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File Number: 20-472 <br />staff’s proposed recommendation to add the entire $711,206 CDBG-CV Round III allocation to <br />the Rental Assistance Program (RAP), which the City Council approved in June 2020 under the <br />First Substantial Amendment to the FY 2019-2020 Action Plan by allocating the $451,972 in <br />CDBG-CV Round I funding. The City entered into a contract with Centro Legal de La Raza, a <br />non-profit, to administer the RAP Program. RAP was created to assist residential renters <br />impacted economically during the county-wide COVID-19 shelter in place orders, to prevent <br />homelessness of low-income renter households, and to help landlords cover their rental operation <br />costs during this period of economic uncertainty. <br /> <br />While HUD temporarily streamlined CDBG public noticing and comment requirements to address <br />COVID-19 for this and the next fiscal years, it has not eased cumbersome programmatic <br />administrative requirements for distributing CDBG funds. To efficiently and effectively distribute <br />CDBG-CV Round III funds, staff recommends allocating the entire amount to the RAP based on <br />the following preliminary needs analysis compiled from the applications received during the open <br />application period from September 8 through September 30. The City received just under 250 <br />applications-this is just over 6 times the number of households that the Round I funds were <br />projected to assist. Over 60% of the households who applied have at least one child under the <br />age of 18 years old. Over 20% of the households who applied have been homeless at least once <br />in their lives. Over half (55%) of the households who applied said that their hardship with paying <br />rent was due to the loss or reduction of their employment wages. Just under one quarter of <br />households had at least one occupant with a disability. Under 10% of households who applied for <br />assistance were seniors over the age of 62 years old. Nearly 60% of the households were having <br />difficulty paying their utility costs, while nearly 40% were having difficulty securing enough food for <br />their family’s needs. <br />One important change to the existing Rental Assistance Program that staff also proposes is an <br />increase from 3 months to up to 6 months of rent relief/assistance to income eligible renters <br />impacted by COVID-19 given the likely ongoing need that many renters who have applied will <br />face. Staff is also researching the feasibility under HUD regulations of using CDBG-CV funds to <br />cover past due utility costs. <br />A summary of the proposed Amendment to FY 2019-2020 CDBG funding allocations by funding <br />category is summarized with funding amounts in Attachment A. Given the removal of the Public <br />Service funding cap, the City will increase its current FY 2019-2020 commitment of $578,413 by <br />the CDBG-CV Round III amount of $711,206. Staff proposes to add this amount to Centro Legal <br />de la Raza’s existing Rental Assistance Program allocation in the amount of $451,972 for a total <br />allocation of $1,163,178. <br />Current Agency Policies <br />Current City Council Policy is defined by the First Amendment to the FY 2015-2019 Consolidated <br />Plan, the First Substantial Amendment to the FY 2019-2020 Annual Action Plan, and the Citizen <br />Participation Plan Update, all of which were adopted by the City Council through Resolution No. <br />2020-055 on June 15, 2020. <br />Applicable General Plan Policies <br />Page 3 City of San Leandro Printed on 11/11/2020