SR-9-A (22)
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Councll Meeting: March 23, 1993
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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
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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
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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
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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
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