Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Raymond Hodges, Director, Department of Housing
Subject: 2024-2027 State of California Emergency Solutions Grants (CA ESG) Funds
RECOMMENDATION:
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Adopt a resolution:
A) Approving, adopting and authorizing the President of the Board of Supervisors and the County Clerk to execute a resolution substantially in the form attached as Attachment A as required by the California Department of Housing and Community Development (“HCD”) approving an application for funding and the execution of a grant agreement and any amendments thereto from the 2024-2027 funding years of the State ESG program; and
B) Authorizing the Director of the San Mateo County Department of Housing, or designee(s), if the County receives an award in an amount not to exceed $784,809 plus any additional allocations in State of California Emergency Solutions Grants (CA ESG) funding pursuant to the application, to award such funding to qualified service providers through a Notice of Funding Availability (NOFA) process that meets the requirements of CA ESG Regulations, with adjustments to be made to individual awards on a pro rata basis once final allocations have been confirmed by HCD; and
C) Authorizing the Director of the Department of Housing, or designee(s), to execute a Standard Agreement with the State and any subsequent amendments, documents, and modifications, which are related to the CA ESG Program or Funds awarded to the County in connection therewith; and
D) Authorizing the Director of the Department of Housing, or designee(s), acting in consultation with the County Attorney, to negotiate and execute any and all agreements, documents, certificates and amendments with awardees of CA ESG funding under said Notice of Funding Availability as may be necessary and advisable and within the scope of funding received pursuant to this resolution.
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BACKGROUND:
The State of California Department of Housing and Community Development (HCD) administers the Emergency Solutions Grants (ESG) program with funding received from the U.S. Department of Housing and Urban Development (HUD). The federal ESG program provides funding to (1) engage homeless individuals and families living on the street; (2) increase the number and quality of emergency shelters for homeless individuals and families; (3) help operate these shelters; (4) provide essential services to shelter residents; and (5) prevent families/individuals from becoming homeless.
On December 31, 2024, HCD released the 2024-2027 Notice of Funding Availability for the Continuum of Care Allocation (State NOFA), which included funds from the federal ESG program. As part of the application requirements for the State NOFA, HCD is requiring applicants to obtain a Governing Board Authorizing Resolution that substantially conforms to HCD’s form. The HCD form resolution is submitted with this memorandum and attached to the County’s resolution as Attachment A.
However, until the State adopts a final budget, the specific, total amount of CA ESG funds that will be made available to applicants is unknown. Thus, HCD has recommended that the County’s Department of Housing (DOH) seek authorization to apply for an amount not to exceed $784,809.00 in CA ESG Funds, which is an amount equal to one hundred and fifty percent of the preliminary CA ESG allocation for San Mateo County according to current formula calculations.
Taking this action now will allow DOH to receive the necessary authorizations to apply and carry out these CA ESG programs without having to seek this Board’s authorization again once the final CA ESG allocation amount is determined following the State budget process.
DISCUSSION:
DOH currently administers ESG funding directly allocated to the County by HUD. The Notice of Funding Availability (NOFA) for the County’s ESG Entitlement funding from HUD and allocation recommendations of ESG funding have been developed in collaboration with the County of San Mateo Human Services Agency (HSA). HSA is the lead agency for the local Continuum of Care (CoC) and brings the group together to prioritize funding needs. DOH issues the NOFA, gathers responses and works with the CoC to review and score applications, select recipients, and determine funding levels. The methodology for awarding the County ESG Entitlement funding is also being used for CA ESG funding allocated to the County by HCD, as described below.
According to HCD’s recommendation to multiply the County’s expected allocation according to current formula calculations by one hundred and fifty percent of the preliminary ESG allocation, staff recommends applying for an amount not to exceed $784,809.00.
CA ESG funding is used to support critical housing needs for individuals experiencing homelessness in San Mateo County. On December 3, 2024, DOH issued a NOFA inviting applications from qualified service providers to provide eligible activities to address homelessness under the CA ESG program. Under State Regulation (25 CCR § 8403(i)) as an Administrative Entity, San Mateo County is required to award no less than 40% of available CA ESG funding to rapid rehousing activities. The remaining funds will be available to fund the following eligible activities: (1) operating emergency shelters for homeless individuals and families and/or (2) increasing the number and quality of emergency shelters for homeless individuals and families.
Approximately 2.6% of the anticipated CA ESG funding amount is available for direct administrative or program costs. In accordance with HCD’s application requirements, the accompanying Board resolution also includes Attachment A that: (1) is formatted in a way that differs from the standard County resolution in order to comply with the application requirements of the State NOFA; and (2) must be executed contemporaneously with the standard County resolution.
The County Attorney has reviewed and approved the resolution as to form.
EQUITY IMPACT:
The CA ESG program is available to the County to support individuals experiencing homelessness. According to the County’s latest Point-in-Time Count, a disproportionately high number of these individuals identify as Black, African American, African, Native Hawaiian, Pacific Islander, or Hispanic/Latino/a/e compared to the general population of the County. The funds from this program support various solutions to homelessness, including rapid rehousing, emergency shelters, and additional services.
FISCAL IMPACT:
There is no net County cost from adopting the proposed resolution to authorize the application for CA ESG funding and related authorizations. CA ESG funds are pass-through federal funding that, if awarded, will be administered by DOH.