CITY OF CHARLOTTESVILLE, VIRGINIA CITY COUNCIL AGENDA Agenda Date: September 7, 2021 Action Required: Approval and Appropriation Presenter: Misty Graves, Director, Human Services Staff Contacts: Misty Graves, Director, Human Services Title: Housing Opportunities for People with AIDS/H.I.V. (H.O.P.W.A.): $288,172 Background: The Department of Human Services in coordination with the Thomas Jefferson Area Coalition for the Homeless (T.J.A.C.H.) and the Service Provider Council (S.P.C.), applied for and received a grant from the Virginia Department of Housing and Community Development. The Housing Opportunities for People with AIDS/H.I.V. (H.O.P.W.A.) award is $288,172 and is a renewal contract for the program from Housing and Urban Development (H.U.D.) for July 1, 2021 – June 30, 2022. Discussion: The City of Charlottesville has staff from Human Services and Social Services taking leadership roles in the governance of T.J.A.C.H. H.O.P.W.A. is an important resource in our community’s efforts to end homelessness. The grant provides services in four key areas. 1. Tenant-Based Rental Assistance (T.B.R.A.): The Thomas Jefferson Health District (T.J.H.D.) partners with The Haven to provide T.B.R.A. to eligible participants. The T.J.H.D. screens participants for eligibility and inspects the proposed property to ensure that it meets H.U.D. requirements. Upon successful screening, The Haven contacts the landlord to arrange monthly rent payment, similar to rapid re-housing. 2. Short-term Rental, Mortgage and Utility Assistance: T.J.H.D. screens eligible participants for short-term assistance including emergency utility payments to avoid shut- off. . 3. Supportive Services: T.J.H.D. provides supportive services including crisis intervention, case management and service referrals. 4. Homeless Management Information System(H.M.I.S.): The City of Charlottesville as the award recipient will ensure that H.M.I.S. data is complete through an agreement with T.J.A.C.H. to have the Executive Director ensure data quality. Our Continuum of Care (C.O.C.) has a well-populated database for individuals experiencing homelessness. HMIS collaboration provides real-time monitoring of the needs and progress of individuals and households facing homelessness. Collaborative use of H.M.I.S. among T.J.A.C.H. C.o.C. Service Providers expedites communication and reduces the need to interface disparate documentation systems. 5. Administration: The City of Charlottesville as the award recipient is eligible for an administrative fee. Staff proposes that we pass these dollars through to T.J.H.D. & The Haven to support the supervision of assigned staff. Community Engagement: This grant and plan are the product of extensive engagement of the service provider community for persons experiencing homelessness. This partnership is reflective of the new governance model for T.J.A.C.H. and the priority requests of the Interfaith Movement Promoting Action by Congregations Together (IMPACT). Alignment with City Council’s Vision and Strategic Plan: This grant advances the City of Charlottesville’s Strategic Plan Goal #1 of enhancing the self sufficiency of our residents. Specifically, it will facilitate the objective of increasing affordable housing options. This item primarily aligns with Council’s vision for Quality Housing Opportunities for All. Budgetary Impact: This grant will be entirely State, and Federal pass-through funds. No local match is required. There is no budget impact for the City of Charlottesville. All funds will be distributed to sub- recipients for service provision. Recommendation: Staff recommends approval and appropriation of grant funds. Alternatives: Council may elect to not accept the funds and the community will not have the capacity to administer the following services to persons experiencing a housing crisis while managing AIDS/H.I.V:. short-term rental assistance, utility assistance, rapid rehousing, H.M.I.S., and administration. Attachments: Appropriation Resolution Sub-grant Agreement APPROPRIATION H.O.P.W.A. Grant $288,172 WHEREAS, The City of Charlottesville, through the Department of Human Services, has received the H.O.P.W.A. Grant from the Virginia Department of Housing and Community Development in the amount of $288,172; NOW, THEREFORE BE IT RESOLVED by the Council of the City of Charlottesville,Virginia that the sum of $288,172 is hereby appropriated in the following manner: Revenues $288,172 Fund: 