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HomeMy WebLinkAbout06.21.21 Report to Legislature-Emergency Rental Assistance Program From:Boston, Shelby To:Alpert, Bruce;Bennett, Robin;Clerk of the Board;Connelly, Bill;Cook, Holly;Cook, Robin;Hironimus, Patrizia; Kimmelshue, Tod;Lucero, Debra;Paulsen, Shaina;Pickett, Andy;Reaster, Kayla;Ring, Brian;Ritter, Tami; Sweeney, Kathleen;Teeter, Doug Cc:Kim, Sang;Pickett, Andy Subject:Report to Legislature-Emergency Rental Assistance Program Date:Monday, June 21, 2021 12:36:17 PM Attachments:JLBC_REPORT_06092021_FINAL.pdf Good Afternoon, Attached please find the latest report from the State regarding the Emergency Rental Assistance Program. I will share with you that the program has been slow to ramp up and provide payment. The State has taken some positive steps to streamline the application process and I believe this will help to get money into the hands of renters/landlords. Overall, in Butte County the response to the program has been smaller than anticipated. Thank you, Shelby Boston CALIFORNIA COVID-19 RENT RELIEF STATE RENTAL ASSISTANCE PROGRAM First Monthly Report to Joint Legislative Budget Committee California Department of Housing and Community Development June 4, 2021 California Department of Housing and Community Development June 4, 2021 Table of Contents I. Executive Summary ........................................................................................................................................ II. Continuously Adapting the Program to Evolving Needs ...............................................................2 III. California’s Statewide Rental Assistance Program Structure ....................................................3 IV. Program Performance .................................................................................................................................4 a. Obligation and Expenditure by Area Median Income Level ............................................................................................................4 b. Obligation and Expenditure by Race and Ethnicity..............................................................................................................................6 V. Background ......................................................................................................................................................9 a. Consolidated Appropriations Act, 2021 and the Federal Rental Assistance Program .....................................................9 b. SB 91 and the State Rental Assistance Program ......................................................................................................................................11 VI. Planning and Design ...................................................................................................................................12 a. HCD’s Direct Rental Assistance Program known as “California COVID-19 Rent Relief” .................................................12 b. Planning and Design of the Coordinated Programs Among Option B Jurisdictions ........................................................12 c.HCD’s California COVID-19 Rent Relief Program and Option B Jurisdiction Documentation Requirements ..13 d. Dual Implementation Approach Among Option C Jurisdictions ...................................................................................................13 e. HCD’s California COVID-19 Rent Relief Program Project Team .....................................................................................................13 f. Program Administration ............................................................................................................................................................................. ...............13 g. HCD’s California COVID-19 Rent Relief Program Education and Outreach...........................................................................14 h. Utilities .......................................................................................................................................................................................... ......................................15 .............................................................16 a. Team Assembly and Milestones ....................................................................................................................................................................... ...16 b. HCD’s California COVID-19 Rent Relief Program and Option A Jurisdictions ......................................................................17 c. Coordinated Programs Among Option B Jurisdictions ........................................................................................................................18 d. Dual Implementation Approach Among Option C Jurisdictions ...................................................................................................18 e. Program Administration ............................................................................................................................................................................. ..............19 f. HCD’s California COVID-19 Rent Relief Program Education and Outreach ............................................................................22 g. Challenges ......................................................................................................................................................................................... ..............................24 Appendices ...........................................................................................................................................................26 Appendix I. Statutory Basis for Report ................................................................................................................................................................ .27 ..................................................................................................................................................................................................28 Appendix III. Map of jurisdictions implementation model .......................................................................................................................29 Appendix IV. Allocation tables ........................................................................................................................................................................ ..........30 Appendix V. Summary of bifurcations between local and state programs ...................................................................................33 Appendix VI. Recapture and Reallocation ........................................................................................................................................................36 Appendix VII. Local Partner Network (LPN) ......................................................................................................................................................37 Appendix VIII. CPUC Support for State Rental Assistance Program ................................................................................................40 | HousingIsKey.com California Department of Housing and Community Development June 4, 2021 I.Executive Summary | HousingIsKey.com California Department of Housing and Community Development June 4, 2021 | HousingIsKey.com California Department of Housing and Community Development June 4, 2021 II. Continuously Adapting the Program to Evolving Needs HCD implemented a redesigned application portal in early June based on feedback and recommendations from user-centered design experts and stakeholders. The new application was reorganized and rewritten to improve understanding, accessibility, and ease in applying. The launch will include outreach to stakeholder groups, associations, and the public to promote and explain the changes. HCD will be monitoring user activity closely. anticipates making further changes to ensure the program is accessible for applicants most in need. For example, households in non-traditional rental agreements who may not otherwise qualify for assistance while maintaining an emphasis on building risk management and fraud prevention into the technology and case management processes. With solid controls in place and a better understanding of the fraud, or abuse. On May 10, Governor Newsom announced the Administration's We believe that these ongoing improvements and, if enacted, the proposed statutory changes to the plan to seek statutory changes to provide eligible applicants with 100% payment of rental debt and support for months of compensation levels will lead to higher levels of participation by California tenants and landlords. Now that current and future rent, compensating tenants and landlords equally. We strongly support this proposal, as we believe the infrastructure, systems, and protocols are in place to ensure program rigor, HCD believes it is well positioned to such a change will spur greater use of the program, and particularly encourage small landlords and their tenants to continue administering the California COVID-19 Rent Relief Program as well as administer the Round 2 American Rescue apply for assistance. Plan Act funding that will nearly double HCD has also worked proactively to reduce and remove barriers to available rent and utility assistance. For example, an online mapping tool and eligibility quiz was added to the state’s Housing Is Key website to route applicants directly to the correct assistance program for their location. HCD reduced the number of clicks necessary to get to the state’s application, improved language accessibility within the application, and began using eviction risk indices mapping to inform the program's outreach, selection of partners, and neighborhood targeting. 2 | HousingIsKey.com California Department of Housing and Community Development June 4, 2021 III.California’s Statewide Rental Assistance Program Structure HCD designed and implemented the State Rental Assistance Option C – Dual Implementation: Finally, SB 91 program in compliance with federal and state legislation. provided jurisdictions with populations over SB 91 provides for three program administration options. 