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SR-6D (22) ~ . Cnt<kcllF6'K/~us 6 -/) J"N ~9'f- u ~ :..;u CARS:CNS:JR:SM:swsheltr.cns.ced City Council Meeting: 6/29/93 Santa Monica, California TO: Mayor and city Council FROM: city Staff SUBJECT: Request to Approve a Resolution of the city council Authorizing the Submittal of a Funding Application to the U.S. Department of Housing and Urban Development for Shelter Plus Care Funding to Assist Homeless Persons INTRODUCTION This report requests the City Counci 1 approve the attached Resolution authorizing the submittal of a funding application to the u. S. Department of Housing and Urban Development (HUD) for Shelter Plus Care funding to assist homeless persons. BACKGROUND HOD has recently issued a Notice of Funding Availability for the Shelter Plus Care program offering $300 million through a nationwide competition. The purpose of the Shelter Plus Care Program is to provide long-term rental assistance in connection with supportive services, funded from sources other than this program, to homeless persons with disabilities. The application deadline is July 9, 1993. Assistance through this program is targeted primarily at homeless persons with disabilities including people with serious mental illness; chronic problems with alcohol, drugs, or both; or have the HIV/AIDS infection; and the families of such persons. The 6 - --t) - 1 - jlJ;" " n ,.... '-' JJJ ---- - .. program is designed to provide housing in a variety of settings, such as group settings or individual units in the community. Assistance is provided through four components: (1) Tenant-based Rental Assistance (TRA), provides grants for rental assistance over a five-year period. Participants reside in housing of their choice except that, where necessary, to facilitate the coordination of supportive services, grant recipients may require participants to live in a specific area. (2) sponsor-based Rental Assistance (SRA) , provides grants for rental assistance through contracts with sponsor organizations over a five-year period. A sponsor may be a private, nonprofit organization. Participants reside in housing owned or leased by the sponsor. (3) Project-based Rental Assistance (PRA), provides grants for rental assistance, through contracts between the grant recipient and owners of existing structures, where the owner agrees to lease the subsidized units to participants. Rental subsidies are provided for a period of five or ten years. To be eligible for 10 years of rental assistance, the owner must complete, at the owner's expense, at least $3,000 of rehabilitation for each unit. (4) Section 8 Moderate Rehabilitation for sinqle Room Occupancy Dwellings for Homeless Individuals {SRO), provides grants for rental assistance in connection with the moderate rehabilitation of SRO housing units. Resources to fund the cost of rehabilitating the dwellings must be obtained from other sources. Rental assistance is available for ten years. DISCUSSION In April, 1992, the city Council directed city staff to initiate efforts to identify non-City funds to implement the recommendations of the Task Force on Homelessness. The Task Force on Homelessness report, A Call to Action, strong1y urges the City to develop a wide range of supportive housing 1inked to services and made up of small to medium sized facilities or rental units scattered throughout the city. The Shelter Plus - 2 - '- Care program, if funded, would assist in fulfilling this recommendation. The city's Housing Authority and community and Neighborhood Services Division will work in close partnership with local nonprofit homeless and housing service providers to implement a comprehensive supportive housing program that seeks to: 1) increase residential stability; 2) increase the skill and income level of the participants; and 3) provide greater self-determination for all those who participate in the program. The primary goal of this program will seek to prevent the recurrence of homelessness through the provision of a comprehensive network of social services and through intensive follow-up and tracking. City staff seeks to apply for approximately $3 to $4 million in funding through a combination of tenant-based and project-based rental assistance program. components. The funding application will provide approximately 100-150 rental assistance certificates and will target between 120-175 homeless persons with disabilities over a five year period. Eight percent (8%) of the total grant funding request will be used by the Housing Authority ... for general administration and implementation of the program. The Housing Authority, through their experience and expertise in administering the Section a rental subsidy program, will administer the Shelter Plus Care rental assistance program. This will include: 1) determining the Fair Market Rent (FMR) , 2) determining the participants' rent share, 3) performing property - 3 - -- ~- - - inspection, 4) preparing and submitting the necessary reports to HUD, 5) ensuring lease-up, and 6) performing annual certifications of income. The following agencies will provide outreach, screening and primary service coordination: CLARE Foundation, Didi Hirsch Community Mental Health Center, Ocean Park Community Center, st. Joseph Center, and Step Up on Second. In addition, other organizations will be integrally involved, including but not limited to: Community Corporation of Santa Monica, Connections for Children, Jewish Vocational service, Santa Monica AIDS/HIV Program, Santa Monica West Mental Health Center, and Venice Family Clinic. A $1 for $1 cash match will be required equal to the total amount of assistance