DEPARTMENT: Neighborhood and Housing Services
DEPARTMENT HEAD: Verónica R. Soto, FAICP
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
HUD FY 2020 Fair Housing and Housing Counseling Grant Ordinance for Grant Funding
SUMMARY:
Neighborhood and Housing Services Department (NHSD) requests approval of this Ordinance authorizing the following actions:
a) submission of a grant application to the U.S. Department of Housing and Urban Development (HUD) for Housing Counseling Grant funds and acceptance upon award of an amount up to $29,831 for the HUD designated performance period October 1, 2019 to September 30, 2021 and approves a budget for the term of the grant; and
b) negotiation and execution of any and all necessary documents and a grant contract to effectuate the application and acceptance of this grant, and to execute grant contract amendments pertaining to the grant when approved by the U.S. Department of Housing and Urban Development, to include: a) carry-over funds; b) line item budget revisions; c) modifications to the performance measures so long as the terms stay within the general parameters of the intent of the grant; d) no cost extensions; e) supplemental grant funds in an amount up to 10% of the total amount initially awarded; f) reimbursement increases or decreases due to a change in the number of participant served; g) one-time equipment purchases or defined program services; and h) changes in regulations.
BACKGROUND INFORMATION:
The City’s Fair Housing/Housing Counseling Program (FHHC) has provided housing counseling services to homeowners as a U.S. Department of Housing and Urban Development (HUD) Certified Housing Counseling agency since 1979. FHHC supports the delivery of a wide variety of housing counseling services to homebuyers, homeowners, low to moderate income renters, and those in danger of or experiencing homelessness. Services are provided regardless of income. The primary goal of FHHC is to improve housing stability by:
• Providing public education to reduce discrimination in housing
• Educating landlords and tenants regarding their legal rights and responsibilities
• Expanding homeownership opportunities and improve access to affordable housing
• Helping homeowners prevent or resolve mortgage delinquency, default and foreclosure, and maintain homeownership
• Providing relocation assistance in the event of displacement
• Connecting residents to emergency assistance, financial empowerment to prevent homelessness
In HUD FY 2019 (City FY 2020), the FHHC provided housing stability financial assistance to prevent eviction or foreclosure to 382 renter households and 23 homeowner households and limited housing counseling services and fair housing services (resources on evictions) to 340 households. Of these 340 households, 3 households received HUD housing counseling services to include one-on-one counseling, default counseling to homeowners, and tenant-landlord mediation. The Fair Housing program participated in 17 community outreach events on the topic of Fair Housing awareness in which there were 977 households served. Due to COVID-19, effective March 15, 2020 all Fair Housing in-person efforts were postponed until further notice. The Fair Housing division focus shifted to Emergency Housing Assistance Program (EHAP) efforts and over 28,656 households requested rent/mortgage assistance during this period.
ISSUE:
HUD Housing Counseling funding augments NHSD’s Fair Housing/Housing Counseling Program. For HUD FY 2020, NHSD received $350,000 in Community Development Block Grant (CDBG) funds to operate the Fair Housing/Housing Counseling Program as part of the FY20 HUD Action Plan approved on August 8, 2019, Ordinance No. 2019-08-08-0598.
On August 15, 2019, Ordinance No. 2019-08-15-0640, City Council approved the FY 2019 HUD Housing Counseling award of up to $40,000 for the performance period of July 17, 2019 to January 16, 2021. The actual FY 2019 Housing Counseling award amount received from HUD was $26,430.
NHSD is requesting authorization to submit a Housing Counseling Grant application to HUD and accept upon award $29,831 for the HUD designated performance period of October 1, 2019 to September 30, 2021. NHSD anticipates serving 80 households with HUD FY 2020 Housing Counseling funding of $29,831.
Upon Council approval of the HUD Housing Counseling grant dollars in the amount of $29,831, the NHSD FHHC Program combined budget will total $379,831. Combined funding will assist 480 households with maintaining housing stability.
ALTERNATIVES:
If this ordinance is not approved, another grantee would need to be identified by HUD to provide service in this area. The process of identifying a new grantee to implement services would delay the provision of housing counseling services. In addition, the discontinuation of this grant may affect the City’s ability to secure HUD Housing Counseling grant funding in the future.
FISCAL IMPACT:
This ordinance authorizes the acceptance of HUD FY 2020 Housing Counseling Grant funds in the amount up to $29,831 from HUD for the HUD designated performance period of October 1, 2019 to September 30, 2021 and approves the HUD FY 2020 budget. There is no associated personnel complement. There is no fiscal impact to the General Fund.
RECOMMENDATION:
Staff recommends approval of this ordinance to authorize the acceptance of FY 2020 Housing Counseling Grant funds, if awarded, in an amount up to $29,831 for the HUD designated performance period of October 1, 2019 to September 30, 2021.