DATE: May 18, 2021
TO: Mayor and City Council
FROM: Assistant City Manager
SUBJECT
Adopt a Resolution Authorizing the City Manager to Execute an Agreement with Project Sentinel for Fiscal Year 2022 in an Amount Not-to-Exceed $150,000 to Provide Mediation Services Related to Rent Stabilization and Repayment Agreements and Support Implementing the Tenant Relocation Assistance Ordinance at the Same Level as Fiscal Year 2021
RECOMMENDATION
That the Council adopts a resolution (Attachment II) to authorize the City Manager to execute an agreement with Project Sentinel to provide administrative support, educational services, relocation assistance implementation support, and mediation services related to rent stabilization, rent repayment agreements for tenants unable to pay rent due to COVID-19 economic impacts in an amount not-to-exceed $150,000 for Fiscal Year 2022.
SUMMARY
As part of the Residential Rent Stabilization and Tenant Protection Ordinance (RRSO), the City provides a mandatory mediation program with binding arbitration to resolve rent increase disputes for tenants of covered rental units upon rent increases greater than five percent. Project Sentinel currently provides administrative support, administers the mediation and arbitration program, develops and facilitates educational workshops to advise tenants and landlords of their rights and responsibilities under the City’s RRSO, and provides recently expanded mediation services to help tenants and landlords enter into repayment agreements. Project Sentinel’s contract with the City will expire on June 30, 2021.
As the economic impacts of the COVID-19 pandemic continue to negatively affect Hayward renters and landlords, and with the current State eviction moratorium set to expire on June 30, 2021, staff recommend the Council authorize the City Manager to execute an agreement with Project Sentinel not-to-exceed $150,000 for Fiscal Year 2022. This agreement will enable the City to continue providing mediation services for both the RRSO mediation and arbitration program, as well as the expanded services to support renters and landlords as they negotiate repayment plans to recover non-payment of rent due to COVID-19, provide the City support with implementation of the Tenant Relocation Assistance Ordinance (TRAO), and provide educational workshops to landlords and tenants. The new contract would replace the current contract and maintain funding at the same level approved by Council for the previous fiscal year, which included the expansion of services to mediate repayment agreements to address unpaid rent caused by the COVID-19 pandemic.
The Rental Housing Program Fund is funded by payment of the annual Residential Rent Stabilization Fee and goes to support the administration of the RRSO and the Mobilehome Space Rent Stabilization Ordinance. There are sufficient funds budgeted in the proposed FY 2022 Operating Budget to cover the cost associated with this contract with Project Sentinel. The total fiscal impact will be equal to the amount budgeted for FY22, and there is no additional impact to the Rental Housing Program Fund.
ATTACHMENTS
Attachment I Staff Report
Attachment II Resolution