HomeMy WebLinkAboutAgenda Report - October 6, 2021 C-13AGENDA ITEM C � 13
CITY OF LODI
COUNCIL COMMUNICATION
TM
AGENDA TITLE: Adopt a Resolution Accepting the Homeless Housing, Assistance, and
Prevention (HHAP) Grant and Appropriating Grant Funds in the Total Amount
of $400,000
MEETING DATE: October 6, 2021
PREPARED BY: Community Development Director
RECOMMENDED ACTION: Adopt a resolution accepting the Homeless Housing, Assistance,
and Prevention (HHAP) grant and appropriating grant funds in
the total amount of $400,000.
BACKGROUND INFORMATION: The State of California Homeless Coordinating and Financing
Council (HCFC), and the Business, Consumer Services and
Housing Agency (BCSH) has made available approximately
$650 million in HHAP funding. The HHAP program was established under Assembly Bill 101 (Chapter
159, Statutes of 2019) and, signed into law by Governor Gavin Newsom on July 31, 2019. HHAP is a
grant program designed to support the regional coordination and expansion of development to
increase local jurisdictions' capacity to address immediate homeless challenges throughout the State.
Spending must be informed by a best practices' framework focused on moving homeless individuals
and families into permanent housing and ensuring those individuals and families maintain their
permanent housing. A key requirement of the HHAP program includes coordination between funded
jurisdictions to identify their share of the regional need to address homelessness, and how the
requested funds will help meet the jurisdiction's share of that need. The intent of the HHAP program
funds is solely to expand or increase services and housing capacity for homeless individuals.
The Multi -Jurisdictional Agencies (SJCOC, City of Stockton, and San Joaquin County) have received
an HHAP round one and round two allocations. HHAP round one had a combined allocation of funds
of $12,430,905, HHAP round two was $5,833,034. These entities collaboratively made those funds
available to community organizations and jurisdictions, such as the City of Lodi, through a joint local
Notice of Funding Availability (NOFA) process to allocate funds to programs and projects that reduce
homelessness and increase permanent housing opportunities for homeless households and those at
risk of homelessness across San Joaquin County. The Multi -Jurisdiction Agencies released the NOFA
for HHAP round one on August 3 with an application deadline of September 10, 2020.
City staff applied for two (2) separate applications (1) One project focused on the construction and
operations of the for Harmony Homes Project and the second (2) grant focused on the construction
and operational costs of a new Navigation/Access Center. Both applications supported HHAP goals of
expanding services and housing for homeless individuals or those at risk, within San Joaquin County,
which includes the City of Lodi.
The number of applications and funding requested for the HHAP round one exceeded SJCoC
available HHAP grant funds. Once HHAP round two funding was issued by the State to SJCoC,
SJCoC worked to fund some of the remaining applications. The City of Lodi was awarded $400,000
APPROVED: Steve Schwabauer
Stephen Schwabauer, City Manager
HHAP Grant
October B, 2021
Page 2 of 2
via the HHAP round two allocation for the Harmony Homes project at the August 24, 2021 Board of
Supervisors meeting.
With the award of this funding, the funding currently allocated from the Permanent Local Housing
Allocation Grant (PLHA) in the amount of $336,265 can be utilized for the City's Access Center project
and the respective Capital Improvement Plans will be adjusted.
Staff is requesting that City Council adopt a resolution accepting the HHAP grant and appropriating
grant funds in the total amount of $400,000
FISCAL IMPACT: The HHAP grant will provide $400,000 in funds to support the Harmony
Homes Project. It is a State Grant awarded through the County SJCoC.
The PLHA grant will be removed from the HEAP -20001 Capital
Improvement Plan and will be moved back to the PLHA-21001 Capital
Plan.
FUNDING AVAILABLE: HHAP Grant:
Revenue: 35500000.56005 $400,000
Expenditures: 35599000.77020 $400,000
Andrew Keys
Andrew Keys
Deputy City Manager/Internal Services Director
John . Della Monica, Jr.
