|RECOMMENDATION TO COUNCIL|
Staff requests that the City Council adopt a resolution to approve the Community Development Block Grant (CDBG) Agreement between the City of Roseville and AMI Housing, Inc., and authorize the City Manager to execute it.
As an entitlement jurisdiction, the City of Roseville receives an annual allocation of Community Development Block Grant (CDBG) funds from the U.S. Department of Housing & Urban Development (HUD). On March 27, 2020 the Coronavirus Aid, Relief and Economic Security Act (CARES Act) was enacted by Congress to provide emergency assistance and health care response for individuals, families, and businesses affected by the COVID-19 pandemic. CDBG-CV funds must be used for CDBG eligible activities that prevent, prepare for, or respond to the COVID-19 virus. The City received two rounds of CARES Act funding, also known as CDBG-CV, totaling $1,213,133.
In December of 2020, staff released a Request for Proposals (RFP) in pursuit of a non-profit agency to administer a program to pay rent for those with arrears in order to keep Roseville residents housed. AMI Housing (AMI) proposed a program to provide housing assistance to low-income residents through the payment of rent and utilities. In February 2021, Council approved an award of $250,000 in CDBG-CV funds toward this program in order to assist Roseville residents affected by COVID-19 who were at risk of housing instability. AMI’s program would not only help prevent homelessness and potential evictions, but also provide families with stability. Although AMI anticipated that they would be able to expend the award before the end of the fiscal year, they had also received Emergency Solutions Grants (ESG-CV) funds through the State for a similar program, with an urgent spending deadline ending FY2021-22. Since the ESG-CV funds were forced to take precedence, AMI was only able to spend $49,500 of the $250,000 in CDBG-CV funds awarded to them for the rent and utility assistance program prior to the June 30, 2022 deadline. AMI requested an extension to the original agreement in order to allow them to utilize the CDBG-CV funds through the new fiscal year.
A subsequent RFP for the remaining unallocated CDBG-CV funding was released in December of 2021. In order to identify appropriate programs, staff reached out to local nonprofits to determine continuing community need due to COVID. The overwhelming majority expressed that rental assistance for low-income households continued to be of utmost importance. This was echoed by the continued high demand for the State's Emergency Rental Assistance (ERA) program and the ERA program that Roseville Housing staff administered in 2021. Roseville's ERA program distributed $4.6 million dollars and assisted approximately 500 families with rent, back rent, and utility assistance over an eight month period. Staff determined that AMI's request to continue the current assistance program and add the remaining unallocated funding to toward a new contract was the best use of the remaining funds.
At the May 18, 2022 City Council meeting, Council approved the proposed award of an additional $200,000 in funding to AMI for their rent and back rent homeless prevention assistance program. The new contract combines the remaining unspent funds from the prior fiscal year of $200,500 with the 2022-23 program year award of $200,000 and totals $400,500. Upon execution of the new agreement, AMI will be able to continue their program and utilize these funds throughout the new fiscal year. It is estimated that AMI will be able to help prevent homelessness and provide housing stability to an additional 275 Roseville households, for an additional three months each.
The CDBG funding is provided as a federal grant to the City. These grants are used to offset potential costs to the General Fund and to serve the community. Funding for the AMI Housing COVID Homeless Prevention Assistance program was approved with the adoption of the first amendment to the CDBG 2019 Program Year Annual Action Plan Amendment on February 3, 2021, and the third amendment on May 18, 2022. This item does not impact the City's General Fund.
The California Environmental Quality Act (CEQA) does not apply to activities that will not result in a direct or reasonably foreseeable indirect physical change in the environment, or is otherwise not considered a project as defined by CEQA Statute §21065 and CEQA State Guidelines §15060(c)(3) and §15378. The approval of a sub-recipient agreement with AMI Housing meets the above criteria and is not subject to CEQA. No additional environmental review is required.
CITY COUNCIL STRATEGIC PLAN/OVERARCHING GOALS
Goal C - Maintain a safe and healthy community
Kristine Faelz, Housing Analyst
Melissa Anguiano, Economic Development Director
Dominick Casey, City Manager