SPECTRUM COMMUNITY SERVICES (#2025606)

Page 2 of 5 program's goal is to maintain the quality and habitability of Pleasanton's existing homeownership stock, preventing homes from falling into disrepair and becoming a blight to the community due to deferred home maintenance. The program benefits homeowners at or below 80 percent of the Area Median Income (AMI), which is currently $87,550 for a 1-person household and $100,050 for a 2-person household. After Habitat for Humanity informed the City that it would end its administrative services after June 30, 2025, staff began researching other agencies to provide this service. At around the same time, Pleasanton staff became aware that the City of Livermore was assessing the re- initiation of its housing rehabilitation program, which had been paused since 2019. Finding there to be potential benefit in coordinating efforts, the two cities collaborated to issue a Request for Proposals (RFP) to identify agencies that could provide administration services for both of the respective housing rehabilitation programs. The RFP was released on January 14, 2025, and provided a 30-day period for qualified non-profit and for-profit organizations to submit their proposals. Spectrum Community Services was the sole entity to provide a response to the RFP, but based its qualifications and proposal has been selected by Livermore and Pleasanton staff as its new housing rehabilitation program administrator. City staff concluded that Spectrum is a suitable replacement for Habitat for Humanity to continue to provide the housing rehabilitation program for low-income Pleasanton homeowners who need health and safety repairs to their homes. Livermore will also proceed with contracting with Spectrum to restart its housing rehabilitation program. DISCUSSION Since 1971, Spectrum Community Services (Spectrum) has been supporting and providing services to improve the quality of life for older adults and low-income Alameda County residents. Spectrum currently administers a Weatherization Program through the Low Income Home Energy Assistance Program (LIHEAP), which is funded through the California Department of Community Services and Development. As the sole LIHEAP provider for all of Alameda County, Spectrum provides income-eligible residents with emergency efficiency improvements and upgrades, such as heaters, air conditioners, water heaters, insulation, EnergyStar appliances, windows and doors, and sealing measures that reduce the heating and cooling costs of the home. However, LIHEAP's strict funding requirements do not allow Spectrum to use LIHEAP funding to address more significant issues in the home, such as structural issues, asbestos, lead, pests, and mold. In fact, the LIHEAP program requires that these conditions be addressed and remedied prior to the residents being eligible for LIHEAP assistance. Consequently, due to lack of funding, Spectrum has sometimes had to reject LIHEAP applicants who have housing conditions that make them ineligible for LIHEAP funding. Spectrum responded to the RFP with the intent of using the housing rehabilitation programs through Livermore and Pleasanton to augment and enhance its LIHEAP program. Under this "braid funding" model, the homes would be rehabilitated to address health and safety issues, which would also make the homes eligible for LIHEAP funding. Additionally, the LIHEAP program requires that eligible clients do not exceed 60% of the State Median Income (SMI), which is significantly less than the 80% of the Area Median Income (AMI) income requirements of the housing rehabilitation program. The 2025 LIHEAP income eligibility guideline is $3,170 of gross monthly income ($38,040 annual income) for a 1-person Page 99 of 226 Docusign Envelope ID: F9A59956-EB04-41D8-A4CD-510357AEEC7D