Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Raymond Hodges, Director, Department of Housing
Subject: ECS CDBG-CV Agreement
RECOMMENDATION:
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Adopt a resolution authorizing the Director of the Department of Housing, or designee, to execute an agreement with Episcopal Community Services to fund intensive wrap-around supportive services, for the term of July 18, 2025 through December 15, 2026, in an amount not to exceed $1,236,416.51 in federal CDBG-CV funds.
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BACKGROUND:
A. Amendment of FY 2019-20 Annual Action Plan to Reallocate CDBG-CV Funds
In accordance with federal Department of Housing and Urban Development (HUD) requirements, the County of San Mateo HOME Consortium develops a Consolidated Plan (ConPlan) every five years to identify housing, community development, and economic development needs throughout the County. Through an analysis of current housing needs, the state of the housing market, and comprehensive community engagement process, the County has established a vision, priorities, and goals to allocate its funding from HUD to improve the lives of residents of the County.
At the beginning of each new year in the five-year ConPlan cycle, the County creates an Annual Action Plan, which outlines the expected resources to be received from HUD, the projects to be funded via those resources, and the measurable goals to be achieved via those programs that year. From time-to-time the ConPlan and/or Annual Action Plan must be adjusted, which is called either a minor or substantial amendment, depending on the nature of the change.
One element of the Annual Action Plan in prior years has included the federal Community Development Block Grant-Coronavirus (CDBG-CV) program. In March 2025, the County recaptured $1,624,999.85 in fiscal year 2019-20 CDBG-CV funds from various shelter operations and public facility activities, all of which will be funded via other non-CDBG-CV sources. These funds will be reallocated via an amendment to the FY2019-20 Annual Action Plan to new public service activities assisting persons impacted by COVID-19. The $1,624,999.85 in recaptured funds are now available for reallocation to other purposes that are eligible under CDBG-CV requirements. This Board is concurrently presented with a separate Board item to approve an amendment to the County’s Annual Action Plan to address the reallocation of this funding.
B. Reallocation of CDBG-CV Funds for Services at Homekey Permanent Supportive Housing Projects
On June 13, 2023, this Board adopted Resolution No. 079743 which among other actions authorized a Memorandum of Understanding (“MOU”) setting forth the terms and conditions under which Episcopal Community Services of San Francisco (“ECS”), as the County’s co-applicant for the Homekey program, would provide intensive wrap-around supportive services for the residents of a property at 721 Airport Blvd. in South San Francisco to be purchased in-part with funding provided by the Homekey program.
On August 13, 2024, under Resolution No. 080574, the Board provided further authorization for the rehabilitation and funding for the property, to provide permanent supportive housing for persons experiencing or at risk of homelessness. Further to such authorizations, the County has acquired the property and will ground lease it to a special purpose entity formed by ECS to renovate and operate.
On March 25, 2025, this Board adopted Resolution No. 081011 which among other actions authorized a Management Agreement under which ECS will provide property management services for an additional Homekey-funded property known as Casa Esperanza, located in Redwood City. The Casa Esperanza project also provides permanent supportive housing for persons experiencing or at risk of homelessness. This Board authorized a long-term ground lease with ECS, or a special purpose entity controlled by ECS, to manage and operate the project. Residents of Casa Esperanza also require intensive wrap around supportive services.
Provision of services to persons experiencing or at risk of homelessness and disproportionately impacted by COVID-19 is an eligible use of CDBG-CV funds.
DISCUSSION:
Residents of the Casa Esperanza and South San Francisco supportive housing projects require access to a comprehensive array of behavioral health and other supportive services that can be funded with CDBG-CV funds as a public service program.
In connection with the reallocation of available CDBG-CV funds, staff recommend that this Board approve an agreement with ECS to provide $1,236,416.51 for intensive wrap-around supportive services to persons experiencing or at risk of homelessness, who were disproportionately impacted by COVID-19 and are housed in the Casa Esperanza and South San Francisco Homekey facilities. The term of the proposed agreement is from July 18, 2025, through December 15, 2026.
The funding provided under the proposed agreement will support clients in achieving greater stability in their lives and developing skills that promote greater self-sufficiency, with the primary goal of maintaining housing.
The County Attorney has reviewed the proposed agreement and resolution as to form.
COMMUNITY IMPACT:
This program, led by ECS, is designed to serve at least 100 persons experiencing homelessness, who were disproportionately impacted by the COVID-19 pandemic. A substantial number of those served will be elderly, which is a segment of the population experiencing increases in homelessness.
FISCAL IMPACT:
The County’s maximum fiscal obligation under the agreement is not to exceed $1,236,416.51 for the 17-month term and will be funded through Federal CDBG-CV funds. The funding for this agreement is included in the Fiscal Year 2025-26 adopted budget. There is no net County cost associated with expenditures under the federal entitlement programs.