HomeMy WebLinkAboutAgenda Report - June 29, 2021 B-02 SMAGENDA ITEM
CITY OF LODI
COUNCIL COMMUNICATION
TM
B-2
AGENDA TITLE: Adopt a Resolution Approving the Appropriations for Homeless Emergency
Aid Program ("HEAP") Grant Interest ($71,312) and for the First Year
Permanent Local Housing Allocation ("PLHA") Grant Award ($336,265) to
be Allocated to the HEAP Capital Improvement Plan ("CIP") in Support of
the Harmony Homes Project and Reduce Appropriations in the Emergency
Shelter CIP ($336,265).
MEETING DATE: June 29, 2021
PREPARED BY: Community Development Director
RECOMMENDED ACTION: Adopt a resolution approving the appropriations for
Homeless Emergency Aid Program ("HEAP") grant interest
($71,312) and for the first year Permanent Local Housing
Allocation ("PLHA") grant award ($336,265) to be allocated
to the HEAP Capital Improvement Plan ("CIP") in support of
the Harmony Homes project and reduce appropriations in
the Emergency Shelter CIP ($336,265).
BACKGROUND INFORMATION: In December 2018, the San Joaquin Continuum of Care
("SJCoC") awarded the City $1,250,000 in Homeless
Emergency Aid Program ("HEAP") grant funds for its
permanent supportive housing project. On May 1, 2019, the City Council accepted the award.
Additionally the City submitted an application for Permanent Local Housing Allocation ("PLHA")
funding from the California Department of Housing and Community Development ("HCD") in July
2020 pursuant to the February 2020 PLHA Notice of Funding Availability. An amendment to the
original PLHA application as approved by City Council was submitted to utilize the first year award
of $336,265 towards the Harmony Homes Project.
Project Description:
The City's Harmony Homes project will create four units of permanent supportive housing for
homeless individuals and families. This supportive housing will help unsheltered
individuals/families move into long-term, affordable housing where they can continue their
progress toward stable and independent living.
The project will receive tenant referrals from local organizations including The Salvation Army,
Lodi House, and Women's Center Youth and Family Services, as well as the Housing Authority
of the County of San Joaquin ("HACSJ" ). HACSJ will supply housing choice vouchers to tenants.
Volunteer supportive housing services will be available for tenants, and tenants will sign lease
agreements that include appropriate maintenance of each unit.
APPROVED-:
fo r Stephen Schwabater, City Manager
Request Approval of Appropriations for HEAP Interest and PLHA First Year Allocation To The Harmony Homes Project
June 29, 2021
Page 2 or 2
The City is in the midst of construction of the site improvements for the Harmony Homes Project
contracted through Knife River and under contract with All American Modular for development
and installation of the four modular units. To complete the project, the interest earned on the
HEAP grant funds of $71,312 and the first year award of PLHA grant funds need to be
appropriated.
Staff recommends that the City Council approve appropriations for HEAP grant interest of $71,312
and the first year PLHA grant award of $336,265 to be allocated to the HEAP CIP (HEAP -
21001. Contracts) in support of the Harmony Homes project and reduce appropriations by
$336,265 in the Emergency Shelter CIP (PLHA-21001.Contracts).
FISCAL IMPACT: HEAP grant funds were put in an interest bearing account and has
earned $71,312. The interest earned and the first year PLHA award
of $336,265, will support the completion of the Harmony Homes
project allocated to the HEAP CIP (HEAP -21001. Contracts). To
offset the $336,265 PLHA funds, there will be a reduction in
appropriations from the Emergency Shelter CIP (PLHA-
21001.Contracts).
FUNDING AVAILABLE: Revenue:
HEAP Interest: 35500000.54332 $71,312
PLHA: 35500000.56005 $336,265
Expenditures:
HEAP -20001. Contracts $407,577
PLHA-21001.Contracts -$336,265
Andrew Keys,
Deputy City Manager/Internal Services Director
John R.ella Monica, Jr.
