CCLME.ORG - DIVISION 1. HOUSING AND COMMUNITY DEVELOPMENT

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(5) For rotating shelter programs, site control may include other evidence provided by the applicant granting permission to use the site(s). Such evidence must be submitted by the applicant and approved by the Department prior to the deadline for submission of the State FESG application stated in the applicable NOFA.
"Southern California Allocation Region" means the counties of San Luis Obispo, Kern, and San Bernardino as well as each county in the State to the south of San Luis Obispo, Kern and San Bernardino counties with an individual county population of 200,000 or more, and that have within their individual county boundaries one or more Eligible cities.
"State recipient" is the recipient of a Grant that enters into a Standard Agreement with the Department to provide specified Eligible activities.
"Subgrantee" means a Private nonprofit organization or Unit of general local government located in or serving an Eligible City or county that receives FESG funds through a subcontract it has with a Unit of general local government or other Private nonprofit organization that receives FESG funds from the Department.
"Standard Agreement" means the contract entered into by the Department and the FESG awardee setting forth the basic terms and conditions governing the award of FESG funds.
"Subrecipient" is defined at 24 C.F.R. section 84.2
"Temporary Housing" see section 8408 concerning vouchers.
"Transitional housing" means housing with supportive services that is limited to occupancy of up to 24 months that is exclusively designated and targeted for recently homeless persons. Transitional housing includes self-sufficiency development services, with the ultimate goal of moving recently homeless persons to permanent housing as quickly as possible. Transitional housing can include housing that becomes permanent housing with supportive services at the end of the Standard Agreement.
"Urban County" is defined at 42 U.S.C. 5302(a)(6).
"Very-low income" means a combined household income not to exceed 50% of the Area Median Income, adjusted for household size.

Note: Authority cited: Section 50406(n), Health and Safety Code. Reference: 42 U.S.C. 5302; 42 U.S.C. 11371; 42 U.S.C. 11373; and 24 C.F.R. 576.3.

s 8402. Allocation of Funds.
(a) The Department shall take 4% of the State's annual allocation of FESG funds for Grant administration.
(b) Depending on the applications received, up to 5% of the annual FESG allocation shall be available to New Programs in Eligible cities and counties operated by Private nonprofit organizations and Units of general local government.
(1) To receive an award of FESG funds for a New Program, FESG funds must be used for an FESG-eligible housing or service activity that has been operating for less than two years from the date of the applicable NOFA and;
(2) The organization applying for the FESG funds must not have received either state FESG or EHAP funds in the previous two funding rounds.
(c) The remaining (91%) of the annual FESG allocation shall be divided between three regional and one general allocation on a competitive basis in accordance with the following.
(1) Programs in the Northern California Allocation Region shall receive approximately 33% of the annual FESG allocation. The product derived by applying the 33% multiplier shall be rounded to a dollar amount.
(2) Programs in the Southern California Allocation Region shall receive approximately 24% of the annual FESG allocation. The product derived by applying the 24% multiplier shall be rounded to a dollar amount.
(3) Programs in the Rural County Allocation Region shall receive approximately 19% of the annual FESG allocation. The product derived by applying the 19% multiplier shall be rounded to a dollar amount.

(4) The remaining 15% as well as any unawarded FESG funds from the above regional and New Program set-asides shall be considered the general allocation, and shall be awarded on a competitive basis to any remaining unfunded Eligible applications for Eligible activities in the order of their competitive statewide ranking until all FESG funds have been awarded subject to the requirements of section 8402. subdivisions (d) and (e) below and section 8411 subdivisions (f), (g) and (h) below.
(d) The Department shall specify in annual NOFAs, whether it will be accepting applications for one or two-year Grants or both.
(e) The Department shall specify in annual NOFAs the minimum and maximum Grant amounts per application. For one-year grants, the maximum grant amount per application shall not exceed 2% of the available annual State FESG allocation and shall be rounded to the nearest thousandth dollar. For two-year grants, the maximum grant amount per application shall not exceed 4% of the available annual State FESG allocation and shall be rounded to the nearest thousandth dollar.

Note: Authority cited: Section 50406(n), Health and Safety Code. Reference: 24 C.F.R. Section 576.25.

s 8403. Notices of Funding Availability.
(a) A statewide NOFA is a document issued by the Department which notifies all interested persons of the following:
(1) That the FESG program has been allocated funds or expects to be allocated funds;
(2) The types and amounts of funds available to Eligible organizations located in or serving Eligible cities or Eligible counties for specified Eligible activities;

(3) That the FESG funds will be distributed to Eligible organizations through a competitive process;
(4) Whether one-year Grants, two-year Grants, or both will be accepted;
(5) The specified minimum and maximum Grant amount(s);
(6) The specified timeframes that apply to the application and Grant selection processes, including the deadline for filing of applications;
(7) That copies of the FESG governing statute and regulations can be obtained from a contact person whose name, address, telephone number, and electronic mail address are provided;
(8) Identification of the Eligible Cities and Eligible counties for which the Department shall accept applications for Grant awards pursuant to these regulations.
(9) The electronic mail address, street address, telephone number, and facsimile number of a contact person within the Department who can provide further information, and the application package; and
(10) The Grant selection criteria described in section 8411 below.

