Title
Report regarding a resolution approving Budget Amendment 25.027 appropriating $177,000 in the Low- and Moderate- Income Housing Fund (Fund 241) in Fiscal Year 2024-25 for the City’s Emergency Rental Assistance Program. (Elia Moreno, Housing Management Analyst I)
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RECOMMENDATION
Recommendation
Staff recommends that the City Council adopt a resolution approving Budget Amendment 25.027 appropriating $177,000 in the Low- and Moderate-Income Housing Fund (Fund 241) for the Fiscal Year (FY) 2024-25. Specifically, the appropriation includes $150,000 for direct rental assistance and $27,000 for program administration.
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BACKGROUND
On February 26, 2020 the City Council approved Resolution #20-133 that allocated $30,000, establishing the South San Francisco Emergency Rental Assistance Program. The purpose of the fund allocations was to provide one-time financial rental assistance for individuals or families who experienced an emergency or financial hardship. Emergency rental assistance programs have played a key role for low-income renters as local jurisdictions recognize that renters are highly vulnerable to debt, homelessness, and displacement.
The following program guidelines were developed as a basis of qualifications for the program:
• Must be a household within South San Francisco earning up to 80% of the area median income. For a single household in 2024, that is $109,700 annually. For a household of four, that is $156,650 annually.
• A household can only receive up to the amount of $4,500 of assistance from the program. Households who have previously applied and have already met the cap amount will not qualify for assistance.
• Residents seeking assistance must provide evidence of need of emergency rental assistance - showing a late payment notice or insufficient funds demonstrating that the tenant is experiencing financial hardship. During the application process, YMCA will collaboratively work with each household to create a plan demonstrating sustainability beyond the financial assistance.
Since February 2020, City Council has approved the appropriation of $875,000 towards direct rental assistance, and $119,500 for program administration. Council approvals and appropriations are as follows:
• February 26, 2020: Rental Assistance Appropriation: $30,000; Program Administration Appropriation: $0
• April 8, 2020: Rental Assistance Appropriation: $220,000; Program Administration Appropriation: $22,000
• June 24, 2020: Rental Assistance Appropriation: $250,000; Program Administration Appropriation: $37,500
• July 27, 2022: Rental Assistance Appropriation: $250,000; Program Administration Appropriation: $37,500
• January 10, 2024: Rental Assistance Appropriation: $125,00; Program Administration Appropriation: $22,500
Since 2020, the total approved appropriations towards the Emergency Rental Assistance Program have served 272 households with an average request of $3,101.05 in assistance per household. A total number of 776 individuals were assisted, with 314 individuals under the age of 18. A breakdown of the geodemographics of households assisted are as follows:
|
Reported Race |
Approximate Percentage of Program Households |
|
Latinx |
61.4% |
|
White |
16.5% |
|
African American |
8.8% |
|
Asian |
6.6% |
|
Native |
1.8% |
|
Hawaiian/ Pacific Islander |
1.5% |
|
Two or More Races |
0.4% |
|
Other/ Undisclosed |
3.0% |
|
District |
Number of Households (%) |
|
District 1 |
20.6% |
|
District 2 |
7.0% |
|
District 3 |
17.0% |
|
District 4 |
9.0% |
|
District 5 |
43.0% |
|
Oyster Cove Marina Displaced Liveaboards |
3.4% |
YMCA Administration
The YMCA Community Resource Center has been designated as the program administrator of the City’s Emergency Rental Assistance program. YMCA has been the County-selected Core Service Agency providing safety net services to South San Francisco, Brisbane, and San Bruno residents in need of food, emergency housing assistance, emergency utility assistance, shelter, and other basic needs. As the Core Service Agency, the YMCA is already the first place that South San Francisco residents facing housing and financial insecurity would visit to access assistance, making it a natural fit to administer this City-funded safety-net program.
As previously approved at the January 10, 2024 City Council meeting, an increase in program administration (from 15% to 18%) is reflected on the proposed appropriations. The City’s previous administrative fee of 15% did not adequately reflect the YMCA staff time spent on the program. YMCA has shared that it has taken more administrative time to manage the program. Upon making the initial contact with the client, a YMCA case manager reviews the client’s application, assists with translation/interpretation if applicable, contacts the landlord, coordinates paperwork to be completed, and submits the payment request and application to the City. A follow-up call with each household is made six months after the initial request of emergency rental assistance, to confirm their current housing and economic status. Case managers dedicate more time helping monolingual clients and establishing trust with landlords who are hesitant about the program.
DISCUSSION
Rental assistance programs serve as a critical bridge for individuals and families facing financial hardships. The occurrence of unexpected expenses or economic loss in a household can cause negative economic impacts. The new budget appropriation being considered will provide financial relief and help lower income South San Francisco renters avoid eviction and attempt to maintain stable housing during times of economic uncertainty.
With the assistance of YMCA staff, the City focused on the timeline between January 2023 through June 2024 to call applicants and check in on their current housing status. Of a total of 89 participants, YMCA was able to get in contact with 51 of the applicants. Of the 51 applicants, 76% reported they continue to reside in the same home, 84% continue to live in South San Francisco and 1% reported being unhoused.
Staff anticipates the continuing need for the program in the community, as high rent costs and inflation continue to affect the most vulnerable members, leading to housing insecurity. During follow-up calls, 65% of the applicants reported they continue to experience housing insecurity, mostly due to high costs of living. Aside from the continuing rise in cost of living, applicants are inclined to apply for emergency rental assistance because of a loss of income, or an unexpected expense.
Program administrator, YMCA, collects the necessary data to ensure all requirements are met, including collecting information on why the applicant is experiencing financial hardship. Of 272 applicants, 75% of applicants experienced a loss of income within the household. Examples include losing their job, going through a divorce and losing the income of a spouse, a roommate unexpectedly moving out, and/ or experiencing a sudden death. The percentage does not account for applicants who are experiencing sudden emergency expenses.
Rental assistance programs are especially crucial for vulnerable residents in our community, including seniors, individuals with disabilities, and families with young children, including single parents. The Emergency Rental Assistance Program offers a safety net that protects these groups from housing instability and homelessness. Once program funds are no longer available, applicants seeking emergency rental assistance are denied. The high demand for aid often overtakes available resources, leaving eligible applicants without critical support.
FISCAL IMPACT
Approval of Budget Amendment Number 25.027 will appropriate $177,000 from Fund 241, which includes $150,000 for rental assistance and $27,000 for administrative costs in FY 2024-25. The unencumbered cash balance of Fund 241 as of October 30, 2024, is $2.5 million. Fund 241 receives roughly $212,486 in annual income, providing a fairly stable and reliable source of funding for this program. This appropriation will have no impact on the General Fund.
CONCLUSION
Staff recommends that the City Council adopt a Resolution approving Budget Amendment Number 25.027 appropriating $177,000 in Fund 241 for FY24-25. The appropriation includes $150,000 for rental assistance and $27,000 for program administration.