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sr-051110-1hI~ CIS City of Santa 1Vlonica City Council Meeting: May 11, 2010 Agenda Item: I " To: Mayor and City Council From: Andy Agle, Director of Housing and Economic Development Subject: Submittal of a Supportive Housing Program (SHP) Funding Application Recommended Action Staff recommends that Council: 1. Approve a resolution authorizing the submission of a grant application to the United States Department of Housing and Urban Development (HUD) for supportive housing for homeless persons; and 2. Authorize the City Manager to execute related required documents to complete the Supportive Housing Program (SHP) funding grant application. Executive Summary The Housing Authority seeks to apply for new grant funds in the amount of $2.5 million available from HUD to house 50 chronically homeless persons and provide them with comprehensive services that will improve the likelihood that they will remain housed. Background The City currently provides housing and service assistance to homeless households with HUD funding through the SHP, Serial Inebriate, and Shelter Plus Care programs. SHP provides a housing subsidy with linked services to create a permanent housing environment that can support and sustain chronically homeless households with appropriate services. This grant funding would provide vouchers and services to an additional 50 chronically homeless households, prioritizing persons identified as the most vulnerable of our residents. The City's application will be considered by Los Angeles Homeless Services Authority (LAHSA) alongside applications submitted by other participating Los Angeles County jurisdictions. The consolidated LAHSA application will then compete nationally- for 1 McKinney Vento/Continuum of Care HUD funds. The grant, if awarded, would be funded for atwo-year period. Discussion The Housing Authority would provide rental subsidies to 50 chronically homeless and disabled Santa Monica residents while local non-profit service providers, in collaboration with the Human Services Division, would provide wrap-around services. Participants would be required to contribute 30 percent of their income to housing-related expenses. Housing units would be located throughout the community in a scattered site model and not concentrated in any one neighborhood or location. Santa Monica's eight-mile area allows for effective service delivery and the economies of scale that can be achieved in a scattered site model. The program will increase residential stability, life skills, and the possibility of increased income/benefits. The City's recent homeless counts conducted in 2009 and 2010 identified the critical need for increased affordable housing for Santa Monica's homeless households. The Action Plan To Address Homelessness in Santa Monica, the Consolidated Plans, the Housing Element, and the Housing Authority's Five-Year and Annual Plans all identify the need. for housing for homeless persons, especially those who are seniors, disabled, youth and most medically vulnerable on the Service Registry. Up to 5 percent of the grant may be used for general administration; additional grant funds may reimburse operating costs associated with scattered-site housing vouchers. Housing Authority staff will be responsible for eligibility determination, management of the wait-list, unit inspections, subsidy payments, lease executions, evaluation of rent reasonableness, and reporting. It is anticipated that additional staff resources, which would be funded by the grant, would be necessary to administer the program. HUD requires the City to provide a cash match equal to 25 percent of the operations line item and 20 percent of the supportive services line item. If the funding application is 2 successful, the cash match requirements would be met through non-profit service providers and funding allocated through the City's Community Development Program. Financial Impacts & Budget Actions There is no budget impact associated with: he submission of an application for SHP program funds. If the City's funding application is successful, revenues would increase by as much as $2,500,000. Specific budget adjustments, including staffing resources, will be considered following any award of new SHP funds. Prepared by: Barbara Collins, Housing Manager Approved: Andy Agle, Director _ Housing and Economic Development Forwarded to Council: Rod Gould City Manager Attachments: A. Resolution 3 Reference Resolution No. 10471 (CCS).