209 IO: 1900372 (H.O.P.W.A.) G/L: 430120 Federal Pass-Thru State Expenditures $288,172 Fund: 209 IO: 1900372 (H.O.P.W.A.) G/L: 530550 Contracted Services BE IT FURTHER RESOLVED, that this appropriation is conditioned upon receipt of $288,172 in funds from the Virginia Department of Housing and Community Development. SUB-GRANT AGREEMENT HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS PROGRAM U.S. Department of Housing and Urban Development HOPWA- Project 21-HW-303 (July 1, 2021 to June 30, 2023) This Sub-grant Agreement is made by and between the Virginia Department of Housing and Community Development (DHCD) and the project sponsor, City of Charlottesville (Sub- grantee). The Sub-grant, which is the subject of this Agreement, is authorized by the Governor of the Commonwealth under a Grant Agreement, executed by and between the U.S. Department of Housing and Urban Development (HUD), and the State of Virginia, the Recipient. The Sub-grantee was identified as part of the community’s emergency response system to homelessness in the 2020-2022 Homeless and Special Needs Housing (HSNH) Housing Opportunities for Persons With AIDS (HOPWA) application submitted by the lead agency (or designee) of the continuum of care (CoC) or balance of state local planning group (LPG). Activities funded through this grant will be provided at the Grantee location(s) identified in DHCD’s Centralized Application Management System (CAMS). The Sub-grant is comprised of an allocation from the United States Department of Housing and Urban Development (HUD) authorized under the Housing Opportunities for Persons With AIDS Grant-CV for federal fiscal year 2021; the federal grant number is VAH21F999 and the Catalog of Federal Domestic Assistance (CFDA) number is 14.241. The Sub-grant is subject to the following terms (as they from time to time may be amended): AIDS Housing Opportunity Act, 42 USC Sec. 12901 et. seq. (the Act); the Housing Opportunities for Persons With AIDS (HOPWA) program rule, 24 CFR 50 and 574 as amended; and the Consolidated Plan rule, 24 CFR 91 as amended; all of which are incorporated herein as part of this Agreement. The Sub-grant is subject to the terms, guidelines and regulations set forth in the 2020-2022 Homeless and Special Needs Housing Guidelines document including the Housing Opportunities for Persons With AIDS (HOPWA) Program Guidelines section, any subsequent amendments, the CoC/LPG proposal as amended through negotiations with DHCD, the DHCD approved Sub-grantee budget, which are incorporated by reference as part of this Agreement, the laws of the Commonwealth of Virginia and federal law. I. Scope of Services The funding provided through this sub-grant must be used to carry out activities as specified in the 2020-2022 Homeless and Special Needs Housing Guidelines document including the Housing Opportunities for Persons With AIDS (HOPWA) Program Guidelines section, and any subsequent amendments to the guidelines. Sub-grantee must adhere to the DHCD approved budget and all specified cost category limits as outlined in the guidelines. HOPWA Cost Category Limits * Cost Category Limits as Percentage of Total Award Administration 7 percent or less Housing Information Services 3 percent or less * See guidelines for details related to cost categories. 2021-2023 HOPWA Grant Agreement 1 of 7 I. Conditions A. Service Provision Sub-grantee is responsible for coordination of HSNH HOPWA activities with other HSNH HOPWA Sub-grantees and mainstream resources. Sub-grantee must assure non-duplication of services with other HSNH HOPWA Sub-grantees. B. Disbursement of Funds DHCD agrees to provide $288,172 to the Sub-grantee to undertake the approved project activities described in the Sub-grantee 2020-2022 Homeless and Special Needs Housing - Housing Opportunities for Persons With AIDS (HOPWA) application for the July 1, 2021 through June 30, 2023 program years. The Sub- grantee must submit, for approval by DHCD, a program budget for the 2021-2022 allocation. Funds must be expended per the approved budget. The Sub-grantee agrees to provide HOPWA funds to non-entitlement localities and to coordinate the provision of services with other HOPWA project sponsors. Funds are disbursed on a reimbursement basis. Sub-grantees must be able to provide documentation that the work, services, or cost occurred within the grant period and the expenses were paid appropriately by the Sub-grantee. Program funds