Note: Authority cited: Section 50406(n), Health and Safety Code. Reference: 24 C.F.R. Section 576.25.

s 8404. Eligible Organizations.
(a) Only Eligible organizations submitting applications to provide Eligible activities will be considered for funding
(b) Except for applicants that apply as a New Program pursuant to Section 8402, as of the publication date of the Statewide NOFA, an applicant or State recipient shall have provided Client housing continuously each day throughout the prior twelve months or, for winter-only or summer-only shelter providers, each day throughout the region's prior winter or summer shelter season.
(c) An applicant or State recipient shall not provide Client housing in a manner which illegally discriminates in violation of applicable state and federal laws. Housing provided to selected subpopulations of homeless persons shall not be considered a form of arbitrary discrimination if:
(1) A state or federal law or regulation requires an FESG-funded facility to exclusively serve a select homeless subpopulation; or
(2) The nature of the physical facilities or the nature of the services provided reasonably necessitates restriction of the housing to a selected subpopulation consistent with federal and state fair housing law.

Note: Authority cited: Section 50406(n), Health and Safety Code. Reference: 24 C.F.R. Section 576.25; Sections 11135 and 12955 et seq., Government Code; Section 51 et seq., Civil Code;Harris v. Capital Growth Investors XIV (1991) 52 Cal.3d 1142, 278 Cal.Rptr. 614; and 42 U.S.C. 3601 et seq.

s 8405. Eligible Applications.
(a) Eligible applications must:
(1) Be received by the deadline stated in the applicable NOFA;
(2) Be submitted to the address noted in the applicable NOFA;
(3) Be complete, subject to the requirements of subsections (b) and (c); and
(4) Contain a certification by the applicant that all information within the application is true, complete, and accurate.
(b) A complete application shall consist of the following:
(1) An authorizing resolution by the applicant's Governing Board;
(2) For applications requesting funds for Emergency shelter or Transitional housing, evidence of site control;
(3) Pursuant to 42 U.S.C. section 11373(c), Private nonprofit organizations must obtain a Certification of Local Government Approval to undertake all FESG-funded activities;
(A) Private nonprofit organizations whose Client housing is provided in an Eligible City must obtain a Certification of Local Approval from that City to carry out all FESG activities;
(B) Private nonprofit organizations whose Client housing is provided in an unincorporated area of a Eligible county must obtain a Certification of Local Government Approval from that Eligible county to carry out all FESG activities;

(4) Documentation of satisfactory match pursuant to the requirements of Section 8410;
(5) A fully completed application accompanied by all applicable attachments, certifications, and any additional information requested in the applicable NOFA; and
(6) Any other information the Department or HUD requires to determine the eligibility of the applicant and the proposed activities, to evaluate or rate and rank the application, or to confirm that the applicant is capable of successfully completing all activities.
(7) A response to all of the Grant selection criteria as set forth in Section 8411.
(c) The State reserves the right to request clarification of unclear or ambiguous statements made in the application and other supporting documents where doing so will not impact the neutral evaluation of the application.
(d) The Department may request that an applicant revise application documents as necessary to establish threshold compliance as long as such revisions do not alter competitive scoring. This includes, but is not limited to, adjustments made to the amount of funding requested in order to conform to the monetary funding limits prescribed by 42 U.S.C. section 11374, 24 C.F.R. section 576.21, and section 8406 of these regulations.
(e) Notwithstanding any other provision of this section, in instances where an application ranks high enough to be funded but there is information missing from the application, the Department may request submission of information that was omitted from the application if such information existed prior to the application deadline, and the submission of information is necessary for application completeness but does not alter competitive scoring. This may include information such as evidence of an applicant's status as a unit of general local government or as a private nonprofit organization.
(f) All or a portion of an application can be denied because:
(1) The State is unable to reasonably determine what the applicant is proposing.
(2) The application is incomplete.

(3) The applicant or the proposed activities are determined to be ineligible.

