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SR-9-A (22) q-A CARS:CNS:JR:WB:opcctran Councll Meeting: March 23, 1993 'Vii ..'li:"! ,) ~, 'I.~\:;J' I..n w..j _ . Santa Monica, California TO: Mayor and city council FROM: city staff SUBJECT: Recommendation to Award Matching Funds for Ocean Park Community Center's Transitional Housing Project INTRODUCTION This staff report transmits a recommendation to award funds in the amount of $380,000 to serve as a direct cash match to the U.S Department of Housing and Urban Development (HUD) transitional housing grant recently awarded to Ocean Park Community Center (OPCC) . HUD has awarded OPCC $2.8 million to assist with the acquisition, rehabilitation and operation (for five years) of a fifty-five (55) bed transitional housing program and related facilities. To be an elig1ble recipient of these grant funds, OPCC must demonstrate the ability to leverage funds from other sources. The recommended $380,000 of City revenues will assist OPCC in meeting the cash match requirements established by HUD. BACKGROUND In 1991, a City-appointed Task Force on Homelessness met for a year to draw up a comprehensive set of recommendations to address homelessness in Santa Monica. The report, "A Call to Action", was adopted by the city Council in December 1991. The report identified the lack of affordable housing in Santa Monica as a major problem and called for the development of at least 110 - 1 - 9-A M4? - f.r:.-- "'- ... _J ;.-<:':-"J transitional housing beds, operated by OPCC. with $380,000, the City will Council-approved goal. 55 of them in a facility to the recommended funding award be well on its way to fulfill be of this In June 1992, opec submitted a grant application to HUD requesting funds through BUD's Transitional Housing Program - Supportive Housing Demonstration Project. On October 13, 1992, OPCC received written notification of BUD's decision to award opec $2.8 million, one of one hundred awards granted nationally, to assist with this project. DISCUSSION OPCC has purchased and will rehabilitate a vacant convalescent home (formerly Casa Descanso) located at 1447 16th street to be used for this 55 bed transitional housing project. In the Spring of 1993, construction will begin with the removal of a portion of the main building and two warehouses on the south portion of the lot. In the Fall of 1993, the rehabilitation and remodeling will consist of substantially upgrading the building for residential and counseling uses. In order to eliminate any parking impacts on the surrounding nelghborhood, the project will provide parking in excess of City requirements. Although OPCC will receive $2.8 million from HUD, only $400,000 of these funds can be dedicated to the rehabilitation of these facilities. Therefore, it is recommended that the $380,000 of City funds be directly applied to costs associated with completing the first phase of the construction schedule. Total - 2 - development costs (excluding acquisition) are projected at $884,235. city funds combined with the HUD grant award of $400,000 will make this project feasible. Additional funds will be raised through a capital campaign initiated by OPCC. OPCC has also initiated a community outreach effort to both inform and involve the community in this proj ect. Sweeny & Associates was retained by OPCC in December, 1992 to conduct an intensive community outreach effort on behalf of the planned transitional housing project. The objective of this effort is to inform site-adjacent residents of the intended renovation of the project site and its conversion to a 55 bed transitional housing facility for adults. The following are the community outreach strategies used: o An initial neighborhood meeting designed to describe the project, explain its purpose, operation, and physical parameters, to hear neighborhood concerns regarding the project and to solicit neighborhood input on project details for incorporation into the project where feasible; o A second neighborhood meeting where the project proponents and architect would return to site-adjacent neighbors with specific responses to their concerns, as well as more detailed schematics and elevations; o Presentations to the Boards of Pico Neighborhood Association and Mid-City Neighbors; o Contact with appolnted commissions, businesses and other entities; and local o Neighborhood canvassing by volunteers resulting in 120 neighborhood contacts. To date, two neighborhood meetings have been held, the first on January 19th (12 attended) and the second on February 16th (16 - 3 - attended). Additionally, presentations were made to the Boards of the Pico Neighborhood Association and Mid-city Neighbors, the Housing commission and the social Services commission. BUDGET/FISCAL IMPACT Expenditure authority for this project 1S in account 14-720-264-20093-8900-99377 in the amount of $174,111 and account 01-720-264-20093-8900-99377 1n the amount of $205/889 for a total recommended grant award of $380/000. The CIP account 01-720-264-20093-8900-99377 is a newly created account and therefore must be approved by city Council. The funds for this newly established account will be transferred from the General Fund reserve account earmarked specifically for homeless capital projects. RECOMMENDATION It is recommended that city Council: 1) approve the total amount of $380,000 to be awarded to the Ocean Park Community Center (OPCC)i 2) approve the creation of a new CIP account 01-720-264-20093-8900-99377 in the amount of $205,889i and 3) authorize the City Manager to negotiate and execute an agreement with OPCC for development fees, proj ect and site management, other incidental costs and for the subcontracting out construction to develop a 55 bed transitional housing program located at 1447 16th Street. Prepared by: Susan MCCarthy, Director Julie Rusk, Acting Manager Wendy Bines, Homeless Coordinator commun1ty and Neighborhood Services Division Cultural and Recreat10n Services Department - 4 -