Com unity Development Directitr
Attachments:
1. Capital Improvement Plan — Homeless Emergency Aid Program
2. Capital Improvement Plan — Permanent Local Housing Allocation
3. San Joaquin County Board of Supervisors HHAP Board Agenda Item
Signature: 00AMAW XQ11P. Signature:
StafftFr(Sep 29, 202110:15 PDT)
Email: akeys@lodi.gov Email: sschwabauer@lodi.gov
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 $ 63,735
$ 1,871,312
$
Total Capital Costs $ - $ 1,250,000 $ 557,577 $ 63,735 $ - $ -
$ -
$ 1,871,312
$ -
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)
355 - HHAP $ $ 400,000
$ 400,000
Total Project Financing $ - $ 1,250,000 $ 557,577 $ 63,735 $ - $ - $ -
$ -
$ 1,871,312
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 $ -
$ - I $ - $ - $
I $
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 19/20
FY 20/21 FY 21/22 FY 22/23 FY 23/24 FY 24/25 Future Yrs
Total
Estimate
Budget
Contracts
$
$ 1,431,325 $ 336,265
$ 1,767,590
Miscellaneous
$
$ 150,000
$ 150,000
Internal Staff
$
$ 100,000
$ 100,000
Total Capital Costs
$ $ -
$ 1,681,325 $ 336,265 $ $ $ $ -
$ 2,017,590
Section III
Funding Sources/Methods of Financing
Funding Source(s)
Prior Years FY 19/20 FY 20/21 FY 21/22 FY 22/23 FY 23/24 FY 24/25 Future Yrs
Total
Estimate Budget
355 - Permanent Local Housing Allocation
$ $ 1,681,325 $ 336,265
$ 2,017,590
$
$
$
$ -
$
$ -
Total Project Financing
$ $ $ 1,681,325 $ 336,265 $ $ $ $
$ 2,017,590
Section IV
Operating Budget Impact
Operating Cost or (savings)
Prior Years
FY 19/20
FY 20/21 FY 21/22 FY 22/23 FY 23/24
FY 24/25 Future Yrs
Total
Estimate
Budget
Personnel
$
$
Other Operating Costs
$
$ -
$ -
$ -
$ - $ $ $ -
Total Operating Impact
$ $ -
$ -
ClUIN
2°Ac° SANsJOAQUIN
COUNTY
Greatness grows here.
lFOR
August 24, 2021
Board of Supervisors
County Administration Building
Stockton, CA
Dear Board Members:
Neighborhood Preservation
A Division of Health Care Services
Greg Diederich, Agency Director
Chris Becerra, MA III
Approve Awards for Homeless Housing, Assistance, and Prevention Program
Round 2
RECOMMENDATION
It is recommended that the Board of Supervisors approve awards from Round 2 of the
Homeless Housing, Assistance and Prevention (HHAP) program.
REASONS FOR RECOMMENDATION
The HHAP grant program was enacted by Assembly Bill 101, signed into law by
Governor Gavin Newsom on July 31, 2019. Round 1 was intended to provide local
jurisdictions with funds to support regional coordination and expand or develop local
capacity to address their immediate homelessness challenges. Rounds 2 and beyond
are intended to provide support to local jurisdictions to continue to build on regional
collaboration developed through previous rounds of Homeless Coordinating and
Financing Council funding and to develop a unified regional response to homelessness.
Currently the State has announced a third and fourth round of funding under HHAP and
may include successive rounds of funding in future budgets.
On November 13, 2020, the State released a NOFA for Round 2 with an application
deadline of November 30, 2020. Three entities within the County applied for and were
awarded the following Round 2 allocations:
Entity Total Allocation Percentage
1. San Joaquin County $1,312,598 23%
2. City of Stockton $3,053,944 52%
3. San Joaquin Continuum of Care (SJCoC) $1,466,492 25%
HHAP Total: $5,833,034 100%
Because the HHAP program requires a "demonstration of regional collaboration", the
three entities worked in close coordination in Round 1 to respond to the State NOFA,
and to jointly develop and implement a local NOFA. At the same time, the three entities
engaged housing and homelessness consultants Homebase to develop a written
1810 E. Hazelton Avenue I Stockton, California 95205 1 (209) 468-3121 1 www.sjgov.org/commdev
Board of Supervisors
Neigh/Pres - HHAP Round 2 Allocations Page 2
strategic plan to address homelessness, intended in part to support the effective
regional implementation of HHAP funds. As part of this collaborative process, the State
required the submission of budget estimates, which took into account how each entity
worked with the others to implement funds regionally.