Note: Authority cited: Section 50406(n), Health and Safety Code. Reference: 42 U.S.C. Sections 11373-11375; 24 C.F.R. Sections 576.21 and 576.25.

s 8406. General Program Requirements.
(a) FESG funds shall only be used for Eligible activities that comply with the following.
(1) FESG funds shall be used for any of the eligible uses of funds as set forth in 42 U.S.C. section 11374 and 24 C.F.R. section 576.21 subject to the following general FESG requirements. Definitions of pertinent terms are also included in 24 C.F.R. section 576.3 and 42 U.S.C. section 11371.
(A) The maximum time period in which all FESG funds must be spent shall be 24 months.
(B) Up to 1% of an FESG Grant may be used for costs associated with Grant administration.
(C) The 10% limitation on staff costs set forth in 24 C.F.R. section 576.21(a)(3) applies only to supervisory staff costs within the Operations funding category.
(D) FESG funds used for Major rehabilitation and Conversion activities are subject to the continued use requirements of 42 U.S.C. section 11375(c)(1)(A).
(E) FESG funds used for Rehabilitation activities are subject to the continued use requirements of 42 U.S.C. section 11375(c)(1)(B).
(F) FESG funds used for Essential services, maintenance, operations, insurance, utilities, and furnishings are subject to the continued use requirements of 42 U.S.C. section 11375(c)(1)(C).
(G) An applicant or a State recipient providing Client housing shall establish rules for Client participation which shall:
1. Include a statement of the maximum consecutive number of days during which a Client is eligible to participate in the Client housing;
2. Include a description of the program's disability-related policies, including the process for a Client to request a reasonable accommodation to a program policy, practice, or requirement because of the Client's disability or perceived disability, and the process for a Client to file a disability related grievance.
3. Include the policy for termination from the Client housing, and the process for Client appeal of that termination;
4. Be conspicuously posted at the housing facility, or given to recipients of Homeless Prevention funds, where applicable.
(H) An applicant or a State recipient providing Client housing shall have a process for program evaluation.
(I) Notwithstanding the provisions of Section 8406 subdivision (b)(l)(B), a State recipient may accept payment vouchers provided through any other public or private program for Clients in Emergency shelters so long as no shelter beds are reserved beyond sundown for that purpose.
(J) An applicant proposing to provide, or a State recipient providing, Transitional housing, may charge rent only if a minimum of ten percent of all rent collected for each Client is reserved to assist that Client in moving to permanent housing subject to the following:
1. The reserve of rent for each Client must be accounted for separately;
2. If rent reserved for a Client remains unused due to the absence of the Client for a year or more, the monies shall be used to assist another Client in moving to permanent housing; and
3. the rent and any service fees charged are limited to an ability-to-pay formula reasonably consistent with the United States Department of Housing and Urban Development's requirements for subsidized housing for low-income persons.
4. An applicant or State recipient can request from the Department a waiver of the 10% requirement set forth above where the applicant or State recipient has demonstrated to the Department's satisfaction that its program is funded to provide assistance to all Clients when they move to permanent housing, and that this assistance is funded from sources other than State FESG funds. This assistance can include such things as: assistance with security deposit, first/last month's rent, or household items. Such individual assistance provided to a Client must equal at least 10% of all the rent collected from that Client.
(K) An applicant proposing to provide, or a State recipient providing Transitional housing, shall demonstrate that the housing meets all of the following tests:
1. Occupancy is limited to a maximum of two years;
2. Every Client is offered at least three types of self-sufficiency development services such as job counseling or instruction, personal budgeting or home economics instruction, tenant skills instruction, landlord/tenant law, victim's rights counseling, or apartment search skills instruction;
3. Every Client is required to participate in at least one self-sufficiency development service offered by the Client housing provider as a condition of receiving Client housing;
4. Pursuant to section 8406 subdivision (a)(1)(J), accumulated rent reserve funds from Clients are applied to first and last-months rent and/or a security deposit for permanent housing; and
5. Every Client is provided referrals to permanent housing.
(L) Pursuant to 24 C.F.R. 576.21(a)(3), in-house telephone use by Clients of an Emergency shelter or Transitional housing facility is an eligible operations expense.
(M) Use of FESG funds for Homeless prevention activities must meet the requirements of Section 8407.
(N) Use of FESG funds to lease or rent rooms with vouchers must meet the requirements of Section 8408.
(O) Use of FESG funds for Renovation, Major rehabilitation, or Conversion must meet the requirements of Section 8409.
(b) FESG funds shall not be used for facilities or activities that do not comply with the following.
(1) FESG funds shall not be used for costs associated with activities in violation of any law, or for the following:
(A) The purchase of radios, televisions, and other appliances or equipment for recreational purposes;
(B) Facilities in which occupancy fees are charged to Clients of Emergency shelters;
(C) Off-site costs, special requirements, assessments, or anything more than is directly necessary for the development of Emergency shelter or Transitional housing;
(D) On-site improvements or other expenses beyond those directly necessary for the development or operation of Emergency shelter or Transitional housing (e.g., retaining walls, fencing, storage sheds, shade structures, playground equipment, parking lots, and landscaping);

