TO: Board of Supervisors
FROM: Ryan J. Alsop, County Executive Officer
REPORT BY: Jennifer Palmer, Director of Housing & Homeless Services
SUBJECT: Professional Services Agreement No. 240332B with the Bay Area Housing Finance Authority for the Older Adult Rental Assistance Pilot Program.
RECOMMENDATION
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Approve and authorize Revenue Agreement No. 240332B with the Bay Area Housing Finance Authority (BAHFA) for $5,000,000 for the term April 1, 2024 through June 30, 2028 and a related Budget Amendment for rental assistance support the remainder of the current fiscal year. (Fiscal Impact: $5,000,000 revenue; Affordable Housing Fund, Housing Stabilization Subdivision; Not Budgeted; Discretionary)
[4/5 vote required]
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BACKGROUND
The Bay Area Housing Finance Authority (BAHFA) was created pursuant to the San Francisco Bay Area Regional Housing Finance Act (Govt Code 64500, et seq.) (“the Act”) to raise, administer, and allocate funding and provide technical assistance at a regional level for tenant protection, affordable housing preservation, and new affordable housing production. Pursuant to Government Code 64520(j), BAHFA utilizes staff from the Metropolitan Transportation Commission.
The Act authorizes BAHFA to provide rental assistance for low-income residents of the Bay Area as part of its central mandate to protect vulnerable residents from displacement and homelessness in the Bay Area. On May 24, 2023, the MTC adopted Resolution 4578 granting $5,000,000 to BAHFA to establish a new Rental Assistance Program to prevent homelessness. BAHFA then adopted Resolution 0030 on June 28, 2023, to authorize the use of these funds to create an Older Adult Rental Assistance Pilot Program.
On August 15, 2023, BAHFA released a request for proposals (RFP), seeking an eligible entity to finalize program design and administer an Older Adult Rental Assistance Pilot Program (Program) in one or more counties of the nine-county Bay Area Region. The Program will provide monthly rental assistance to extremely low-income and severely rent-burdened, older adult and fixed income households for up to 48 months. Statewide Point-in-Time (PIT) count data shows Seniors are the fastest growing homeless population of any age group, with a 108% increase between 2017-2020 in California. Among extremely low-income older adults, the cause of homelessness is most often a financial or health crisis. This pilot project will focus on the senior population because most financial assistance programs are designed for 12-24 months, with a focus on workforce development to stabilize household income. In the case of seniors, returning to work is not a likely or reasonable resolution to acute financial crisis.
On September 12, 2023, the Board of Supervisors directed staff to apply for and, if awarded, accept the BAHFA Older Adult Rental Assistance Pilot Program grant funding. Housing & Homeless Services staff worked collaboratively with a consortium of community-based organization and public sector partners to design a four-year Program and service delivery model using grant funds and other existing braided funding sources. On November 8, 2023, Napa County was selected among all proposals to receive the full $5,000,000 to launch and administer the Program. The Program is designed to assist extremely low income, severely rent-burdened seniors in Napa County who are at imminent risk of experiencing homelessness by improving their long-term housing stability through guaranteed rental assistance.
Today’s action approves and authorizes Revenue Agreement No. 240332B with the Bay Area Housing Finance Authority (BAHFA) for $5,000,000 for the term April 1, 2024 through June 30, 2028, for the provision and administration of the pilot Older Adult Rental Assistance Program. The budget action increases appropriation for a small amount of rental assistance (in proportion to the four-year pilot program total rental assistance) for the month potential start of the program in June 2024.
Requested Actions:
1. Approve Revenue Agreement 240332B with Bay Area Housing Finance Authority
2. Approve Budget Amendment:
a. Increase appropriation by $15,000 in Affordable Housing Fund (2080-2080040-52430) for rental assistance in current fiscal year
b. Increase revenue by $15,000 in Affordable Housing Fund (2080-2080040-43950)
FISCAL & STRATEGIC PLAN IMPACT
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Is there a Fiscal Impact? |
Yes |
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Is it currently budgeted? |
No |
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Is it Mandatory or Discretionary? |
Discretionary |
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Discretionary Justification: |
This action is discretionary in that there is no mandate to contract with BAHFA or administer the Program. |
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Is the general fund affected? |
No |
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Future fiscal impact: |
All program funds shall be expended by June 30, 2028 and will be budgeted accordingly each fiscal year. |
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Consequences if not approved: |
If this contract is not approved, Napa County will not receive the grant funding and will not be able to administer the Program. |
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Additional Information |
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ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: The proposed action is not a project as defined by 14 California Code of Regulations 15378 (State CEQA Guidelines) and therefore CEQA is not applicable.