§ 8403. Continuum of Care Allocation.
25 CA ADC § 8403BARCLAYS OFFICIAL CALIFORNIA CODE OF REGULATIONS
Barclays Official California Code of Regulations Currentness
Title 25. Housing and Community Development
Division 1. Housing and Community Development
Chapter 7. Department of Housing and Community Development Programs
Subchapter 20. Federal Emergency Shelter Grants Program
25 CCR § 8403
§ 8403. Continuum of Care Allocation.
NOTE: See Executive Order N-66-20 (2019 CA EO 66-20), issued in response to the COVID-19 pandemic, relating to procedures and conditions for the allocation of funds pursuant to Public Law 116-136.
(a) Funding for a Service Area in the Continuum of Care Allocation shall be administered by an approved Administrative Entity in the Service Area in which it is located pursuant to the requirements of this subdivision.
(1) Notwithstanding the location requirement in subdivision (a) above, an approved Administrative Entity shall also be eligible to administer funds for geographically contiguous Continuums of Care that are eligible to receive funds under the Balance of State Allocation and that agree to administration of their allocation by the Administrative Entity. One hundred percent of both allocations shall be used for Rapid Rehousing activities pursuant to the requirements of sections 8408 and 8409.
(2) In the absence of an approved Administrative Entity for a Service Area otherwise eligible under the Continuum of Care Allocation, a Continuum of Care may recommend a provider to apply for Rapid Rehousing activities
(A) In making this recommendation, the Continuum of Care shall use a process which is
1. Fair and open and avoids conflicts of interest in project selection, implementation, and the administration of funds;
2. Considers selection criteria reasonably consistent with the criteria used by the Department in section 8407;
3. Complies with the requirements of sections 8408 and 8409;
4. Incorporates reasonable performance standards as set forth in the Action Plan based on HUD requirements and guidance. If the applicant has not implemented the proposed activity or similar activity within the past three years, the Continuum of Care shall work with the funded applicant to ensure it meets reasonable performance standards specified in the Action Plan in the contract year.
5. Complies with federal ESG requirements
6. Considers any other practices promoted or required by HUD.
(B) If recommending a Private nonprofit organization for these funds, the nonprofit organization must submit a Certification of Local Government Approval to undertake ESG-funded activities from each Unit of Local Government where the activity is carried out pursuant to section 414 [42 U.S.C. section 11373(c)];
(C) Documentation of matching contributions must be maintained pursuant to the requirements of 24 CFR 576.201.
(D) The Department may request information from the Continuum of Care or Subrecipient which demonstrates compliance with the above requirements, and the Continuum of Care or Subrecipient shall provide such information.
(E) The provider shall enter into a Standard Agreement with the Department for Rapid Re-housing funds awarded pursuant to Subdivision (a) (2) above;
(F) The Action Plan will propose minimum and maximum percentages of a Service Area allocation that shall be designated for a Rapid Rehousing application.
(b) The Department will use the formula in section 8402 to reallocate any remaining funds that have not been conditionally reserved or allocated pursuant to the requirements of subdivision (a) to participating Service Areas in the Continuum of Care and Balance of State Allocations.
(c) The Department will evaluate applications from Units of general purpose local government in ESG Entitlement Areas recommended by Continuums of Care to determine eligibility and approve the designation of qualified Administrative Entities on a bi-annual basis.
(1) The application must demonstrate eligibility of the Continuum of Care and Administrative Entity pursuant to the requirements of this section and describe the collaboration among the two entities and the process for allocating funds to activities, and selecting providers.
(A) If proposing to also administer funds in a geographically contiguous Continuum of Care Service Area pursuant to subdivision (a) (1) above, the application shall also include evidence of agreement between geographically contiguous Continuums of Care to administer Rapid Re-Housing with 100 percent of both allocations.
(B) Applications from a continuing Administrative Entity shall include HMIS project-level and system-level performance data for the prior two years. After the initial award period, this data will be set forth in the State's Action Plan for the prior fiscal year. If performance remains in the lowest quartile compared to all participating Service Areas in the Continuum of Care allocation, the Department will work collaboratively with the Administrative Entity to develop performance improvement plans which will be incorporated into the written agreements required under subdivisions (f) and (j).
(d) To be eligible to participate in the Continuum of Care Allocation, the Service Area shall have an Eligible Continuum of Care that meets all of the following criteria:
(1) It has received Continuum of Care funding from HUD in at least one of the past two federal competitions or has registered with HUD to apply for funding in the next competition;
(2) It has conflict of interest policies in place that meet HUD requirements;
(3) It has adopted Written Standards for all Eligible activities proposed to be carried out with ESG funds; and
(4) It operates, or causes to be operated, an HMIS system that meets HUD requirements.
(e) To be eligible to participate in the Continuum of Care Allocation, the Continuum of Care shall recommend an Administrative Entity that meets the following criteria set forth in subsections (1) through (3) below. Where there is more than one eligible ESG Entitlement in a Continuum of Care Service Area willing to perform the functions of an Administrative Entity the Continuum of Care shall recommend a single Administrative Entity for approval by the Department.