(E) Temporary Housing for minor children separated from their families due to a court order or an administrative order;
(F) Acquisition
(G) New construction activities;
(H) Predevelopment activities;
(I) Property clearance or demolition;
(J) Services to persons who are not homeless, except when providing Homeless prevention activities in accordance with Section 8407;
(K) Telephone Hotline costs;
(L) Staff recruitment or training;
(M) Costs associated with advocacy, planning, or fundraising;
(N) Administrative costs not permitted under Section 8406(a)(1)(B) and Section 8406(a)(1)(C);
(O) Activities determined by the Department to be an ineligible, inefficient, or ineffective use of Grant funds as stated in the applicable NOFA.
(2) An applicant or a State recipient shall not require, as a condition of Client housing, participation by Clients in any religious or philosophical ritual, service, meeting, or rite.
(3) Any buildings for which FESG funds are used for Conversion, Major rehabilitation, or Renovation must meet the requirements of 24 C.F.R. section 576.55, including required compliance with local government safety and sanitation standards.
(4) An applicant or a State recipient shall not provide Client housing in a structure which contains any of the conditions of a substandard building listed in section 17920.3 of the Health and Safety Code, and shall comply with all applicable State and local construction, maintenance, and occupancy standards.
(5) An applicant or a State recipient providing Emergency shelter to Clients shall not:

(A) Condition the provision of Emergency shelter on the receipt of public or private payment vouchers or cash payment from the Client; or
(B) Deny shelter or services to any Client due to the inability to pay.

Note: Authority cited: Section 50406(n), Health and Safety Code. Reference: 42 U.S.C. Section 11371; 42 U.S.C. Sections 11374-11375; 24 C.F.R. Sections 576.3, 576.21, 576.23, 576.35, 576.55 and 576.61; and Section 17920.3, Health and Safety Code.

s 8407. Homeless Prevention Activities.
(a) Use of FESG funds for Homeless prevention activities must meet the requirements of 42 U.S.C. 11374(a)(4) and 24 C.F.R. 576.21(a)(4).
(b) Pursuant to 42 U.S.C. section 11374, not more than 30% of the annual State FESG allocation may be used for Homeless prevention activities.
(c) The following additional requirements apply to the use of FESG funds to provide Residential Rental Assistance.

(1) The payment of rent in arrears shall not exceed one month's rent plus a reasonable late charge. FESG funds shall be used only if:
(A) The Client is unable to pay the rent in arrears due to a sudden reduction in income, and has received an eviction notice;
(B) No other resources or assistance are available to pay the rent in arrears;
(C) The Client has not received more than one payment for rent arrears for the past two years from any other source; and
(D) There is a reasonable prospect that the Client will be able to resume rent payments on their own within a reasonable period of time.
(2) The payment of initial rent shall consist of no more than the first month's rent or the last month's rent, or both if required as a condition of occupancy of permanent housing. FESG funds shall be used only if:
(A) No other resources or assistance are available to pay the initial rent;
(B) The Client has not received more than one payment of initial rent in the immediate past two years from any other source; and
(C) There is a reasonable prospect that the Client will be able to make rent payments on their own within a reasonable period of time.
(3) FESG funds to be used for Residential Rental Assistance shall be accounted for separately.
(4) Consistent with the requirements in 24 C.F.R. 576.63, and 24 C.F.R. Parts 84, and 85, interest earned on FESG funds set aside for rental assistance shall be returned to the Department for return to HUD.
(5) Prior to providing Residential Rental Assistance, the State recipient shall verify that:
(A) The Client is eligible to participate in the program and has income sufficient to pay the monthly rent once the Residential Rental Assistance terminates; and
(B) An appropriately sized and priced rental unit is available and suitable for occupancy by the Client.

(6) The Client shall not have direct use of FESG funds. FESG funds shall be distributed directly from the State recipient or Subgrantee to the landlord for the benefit of the Client.
(7) A State recipient providing Residential Rental Assistance shall do all of the following:
(A) make determinations regarding the eligibility of Clients based upon a written application from the Client in order to determine the Client's need for the assistance, and the Client's ability to remain permanently housed once the assistance is provided;
(B) provide information to Clients regarding the landlord-tenant relationship, the appropriate treatment of rental property, appropriate behavior within the neighborhood, the importance of timely rental payments; and
(C) provide staff that shall be reasonably available to landlords and tenants to answer questions or complaints about Residential Rental Assistance.
(d) The following additional requirements apply to the use of FESG funds to provide utility assistance:
(1) A State recipient providing utility assistance shall make determinations regarding the eligibility of Clients based upon a written application from the Client in order to determine the Client's need for the assistance, and the Client's ability to remain permanently housed once the assistance is provided
(2) The payment of utility assistance shall not exceed three months past due utility payments plus a reasonable late charge. FESG funds shall be used only if:
(A) The Client is unable to pay the utility costs in arrears due to a sudden reduction in income and has received a notice of termination of utility services;
(B) No other resources or assistance are available to pay the utility costs in arrears;
(C) The Client has not received more than one payment of utility assistance in the immediate past two years from any other source; and

(D) There is a reasonable prospect that the Client will be able to make utility payments on their own within a reasonable period of time.
(3) FESG funds to be used for utility assistance shall be accounted for separately.
(4) Consistent with the requirements in 24 C.F.R. 576.63, and 24 C.F.R. Parts 84, and 85, interest earned on FESG funds set aside for utility assistance shall be returned to the Department for return to HUD.
(5) The Client shall not have direct use of FESG funds. FESG funds shall be distributed directly from the State recipient or Subgrantee to the utility company for the benefit of the Client.
(e) State recipients may use FESG funds to provide up to three months of initial rent and/or utility assistance to individuals whose income does not exceed 50% of the Area Median Income and who are discharged from publicly funded institutions or systems of care, such as health care facilities, foster care facilities, other youth facilities, or corrections programs and institutions.

