To: Board of Supervisors
From: John Kopchik, Director, Conservation and Development
Report Title: 2024/25 State of California Emergency Solutions Grant Program Funds
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
ADOPT a Resolution authorizing the Conservation and Development Director, or designee, to apply for and execute a contract to accept State of California (State) Emergency Solutions Grant (ESG) funds in an amount not to exceed $1,154,259 for eligible activities to assist homeless individuals and families with services to regain permanent housing as approved by the State ESG Program requirements and other applicable rules and laws, for fiscal years 2024/25 through 2026/27, and APPROVE proposed 2024/25 spending plan.
FISCAL IMPACT:
No General Fund impact. All funds are provided to the County on a formula basis through the State of California. The State ESG funds are allocated to the State by the U.S. Department of Housing and Urban Development and then distributed to eligible local Administrative Entities. Contra Costa County is an eligible Administrative Entity. The estimated State ESG formula allocation to the County is $769,506 of which $304,250 available with estimated FY 2024 funds; $232,628 available with estimated FY 2025 funds; and $232,628 available with estimated FY 2026 funds. However, additional funds may become available from disencumbered expired ESG contracts. Application instructions from the State recommend listing an approved dollar amount that is at least 150 percent of the formula allocation, or $1,154,259, to receive additional funds if they become available. The attached table of recommended State ESG allocations includes only the estimated amount. A portion of the funds are reserved for program administration in the County’s Department of Conservation and Development.
BACKGROUND:
The State of California Department of Housing and Community Development allocates State Emergency Solutions Grant (ESG) funds to Continuum of Care (CoC) geographic areas. The CoC is a program through which the U.S. Department of Housing and Urban Development strives to end homelessness. The County’s Health, Housing and Homeless Services manages the CoC for Contra Costa. The County Department of Conservation and Development (DCD) is the Administrative Entity for the State ESG funds and is required to collaborate with the CoC. The ESG Program provides funds to activities that (1) engage homeless individuals and families who are living on the street, (2) improve the number and quality of emergency shelters for homeless individuals and families, (3) help operate shelters, (4) provide essential services to shelter residents, (5) rapidly re-house homeless individuals and families, and (6) prevent families/individuals from becoming homeless. The County has participated in the State ESG Program since 2016.
Starting with the FY 2024/25 State ESG funding cycle, the State Department of Housing and Community Development has moved to a three-year funding cycle for State ESG funds and is allowing agencies to submit a three-year resolution, covering FY 2024, FY 2025, and FY 2026. Therefore, the State ESG Fund Resolution is for the County to apply for and receive three years’ worth of State ESG funding. Although the resolution is for three years of funding, staff is only requesting approval for FY 2024 funding recommendations for the respective agencies and programs reflected in Attachment A. County staff will return to the Board of Supervisors in the subsequent years for the approval of funding recommendations to agencies and programs for FY 2025 and FY 2026 State ESG funds.
To apply for allocations of State ESG funds, the County Board of Supervisors must approve a resolution authorizing and affirming the following: 1) that the funds will be used in a manner consistent with all applicable laws, regulations and contracts regarding the ESG Program; 2) that the County will receive ESG grant funds in an amount not to exceed $1,154,259; 3) that the ESG grant funds will be used for eligible activities; and 4) that the DCD Director, or designee, is authorized to execute a Standard Agreement for ESG funds and related documents.
CoC - Council on Homelessness Meeting
The Contra Costa Council on Homelessness (COH) is appointed by the Board of Supervisors and serves as the County’s CoC executive council. It provides advice and input on the operations of homeless services and program operations, establishes the local process for applying for various programs, including ESG. Given that this is the first year of the State’s three-year funding cycle, DCD staff consulted with the COH at its March 6, 2025 meeting to present the funding recommendations for year one (FY 2024/25) funds. The COH approved those recommendations for the Board’s consideration. Attachment A provides the recommended amounts of FY 2024/25 State ESG funds to each respective service provider. As previously stated, although the State ESG Fund Resolution is for three years of funding, staff is only requesting approval of FY 2024 funding recommendations for the respective agencies and programs reflected in Attachment A, and staff will come back to the Board in subsequent years for the approval of FY 2025 and FY 2026 recommendations.
CONSEQUENCE OF NEGATIVE ACTION:
The County will not be able to receive State ESG funds to support CoC geographic areas.