DEPARTMENT: Neighborhood and Housing Services
DEPARTMENT HEAD: Verónica R. Soto, FAICP, Director
COUNCIL DISTRICTS IMPACTED: City-Wide
SUBJECT:
COVID 19 Emergency Housing Assistance Program
SUMMARY:
An ordinance approving the creation of the COVID 19 Emergency Housing Assistance Program to provide housing assistance to individuals and families impacted by COVID 19, accepting up to $2,000,000.00 from the San Antonio Housing Trust Foundation and Public Facilities Corporation to be included in the proposed budget for the Program totaling $15,833,834, authorizing the acceptance of any additional funds that may result from the solicitation of private donations for the COVID 19 Emergency Housing Assistance Program, and amending the FY2020 Affordable Housing Budget to reflect reallocations and reductions in funding from the General fund, Tax Increment Reinvestment Zones, and Community Development Block Grant that are necessary as a result of the COVID 19 pandemic. The COVID 19 Emergency Housing Assistance Program is only temporary and it expires on July 31, 2020.
This ordinance also authorizes a funding agreement with Family Independence Initiative (FII) for an initial amount of $1,900,000. The $1,900,000 is from the $15,833,834 Program budget. The funding agreement will help leverage additional funds for local non-profits and the Department of Human Services will coordinate with FII on which non-profits will receive funding.
BACKGROUND INFORMATION:
The CARES Act provides relief to individuals and businesses that have been negatively impacted by COVID 19. Specifically, it provides one-time payments to qualifying individuals or families and expands unemployment benefits to include an additional $600 per week. This financial assistance is crucial for many in the San Antonio community, as over 84,000 Bexar County residents have filed for unemployment. Additionally, requests to the City’s Risk Mitigation Fund for housing assistance have increased from an average of 57 inquiries a week to over 5,300 inquiries last week.
The actual need for housing assistance is difficult to determine at this time as the individuals and families that qualified for stimulus funds are just now receiving their one-time payment and unemployment claims are still being processed. Another challenge is that not every person qualifies for benefits through the CARES Act leaving out a part of our community.
Based on the increase in unemployment and requests for housing assistance and the need to help those that may not receive funding through the CARES Act or that receive funding from the CARES Act and it is not sufficient, staff is recommending the creation of the COVID 19 Emergency Housing Assistance Program. The initial budget for the program is $15,833,834, which will support 7,200 to 11,200 families. Staff is recommending to return to City Council in 30 days to report on usage, need and recommend further adjustments if necessary. Additionally, donations to the effort will be further coordinated with the San Antonio Housing Trust, San Antonio Area Foundation, United Way, and the COVID-19 Philanthropy Working Group.
ISSUE:
Staff is recommending the creation of the COVID 19 Emergency Housing Assistance Program. The Program will follow the same eligibility and allowance criteria prescribed in the Risk Mitigation Fund Policy that was adopted by City Council in 2018. Applicants must be a current resident of the City and also meet all the following criteria:
• Be the primary lease or mortgage holder in a multifamily unit, mobile home, or single-family home within the city limits of San Antonio;
• May only apply for rent, mortgage, and utility assistance related to one primary property;
• Have a household income at or below 100% AMI as defined by HUD; and
• Provide documentation for the proof of hardship that renders the household unable to pay rent, mortgage or utilities. The documentation may be in the form of an employment termination letter, proof of unemployment application, or letter from an employer certifying a reduction of hours.
The only difference between the Risk Mitigation Fund Policy and the COVID 19 Emergency Housing Assistance Program is that the allowable uses for the funds will be expanded to include groceries, medicine, fuel, and expenses related to internet access. Funds for rental, mortgage, internet, and utility assistance will be paid directly to the landlord, financial institution, internet provider, and utility provider. Funds for groceries, gas, and medicine will be distributed in the form of cash assistance or debit cards and will be provided directly to the family receiving assistance. The amount of assistance will be based on family size.
|
Family Size |
Amount of Cash Assistance |
|
1 |
$150 |
|
2 |
$200 |
|
3 |
$250 |
|
4 or more |
$300 |
To administer the disbursement of the cash assistance that will be provided directly to the families, the City is executing a funding agreement with the Family Independence Initiative (FII). The funding agreement will be in an initial amount of $1,900,000 from the $15,833,834 program budget. Additional funds received by the COVID 19 Emergency Housing Assistance Program may be added to the funding agreement if other contributions from the San Antonio Housing Trust, San Antonio Area Foundation, United Way, and the Philanthropy Working Group are received.