200,000 that had received a direct ERAP allocation Localities that did not receive a direct Emergency Rental from Treasury the option to distribute their federal Assistance Program (ERAP) distribution from Treasury (i.e., ERAP allocation under the federal Consolidated those with populations under 200,000) are automatically Appropriations Act provisions and applicable local served through HCD’s California COVID-19 Rent Relief requirements. California’s COVID-19 Rent Relief Program. SB 91 gave Large Jurisdictions who had received Program administers the jurisdictions’ share of state a direct federal allocation from Treasury three options to ERAP allocations under the requirements of SB 91. choose from in implementing their direct federal allocation As of May 31, 2021, all 16 Option C jurisdictions had and proportionate share of the state’s federal allocation. opened their respective local programs and began Those implementation options are outlined below. accepting applications for assistance utilizing direct federal allocations. Five of the programs were no Option A – State-Administered Program: SB 91 set longer accepting applications at the end of May up the California COVID-19 Rent Relief Program to based on the volume of applications received serve jurisdictions with populations under 200,000 so far. Those jurisdictions currently redirect new and Large Jurisdictions that chose to opt-in. Large inquiries to the state-administered program to Jurisdictions that opt into HCD’s California COVID-19 apply. Refer to Appendix V on page 33 for a list of Rent Relief Program have their direct allocation from Option C jurisdictions, their status, and bifurcation Treasury administered by HCD through one central approaches. application process. Option B – Locally Administered Programs: SB 91 also gave Large Jurisdictions, those with populations over 200,000 and that received a direct ERAP allocation from Treasury, the option to receive their share of the state’s direct allocation as a block grant. Eligible jurisdictions that administer local programs with state block grant funds agree to distribute both their federal and state ERAP allocations in accordance with the provisions of SB 91. 3 | HousingIsKey.com California Department of Housing and Community Development June 4, 2021 IV.Program Performance a. The tables below depict the level of funds obligated in total and those expended to aid applicants with household incomes in three categories of Area Median Income (AMI). In reviewing submitted applications, HCD initially “obligates” funds to commit them to an Eligible Household or Eligible Landlord pending the receipt of additional information, completion legislation, applications for rental and utilities arrears are prioritized before those seeking assistance with current and prospective rent and utilities. HCD expects to begin obligating funds for prospective payments in coming months. Data reported by Option B jurisdictions is incomplete as most of the locally administered programs have not yet completed their program designs and received their state block grant allocations. Reporting through May 31, 2021. State-Administered Program - Option A Jurisdictions Rent Utilities Total Funds obligated for arrears $ 124,407,021.00 $ 1,751,927.58 $ 126,158,948.58 Funds expended for arrears by income level $ 30,857,790.41 $ 0 $ 30,857,790.41 <=30% AMI $ 17,792,306.41 $ 0 $ 17,792,306.41 >30 and <=50% AMI$ 8,891,397.00 $ 0 $ 8,891,397.00 >50 and <=80% AMI$ 4,174,087.00 $ 0 $ 4,174,087.00 Funds obligated for current and $ 0 $ 0 $ 0 prospective payments Funds expended for current and $ 0 $ 0 $ 0 prospective payments by income level <=30% AMI - - - >30 and <=50% AMI- - - >50 and <=80% AMI- - - 4 | HousingIsKey.com California Department of Housing and Community Development June 4, 2021 Rent Utilities Total Funds obligated for arrears $ 22,322,696.00 $ 473,305.02 $ 22,796,001.02 Funds expended for arrears by income level $ 1,329,115.00 $ 0 $ 1,329,115.00 <=30% AMI $ 644,170.00 $ 0 $ 644,170.00 >30 and <=50% AMI$ 361,775.00 $ 0 $ 361,775.00 >50 and <=80% AMI$ 323,170.00 $ 0 $ 323,170.00 Funds obligated for current and $ 0 $ 0 $ 0 prospective payments Funds expended for current and $ 0 $ 0 $ 0 prospective payments by income level <=30% AMI - - - >30 and <=50% AMI- - - >50 and <=80% AMI- - - 5 | HousingIsKey.com California Department of Housing and Community Development June 4, 2021 b.Obligation and Expenditure by Race and Ethnicity The tables and charts below depict tenant and landlord applications for assistance at principal stages of processing: Application Submitted – Tenant (with or without landlord participation) has completed their application, submitted it, and it is ready for Case Manager review. application approval. Approved (Pending Payment) – Quality Assurance / Quality Control (QA/QC) has reviewed an application and approves it for payment. Finance team takes over and begins payment process. Paid – Application total also includes all payments issued within the jurisdiction to date. 1.Applications Submitted by Race and Ethnicity Submitted Submitted Race Ethnicity Applications Applications American Indian or Alaska Native 507 Hispanic or Latino 16,481 Asian 4,092 Non-Hispanic or Latino 20,775 Black or African American 7,017 Not Reported 4,021 Native Hawaiian or Other Pacific Islander 407 Refuse to Answer 3,105 Not Reported 4,001 Grand Total 44,382 Other Multi-Racial 7,519 Refuse to Answer 5,523 White 15,316 Grand Total 44,382 6 | HousingIsKey.com California Department of Housing and Community Development June 4, 2021 Applications Submitted by RaceApplications Submitted by Ethnicity Refuse to American Indian or Answer Asian Alaska Native 7% 9% Not Reported 1% 9% Hispanic or Black or Latino African White37% American 35% 16% Native Hawaiian or Other Pacific Islander 1% Not Reported 9% Non-Hispanic Refuse to or Latino Answer 47% Other Multi-Racial 12% 17% 2.Applications Approved by Race and Ethnicity Approved Approved Race Ethnicity Applications Applications American Indian or Alaska Native 27 Hispanic or Latino 869 Asian 256 Non-Hispanic or Latino 1,756 Black or African American 582 Not Reported 285 Native Hawaiian or Other Pacific Islander 29 Refuse to Answer 251 Not Reported 273 Grand Total 3,161 Other Multi-Racial 477 Refuse to Answer 320 White 1,197 Grand Total 3,161 7 | HousingIsKey.com California Department of Housing and Community Development June 4, 2021 Applications Approved by RaceApplications Approved by Ethnicity Refuse to American Indian Asian Answer or Alaska Native 8% 8% Black or 1% Not Reported African 9% American Hispanic or 18% Latino 27% White 38% Native Hawaiian or Other Pacific Islander 1% Not Reported 9% Refuse to Non-Hispanic Other Multi-Racial Answer or Latino 15% 10% 56% 3.Amount Paid by Race and Ethnicity Expended Amount Expended Amount Race Ethnicity American Indian or Alaska $ 159,929.31 Hispanic or Latino $ 7,313,790.87 Native Asian $ 2,649,266.10 Non-Hispanic or Latino $ 18,456,737.56 Black or African American $ 5,060,180.54 Not Reported $ 3,249,122.92 Native Hawaiian or Other $ 374,304.66 Refuse to Answer $ 3,167,254.06 Pacific Islander Not Reported $ 2,630,369.77 Grand Total $ 32,186,905.41 Other Multi-Racial $ 4,674,102.69 Refuse to Answer $ 3,345,592.20 White $ 13,293,160.14 Grand Total $ 32,186,905.41 8 | HousingIsKey.com California Department of Housing and Community Development June 4, 2021 Amount Paid by Ethnicity Amount Paid by Race Refuse to Answer American Indian or Asian 10% Alaska Native 8% Hispanic or Black or 1% Latino African 23% American Not Reported 16% 10% White 41% Native Hawaiian or Other Pacific Islander 1% Not Reported 8% Non-Hispanic or Latino Other Multi-Racial Refuse to 57% 15% Answer 10% V.Background a. the Federal Rental Assistance Program The federal government passed the federal Consolidated the Secretary of the United States Department of the Treasury. Appropriations Act of 2021 (the "Act") into law on December 21, The Act requires implementers to prioritize the payment 2020. The Act allocated approximately $25 billion nationwide of existing housing-related arrears that could result in the for the Emergency Rental Assistance Program ("ERAP"). The eviction of an eligible household. Further, the Act provides ERAP seeks to help stabilize tenants and landlords impacted that implementers should reduce an eligible household's by the COVID-19 pandemic and associated economic rental arrears before providing them support for current and fallout. States were awarded ERAP funding in proportion future rent. The Act also allowed for a small portion of ERAP to their share of the total US population according to the funds to go to program administration, outreach, and housing 2019 Census. The State of California received approximately stabilization services. $2.65 billion in rental assistance support. Around $1.4 billion 2.Eligible Recipients and Prioritization was given directly to the state, while the remaining balance of ERAP Funds was provided directly to local jurisdictions with populations above 200,000. Under the Act, at least one member of a renter household must meet at least one of the following criteria to receive rent 1.Eligible ERAP Activities and utility relief assistance: Pursuant to Section 501(c) of Subtitle A of Title V of Division N of the federal Consolidated Appropriations Act, 2021, reduction in household income, incurred high costs, rental assistance funds can only fund rental arrears, future rental payments, utility and home energy cost arrears, future or utility and home energy costs, and "other expenses related Demonstrates a risk of experiencing homelessness to housing incurred due, directly or indirectly, to the novel or housing instability. coronavirus disease (COVID-19) outbreak" as determined by 9 | HousingIsKey.com California Department of Housing and Community Development June 4, 2021 SB 91 allows for HCD to recapture under-utilized allocations In addition to meeting one of the requirements above, the and reallocate them to other jurisdictions with demonstrated household must be at or below 80 percent AMI. need and capability to distribute funds to eligible households. SB 91 also allows for HCD to waive recapturing of a local jurisdiction’s funds if the jurisdiction can demonstrate it has Within these criteria, the Act requires implementers to a reasonable plan to meet Treasury deadlines. The objective prioritize rental assistance funds for households with incomes of this clause is to ensure that California is best positioned to under 50 percent of AMI and/or who have one or more avoid having critical federal resources recaptured by Treasury. household members who have been recently unemployed. The primary rationale for this focus is to stabilize households 5. impacted by the COVID-19 pandemic. The Act also requires fund implementers to design and 3.Non-discrimination implement program features that prevent the duplication It is a state priority that all persons eligible for these local jurisdictional partners to work to prevent households funds receive equitable access to assistance and are from receiving payments from multiple sources for the same served with dignity, respect, and compassion regardless incurred expenses, either unintentionally or fraudulently. of their circumstance, ability, or identity. Eligible person's circumstance, ability, and identity include but are not limited to their belonging to a marginalized ethnic or racial community, immigration status, criminal record, disability, gender or sexual identity, and belonging to a group that has traditionally been unable to access mainstream support. HCD recognizes that those most in need of pandemic-related rental assistance are often also those for whom barriers to accessing such a program are the highest. With this in mind, HCD's guidelines seek to ensure those most in need of assistance are prioritized in and served by the State Rental Assistance Program and block grant programs. 