shall be disbursed to the Sub-grantee on a monthly or bi-monthly reimbursement schedule determined by the Sub-grantee. The option selected should be adhered to throughout the year. Supporting documentation must clearly indicate the period for which the reimbursement is requested. The Sub-grantee must request approval from DHCD for all changes which affect the scope of the project, including but not limited to addition or deletion of an activity, location of services, service area, objectives, timing of activity, and expenditures that will exceed the budget cost category. DHCD reserves the right to de-obligate and reallocate funds at any point during the contract term. C. Reporting Sub-grantees must submit the following reports: Year-End Report Year-end reports must be submitted as instructed by DHCD. No future funds will be disbursed until all required reports for the previous fiscal year are submitted to DHCD. D. Continuum of Care Participation Sub-grantees must actively participate in the Homeless Management Information System or comparable system (as defined in the HSNH-HOPWA Guidelines) and regional continuum of care or balance of state local planning groups. E. Accounting The Sub-grantee must adhere to Generally Accepted Accounting Principles (GAAP). The Sub-grantee shall establish and maintain separate accounts within its existing accounting system or set up accounts independently. The Sub-grantee shall record in its accounting system all grant payments received pursuant to the 2021-2023 HOPWA Grant Agreement 2 of 7 grant and all other match funds provided for, accruing to, or otherwise received on account of the grant. All costs charged to the grant shall be supported by properly executed payrolls, timesheets, contracts, or vouchers evidencing in proper detail the nature and propriety of the charges. All checks, payrolls, contracts, vouchers, or other accounting documents pertaining in whole or in part to the grant shall be clearly identified, readily accessible, and separate and distinct from all other such documents. Such documents shall reside at the offices of the sub-grantee. A. DHCD Notification Sub-grantee must notify DHCD of any potentially illegal act, such as misuse of grant funds or fair housing violations, immediately upon knowledge of such act. In addition, sub-grantee must notify DHCD should any other local, federal or state agency uncover evidence of any potentially illegal act. Sub-grantee must notify DHCD if there is a change in agency management and/or fiscal personnel. Failure to do so will constitute a finding and may result in repayment of funds by the sub-grantee, the de-obligation of current funding and the preclusion of future funding. B. Audit All grantees, sub-grantees, CHDOs, and sub-recipients, localities, developers, or any other organizations that receive funding during a specific program year are required to submit one of the following financial documents: Financial Statement**, Reviewed Financial Statement prepared by an independent Certified Public Accountant (CPA), Audited Financial Statement prepared by an independent CPA or an 2 CFR 200 Subpart F Audit (Single Audit) prepared by an independent CPA. Please see the table below to determine which document your organization is required to submit. The threshold requirements outlined below are the minimal standards required by DHCD. We strongly encourage all organizations receiving funds from DHCD to undertake the highest level of financial management review to ensure practices and procedures are fully examined and evaluated. Threshold Requirement Document Total annual expenditures <$100,000 – Financial Statement prepared by organizations** regardless of source Total annual expenditure between Reviewed Financial Statement prepared by an $100,001 and $300,000 – regardless of Independent Certified Public Accountant (CPA) source Total annual expenditures >$300,000 – Audited Financial Statement prepared by an regardless of source Independent CPA Federal expenditures >$750,000 2 CFR 200 Subpart F Audit - prepared by an Independent CPA **Does not require preparation by a CPA Entities shall file the required financial document in the Centralized Application and Management System (CAMS) within nine (9) months after the end of their fiscal year or 30 (thirty) days after it has been accepted (Reviewed Financial Statement, 2021-2023 HOPWA Grant Agreement 3 of 7 Audited Financial Statement, and 2 CFR 