REPORT TO THE CITY COUNCIL FROM: JENNIFER CLARK, Director Planning & Development Department BY: KAREN JENKS, Manager Planning & Development Department SUBJECT ..Title Actions pertaining to a Deposit Assistance Program funded through the U.S. Department of Housing and Urban Development (HUD) entitlements funds to prevent, prepare for, and respond to COVID-19: 1. Approve an agreement with Centro La Familia in the amount of $250,000 in Emergency Solutions Grant-Coronavirus (ESG-CV) funds to operate Deposit Assistance Programs through June 30, 2022. 2. Approve an agreement with The Fresno Center in the amount of $250,000 in Emergency Solutions Grant-Coronavirus (ESG-CV) funds to operate Deposit Assistance Programs through June 30, 2022 ..Body RECOMMENDATION Staff recommends the City Council approve the agreements with Centro La Familia and The Fresno Center deposit assistance programs and authorize the City Manager or designee to sign all necessary implementing documents as approved to form by the City Attorney. EXECUTIVE SUMMARY The City Council previously approved allocations of $500,000 in ESG-CV for a deposit assistance program. Staff is proposing to award $250,000 in ESG-CV funds to both Centro La Familia and The Fresno Center for deposit assistance programs that will aid in the prevention of homelessness for those affected by COVID-19 by offering rental application fees, security deposits, last month's rent, and/or utility deposits through June 30, 2022. BACKGROUND As part of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the U.S. Department of Housing and Urban Development (HUD) allocated additional entitlements funds to the City of Fresno to prevent, prepare for, and respond to the coronavirus (COVID-19) through ESG-CV. On February 18, 2021, the Council approved Substantial Amendment 2019-06 approving the ESG-CV funding plan to include $500,000 for a deposit assistance program. The deposit assistance program covers the costs of rental application fees, security deposits, last month's rent, and/or utility deposits for persons experiencing homelessness or people who are at risk of homelessness. In order to find potential service providers for the deposit assistance program, staff reached out to local non-profits that are providing similar services for the City. Specifically, staff reached out to the six community-benefit organizations (CBO) providing services under the City's Emergency Rental Assistance Program. Staff requested parties submit letters of interest to the City for consideration and received four letters of interest, one of which was later withdrawn. The three letters of interest received for consideration include those from The Fresno Center, Centro La Familia and West Fresno Family Resource Center. After review of the proposals, discussions with the interested parties, and in consideration of feedback received from Council, staff recommends funding Centro La Familia $250,000 and The Fresno Center $250,000 in ESG-CV funds for deposit assistance through June 30, 2022. ENVIRONMENTAL FINDINGS This is not a project for purposes of CEQA pursuant to CEQA guidelines Section 15378. These plans, strategies and studies are an exempt activity under HUD NEPA Requirements (24 CFR 58.34(1)). LOCAL PREFERENCE Local preference is not applicable because of the use of federal funding. FISCAL IMPACT The agreements will be funded through the City's ESG-CV allocations. Attachment: Agreement with Centro La Familia Agreement with The Fresno Center