4.Obligation and Expenditure Deadlines Under the Act, by September 30, 2021, Large Jurisdictions must have obligated at least 65 percent of their direct federal allocation. If Large Jurisdictions fail to obligate at least 65 percent of their direct federal allocation by September 30, 2021, they risk having these funds recaptured and reallocated by Treasury. The Act also requires the complete expenditure of ERAP funds by December 31, 2021 (subsequently extended to September 30, 2022, pursuant to federal law). SB 91 also established deadlines for funding obligation and expenditure of state allocations. Jurisdictions that opted to receive state block grants must commit to obligating their state funds by June 1, 2021, and fully expend all funds by August 1, 2021. Similar to the terms contained in the federal Act, California Department of Housing and Community Development June 4, 2021 b.SB 91 and the State Rental Assistance Program To implement state funds made available from the Act and (2)Round two priority shall be given to communities provide support for California’s most vulnerable renters disproportionately impacted by COVID-19, as determined by impacted by COVID-19, California passed SB 91. SB 91 created HCD. the state Rental Assistance Program and provided eligible (3)Round three prioritizes eligible households with a jurisdictions with the option to accept their portion of the household income less than 80 percent of AMI and who did state allocation as a block grant. SB 91 also gave HCD the not get prioritized in rounds one and two. authority to create guidelines regarding the administration of the federal rental assistance funds consistent with the Households with income less than 50 percent of AMI continue requirements of the federal law and any regulations or to receive prioritization in the second and third rounds in line guidance promulgated pursuant to federal law. with the State Rental Assistance Program requirements. SB 91 also extended tenant protections included in the Tenant, 3.California Department of Housing and Homeowner, and Small Landlord Relief and Stabilization Act of Community Development program administration and contracting evictions for nonpayment of rent by tenants experiencing a authority COVID-19 hardship and who pay at least 25 percent of their SB 91 also authorized HCD to administer the program in rent owed between September 2020 and June 2021. Key accordance with applicable state and federal law. The bill components of the SB 91 State Rental Assistance Program further authorized HCD to contract with a vendor to serve as include: the program implementer to manage and fund services and 1.Compensation parameters for rental distribute emergency rental assistance resources. 4.Program Implementation Options and non-participation Localities with populations under 200,000 are automatically For assistance provided through the participating landlord served through HCD’s California COVID-19 Rent Relief Program. SB 91 gave Large Jurisdictions three options to 50897.1(d), compensation was set at exactly 80 percent of an choose from in implementing their direct federal allocation eligible household's unpaid rental debt from April 1, 2020, to and proportionate share of the state’s federal allocation. March 31, 2021. To receive payment, the landlord must agree Those implementation options, described previously on page to forgive the household's remaining outstanding rental debt 3, are listed below. per that subdivision. Option A – State-Administered Program For assistance provided through the non-participatory Option B – Locally Administered Programs landlord process under Health and Safety Code Section Option C – Dual Implementation 50897.1(e), compensation was set at 25 percent of an eligible household's unpaid rental debt from April 1, 2020 to March 5.Fund Expenditure Timeframes 31, 2021. For this process, households would receive the 25 percent directly. As per the requirements of SB 91, Option B jurisdictions are required to obligate at least 65 percent of their block grant 2. funds by June 1, 2021. Jurisdictions that do not obligate 65 with round prioritization as follows: percent of their total emergency rental assistance funds may have their block grant funds recaptured by HCD. Jurisdictions in Section 501(c)(4) of Subtitle A of Title V of Division N of that demonstrate they have a plan to implement their funds the federal Consolidated Appropriations Act, 2021 (Public within the federal timeframes can have this state timeline Law 116-260), households with income that is less than 50 waived through consultation with HCD. percent AMI. 11 | HousingIsKey.com California Department of Housing and Community Development June 4, 2021 VI.Planning and Design a.HCD’s Direct Rental Assistanceb.Planning and Design of the Program known as “CaliforniaCoordinated Programs Among COVID-19 Rent Relief”Option B Jurisdictions HCD contracted with a program implementer to manage the distribution of rental assistance directly to eligible households and readiness could elect to receive their share of the state’s and landlords for Small Jurisdictions as well as for Large direct allocation as a block grant by formally making a request Jurisdictions that opted to participate in the statewide direct to HCD not later than February 12, 2021. In making such a assistance program (“Option A”). The program implementer request, each jurisdiction agreed to utilize its direct federal provides, on behalf of HCD, a mobile-friendly online allocation in a manner consistent with the requirements application process, application review and data validation, of SB 91. Consistency was deemed necessary to ensure access, de-duplication checks, ADA accessibility, and direct jurisdiction boundaries. HCD has continued working closely deposit support for both landlord and tenant applicants. with each of the 22 Option B jurisdictions that requested state block grant allocations to provide them guidance and HCD engaged rapidly with all Large Jurisdictions that help verify that their respective rental assistance programs elected to have their direct federal allocations administered conform to applicable state and federal guidance. through the state program to ensure their communities were fully included in the launch of the state’s program. HCD As HCD worked with the Option B jurisdictions, the team worked with these Option A jurisdictions to execute Standard spent a substantial amount of time helping to ensure the Agreements and arrange for the localities’ federal allocations locally administered programs would be consistent among to be redirected to the state. HCD manages the redirected federal funds along with each jurisdiction’s proportionate focused on three key aspects of program delivery: applicant share of state funds to serve applicants within the respective eligibility, eligible use of funds, and compensation standards. jurisdiction’s boundaries. HCD believes SB 91 and federal statute are quite clear that all applicants must be treated fairly and equitably, regardless of HCD also engaged a vendor to facilitate partnerships with the avenue available to them for requesting rental assistance. outreach to applicants without access to technology, HCD and the jurisdictions’ teams have been working to applicants with language access challenges, and applicants ensure they do not administer rental assistance in a way that that need support in completing the application process.is inequitable in the administration of direct rental assistance by the state or any of the local programs. Additionally, In February, HCD also created an advisory committee made jurisdictions that run local programs using state block grant allocations must not add requirements to their programs that planning and design phase, the advisory committee provided deter or prevent access. These requirements include but are feedback on the program’s implementation strategies. not limited to those that intentionally or unintentionally result in discrimination against protected classes, requirements relative to legal resident status, and requirements that condition access on driver’s licenses, formal leases, or citizenship documentation. 12 | HousingIsKey.com California Department of Housing and Community Development June 4, 2021 c.HCD’s California COVID-19e.HCD’s California COVID-19 Rent Rent Relief Program andRelief Program Project Team HCD recognized that it needed to pull together an inclusive Option B Jurisdiction Documentation Requirements and support described in federal and state legislation. HCD During the program's design phase, stakeholders, program strategically selected vendors for their experience working with similar programs and serving hard-to-reach, low-income, requirements often bar those most in need of assistance from applying to programs like the ERAP. Accordingly, HCD and managers to lead the State Rental Assistance Program has sought to keep documentation requirements for HCD’s and conducted rapid procurements to engage contractors California COVID-19 Rent Relief Program and the coordinated experienced in case management, application processing, Option B programs as simple as possible while balancing the fund distribution, marketing and outreach, and local partner network development. All the vendors were under contract fraud risks. Examples of accepted simple documentation within 60 days of the passage of SB 91. HCD continues to include current participation in income-driven programs like Medicaid, a 2020 tax return, unemployment statements, partners and applicants statewide. or self-attestations. Similar document types are available for tenant households to provide to show loss of income or unemployment and current residency. f.Program Administration 1.Online Application Portal d.Dual Implementation Approach Among Option C to help for the many Californians with unexpected rent- and Jurisdictions Pursuant to SB 91, a locality that was eligible for, but did not portal was