CTR079169_Contract_Documents.pdf

Direct Contract

Contract No.: CTR079169

Description: Housing Support Services – Homeless Youth and Families

Rev. 09-2025, v13

Contract between the Arizona Department of Economic Security (the "Department") and Central Arizona Shelter Services (the "Contractor").

WHEREAS the Department is duly authorized to execute and administer contracts under A.R.S. §41-1954;

THEREFORE, the Department and Contractor agree to abide by all the terms and conditions set forth in this Contract.

Contract Term: This contract shall be effective date of last signature and shall terminate on June 30, 2026, unless extended in accordance with the Special Terms and Conditions.

BY SIGNING THIS FORM ON BEHALF OF THE CONTRACTOR, THE SIGNATORY CERTIFIES HE/SHE HAS THE AUTHORITY TO BIND

THE CONTRACTOR TO THIS CONTRACT AND CERTIFIES THAT IT:

1. Will not discriminate against any employee or applicant for employment in violation of any Federal anti-discrimination laws, rules, regulations or executive orders, [Arizona] State Executive Orders 2023-09, 2023-01, 2009-9 or A.R.S. §§ 41-1461 through -1465;

2. Has not given, offered to give, nor intends to give at any time hereafter any economic opportunity, future employment, gift, loan, gratuity, special discount, trip, favor, or service to a public servant in connection with the Contract; failure to provide a valid signature affirming the stipulations required by this clause may void the Contract;

3. Has not signed the Contract with a false statement, which will void the Contract and may subject Contractor to legal penalties under law;

4. Complies with A.R.S. § 18-132 when offering electronics or information technology products, services, or maintenance;

5. Did not and will not involve collusion or other anti-competitive practices; and

6. Is not debarred from, or otherwise prohibited from, participating in any contract awarded by any federal entity, or state or local government.

7. Does not participate in, and agrees not to participate in during the term of the contract, a boycott of Israel in accordance with A.R.S. § 35-

393 et seq. (Unless exempt)

8. Does not participate in the use of forced labor of ethnic Uyghurs as described in A.R.S. § 35-394. (Unless exempt)

☐ By checking this box, Offeror is certifying that it is exempt from the requirements regarding the forced labor of ethnic Uyghurs and boycott of Israel because of one of the following: Contractor is a Sole proprietorship, has fewer than ten (10) employees; or is a non-profit organization.

FOR AND ON BEHALF OF THE

ARIZONA DEPARTMENT OF ECONOMIC SECURITY:

FOR AND ON BEHALF OF THE

CONTRACTOR: CENTRAL ARIZONA SHELTER

SERVICES

Signature of Authorized Individual Signature of Authorized Individual

Printed Name Printed Name

Title Title

Date Date

Contractor Mailing Address

Contractor Mailing Address (cont.)

Contact Name and Title

Phone number and Email address

Nathan Smith

Chief Executive Officer

10/27/2025

P.O. Box 18250

Phoenix, AZ 85005

Brian Gruters, Director of Programs

Office: 602-362-0672 Email: bgruters@cassaz.org

Stacie Dearinure

Procurement Manager

12/4/2025

Table of Contents

CONTRACTOR IS STRONGLY ENCOURAGED TO READ THE ENTIRE CONTRACT.

Scope of Work

Exhibit A – Unusual Incident Report

Exhibit B - Minimum Habitability Standards for Emergency Shelters and Rapid Rehousing: Checklists

Exhibit C - Lead-Based Paint Certification and Checklist

Exhibit D – Shelter Diversion Participant Roster

Exhibit E - Rapid Rehousing (RRH) Income Verification Calculation Worksheet 24

Exhibit F - Fair Market Rent and Rent Reasonableness for DES Youth & Families Rapid Rehousing Program

Exhibit G - Rapid Rehousing Participant Roster

Exhibit H – Itemized Service Budget

Exhibit I - Certification of De Minimis Indirect Cost Rate

Exhibit J - Shelter Diversion Quarterly Performance Report

ADES Special Terms and Conditions

Uniform Terms and Conditions

Attachment 1 - Certification Regarding Lobbying

Attachment 2 - Certification Regarding: Debarment, Suspension, Ineligibility and Voluntary Exclusion

Attachment 3 – Affirmation of Central Registry Background Checks

Attachment 4 - Facility Location and Staffing Chart (FLSC)

Attachment 5 – Subcontractor Form

Attachment 6 – Program Component Selection

Scope of Work

1. ADES Mission and Vision Statements

1.1 ADES Mission: To strengthen individuals, families, and communities for a better quality of life.

1.2 ADES Vision: A thriving Arizona.

2. Purpose

2.1 Purpose Statement: To provide homeless response and operations to rehouse homeless youth and families. Services shall include ongoing Case Management, connection to wrap-around services, and to rapidly provide shelter and housing for youth and families who are experiencing homelessness throughout Arizona. Contractor will facilitate services to homeless youth and families by providing one or a combination of the following Program Components:

2.1.1 Emergency Shelter

2.1.2 Shelter Diversion Services

2.1.3 Rapid Rehousing

2.2 Legal Authority: A.R.S. § 41-1954(A)(6) provides ADES the authority to contract and incur obligations within the general scope of its activities and operations, subject to the availability of funds.

2.3 Funding: The funding source that supports this service is the Arizona Senate Bill 1735.

3. Service Description

3.1 Taxonomy Definition: Housing Support Services- Services that focus on providing the necessary supports to locate and maintain a home.