Note: Authority cited: Section 50406(n), Health and Safety Code. Reference: 42 U.S.C. Section 11374; 24 C.F.R. Parts 84 and 85; and 24 C.F.R. Sections 576.21 and 576.63.

s 8408. Leasing or Renting Rooms with Vouchers.
The following requirements apply to the use of FESG funds to provide vouchers to lease or rent Temporary Housing for Clients.
(a) Eligible Temporary Housing includes apartments, motel rooms, hotel rooms, rental rooms in single-room occupancy housing, single-family homes, and manufactured housing.
(b) Vouchers for Temporary Housing may also be used to pay rental fees for spaces at a Special occupancy park which is defined by section 18862.43 of the Health and Safety Code as a recreational vehicle park, temporary recreational vehicle park, incidental camping area, or tent camp.
(c) Payment of rent must be at a rate that is reasonable based on local market conditions. Rent charged to voucher holders shall not exceed market rent for comparably sized units or spaces.
(d) Vouchers must only be used for Temporary Housing located in an Eligible City that is in the county in which the FESG funds have been awarded, or in an unincorporated area of the Eligible county in which the funds have been awarded.
(e) Temporary housing financed with vouchers is limited to occupancy of six months or less by a homeless person or household.

Note: Authority cited: Section 50406(n), Health and Safety Code. Reference: Section 18216.1, Health and Safety Code; and 24 C.F.R. Section 576.21.

s 8409. Renovation, Conversion, and Major Rehabilitation.
(a) Grants for Renovation, Conversion or Major rehabilitation activities pursuant to 24 C.F.R. 576.21(a)(1) cannot exceed the amount specified in the applicable NOFA.
(b) Eligible costs for Renovation, Conversion, and Major rehabilitation include, but are not limited to, costs for local government fees, and materials and labor costs.
(c) Costs set forth under Section 8406(b) are ineligible.
(d) FESG funds for Renovation, Conversion, or Major rehabilitation activities shall be in the form of a forgivable deferred loan.
(e) The term of a Renovation, Conversion, or Major rehabilitation Standard Agreement is 24 months from the effective date of the contract.
(f) A Renovation, Conversion, or Major rehabilitation project shall be deemed feasible when an evaluation by the Department demonstrates all of the following.
(1) The project's legal status, finances, projected cash flow, technical feasibility, and the accuracy of the project's construction schedule demonstrate the probability of successful completion of the project.
(2) The project's design and materials and the proposed labor needs and costs demonstrate that the project excludes non-essential materials or a luxury design.
(3) The applicant's site control demonstrates that the project will be completed and operated without jeopardizing the Department's security interest for at least the applicable period of continued use pursuant to 42 U.S.C. 11375(c).
(4) The proposed construction schedule corresponds with the scope of the project and demonstrates that the construction shall be completed within the term of the Standard Agreement.
(5) The development team proposed for the project has the experience and ability to efficiently and successfully complete and operate the project as proposed.

Note: Authority cited: Section 50406(n), Health and Safety Code. Reference: 42 U.S.C. Section 11375; 24 C.F.R. Sections 576.21 and 576.35.

s 8410. Match Requirements.
(a) Pursuant to 42 U.S.C. 11375, the Department will provide HUD with annual documentation of the sources and amounts of matching funds required of the Department as a recipient of ESG funds.
(b) Pursuant to subdivision (a), the Department may satisfy HUD's matching requirement, by submitting documentation to HUD of available State funding for the homeless.
(c) Pursuant to subdivision (a), the Department will set forth in the applicable FESG NOFA any requirement of FESG applicants to provide documentation of matching funds.

Note: Authority cited: Section 50406(n), Health and Safety Code. Reference: 42 U.S.C. Section 11375.

s 8411. Grant Selection Process.
(a) A Grant selection process shall involve eligible and complete applications received by the Department in response to the applicable NOFA.
(b) Each of the following criteria is Grant selection criteria that shall be included in the statewide NOFA. For applications requesting funds for multiple programs, each program will receive a separate score for each rating factor, and the point scores will be averaged to calculate a final point score for each rating factor.

