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HomeMy WebLinkAbout07 Emergency Rental Assistance Pgrm - Revised Policy GuidelinesCTTY COUNCIL ACTTON APPROVED ✓ DF.IVTFD �Z 1?CEIVED OTHFT� MEETING DATE PREPARED BY: REQUEST: Recommendation STAFF REPO i T1NG DATF, 12-10-Zp2c� CITY OF PALM DES �;��:�.}.���r,Jou�.�� ��y, WE�e, N�si�►�� CITY MANAGER'S OF J.�''.���: N o,� � December 10, 2020 A�3�F�vT: Nfl�c A13STAIN: NON� vrRirrrn BY• G��Imm Christopher Gerry, Management pna�l�i�i'nal on File with Cit-� Clerk's nffice Approve revised policy guidelines for the Emergency Rental Assistance Program using Community Development Block Grant (CDBG-C� funds By minute motion, approve �evisions to the policy guidelines for the Emergency Rental Assistance Program using Community Development Block Grant (CDBG-C� funds. Backpround Under the Coronavirus Aid, Relief and Economic Securities Act (CARES Act), the City of Palm Desert has previously received approximately $851,000 in Community Development Block Grant (CDBG-C� funds to prevent, prepare for, and respond to the coronavirus pandemic. The Palm Desert City Council has since allocated nearly $500,000 in CDBG-CV funds to operate an Emergency Rental Assistance Program (Program). The Program serves as an economic recovery tool for rental properties and a safety net for income-qualified households financially impacted by the coronavirus. On May 14, 2020, the City Council approved policy guidelines for the Program. As approved under the policy guidelines, households cannot receive rental arrears for more than three consecutive months. This policy is consistent with the code of federal regulation in regard to the CDBG Program. However, the CARES Act extended this period for up to six consecutive months. Therefore, in order to have greater Program flexibility to serve households, City staff recommends �evising the policy guidelines to include six consecutive months. The revised policy guidelines can be found as Attachment A(with the revision occurring under "Eligible Costs"). Fiscal Analysis There is no fiscal impact associated with this request. LEGAL REVIEW N/A N/A FI�JRh�IAL REVIEW �a�w�'?'jl. i�%aw Robert W. Hargreaves Randy Bynder City Attorney Interim City Manager Janet Moore Director of Finance Interim City Manager Randy Bynder: lZ�iy �yrtdP.Y Attachments DEf��'. �tVItVJ ASSISTANT CITY MANAGER .�lndy ,�'irestine Andy Firestine Assistant City Manager 1. Revised Policy Guidelines City of Palm Desert Community Development Block Grant (CDBG) Emergency Rental Assistance Program Policy Guidelines The City will subcontract with a nonprofit organization (Subrecipient) to provide an Emergency Rental Assistance Program (Program) to eligible households living in selected rental properties located in Palm Desert. The Program serves as a homelessness prevention safety net for residents and an economic recovery tool for rental properties. 1. Eligible Costs Costs include up to $5,000 per eligible household for rental arrears for April 2020 and/or beyond. Rental arrears cannot exceed a maximum six consecutive months. Amounts per eligible participating household will be recommended by the Subrecipient to the City, and may exceed the amount on a case-by-case basis and subject to available funds. Utilities arrears are ineligible. 2. Eligible Households Households shall meet all of the following qualifying criteria: • Earn less than 80% percent of the area median income. • Experience loss of income directly related to the coronavirus. • Delinquent on rent payment, including partial payments, for April 2020 and/or beyond. • Reside within a rental property that has opted into the Program. • No rental property eviction existed or was filed prior to March 19, 2020. 3. Eligible Rental Properties Rental properties shall meet all of the following qualifying criteria: • Located within the jurisdictional limits of Palm Desert. • Own and operate any market-rate rental unit, including a single-family residence and an accessory dwelling unit. • Advertise the opportunity for emergency rental assistance to all households delinquent on rent payment(s) for April 2020 and/or beyond. • Assist eligible participating households with obtaining the appropriate documentation for emergency rental assistance. • Waive late fees for delinquent rent payment(s) for eligible participating household(s) selected for emergency rental assistance. 4. Prioritization The City will take a strategic approach to identify and set-aside funds equitably to rental properties based upon specific criteria (e.g., household income, geography and percentage of households late on payments). In turn, the respective rental properties will work with the Subrecipient to offer all households delinquent on rent payment(s) an opportunity to apply for emergency rental assistance.