3.2 Actual Service Description: To provide homeless response and operations to rehouse homeless youth and families and to assist Participants in quickly regaining stability in permanent housing after experiencing a housing crisis and/or homelessness through one or a combination of the following three (3) Program Components:

3.2.1 Emergency Shelter services may be provided by a government entity or nonprofit organization who provides a safe place to sleep, food, supplies, transportation, and essential services, Case Management, licensed childcare, education services, employment assistance and job training, outpatient health services, legal services, life skills training, mental health services, substance abuse treatment services and services to special populations.

3.2.2 Shelter Diversion Services may be provided by a government entity or nonprofit organization who provides assistance to Participants from becoming homeless or rapidly resolve homelessness through rental, financial assistance, Case Management, and other essential services that would prevent Participants homelessness when the household is deemed likely to remain stable and safely housed if diverted from shelter.

https://www.azleg.gov/legtext/57leg/1R/summary/H.SB1735_070125_HOUSEENGROSSED.DOCX.htm#:%7E:text=44.,rather%20than%20November%2030%2C%202025

3.2.3 Rapid Rehousing services provide temporary, short and medium-term assistance to obtain and maintain housing, including but not limited to Housing Relocation and Stabilization Services, rental, financial assistance, and Case Management.

3.3 Participant Eligibility Requirements: Participant eligibility is unique to each Program Component and is based on the Criteria for Defining Homeless Categories as listed below and as further defined in the US Department of Housing & Urban Development (HUD) Criteria and Recordkeeping Requirements for Definition of Homelessness. Participants are eligible for the Program Components if the criteria below is met:

3.3.1 Emergency Shelter is provided to Participants as determined by HUD and who qualify as Category 1 - Literally Homeless or Category 4 - Fleeing or Attempting to Flee Domestic Violence (DV).

3.3.2 Shelter Diversion Services are to be provided to Participants as determined by HUD and who qualify as Category 2- Imminent Risk of Homelessness.

3.3.3 Rapid Rehousing is provided to Participants as determined by HUD and who have qualified as Category 1 - Literally Homeless or Category 4 - Fleeing or Attempting to Flee

DV.

3.4 Background: ADES received one-time funding from the Arizona Senate Bill 1735 to support

Arizonans in need of homeless response and operations to rehouse homeless youth and families.

This one-time funding needs to be expended by June 30, 2026, and will be distributed based on the Point-In-Time Counts across all continuums of care to ensure the needs of the community are met.

4. Definitions

4.1 Arrears: Unpaid, past due utility, rent and mortgage payments that are barriers to obtain or maintain housing.

4.2 Arizona Alliance for Youth: A cross-system, youth-led alliance connecting providers and empowering youth to build a future of hope and opportunity across all Maricopa, Pima County, and Balance of State COCs, as directed by the Youth Homelessness Systems Improvement

(YHSI).

4.3 Balance of State (BOS): Includes Apache, Cochise, Coconino, Gila, Graham, Greenlee, La Paz, Mohave, Navajo, Pinal, Santa Cruz, Yavapai, and Yuma counties.

4.4 Case Management: Includes assessing, coordinating and monitoring the needs of Participants to determine housing solutions and barriers, as well as developing housing action plans. In addition, it also includes connecting Participants with obtaining identification (driver’s license, State ID, Social Security card, birth certificates), or other documentation necessary to obtain housing or employment. Service delivery should also include connections to mainstream community services (e.g., food banks, nutrition assistance programs, childcare assistance, healthcare), making contact with landlords, housing search, life skills training, credit repair, utility utilization information and employment/job search assistance.

4.5 Continuum of Care (COC): Private nonprofit organizations, states, and local governments that promote community-wide commitment to the goal of ending homelessness. Provides funding to https://www.hudexchange.info/resource/1974/criteria-and-recordkeeping-requirements-for-definition-of-homeless/ https://www.hudexchange.info/resource/1974/criteria-and-recordkeeping-requirements-for-definition-of-homeless/ nonprofit providers, state and local governments, to quickly re-house homeless individuals and households to minimize trauma and dislocation; promotes access to and effective utilization of mainstream programs; and optimizes self-sufficiency among individuals and families experiencing homelessness.

4.6 Coordinated Entry System: Also known as "coordinated intake", a Coordinated Entry System paves the way for more efficient homeless assistance and is a system-wide process that can serve any population by helping move people through the system faster, reducing new entries into homelessness through prevention and diversion, and improving data collection and quality.

4.7 Cross-System Service: Holistic, coordinated, and integrated provision of services across providers, which clarify roles and responsibilities and reduces duplication of services.

4.8 Culturally Relevant: Responding respectfully and effectively to all people regardless of their age, religion, belief system, education level, language, gender, race, ethnic background, mental/physical status, sexual orientation, social/economic status, and customs/traditions/values. Additionally, it recognizes, affirms, and values their worth, and protects and preserves the dignity of each person.

4.9 Emergency Shelter: Services may be provided by a government entity or nonprofit organization who provides a safe place to sleep, food, supplies, transportation, and essential services such as Shelter Diversion Services, Case Management, licensed child care, education services, employment assistance and job training, outpatient health services, legal services, life skills training, mental health services, substance abuse treatment services and services to special populations.

4.10 Homeless Categories (HUD Definition):

4.10.1 Category 1 - Literally Homeless: Individual or family who lacks a fixed, regular, and adequate nighttime residence, meaning:

4.10.1.1 Has a primary night-time residence that is a public or private place not meant for human habitation;

4.10.1.2 Is living in a publicly or privately operated shelter designated to provide temporary living arrangements (including congregate shelters, transitional housing, and hotels and motels paid for by charitable organizations or by federal, state and local government programs); or

4.10.1.3 Is exiting an institution where (s)he has resided for 90 days or less and who resided in an emergency shelter or place not meant for human habitation immediately before entering that institution.