After several months of community engagement lead in part by Homebase, the three
entities determined their community-based needs and corresponding funding priorities
from feedback and interviews with over 200 participants countywide. These priorities
are connected to the allowable activities of HHAP in order to provide the State with a
picture of how funds might be implemented regionally. For the local joint NOFA
(discussed below), the HHAP activities were aligned with the goals highlighted in the
strategic plan to ensure applicant proposals requested funds that would be allocated to
identified community-based needs. Under the HHAP and in coordination with State
staff, communities can reallocate HHAP funds to eligible activities in accordance with
shifting priorities and the capacity of local organizations to implement the funds. No
less than 8% of funds must be spent on projects serving homeless youth.
.lnint AlnFA
The HHAP requires that jurisdictions allocated funds demonstrate regional collaboration
in the implementation of HHAP funds. To satisfy this requirement, a local funding
application was developed by representatives of San Joaquin County, the City of
Stockton, and the San Joaquin Continuum of Care. To facilitate the complexities of this
joint process, the City of Stockton engaged Neighborly, a web -based grants
management service, to host the online application. Local applicants were able to apply
for all three sources in a single proposal. Following the closure of the application
deadline on September 10, 2020, an Ad Hoc Review Committee made up of seven non-
applicants was formed to review and score applications in Neighborly. Thirty-four
applications requesting a total of $38,924,821.06 were scored and ranked by the
Review Committee.
Review Results
On September 18, 2020, an Ad Hoc Review Committee was provided administrative
access to Neighborly to begin the review and scoring process. The Committee was
made up of seven stakeholders from throughout the County. Special care was taken to
ensure that no conflicts of interest existed between reviewers and applicants. Scores
were tabulated and proposals were ranked, with representatives of the County, City,
and SJCoC meeting on October 15, 2020, to discuss and finalize results. Proposals
varied according to project type, and most were scored on a 200 points scale.
Applicants proposing capital projects were required to submit an additional
supplemental questionnaire, reflecting the more complex nature of these types of
projects and to provide reviewers with essential information upon which to base scoring
decisions, adding 50 potential points for capital project proposals. Scoring was
converted to a percentage of total points which allowed staff to rank projects overall
1810 E. Hazelton Avenue I Stockton, California 95205 1 (209) 468-3121 1 www.sjgov.org/commdev
Board of Supervisors
Neigh/Pres - HHAP Round 2 Allocations Page 3
regardless of point totals. Of the 34 proposals reviewed by the Ad Hoc Review
Committee, 8 proposed permanent housing projects, 2 proposed serving homeless
youth, and 13 proposed capital projects for a variety of eligible activities including
shelter and housing. Other proposed activities included shelter, outreach and
coordination, rental assistance, landlord incentives, and rapid rehousing. Most projects
proposed multiple eligible activities; for example, several projects proposed outreach
and coordination activities in conjunction with shelter or permanent housing.
Award Recommendations
The HHAP Round 2 NOFA required Counties, Cities, and CoCs to engage in a
comprehensive gaps assessment analyzing the local system of housing and services
for the homeless prior to accepting funds, and to specify which needs identified through
the gaps assessment would be met through the use of HHAP Round 2 in order to
equitably close those gaps. Because San Joaquin County allocated nearly all of its
HHAP Round 1 funding to shelter activities, staff is recommending allocations in HHAP
Round 2 supporting housing activities, which will meet the requirements of HHAP
Round 2 to close gaps and complement the Board's previous HHAP investments in
shelter by expanding exits for those projects. Considering both the project rankings and
the requirements of the State, it is recommended that the County's HHAP Round 2
allocation be awarded to the top -scoring housing -related proposals as follows:
• City of Lodi: $400,000
o "Harmony Homes"
o Five -unit "tiny homes" permanent supportive housing project
o Estimated completion: Summer 2022
• Central Valley Low Income Housing Corporation: $448,632
o "Town Center Studios"
0 39 -unit permanent supportive housing project
o Estimated completion: End of calendar year 2021
San Joaquin County Administration Set -Aside: $91,881
Sub -Total not including youth set-aside: $940,513
Further, to meet the State requirement to allocate no less than 8% of funds to projects
serving homeless youth, it is recommended that the following project be funded as
follows:
• Children's Home of Stockton: $372,085
o Outreach and supportive services for homeless youth aged 12 — 18
o Project will begin immediately upon funding
1810 E. Hazelton Avenue I Stockton, California 95205 1 (209) 468-3121 1 www.sjgov.org/commdev
Board of Supervisors
Neigh/Pres - HHAP Round 2 Allocations Page 4
Grand Total: $1,312,598
FISCAL IMPACT
HHAP allows for no more than 7% of allocations to be used for administrative costs
associated with implementing and managing the program. The County's share of
administrative costs is $91,881.86 from the County allocation, and $102,654.44 from the
CoC allocation, for a total of $194,536.30. The SJCoC Board of Directors have yet to
determine their HHAP-2 local awards. Unused funds set aside for administration can be
redirected for project implementation prior to the end of the program. Counties must
submit confirmation that 100% of program funds have been contractually obligated by
May 31, 2023. There is no impact on the County General Fund.
