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Agenda Item
ASR
Control 22-000588 |
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MEETING DATE: |
07/19/22 |
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legal entity taking action: |
Board of Supervisors |
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board of supervisors
district(s): |
All Districts |
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SUBMITTING
Agency/Department: |
County Executive Office (Approved) |
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Department contact
person(s): |
Doug Becht (714) 834-2323 |
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Lilly Simmering (714) 834-6234 |
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Subject: Approve Amendments to
Emergency Housing Vouchers Contracts
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ceo CONCUR |
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Clerk of the Board |
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Concur |
Approved Agreement to Form |
Discussion |
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3 Votes Board Majority |
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Budgeted: Yes |
Current Year Cost:
$1,174,440 |
Annual Cost:
FY 2023-24: $1,174,439 |
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Staffing Impact: |
No |
# of Positions:
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Sole Source:
Yes |
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Current Fiscal Year Revenue: N/A
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Prior Board Action: 7/27/2021
#20, 4/27/2021 #30, 3/23/2021 #27 |
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RECOMMENDED ACTION(S):
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1. |
Approve Amendment No. 3 to the Contract with Human Options, Inc. for provision of Emergency Housing Voucher Supportive Services, to extend the Contract term by six months, effective through December 31, 2023, for an increased amount not to exceed $175,000, for a revised cumulative Contract total amount not to exceed $920,260. |
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2. |
Approve Amendment No. 5 to the Contract with Mercy House Living Centers, Inc. for provision of Emergency Housing Voucher Supportive Services, to extend the Contract term by six months, effective through December 31, 2023, for an increased amount not to exceed $1,073,161, for a revised cumulative Contract total amount not to exceed $8,298,898. |
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3. |
Approve Amendment No. 4 to the Contract with PATH People Assisting The Homeless for provision of Emergency Housing Voucher Supportive Services, to extend the Contract term by six months, effective through December 31, 2023, for an increased amount not to exceed $1,100,718, for a revised cumulative Contract total amount not to exceed $4,934,325. |
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4. |
Authorize the County Procurement Officer or Deputized designee to execute the Amendments to the Contracts as referenced in the Recommended Actions. |
SUMMARY:
Approval of the Amendments to the Contracts with Human Options, Inc., Mercy House Living Centers, Inc., and PATH People Assisting The Homeless will provide continued support to individuals and families in leasing up the Emergency Housing Vouchers and receiving supportive services to promote long-term housing stability.
BACKGROUND INFORMATION:
On March 11, 2021, President Biden signed the American Rescue Plan Act of 2021 (ARPA) into law, which provides over $1.9 trillion in relief to address the continued impact of the COVID-19 pandemic. ARPA appropriates $5 billion for new Emergency Housing Vouchers (EHV), the renewal of those EHVs and fees for the cost of administering the EHVs and other eligible expenses. The EHVs are tenant-based housing choice vouchers that provide ongoing rental assistance for eligible households.
On May 5, 2021, the U.S. Department of Housing and Urban Development (HUD) announced the allocation of approximately 70,000 EHVs to public housing authorities and associated timelines with utilization and reallocation processes. The Orange County Housing Authority (OCHA) received an allocation of 557 EHVs with an effective date of July 1, 2021 and an expected utilization by June 30, 2022.
Due to the short timeframe to issue and lease up EHVs, HUD has provided Public Housing Authorities with Special Fee funding for the implementation of the EHV to address barriers often experienced by participants in the leasing up process and assist with move in costs. The Office of Care Coordination and OCHA utilized the funding to expand existing contracted programs and established a new contract to support housing navigation and leasing up of EHVs by June 30, 2022. On March 10, 2022, HUD provided updated guidance extending the deadline to lease up the EHVs to December 31, 2022.
Prior Board Action
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Board Date |
Contract/ Amendment |
Action |
Term |
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March 23, 2021 |
Contract |
Board of Supervisors (Board) Authorized COVID-19 Response Rapid Rehousing Services Contracts |
March 23, 2021 – June 30, 2022 |
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April 27, 2021 |
Contract |
Board Authorized COVID-19 Responsive Homeless Services Contract |
May 1, 2021 – June 30, 2023 |
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July 27, 2021 |
Contract and Amendments |
Board Authorized Contract and Amendments to Emergency Housing Vouchers COVID-19 Response |
July 27, 2021 – June 30, 2023 |
Administrative amendments were executed for the transfer of the Contract numbers from the Health Care Agency to the County Executive Office.
As of June 15, 2022, a total of 224 EHVs have been leased up with an additional 146 EHVs issued to eligible participants who are currently in the housing navigation process or have found a unit and are pending lease up. Although the 224 vouchers leased up represents 40.2 percent of OCHA’s EHVs, and is higher than the national average of 34.3 percent as reported by HUD, identifying vacant units for EHV holders in Orange County has been challenging, particularly for one-bedroom units since the pandemic.
