The answer would be A. The rest of the sentence is in past tense, so that would also be.
Answer:
I believe the answer is C. that the city realizes that the homeless situation is growing at an unpredictable rate
Citing passages from a text is one way to provide elaboration in an essay.
The reason why this would be your answer is because when you cite your source, it allows to person to go to the source to see more information about the quote you got, and not leave them empty handed. If you didn't cite you source, it would be considered plagiarism, and wouldn't allow the reader to get to know more about the quote and what happens.