designed to help both tenants and landlords receive, state block grant funds could elect to administer its navigate the application process. own direct federal share of assistance without conforming 2. to the state’s guidance. In such cases, HCD retains the jurisdiction’s proportionate share of state funds to be Early on, HCD recognized that applicants would need a administered by HCD on behalf of applicants not served personalized point of contact to assist them in navigating by the local program. HCD has worked with each of the 16 the application process. Recognizing this, HCD opted to such Option C jurisdictions to delineate clear bifurcations hire a case management team. HCD designed the case between local and state programs. Methods for splitting one-on-one assistance to applicants as they navigate the and/or household income levels the local programs will application process. serve. Appendix V on page 33 provides a summary table of 3.Call Center the bifurcation between local and state programs. HCD designed and prepared the Call Center to communicate When HCD and a local jurisdiction run programs at the same with applicants from diverse backgrounds and who could be time serving the same geographic area, the risk increases calling while experiencing very challenging personal issues. that both programs may receive applications for the same HCD set up the Call Center to be accessible through the household. To mitigate this concern, HCD has endeavored toll-free number 833-430-2122 seven days a week from 7 am to arrange data-sharing agreements with each Option C jurisdiction for the purpose of preventing unlawful duplication for state and federal holidays. HCD selected these hours of of assistance to eligible households. 13 | HousingIsKey.com California Department of Housing and Community Development June 4, 2021 activity because they accommodate the broadest assortment g.HCD’s California COVID-19 of applicants' schedules. In preparing the Call Center, HCD Rent Relief Program also made sure the center could support applicants in Education and Outreach California's main languages and with comprehensive support for additional languages. 1.Sessions 4. Between January and May 2021, HCD met with a range of stakeholder organizations to educate them and enlist them in At the start of the pandemic, numerous localities provided rental assistance to tenants at risk. Further, a program of listening sessions provided invaluable insights that helped this size and scope is at high risk for fraud and abuse. SB 91 requires fraud detection and prevention measures for Program education and outreach strategy. all stand-alone rental assistance programs. Given these considerations, HCD designed the program and its processes Below is a representative sample of organizations with whom to balance fraud prevention and program accessibility. vendor selection, and operating procedures to balance League of California Cities stewardship of public money with an application that is California State Association of Counties accessible to the target population. California tenant coalition groups California landlord coalition groups California tribes and tribally designated housing entities Los Angeles County Business Federation Housing is Key listserv organizations 2. SB 91 required HCD to launch the application portal for the California COVID-19 Rent Relief Program application by March 15, 2021. SB 91 also prioritized ERAP funds for very- low-income households and those hardest hit by COVID, traditionally the hardest-to-reach populations. With this in mind, HCD and its education and outreach partners worked diligently through January, February, and March to lay outreach campaign that could reach and resonate with those most in need and the landlords who serve them. 3.Establishment of Community-Based Partner Network As stated previously, households most impacted by COVID-19, most at risk of housing instability related to COVID-19, and under 50 percent AMI are typically more challenging to reach than other populations and face additional barriers applying to programs like the ERAP. HCD intentionally and systematically built relationships with community-based partners across the state to provide person-centered and 14 | HousingIsKey.com California Department of Housing and Community Development June 4, 2021 culturally relevant guidance to Californians most in need of h.Utilities rent arrears assistance. A list and map illustrating the Local HCD has actively coordinated with the California Public Partner Network (LPN) coverage are provided in Appendix VII Utilities Commission (CPUC). In response to HCD’s need to starting on page 37. verify utility balances, on April 15, 2021, the CPUC directed 10 large utility providers in the state to provide customer data Recognizing that landlords are also in need of assistance with validation to facilitate HCD’s administration of the program rent arrears and that landlord participation is vital to clearing (see Appendix VIII on page 40 for a copy of the CPUC households’ rental debt, HCD also established partnerships directive). HCD has coordinated with these 10 entities and with landlord organizations across the state. other utility providers in the state to receive data addressing utility costs eligible for payment. Several larger utility companies are individually implementing campaigns to promote the program. So far, these campaigns have utilized HCD is able to verify over 90 percent of electric and gas claims. For other types of utilities, HCD can now validate 70 percent of claims. Utility providers coordinate with HCD’s vendor to verify reported utility costs on applications and to verify the claimed unpaid balances are in alignment with amounts on record. When data is not available from utility providers, HCD shall accept documentation from applicants (e.g., most recent statement). Utility expenses eligible for payment include water, gas, electricity, trash, sewer, fuel oil, and internet access. The data from utility providers and documentation provided by applicants provides the necessary support to validate amounts owed and to then provide payments on arrears amounts and prospective balances, as appropriate. Utility providers are not allowed to initiate an application on a tenant’s behalf. As with the application for rental assistance, HCD uses the data provided on the application to determine if the applicant meets the income eligibility threshold (i.e., below 80 percent AMI) and where the application stands in terms of prioritization (e.g., below 50 percent AMI). When utilities are included in the total contract rent price, the SB 91 calculations for rental arrears applies. If utilities are included in the 80 percent compensation limit under SB 91, landlords may not apply for additional assistance for utility arrears separate and in addition to rental arrears. 15 | HousingIsKey.com California Department of Housing and Community Development June 4, 2021 VII.Implementation and a. Since the enactment of SB 91 on January 29, 2021, HCD Call Center initiated a soft opening on March 11, 2021, prioritized the implementation of the California COVID-19 in advance of the opening of the application portal Rent Relief State portal opened on March 15, 2021 to accept collaboration with the Business, Consumer Services and applications from tenants and landlords Housing Agency (BCSH), included assembling a team of HCD April 12, 2021, LISC launched an appointment scheduling platform to allow LPN organizations to the procurement of vendors to successfully implement the schedule and monitor appointments with applicants program.requesting assistance. As of May 31, 2021 for the Call Center: Through May 31, 2021, accomplishments are demonstrated o Over 221,500 calls to the Call Center since by the following: opening o Average wait time of approximately four seconds and manage the program o Languages utilized include Cantonese, English, Armenian, Korean, Mandarin, several retired annuitants and other skilled Spanish, Tagalog, and Vietnamese. Additional language support is available for personnel) to implement the program more than 200 languages through on-call Procured the services of three key vendors translation services As of May 31, 2021 Program Metrics: the following: o Over 44,380 applications submitted (not including duplicates and redirections) SB 91 signed by the Governor on January 29, 2021 o More than 40,870 tenant applications and Funding received from Treasury on February 3, 2021 over 3,500 landlord applications Communications vendor (Prosio) hired on February o Obligated more than $ million for rental 10, 2021 and utilities arrears for eligible applicants Local Partner Network vendor (LISC) hired on February 10, 2021, to cultivate and maintain network of community-based partners February 12, 2021, local jurisdictions designated participation as Option A, Option B, or Option C Fund Distribution Partner (FDP) vendor (Horne) hired on March 4, 2021, to provide the technology and Call Center, case management, quality control/ quality assurance, and funds disbursement 16 | HousingIsKey.com California Department of Housing and Community Development June 4, 2021 b.HCD’s California COVID-19 Rent Relief Program and Option A Jurisdictions On March 15, 2021, HCD and its Program Implementer successfully launched the California COVID-19 Rent Relief Program and began accepting tenant and landlord applications. The program was publicly available and operational by the deadline established in SB 91. March 15 through May 31, 2021), the California COVID-19 Rent Relief Program received approximately 44,380 submitted applications (after removing duplicates and redirecting applicants served by local programs). The state program is designed for applicants to submit their full application up- front versus an expression of interest for participation that is trailed by case management to complete the application. The Program Implementer and HCD established application applications represented households within the jurisdictions covered by the state-operated program. Applicants found to reside in jurisdictions covered by locally administered programs are redirected to the appropriate program. This early process step redirected approximately 1,200 applications to the proper Option B jurisdictions and more than 4,400 applicants to their respective Option C program. HCD prioritized applications from jurisdictions covered by the state-operated program for case management review and further processing based on income level, date received, and household criteria. As of May 31, case managers had performed at least a preliminary examination of the applications submitted from jurisdictions covered by the state-run program and prioritized them for payment per tenant vulnerability factors. Case managers followed up with applicants to verify or seek information and proactively reached out to landlords to encourage their participation in active applications. At the end of May, roughly 50 percent of the applications received in the state-run program were in active stages of review and approval. 