REPORT TO SHASTA COUNTY BOARD OF SUPERVISORS

BOARD MEETING DATE:  January  31, 2017
CATEGORY:  Consent - Health and Human Services-6.

SUBJECT:

Resolution Authorizing a HOME Tenant-Based Rental Assistance Grant Application

Supervisorial District No. :  ALL

DEPARTMENT CONTACT:  Richard Kuhns, Psy.D, Director of Housing/Community Action Programs, (530) 225-5160

STAFF REPORT APPROVED BY:  Richard Kuhns, Psy.D, Director of Housing/Community Action Programs

RECOMMENDATION

Adopt a resolution which: (1) Approves and authorizes the Director of Housing and Community Action Programs (Director) to sign and submit an application to the California Department of Housing and Community Development for HOME Investment Partnerships Program funding in the amount not to exceed $700,000 to provide a tenant-based rental assistance program; (2) approves and authorizes the Chairman to sign any grant agreement and subsequent amendments awarded for the program consistent with the provisions of the resolution in an amount not to exceed $700,000; (3) confirms the County’s intent to use HOME funds for eligible activities in accordance with applicable statutes and regulations; and (4) approves and authorizes the Director to sign additional application and participation documents.

SUMMARY

Upon approval of the recommendation, a grant application will be submitted to the California Department of Housing and Community Development (HCD) requesting federal HOME funding to provide up to 12 months of rental assistance to low-income households.

DISCUSSION

HCD is accepting grant applications for the HOME Investment Partnerships Program (HOME).  The Notice of Funding Availability (NOFA) anticipates awarding a total of $26 million to eligible cities and counties.  The NOFA offers funding for three program activities.  Currently, the County utilizes other state and federal funding sources to support owner-occupied housing rehabilitation and homebuyer down payment assistance; therefore, the recommended application is for tenant-based rental assistance for the maximum application amount available to Shasta County.

If awarded, grant funds would provide assistance in the form of security deposits, utility deposits, and monthly rental assistance.  Payments would be issued directly to landlords and/or utility companies on behalf of the eligible tenants.  Each housing unit would be located in the unincorporated area of the County or inside city limits of the cities of Anderson and Shasta Lake.

The Community Action Agency (CAA) has administered HOME rental assistance since 2014.  Should the grant application be successful, it is anticipated that an additional 80 low-income households will be assisted during the term of the grant.  The CAA would continue to accept referrals from partner agencies, including the Redding Veterans Resource Center, One Safe Place, the CalWORKs Family Stabilization Program, Shasta County Probation, and Northern Valley Catholic Social Service.  Rental assistance is provided to military veterans, victims of domestic violence, and homeless persons.  Because of the limited number of households served, other funding sources, including the Housing Choice Voucher Program, must be used for other target populations in need.

In addition, approval of the recommendation to adopt a resolution would: (1) authorize the submission of the grant application; (2) authorize the Chairman to sign HCD’s standard agreement if the grant is awarded; (3) authorize the Director of the Department of Housing and Community Action Programs to sign documents necessary to submit the application package, all monetary drawdown requests, quarterly reports, annual reports, environmental certifications, and any other required HCD documents for participation in the HOME program; and (4) authorizes the Director, or his designee, to execute housing assistance payment contracts between landlords and the County.  The grant application is due February 2, 2017.  HCD intends to send award letters to successful applicants in May 2017.  The grant term would likely expire December 2020, if received.

ALTERNATIVES

The Board of Supervisors could decline to approve the resolution or apply for a different grant activity.  These alternatives are not recommended.  The demand for tenant-based rental assistance remains high.

OTHER AGENCY INVOLVEMENT

The resolution was approved, as to form only, by County Counsel.  This recommendation has been reviewed by the County Administrative Office.

FINANCING

HOME is federal funding allocated by the California Department of Housing and Community Development.  If the application is successful, a HOME grant of $700,000 could be awarded, which would include $682,500 for rental assistance and $17,500 to administer the program.

Additional financial support to administer the HOME program is provided by the Community Action Agency, through Community Services Block Grant funds, in the form of communication expenses, computer hardware and software support charges, staff salaries and benefits, postage, and office supplies.  The F/Y 2016/2017 budget includes a $16,542 contribution from the General Fund towards Central Service Cost A-87 charges related to the program.  While there is no match requirement for this grant, future budgets would likely include a request from the General Fund to offset A-87 charges in support of the program.

Should this grant application be approved by HCD, a budget amendment will be requested in F/Y 2017/2018.  Grant revenue not expended during one fiscal year will roll forward to the next fiscal year.