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Home My WebLink About _ 4.2(a)--Accept Grant from the California Dept of HCD and adopt a Resolution Appropriating Funds CITY OF REDDING REPORT TO THE CITY COUNCIL Recommendation Approve the following relative to the Emergency Solutions Grants (ESG) Program – 2022 Balance of State Allocation, Regional Competition, from the California Department of Housing and Community Development (HCD): (1) Accept the ESG Program funds in the amount of $200,000 for the Emergency Housing Site – South Market Micro Shelter Community (Project); (2) Adopt Resolution approving and adopting the 91st Amendment to City Budget Resolution No. 2021-078 appropriating $200,000 for Fiscal Year 2022-23; (3) Authorize the City Manager, or designee, to execute the associated ESG Program agreement, amendments and any other documents to complete the grant program process; (4) Find that the use of ESG funds for this project is exempt from the California Environmental Quality Act Guideline Section 15301, Existing Facilities; and (5) Find that the National Environmental Policy Act review shows that the project is categorically excluded and not subject to 58.5 pursuant to Title 24 CFR 58.35(b)(2) and 58.35(b)(3). Fiscal Impact The ESG Program requires matching funds in an equal amount from any federal, state or local Housing Division funding source. Staff applied for a match exemption up to $100,000 in January 2023. While the match exemption has not yet been confirmed, the Housing Division’s previously expended project costs and allocated project grant funding will be utilized to meet the match requirement. There is no impact to the General Fund. MEETING DATE: June 6, 2023 ITEM NO. 4.2(a) FROM: ***APPROVED BY*** sbade@cityofredding.org btippin@cityofredding.org SUBJECT: 4.2(a)--Accept the Emergency Solutions Grants (ESG) Program - 2022 Balance of State Allocation, Regional Competition Funds and Adopt a Budget Resolution Appropriating Funds Steve Bade, Assistant City Manager Report to Redding City Council May 31, 2023 Re: 4.2(a)--Accept Grant from the California Dept of HCD and adopt a Resolution Appropriating Funds Page 2 Alternative Action The City Council (Council) could choose not to accept the ESG Program funds. This choice would limit funding available to the Emergency Housing Site – South Market Micro Shelter Community Project (Project), thereby increasing the risk that the project would not be sustainable and could negatively affect the unsheltered individuals living at the site. Background/Analysis HCD receives ESG Program funding from the United States Department of Housing and Urban Development. Each year, HCD allocates these funds to eligible Continuum of Care (CoC) Service Areas. The City is a member of the NorCal CoC, which is eligible to participate in the ESG Balance of State allocation. This year’s allocation to NorCal’s CoC Service Area is a total of $296,184. For the noncompetitive rapid rehousing category, $148,092 is available for a competitive project. However, applications for projects under the competitive category may request funding beyond this category’s cap, up to a total of $200,000, as HC D reallocates unused funds from other jurisdictions to cover the increased request. On Friday, July 1, 2022, the NorCal CoC notified participants of the ESG Program opportunity. On July 14, 2022, under the competitive category for the application, the Housing Division applied to the NorCal CoC in response to their ESG Program request for proposals. On August 1, 2022, the Housing Division was notified that the NorCal CoC approved the project for application to the ESG Program through HCD. On August 16, 2022, the Council approved the application for ESG to HCD. As such, on August 17, 2022, an ESG Program application was submitted. On May 9, 2023, the City received the award announcement for the ESG – 2022 Balance of State Allocation, Regional Competition, in the amount of $200,000. As proposed, the awarded funds will support project operations and Homeless Management Information System (HMIS) costs for the emergency housing site. Eligible costs include case management, services, transportation, costs to operate and maintain the EHS, necessary equipment, maintenance, HMIS costs, and Housing Division activity delivery costs to coordinate the project. Environmental Review This project is categorically exempt from California Environmental Quality