HomeMy WebLinkAbout2021-03-23 - AGENDA REPORTS - ESTABLISHMENT OF SC COVID-19 RENTAL ASSISTANCE PGM (2)0
Agenda Item: 11
P
CITY OF SANTA CLARITA AGENDA REPORT
UNFINISHED BUSINESS
CITY MANAGER APPROVAL:1
DATE: March 23, 2021
SUBJECT: ESTABLISHMENT OF THE SANTA CLARITA COVID-19 RENTAL
ASSISTANCE PROGRAM FOR LOW- AND MODERATE -INCOME
RESIDENTS
DEPARTMENT: Community Development
PRESENTER: Michael Villegas
RECOMMENDED ACTION
City Council:
1. Approve the Santa Clarita COVID-19 Rental Assistance Program as outlined in the staff
report.
2. Increase Emergency Rental Assistance revenue account 229-4471.010 by $6,332,236, and
appropriate the same amount to Emergency Rental Assistance expenditure account 13204-
5171.013.
3. Authorize the City Manager or designee to negotiate and execute a Memorandum of
Understanding with the State of California to avoid a duplication of benefits, subject to City
Attorney approval.
4. Authorize the City Manager or designee to execute all documents related to the Santa Clarita
COVID-19 Rental Assistance Program, subject to City Attorney approval.
BACKGROUND
The Consolidated Appropriations Act, signed into law on December 27, 2020, authorized $25
billion in federally -funded emergency rental assistance to support low- and moderate -income
households nationwide that are unable to pay rent and utilities due to the COVID-19 pandemic.
The U.S. Department of Treasury (Treasury Department) provided funds to states, local
governments with a population that exceeds 200,000, U.S. Territories, and Indian tribes.
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On January 27, 2021, the City of Santa Clarita (City) received a direct allocation of
$6,332,235.50 from the Treasury Department to provide rental assistance to City residents.
Separately, on January 29, 2021, Governor Newsom signed Senate Bill 91 (SB 91) into law,
which appropriated the State of California's (State) direct allocation from the Treasury
Department and established the parameters under which the State Rental Assistance Program
must operate. From SB 91, the City was eligible to receive a $6,815,019 block grant, which
would be in addition to the funding received directly from the Treasury Department. However,
acceptance of State funding would require the City's Treasury Department funds to conform to
State guidelines.
At the regular City Council meeting on February 23, 2021, City staff presented the City Council
with three options to consider. Options A and B were to create a rental assistance program using
both Treasury and State dollars, with the difference being the administering parry - State versus
City. Option C was to create and administer a rental assistance program using only funds
received from the Treasury Department. After hearing the details of each option, the City
Council elected to pursue Option C, directed City staff to develop a program in accordance with
the rules and regulations of the Treasury Department, and to deploy assistance as quickly as
possible.
As a condition of the funding, the City is required to prioritize consideration of the applications
of households at or below 50 percent of the Area Median Income (AMI), and households where
at least one member has been unemployed for over 90 days. The City must also, to the extent
feasible, ensure there is no duplication of benefits with tenants applying and receiving assistance
from other programs. The deadline to expend 65 percent of the allocation is September 30, 2021.
All remaining funds must be expended by December 31, 2021.
PROGRAM OVERVIEW
City staff worked collaboratively with various departments and divisions across the organization,
as well as its County and State partners, to develop the Santa Clarita COVID-19 Rental
Assistance Program (Program). The Program, with City Council approval, will go live on
April 1, 2021, and will provide financial assistance to low- and moderate -income renters in the
City that meet all of the following eligibility criteria:
1. Resides in a rental unit located in the City of Santa Clarita;
2. Has a household income at or below 80 percent AMI;
3. Has experienced a reduction in household income, incurred significant costs, or
experienced a financial hardship due to COVID-19, such as unemployment; and
4. Has one or more household members who can demonstrate a risk of experiencing
homelessness or housing instability.
The City will host a 30-day online application period to allow sufficient time for households to
collect the required documentation. At its outset, the Program will provide assistance for up to
four full months of rental arrears, contingent upon funding availability, while placing priority
processing on households at or below 50 percent AMI and households where one or more
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members has been unemployed for more than 90 days. At the conclusion of the application
period, once all information and eligibility requirements have been determined, payments will be
remitted directly to landlords.
Depending upon the number of eligible households and the amount of available funds, the
Program may be expanded to provide additional assistance and/or open additional rounds of
funding.
KEY PROGRAM PARAMETERS
To receive funding from the Program, applicants will need to provide documentation to
demonstrate eligibility, including proof of income and proof of a financial hardship due to
COVID-19. A list of acceptable documentation will be posted on the City's website and made
available to inquiring residents with no access online. All accepted documentation will be
consistent with Federal guidelines.
The income limits for the Program are based on the U.S. Department of Housing and Urban
Development's (HUD) AMI for the Los Angeles -Long Beach -Glendale, CA Metro Area, and are
as indicated below.
Household Size
1
2
3
4
5
6
7
8
50% AMI
$39,450
$45,050
$50,700
$56,300
$60,850
$65,350
$69,850
$74,350
80% AMI
$63,100
$72,100
$81,100
$90,100
$97,350
$104,550
$111,750
$118,950
In addition to meeting the minimum eligibility requirements for income and financial hardship,
landlord participation is vital to providing rental assistance, as they need to verify the amount
owed and agree to receive payment from the City on behalf of their tenants. If a landlord is
unwilling to participate, the tenant will be unable to receive assistance through the Program.
Staff will be employing a variety of outreach strategies and engaging local community -based
organizations to expand the Program's reach and ensure information about the Program is
broadly disseminated. A dedicated web page, email address, and phone line have all been
established for the Program. In addition, Program staff will be available to provide technical
assistance throughout the application period via phone and in -person appointments. Paper
applications will also be made available upon request.
MEMORANDUM OF UNDERSTANDING WITH THE STATE
To ensure a non -duplication of payment to Santa Clarita residents, the City must negotiate and
enter into a Memorandum of Understanding (MOU) with the California Department of Housing
and Community Development (HCD).
Staff is in active conversations with HCD to design an MOU that bifurcates the two programs by
having the State provide assistance with unpaid utility bills and the City provide assistance with
rental payments. In addition, staff is working with HCD to ensure that when funds from the
Program have been exhausted, Santa Clarita residents may receive assistance with rental
payments through the State program.
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ALTERNATIVE ACTION
Other actions as determined by the City Council.
FISCAL IMPACT
The City received $6,332,235.50 from the Treasury Department on January 27, 2021, and
deposited the funds to revenue account 229-4471.010 (Miscellaneous Federal Grants).
Implementation of the recommended actions does not impact the General Fund, as all costs,
including administrative overhead, will be covered by the Treasury Department grant.
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