4.10.2 Category 2 - Imminent Risk of Homelessness: Individual or family who will imminently lose their primary nighttime residence, provided that:

4.10.2.1 Residence will be lost within 14 days of the date of application for homeless assistance;

4.10.2.2 No subsequent residence has been identified; and

4.10.2.3 The individual or family lacks the resources or support networks needed to obtain other permanent housing.

4.10.3 Category 4 - Fleeing/Attempting to Flee Domestic Violence: Any individual or family who:

4.10.3.1 Is fleeing, or is attempting to flee domestic violence;

4.10.3.2 Has no other residence; and

4.10.3.3 Lacks the resources or support networks to obtain other permanent housing.

4.11 Homeless Family: A household consisting of more than one individual, and as deemed eligible by HUD’s Criteria and Recordkeeping Requirements for Definition of Homelessness (https://www.hudexchange.info/resource/1974/criteria-and-recordkeeping-requirements-for-definition-of-homeless/)

4.12 Homeless Management Information System (HMIS): The database used in the State of Arizona for the COC Coordinated Entry System to collect participant-level data on the provision of housing and services to individuals and households experiencing homelessness.

4.13 Housing Relocation and Stabilization Services: Providing support to Participants that increases housing stability, provides mediation between landlords and tenants, assists with tenant-readiness activities, empowers Participants to achieve their goals, etc.

4.14 Participants: A single individual or group of persons with or without children who either currently live together in one dwelling unit or would live together in one dwelling unit where they are able to maintain suitable housing accommodations.

4.15 Point-In-Time Count (PIT): Annual count of all sheltered and unsheltered individuals and families, as coordinated by the Maricopa County, Pima County, and Balance of State COCs.

4.16 Rapid Rehousing Services: Provides temporary short and medium-term assistance to obtain and maintain housing, including but not limited to temporary shelter, Case Management, Housing Relocation and Stabilization Services, and rental and financial assistance.

4.17 Shelter Diversion Services: Services meant to rapidly respond to and/or prevent homelessness by providing assistance that will resolve a household’s homelessness when the household is deemed likely to remain stably and safely housed if diverted by providing financial assistance and Case Management to families at risk, and as defined in the “Arizona Pathways Home: A Regional Homelessness Action Plan for Local and Tribal Governments - A Prevention & Diversion Toolkit” (https://azmag.gov/Portals/0/Homelessness/pathways-home/Prevention-and-Diversion- Toolkit.pdf)

4.18 Trauma-Informed Care: Understanding trauma and how traumatic events can affect young people is essential when promoting recovery and resilience and ensuring that young people are not retraumatized through experiences with human service systems. Individual trauma results from an event or a series of events, or a set of circumstances that is experienced by an individual as physically or emotionally harmful or threatening, and that has lasting adverse effects on the individual's functioning and physical, social, emotional, or spiritual well-being.

https://www.hudexchange.info/resource/1974/criteria-and-recordkeeping-requirements-for-definition-of-homeless/ https://www.hudexchange.info/resource/1974/criteria-and-recordkeeping-requirements-for-definition-of-homeless/ https://www.hudexchange.info/resource/1974/criteria-and-recordkeeping-requirements-for-definition-of-homeless/ https://azmag.gov/Portals/0/Homelessness/pathways-home/Prevention-and-Diversion-Toolkit.pdf https://azmag.gov/Portals/0/Homelessness/pathways-home/Prevention-and-Diversion-Toolkit.pdf https://azmag.gov/Portals/0/Homelessness/pathways-home/Prevention-and-Diversion-Toolkit.pdf

4.19 Trauma-Informed Comprehensive Services Model: A service model that centers around Trauma-informed Care that minimizes re-traumatization while providing services.

4.20 Youth Homeless Count: Annual count of all sheltered and unsheltered homeless youth, as coordinated by the Arizona Alliance for Youth as a part of the Youth Homelessness Systems Improvement (YHSI).

4.21 Youth Homelessness Systems Improvement (YHSI): A group of statewide service providers and agencies working to coordinate Cross-System Services, inter-agency service referrals, and co-location services for youth-centered services.

5. General Requirements The Contractor shall:

5.1 Provide all services in a Culturally Relevant and linguistically appropriate manner for the population being served.

5.2 Utilize computer-based backup and recovery systems for computer systems to ensure no data is lost, and no disruption or degradation of services occurs.

5.3 Utilize a computer-based tracking system from which the required reports shall be generated.

5.4 Maintain and utilize secure storage space for confidential Participant and personnel information.

5.5 Notify the assigned ADES Contract Specialist in writing within seven (7) calendar days of any staff changes.

5.6 Ensure that staff attend trainings required by ADES and as appropriate for their job description.

5.6.1 Maintain documentation that staff have received appropriate training and hold appropriate certification/licensure in accordance with their job descriptions and provide to ADES upon request.

5.6.2 Complete annual training on Trauma-Informed Care.

5.7 Identify Homeless Youth to participate in the Arizona Alliance for Youth or other leadership and/or decision-making roles for Homeless Youth with lived experience.

5.8 Participate in the Arizona Youth Homelessness Systems Improvement (YHSI) initiative, the Arizona Alliance for Youth, including the 2026 Homeless Youth Count, and the Maricopa, Pima County, or Balance of State COC for coordinated planning activities to inform the youth-led alliance connecting providers to improve cross-system service provision, inter-agency service referrals, and co-location services.