Commu ity Development Direfor
Attachments:
Capital Improvement Plan — Homeless Emergency Aid Program
Capital Improvement Plan — Emergency Shelter (PLHA)
Capital Improvement Plan
FY 2020-2021
Project Title: Homeless Emergency Aid Progr (HEAP) Munis Project Code: HEAP -20001
#84
Section I Description Project Length 05/01/19-06/30/21 Priority
High
Purchase of land, development and installation of Tiny Homes to assist the local unsheltered persons in permanent supportive housing. Grant awarded $1,250,000 plus any interest earned, and $150,000
in General Fund for Acquisition.
Justification/factor driving project
The City of Lodi is experiencing a crisis with its homeless population. Over the last few years, the City has seen an increase in the number of sheltered and unsheltered homeless
individuals. Many of
those in temporary shelters have difficulty finding affordable and safe permanent housing.
Additional Information
When the San Joaquin Continuum of Care announced HEAP notice of funding availability, the Lodi Improvement Committee members reviewed and evaluated, along with input from the town hall
meeting and several homeless service providers, potential projects that would assist Lodi's homeless population while fitting within the grant guidelines. The Committee recommended that the City pursue
a tiny -homes permanent supportive housing project now known as Harmony Homes.
Section II Estimated Project Costs
Expenditure Prior Years FY 19120 FY 20121 FY 21122 FY 22123 FY 23124
FY 24125
Future Yrs.
Total
Estimate Budget
Contracts $ $ 1,250,000 $ 557,577
$ 1,807,577
$
Total Capital Costs $ - $ 1,250,000 $ 557,577 $ - $ - $ -
$ -
$ 1,807,577
$ -
Section III Funding Sources/Methods of Financing
Funding Source(s) Prior Years FY 19120 FY 20121 FY 21122 FY 22123 FY 23124 FY 24125
Future Yrs.
Total
Estimate Budget
355 - HEAP Grant $ $ 1,250,000 $ 71,312
$ 1,321,312
431 - Capital Outlay/General Fund $ $ 150,000
$ 150,000
355 - Permanent Local Housing Allocation $ $ 336,265
$ 336,265
Total Project Financing $ - $ 1,250,000 $ 557,577 $ - $ - $ - $ -
$ -
$ 1,807,577
Section IV Operating Budget Impact
Operating Cost or (savings) Prior Years FY 19120 FY 20121
FY 21122 FY 22123 FY 23124
FY 24125 Future Yrs.
Total
Estimate Budget
Personnel $
$ -
Other Operating Costs $
$ -
Total Operating Impact $ - $ - $ -
$ - $ - $ -
$ - $
$
Capital Improvement Plan
FY 2020-2021
Project Title:
Emergency Shelter I Munis Project Code: PLHA-21001
169
Section I
Description 113roject Length 1 10/01/2020-6/30/2023 113riority
High
Emergency Shelter: PLHA funds will be used for capital
costs for a permanent emergency homeless shelter, including predevelopment, infrastructure and site improvements.
Permanent Supportive Housing: PLHA funds will also be used for capital costs for development and construction of four units of permanent supportive housing for homeless individuals
and families or those
at risk of homelessness.
Justification/factor driving project
The City of Lodi is experiencing a crisis with its homeless population. Over the last few years, the City has seen an increase in the number of sheltered and unsheltered homeless individuals. Many of those
in temporary shelters have difficulty finding affordable and safe permanent housing.
Additional Information
Lodi does not currently have a permanent shelter for people experiencing homelessness. The Lodi Committee on Homelessness, in collaboration with several local and regional homeless experts, has
determined that a low -bar shelter with supportive services is critical to assisting the city's unsheltered homeless population. The proposed emergency shelter facility will provide temporary emergency
shelter for individuals and families that are typically at or below 30 percent of Area Median Income. The emergency shelter will serve as an interim step in assisting the unsheltered homeless population in
securing long-term housing.
