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HomeMy WebLinkAboutCity of Fresno 2021-2022 ESG Funding Memo to FMCoC Board with AAP Timelinepdf 1 | Page of 2 Memorandum To: FMCoC Board of Directors From: Tom Morgan, FMCoC Director representing the City of Fresno Subject: FMCoC ESG Consultation: Recommendation to the City of Fresno for Allocating PY 2021-2022 ESG Funding by Eligible Program Component Date: January 7, 2021 The City of Fresno will be releasing a Notice of Funding Availability (NOFA) on February 5, 2021 for Homeless and Homelessness Prevention services for the upcoming 2021 – 2022 funding cycle. Respondents to the NOFA will be seeking ESG funds for activities under one or more of the eligible program components. Since the exact 2021 – 2022 ESG funding award to the City of Fresno is pending announcement by U.S. Department of Housing and Urban Development (HUD), the City is asking the Fresno Madera Continuum of Care (FMCoC) to consider and recommend ESG funding allocations for program components on a percentage basis for the upcoming funding cycle. Once HUD announces the City’s 2021-2022 ESG award1, the recommended percentages will be applied in calculating the actual dollar amounts available under each program component. Selected applicants will receive competitive award(s) for up to the maximum amount available under each program component. Current Year Program Component Allocations Last year, the City of Fresno, in consultation with the FMCoC, allocated 2020-2021 ESG funds to eligible program components as follows: Street Outreach / Emergency Shelter Homeless Prevention Rapid Rehousing Administration HMIS Total 33.5% 5.0% 54.0% 7.5% 0.0% 100.0% Notes to the Table: 1. ESG regulations limit the combined allocation for Street Outreach and Emergency Shelter program components to an amount not to exceed 60% of the annual entitlement grant award. 2. ESG regulations limit the Administration program component funding to an amount not to exceed 7.5% of the annual entitlement grant award. Changing Program Environment In past years, the City submitted a recommendation to the FMCoC for consideration and approval. Typically, the recommendation was a continuation of the prior year percentages, with some minor 1 The current 2020-2021 ESG entitlement award was $610,018. 2 | Page of 2 adjustments made possible by modest increases in the ESG funding. This approached worked well with the 2015 – 2019 Consolidated Plan, as there were no significant disruptors during that period. This year, the City recognizes the federal, state and local response to the COVID-19 pandemic has substantially impacted funding for homeless programs and related service delivery. Homeless funding is at historically high levels. The City also recognizes the rapid expansion of funding has challenged service provider’s capacity to absorb and expend the funding in accordance with timeliness requirements and adapt to HUD and State of California shifts in priorities, objectives and expected outcomes. Additionally, the housing shortage in the Fresno market continues, leaving homeless providers with varying degrees of difficulty in finding suitable vacant and available housing units meeting housing quality standards. For these reasons, the City prefers to open this year’s allocation discussion with an earnest conversation on upcoming homeless funding needs in an environment that has changed greatly since this time last year. Requested FMCoC Board of Directors Discussion and Action: At its January 2021 meeting, the City will be asking the FMCoC Board of Directors to: − Discuss anticipated 2021-2022 homeless funding needs/gaps; − Develop a consensus around 2021-2022 program component allocations (by percentage); − Approve a Board recommendation to the full FMCoC membership for allocating 2021-2022 percentages; and − Ask the FMCOC members to consider and approve the Board recommendation at its January 2021 meeting of the membership.