5.9 Actively engage in the ongoing evaluation of short-term, mid-term, and long-term efforts to address youth and family homelessness, in Maricopa County, Pima County, and/or Balance of State COCs.

5.10 Participate in the annual Point-In-Time (PIT) Count and Homeless Youth Count by submitting the requested data.

5.11 Participate in all technical assistance activities conducted by ADES, such as, but not limited to:

5.11.1 Calls with providers;

5.11.2 Sharing of best practices; and

5.11.3 Training opportunities.

5.12 Market and advertise services to Participants through targeted strategies (i.e, social media, etc.).

5.13 Collaborate with other organizations, as needed, to provide wrap-around services.

5.14 Report all unusual incidents to the ADES Homeless State Coordination office within one (1) business day of the occurrence. Complete and submit the Unusual Incident Report Form (Exhibit A as may be amended) within three (3) business days to the ADES Homeless State Coordination office at statewidehomeless@azdes.gov . Unusual incidents include, but are not limited to:

5.14.1 Alleged neglect, abuse, mistreatment, or exploitation of a Participant by Contractor staff;

5.14.2 Sexual abuse against a Participant, including consensual sexual activity by Contractor staff;

5.14.3 Inappropriate sexual behavior toward a Participant by Contractor staff; and/or

5.14.4 Any suspicion or alleged misuse of funds, fraud, theft, or inappropriate financial activity by Contractor staff.

5.15 Track mainstream service referrals and other resource referrals and document in the Participant's case file, subject to review for compliance and monitoring.

5.16 Assist Participants in enrolling in mainstream services and benefits, including, but not limited to, housing, health care, social services, employment, education, (e.g., Arizona Health Care Cost Containment System (AHCCCS), Supplemental Nutrition Assistance Program (SNAP), Women, Infants, and Children (WIC), Temporary Assistance for Needy Families (TANF), and vocational rehabilitation) and save in the Participant's case file, subject to review for compliance and monitoring.

5.17 Utilize available ADES services when applicable, including but not limited to the Division of

Employment Rehabilitation Services (DERS), workforce initiatives, and those administered by the Division of Benefits and Medical Eligibility (DBME).

6. Emergency Shelter Requirements

6.1 Participate in the Coordinated Entry System and HMIS for Maricopa County, Pima County, and/or

Balance of State COCs, including, but not limited to:

6.1.1 Collecting HUD Universal Data Elements, utilizing and completing the appropriate Coordinated Entry (CE) Assessment tool.

6.1.2 Any other required data collection for evaluation purposes, as requested by ADES.

mailto:statewidehomeless@azdes.gov

6.1.3 Case conferencing to collaborate with key service providers on ways to remove barriers to house Participants faster, including identifying their needs and connecting them to coordinated resources.

6.2 Provide appropriate levels of service to meet the Participants' needs and maximize the number of Participants being served.

6.3 Certify all dwellings meet HUD Habitability Standards as defined in the Minimum Habitability Standard for Emergency Shelters and Rapid Rehousing Checklists (Exhibit B, as may be amended). Checklist(s) shall be retained in each shelter’s file as per the Minimum Habitability Standards for Emergency Shelters and Rapid Rehousing.

6.4 Comply with applicable state and local zoning, fire, environmental, health, and safety standards and regulations.

6.5 Complete the Disclosure of Information on Lead-Based Paint Certification and Checklist (Exhibit

C, as may be amended). Checklist(s) shall be retained in each shelter’s file for each structure as per the Minimum Habitability Standards for Emergency Shelters and Rapid Rehousing.

6.6 Ensure all services provided are allowable based on the list below:

EMERGENCY SHELTER

Eligible Services Allowable Activities

Essential Services

The contractor shall provide the services listed below:

Case Management shall include:

(24 CFR § 576.102 (a)(1)(i))

Assess, arrange, coordinate, and monitor individualized services.

Emergency Shelter Operations shall include:

(24 CFR 576.102(a)(3)

Eligible costs are the costs of maintenance (including minor or routine repairs), rent, security, fuel, equipment, insurance, utilities, food, furnishings, and supplies necessary for the operation of the emergency shelter. Where no appropriate emergency shelter is available for a homeless family or individual, eligible costs may also include a hotel or motel voucher for that family or individual.

Renovation costs are not being funded through this contract

The contractor may provide one (1) or a combination of the services listed below:

Child Care may include:

(24 CFR § 576.102 (a)(1)(ii))

Licensed childcare for Participants with children under the age of 13, or disabled children under the age of 18.

Education Services may include:

(24 CFR § 576.102 (a)(1)(iii))

When necessary for the Participant to obtain and maintain housing, the costs of improving knowledge and basic educational skills are eligible.

Employment Assistance and Job Training may include:

(24 CFR § 576.102 (a)(1)(iv))

The costs of employment assistance and job training programs are eligible.

Outpatient Health Services may include:

(24 CFR § 576.102 (a)(1)(v))

Eligible costs are for the direct outpatient treatment of medical conditions and are provided by licensed medical professionals. Funds may be used only for these services to the extent that other appropriate health services are unavailable within the community.

Legal Services may include:

(24 CFR § 576.102 (a)(1)(vi))

Eligible costs are the hourly fees for legal advice and representation by attorneys licensed and in good standing with the bar association of the State in which the services are provided, and by person(s) under the supervision of the licensed attorney, regarding matters that interfere with the Participant's ability to obtain and retain housing. Funds may be used only for these services to the extent that other appropriate legal services are unavailable or inaccessible within the community.

