Title
Staff Report for a City of San Leandro City Council Resolution to Approve Amendment No. 1 to the Fiscal Year 2020-2021 Community Development Block Grant-Covid-19 (CDBG-CV) Contract t Between the City of San Leandro and Centro Legal de la Raza for an Amount Not to Exceed $1,163,178 to Administer the City’s Rental Assistance Program (increases FY2020-2021 Agreement by an additional $711,206)
Staffreport
SUMMARY AND RECOMMENDATIONS
Staff recommends that the City Council approve the resolution for Amendment No. 1 to the FY2020-2021 contract with Centro Legal de la Raza to operate the City’s Rental Assistance Program. This action will amend Centro Legal’s contract by increasing the original contract amount of $451,972 by an additional $711,206 (CDBG-CV Round III funds) for a total amount not to exceed $1,163,178. These CARES Act federal stimulus funds were allocated to CDBG entitlement communities in September 2020 as CDBG-CV Round III funding to assist cities and counties with the impacts of COVID-19. This Amendment No. 1 is associated with the City Council’s separate review of the second Substantial Amendment to the U.S. Department of Housing and Urban Development (HUD) FY2019-2020 Annual Action Plan.
BACKGROUND/ANALYSIS
This agreement will augment the CDBG public services budget that was approved by the City Council as part of the FY 2019-2020 HUD Annual Action Plan First Substantial Amendment adopted by the City Council on June 15, 2020. Centro Legal de la Raza is currently under contract with the City of San Leandro to provide rental assistance, which promotes housing stability and works to prevent homelessness for lower income renters seeking rent relief due to impacts from COVID-19.
The recommended action will vastly expand the Rental Assistance Program enabling the City to support substantially more San Leandro households as they deal with the economic impacts of the COVID-19 pandemic and related shut-downs.
Current Agency Policies
Current City Council policy is defined by the FY 2015-2019 Consolidated Plan and the FY 2019-2020 Annual Action Plan both Amended by Resolution No. 2020-055 on June 15, 2020.
Previous Actions
HUD Five Year Consolidated Plan for 2015-2020: The current five-year plan was adopted through Resolution No. 2015-080 on April 20, 2015 and amended by Resolution No. 2020-055 on June 15, 2020. One of the priorities identified in the five-year Consolidated Plan document for Community Development Block Grant (CDBG) expenditures is “Community Development Needs - Public Services.” HUD requests that cities identify specific action areas where CDBG funds can be spent. The City proposed to provide operational grant support to non-profit social service providers serving San Leandro residents
HUD FY 2019-2020 Annual Action Plan: The original Annual Action Plan document was adopted on May 6, 2019. In response to the COVID-19 Pandemic and the federal CARES Act legislation signed into law on March 27, 2020, the current annual plan was amended by the City Council through Resolution No. 2020-055 on June 15, 2020 to provide stimulus funds to community services organizations in response to impacts affecting specific vulnerable populations - homebound seniors and lower income renters -- caused by the COVID-19 pandemic.
Environmental Review
By July 1, 2020 National Environmental Protection Act (NEPA) environmental reviews of each project will be completed prior to contract execution.
Fiscal Impacts
If approved, Centro Legal will be funded by FY 2019-2020 CDBG-CV monies in the following account:
• Centro Legal de la Raza - Rental Assistance program (increase of $711,206) - 165-43-254-5120.
Budget Authority
Budget authority for CDBG funds is derived from Title I of the Housing and Community Development Act of 1974 (24 CFR 570 et seq.).
ATTACHMENTS
Attachments to Resolution
Amendment No. 1 to the CDBG Grant Agreement with Centro Legal de la Raza for a grant amount not to exceed $1,163,178
PREPARED BY: Maryann Sargent, Senior Housing Specialist, Community Development Department