17 | HousingIsKey.com California Department of Housing and Community Development June 4, 2021 c.Coordinated Programs Among Option B Jurisdictions Jurisdictions that requested state block grant allocations to support their locally administered programs agreed to operate in conformance with SB 91 requirements. To demonstrate their local operations would comply with applicable state and federal guidance, HCD required each jurisdiction to submit documented Program Guidelines and Workplans before approving block grant funds. HCD provided Option B jurisdictions with written guidance, templates, examples, and frequent meetings to support their development of Program Guidelines that conformed to SB 91. Although some jurisdictions began accepting applications HCD has engaged with all 22 of the Option B jurisdictions to understand their program plans and parameters prior to and assistance in their communities. Data is subject to change based on actual applications, eligibility reviews, and funds available for disbursement. Emergency Rental Assistance Applications Received in Selected Option B Jurisdictions Jurisdiction A Jurisdiction B Jurisdiction C Jurisdiction D Jurisdiction E Tenant-initiated 11,232 12,903 3,520 67,065 11,649 Applications received Landlord-initiated 998 1,915 1,202 43,426 2,006 Applications received Cumulative dollar value of requests for $55,262,993 $45,500,000 $30,000,000 $513,837,138 $41,384,913 Rent Arrears to-date: Cumulative dollar value of requests for $50,694,420 $58,600,000 $17,610,000 $660,689,928 $12,330,590 Prospective Rent payments to-date: HCD will continue to monitor and track progress throughout the jurisdictions as part of HCD’s role to ensure adequate state and federal funds are allocated where needed. d.Dual Implementation Approach Among Option C Jurisdictions Sixteen jurisdictions chose to establish local programs that followed federal rental assistance requirements but do not conform to SB 91 (i.e., Option C). Because they did not commit to meeting SB 91 requirements, these jurisdictions did not receive HCD's approval or review of their respective program parameters. Similarly, HCD does not actively oversee jurisdictions' operations the program's inception, HCD has worked with all the Option C jurisdictions to support standard statewide practices, direct 18 | HousingIsKey.com California Department of Housing and Community Development June 4, 2021 For tenants and landlords eligible to apply through HCD’s Some of the Option C jurisdictions established rental California COVID-19 Rent Relief Program, the online application portal collects the required information from the existing programs to expand the emergency rental and utility applicants (both tenants and landlords). Before submitting assistance available. Although it is not responsible for the an application, landlord and tenant applicants must attest to independently administered programs, HCD recognized the following: that some of the localities had not opened their application processes as of late May. HCD retained applications All information provided is true, accurate, and submitted for households within Option C jurisdictions that complete. did not yet have active application processing capabilities to help prevent households in need from being overlooked or falsehoods or omissions in the application, including lost between programs. state and federal criminal penalties. Landlords certify that payment under the program e.Program Administration represents payment in full for the rental debt owed 1.Online Portal The location of the online portal is available via the “Housing As stated previously, HCD designed the online portal is Key” website. to provide a “no wrong door approach” to tenants and landlords across the state. Pivotal to this implementation, Since the rapid design and launch of the online portal, HCD applicants must complete an eligibility questionnaire before has worked continuously to make the website and application proceeding to begin an application with the California as accessible as possible for applicants. For example, HCD COVID-19 Rent Relief Program. This questionnaire seeks updates the eligibility quiz regularly to route applicants to ensure applicants apply to the correct program and, to the correct application portal as local programs open depending on applicant responses, helps redirect applicants and close. In addition, HCD made several updates to the to their local programs. Questions include: eligibility quiz language in response to stakeholder feedback. These changes have streamlined the application process for Is the residence located in California? Asks the income level of the household (i.e., lower applicants across the state. However, HCD recognizes that than 80 percent AMI). further revisions to the website and online application are Is a member of the household at risk of housing needed to help ensure the program is easily accessible for instability? applicants most in need of relief. Has a member of the household experienced Location of the residence in California (i.e., jurisdiction) to address the risk of overlapping with jurisdictions operating a local program. Tribal members are encouraged to apply through their tribal programs. 19 | HousingIsKey.com California Department of Housing and Community Development June 4, 2021 HCD has been working with stakeholder groups, user assistance it has received with its partner jurisdictions to experience designers, legal consultants, and its Local Partner help Californians across the state access aid. Network to improve the application, website, and program. 2. In addition, HCD used analytics about online user behaviors in the current application to understand components Application review includes the process for case that posed challenges. The feedback provided by the research and outreach to partners has been invaluable. Key and documentation, verify eligibility, validate income and suggestions included: rent calculations, collect landlord payment data, and approve rental or utility payments. Case managers perform Reduce documentation requirements a preliminary review of completed applications to determine Consolidate document uploads applicant eligibility and consistency with state and federal Make the website and application more mobile- law. Case managers compare each application against friendly established requirements (e.g., standards) to verify all Provide greater language diversity on the website data is satisfactory and complete. Upon completion of the Shorten the length and complexity of the application preliminary review, applications will be approved, denied, or Reorganize the application for easier navigation Provide applications with additional status updates applications receive a secondary check for remediation, regarding their application where case managers will request and then review missing Enhance the “no wrong door” experience for or clarifying documentation. Applicants may also appeal a applicants denial, which would trigger an additional review by a case In addition to making changes to the online application, HCD recognized the need to help applicants who have limited or Case managers proactively reach out to landlords to gain no internet access. With the help of a network of community- cooperation on behalf of tenants submitting applications. based organizations, HCD provides in-person and phone- based application support. HCD also added capabilities to receive necessary support documents from applicants via SMS text service, reducing the need for scanning or mailing 3.Call Center documents. These applicant services are more fully described The Call Center is available to both tenants and landlords in the “Program Education and Outreach” section below. to answer questions and assist applicants in completing Many recommended changes only became possible to the application in English, Spanish, Korean, Vietnamese, Mandarin, and Cantonese. Additional language support rent relief program guidance. HCD premiered a more user-is available for more than 200 languages through on-call translation services. Through May 31, 2021, the Call Center the average wait time of approximately four seconds for a volume of over 221,500 calls since opening. After the application improvements have been tested and released, HCD’s program implementer will send email 4. reminders to applicants who are in progress but not yet HCD incorporates fraud prevention in the application submitted, letting them know that the process to apply and submit their forms. HCD will also utilize media relations reviewing applications and supporting documentation. Both application forms and documentation requirements help communicate messaging about application changes and ease of use. HCD anticipates sharing the feedback and California Department of Housing and Community Development June 4, 2021 exchanges with Option C jurisdictions address the risk of an allowed but avoided as much as feasible to reduce the risk applicant submitting multiple applications against both the of fraud. HCD’s vendor shall deny program assistance to an state and local programs. HCD’s vendor checks all applications applicant or terminate program assistance for a participant running through the state program to address the risk of if a preponderance of the evidence shows the participant willfully and intentionally committed fraud, bribery, or any other corrupt or criminal act in connection with the program. Fraud and abuse can consist of either a single act or a pattern of actions made with the intent to deceive or mislead, and which constitutes a false statement, omission, or concealment of a substantive fact. Fraud and abuse could result in the payment of program funds in violation of program requirements. In determining whether a case of fraud or abuse exists, HCD’s and intentional misreporting. HCD’s vendor must also evaluate the special circumstances and seriousness of a case to determine whether further investigation for evidence of fraud or abuse is required. If the eligible household is the applicant, HCD will engage eligible household in the application. HCD protects personal information related to the applicant such as income, race, and ethnicity, and disability status from the landlord review. If the applicant is the landlord, HCD engages the eligible household the amount of rent in arrears. If discrepancies exist, or provided documents, HCD’s vendors are required to initiate further investigation. For Option A jurisdictions, HCD established data exchanges to check applications against prior rental assistance received through other programs. For Option C jurisdictions, data exchanges are established, or in process of being established, 21 | HousingIsKey.com California Department of Housing and Community Development June 4, 2021 a.f.HCD’s California COVID-19 Rent Relief Program Education and Outreach 1.program. The HousingIsKey website is viewable in nearly 100 and Outreach languages. 