Life Skills Training may include:

(24 CFR § 576.102 (a)(1)(vii))

The costs of teaching critical life management skills that may never have been learned or have been lost during the course of physical or mental illness, domestic violence, substance use, and homelessness are eligible costs. These services must be necessary to assist the Participant to function independently in the community.

Mental Health Services may include:

(24 CFR § 576.102 (a)(1)(viii))

Eligible costs are the direct outpatient treatment by licensed professionals of mental health conditions. Funds may only be used for these services to the extent that other appropriate mental health services are unavailable or inaccessible within the community.

Substance Abuse Treatment Services may include:

(24 CFR § 576.102 (a)(1)(ix))

Eligible substance abuse treatment services are designed to prevent, reduce, eliminate, or deter relapse of substance abuse or addictive behaviors and are provided by licensed or certified professionals. Funds may only be used for these services to the extent that other appropriate substance abuse treatment services are unavailable or inaccessible within the community.

Transportation may include:

(24 CFR § 576.102 (a)(1)(x))

Eligible costs consist of the transportation costs of a Participant's travel to and from medical care, employment, child care, or other eligible essential services facilities.

Services for Special Populations may include:

(24 CFR § 576.102 (a)(1)(xi))

Funds may be used to provide services for homeless youth, victim services, and services for people living with HIV/AIDS, for the above-mentioned eligible services.

7. Shelter Diversion Services The Contractor shall:

7.1 Implement or expand upon existing Shelter Diversion Services, which aims to rapidly respond to and/or prevent homelessness by providing assistance that will resolve a household’s homelessness when the household is deemed likely to remain stably and safely housed if diverted by providing financial assistance and Case Management to families at risk, as defined in the “Arizona Pathways Home: A Regional Homelessness Action Plan for Local and Tribal Governments - A Prevention & Diversion Toolkit” located at: https://azmag.gov/Portals/0/Homelessness/pathways-home/Prevention-and-Diversion- Toolkit.pdf

7.2 Ensure financial assistance is reserved for Participants obtaining or retaining housing and/or eliminating barriers in obtaining or retaining housing, in accordance with HUD Category 2 criteria and recordkeeping requirements.

7.3 Require that Participants demonstrate that the funds are the option of last resort or meet an immediate need that other funding sources are unable to cover, and that they can maintain housing after the assistance.

7.4 Establish and adhere to policies and procedures for outreach, coordination, and service delivery.

Policies and procedures shall be made available upon ADES request

7.5 Create, utilize and maintain defined processes and financial controls to allow timely and accurate disbursement and documentation of financial assistance.

7.6 Provide a limited one-time payment per household of no more than $3,000 paid on behalf of the

Participant to the landlord, utility company, etc. based on Participants needs.

7.7 Provide Case Management components with service delivery, including voluntary services such as education, coaching, negotiation with vendors (landlords), budgeting and financial management, and legal referrals.

7.8 Document and maintain within the Participant case file all post-service follow-ups at three (3) months intervals for the Contract term to determine the Participant’s housing status, the impact of the service delivery, and the need for additional connection to other programs.

7.9 Provide a list of Participant HMIS IDs that have received follow-up services using the Shelter Diversion Participant Roster (Exhibit D).

https://azmag.gov/Portals/0/Homelessness/pathways-home/Prevention-and-Diversion-Toolkit.pdf https://azmag.gov/Portals/0/Homelessness/pathways-home/Prevention-and-Diversion-Toolkit.pdf

7.10 Ensure all services provided are allowable based on the list below:

SHELTER DIVERSION SERVICES

Essential Services

The contractor shall provide the services listed below:

Shelter Diversion shall include:

• Past due or future rent (i.e., up to 1 month of rent)

• Past due and/or future utilities, utility deposits

• Relocation to another community (pending confirmed housing opportunity)

• Move-in assistance (movers, furniture, kitchenware, welcome boxes);

rental application fees, inspection/processing/admin fees, security/rental deposits, storage costs

• ID costs/expenses

• Childcare assistance

• Pet deposits; one-time pet fees

• Legal fees/expenses, prior judgments

• Car repair, car payment

• Insurance payment

• Clothing, including work uniforms and work supplies

• Employment-related expenses (starting job costs)

• Housing search/placement

• Air conditioning (repair/replace)

• Legal aid, credit repair

• Landlord engagement/mediation

• Any other assistance deemed reasonable that will resolve a household’s homelessness when the household is deemed likely to remain stably and safely housed if diverted from shelter

8. Rapid Rehousing Requirements

8.1 Participate in the Coordinated Entry System and HMIS, for Maricopa County, Pima County, and/or Balance of State COCs, including, but not limited to:

8.1.1 Collecting HUD Universal Data Elements, utilizing and completing the appropriate

Coordinated Entry (CE) Assessment tool.

8.1.2 Any other required data collection for evaluation purposes, as requested by ADES.

8.1.3 Case conferencing to collaborate with key service providers on ways to remove barriers to house Participants faster, including identifying their needs and connecting them to coordinated resources.

8.2 Provide appropriate levels of service to meet the Participant’s needs and maximize the number of Participants being served in accordance with the Housing Relocation and Stabilization services.

8.3 Designate a Case Manager or Housing Specialist to identify appropriate housing options and facilitate communication between the Participant and the property manager, landlord, and/or owner.