Act under Section 15301, Class 1 Existing Facilities, as funds will be utilized for the operation, repair and maintenance of an existing facility with no resulting expansion of use. Staff has completed the National Environmental Policy Act review showing that the project is categorically excluded and not subject to 58.5 pursuant to Title 24 CFR 58.35(b)(2) and 58.35(b)(3). Report to Redding City Council May 31, 2023 Re: 4.2(a)--Accept Grant from the California Dept of HCD and adopt a Resolution Appropriating Funds Page 3 Council Priority/City Manager Goals • Government of the 21st Century – “Be relevant and proactive to the opportunities and challenges of today’s residents and workforce. Anticipate the future to make better decisions today.” • Economic Development- “Facilitate and become a catalyst for economic development in Redding to create jobs, retain current businesses and attract new ones, and encourage investment in the community.” Attachments ^Resolution Award Letter ESG -22-17060 RESOLUTION NO. 2023-___ A RESOLUTION OF THE CITY OF REDDING APPROVING AND ADOPTING THE 91st AMENDMENT TO CITY BUDGET RESOLUTION NO. 2021-078 APPROPRIATING $200,000 FOR EMERGENCY SOLUTIONS GRANT PROGRAM (ESG) - 2022 FUNDS TO THE EMERGENCY HOUSING SITE - SOUTH MARKET MICRO SHELTER COMMUNITY PROJECT FOR FISCAL YEAR 2022-23 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF REDDING THAT Budget Resolution No. 2021-078 be and is hereby amended as follows: FUND DIVISION DESCRIPTION INCREASE DECREASE 191 998 Community Development State & Local $200,000 THAT account titles and numbers requiring adjustments by this Resolution are as follows: USE SOURCE OF FUNDS OF FUNDS Increase Revenue 191-998-06-1200-14 State Grant Operating-Com Devel 200,000$ Increase Expenditures 191-998-4873-60 Emergency Shelter ESG 200,000$ Total 200,000$ 200,000$ THAT the purpose is to appropriate $200,000 for Emergency Solutions Grant Program (ESG) – 2022 funds to the Emergency Housing Site – South Market Micro Shelter Community Project for fiscal year 2022-23. I HEREBY CERTIFY that the foregoing resolution was introduced at a regular meeting of the City Council of the City of Redding on the 6th day of June, 2023, and was duly adopted at said meeting by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: MICHAEL DACQUISTO, Mayor ATTEST: FORM APPROVAL: PAMELA MIZE, City Clerk BARRY E. DeWALT, City Attorney STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT DIVISION OF FEDERAL FINANCIAL ASSISTANCE 2020 W. El Camino Avenue, Suite 200, 95833 P.O. Box 952054 Sacramento, CA 94252-2054 (916) 263-2771 www.hcd.ca.gov May 9, 2023 Barry Tippin, City Manager City of Redding 777 Cypress Avenue Redding, CA 96001 Dear Barry Tippin: RE: Award Announcement – Emergency Solutions Grants Program Notice of Funding Availability Fiscal Year 2022/2023 City of Redding – Balance of State Allocation, Regional Competition Contract No. 22-ESG-17060 The California Department of Housing and Community Development (Department) is pleased to announce City of ReddingCity of Redding has been awarded an Emergency Solutions Grants Program (ESG) – 2022 Balance of State Allocation, Regional Competition award in the amount of $200,000. This letter constitutes notice of the designation of ESG funds for the Awardee. Awardee may incur eligible grant costs as of the date of this award letter, with written authorization from the Department. Awardee will be able to draw down funds when the Standard Agreement is fully executed, and any general and special conditions have been cleared in writing. The Department intends to issue a Standard Agreement within 90 days of receipt of the documentation required to execute this contract. A program representative will be in communication with you within a week to discuss and confirm any documents needed. Congratulations on your successful application. For further information, please contact Sarah Theobald, ESG Program Manager, Federal Branch, at (916) 620-2877 or Sarah.Theobald@hcd.ca.gov. Sincerely, Sasha Hauswald Deputy Director Division of Federal Financial Assistance 2 | Page CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT Emergency Solutions Grant (ESG) Program 2022 Balance of State Allocation, Regional Competition Award Fact Sheet City of Redding Redding/Shasta, Siskiyou, Lassen, Plumas, Del Norte, Modoc, Sierra Counties CoC CoC A ACTIVITIES FUNDED Emergency Shelter $ 200,000 TOTAL AWARD $ 200,000