REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
January 23, 2024
FROM
CARRIE HARMON, Director, Community Development and Housing Department
SUBJECT
Title
Administrative Action for Emergency Rental Assistance Program Funds
End
RECOMMENDATION(S)
Recommendation
1. Transfer accrued interest on the Emergency Rental Assistance Program Round 1 funds, in the amount of $235,540, to the United States Department of Treasury.
2. Transfer Emergency Rental Assistance Program Round 2 administrative funds to continue rent relief services to county residents via the State’s Housing is Key program, in the amount of $664,436.95, and accrued interest in the amount of $98,472.06, for a combined total of $762,909.01, to the California Department of Housing and Community Development.
(Presenter: Carrie Harmon, Director, 382-3983)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Promote the Countywide Vision.
Operate in a Fiscally-Responsible and Business-Like Manner.
Provide for the Safety, Health and Social Service Needs of County Residents.
Focus on Recovery and Resiliency Following Major Emergency Responses such as the Global COVID-19 Pandemic.
FINANCIAL IMPACT
Approval of this item will not result in the use of Discretionary General Funding (Net County Cost). This item will allow the Community Development and Housing Department (CDH) to transfer the accrued interest on Emergency Rental Assistance Program Round 1 (ERA1) funds, in the amount of $235,540, to the United States Department of Treasury (Treasury). It will also allow CDH to transfer Emergency Rental Assistance Program Round 2 (ERA2) administrative funds to continue rent relief services to county residents via the State’s Housing is key program, in the amount of $664,436.95, and accrued interest in the amount of $98,472.06, for a total of $762,909.01, to the California Department of Housing and Community Development (HCD). Adequate appropriation and revenue have been included in CDH’s 2023-24 budget.
BACKGROUND INFORMATION
CDH is requesting that the Board of Supervisors (Board) authorize the transfer of the accrued interest earned on the administrative portion of ERA1 funds allocated to the County in January 2021 in response to the global Coronavirus 2019 (COVID-19) pandemic totaling $235,540 to the Treasury. In addition, as a result of a shift of the administration of the County’s emergency rent relief program to the State to enhance community support further, CDH is requesting the Board authorize the transfer the balance of ERA2 administrative funds, and accrued interest, totaling $762,909.01, to the HCD.
The ERA1 and ERA2 funds were initially held to allow for the final review of cases that were administered at the local level to ensure all appropriate rental funds were remitted to landlords and there were no outstanding tenant stipends unpaid before funds were exchanged. The requested fund transfers will facilitate the final steps in closing out the Emergency Rental Assistance Program (ERAP) at the County level. The ERA1 and ERA2 funds will be redirected to HCD for distribution to eligible county residents through the State rental assistance program, known as Housing is Key.
ERAP funding was made available by the Treasury, under the federal Consolidated Appropriations Act of 2021 and the federal American Rescue Plan Act of 2021, to assist qualified households impacted by the COVID-19 pandemic to maintain their housing through rental and utility assistance. As of October 2023, ERAP has aided nearly 18,000 households throughout the county. Approximately $182,000,000 in rental payments and $11,000,000 in utility payments have been paid, for a total of $193,000,000 in relief provided to county residents. The transfer of the ERA2 administrative funds and accrued interest on both ERA1 and ERA2 funds will provide the State’s Housing is Key program additional funding for payments to landlords and utility companies to benefit county residents.
On February 9, 2021 (Item No. 23), the Board ratified the Chief Executive Officer’s (CEO) action, taken on January 12, 2021, to receive a direct payment of $52,023,225 in ERA1 funds from the Treasury to administer ERAP locally. On March 9, 2021 (Item No. 14), the Board authorized the development of the locally administered ERAP to serve county residents in compliance with the Federal Consolidated Appropriations Act of 2021.
On April 9, 2021, the County announced the San Bernardino County Rent Relief Partnership (SBCRRP) Program, an emergency rental assistance program that would leverage the federal ERA1 funds to provide rental and utility assistance to County residents impacted by the COVID-19 pandemic. The County partnered with Inland SoCal 211+ (ISC211+) to administer the SBCRRP Program, which provided up to 12 months of rental arrears and/or prospective rent payments, as well as utility arrears and prospective assistance as established by the Federal ERAP guidelines. The program began accepting applications on April 12, 2021.
On June 8, 2021 (Item No. 39), the Board ratified the CEO’s action to approve the acceptance of award terms in County Contract No. 21-465, to receive a direct payment of approximately $56,786,650 in ERA2 funds from the Treasury. On June 28, 2021, HCD notified the County that, with the approval of Assembly Bill 832, the County could shift how emergency rent relief programs were administered. Having met the Treasury's performance benchmark for obligation of ERA1 funds and helping more than 4,500 county residents retain their housing, the County per guidance received from the State, merged the SBCRRP Program with the State’s Housing is Key program, effective October 1, 2021. This action allowed for the consolidation of the State and local rental assistance programs, streamlining processes, reducing public confusion, and increasing program efficiency.
Upon notifying the local partner agency, ISC211+, that the County was transitioning administration of the County’s local ERAP to the State, the County transferred the entire direct payment of ERA 2 funds and the remaining direct assistance and administrative ERA 1 funds, totaling $12,578,077.77, to the Treasury to be redistributed and administered by HCD. On October 26, 2021 (Item No. 28), the Board approved the termination of the MOU with HCD regarding the State and County bifurcated rental assistance programs and adopted Resolution No. 2021-178. The Resolution authorized the County to participate in the State’s Housing is Key program under which HCD would manage the County’s direct allocation of ERA2 funds and the State’s proportionate share of the ERA2 funds allocated for the region. It also terminated County Contract No. 21-465 with the Treasury, allowing the County to transfer ERA2 funds and approving an agreement with HCD for the administration of such funds on behalf of the County, which resulted in program enhancements and improved services to the community.
On June 7, 2022, HCD informed CDH that it was forecasting the State could spend more than what was originally allocated for the County, and the Treasury had allowed for localities to voluntarily redirect remaining and unobligated ERA funds to HCD for disbursement on behalf of the locality. While the County has expended its direct allocations of ERA1 and ERA2 funds, the transfer of the balances identified in the Recommendations would provide the State additional funds to address housing instability in the county and provide additional services to community members in need.
PROCUREMENT
N/A
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Suzanne Bryant, Deputy County Counsel, 387-5455) on December 19, 2023; Finance (Christopher Lange, Administrative Analyst, 386-8393) on January 3, 2024; and County Finance and Administration (Cheryl Adams, Deputy Executive Officer, 388-0238) on January 8, 2024.