2. began on March 15. This campaign used English, Spanish, Community Based Partner Network Chinese, Tagalog, and Korean radio ads and geographically Beginning in February, HCD started onboarding and activating targeted digital ads to reach low-income renters over 18 a statewide network of community-based organizations to: and their landlords. HCD's second campaign began on April 12 and ended on May 23. The second campaign featured 1.Inform the public and key communities about the rental and utility assistance programs. ensure language is not a barrier to program access, it also 2.Conduct circuit rider / door-to-door outreach as needed. featured advertisements in Spanish, Chinese, Vietnamese, 3.Provide in-person, COVID-safe appointments to Tagalog, and Korean language print media. Finally, the applicants as needed. second campaign featured out-of-home advertisements 4.Advise the program on the communications and on billboards, transit shelters, and gas pump toppers. HCD intentionally selected these locations to provide program as content/materials and outreach targets. information and awareness to eligible households most in 5.Advise the program on the fund disbursement need and their landlords. HCD continues to work with the design, best practices in delivery technology local partner network to better tailor education and outreach solutions to geographically remote, linguistically materials to communities most in need including indigenous, or no broadband access and/or those without bank accounts. In late February, HCD began producing an ERAP awareness In late February, these partners began helping applicants toolkit to provide to program partners. The toolkit includes access the application portal by providing the following prerecorded radio advertisements, videos, social media posts, programming: and posters. Toolkit materials seek to inform eligible landlords and eigible households of their eligibility for the program and Outreach via email, public announcements, text help them apply for assistance. Most toolkit materials are available in California's main languages: English, Spanish, postings, etc. Front door visits to applicants that requested an Tagalog, Vietnamese, Mandarin, and Korean. As of April 30, appointment to assist with application completion. 2021, all Option A jurisdictions, all Option C jurisdictions, Literature drops in neighborhoods/zip codes that several utility companies, and over 100 community-based are at high risk of eviction where the applicant rate partners had received the toolkit. There are also materials is low. available for anyone to download and share at https:// In-person, phone, and virtual appointments with housing.ca.gov/. applicants as requested (launched week of April 12) Webinars in English and in-language regarding the Additionally, beginning in January, HCD started creating an application process. ERAP website landing page on the HousingIsKey website. Technical assistance to help applicants complete HCD designed the landing page to contain information about applications. the California COVID-19 Rent Relief Program and the portal Call Center that can make appointments for for eligible individuals to apply to the California COVID-19 members of the public that would like to attend an partner network in-person appointment. Rent Relief Program. In addition, before the March 15 launch date, HCD launched an eligibility quiz on the landing page to help direct Option B and C applicants to their local 22 | HousingIsKey.com California Department of Housing and Community Development June 4, 2021 application for assistance before them, landlords also receive approximately 102 community-based partners across the an email containing programmatic information and inviting state to provide the services noted above. These partners them to apply. HCD has and will continue to work with give culturally aware information and technical assistance to landlord groups to ensure these communications are clear, concise, and appropriately targeted. based partners are ongoing. HCD recruits and activates additional community-based organizations to respond to ongoing programmatic outcomes, especially concerning cultural communities households most in need of assistance in partnership with the urban intelligence organization UrbanFootprint. The data, mapping, and analytics platform from UrbanFootprint helps HCD and its Local Partner Network understand income and unemployment shifts, underlying health conditions, economic stress, rental property locations, and other demographics at the state, city, and neighborhood levels. These data help HCD identify areas with high levels of eviction risk and inform the program's comprehensive education and outreach approach. 476,000 households in Option A and C jurisdictions at risk of eviction. 93 percent of these households are within 25 miles of a community-based partner organization. Furthermore, on April 26, HCD and its partners launched an SMS text service that allows applicants to provide required documents through SMS texting. Inbound documents are directed (via the text service) to an email inbox that is directly accessed by the HCD rental assistance case management team. HCD launched this service in partnership with the United Way and its community-based partners to help reduce and/or scanners, and related infrastructure. The partners described above serve both eligible landlords and tenant households. HCD has also held several webinars in conjunction with landlord organizations to help eligible landlords apply for relief. From January to May, HCD also provided these partners with relevant communications materials. These materials were made available to landlords across the state through sources they are already familiar with. Throughout April and May, case managers reviewing tenant applications contacted landlords seeking cooperation and educating landlords about the rental assistance 23 | HousingIsKey.com California Department of Housing and Community Development June 4, 2021 b.g.Challenges As described above, HCD and its partners throughout the to locally administered programs. HCD’s outreach and state were able to establish a new statewide program to educational campaigns, in partnership with local partners’ help extremely vulnerable populations in less than 90 days own campaigns, also seek to alleviate confusion. involved overcoming Challenge: Utility providers across the state were not many challenges in varying levels of complexity. A few of initially aware of how to coordinate with state and local for other programs to leverage the solutions. arrearages or even if they were required to do so. 1.Challenges HCD has Resolved Resolution: Challenge: To make ERAP relief available to renters most in for coordination across all regions to gain consistent need, HCD recognized that the application process needed commitments from utility providers, particularly those that to be very accessible in form and broad in its provisions were not part of the same municipalities operating the related to documentation evidence and eligibility, while emergency rental assistance programs. By working with the CPUC, BCSH Agency and HCD garnered the regulator’s support directing the utility companies throughout California Resolution: Before approving any applications for payment, to cooperate, support, and provide arrears balance amounts HCD teamed with several public and private entities to connected with ERAP applications seeking utility payment develop a coordinated fraud prevention approach. These assistance. entities verify applicant information against a variety of sources. Taking lessons from similar emergency aid programs 2.Challenges HCD Continues to Address that preceded it, HCD established internal pre-payment Federal and state statutes governing emergency rental review processes and post-payment audit processes with parties both inside and outside of HCD. External entities areas. First, SB 91 limits the ERAP payments made to landlords to 80 percent of the rental arrears owed by a tenant, though Corrections and Rehabilitation, and the Department of the the federal statute allows for full payment of rental arrears. Military. Challenge: The array of emergency rental assistance options for administering their programs: 1.Option A: HCD administers the proportionate works well to adapt program delivery to varying needs across shares of state and federal funds on a jurisdiction’s behalf in conformity with SB 91. for applying caused confusion among tenants and landlords 2.Opt i on B: The jurisdiction administers its seeking the proper entry point to start an application. allocations of state and federal funds in conformity with SB 91. Resolution: HCD created a public website with simple 3.Option C: The jurisdiction administers its direct questions and a searchable mapping tool to help renters federal allocation in conformity with federal rules, and HCD administers the proportionate share of application. The website at https://housing.ca.gov/covid_rr/ allocated state funds on the jurisdiction’s behalf in conformity with SB 91. with local partner assistance locations. The site also provides Challenge: a dynamic map for tenants and landlords to learn “Which for rental arrears payments have confused landlords and Jurisdiction Do I Apply To?” By entering the residence address added complexity to program operations. HCD continues to or clicking on the map, users are directed to the appropriate state or local jurisdiction that serves them. HCD has been local jurisdictions related to the requirement for landlords to updating the results frequently to keep up with changes consider partial repayment of rent arrears to be “paid in full.” 24 | HousingIsKey.com California Department of Housing and Community Development June 4, 2021 Some landlords have determined the repayment cap is based on state rules and not federal, which creates confusion when they believe ERAP to be a federally funded program. Challenge: Jurisdictions electing to run separate local programs in parallel – but not in conformity – with the state- run program amplify the confusion about federal