DATE: May 23, 2023
TO: Mayor and City Council
FROM: City Manager
SUBJECT
Adopt a Resolution Authorizing the City Manager to Execute an Amendment to the Agreement with Bay Area Community Services for the Shallow Rental Subsidy Program Operations to Add $1 Million in American Rescue Plan Act Funds Bringing the Total Not to Exceed Amount to $1.5 Million
RECOMMENDATION
Recommendation
That the Council adopts a resolution (Attachment II) authorizing the City Manager to execute an amendment to the agreement with Bay Area Community Services for the Shallow Rental Subsidy Program operations to add $1 Million in American Rescue Plan Act funds bringing the total not to exceed amount to $1.5 Million and to extend the contract through December 31, 2026.
End
SUMMARY
In July 2021, Council adopted the Let’s House Hayward! Strategic Plan (LHH Plan), which includes the activity of identifying funds for and developing a Shallow Rental Subsidy (SRS) program for extremely low-income households with high rent burdens. At the same time, Council adopted a federal expenditure plan for allocating the City’s American Rescue Plan Act (ARPA) funding, which included allocating $500,000 annually for three years (for a total of $1.5 million) to fund a shallow rental subsidy pilot program. On June 28, 2022, Council adopted a resolution authorizing the City Manager to execute an agreement with Bay Area Community Services (BACS) for $500,000 for the first year of the shallow rental subsidy pilot program.
Shallow rental subsidies are partial rent payments made on behalf of a tenant directly to their landlord to reduce their household rent burden and increase their available income. To date, the City’s SRS Program has provided support to 26 households in its first cohort. If Council authorizes the execution of a contract amendment to allocate the remaining funds dedicated in the Federal Stimulus Expenditure Plan, BACS will begin accepting referrals for the next cohort in June. Staff recommends Council adopt the attached resolution authorizing the City Manager to execute an amendment to the City’s FY23 agreement with BACS for SRS program operation increasing the amount of the agreement from $500,000 to $1.5 million in ARPA funding over three years and extending the term of the agreement through December 31, 2026.
ATTACHMENTS
Attachment I Staff Report
Attachment II Resolution
Attachment III Programs & Outcomes Overview