sought through the Shelter Plus Care program. This cash match requirement will be met through the cash value of supportive services provided by each participating organization. The City will not be required to allocate additional City resources to meet this requirement. The grant application due on July 9, 1993, represents the first phase of a two-phased application process. The first phase constitutes a review of the general program concept and implementation plan. This includes a review of the grant application's effectiveness in meeting basic eligibility criteria and how well it can demonstrate an innovative and comprehensive program plan. If the grant application is among the highest ranked during this first phase review, the applicant will be - 4 - ----- ---~ conditionally selected for a grant award. The applicant then must submit a second application as part of a more technical review to document strong financial resource commitments, site control (if applicable), and compliance with all environmental review requirements. Although the City . not required to allocate additional 1S resources as a cash match for this grant application, City staff may seek additional city funds to strengthen service delivery to participants if the grant application is conditionally approved for funding. This additional funding may be allocated from the funds identified to implement the Task Force on Homelessness recommendations approved by city Council in April, 1992. BUDGETARY IMPACT The city will not be required to allocate additional City funds as a result of funding through BUD's Shelter Plus Care program. The cash match requirements will be met through the supportive services to be provided by the participating nonprofit organizations, which may include grant funding allocated through the City's Community Development Program approved by the City Council on June 22, 1993. If awarded, the Shelter Plus Care grant will provide between $240,000 to $320,000 in additional funding to the city over a 5 year period for the administration and oversight of this program to be performed through the Housing Authority. - 5 - . RECOMMENDATION City staff recommends that the City Council approve the attached Resolution: 1) authorizing submittal of a funding application to HUD for Shelter Plus Care funding to assist homeless persons; 2) authorizing the city Manager to act on behalf of the city to sign all necessary documents required to complete the grant application; 3) if funded, authorizing the City Manager to act on behalf of the City to sign all necessary documents required to receive grant funds; and 4} authorizing the City Manager to negotiate and execute contracts with participating organizations to assure service coordination and delivery. In addition, City staff recommends City Council approve, in concept, the allocation of additional city resources if the city's Shelter Plus Care grant application is successfully selected for funding by HUD. Prepared by: Susan McCarthy, Director Julie Rusk, Acting Manager Community and Neighborhood Services Division Cultural and Recreation Services Department Jeff Mathieu, Director Steve Wagner, Housing Coordinator Housing Authority Resource Management Department - 6 - -- --- ---- - RESOLUTION NUMBER 8616 (CCS) (City Counc~l series) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA AUTHORIZING THE SUBMITTAL OF A FUNDING APPLICATION TO THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FOR SB~LTER PLUS CARE FUNDING TO ASSIST HOMELESS PERSONS WHEREAS, the U.s. Department of Housing and Urban Development has issued a NOTICE OF FUNDING AVAILABILITY FOR SHELTER PLUS CARE; and WHEREAS, the city of Santa Monlca lS eligible as a unit of local government; and WHEREAS, the City is therefore eligible to apply for Shelter Plus Care funding; and WHEREAS, the C1 ty Manager can act on behalf of the city of Santa Monica and will sign all necessary documents required to complete the grant application; and WHEREAS, the City of Santa Monica lS capable of and willing to apply for funds and wlll supervise the implementation and operat~on of this program if funded; and WHEREAS, the grant application is consistent with the city's Comprehensive Housing Affordability strategy (CRAS) I NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES RESOLVE AS FOLLOWS: SECTION 1. The city council hereby authorizes the city Manager to prepare and file a grant application, including all understanding and assurances contained therein. SECTION 2. The Clty Council further authorizes the Clty Manager to act in connection with the application, to provlde additional information as may be required, enter into a contract and any amendment thereto, and perform any and all responsibilities in relation to such a contract. SECTION 3. The City of Santa Monica agrees to contract with the U. s. Department of Housing and Urban Development to operate the funded program on its behalf. SECTION 4. The Clty Clerk shall certify to the adoption of this Resolution, and thenceforth and thereafter the same shall be in full force and effect. Approve as to Form: /~L ~-A~~\s-~~ -'J~ePh nawrence ~ ing City Attorney - -- . . Adopted and approved this 29th day of June, 1993 :~ If, b ayor I hereby certify that the foregolng Resolution No. 8616(CCS) was duly adopted by the City Council of the City of Santa Monica at a meet~ng thereof held on June 29, 1993 by the follow~ng Councll vote: Ayes: Councllmembers: Abdo, Genser, Greenberg, Holbrook, Olsen, Rosenstein, Vazquez Noes: Counc~lmembers: None Abstain: Councllmembers. None .ZUJsent Councllmembers: None ATTEST: /' / // ~ /y:2 --?,., ~ . , /" /~~ [rJ, ~/4, --- C~ty Clerk /'