limits on rent arrears compared to state limits. Landlords and renters at the same address in such Option C jurisdictions may of assistance available to them depending on whether they contact the state or local program, the submittal date on their application, and whether the tenant or landlord initiates the application. Compounding the complexity of this challenge, each of the Option C jurisdictions has a unique formula and program based on application dates, income levels, and applicant types. Challenge: When a jurisdiction opts to run a program in parallel with the state-run rental assistance program, both organizations must take proactive steps to identify, isolate, and resolve duplicate applications before either entity makes a monetary award. Lacking such de-duplication processes increases the programmatic risk of paying applicants in adding steps to continually search for and isolate possible duplicates, increases application processing time and delays Challenge: Although the state statute, SB 91, was only signed into law in late January 2021, it established an end date of March 31, 2021, for consideration of eligible rent arrears. Given that the state-administered program opened as required on March 15, 2021, the actual timeframe of many applicants’ late rent payments can extend to April or May before HCD or local jurisdictions’ programs can issue payments. SB 91 provides for partial payment of “prospective rent” to help cover future months. However, applications submitted by tenants or processed by the state and local programs after April 1 are not eligible for “prospective” on-time payments for deadline. Resolutions in progress: HCD and its parent agency, BCSH, Legislature, Treasury, and all local jurisdictions to create practical, workable solutions for the challenges noted above. Collaboration among all parties is helping identify and establish approaches to address the varied needs and priorities of renters, landlords, and utility providers across California’s varied communities and demographics. 25 | HousingIsKey.com California Department of Housing and Community Development June 4, 2021 Appendices 26 | HousingIsKey.com California Department of Housing and Community Development June 4, 2021 Statutory Basis for Report (d) (1) program, a report that provides programmatic performance metrics for funds administered pursuant to this chapter. The $126,158,948.58 obligated for jurisdictions in the State-Administered Program (Option A) and $22,796,001.02 obligated for the State-Administered portion of Dual Implementation jurisdictions (Option C) as of 5/31/2021 $30,857,790.41 expended for jurisdictions in the State-Administered Program (Option A) and $1,329,115.00 expended for the State-Administered portion of Dual Implementation jurisdictions (Option C) as of 5/31/2021 All expenditures applied to rent and utilities arrears. No reallocation of funds as of 5/31/2021. Please see Appendix III on page 29 and Appendix IV on page 30. Please see Appendix IV on page 30 and Program Implementation Options on page 11 of this report. 27 | HousingIsKey.com California Department of Housing and Community Development June 4, 2021 “Area Median Income (AMI)” – Income data that will be used to determine household eligibility and is aligned with the U.S. Department of Housing and Urban Development (HUD) Adjusted Median Family Income (HAMFI) as established for county and metropolitan statistical areas and as updated annually. “Expenditure (Expended)”– Shall mean a full and complete liquidation of funds. “Large Jurisdiction” or “Jurisdiction” – A Locality with more than 200,000 in population that is eligible to receive funds directly from Treasury. “Small Jurisdiction” – A county and the incorporated cities within the counties with less than 200,000 in total population that is not eligible to receive funds directly from Treasury. premises but does not include liability for torts or damage to the property beyond ordinary wear and tear. A of Title V of Division N of the federal Consolidated Appropriations Act, 2021 (Public Law 116-260). Utility and home energy costs include separately stated electricity, gas, water, sewer, trash removal, and energy cost, such as fuel oil. 28 | HousingIsKey.com California Department of Housing and Community Development June 4, 2021 29 | HousingIsKey.com California Department of Housing and Community Development June 4, 2021 Allocation tables Federal Coronavirus Relief Funds Emergency Rental Assistance Program Reservation Table Small Counties (<200,000) Counties and the Cities State Financial that fall within them Assistance ALPINE $ 81,501.34 AMADOR $ 2,869,655.61 CALAVERAS $ 3,313,834.29 COLUSA $ 1,555,455.56 DEL NORTE $ 2,007,719.41 EL DORADO $ 13,921,135.97 GLENN $ 2,049,661.19 HUMBOLDT $ 9,785,791.29 IMPERIAL $ 13,081,722.72 INYO $ 1,302,216.68 KINGS $ 11,040,579.82 LAKE $ 4,647,958.50 LASSEN $ 2,207,033.13 MADERA $ 11,357,272.80 MARIPOSA $ 1,241,866.71 MENDOCINO$6,262,320.25 MODOC $ 638,222.61 MONO $ 1,042,697.36 NAPA $ 9,943,596.36 NEVADA $ 7,201,209.89 PLUMAS $ 1,357,657.81 SAN BENITO $ 4,534,044.31 SHASTA $ 12,999,788.25 SIERRA $ 216,927.83 SISKIYOU $ 3,143,035.21 SUTTER $ 7,000,235.82 TEHAMA$4,698,346.39 TRINITY $ 886,841.40 TUOLUMNE $ 3,932,710.26 YUBA $ 5,678,961.23 Total $ 150,000,000.00 California Department of Housing and Community Development June 4, 2021 Option A Jurisdictions Federal Financial Assistance State Financial Administered Federal State Federal Local State Financial Assistance State COUNTY/CitythroughStateAdmin8.5%Admin1.5%AssistanceAdmin10% BUTTE $5,865,102.36 $553,926.33 $97,751.71 $7,101,462.92 $789,051.44 CONTRA COSTA $30,866,698.17 $2,915,188.16 $514,444.97 $37,373,382.09 $4,152,598.01 LOS ANGELES $144,066,069.63 $13,606,239.91 $2,401,101.16 $174,435,122.20 $19,381,680.25 Fontana$5,740,969.41$542,202.67$95,682.82$6,951,162.79$772,351.42 SAN LUIS OBISPO $7,575,643.53 $715,477.44 $126,260.73 $9,172,585.25 $1,019,176.14 SAN MATEO $20,512,391.94 $1,937,281.46 $341,873.20 $24,836,393.48 $2,759,599.28 SANTA CRUZ $7,310,787.30 $690,463.25 $121,846.45 $8,851,897.43 $983,544.16 TULARE $12,474,708.30 $1,178,166.90 $207,911.80 $15,104,370.30 $1,678,263.37 VENTURA $17,048,549.43 $1,610,140.78 $284,142.49 $20,642,374.83 $2,293,597.20 Oxnard $5,589,355.41 $527,883.57 $93,155.92 $6,767,588.61 $751,954.29 YOLO $5,900,263.11 $557,247.07 $98,337.72 $7,144,035.55 $793,781.73 Total COUNTY / $262,950,538.59$24,834,217.54$4,382,508.97$318,380,375.45$35,375,597.29 City Option B Federal Financial Assistance State Block Grant (Includes Local Direct Financial State Block Grant Local State Block Grant COUNTY / City Admin) Assistance Admin 8.5% State Admin 1.5% ALAMEDA $29,648,131.00 $32,308,147.49 $3,051,325.04 $538,469.12 Fremont $7,168,619.00 $7,811,784.18 $737,779.62 $130,196.40 FRESNO $13,900,330.20 $15,147,461.31 $1,430,593.57 $252,457.69 Fresno $15,804,677.70 $17,222,665.94 $1,626,585.12 $287,044.43 KERN $15,343,270.80 $16,719,861.91 $1,579,098.07 $278,664.37 Bakersfield $11,421,298.00 $12,446,011.50 $1,175,456.64 $207,433.53 Long Beach $13,754,733.90 $14,988,802.17 $1,415,609.09 $249,813.37 LosAngeles$118,319,705.80$128,935,294.38$12,177,222.25$2,148,921.57 MARIN $7,695,346.50 $8,385,769.37 $791,989.33 $139,762.82 MONTEREY $12,905,387.40 $14,063,252.67 $1,328,196.09 $234,387.54 Anaheim $10,416,959.90 $11,351,564.70 $1,072,092.22 $189,192.74 Irvine $8,544,930.90 $9,311,578.05 $879,426.82 $155,192.97 SACRAMENTO $30,874,446.30 $33,644,487.13 $3,177,534.89 $560,741.45 Sacramento $15,270,933.50 $16,641,034.53 $1,571,653.26 $277,350.58 SAN DIEGO $48,759,661.70 $53,199,154.19 $5,024,364.56 $886,652.57 Chula Vista $8,161,123.90 $8,828,537.57 $833,806.33 $147,142.29 San Diego $42,333,563.00 $46,131,710.47 $4,356,883.77 $768,861.84 SAN JOAQUIN $13,362,958.80 $14,561,877.20 $1,375,288.40 $242,697.95 Stockton $9,297,024.90 $10,131,149.59 $956,830.79 $168,852.49 SONOMA $14,697,467.80 $16,016,117.71 $1,512,633.34 $266,935.30 STANISLAUS $9,973,927.30 $10,868,783.41 $1,026,496.21 $181,146.39 Modesto $6,398,150.80 $6,972,189.90 $658,484.60 $116,203.17 Total COUNTY / City $464,052,649.10 $505,687,235.37 $47,759,350.01 $8,428,120.58 31 | HousingIsKey.com California Department of Housing and Community Development June 4, 2021 Option C Federal Financial State Financial Federal Financial Assistance Local State Financial Assistance State Admin COUNTY / City Assistance Admin 10% Assistance 10% Oakland $11,587,287.33 $1,287,476.37 $14,029,881.44 $1,558,875.72 Santa Clarita $5,699,011.95 $633,223.55 $6,900,360.76 $766,706.75 MERCED $7,430,317.74 $825,590.86 $8,996,624.90 $999,624.99 ORANGE $59,018,900.67 $6,557,655.63 $71,460,054.23 $7,940,006.03 Santa Ana $8,892,352.17 $988,039.13 $10,766,855.35 $1,196,317.26 PLACER $10,658,711.61 $1,184,301.29 $12,905,562.52 $1,433,951.39 RIVERSIDE $51,540,497.73 $5,726,721.97 $62,405,207.87 $6,933,911.98 Moreno Valley $5,701,045.68 $633,449.52 $6,902,823.11 $766,980.34 Riverside $8,866,717.47 $985,190.83 $10,735,816.87 $1,192,868.54 SAN BERNARDINO $46,820,902.68 $5,202,322.52 $56,690,724.61 $6,298,969.40 San Bernardino $5,774,069.79 $641,563.31 $6,991,240.66 $776,804.52 SAN FRANCISCO $23,588,984.43 $2,620,998.27 $28,561,530.13 $3,173,503.35 SANTA BARBARA $11,947,671.63 $1,327,519.07 $14,466,234.60 $1,607,359.40 SANTA CLARA $24,244,783.38 $2,693,864.82 $29,355,571.05 $3,261,730.12 San Jose $27,341,765.91 $3,037,973.99 $33,105,395.93 $3,678,377.33 SOLANO $11,978,283.42 $1,330,920.38 $14,503,299.35 $1,611,477.70 Total COUNTY / City $321,091,303.59 $35,676,811.51 $388,777,183.38 $43,197,464.82 32 | HousingIsKey.com California Department of Housing and Community Development June 4, 2021 Summary of bifurcations between local and state programs Local Pro-Local Pro- gram Open gram Close Locality Transition DateDateDate City and County of State to process rent Executed05/28/21 San Francisco arrears from 4/1/20 to the proposed split is for the life of the funding. https://sf.gov/renthelp current and prospective rents 4/1/2021 forward. City of Moreno ValleyLocality to deploy federal Bifurcation transition is 7/1 Executedapprox or 100% local expenditure, 3/19/2021 http://www.moval.org/ state will take over. rentalrescue/ City of OaklandState to process tenants Executed04/01/2105/17/21 with household income the proposed split is for https://www.oakland- greater than or equal to the life of the funding. ca.gov/resources/ 30% Area Median Income housing-resourc- (AMI) and landlords unless es-erap-emergen- - cy-rental-assistance able Housing projects. Local program to process AMI < 30%. City of RiversideLocality provides full as-Bifurcation transition is Executed03/09/21Prior to sistance from 3/9 to 7/31 8/1 or until 100% local 5/26/21 https://www.riv- State provides