(1) Applicant Capability 300 points
The applicant's capability of achieving the activities and results proposed in the application will be evaluated based on the rating factors listed in this section. Each rating factor will correspond to specific application questions. The total number of points available for each rating factor is also listed. The point scores awarded to each application for each application question will depend on the relative merit of the individual answer to each question.
(A) The number of years the applicant has been providing housing and services for the homeless; 30 points
(B) Whether the applicant has experience operating the proposed program, or a program similar to the proposed program; 30 points
(C) The process utilized by the organization to evaluate the program. Points will be awarded for this factor based on the frequency of evaluation, the degree of involvement of Clients and staff in the evaluation process, and the impact of the evaluation process on the program. Applicants that provide supporting documentation of their evaluation process and outcomes will receive more points for this rating factor. 30 points

(D) The applicant's experience administering other federal housing grants including, but not limited to, other FESG Grants; 30 points
(E) The relative number of years of experience working in the program or other related experience as determined by the Department possessed by the key staff of the program, (executive director, manager/supervisor, counselors/case managers). The total number of years of experience of key staff will be divided by the total number of key staff to calculate the relative number of years of experience. Related experience outside of the program must be described in order for the Department to consider awarding points for related experience. 60 points
(F) The proposed ratio of staff to Clients. Applicants with a higher staff to Client ratio will receive more points for this rating factor. 60 points
(G) Whether the applicant has any unresolved monitoring findings or concerns from FESG Grants awarded in no more than the previous four years; 20 points
(H) Whether the applicant has submitted required reports in a timely manner for FESG Grants awarded in no more than the previous four years; 20 points

(I) Whether the applicant has obligated and expended funds in a timely manner for FESG Grants awarded in no more than the previous four years. 20 points
(2) Need for Funds - 100 points
The need for FESG funds will be evaluated based on the rating factors listed in this section. Each rating factor will correspond to specific application questions. The total number of points available for each rating factor is also listed. The point scores awarded to each application for each application question will depend on the relative merit of the individual answer to each question
(A) The applicant's need for FESG funds when comparing the percentage of FESG funds to other sources of funding in the applicant's proposed program budget. Applicants with the highest percentage of FESG funds compared to other sources of funding in the proposed program budget will receive more points for this rating factor. 50 points
(B) Depending on the type of Client housing proposed for funding, the relative level of need for that housing type. Applicants whose Client housing type addresses higher needs as certified by a county-wide coordinating body or agency of county government specifically dealing with the issue of homelessness will receive more points for this rating factor. The certifying entity must also meet the conflict of interest provisions set forth in 24 C.F.R. 576.57(d). The Department may specify in the NOFA what local entities may be certifying entities. 50 points
(3) Impact and Effectiveness of the Client Housing - 250 points
The impact and effectiveness of the Client housing provided and proposed to be provided by the applicant will be evaluated based on the rating factors listed in this section. Each rating factor will correspond to specific application questions. The total number of points available for each rating factor is also listed. The point scores awarded to each application for each application question will depend on the relative merit of the individual answer to each question. For subsection (b)(3)(B) through subsection (b)(3)(E), the Department may require applicants to submit documentation to verify the accuracy of their placement rates.
(A) The number of services offered to homeless persons by the program, including services offered through direct referral of program Clients to other agencies that provide services not directly available through the program, and the accessibility of these services. Accessibility of services means transportation to off-site services based on the needs of the individual Client, accommodations for Clients with disabilities, and services that address the linguistic needs of the Clients. Applicants must also explain how they will provide Client access to services when barriers to accessibility as set forth in this subdivision do exist. Applications that demonstrate the accessibility of program services as set forth in this subdivision will receive more points than applications that do not demonstrate service accessibility. To receive points for services offered through direct referral of program Clients to other agencies, applicants must provide documentation substantiating an arrangement between the program and the other agencies to provide services to program Clients. 60 points
(B) In the last twelve months, the percentage of Clients who have exited the program and moved into permanent, transitional, or emergency housing, (overall placement rate).
For this rating factor, Homeless prevention programs will be compared with one another, Transitional housing programs will be compared with one another, overnight Emergency shelter programs will be compared with one another, Temporary Housing voucher programs will be compared with one another, Day Center programs will be compared with one another, and other FESG-eligible non-housing programs will be compared with one another. 60 points
(C) In the last 12 months, the percentage of Clients who as a result of their participation in the program have obtained or retained employment.
For this rating factor, Homeless prevention programs will be compared with one another, Transitional housing programs will be compared with one another, overnight Emergency shelter programs will be compared with one another, Temporary Housing voucher programs will be compared with one another, Day Center programs will be compared with one another, and other FESG-eligible non-housing programs will be compared with one another. 30 points
(D) In the last 12 months, the percentage of Clients who as a result of their participation in the program have obtained other income such as Supplemental Security Income (SSI), Temporary Assistance for Needy Families (TANF), or county general assistance;
For this rating factor, Homeless prevention programs will be compared with one another, Transitional housing programs will be compared with one another, overnight Emergency shelter programs will be compared with one another, Temporary Housing voucher programs will be compared with one another, Day Center programs will be compared with one another, and other FESG-eligible non-housing programs will be compared with one another. 30 points
(E) In the last 12 months, the percentage of Clients who as a result of their participation in the program have stabilized a mental illness or chemical addiction for a minimum of 90 days if the program is a Transitional housing program, or for a minimum of 30 days for all other programs.
For this rating factor, Homeless prevention programs will be compared with one another, Transitional housing programs will be compared with one another, overnight Emergency shelter programs will be compared with one another, Temporary Housing voucher programs will be compared with one another, Day Center programs will be compared with one another, and other FESG-eligible non-housing programs will be compared with one another. 30 points
(F) The applicant is a participant in a local planning process for the community-wide continuum of care, EHAP Local Emergency Shelter Strategy (LESS), or other homeless housing and supportive services plan, as evidenced by documentation from this planning process. 40 points

