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Home My WebLink About03 C38720H - CA1 Case Mgmt Svc for ERA PgrmSTAFF REPORT CITY OF PALM DESERT CITY MANAGER’S OFFICE MEETING DATE: February 25, 2021 PREPARED BY: Christopher Gerry, Management Analyst REQUEST: Authorize the execution of Contract Amendment No. 1 (C38720H) with the Jewish Family Service of the Desert to continue providing case management services for the Emergency Rental Assistance Program. Recommendation Approve Contract Amendment No. 1 (C38720H) with the Jewish Family Service of the Desert in an amount not to exceed an additional $20,000 ($40,000 total) to continue providing case management services for the Emergency Rental Assistance Program. Background Under the Coronavirus Aid, Relief and Economic Securities Act (CARES Act), the City of Palm Desert received $241,144 in CDBG-CV1 funds through the U.S. Department of Housing and Urban Development (HUD). The purpose of these funds are to prevent, prepare for, and respond to the coronavirus pandemic. In addition, the CARES Act provided waivers to allow for greater flexibility of statutory waivers. On May 14, 2020, the City Council approved policy guidelines for an Emergency Rental Assistance Program (Program). The Program serves as an economic recovery tool for rental properties and a safety net for low and moderate-income households financially impacted by the coronavirus. City staff previously recommended subcontracting with a nonprofit organization to administer the Program. Approval allowed City staff to move forward with the development of the Program before the completion and submission of the appropriate federal plans to HUD. On June 25, 2020, the City Council approved a Subrecipient Agreement in an amount not to exceed $20,000 with the Jewish Family Service of the Desert (JFSD) to provide case management services for the Program. This nonprofit organization displayed substantial experience in providing case management and direct financial assistance, and offered the most dedicated staffing hours for the Program. On July 17, 2020, the City closed an application period for rental property owners to opt-in to the Program. As a result, the City received 19 applications from rental property owners representing over 1,540 rental units. The City qualified and entered into partnerships with 13 rental property owners representing approximately over 1,450 rental units. Of those rental units, there was 130 households identified as having missed payments since April 2020. Those missing payments represented a total of approximately $248,000. By September 16, 2020, the City received 66 applications from households residing in the previous rental properties that opted in the Program. Those applications represented a total February 25, 2021 Emergency Rental Assistance Program Page 2 of 3 request of approximately $187,000. JFSD has since reviewed and attempted to work with all of these households submitting applications. Of the initial 66 applications, 18 qualified for emergency rental assistance totaling approximately $42,000. Reasons for denial include: • Lack of rental arrears (49%): Applicants were able to pay previous rental arrears due to changes in the economy and many received rental assistance through Lift to Rise. These federal funds strictly prohibit a duplication of benefits. • Lack of support documentation (41%): Per the federal requirements, applicants are required to submit a substantial amount of support documentation for every household member (except for household members under 18 years of age). Types of documentation per household individual includes, but is not limited to, bank statements, proof of unemployment or reduced wages, identification, and a lease agreement. • Failure to respond after repeated attempts (6%): JFSD made repeated attempts to contact households who submitted applications. A few applicants were nonresponsive. • Household income was not impacted by the pandemic (4%): The federal requirements include the funding source must be expended to prevent, prepare for, or respond to the pandemic. Some applicants were not able to provide support documentation to identify a financial impact resulting from the pandemic. By February 5, 2021, the City received an additional 78 applications from households residing in the previous rental properties that opted in the Program. Those applications represented a total request of approximately $256,000. JFSD is currently working with applicants to ensure they meet qualifications accordingly to the federal requirements. City staff appreciates JFSD’s thoroughness and diligence in reviewing applications to ensure eligibility. The City’s initial contract compensated JFSD for initial collaboration and establishment of the Program, review and extensive outreach to the 66 households (funding 18 households), and commencement of the review and case management of the additional 78 applications. JFSD has currently processed an additional 26 applications totaling $80,000 (pending City payment). As a “lesson learned” from the first round of applications, households are now given much stricter deadlines to submit information; shift toward more electronic correspondence for efficiency; and utilize rental property owners as a resource to encourage applicants to apply for rental assistance and submit documentation in a more timely order. The City initially budgeted approximately $192,000 in CDBG-CV1 funds for rental assistance. To date, the City has funded or currently processing payments for 44 households equating to approximately $122,000 for rental assistance (excluding JFSD administrative costs), in which additional applications are pending. City staff anticipates expending the remaining CDBG-CV1 funds following the review of these remaining applications. The City has also budgeted an additional $224,000 in CDBG-CV3 and reprogrammed CDBG funds for rental assistance, and is awaiting HUD’s review and approval. City staff anticipates re-opening the rental property owner application period in the near future as well. The attached contract amendment proposes an increase of $20,000 ($40,000 total) for costs to continue to operate the Program. Please note that since the Program aligns with JFSD’s goals, February 25 , 2021 Emergency Rental Assistance Program Page 3 of 3 various costs have been absorbed by the organization in order serve more households. For continuity of services , the costs are recommended to be retroactive to January 2021. The funding source allows retroactive costs to prevent, prepare for , and respond to the coronavirus pandemic. City staff anticipates an additional amendment during the next round of applications in the future. F iscal Analysis There is no fisca l impact to the General Fund. LEGAL REVIEW DEPT . REVIEW FINANC IAL REVIEW ASS ISTANT CITY MANAGER N/A N/A 9()Wt,e:t 711. 1'1100-i,e, .Jlnay J"irestine Robert W . Hargreaves Randy Synder Janet Moore Andy Firestine City Attorney Interim City Manager Dire ctor of Finance Assista nt City Manager Interim City Manager Randy Synder: Ranc/:y Bynder Attachments A. Amendment No. 1 (C38720H) CITY COUNCILA.<;TION APPROVED--~----DENTED _____ _ RECEIVED OTHER _____ _ MEETINGDATE 2--1.-0--zo -z-,I AYEs d:IGU'.Yli IC 1:Jn m:t:YJ,an~ N estcmcte, ~1 f,nton ill c,;+ ~llu NoRs: Nooe J ABSENT: ___ N __ Q{l.......,,.,.e, ____________ _ ABSTAIN: NOOL VERIFIED BY: Bug I f,~S Original on File with City Clerk's Office COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM SUBRECIPIENT AGREEMENT NO. C38720H AMENDMENT NO. 1 This agreement is entered into effective February 25, 2021, by and between the City of Palm Desert (CITY), and Jewish Family Service of the Desert (SUBRECIPIENT). RECITALS WHEREAS, CITY is a direct entitlement city with the U.S. Department of Housing and Urban Development (HUD) for purposes of receiving Community Development Block Grant (CDBG) funds to assist and undertake essential community development and housing assistance activities pursuant to the Housing and Community Development Act of 1974; and WHEREAS, SUBRECIPIENT was awarded a grant in the amount of $20,000.00 in CDBG- CV1 funds to be used to provide case management services for the Emergency Rental Assistance Program (PROGRAM) pursuant to Contract Number C38720H (AGREEMENT); and WHEREAS, SUBRECIPIENT has charged at-cost to operate PROGRAM and invoiced accordingly; and WHEREAS, CITY and SUBRECIPENT desire to continue relationship to operate PROGRAM at-cost through the duration of PROGRAM. THEREFORE, IT IS AGREED: 1. AGREEEMENT amount for PROGRAM shall increase by $20,000, for a revised amount not- to-exceed of $40,000.00. 2. All other terms and conditions within AGREEMENT are still in full force and effect. SUBRECIPIENT BY: Kraig Johnson Executive Director Print Name Title Signature Date CITY BY: Todd Hileman City Manager Print Name Title Signature Date