assistance expenditure, whichever ersideca.gov/ after 7/31 through pro- homelesssolutions/ gram close. housing-authority/ riverside-rental-assis- tance-program City of San BernardinoLocality to provide full Bifurcation transition Executed11/1/2020 7/1/21. assistance until 6/30/21. http://sbcity.org/city- hall/community_n_eco- State to provide full assis- nomic_development/ tance from 7/1/21 through housing/eviction_pre- close of program. vention_program_.asp 33 | HousingIsKey.com California Department of Housing and Community Development June 4, 2021 Local Pro-Local Pro- gram Open gram Close Locality Transition DateDateDate City of San JoseState to provide full assis-State provides assistance Draft re-approx tance until 4/30/2021 then through 4/30/2021, then ceived5/19/21 (thru https://www.sanjoseca. transition to local program state/local bifurcation be-Santa Clara gov/your-government/ bifurcation in which state gins and operates through County) assists all households with life of the program. housing/covid-19-re- income greater than 30% sources/rental-assis- tance households with incomes at or below 30% AMI. City of Santa AnaLocality assists tenants Executed2/1/2021 with non-participating the proposed split is for https://www.santa-ana. landlords paying tenants the life of the funding. org/covid19/rental-re- a maximum assistance of lief $5,500. State will assist all tenants with participating landlords. County of MercedLocality to assist tenants Executed3/15/2021 with an AMI of 50% or less. the proposed split is for https://www.mer- State will assist tenants the life of the funding. cedcaa.com/v2/ with AMI greater than wp-content/up- 50%. loads/2020/08/ Covid19_Rent_Bro- chure.docx.pdf Orange CountyLocality to assist 100% 5/1/21, transition to the Executed2/1/20214/30/2021 until 4/30/21, then state state program. https://www.ochealth- program takes over. info.com/about-hca/ - dination/emergen- cy-rental-assis- tance-programhttps:// www.ochealthinfo. com/about-hca/ - tion/emergency-rent- al-assistance-program Placer CountyLocality to assist 100% 5/1/21, transition to the Executed3/22/20214/30/2021 until 4/30/21, then state state program. https://renthelpplacer. program takes over. com/https://renthelp- placer.com/ 34 | HousingIsKey.com California Department of Housing and Community Development June 4, 2021 Local Pro-Local Pro- gram Open gram Close Locality Transition DateDateDate Riverside CountyLocality program until 7/1/21, transition to the Draft re-approx 6/30/21, then starting state program.ceived3/15/2021 https://www.unitedlift. 7/1/21, state program will org assist. San Bernardino Locality to assist tenants Executed4/12/2021 Countywith an AMI of 50% or less. the proposed split is for State will assist tenants the life of the funding. https://sbcountycdha. with AMI of greater than com/community-de- 50%. velopment-and-hous- ing-department Executed2/15/20215/8/2021 Santa Barbara CountyLocality to assist until funds are exhausted. the proposed split is for https://www.united- Locality will provide state the life of the funding. waysb.org/rent 3 days notice once funds exhausted. Santa Clara CountyState to provide full assis-State provides assistance Draft re-approx tance until 4/30/2021 then through 4/30/2021, then ceived5/19/21 https://www.sccgov. transition to local program state/local bifurcation be- org/sites/covid19/pag- bifurcation in which state gins and operates through es/rental-assistance. assists all households with life of the program. aspx income greater than 30% households with incomes at or below 30% AMI. Solano CountyLocality to assist 100% Bifurcation transition will Executed4/22/2021 until 7/31/21, then 8/1/21 occur on 8/1/21 or when https://www.ccyoso. state takes over.the locality has expend- org/housing ed 100% of their funds, Locality to accept appli-Transition to the state pro-Executed4/1/2021 City of Santa Clarita cations until 4/30/2021 gram occurs on 5/1/21. COVID-19 Rental Assis- and process applications tance Program | City received. of Santa Clarita, CA Locality will redirect ap- (santa-clarita.com) plicants to state program 5/1/2021-forward. 35 | HousingIsKey.com California Department of Housing and Community Development June 4, 2021 Recapture and Reallocation At the time of this report’s publication, HCD had not recaptured or reallocated any funds. 36 | HousingIsKey.com California Department of Housing and Community Development June 4, 2021 Local Partner Network (LPN) Geographic coverage in Rounds 1, 2, 3 and 4 County Partners County Partners County Partners 1824 217 465 133 322 1126 4122 445 1125 883 2113 574 31011 154 2464 5 37 | HousingIsKey.com California Department of Housing and Community Development June 4, 2021 Language Partners Language Partners 38 | HousingIsKey.com California Department of Housing and Community Development June 4, 2021 Coverage of Local Partner Network compared to jurisdiction boundaries and eviction risk insights 39 | HousingIsKey.com California Department of Housing and Community Development June 4, 2021 CPUC Support for State Rental Assistance Program STATE OF CALIFORNIA GAVIN NEWSOM, Governor PUBLIC UTILITIES COMMISSION 505 VAN NESS AVENUE SAN FRANCISCO, CA 94102-3298 April 15, 2021 VIA E-MAIL Erik Jacobson Tara Kaushik Director, Regulatory Relations Managing Director, Regulatory Relations Pacific Gas and Electric Company Southern California Edison Company 77 Beale Street, Rm. 2343 601 Van Ness Ave, Suite 2030 San Francisco, CA 94105 San Francisco, CA 94102 ebj1@pge.com Tara.kaushik@sce.com Pooja Kishore, Regulatory Affairs Manager Keith Switzer, VP of Reg Affairs PacifiCorp Bear Valley Electric Service 825 NE Multnomah Street, Suite 2000 Golden State Water Company Portland, Oregon 97232 630 E Foothill Blvd pooja.kishore@pacificorp.com San Dimas, CA 91773 KSwitzer@gswater.com Valerie Ontiveros, Regulatory Manager Southwest Gas Corporation Raymond J. Czahar 5241 Spring Mountain road Chief Financial Officer Las Vegas, NV 89193 West Coast Gas Company Valerie.ontiveros@swgas.com 9203 Beatty Drive Sacramento, CA 95826 westgas@aol.com Edward Jackson Director, Rates and Regulatory Affairs Shivani Sidhar Liberty Utilities Director – Regulatory Affairs 933 Eloise Avenue SDG&E and SoCalGas (Sempra) th South Lake Tahoe, CA 96150 488 8 Avenue edward.jackson@libertyutilities.com San Diego, CA 92101 Ssidhar1@semprautilities.com Michael Lamond, CFO/COO Alpine Natural Gas 15 St. Andrews Road #7 Valley Springs, CA 95252 mike@alpinenaturalgas.com California Department of Housing and Community Development June 4, 2021 April 15, 2021 Customer Data Validation for Emergency Rental Assistance Program Page 2 To: Pacific Gas and Electric Company, Southern California Edison Company, San Diego Gas & Electric Company, Southern California Gas Company, Liberty Utilities, Pacific Power, Bear Valley Electric Service, Southwest Gas Corporation, West Coast Gas Company, and Alpine Natural Gas: Subject: Direction to Conduct Customer Data Validation for Emergency Rental Assistance Program On December 27, 2020, the federal Consolidated Appropriations Act, 2021 was signed into law, establishing the federal Emergency Rental Assistance Program (ERAP) and authorizing allocations of funds to states, local governments, tribal communities, and territories to assist renters with unpaid rent and utility bills accrued between April 1, 2020, and March 31, 2021. California Senate Bill 91 (2021) established California’s program for administering and distributing rental assistance funds, authorizing the California Department of Housing and Community Development (HCD) to administer the funds in accordance with state and federal law, and providing a framework for cities, counties, and tribes that received a direct allocation of funds from the U.S. Treasury to implement ERAP funding in partnership with HCD. Before distributing funds, HCD and partner cities, counties, and tribes must perform due diligence to validate customer information. The HCD application process requires customers requesting ERAP relief to consent to HCD providing their submitted information to other entities for the purpose of validating eligibility. HCD has requested that IOUs validate customer application information for eligibility purposes once provided by HCD pursuant to the customer’s request for ERAP relief. This letter serves as a notification that the California Public Utilities Commission (CPUC) plans to take action to enable validation of utility customer information between the utilities and HCD and its partner cities, counties, and tribes to facilitate HCD’s administration of its ERAP for utility arrearages. Specifically, the CPUC authorizes each IOU and SMJU to validate utility customer information of applicants for ERAP, upon HCD’s request or upon request of a partner city, county, or tribe, for the purpose of administering relief. The data shall not be shared or used for any other purpose. Each IOU and SMJU should implement the validation activities described in this letter immediately. While the HCD Rental Relief Program is not a CPUC program, the program is an important opportunity to provide much-needed relief to the utility debts of a significant number of Californians. Between February 2020 and February 2021, the large energy IOUs reported an increase in total residential unpaid bills from approximately $500 million to more than $1.3 billion in total. Of that amount, nearly half is owed by customers enrolled in income-qualified rate assistance programs California Alternate Rates for Energy (CARE) or Family Electric Rate Assistance (FERA). In response to this urgent need, the CPUC recently opened a new proceeding, Rulemaking (R.) 21- 02-014, to address the increase in utility customer arrearages. In that proceeding, the Administrative Law Judge has emphasized the importance of leveraging ERAP funds to maximize their benefit for 41 | HousingIsKey.com California Department of Housing and Community Development June 4, 2021 April 15, 2021 Customer Data Validation for Emergency Rental Assistance Program Page 3 California ratepayers, and has specifically directed IOUs to undertake actions to (1) confirm that utility customers can access the resources that have been made available, and (2) expose any barriers to accessing the HCD ERAP relief funding so that barriers may be promptly addressed. Given the scale of the problem and the need for immediate relief, utilities should dedicate resources to work rapidly to validate the information provided by HCD and its partner cities, counties, and tribes. I intend to request ratification by the full Commission of the actions directed by this letter at a future Commission business meeting. Sincerely, Rachel Peterson Executive Director 42 | HousingIsKey.com