(4) Cost Efficiency - 100 points
The Cost efficiency of the proposed use of FESG funds for Client housing will be based on the rating factors listed in this subdivision. Each rating factor will correspond to specific application questions. The total number of points available for each rating factor is also listed. The point scores awarded to each application for each application question will depend on the relative merit of the individual answer to each question. For each rating factor in this subdivision, the Department may require applicants to submit documentation to verify the accuracy of the information provided by the applicant.
(A) The relative cost efficiency of the proposed use of FESG funds as measured by the following factors, where applicable. 60 points
1. The cost per bed per month when comparing overnight Emergency shelter programs with one another. The Department will examine the total Emergency shelter budget, with the exception of costs that qualify as Essential Services costs, regardless of whether FESG funds are being requested for Essential Services; or

2. The cost per bed per month when comparing Transitional housing programs with one another. The Department will examine the total Transitional housing budget with the exception of costs that qualify as Essential Services costs, regardless of whether FESG funds are being requested for Essential Services; or
3. The cost per bed per month when comparing Temporary Housing voucher programs with one another. The Department will examine the total voucher program budget with the exception of costs that qualify as Essential Services costs, regardless of whether FESG funds are being requested for Essential Services; or
4. The cost per household served per month when comparing Homeless prevention programs, with one another. The Department will examine the total Homeless Prevention program budget, with the exception of costs that qualify as Essential Services costs, regardless of whether FESG funds are being requested for Essential Services; or
5. The cost per household served per month when comparing Day Center programs with one another. The Department will examine the total Day Center budget, with the exception of costs that qualify as Essential Services costs, regardless of whether FESG funds are being requested for Essential Services; or

6. The cost per household served per month when comparing other FESG-eligible non-housing programs with one another. The Department will examine the total program budget with the exception of costs that qualify as Essential Services costs, regardless of whether FESG funds are being requested for Essential Services.
(B) The applicant's level of coordination with other organizations to operate the program as demonstrated by such things as: coordination of service delivery with other providers of housing or services to the homeless, use of volunteers, use of in-kind donations, use of client and community educational programs, and participation in coalitions. In evaluating this rating factor, the Department may ask the applicant to provide up to three letters from collaborating organizations which describe their collaborative relationship with the applicant. 40 points
(5) State Objectives - 35 points
The Department may award each application up to 35 points for addressing one or more State Objectives as identified in the annual FESG NOFA. The Department's selection of State Objectives for inclusion in the annual NOFA shall be based on one or more of the issue areas listed in this section. The point scores awarded to each application for the State Objectives selected in any given year will depend on the relative merit of the individual answers to the State Objective questions. In no instance shall the total amount of State Objective points available in any given year exceed 5% of the total amount of points available under Section 8411(b)
(A) Imbalance in the types of programs funded in prior years, such as Emergency shelters versus Transitional housing;
(B) Federal funding priorities as publicly announced by HUD;
(C) State funding priorities as publicly announced by the Governor;
(D) Housing and community development needs or objectives as identified in the Department's annual consolidated plan required by HUD.
(6) Total Possible - 785 Points
(c) Applications for the New Programs set-aside and three regional set-asides shall be separately rated by group and then ranked in descending order within their groups.
(d) FESG funds will be awarded to Eligible organizations in descending rank order for the amount requested in the corresponding eligible application, subject to the Department's limitations on certain Eligible activities including the limitations applicable to Essential Services and efforts to prevent homelessness at 42 U.S.C. subdivisions 11374(a)(2)(B) and 11374(a)(4) respectively, or for a revised amount pursuant to section 8405 subdivision (d), until the remaining funds in each set-aside are insufficient to fully fund the next highest ranked application(s).
(e) Any FESG funds remaining in the New Programs or regional set-asides shall be made available for distribution by general competition pursuant to section 8402 subdivision (c)(4).
(f) Among the applications competing for the general competition funds, FESG funds will be awarded to Eligible organizations in descending rank order for the amount requested in the corresponding eligible application, subject to the Department's limitations on certain Eligible activities including the limitations applicable to Essential Services and efforts to prevent homelessness at 42 U.S.C. subdivisions 11374(a)(2)(B) and 11374(a)(4) respectively, or for a revised amount pursuant to section 8405 subdivision (d).
(g) When there are insufficient funds to fully fund the next highest ranked unfunded application, this application shall be partially funded if the funded activities can be adequately carried out with the remaining FESG allocation.
(h) Within each of the set-asides set forth in section 8402, subdivisions (b) and (c) in the event of a tie for applicants in the lowest-ranked position to be funded, before continuing the award process the Department will break the tie among the applicants by awarding funds from the set-aside to the applicant who scored the most points overall in the Cost Efficiency rating category.

