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SR-301-004 (21) Council MeetingMay 10, 2005 Santa Monica, California : TO: Mayor and City Council FROM: City Staff SUBJECT: Update on the City’s Application to the U.S. Department of Housing and Urban Development under the Housing for People Who are Homeless and Addicted to Alcohol Notice of Funding Availability; Authorizing City Manager to Execute All Necessary Documents Required for Submission of the Application Introduction This report provides an update on the City’s application, in conjunction with local service providers, for approximately $1 million in funding targeting people who are homeless and addicted to alcohol. The bulk of the $1 million would be used to provide rental assistance to as many as 30 chronically homeless persons addicted to alcohol currently living in Santa Monica. Background On March 21, 2005, the U.S. Department of Housing and Urban Development (HUD) announced a $10 million funding initiative for housing for people who are homeless and addicted to alcohol. HUD expects to fund 10 projects nationwide for approximately $1 million each. Funding is available for rental assistance for the target population, with 5% of the grant allowable for housing search activities, and an additional 5% allowable for grant administration. Applicants must match all funds provided through this initiative on at least a dollar-for-dollar basis with supportive services (similar to the Shelter Plus Care funds currently administered by the City). 1 The target population for this grant is chronically homeless persons who have been living on the streets for at least 365 days over the last 5 years, and have a long-term addition to alcohol. Clients that also have mental health issues are eligible for the program as well. In addition, clients served by these funds will be living on the streets at the time of initial contact and will have no history of living in transitional or permanent housing over the last five years. (Short-term stays in emergency shelter, jail, or detox programs do not disqualify clients). The deadline for the application is May 19, 2005. The term of the grant is two years. At the end of the grant term, this grant would be eligible for renewal under HUD’s annual Homeless Assistance competition. Currently, the City and local providers receive renewal funding for numerous projects through this annual competition via an application coordinated by the Los Angeles Homeless Services Authority (LAHSA). Discussion Upon receiving notification of the Housing for People Who are Homeless and Addicted to Alcohol Notice of Funding Availability (NOFA), Human Services Division staff began investigating the feasibility of an application serving approximately 30 homeless, chronic inebriates in the City of Santa Monica. After researching the grant requirements and discussing the NOFA with LAHSA and Santa Monica homeless service providers, as well as staff from Police, Fire, and Housing and Redevelopment, it was determined that the City would be the best applicant for the project. This is in large part due to the City’s experience in administering similar rental subsidy programs (e.g., Shelter Plus Care). In 2 addition, it was determined that the collaborative efforts already in place, and the demonstrated successes of Santa Monica’s chronic homeless pilot, would make an application from the City of Santa Monica stand out even in a highly competitive process through which only ten grants will be awarded nationwide. A planning team of City staff and service providers have worked intensely on this grant application. This includes the CLARE Foundation, and staff from Police, Fire, Housing and Redevelopment, and Human Services to develop the program design and calculate the service match. The grant specifies that although clients need to be living on the street at the time of initial contact, most if not all participants as a result of the grant will need to be stabilized in programs such as emergency shelters, sobering centers and/or residential treatment centers. This process of stabilization is where collaboration between law enforcement and providers is most crucial. The lessons learned and relationships formed in Santa Monica’s chronic homeless initiative will yield outcomes. An additional challenge will be locating units for clients once they have been stabilized, and then continuing to provide the supportive services they need to keep them in housing. The experience of the City’s Housing Authority in administering its 140 units of Shelter Plus Care, and coordinating post-placement services with the local providers will be key in this process. Budget/Financial Impact The application requires that grant-funded rental subsidies be matched dollar-for-dollar by supportive services provided to clients (similar to the Shelter Plus Care funds 3 currently administered by the City). Clients will be provided services through existing outreach, case management and emergency shelter services already funded through the City’s Community Development Program. In addition, services provided to participating clients by the CLARE Foundation, the Department of Mental Health and other service providers which are funded through Los Angeles County and other public and private sources, can be counted as match. The grant provides approximately $25,000 per year to cover expenses incurred by the City’s Housing Authority to administer the rental subsidy. Recommendation City staff recommends that the City Council authorize the City Manager to execute all necessary documents required for the submission of the City’s application to the U.S. Department of Housing and Urban Development under the Housing for People Who are Homeless and Addicted to Alcohol Notice of Funding Availability. Prepared by: Barbara Stinchfield, Director of Community and Cultural Services Julie Rusk, Human Services Manager Stacy Rowe, Human Services Administrator Setareh Yavari, Acting Homeless Services Coordinator 4