Placement: Consent Agenda
Action Requested: Motion / Vote
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Amendment #1: Emergency Rental Assistance 2 (ERA2) Subaward Agreement between the City of Port St. Lucie and the Treasure Coast Homeless Services Council, Inc. (TCHSC)
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Submitted By: Alessandra “Alex” Tasca, Deputy Director, Neighborhood Services Department
Strategic Plan Link: The City’s Mission to be responsive to our community.
Summary Brief (Agreements/Contracts only)
1. Prepared by: Alex Tasca, Neighborhood Services
2. Parties: City of Port St. Lucie Neighborhood Services and the Treasure Coast Homeless Services Council, Inc. (TCHSC)
3. Purpose: Management of the Emergency Rental Assistance 2 (ERA2) Program
4. New/Renewal/Modified: Modification: Amendment #1
5. Duration: Program set to expire on September 30, 2025
6. Benefits to Port St. Lucie: The ERA1 program was ended by the US Department of the Treasury on September 30, 2022. As the dynamics of the pandemic change, the City is continuing to use funds available for emergency assistance such as the new ERA2 program with an expiration date of September 30, 2025. Needs that were addressed with this original agreement in 2022-2023 were centered around the most vulnerable populations facing eviction and at risk or experiencing homelessness. After concluding the original program with the original budget and audits the City has approximately $400,000 remaining to be expended in order to close out the ERA2 grant. This amendment provides the approval to add this amount to the original agreement to execute the final phase of ERA2. The program being proposed is an Emergency Rental Assistance program and follows the US Department of Treasury’s main guidelines for administering this grant. The most vulnerable populations of 50% area median income (AMI) or below will be prioritized per US Department of the Treasury’s guidance.
7. Cost to Port St. Lucie (Annual and Potential): This program is funded by the US Department of the Treasury’s ERA2 grant program that the City was awarded as a result of the American Rescue Plan Act (ARPA). This grant program is specific to rental assistance and not part of the City’s larger, main ARPA grant allocation.
Presentation Information: Presentation with information about the program is attached and available upon request.
Staff Recommendation: Move that the Council approve the amendment to the original agreement to allow the Treasure Coast Homeless Services Council, Inc. to administer the funding the final phase of the ERA2 program, with the last remaining tranche of funding, with City staff providing secondary oversight pursuant to guidance and approval from the US Department of the Treasury.
Alternate Recommendations:
1. Move that the Council amend the recommendation and approve the amendment to the agreement.
2. Move that the Council not approve the amendment to the agreement and provide staff direction.
Background: The City of Port St. Lucie was awarded additional Emergency Rental Assistance (ERA) Program funding under the ARPA authorized by Congress on March 11, 2021, which is referred to as ERA2. In June 2021, the City received its first tranche of ERA2 and managed this initial tranche of funding internally in tandem with ERA1 funding. ERA1 funding was being managed via an Interlocal Agreement with St. Lucie County and a previous contract agreement between the County and TCHSC, as one centralized program. As a result of the ERA1 program ending on September 30, 2022, the City pivoted to administering the second part of the program directly with the TCHSC. The original agreement between the City and the TCHSC was used to administer the ERA2 Eviction Diversion and Emergency Rental Re-entry program the same way that it was administered under the ERA1 program, following US Department of the Treasury guidance, rules and regulations and approved by all parties including the US Department of the Treasury.
The established coordinated efforts between the City and TCHSC staff provided centralized data and proved it is in the best interest of all the City’s residents to continue forward with one centralized COVID-19 recovery assistance hub via the Federal Homeless Management Information System (HMIS) administered by the TCHSC as the dedicated lead for the tri-County area’s Continuum of Care (CoC). This current proposed Amendment #1 is to execute the final phase of ERA2 and expend the City’s last remaining funds from this grant. Being that the funding amount is different, and the COVID-19 pandemic assistance needs have evolved since the original launching of the previous ERA1 and ERA2 programs, this current proposal has been modified to offer a more traditional rental assistance in the form of Emergency Rental Assistance that will assist residents in need to obtain rental housing and avoid homelessness caused by eviction or other events and circumstances. The sustainability of maintaining the housing identified and procured will be analyzed as part of the housing stability services that will be offered. The program details and guidelines have been drafted in response to the US Department of Treasury’s Guidance on how to administer ERA2 grant funding. TCHSC is the lead agency funded by the Department of Housing and Urban Development (HUD) specialized in conducting this specific type of intake and providing these types of services. Neighborhood Services will work with the Communications Department and the 1PSL team to help ensure our residents are as informed as possible about all help available to them during the operation of the program.
Issues/Analysis: The City’s Community Programs staff will work closely with the TCHSC and all partners to execute and monitor the ERA Program in the most streamlined and efficient method for our residents. All City grant funds will only be used for City residents per grant guidelines. All programs and agreements shall adhere strictly to all US Department of the Treasury guidelines and updates will be monitored and implemented on a regular basis. Additional details are outlined in the attached agreement, amendment and program guide/informational document. Additionally, other public program documents will be drafted and disseminated upon approval of this amendment.
Financial Information: The City received a total ERA2 allocation of $3,161,706.19 (in two tranches) of which the City has, as of June 11, 2024, expended a total of $2,718,916.98 representing eighty-six (86%) percent of the total allocation of the award amount. This funding has been used and will be used to continue administering emergency rental assistance to eligible households. Most of this funding was used to execute an emergency rental assistance program in fiscal year 2021-22 and $1M was used to execute an Eviction Diversion and Emergency Rental Re-entry program with TCHSC under this original agreement in fiscal year 2022-23. The City is looking to approve this amendment to the agreement to administer the remaining funds from this grant. The amendment will be for an additional maximum of $400,000 for a final Emergency Assistance program to be executed this fiscal year 2023-24. The City will manage this program via the requirements stipulated in the agreement and audit TCHSC according to State and Federal regulations and following the City’s Finance Department guidance and policies. The agreement and amendment and proposed program have been reviewed and approved by the City Attorney’s Office. Payments will be made on a reimbursement basis and will be contingent on approved assistance to qualified households, audited by the City and any other entities approved by the City. TCHSC shall use no less than eighty-five (85%) or $340,000 of the funding for direct emergency rental financial assistance and housing stability services to qualified and approved residents, for the ERA2 program as prescribed by the US Department of the Treasury. TCHSC may use up to a maximum of fifteen percent (15%) or $60,000 of the ERA2 program budget for direct administrative costs.
Special Consideration: Continuation of ERA2 agreement.
Location of Project: City of Port St. Lucie
Attachments:
1. EXECUTED SUBAWARD AGREEMENT BY AND BETWEEN THE CITY OF PORT ST. LUCIE, FLORIDA AND TREASURE COAST HOMELESS SERVICES COUNCIL, INC. FOR EMERGENCY RENTAL ASSISTANCE PROGRAM ADMINISTRATION SERVICES including Terms and Conditions reflected in Exhibits A-C, i.e. Emergency Rental Assistance Terms (Executed Oct. 24, 2022, City of PSL MUNIS Contract #20231027).
2. Proposed Amendment #1
3. Proposed Draft Program Guidelines
NOTE: All of the listed items in the “Attachment” section above are in the custody of the City Clerk. Any item(s) not provided in City Council packets are available upon request from the City Clerk.
Internal Reference Number: Current Legal Intake Request # 24037-12 & Previous Legal Intake Request # 9016
Legal Sufficiency Review:
Reviewed by Carly Fabien, Deputy City Attorney. Approved as to Legal form and sufficiency by Richard Berrios, Interim City Attorney.