AGENDA STAFF REPORT

Agenda Item AGENDA STAFF REPORT ASR Control 22-000684
MEETING DATE:	09/13/22
legal entity taking action:	Board of Supervisors
board of supervisors district(s):	All Districts
SUBMITTING Agency/Department:	County Executive Office (Approved)
Department contact person(s):	Doug Becht (714) 834-2323
	Lilly Simmering (714) 834-6234

Subject: Approve Amendment to Emergency Housing Vouchers Supportive Services Contract

ceo CONCUR

County Counsel Review

Clerk of the Board

Concur

Approved Agreement to Form

Discussion

3 Votes Board Majority

Budgeted: Yes

Current Year Cost: N/A

Annual Cost: N/A

Staffing Impact:

# of Positions:

Sole Source: N/A

Current Fiscal Year Revenue: N/A

Funding Source: Federal 100% (ARPA and HUD)	County Audit in last 3 years: No

Prior Board Action: 7/19/2022 #29, 7/27/2021 #20, 4/27/2021 #30, 3/23/2021 #27

RECOMMENDED ACTION(S):

Approve Amendment No. 6 to the Contract with Orange County’s United Way dba Orange County United Way for provision of Emergency Housing Voucher Supportive Services, to extend the Contract term by 6 months, through December 31, 2023, for a decreased amount of $1,916,918, for a revised cumulative Contract total amount not to exceed $2,915,646.

Authorize the County Procurement Officer or Deputized designee to execute the Amendment to the Contract, as referenced in the Recommended Action.

SUMMARY:

Approval of the Amendment to the Contract with Orange County’s United Way dba Orange County United Way will provide continued support to individuals and families in leasing up the Emergency Housing Vouchers and better coordinate the delivery of 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. The Orange County Housing Authority (OCHA) received an allocation of 557 EHVs.

Due to the expedited timeframe, HUD has provided Public Housing Authorities funding for the implementation of the EHV to address barriers often experienced by participants in the leasing up process. 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 of rental units utilizing the EHVs by June 30, 2022. On March 2022, HUD provided updated guidance extending the deadline to lease up the EHVs from June 30, 2022, to December 31, 2022.

Prior Board Action:

Board Date:	Contract/ Amendment	Action	Term
March 23, 2021	Contract	Board of Supervisors (Board) Authorized COVID-19 Response Rapid Rehousing Services Contracts	March 23, 2021 – June 30, 2022
April 27, 2021	Contract	Board Authorized COVID-19 Responsive Homeless Services Contract	May 1, 2021 – June 30, 2023
July 27, 2021	Contract/Amendments	Board Authorized Contract and Amendments to Emergency Housing Vouchers COVID-19 Response	July 27, 2021 – June 30, 2023
July 19, 2022	Contract Amendments	Board Authorized Contract Amendments to Emergency Housing Vouchers Supportive Services	July 27, 2021 – December 31, 2023

On July 27, 2021, the County of Orange (County) contracted with Orange County’s United Way dba Orange County United Way (OCUW) for EHV Housing Locator Services and with Mercy House Living Centers, Inc. (Mercy House), PATH People Assisting the Homeless (PATH) and Human Options, Inc. (Human Options) for EHV Supportive Services. OCUW’s EHV Housing Locater Services were to identify private market rental property owners who make rental units available to participants who have been issued EHVs and are actively seeking a rental unit. The EHV Supportive Services were to focus on providing housing stabilization case management to EHV participants after having secured a rental unit; however, the EHV Supportive Services also assisted with the housing search and locating appropriate rental units due to the limited units being identified by OCUW. Unfortunately, OCUW’s EHV Housing Locator Services were not as successful as the other three providers in accomplishing the goal during the first year of program operations.

On June 14, 2022, the Office of Care Coordination issued a Notice to Cure to OCUW noting that performance needs improvement and is actively working with OCUW to address performance issues. The Office of Care Coordination has worked with OCUW to revise the Scope of Services based on OCUW’s performance to date and to ensure that EHV participants are appropriately being supporting in securing rental housing. Additionally, the Office of Care Coordination has provided ongoing technical assistance directly and through a consultant to support OCUW in identifying ways to improve upon the EHV Housing Locater Services.

On July 29, 2022, the Board approved Contract Amendments with Mercy House, PATH and Human Options to expand the EHV Supportive Services being provided to include the EHV Housing Locator Services and financial assistance needed to secure a rental unit and lease up the EHVs. The Contract Amendments were funded utilizing the cost savings associated with the recommended Amendment to the Contract with OCUW.

Summary of Changes to Scope of Services

The Office of Care Coordination is recommending an Amendment to the Contract with OCUW for provision of COVID-19 Responsive Homeless Services Contract to reduce the scope by 78.9 percent and reduce the budget by approximately $3,166,848. OCUW will identify 100 rental units for EHV participants, as opposed to 475 rental units, by December 31, 2022, as the Contract Amendments with Mercy House, PATH and Human Options will work to secure the balance of 375 units. The revised scope is based on the performance and progress to date achieved by OCUW from July 2021 to July 2022.

OCUW’s EHV Housing Locater Services works to identify private market rental property owners who make rental units available to participants who have been issued EHVs and are actively seeking a rental unit. Mercy House, PATH, and Human Options will be supporting participants in accessing the 100 rental units identified by OCUW. Through the first year of the program, OCUW was challenged in identifying rental units that would meet the needs of the participants and EHV requirements, thus necessitating a reduction in the scope of services.

Contractor

Previous Performance Goal:

Contracted # Rental Units to Identify to support EHV lease up

New Performance Goal:

Contracted # Rental Units to Identify to support EHV lease up

OCUW

475

100

Performance Outcomes:

Performance outcomes for the period of July 27, 2021, to July 30, 2022:

Contractor	Contracted # Rental Units to Identify to support EHV lease up	Actual # of Rental Units Identified and EHV Leased up
OCUW	425 units	51 units

The County has verified there are no concerns that must be addressed with respect to the Contractors’ ownership/name, litigation status or conflicts with County interest. This Contract includes subcontractors. See attachment C for Contract Summary Form. The Orange County Preference Policy is not applicable to this Contract award.

The Office of Care Coordination requests the Board to approve the Amendment to the Contract between the County and OCUW, as referenced in the Recommended Action above.

FINANCIAL IMPACT:

Appropriations for this Contract are included in Budget Control 017 FY 2022-23 and will be included in the budgeting process for future years.

The Contract for the proposed Amendment includes a provision stating the Contract is subject to and contingent upon, applicable budgetary appropriations approved by the Board for each fiscal year during the term of this Contract. If such appropriations are not approved, this Contract may be immediately terminated without penalty to the County.

STAFFING IMPACT:

N/A

REVIEWING AGENCIES:

OC Community Resources

ATTACHMENT(S):

Attachment A - Amendment No. 6 to Contract MA-017-22011904 with Orange County's United Way dba Orange County United Way
Attachment B - Contract MA-017-22011904 Redline
Attachment C - Contract Summary Form