For City Council Meeting [July 28, 2020]
TO: Honorable City Council
APPROVAL: Rod Foster, City Manager
FROM: Stephen Erlandson, Deputy City Manager
Mark P. Kling, Chief of Police
Title
Request City Council to Receive and File the Update on the Emergency Solutions Grant - Coronavirus (ESG-CV).
Body
BACKGROUND
The federal Emergency Solutions Grant program (ESG) provides funds for a variety of activities to address homelessness as authorized under the federal Homeless Emergency Assistance and Rapid Transition to Housing (HEARTH) Act of 2009 and State program requirements. The California Department of Housing and Community Development (HCD) administers the ESG program with funding received from the U.S. Department of Housing and Urban Development (HUD).
The ESG program provides grant funding to (1) engage homeless individuals and families living on the street, (2) rapidly re-house homeless individuals and families, (3) help operate and provide essential services in emergency shelters for homeless individuals and families, and (4) prevent individuals and families from becoming homeless.
In 2016, in an effort to align the HCD’s ESG funds with the HEARTH Act priorities, HCD redesigned how it allocates and distributes funding. The redesigned ESG program aims to do the following: Align with local systems’ federal ESG and HEARTH goals, invest in impactful activities based on key performance goals and outcomes, improve geographic distribution of funded activities and continuity of funded activities, and create a streamlined delivery mechanism.
ESG-CV CARES Funding Background
Under the Coronavirus Aid, Relief, and Economic Stimulus (CARES) Act enacted March 27, 2020, HCD announced on June 1, 2020 the availability of approximately $42 million in federal funds for the Emergency Solutions Grants Program, referred to as ESG-CV.
The ESG-CV Notice of Funding Availability (NOFA) provides funding for the following two objectives:
• Prevent, prepare for, and respond to coronavirus among individuals and families who are experiencing homelessness or receiving homeless assistance.
• Support additional homeless assistance and homeless prevention activities to mitigate the impacts created by coronavirus.
ANALYSIS/DISCUSSION
The Chief of Police and the Deputy City Manager received the ESG-CV NOFA and researched the program with the intent of applying for this grant. During our research, staff engaged in conversations with the Department of Housing and Urban Development (HUD); the San Bernardino County Community Development and Housing Department; and various subject matter experts, including other local city staffs.
Through these conversations, staff learned that the City of Rialto is not an entitlement City as it pertains to ESG grant funding. Entitlement cities receive direct allocations from HUD and can program those monies within their service areas based on an algorithm/formula determined by HUD. Staff has requested this information from HUD to determine if and when the City may achieve entitlement status and will report back to the City Council once the information is received.
As a non-entitlement city, any ESG-CV monies awarded to the City of Rialto could not be expended exclusively within the city; services would have to be provided to clients Countywide, as referred by the local Continuum of Care’s (San Bernardino County) Coordinated Entry System (CES), which has been mandated by HUD since January 1, 2018.
As the City of Rialto is not staffed to administer a program that would have to service non-entitlement areas Countywide, staff deemed that applying for the first round of ESG-CV funding was not feasible at this point in time. A second round of ESG-CV funding from HCD will be made available; however, the date for the NOFA has yet to be determined. The City will revisit the ESG-CV funding opportunity when the second round NOFA is released.
ENVIRONMENTAL IMPACT
The request is not a Project as defined by Section 15378 of the California Environmental Quality Act (CEQA).
GENERAL PLAN CONSISTENCY
Complies with the following Rialto General Plan Guiding Principle:
Our Government will lead by example, and will operate in an open, transparent, and responsive manner that meets the needs of the citizens and is a good place to do business.
LEGAL REVIEW
The City Attorney has reviewed and supports this staff report.
FINANCIAL IMPACT
Operating Budget Impact
There is no anticipated impact to the Operating Budget.
Capital Improvement Budget Impact
There is no anticipated impact to the Capital Improvement Budget.
Licensing
A Business License is not required as part of this action.
RECOMMENDATION
Request City Council to receive and file the update on the Emergency Solutions Grant - Coronavirus (ESG-CV).