Report Prepared by: Kimberly Nutt, Housing Program Supervisor, 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 the County of Merced, on Behalf of its Human Services Agency, for the Respective Programs Approved in Support of the Continuum of Care With the Adopted 2020 and 2021 Annual Action Plans
REPORT IN BRIEF
Considers authorizing the execution of two Community Development Block Grant (CDBG) Subrecipient Agreements with the County of Merced, on behalf of its Human Services Agency, for the 2020 ($38,000) and 2021 ($38,000) Continuum of Care Collaborative Applicant administrative support programs.
RECOMMENDATION
City Council - Adopt a motion:
A. Approving an agreement for the program identified in the 2020 HUD Annual Action Plan using Fiscal Year 2020-21 CDBG funds with the County of Merced, on behalf of its Human Services Agency, in the amount of $38,000 for the “City and County Continuum of Care 2020-21 Collaborative Applicant” Program (Account 018-1301-552-17.00/Professional Services); and,
B. Approving an agreement for the program identified in the 2021 HUD Annual Action Plan using Fiscal Year 2021-22 (Current Year) CDBG funds with the County of Merced, on behalf of its Human Services Agency, in the amount of $38,000 for the “City and County Continuum of Care 2021-22 Collaborative Applicant” Program (Account 018-1301-552-17.00/Professional Services); and,
C. Authorizing the City Manager or the Deputy City Manager to execute, and if necessary, direct staff to make minor modifications to the agreements described above and as attached, and all associated documents and exhibits; and,
D. Authorizing the Finance Officer to make necessary budget adjustments.
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, City of Merced 2020 and 2021 HUD Annual Action Plans, and Title 24 of the U.S. Code of Federal Regulations, Part 570 (the HUD regulations concerning CDBG, including Subpart K of these regulations).
CITY COUNCIL PRIORITIES
As approved by City Council on November 16, 2020, and July 6, 2021, and budgeted with Fiscal Year 2020-21 and 2021-22 CDBG program funds. The projects associated with the agreements being presented for approval align with the 2021-22 Council Goals and Priorities, in support of Housing and Homelessness programs that prevent homelessness.
DISCUSSION
Staff is requesting that Council authorize execution of two subrecipient agreements for use of CDBG funding approved with the 2020 and 2021 HUD Annual Action Plans, both for administrative support to the City and County Continuum of Care (CoC).
Drafting and preparation of these agreements has been severely delayed by the cumulative impacts of the COVID-19 pandemic upon both the 2020 and 2021 Annual Plan approval and contract preparation yearly timelines, as Housing staff has worked to prioritize and implement public services contracts first before the CoC ones. HUD approved the projects in their respective Annual Action Plans on March 10, 2021, and October 27, 2021. The City has been working with County staff since October 2021 on acceptable updates to these agreements. The County Board of Supervisors approved both agreements at their April 26, 2022, meeting.
Following execution of each agreement, the Merced County Human Services Agency, as the administering body of the City and County Continuum of Care, can then begin submitting invoices for reimbursement of eligible costs incurred over the respective program years.
As required, Housing staff has completed all National Environmental Protection Act (NEPA) environmental reviews necessary to allow Federal funds to be spent on each of the two projects.
Merced County - City and County Continuum of Care Collaborative Applicant
The Collaborative Applicant is the business entity of the Merced City and County Continuum of Care (CoC) Program through the Merced County Human Services Agency (HSA). The CoC is a group of governmental agencies and nonprofit organizations that work to prevent and reduce homelessness throughout the county region, including within the City of Merced city limits, and the Collaborative Applicant, overseen by the HSA, is responsible for ensuring implementation of CoC programs and activities.
Approximately 58% of the County’s homeless population live within the Merced City limits, both sheltered and unsheltered. On its own, the City of Merced lacks the vast resources needed to combat the homelessness crisis within its jurisdictional boundaries - thus, the City’s partnership with and fiscal support of Human Services Agency staff through the shared administrative funding of the CoC Collaborative Applicant for combating local homelessness is vital to address the needs of homeless City residents.
With CDBG funding from the City of Merced, the Collaborative Applicant/HSA will be supported in providing administrative support to the Merced City and County CoC board and general membership by:
1. Managing the program by organizing special CoC meetings, providing input regarding programs and goals, and seeking opportunities and resources to continue the CoC’s mission to end chronic homelessness within the City and County of Merced.
2. Developing and posting monthly meeting agendas and minutes for the public and interested community agencies and organizations.
3. Collecting monthly grantee reports for the Merced City and County CoC board for their review of grant status.
4. Monitoring grantees during grant periods, reporting any findings, and providing technical support.
5. Ensuring the CoC and grantees are in compliance with all Federal and State regulations regarding homelessness programs, funding sources, and projects.
6. Researching and applying for funding opportunities through Federal, State, and other programs.
7. Assisting in administering and developing collaboration between County-wide agencies that address homelessness.
8. Implementing and accomplishing the data-gathering and reporting goals presented in the Merced County Regional Plan to Address Homelessness, including but not limited to, the Annual Grant Inventory Worksheet, CoC application of funding to HUD, and the Annual Homeless Point in Time Count, Housing Inventory Count, and the Annual Homeless Assessment Report.
IMPACT ON CITY RESOURCES
Both agreements do not require any expenditures from the General Fund. These are both subgrants allocated in the current year budget (Fiscal Year 2021-22) and funds are available within Account 018-1301-552-17.00 (Professional Services).
ATTACHMENTS
1. Draft 2020 Program Year Agreement with County of Merced
2. Draft 2021 Program Year Agreement with County of Merced