Title
a. Adopt a resolution to approve an increase in appropriations and revenues of $20,650,000 for the Social Services Community Programs Budget Unit 001-5010-SOC004-8258 FY 2021-22 Adopted Budget to provide emergency rental & utility assistance to residents in Monterey County (4/5ths vote required); and
b. Authorize and direct the Auditor-Controller to amend the FY 2021-22 Adopted Budget by increasing appropriations and revenues by $20,650,000 in Social Services Community Program Budget Unit 001-5010-SOC004-8258 (4/5ths vote required).
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors adopt a resolution to:
a. Approve an increase in appropriations and revenues of $20,650,000 for the Social Services Community Programs Budget Unit 001-5010-SOC004-8258 FY 2021-22 Adopted Budget to provide emergency rental & utility assistance to residents in Monterey County (4/5ths vote required); and
b. Authorize and direct the Auditor-Controller to amend the FY 2021-22 Adopted Budget by increasing appropriations and revenues by $20,650,000 in Social Services Community Program Budget Unit 001-5010-SOC004-8258 (4/5ths vote required).
SUMMARY/DISCUSSION:
The Monterey County Emergency Rental Assistance (ERA) Program (MC ERAP) began in March 2021 after being awarded both state and federal Emergency Rental Assistance (ERA1) block grants. Originally, this funding was supposed to be expended by December 2021, but has now been extended to September 30, 2022. The U.S. Consolidated Appropriations Act (2021) and State’s COVID-19 Tenant Relief Act (SB 91) initiated the first round of Emergency Rental Assistance (ERA) of $28.5 million, meanwhile, the American Rescue Plan Act (2021) established round 2 of the ERA funding of $22.3 million which will expire on September 30, 2025. The total awarded to Monterey County through both the U.S. Treasury and the State of California is $50,849,094.
Monterey County Department of Social Services (DSS) contracted with United Way of Monterey County (UWMC) to administer the program that targets low-income residents adversely impacted by the COVID-19 crisis who are at risk of becoming homeless. UWMC utilizes existing 2-1-1 infrastructure, which is staffed by trained and certified call specialists. Local partners include Central Coast Energy Services, Goodwill Central Coast, Hartnell College, Housing Resource Center, Monterey Peninsula College, North County Recreation and Park District, Salvation Army and the cities of Gonzales, Greenfield, King, Monterey, Seaside, and Soledad. Awarded funds can be used for program administration, direct financial assistance, including rent, rental arrears, utilities and home energy costs, utilities and home energy costs arrears, and other expenses related to housing. Additionally, funds may be used for housing stability services, including case management and other services intended to keep households stably housed. As of November 7, 2021, 9,728 applications were received, 8,883 of those applications have been processed and 56% of the applications (5,416) received have been approved.
At the time the FY 2021-22 Budget was adopted, DSS had not been awarded Round 2 of the Emergency Rental Assistance funding. The Program has expended $14,720,719 through September 30, 2021. DSS is recommending an increase in appropriation and revenues of $20,650,000.
OTHER AGENCY INVOLVEMENT:
Development, administration, and implementation of the MC ERAP requires departmental, intergovernmental, and private sector coordination with the UWMC and network of 2-1-1 service providers, including adherence to state and federal reporting requirements. The Auditor Controller and Purchasing have reviewed and approved this agreement. County Counsel has approved The County Administrator’s Office Budget Office concurs with these actions.
FINANCING:
DSS included $18.0 million in appropriations in the FY 2021-22 Adopted Budget. With first quarter expenditures of $11,651,828, DSS is projecting $38.6 million in annual expenditures. The Department’s recommendation is to increase appropriations and revenues of $20,650,000 for the Social Services Community Programs Budget Unit 001-5010-SOC004-8258 in the FY 2021-22 Adopted Budget.
To date, Monterey County has received $32,381,408 of the block grant revenues. ERA, Round 1 expenditure deadline has been extended from December 31, 2021 to September 30, 2022 and ERA2 has various obligation deadlines but must be expended by September 30, 2025. Based upon the current spending trend, it is estimated that the program will run out of funding by December 2022.
BOARD OF SUPERVISORS STRATEGIC INITIATIVES:
This action correlates to the Administration and Health & Human Services Strategic Initiatives adopted by the Board of Supervisors by allowing the Department to continue to receive state and federal funding to provide programs and services to the residents of the County.
Mark a check to the related Board of Supervisors Strategic Initiatives
__ Economic Development
X Administration
__ Health & Human Services
__ Infrastructure
__ Public Safety
Prepared by: Becky Cromer, Finance Manager III, x 4404
Approved by: Lori A. Medina, Director x4430
Attachment: Resolution