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Report regarding a Resolution approving budget amendment 21.005 appropriating $250,000 in the City of South San Francisco’s Low and Moderate Income Housing Fund in Fiscal Year 2020-2021 for Emergency Rental Assistance for South San Francisco residents facing financial hardship due to the COVID-19 pandemic and $37,500 for associated administration. (Kris Romasanta, Community Development Coordinator)
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RECOMMENDATION
Recommendation
Staff recommend that the City Council adopt a Resolution approving budget amendment 21.005 appropriating $250,000 in the City of South San Francisco’s Low and Moderate Income Housing Fund in Fiscal Year 2020-2021 (FY 20-21) for Emergency Rental Assistance for South San Francisco residents facing financial hardship due to the COVID-19 pandemic and $37,500 for associated administration. In the event that the FY 20-21 budget is not approved at the June 24, 2020, City Council meeting, the Resolution would appropriate and authorize the expenditure of the funds as part of an interim spending plan.
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BACKGROUND/DISCUSSION
On April 8, 2020, City Council adopted a Resolution appropriating $220,000 to the existing Emergency Rental Assistance Program through the City’s Low and Moderate Income Housing Fund (also referred to as Fund 241) in Fiscal Year 2019-2020 (FY 19-20) for the purpose of providing financial assistance to South San Francisco residents facing financial hardship due to the COVID-19 pandemic and $22,000 for associated administration.
Since March 16, 2020, the Shelter in Place Order issued by San Mateo County has had a devastating economic impact to the local economy, disproportionately affecting low-income South San Francisco renters, who most likely work in service-oriented jobs. While essential businesses are allowed to remain open, all retail and industrial use services were temporarily closed. For some, this prolonged uncertainty has caused many businesses to lose revenue or permanently close, leading to major reductions in hours and layoffs.
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 once State and County moratoria on residential evictions expire. With the surge of rental assistance requests, cities have shifted local, state, and CARES Act funding towards rental assistance programs. In South San Francisco, YMCA, the City’s primary agency for providing such assistance, has seen five to six times the average amount of requests per month due to the financial strain of the pandemic.
Emergency Rental Assistance Program
Between April 8 and June 17, 2020, YMCA has approved 60 households for the South San Francisco Emergency Rental Assistance Program, totaling $199,000 in rental assistance requests, serving 146 people. Sixty percent of households served are families, while 40% are couples and individual households. Rental requests range from $400 to $4,500 (the City’s limit with this funding source), with the average request being $3,318.
The City expects to expend all of the rental assistance funds by June 30, 2020, serving approximately 70 households. This new budget appropriation will provide financial relief beyond the County’s moratorium and help ensure that low-income South San Francisco residents do not fall into homelessness.
FISCAL IMPACT
Approval of budget amendment 21.005 will appropriate $287,500 from Fund 241, $250,000 for rental assistance and $37,500 for administrative costs in FY 20-21. The unencumbered cash balance of Fund 241 as of June 18, 2020 is $2.4 million. This appropriation will have no impact on the General Fund.
RELATIONSHIP TO STRATEGIC PLAN
Renter protection measures address the following Strategic Plan area: Strategic Plan Priority Area #2 Quality of Life, Initiative 2.3 - Promote a balanced mix of housing options in South San Francisco.
CONCLUSION
Staff recommend that the City Council adopt a Resolution approving budget amendment 21.005 appropriating $250,000 in the City of South San Francisco’s Low and Moderate Income Housing Fund in FY 20-21 for Emergency Rental Assistance for South San Francisco residents facing financial hardship due to the COVID-19 pandemic and $37,500 for associated administration. In the event that the FY 20-21 budget is not approved at the June 24, 2020, City Council meeting, the Resolution would appropriate and authorize the expenditure of the funds as part of an interim spending plan.