(1) Is a Unit of general purpose local government that has administered ESG funds for an Entitlement Area during at least one of the past five years. Where a city is the only unit of general purpose local government that has administered ESG funds for the Entitlement Area within the Continuum of Care Service Area, the Administrative Entity may be a county agency with experience administering another federal homelessness, housing, community development, or human services program in at least one of the past five years;
(2) Has no unresolved ESG monitoring findings with HUD or the Department that the Department determines poses a substantial risk to the Department if the Administrative Entity is approved; and
(3) Demonstrates the ability and willingness to perform the functions of an Administrative Entity pursuant to federal and State ESG requirements.
(f) The Continuum of Care and the Administrative Entity shall enter into a written agreement that specifies the roles and responsibilities of each entity to ensure compliance with federal and State ESG requirements. The Continuum of Care and the Administrative Entity shall collaborate in determining Eligible activities, selecting providers, and administering the ESG funds.
(g) The Administrative Entity shall select providers qualified to deliver Eligible activities in the Service Area through a process that is consistent with (1) through (8) below, and inform the Department of selected providers and activities. The Administrative Entity shall:
(1) Conduct fair and open competitions which avoid conflict of interest;
(2) Follow procurement requirements of 24 CFR Part 84;
(3) Evaluate provider capacity and experience, including the ability to deliver services in Nonentitlement areas;
(4) Evaluate eligibility and quality of services, including adherence to Core Practices pursuant to section 8409;
(5) Utilize data and consider community input to identify unmet needs;
(6) Prioritize activities that address the highest unmet need, considering other available funding and system-wide performance measures;
(7) Consider project-level performance measures when evaluating proposals; and
(8) Collaborate with the Continuum of Care pursuant to subdivision (f) above.
(h) The Action Plan will set forth proposed limits on any or all of the following: the number or type of contracts, subcontracts, or activities per contract between the Administrative Entity and the Subrecipient of the Administrative Entity.
(i) The Administrative Entity shall ensure that:
(1) Not including the funding administered for a geographically contiguous Continuum of Care Service Area pursuant to subdivision (a)(1) above, not less than 40 percent of the funds awarded on an annual basis shall be used for Rapid Re-Housing activities; and
(2) Through the use of Coordinated Entry and other means, all funded activities are available to Nonentitlement areas of the Service Area consistent with section 414 [42 U.S.C. section 11373(c)].
(A) The Administrative Entity shall facilitate outreach and access to reach populations in the Nonentitlement areas and shall evaluate participation from these areas at least annually. The Department may condition future funding to ensure access to funded activities by Nonentitlement areas.
(B) Funded activities may also serve households located in ESG Entitlement Areas.
(j) In accordance with section 8411, the Administrative Entity shall enter into a Standard Agreement with the Department to do the following:
(1) Receive and administer up to two allocations of annual federal ESG funding per application cycle, conditioned on availability of federal funds;
(2) Carry out identified Eligible activities through selected providers;
(3) Provide for matching funds as required by 24 CFR 576.201;
(4) Enter into a written agreement with providers of funded activities governing the implementation of activities, including but not limited to eligible use of funds, funds disbursement, activity reporting, performance evaluation, monitoring, and termination;
(5) Monitor the performance of all contractors, including selected providers, and those they subcontract with to carry out ESG-eligible activities, to ensure compliance with federal and State ESG requirements;
(6) Provide timely reports to the Department; and
(7) In all other ways administer ESG funding to ensure compliance with federal and State ESG requirements, and the Standard Agreement.
(k) The Department may deny or revoke the designation of an approved Administrative Entity under any of the following circumstances:
(1) The Administrative Entity or one or more of the Subrecipients of the Administrative Entity has engaged in, or is responsible for violations of federal or State ESG requirements;
(2) The Administrative Entity fails to utilize project-level or system-wide performance data in its project selection, renewal, or monitoring process; or
(3) The Administrative Entity or the Service Areas for which it has been approved does not meet the requirements of this section.
(l) The Department may request information from the Administrative Entity or the Continuum of Care, which demonstrates compliance with any or all of the above requirements. The Administrative Entity or Continuum of Care shall provide such information when requested.
Note: Authority cited: Section 50406(n), Health and Safety Code. Reference: 24 C.F.R. Section 91.320 and 24 C.F.R. 576.400.
1. New section filed 7-14-2004; operative 8-13-2004 (Register 2004, No. 29).
2. Amendment of section heading, repealer and new section and amendment of Note filed 2-25-2016; operative 4-1-2016 (Register 2016, No. 9).
3. Governor Newsom issued Executive Order N-66-20 (2019 CA EO 66-20), dated May 29, 2020, relating to procedures and conditions for the allocation of funds pursuant to Public Law 116-136, due to the COVID-19 pandemic.
This database is current through 10/9/20 Register 2020, No. 41
25 CCR § 8403, 25 CA ADC § 8403
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