200 Subpart F Audit only) -whichever comes first. The full DHCD Audit Policy, including an explanation of the specific document requirements, can be found online at: http://www.dhcd.virginia.gov/images/DHCD/DHCD_Audit_Policy.pdf. A. Compliance Sub-grantees with outstanding audit findings, IRS findings, DHCD monitoring findings or other compliance issues are not eligible to receive allocations. DHCD will work with all interested parties toward the resolution of unresolved matters, where appropriate. B. Maintenance of Records Records shall be readily accessible to DHCD, appropriate state and federal agencies, and the general public during the course of the grant agreement and shall remain intact and accessible for five years thereafter. The exception is in the event that any litigation claim or audit is started before expiration of the five year period, the records shall be retained until such action is resolved. C. Costs Incurred Prior To Grant Agreement Execution No costs incurred prior to the start date of the contract period shall be eligible for reimbursement with grant funds, unless incurred costs are authorized in writing by DHCD. D. State Not Liable The Grantee shall hold harmless the Commonwealth of Virginia, DHCD, its agents and employees from any and all claims and demands based upon or arising out of any action by the Grantee, its employees, agents or contractors. E. Expenditure Review DHCD will monitor expenditure rates to ensure resources are maximized. Failure to expend funds proportionately throughout the contract period may result in the de-obligation of funds. DHCD reserves the right to de-obligate funds at any time during the contract period and reallocate as deemed appropriate within the CoC/LPG or statewide based on compliance, performance, need and available funding. F. Termination, Suspension, Conditions This Sub-grantee Agreement shall remain in effect from the date of the signing of the grant agreement until June 30, 2023. Either party shall have the right to cancel this agreement for any reason with a 30 days written notice. If through any cause, the Sub-grantee fails to comply with the terms, conditions or requirements of the contract documents, DHCD may terminate or suspend this Agreement by giving written notice of the same and specifying the effective date termination or suspension at least five (5) days prior to such action. In the case of contract violation by the Sub-grantee, DHCD may request that all or some of the grant funds be returned, even if the Sub-grantee has already 2021-2023 HOPWA Grant Agreement 4 of 7 expended the funds. The Sub-grantee agrees to return such funds as requested by DHCD within 30 days of the written request. A. Subsequent Contracts The Sub-grantee shall remain fully obligated under the provisions of the Grant Agreement notwithstanding its designation of any subsequent or third parties for the undertaking of all or part of the activities for which the Grant assistance is being provided to the Sub-grantee. The Sub-grantee agrees to ensure that any contractor or subcontractor who is not the Sub-grantee shall comply with all the lawful requirements of the Sub-grantee necessary to insure that the project for which this assistance is being provided under this Agreement are carried out in accordance with the Sub-Grantee’s Assurances and Certifications. B. Default A default is any unapproved use of grant funds. Upon due notice to the Sub- grantee of the occurrence of any such default and the provision of a reasonable opportunity to respond, DHCD may take one or more of the following actions: (1) direct the Sub-grantee to submit progress schedules for completing approved activities; (2) issue a letter of warning advising the Sub-grantee of the default, establishing a date by which corrective actions must be completed and putting the Sub-grantee on notice that more serious actions will be taken if the default is not corrected or is repeated; (3) direct the Sub-grantee to suspend, discontinue or not incur costs for the affected activity; (4) require the Sub-grantee to reimburse DHCD for costs inappropriately charged to the program; (5) other appropriate action including, but not limited to, any remedial action legally available, such as affirmative litigation seeking declaratory judgment, specific performance, damages, temporary or permanent injunctions and any other available remedies. No delay or omissions by DHCD in exercising any right or remedy available to it under the Agreement shall impair any such right to remedy or constitute a waiver or acquiescence in any Sub-grantee default. C. Conflict of Interest Sub-grantees shall ensure that the provision of any type or amount of assistance may not be conditional on an individual’s or family’s acceptance or occupancy of housing owned by the sub-grantee, a parent organization, or subsidiary. Sub- grantees, parent organizations, or subsidiaries may not administer HOPWA assistance and use the assistance for households residing in units owned by the Sub-grantee, parent organization, or subsidiary. 