Report Prepared by: Erica Stafford, Housing Program Specialist, Housing Division/Development Services Department
Title
SUBJECT: Approval of Allocation of U.S. Department of Housing and Urban Development (HUD) Community Development Block Grant Program Resources and Approval of Associated Subrecipient Agreements with Sierra Saving Grace ($60,000), and Harvest Time ($40,000) the Respective Programs Approved with the Adopted 2024 Annual Action Plan
REPORT IN BRIEF
Considers approving and authorizing Program Year 2024-25 Community Development Block Grant (CDBG) Subrecipient Agreements with Sierra Saving Grace for $60,000 and Harvest Time for $40,000.
RECOMMENDATION
City Council - Adopt a motion:
A. Approving a Subrecipient Agreement for the program identified in the 2024 Annual Action Plan using Fiscal Year 2024-25 CDBG funds with Sierra Saving Grace in the amount of $60,000 for the “Emergency Assistance” Program; and,
B. Approving a Subrecipient Agreement for the program identified in the 2024 Annual Action Plan using Fiscal Year 2024-25 CDBG funds with Harvest Time for the “Food 4 You” program in the amount of $40,000; and,
C. Authorizing the City Manager to execute, and if necessary, direct staff to make non-material modifications to the agreements and exhibits.
Body
ALTERNATIVES
1. Approve, as recommended by staff; or,
2. Approve, subject to conditions other than recommended by staff; or,
3. Deny; or,
4. Refer to City staff for reconsideration of specific items (specific items to be addressed in the motion); or,
5. Continue to a future meeting (date and time to be specified in the motion).
AUTHORITY
Section 200 of the City of Merced Charter, adopted City of Merced 2024 HUD Annual Action Plan, and Title 24 of the U.S Code of Federal Regulations, Part 570 (the HUD regulations concerning the governance and use of CDBG funds).
CITY COUNCIL PRIORITIES
2024-25 Council Goals and Priorities: Public Safety Goal #6, in support of continuing to develop partnerships that focus on homeless and hard-to-reach individuals and outreach efforts with a focus on temporary housing access.
DISCUSSION
Housing Division staff requests the approval and execution of two subrecipient agreements for programs that were awarded HUD CDBG funding by the City Council with approval of the 2024 Annual Action Plan (PY2024 AAP) at the August 5, 2024, Council meeting.
It should be noted that the PY2024 AAP may be substantially amended in the near future, as per Council’s direction upon original approval of the 2024 AAP in August - however, a potential amendment is not expected to affect any of the previously approved public service program funding awards.
The subject programs with Sierra Saving Grace and Harvest Time may have already been implemented by each organization by the time of contract execution, in order to provide City residents with seamless and necessary services. Approval and final execution of the agreements will enable any eligible costs that may have been incurred since July 1, 2024, (start of the program year) to be reimbursed back to the organizations.
Sierra Saving Grace Homeless Project - Emergency Assistance Program
Sierra Saving Grace Homeless Project (SSG) is a 501(c)(3) non-profit charity organization whose mission is “to provide an interfaith and community-based safety net for chronically homeless individuals and families who are either underserved or not served by existing programs and services. SSG promotes a housing first approach to solving homelessness through the provision of intensive case management, advocacy, and services in recognition of the inherent worth and dignity of all persons.”
CDBG funds in the amount of $60,000 will be used to reimburse the organization for payments made to providers, landlords, or mortgagers for up to a maximum of three consecutive months of gas/electric utilities, rental housing fees, or mortgage payments, including all arrears that have become overdue and are putting the resident at risk of homelessness, loss of gas/electricity services, or in some cases, both.
Harvest Time - Food 4 You Program
Harvest Time is a 501(c)(3) non-profit organization that operates as a food bank/food distribution program out of a local church, Calvary Assembly of God, located at 1021 R Street in Merced, and whose mission is that people should have access to food that nourishes the mind, body, and spirit. The program benefits homeless and food insecure low- to moderate-income individuals and households within the City of Merced.
CDBG funds in the amount of $40,000 will be used to reimburse the organization for eligible costs for staff hours spent on the program, supplies necessary for food distribution, electric and gas utilities for cold storage, mileage costs for necessary food pickup and delivery, and general liability insurance.
Environmental Clearance
As required, Housing staff has completed all National Environmental Policy Act (NEPA) clearances necessary to allow Federal funds to be committed and spent on each of the projects.
IMPACT ON CITY RESOURCES
Both agreements do not involve General Funds. They are CDBG fund subgrants allocated in the current year budget (Fiscal Year 2024-25), and funds are available within Object 511038 (Community Support).
HUD has recently distributed the agreement and certification forms necessary to transmit PY2024 funds to the City. Funds will be available to the City following the certification and return of these forms to HUD.
ATTACHMENTS
1. Draft Agreement - Sierra Saving Grace Emergency Assistance
2. Draft Agreement - Harvest Time Food 4 You