities for the ESG program: Emergency Shelter, Street Outreach, Rapid Re-housing Assistance, Homelessness Prevention, Homeless Management Information System, and Administrative Costs. Because ESG funds must be expended by September 30, 2013, the Department of Development Services, in conjunction with the Department of Health and Human Services, is recommending that the City Manager be authorized to enter into subcontracts, using this second allocation, with eligible new non-profit agencies as well as those currently being funded.
This matter was reviewed by Deputy City Attorney Richard Anthony on April 5, 2012 and Budget Management Officer Victoria Bell on April 12, 2012.
TIMING CONSIDERATIONS
City Council action is requested on May 1, 2012, as the amended Action Plan must be submitted to HUD no later than May 15, 2012.
FISCAL IMPACT
The $213,392 in ESG grant funds is budgeted in the Community Development Grants Fund (SR 150) in the Department of Development Services (DV). The ESG has a match requirement which will be met by subrecipients as a condition of their agreements with the City. As a result, there is no fiscal impact to the General Fund. No new jobs will be created by this grant.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
AMY BODEK
DIRECTOR OF DEVELOPMENT SERVICES
RONALD ARIAS
DIRECTOR OF HEALTH AND HUMAN SERVICES
APPROVED:
PATRICK H. WEST
CITY MANAGER