8.4 Assist Participants in submitting rental and lease applications.

8.4.1 Understand rental and lease agreements; advocate rental and lease agreements on behalf of Participants with owners or landlords; help the Participants understand the Arizona Landlord Tenant Act (see Arizona Residential Landlord and Tenant Act) Landlord and Tenant Act | Department of Housing

8.5 Provide financial assistance to cover move-in costs, deposits, and the rental/lease and/or utility Arrears necessary to allow Participants to move immediately out of homelessness and stabilize in Permanent Housing.

8.5.1 Pay Utility Arrears for Rapid Rehousing Participants if utility Arrears prevent the household from establishing utility service in their new housing.

8.6 Provide certification of domestic violence, dating violence, sexual violence, sexual assault, or stalking, using the HUD-5382 form. The Violence Against Women Reauthorization Act of 2013 (VAWA 2013) required that HUD create a certification form that serves as a means of documenting incidents of violence per CFR 5.2005(a) (see Violence Against Women Act (VAWA) Resources for Multifamily Assisted Housing).

8.7 Except for a one-time payment of rental Arrears on the tenant's portion of the rental payment, rental assistance cannot be provided to a Participant who is receiving tenant-based rental assistance or living in a housing unit receiving project-based rental assistance or operating assistance, through other public sources. Rental assistance may not be provided to a Participant who has been provided with replacement housing payments under the Uniform Relocation Assistance (URA) during the period of time covered by the URA payments.

8.8 Provide rental assistance payments (typically around six (6) to nine (9) months) to an owner with whom the Participant has entered into a rental assistance agreement.

8.9 Conduct income verifications for all Rapid Rehousing Participants utilizing the Rapid Rehousing

(RRH) Income Verification Calculation Worksheet (Exhibit E, as may be amended) and input in the HMIS.

8.9.1 At initial assessment, household income must be at or below 50% Area Median Income to receive assistance.

8.10 Certify that all dwellings and rental units meet Fair Market Rent and Rent Reasonableness for

DES Youth & Families Rapid Rehousing Program (Exhibit F, as may be amended) in the Participant’s case file.

8.11 Certify all dwellings and rental units meet HUD and A.R.S. Habitability Standards as defined in the Minimum Habitability Standard for Emergency Shelters and Rapid Rehousing Checklists (Exhibit B, as may be amended). Checklist shall be retained in each Participant’s case file.

https://housing.az.gov/general-public/landlord-and-tenant-act https://housing.az.gov/general-public/landlord-and-tenant-act

8.12 Complete the Disclosure of Information on Lead-Based Paint Certification and Checklist (Exhibit

C, as may be amended) as necessary and retain documentation in each Participant’s case file.

8.13 Review and retain each Participant’s signed (executed) rental or lease agreement for Rapid

Rehousing in the Participant’s case file.

8.14 Establish and follow a formalized supervisory review and approval of the Case Manager's determination for each Participant’s contributions towards the monthly rent and save in the Participant’s case file.

8.15 Conduct follow-up services with each Participant for six (6) months after the rental subsidy ends by phone, mail, email, or house visit to verify if additional services are needed and if Participants remain permanently housed.

8.16 Provide a list of Participant HMIS IDs that have received follow-up services using the RRH

Participant Roster (Exhibit G).

8.17 Ensure all services provided are allowable based on the list below:

RAPID REHOUSING

The Contractor shall provide the services listed below:

Housing Stability Case Management shall include:

Funds may be used to pay the cost of assessing, arranging, coordinating, and monitoring the delivery of individualized services to facilitate housing stability for a Participant who resides in permanent housing or to assist a Participant in overcoming immediate barriers to obtaining housing.

This assistance cannot exceed 30 days during the period the Participant is seeking permanent housing and cannot exceed 24 months during the period the Participant is living in permanent housing.

The contractor may provide one (1) or a combination of the services listed below:

Rental Assistance may include:

Assistance may be short-term rental assistance (up to 3 months), medium-term rental assistance (4-12 months), and one-time payment of up to 6 months rental Arrears, including any late fees for the tenant’s portion of Arrears, or any combination of these forms of assistance, to be provided to eligible program participants only when the rent, including utilities (gross rent), for the housing unit: 1. Does not exceed the Fair Market Rent (FMR) established by HUD for each geographic area; and 2. Complies with HUD’s standard of rent reasonableness. Not to the duration of the Contract (June 2026)

Rental Assistance Limits: The maximum amount of rental assistance paid to a program participant cannot exceed the contract period, including any payment for last month’s rent.

Housing Relocation and Stability Services - Financial Assistance and Services may include:

Funds may be used to pay for rental application fees, security deposits, last month’s rent, utility deposits, utility payments, and moving Costs to housing owners, utility companies, and other third parties.

Housing Relocation and Stabilization Services include housing search and placement, mediation, legal services, and credit repair

9. Performance Measures

ADES shall evaluate the Contractors effectiveness based on the following performance factors by reviewing HMIS data and expenditures every three (3) months.

9.1 General Performance Standards

9.1.1 Data quality meets or exceeds 95% in HMIS or comparable database.

9.2 Emergency Shelter Performance Standards in HMIS or comparable database

9.2.1 Known exit destinations for Participants at or above 60%.

9.3 Rapid Rehousing Performance Standards in HMIS or comparable database

9.3.1 Known exit destinations for Participants at 90%

10. Payment for Services

10.1 Reimbursement to the Contractor is in accordance with actual allowable costs incurred not to exceed the service reimbursement ceiling as stated in the Itemized Service Budget (Exhibit H, as may be amended).