ACTION TO BE TAKEN FOLLOWING APPROVAL
Neighborhood Preservation staff will work with the SJCoC and the City of Stockton to
ensure the allocation of HHAP Round 2 funds as awarded.
Sincerely,
Greg Diederich
Health Care Services Director
GD:AC
c: Clerk of the Board for 08/24/2021 Agenda
San Joaquin Continuum of Care
City of Stockton
Reviewed by County Administrator's Office: Reviewed by County Counsel's Office:
'14 /� VLd- z-- �-�-4e4D
Conni 08/09/2021 rk Y4yles, Countyunse] 08/09/2021
1810 E. Hazelton Avenue I Stockton, California 95205 1 (209) 468-3121 1 www.sjgov.org/commdev
RESOLUTION NO. 2021-274
A RESOLUTION OF THE LODI CITY COUNCIL ACCEPTING THE CALIFORNIA
HOMELESS COORDINATING AND FINANCING COUNCIL (HCFC), AND THE
BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY (BCSH)
HOMELESS HOUSING, ASSISTANCE, AND PREVENTION GRANT AWARDED BY
THE SAN JOAQUIN COUNTY BOARD OF SUPERVISORS; AND FURTHER
APPROPRIATING FUNDS
WHEREAS, the State of California Homeless Coordinating and Financing Council
(HCFC), and the Business, Consumer Services and Housing Agency (BCSH) has made
available approximately $650 million in Homeless, Housing Assistance and Prevention Program
(HHAP) funding. The HHAP program was established under Assembly Bill 101 (Chapter 159,
Statutes of 2019), and signed into law by Governor Gavin Newsom on July 31, 2019; and
WHEREAS, the Multi -Jurisdiction Agencies of San Joaquin Continuum of Care
(SJCOC), City of Stockton, and San Joaquin County have received a combined allocation of
HHAP funds of $12,430,905 for Round One; and
WHEREAS, on November 13, 2020, the State released a Notice of Funding Availability
(NOFA) for Round Two with an application deadline of November 30, 2020; and
WHEREAS, the Multi -Jurisdiction Agencies of San Joaquin Continuum of Care
(SJCOC), City of Stockton, and San Joaquin County have received a combined allocation of
HHAP funds of $5,833,034 for Round Two; and
WHEREAS, the Multi -Jurisdiction Agencies (San Joaquin Continuum of Care, City of
Stockton, and San Joaquin County) issued a NOFA dated August 3, 2020, for HHAP funds; and
WHEREAS, the City of Lodi applied for two separate applications for construction,
personnel, and/or operating costs for a proposed navigation/access center and Harmony
Homes project; and
WHEREAS, the Multi -Jurisdiction Agencies and the San Joaquin County Board of
Supervisors approved HHAP Round Two funding allocations at the August 24, 2021 Board of
Supervisors Meeting, subject to the terms and conditions of the Guidelines, NOFA, Program
requirements, the Standard Agreement and other contracts between the Multi -Jurisdiction
agency and HHAP grant recipients; and
WHEREAS, the City of Lodi was awarded $400,000 of HHAP Grant funds; and
WHEREAS, staff recommends appropriating funds:
Revenue: 35500000.56005 $400,000
Expenditures: 35599000.77020 $400,000
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby accept
the California Homeless Coordinating and Financing Council (HCFC), and the Business,
Consumer Services and Housing Agency (BCSH) Homeless Housing, Assistance, and
Prevention grant of $400,000 awarded by the San Joaquin County Board of Supervisors; and
BE IT FURTHER RESOLVED that the Lodi City Council does hereby appropriate funds
in the amount of $400,000 as set forth above.
Dated: October 6, 2021
I hereby certify that Resolution No. 2021-274 was passed and adopted by the City
Council of the City of Lodi in a regular meeting held October 6, 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 R CUSMIR
City Clerk
2021-274