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CONTRACT NO. K-1213-145: A CONTRACT BY AND BETWEEN THE CITY OF NORMAN, OKLAHOMA, AND THE OKLAHOMA DEPARTMENT OF COMMERCE ACCEPTING AN EMERGENCY SOLUTIONS GRANT IN THE AMOUNT OF $100,000 TO BE USED BY THE SALVATION ARMY, INC., FOR HOUSING RELOCATION AND STABILIZATION SERVICES FOR THE HOMELESS AND FAMILIES SEEKING ASSISTANCE AND BUDGET APPROPRIATION.
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BACKGROUND: Beginning in 1987 the City of Norman sponsored local homeless agencies for funding from the U.S. Department of Housing and Urban Development (HUD) that was provided to the Oklahoma Department of Commerce (ODOC) for distribution. On May 3, 2012 ODOC announced Requests for Applications (RFA) for Funding for the Emergency Solutions Grant (ESG) Program. It is a requirement of ODOC that Emergency Solutions Grant (ESG) Program applications are sponsored by a unit of local government. Each application submitted by a unit of local government, designates a homeless service provider that will receive the pass thru funding for the designated activities. On May 3, 2012 ODOC announced Requests for Applications (RFA) for Funding for the ESG. The RFA's were for 2012 funds.
The 2012 allocation of funding was $1,604,890 statewide. The process to secure the funds was done through a statewide competition with scoring done by ODOC. There were two tiers of funding available per application depending on the services that were applied for, with each tier having the amount of $50,000 each with a maximum award of $100,000 per agency. Applications for these funds were due at ODOC on June 15, 2012. Funding was expected to be available from approximately October 1, 2012 through September 30, 2013. The contract period will be October 1, 2012 through September 30, 2013, although the contracts are just now available to approve. Eligible expenditures from October 1, 2012 will be able to be reimbursed by the grant. All ESG expenditures by the homeless service agency are on a reimbursement basis from the City of Norman who is then reimbursed by ODOC.
Eligible Components for 2012 Allocation
General Administration Activities - 3.75% max
Street Outreach -Subject to the expenditure limits, ESG funds may be used for costs of providing essential services necessary to reach out to unsheltered homeless people; connect them with emergency shelter, housing, or critical services; and provide urgent, non-facility-based care to unsheltered homeless people who are unwilling or unable to access emergency shelter, housing, or an appropriate health facility.
Emergency Shelter Operations - Subject to the expenditure limit in § 576.100(b), ESG funds may be used for costs of providing essential services to homeless families and individuals in emergency shelters, renovating buildings to be used as emergency shelter for homeless families and individuals, and operating emergency shelters.
Homeless Prevention -ESG funds may be used to provide housing relocation and stabilization services and short- and/or medium-term rental assistance necessary to prevent an individual or family from moving into an emergency shelter or another place described in paragraph (1) of the "homeless" definition in § 576.2.
Rapid Rehousing Assistance - ESG funds may be used to provide housing relocation and stabilization services and short- and/or medium-term rental assistance as necessary to help a homeless individual or family move as quickly as possible into permanent housing and achieve stability in that housing.
On May 22, 2012 City Council authorized the submittal of five applications to ODOC for the Emergency Solutions Grant for five agencies including Salvation Army, Inc. All of the applications were prepared by the agencies in consultation with the Continuum of Care and City of Norman staff. Distribution of funding to a nonprofit is permitted only when the unit of general local government, in which the assisted project is to be located, certifies that it approves the proposed project. This certification was submitted to ODOC with the application.
DISCUSSION: The application submitted by the City of Norman for Salvation Army, Inc. requested $100,000, and was awarded $100,000. The $100,000 is to be used for costs of operation, homeless prevention and rapid re-housing activities. Contract No. K-1213-145 is between the City of Norman and ODOC for Salvation Army, Inc. The following Contract No. K-1213-146 is between the City of Norman and Salvation Army, Inc. for the same amount.
RECOMMENDATION: Staff recommends approval of contract K-1213-145 between the Oklahoma Department of Commerce and the City of Norman for the Emergency Solutions Grant in the amount of $100,000; and approval to appropriate $100,000 from fund balance account number 021-0000-253.20-00 into expenditure account number 021-4001-463.47-78 (Salvation Army).