10.1.1 Housing Relocation and Stabilization Services, Financial Assistance and Short and

Medium Term Rent and Utility Assistance are reimbursed based on actual cost with backup documentation in alignment with allowable costs for Rapid Rehousing and Homeless Prevention.

10.1.2 Itemized Service Budget will be reviewed and may be adjusted accordingly based on the following: changes in award allocations from the funding source, failure to meet objectives proposed to be served, or programs not spending budgeted funds efficiently.

10.2 Pursuant to 24 CFR Part 91 and as required by HUD, funding is allocated based on the adherence to the following requirements regarding activities in the Arizona Annual Action Plan.

All Contractors are required to adhere to the requirements identified in the State Annual Action Plan and below for expenditures.

10.2.1 Contractors and their recommended service providers must follow all Office of

Management and Budget (OMB) Cost Principles and Generally Accepted Accounting

Principles (GAAP). OMB and budget requirements are listed in 2 CFR Part 200. Costs charged to the ESG must be allowable, allocable, and reasonable. Shifting costs between awards to overcome funding deficiencies is not allowed.

10.2.2 Allowable costs must conform to any limitations or exclusions set forth in the federal cost principles. Additionally, the allowable costs must comply with the policies and procedures afforded all activities within the Contractor or service provider’s organization and be treated consistently (whether as a direct or indirect cost). Finally, allowable costs must comply with the GAAP and the costs must be adequately documented.

10.2.3 Allocable costs are those treated consistently with other costs incurred for the same purpose in like circumstances. These costs must meet the requirements listed in 2 CFR Part 200.405

10.2.4 Reasonable costs do not exceed in nature or amount of costs that would be incurred by a prudent person under the same or similar circumstances prevailing at the time a decision was made to incur the cost.

10.2.5 Eligible costs may be direct or indirect. They must be incurred for the same purpose in like circumstances and must be treated consistently as either direct or indirect costs.

10.2.5.1 Contractor shall not expend any state funds prior to the contract effective date. In addition, no funds shall be expended until any required environmental review process has been completed, if required under 24 CFR Part 50.

10.2.6 Direct costs are those costs that can be identified specifically with a particular final cost objective and can be directly assigned to an activity relatively easily with a high degree of accuracy.

10.2.7 Indirect costs are those that have been incurred for common or joint objectives and cannot be readily identified with a particular final cost objective or activity. Contractors that allow their service providers to seek reimbursement for indirect costs must comply with all OMB requirements, including 2 CFR Part 200.403 and Part 200 Appendix 4.

Contractor records must include evidence of the modified total direct cost calculations, indirect cost limits, and supporting documentation for actual direct cost billing.

10.2.7.1 If the Contractor elects to use the de Minimis rate for indirect costs, they must complete and submit the Certification of de Minimis Indirect Cost Rate form (Exhibit I, as may be amended).

10.2.7.2 If the Contractor elects to use a federally negotiated indirect cost rate, they must provide a copy of the rate agreement with the Itemized Service Budget. If the federally approved indirect cost rate changes or is allowed to expire within the contract period, the Contractor must notify ADES of the changes.

11. Reporting Requirements The Contractor shall:

11.1 Submit all notices/correspondence/documents relevant to this Contract electronically to the assigned Contract Specialist, or as directed by ADES.

11.2 Directly input monthly complete and accurate financial billing information for all expenditures and reports into the Division of Aging and Adult Services Reporting System (DAARS), or as directed by ADES.

11.2.1 Upload all required reports and backup documents with the financial billing each month.

ADES will not process any invoices until all reports and backup documents have been uploaded into DAARS.

11.2.2 Submit all copies of Participant receipts, copies of checks, and/or ledgers with detailed costs issued for Housing Relocation and Stabilization Financial Assistance, and the Short- and Medium-Term Rent and Utility Assistance for each Participant served during the previous month. Group receipts by Participant prior to submission.

11.2.3 Submit the Shelter Diversion Participant Roster (Exhibit D) by the 15th day following the end of each month.

11.2.4 Submit the Shelter Diversion Quarterly Performance Report (Exhibit J, as may be amended) by the 15th day following the end of each month.

11.2.5 Submit the RRH Participant Roster (Exhibit G, as may be amended) by the 15th day following the end of each month

11.3 HMIS Reporting Requirements:

11.3.1 Collect, enter and update all Participants' information correctly into HMIS within five (5) days following each occurrence in which the Participant was served in accordance with the COC HMIS Data Quality Plan and the data quality standards as defined by HUD.

Accurate maintenance of reporting program data into HMIS is required throughout the term of this contract.

11.3.2 Submit a Consolidated Annual Performance Evaluation Report (CAPER) located in HMIS for each funded Program Component activity(ies) in the format required by ADES within fifteen (15) days following the end of each service month completed. The report template is located in each HMIS.

11.4 Submit the Unusual Incident Report (Exhibit A, as may be amended) within three (3) business days as specified in Section 5.14, to the ADES Homeless State Coordination Office at statewidehomeless@azdes.gov , as necessary.

11.5 ADES reserves the right to add, remove, or revise reporting requirements at its discretion.

11.6 Certificate(s) of Insurance

11.6.1 Current Certificate(s) of Insurance (COI) and policy endorsements as required in the Special Terms and Conditions, Section 22, Indemnification and Insurance, shall be submitted by the Contractor’s agent no later than ten (10) days of Contract award to mailto:statewidehomeless@azdes.gov

MyCOI. The Contract and its insurance agent(s) must be registered with MyCOI in order to have the insurance coverage validated.

11.6.2 Prior to expiration of COI(s), the Contractor must submit a new COI(s) and endorsements into the insurance tracking portal, MyCOI.

