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SR-9-A (17) r~A Council Heeting: 1/21/92 CDD:CNS:JR:srshltrc -' i.99P. Santa Monica, California TO: Hayor and City Council FROM: City staff SUBJECT: Request Authorization for City Manager to Apply for the Federal Department of Housing and Urban Development's (HOD) Shelter Plus Care Program Funds INTRODUCTION This report transmits a recommendation for the city Council to direct staff to assess the feasibility and submit a funding proposal for the Federal Department of Housing and Urban Department's (HUD) Shelter Plus Care Program. BACKGROUND In December of 1991, the city Council approved the recommendations of the Santa Honica Task Force on Homelessness. A vital part of the recommendations contained in the Report address the need for comprehensive housing programs including shelter beds, emergency detox beds, special needs housing options and transitional and permanent housing. Additionally, the Report calls for enhanced programs to serve the complex needs of the homeless people with mental illnesses. The comprehensive policies and programs recommended in the Task Force Report represent a multi-year approach. While a number of recommendations can be implemented without new expenditures/ many require funding and resources which are not now available. 9--,+ ~I'~"" I"'~X. - 1 - Resource and program development are key to the successful implementation of the Task Force's recommendations. The city is currently seeking other fundl.ng opportunities to build a stronger funding base that can support these recommendations. In so doing, city staff will explore Federal, state, County and private resources that target the needs of homeless persons. The Shelter PI us Care Program administered through HOD has the potential to provide resources for some of these enhanced housing and supportive service needs. DISCUSSI.ON The Shelter Plus Care (S+C) Program was authorized under the National Affordable Housing Act which amended the stewart B. McKinney Act and is funded from HUD' s appropriation act for fiscal year 1992 in the amount of $110,533,000. The S+C Program is a rental assistance program designed . specifically to link supportive services to rental assistance for homeless persons with disabl.lities. The program primarily targets people with serious mental illnesses, chronic problems with alcohol, drugs or persons with AIDS and related diseases. The S+C Program includes three components: section 8 Moderate Rehabilitation Program for Single Room Occupancy (SRO) Dwellings funded at $73 million for FY1992; Sponsor-based Rental Assistance (SRA) funded at just over $37 million for FY1992; and, Tenant-Based Rental Assistance (TRA) which will not be funded in FY1992. - 2 - The following describes the two components of the S+C program for which funding is available in FY92-93. SRO Component The SRO component is a moderate rehabilitation program designed to bring more standard SRO units into the local hous ing supply and to use those units to assist homeless persons with disabilities over-a ten-year period. Eligibility for the section 8 Moderate Rehabilitation Program for Single Room Occupancy (SRO) Dwellings is contingent upon establishing housing linked with supportive services. SRA Component The SRA component provides rental assistance through a contract with a private nonprofit organization, called a sponsor. The housing units for this program must be owned or leased by the sponsor. The SRA units may be of any type, ranging from group homes to apartments, including SRO units. The sponsor is allowed flexibility in program design which offers participants a variety of housing options while the sponsor retains rental assistance during the term of the grant, as long as the participant stays wi thin an SRA-assisted unit. City staff have performed a preliminary review of the Notice of Funding Availability (NOFA) published in the Federal Register on December 5, 1991. Based on this preliminary review, the city appears eligible to apply for the SRO and SRA program components. The application is consistent with the City's Comprehensive Housing Affordability Strategy (CRAS) which details housing needs and market conditions within Santa Monica, together with strategies and plans for meeting those needs. Communi ty and Neighborhood Services staff will be working with the Housing Division and other local non-profi ts to co-sponsor this application. - 3 - . This program does not mandate minimum or maximum grant level. Funding through this program requires that 30 program participants be served in a program year. Application for funding through the Shelter Plus Care Program is due on February 28, 1992. BUDGETARY IXPACT There is no budgetary impact at this time. RECOMMENDATION city staff recommends that the Council direct staff: 1) to determine feasibility of application to the Shelter Plus Care Program; and 2) based upon a favorable feasibility assessment, authorize the city Manager to apply for Shelter Plus Care funding. Prepared By: Julie Rusk, Acting Community and Neighborhood Services Manager Wendy Bines, Homeless Coordinator community Development Department - 4 -