City proposes fast-turnaround RFP to provide six months of interim funding for HUD-certified housing counselors facing federal cuts

City staff told the committee they planned to post a short, expedited request for proposals to provide interim funding for HUD-certified housing counselors after federal funding cuts put the positions at risk of layoffs effective July 1.

Dawn (presenting) said local HUD-certified housing counselors perform regulated work that prevents foreclosures and that one local agency using two certified counselors prevented 376 foreclosures last year, predominantly for low-income seniors. "Most of those have mortgage payments on a monthly basis in, like, the $5,700 range, meaning that if they are in fact foreclosed on and lose their housing, they will never be able to afford market rate housing again in the community," she said.

Staff proposed using $300,000 from the city's 1590 services fund to support an expedited RFP that would award up to six months of interim funding, with a cap of $200,000 per project. The plan would allow agencies to float expenses after July 1 and would bring contracts to council for approval on July 9 with a legislative vote to follow. Staff said they would post the RFP immediately with a short response window and ask a volunteer RFP committee to evaluate proposals rapidly.

Council members asked how the short timeline could be managed; staff said it would require fast evaluation and that agencies would need to float expenses until contracts took effect. One councilmember confirmed the funds would come from services set aside and that staff had been reserving some services dollars in anticipation of later RFPs.

Staff said the RFP is intended as an interim measure to preserve housing counseling services so agencies can seek longer-term funding opportunities while avoiding a gap in services that could increase homelessness risk.