Note: Authority cited: Section 50406(n), Health and Safety Code. Reference: 24 C.F.R. Section 576.25.

s 8412. State Recipient Contract Requirements.
(a) Following a Grant award, the Department shall enter into a written contract directly with the State recipient. The contract shall be known as the "Standard Agreement" and shall include the items specified in this section.
(1) A clear and accurate identification of the State recipient and the Department;
(2) The timeframe for the performance of the approved project activities;

(3) The amount of the Grant, clearly expressed as the maximum amount; the basis upon which payment is to be made; and the process by which the State recipient must request payment;
(4) A clear and complete statement of the activities and services the State recipient will perform and provide under the Grant.
(b) Timeframes for the performance of approved project activities shall be as follows:
(1) All approved project activities except for Renovation, Conversion or Major rehabilitation shall commence within two months of the effective date of the Standard Agreement and shall be completed within 24 months of the effective date of the Standard Agreement. No extension of this contract term shall be granted.
(2) Approved project activities for Renovation, Conversion or Major rehabilitation shall commence within six months of the effective date of the Standard Agreement and shall be completed within 24 months of the effective date of the Standard Agreement. No extension of this contract term shall be granted.

(A) The commencement of project activities for Renovation, Conversion, or Major rehabilitation shall mean acquiring a building permit for Renovation, Conversion or Major rehabilitation.
(B) The completion of project activities for Renovation, Conversion, or Major rehabilitation activities shall mean acquiring a certificate of completion, where applicable.
(c) Each Standard Agreement shall provide that a State recipient shall request and receive Grant payments only under conditions that protect the Department's interests.
(d) The following performance requirements shall appear in each Standard Agreement and shall include additional provisions specific to each State recipient:
(1) State recipients shall submit to the Department reports on the progress toward the completion of approved activities during the term of the Standard Agreement;

(2) State recipients shall maintain accounting books and records in accordance with generally accepted accounting standards;
(3) State recipients receiving FESG funds for Renovation, Conversion, or Major rehabilitation shall provide the Department with a security interest in any real or personal property improved with FESG funds. The security interest shall be sufficient to secure the continued compliance by the State recipient with specified terms of the Standard Agreement.
(e) The Standard Agreement may require a work plan prepared by the State recipient as part of its application and incorporated by reference as part of the Standard Agreement which the State may then use for contract monitoring purposes.
(f) The Standard Agreement shall contain the applicable continued use requirements for Renovation, Conversion, and Major rehabilitation. Such requirements shall be consistent with the requirements set forth in the FESG Certifications on use of Assistance at 42 U.S.C. section 11375(c)(1) and 24 C.F.R. section 576.53, and shall be recorded against the property.

Note: Authority cited: Section 50406(n), Health and Safety Code. Reference: 42 U.S.C. 11375; 24 C.F.R. Sections 576.25, 576.35, 576.53 and 576.61.

s 8413. Procedures and Requirements for Procuring Contracts for Services or Materials under a Capital Development Contract.
(a) Each State recipient awarded a Grant for Renovation, Conversion, or Major rehabilitation shall include compliance with the requirements of this section in all its contracts and subcontracts for labor and materials to be paid for with FESG funds
(b) Prior to the disbursement of FESG funds for labor or materials, no contract in excess of $25,000 shall be awarded without the prior review and written approval from the Department. The Department shall not unreasonably withhold approval of said contracts.
(c) Each contract for Renovation, Conversion, or Major rehabilitation labor or materials shall comply with all applicable FESG program requirements, and all applicable terms and provisions of the Standard Agreement.
(d) Each contract shall include a provision stating that the records of the contracting parties shall be retained and subject to audit by the Department for a period of six years from the date of execution of the Standard Agreement.
(e) Each contract shall include a provision stating the method and schedule of payments, and shall provide for the retention of an amount of not less than ten percent from each progress payment, until such time as the lien-free completion of the project is ensured.
(f) Each Renovation, Conversion, or Major rehabilitation contract or subcontract of $25,000 or more shall include a security provision requiring the construction or service contractor to provide both a performance and a payment bond or an equivalent form of security, such as a letter of credit. Security instruments shall be subject to the following:

(1) Other than a performance bond and a payment bond, any form of security required of a contractor is subject to prior review and written approval by the Department;
(2) The security shall be in an amount equal to one hundred percent of the amount of the successful bid;
(3)Each construction or service contractor or subcontractor shall be appropriately licensed by the California State Contractors Licensing Board, and shall be insured as required by State law; and (continued)