FII is a non-profit and national center for anti-poverty innovation offering results-based, community-driven solutions to reducing poverty. FII’s approach, inspired by the historical successes of poor and immigrant communities in the U.S., shifts responsibility for upward mobility away from government and into the hands of families who experience poverty. Utilizing FIIs technology platform will also allow the community to leverage additional private dollars for our COVID 19 response and recovery.
The City’s initial contribution of $1,900,000 from the COVID 19 Emergency Housing Assistance Program will immediately leverage $1,100,000 from FII and local community funders with the expectation that an additional $800,000 will be made available for a total of $1,900,000 of funds from FII and local community funders. As the amount of the funding agreement increase so does the potential for additional funds from FII. Funds from FII will not be used for the COVID 19 Emergency Housing Assistance Program but will instead be directed to local community non-profits. Some of the families receiving funding through the Program may also be eligible to receive services and funds from those non-profits that FII supports. DHS is working with FII to distribute this assistance to vulnerable families and local non-profit agencies that are severely impacted by COVID-19 including Family Service Association, Communities in Schools, Good Samaritan Center, and Avance. Additionally, 350 families participating in Human Services’ Head Start and NXT Level programs will receive the cash assistance to use for basic needs such as groceries, gas, and medicine. DHS will coordinate with FII to direct how any additional funds will be used.
The COVID 19 Emergency Housing Assistance Program will sunset on July 31, 2020.
ALTERNATIVES:
City Council could choose not to approve the program. Such action would have a detrimental impact on numerous residents in San Antonio.
FISCAL IMPACT:
Staff has identified 15,833,834 for the COVID 19 Emergency Housing Program. Funding for the Program is identified in the chart below.
*Includes $2.9 million in CDBG funding from the affordable housing budget that was reallocated.
The $15,833,834 will help 7,200 to 11,200 families in San Antonio depending on the total amount of assistance they receive.
Additional funding for the Program may be available as a result of private donations. The City partnered with the San Antonio Housing Trust and the San Antonio Area Foundation to solicit donations from the community. Smaller donations can be made online https://app.mobilecause.com/e/AMJd-w?vid=6vo9b or by texting HousingHelpSA to 41444. Larger donations through businesses, corporations and philanthropic partners will be collected via email (covid19@saafdn.org <mailto:covid19@saafdn.org>). Additionally, the COVID 19 Philanthropy Working Group is also assisting with the solicitation of donations for this program
Of the $15,833,834, $1,900,000 will be dedicated for direct cash assistance to families, which will be distributed by FII. Families receiving assistance through the COVID 19 Emergency Housing Assistance Program will receive cash assistance in an amount not to exceed $300.
The proposed budget includes $3,524,313 from the reallocation of funds from within the Affordable Housing Budget that resulted in the suspension of some of the Affordable Housing Programs. An additional $3,195,860 was suspended to offset revenue losses in the City’s General Fund. This action amends the FY 2020 Affordable Housing Program to reflect such adjustments.
RECOMMENDATION:
Staff recommends approval of an Ordinance authorizing the creation of the COVID 19 Emergency Housing Assistance Program, authorizing acceptance of up to $2,000,000 from the San Antonio Housing Trust Foundation and Public Facilities Corporation and other private donations that may result from fundraising efforts and amending the FY2020 Affordable Housing budget to reflect the reductions and reallocations that are necessary as a result of COVID 19. Additionally, staff recommends approval of a funding agreement with Family Independence Initiative that will facilitate direct cash assistance to recipients of the COVID 19 Emergency Housing Assistance Program and also leverage additional funds for the community.