Through the first year of the program, participants had higher success in securing a rental unit and leasing up the EHV by working with the supportive services provider, Mercy House Living Centers, Inc. (Mercy House), PATH People Assisting the Homeless (PATH) and Human Options, Inc. (Human Options).
The Office of Care Coordination is recommending a term extension to ensure that participants receive 12-months of supportive services once the EHV has leased up, especially if issued an EHV after June 30, 2022. Additionally, given the challenging rental market and the delays current EHV participants are experiencing in leasing up, the Office of Care Coordination is recommending changes to the existing contracts to augment efforts in unit identification and lease up activities by the service providers and shifting funding to ensure financial assistance for one-time costs related to unit identification. The Amendments for the COVID-19 Response Rapid Rehousing Services Contract with Mercy House, PATH and Human Options are focused on providing unit identification, financial assistance, housing navigation, housing support assistance and housing stabilization services to individuals and families who are experiencing homelessness and have been issued an EHV from OCHA.
Summary of Changes to Scope of Services
The Amendments for the COVID-19 Response Rapid Rehousing Services Contract with Mercy House and PATH and Amendment of EHV Supportive Services Contract with Human Options are focused on providing financial assistance for one-time costs associated with unit identification and leasing activities to assist EHV participants become permanently housed. The providers will leverage their network of landlords and community partners to increase intensity around unit search efforts and landlord engagement. These activities along with housing support assistance will ensure participants are appropriately supported to navigate any barriers or challenges related to the housing search process.
- Unit Identification and Leasing Activities: Identification of rental housing that meets the needs and preferences of participants throughout Orange County, including physically accessible units with features for household members with disability, as well as meeting the Fair Market Rent (FMR).
Financial Assistance for one-time costs related to rental unit costs, such as but not limited to application fees, security deposits, moving costs, unit holding fees, property owner bonuses and other costs related to housing navigation, retention, and property owner recruitment/management.
The new performance goal identified for the Contractors are detailed below and were derived based on the capacity each provider has to support with these activities, while also taking into account the efforts currently underway by Orange County’s United Way to identify rental housing units. The Contractors will be working with the EHV Participants as part of the supportive services portion of the contract already.
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Contractor |
New Performance Goal: Contracted # of Participants to be Provided Unit Identification Services and Financial Assistance |
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Mercy House |
120 |
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PATH |
110 |
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Human Options |
20 |
Performance Outcomes:
Performance outcomes for the period of July 27, 2021, to June 10, 2022:
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Contractor |
Contracted # of Participants to be Provided Housing Support and Stabilization Services |
Actual # of Participants to be Provided Housing Support and Stabilization Services |
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Mercy House |
220 Participants |
188 Participants |
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PATH |
205 Participants |
158 Participants |
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Human Options |
54 Participants |
45 Participants |
Mercy House, PATH, and Human Options performances have been confirmed as satisfactory. The County has verified there are no concerns that must be addressed with respect to the Contractors’ ownerships/names, litigation status or conflicts with County interest. A completed Sole Source Request Form is attached to this Agenda Staff Report for the Sole Source Contract with Human Options. A Sole Source Contract with Human Options was implemented as Human Options coordinates with the other three providers in Orange County supporting survivors of domestic violence in accessing EHV and related supportive services. The contract with Human Options includes subcontractors and Contract Summary Forms are attached as Attachment G thru I. The Orange County Preference Policy is not applicable to this contract award.
The Office of Care Coordination requests the Board approve the Amendments to the Contracts between the County and Mercy House, PATH, and Human Options, Inc., as referenced in the Recommended Action above.
FINANCIAL IMPACT:
Appropriations for these contracts are included in Budget Control 017’s FY 2022-23 budget and will be included in the budgeting process for future years.
The contracts for the proposed Amendments include a provision stating the contracts are subject to and contingent upon, applicable budgetary appropriations approved by the Board for each fiscal year during the term of these contracts. If such appropriations are not approved, these contracts may be immediately terminated without penalty to the County.
STAFFING IMPACT:
N/A
REVIEWING AGENCIES:
OC Community Resources
ATTACHMENT(S):
Attachment A - Amendment No. 3 to MA-017-22011899 with
Human Options, Inc.
Attachment B - Amendment No. 5 to MA-017-22011889 with Mercy House Living Centers
Attachment C - Amendment No. 4 to MA-017-22011909 with PATH People Assisting
The Homeless
Attachment D - MA-017-22011899 Redline
Attachment E - MA-017-22011889 Redline
Attachment F - MA-017-22011909 Redline
Attachment G - Contract Summary Form to Attachment A
Attachment H - Contract Summary Form to Attachment B
Attachment I - Contract Summary Form to Attachment C
Attachment J - Sole Source Request Form to Attachment A