REPORT TO COUNCIL
SUBJECT
Title
Approve a Request from Sunnyvale Community Services for $500,000 to Continue Operating the Sunnyvale Tenant Based Rental Assistance Program for Fiscal Years 2024/25 and 2025/26 and Approve Budget Modification No. 7
Report
BACKGROUND
The City awarded a $2 million contract to Sunnyvale Community Services (SCS) to operate a Tenant-Based Rental Assistance (TBRA) program. The TBRA program provides rental assistance coupled with supportive services to homeless, low-income households in Sunnyvale. Sunnyvale’s TBRA program has been in operation for nine years and moved to a two-year funding cycle in 2022. The program’s goal is to help households find housing and stay housed tong-term through case management services. The contract term is for Fiscal Years 2024/25 and 2025/26.
On September 8, 2024, SCS requested $500,000 ($250,000 per year) in additional funding for the TBRA program. SCS is requesting the funds to continue supporting up to 40 formerly unhoused families in finding safe housing and sustain market-rate rents after completing a 24-month program.
EXISTING POLICY
Housing Element of the General Plan
GOAL HE-5 EQUAL HOUSING OPPORTUNITIES-Promote equal housing opportunities for all residents, including Sunnyvale’s special needs populations, so that residents can reside in the housing of their choice.
Policy HE-5.6 Participate in the County Collaborative on Affordable Housing and Homeless Issues to provide a continuum of care of services and facilities for the homeless. Facilitate and sponsor the provision of housing for homeless people if the Onizuka base conversion plan is approved by the federal agencies. Support local service providers that offer facilities and support services to homeless individuals and families, and persons at risk of homelessness.
2020-2025 HUD Consolidated Plan
Goal C: Other Community Development Efforts
Objective: support the provision of essential human services, particularly for special needs populations.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a "project" with the meaning of the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines section 15378 (b) (4) in that is a fiscal activity that does not involve any commitment to any specific project which may result in a potential significant impact on the environment.
DISCUSSION
SCS is an independent nonprofit emergency assistance agency that was founded in 1970. Their mission is to prevent homelessness and hunger in our local community. The City and SCS have a long history of working together to support vulnerable City residents.
In December 2023, the City posted a Request For Proposal (RFP) for a two-year TBRA program with a budget of $1,350,000 per year. SCS was the only organization to apply and was awarded the contract. Of the total budget, $1,000,000 is for direct rental assistance, while $350,000 covers program expenses. SCS expressed concerns about managing the program on this fixed budget, especially given the strict administrative reporting requirements.
The contract requires SCS to provide quarterly reports that track:
• The number of households that left the program during the reporting period
• Details on individuals who:
o Completed the two-year program
o Moved to permanent housing with or without subsidy
o Moved to temporary housing (shelter, friend/family, transitional program)
o Left voluntarily with unknown destination
o Left involuntarily (hospital, jail, other institution)
o Were terminated from program for non-compliance
o Returned to homelessness
A program goal is for at least 90% of households to leave the program for a positive housing situation and for 80% or more of the participants to successfully complete the TBRA program. If any performance targets are not met, SCS will provide an explanation and a plan for improvement. If major changes are needed to meet these goals, SCS must request a contract modification. SCS will also report any operational challenges that may impact the current or future performance of the program.
SCS has stated they are unable to assist the 40 households they aimed for with just the contract award. Without the extra funding from the City, SCS would need to reduce the number of households they can support through TBRA program. SCS tried to raise the needed funds, but hasn’t been able to secure the donations. SCS needs the extra $250,000 per year to meet the contract goals.
FISCAL IMPACT
Budget modification No. 7 has been prepared to appropriate funds from the General Fund Budget Stabilization Fund to a new project - Sunnyvale Community Services TBRA Program Support:
Budget Modification No. 7
FY 2024/25
|
General Fund |
Current |
Increase/Decrease |
Revised |
|
Funding Source |
|
|
|
|
Budget Stabilization Fund |
$89,188,373 |
($500,000) |
$88,688,373 |
|
|
|
|
|
|
Funding Use |
|
|
|
|
New Project - Sunnyvale Community Services TBRA Program Support |
$0 |
$500,000 |
$500,000 |
PUBLIC CONTACT
Public contact was made by posting the Council meeting agenda on the City's official-notice bulletin board at City Hall, at the Sunnyvale Public Library and in the Department of Public Safety Lobby. In addition, the agenda and this report are available at the NOVA Workforce Services reception desk located on the first floor of City Hall at 456 W. Olive Avenue (during normal business hours), and on the City's website.
RECOMMENDATION
Recommendation
Approve a request from Sunnyvale Community Services for $500,000 to continue operating the Sunnyvale Tenant Based Rental Assistance Program for Fiscal Years 2024/25 and 2025/26 and approve Budget Modification No. 7.
Levine Act
LEVINE ACT
The Levine Act (Gov. Code Section 84308) prohibits city officials from participating in certain decisions regarding licenses, permits, and other entitlements for use if the official has received a campaign contribution of more than $250 from a party, participant, or agent of a party or participant in the previous 12 months. The Levine Act is intended to prevent financial influence on decisions that affect specific, identifiable persons or participants. For more information see the Fair Political Practices Commission website: www.fppc.ca.gov/learn/pay-to-play-limits-and-prohibitions.html
A check or “Y” in the checklist below indicates that the action being considered falls under a Levine Act category or exemption:
SUBJECT TO THE LEVINE ACT
___ Land development entitlements
___ Other permit, license, or entitlement for use
_X_ Contract or franchise
EXEMPT FROM THE LEVINE ACT
___ Competitively bid contract
___ Labor or personal employment contract
___ General policy and legislative actions
Staff
Prepared by: Connie Verceles, Deputy City Manager
Reviewed by: Trudi Ryan, Community Development Director
Reviewed by: Dennis Jaw, Interim Finance Director
Approved by: Tim Kirby, City Manager
ATTACHMENTS
1. Sunnyvale Community Services Request Letter