2021-2023 HOPWA Grant Agreement 5 of 7 Individuals (employees, agents, consultants, officers, or elected or appointed officials of the sub-grantee) may not both participate in decision-making related to determining eligibility and receive any financial benefit. This financial benefit may not be received by the specific individual, any member of his/her immediate family or a business interest. The restriction applies throughout tenure in the position and for a one-year period following tenure. A. Religious Influence The Grantee may not engage in inherently religious activities, such as worship, religious instruction, or proselytization as part of the programs or services funded under HOPWA. If an organization conducts these activities, then they must be offered separately, in time or location, from the programs or services funded under HOPWA and participation must be voluntary for program participants. II. Additional Assurances A. Sub-grantee will give the Virginia Department of Housing and Community Development, the Comptroller, HUD and any other authorized state or federal representatives access to and the right to examine all records, books, papers, or documents related to the Grant. B. In accordance with federal law, sub-grantee will provide that no person shall be discriminated against on the basis of race, color, religion, sex, or national origin, in any phases of employment or in any phase of service delivery. III. Additional Certifications: The Sub-grantee certifies that it will comply with the following: (a) Freedom of Information Act (5 U.S.C 552), Virginia Freedom of Information Act; (b) Virginia Fair Employment Contracting Act; (c) Fair Housing Act (42 U.S.C. 3601-20), and implementing measures under: - 24 CFR 100 (discriminatory conduct under Fair Housing Act); - Executive Order 11063 and regulations at 24 CFR 107 (preventing discrimination on basis of race, color, creed, or national origin); - 24 CFR Part 8 (prohibiting discrimination against handicapped individuals); - Title VIII of Civil Rights Act of 1968 as amended (prohibiting discrimination based on race, color, national origin, religion, sex, familial status [including children under the age of 18 living with parents or legal custodians, pregnant women, and people securing custody of children under the age of 18], and disability); (d) Age Discrimination Act of 1975 (42 U.S.C. 6101-07) and implementing: - 24 CFR 146 (nondiscrimination on basis of age in HUD programs); - Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794); (e) 24 CFR 574.320 (Federal rent standards for rental assistance, requiring rents to be charged no greater than appropriate Fair Market Rent levels); 2021-2023 HOPWA Grant Agreement 6 of 7 (a) 24 CFR Part 35 (Federal lead-based paint provisions, requiring visual inspections and stabilization of paint before commencement of occupancy); (b) Adhere to Executive Orders 11625, 12432, and 12138, that the Sub-grantee must make efforts to encourage participation of minority and women-owned business enterprises in connection with funded activities; - Encourage participation of locally-owned enterprises in connection with funded activities; (c) Assist in carrying out 24 CFR 58 and 58.5 (National Environmental Policy Act [NEPA] of 1069 and other provisions of federal law) (d) McKinney-Vento Homeless Assistance Program Regulations; (e) Anti-lobbying Certification; (f) Drug Free Workplace. The Grant Agreement is hereby executed by the parties on the date set forth below their respective signatures as follows: Virginia Department of Housing and Community Development Pamela G. Kestner, Acting Deputy Director 07/01/2021 Date City of Charlottesville Signature Misty Graves Name (printed or typed) Interim Director - Dept. of Human Services Title 08/19/21 Date 2021-2023 HOPWA Grant Agreement 7 of 7