Section II
Estimated Project Costs
Expenditure
Prior Years FY 19120
FY 20121 FY 21122 FY 22123 FY 23124 FY 24125 Future Yrs
Total
Estimate
Budget
Contracts
$
$ 1,431,325
$ 1,431,325
Miscellaneous
$
$ 150,000
$ 150,000
Internal Staff
$
$ 100,000
$ 100,000
$
$
$
$
Total Capital Costs
$ $ -
$ 1,681,325 $ $ $ $ $ -
$ 1,681,325
Section III
Funding Sources/Methods of Financing
Funding Source(s)
Prior Years FY 19120 FY 20121 FY 21122 FY 22123 FY 23124 FY 24125 Future Yrs
Total
Estimate Budget
355 - Permanent Local Housing Allocation
$ $ 1,681,325
$ i 1,681,325
$
$
$
$ -
Total Project Financing
$ $ $ 1,681,325 $ $ $ $ $
$ 1,681,325
Section IV
Operating Budget Impact
Operating Cost or (savings)
Prior Years
FY 19120
FY 20121 FY 21122 FY 22123 FY 23124
FY 24125 Future Yrs
Total
Estimate
Budget
Personnel
$
$
Other Operating Costs
$
$ -
$ -
$ -
$ - $ $ $ -
Total Operating Impact
$ $ -
$ -
RESOLUTION NO. 2021-186
A RESOLUTION OF THE LODI CITY COUNCIL APPROVING APPROPRIATIONS
FOR HOMELESS EMERGENCY AID PROGRAM (HEAP) GRANT INTEREST AND
FOR THE FIRST YEAR PERMANENT LOCAL HOUSING ALLOCATION (PLHA)
GRANT AWARD TO BE ALLOCATED TO THE HEAP CAPITAL IMPROVEMENT
PLAN IN SUPPORT OF THE HARMONY HOMES PROJECT AND REDUCE
APPROPRIATIONS IN THE EMERGENCY SHELTER CIP
WHEREAS, the City of Lodi has been awarded a $1,250,000 Homeless Emergency Aid
Program ("HEAP") grant from the San Joaquin Continuum of Care ("SJCoC"); and
WHEREAS, on May 1, 2019, Lodi City Council entered into a Subrecipient Agreement
with SJCoC to accept such HEAP grant, which included a project description, budget, schedule,
and grant requirements; and
WHEREAS, consistent with the Subrecipient Agreement, the grant funds were deposited
into an interest-bearing account and will be used for the Harmony Homes project, which is for
the development of four permanent supportive housing tiny -homes for homeless individuals and
families; and
WHEREAS, the HEAP interest earned is $71,312; and
WHEREAS, the City of Lodi has been awarded a $2,017,590 Permanent Local Housing
Allocation ("PLHA") grant from the California Department of Housing and Community
Development ("HCD") to be distributed over a series of years and allocated to the Emergency
Shelter Capital Improvement Plan ("CIP") and the first annual PLHA award amount is $336,265;
and
WHEREAS, per Amendment No. 1, the PLHA grant funds first-year award may be used
for the construction and development of the Harmony Homes project; and
WHEREAS, staff recommends appropriations for HEAP grant interest in the amount of
$71,312 and the first year PLHA grant award of $336,265 to be allocated to the HEAP CIP
(HEAP -20001. Contracts) in support of the Harmony Homes project and reduce appropriations
by $336,265 in the Emergency Shelter CIP (PLHA-21001.Contracts).
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby approve
appropriations for HEAP grant interest in the amount of $71,312 and the first year PLHA grant
award of $336,265 to be allocated to the HEAP CIP (HEAP -20001. Contracts) in support of the
Harmony Homes project and reduce appropriations by $336,265 in the Emergency Shelter CIP
(PLHA-21 001.Contracts).
Dated: June 29, 2021
I hereby certify that Resolution No. 2021-186 was passed and adopted by the City
Council of the City of Lodi in a special meeting held June 29, 2021, by the following vote:
AYES: COUNCIL MEMBERS — Chandler, Hothi, Khan, Kuehne, and
Mayor Nakanishi
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — None
ABSTAIN: COUNCIL MEMBERS — None
JENNIF CUSMIR
City Cl
2021-186