11.6.3 ADES will not process any invoices until COI documents have been received and are in compliance with the Special Terms and Conditions.

Exhibit A – Unusual Incident Report

Exhibit A – Unusual Incident Report

Exhibit A is provided as a separate attachment

Exhibit B - Minimum Habitability Standards for

Emergency Shelters and Rapid Rehousing:

Checklists

Exhibit B - Minimum Habitability Standards for Emergency Shelters and Rapid Rehousing: Checklists

Exhibit B is provided as a separate attachment

Exhibit C - Lead-Based Paint Certification and

Checklist

Exhibit C - Lead-Based Paint Certification and Checklist

Exhibit C is provided as a separate attachment

Exhibit D – Shelter Diversion Participant Roster

Exhibit D – Shelter Diversion Participant Roster

Exhibit D is provided as a separate attachment

Exhibit E - Rapid Rehousing (RRH) Income Verification Calculation Worksheet

Exhibit E - Rapid Rehousing (RRH) Income Verification Calculation

Worksheet

Exhibit E is provided as a separate attachment

Exhibit F - Fair Market Rent and Rent Reasonableness for

DES Youth & Families Rapid Rehousing Program

Exhibit F - Fair Market Rent and Rent Reasonableness for DES Youth & Families Rapid Rehousing Program

Exhibit F is provided as a separate attachment

Exhibit G - Rapid Rehousing Participant Roster

Exhibit G - Rapid Rehousing Participant Roster

Exhibit G is provided as a separate attachment

Exhibit H – Itemized Service Budget

Exhibit H – Itemized Service Budget

Exhibit H is provided as a separate attachment

Exhibit I - Certification of De Minimis Indirect Cost Rate

Exhibit I - Certification of De Minimis Indirect Cost Rate

Exhibit I is provided as a separate attachment

Exhibit J - Shelter Diversion Quarterly Performance Report

Exhibit J - Shelter Diversion Quarterly Performance Report

Exhibit J is provided as a separate attachment

ADES Special Terms and Conditions

1. Definition of Terms

In addition to the Uniform Terms and Conditions, Section 1, the following shall apply:

1.1 “Award Date” The date this Contract is executed by the Department. This may or may not be the same date as the “Effective Date” which is the date specified on the Offer and Acceptance or Signature Page.

1.2 “Client Specific Referral” Services or activities for which a referral has been made for a client by an authorized representative of the Department.

1.3 “Contract Amendment” means a written document signed by the Procurement Officer that is issued for the purpose of making changes in the Contract.

1.4 “Department” The Arizona Department of Economic Security (ADES), unless otherwise indicated.

1.5 “Effective Date” The date the Contractor is to start delivering services. The Effective Date is specified on the Offer and Award or Signature Page.

1.6 “Equipment” All vehicles, furniture, machinery, electronic data processing (EDP) equipment, software and all other equipment costing $10,000.00 or more, including all normal and necessary expenses incurred to make the equipment ready for its intended use (e.g., taxes, freight, installation, assembly and testing charges, etc.), and with a useful life of greater than one (1) year. Equipment as used herein does not include real property (e.g., land, building, structures, or facilities’ improvements).

1.7 “May” or “may” Indicates something that is not mandatory but permissible.

1.8 “Purchase Order” also known as “Purchase Authorization” or “Release Order” is an authorized document to procure goods or services.

1.9 “Shall or “shall” “Must” or “must” Indicates a mandatory requirement. Failure to meet these mandatory requirements may result in the rejection of a proposal as non-responsive.

1.10 “Should” or “should” Indicates something that is recommended but not mandatory. If the

Contractor fails to provide recommended information, the State may, at its sole option, ask the Contractor to provide the information.

1.11 “Vulnerable adult” An individual who is eighteen (18) years of age or older who is unable to protect himself from abuse, neglect or exploitation by others because of a physical or mental impairment. Vulnerable adult includes an incapacitated person as defined in A.R.S.

§14-5101.

2. Advertising, Publishing and Promotion of Contract

In addition to the Uniform Terms and Conditions, Section 3.6, the following shall apply:

2.1 The Contractor shall provide to the Department for review and approval all reports or publications (written, visual or sound) which are funded or partially funded under this Contract, a minimum of fifteen (15) calendar days prior to public release. All reports and publications whether written, visual or verbal shall contain the following statement:

2.1.1 “This program was funded through a contract with the Arizona Department of

Economic Security. Points of view are those of the author and do not necessarily represent the official position or policies of the Department.”

3. Assignment

In addition to the Uniform Terms and Conditions, Section 5.3, the following shall apply:

3.1 Merger, Reorganization or Change of Ownership

3.1.1 A proposed merger, reorganization or change in ownership of the Contractor shall require prior written approval of the Department and may require an assignment of this Contract documented by a Contract Amendment. The Department may terminate this Contract pursuant to the Termination clauses of this Contract, if the Contractor does not obtain prior written approval or the Department determines that the change in ownership is not in the best interest of the State.

3.1.2 The Contractor shall submit a detailed merger, reorganization and/or transition of ownership plan to the Department, for review at least sixty (60) days prior to the effective date of the proposed change.

3.2 This Contract is voidable and subject to immediate cancellation by the Department upon the Contractor becoming insolvent, or filing proceedings in bankruptcy or reorganization under the United States Code, or assigning any right(s) or obligations under this Contract without the prior written consent of the Department.

4. Audit

In addition to the Uniform Terms and Conditions, Section 3.3, the following shall apply:

4.1 In compliance…