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HomeMy WebLinkAbout2023-04-13; Housing Commission; ; Homelessness Action Plan Funding PlanMeeting Date: April 13, 2023 To: Housing Commission From: Chris Shilling, Homeless Services Manager Staff Contact: Chris Shilling, Homeless Services Manager Chris.Shilling@carlsbadca.gov, 442-339-2284 Subject: Homelessness Action Plan Funding Plan Recommended Action That the Housing Commission adopt a resolution recommending approval of the Homelessness Action Plan Funding Plan and Housing Trust Fund expenditures therein. Executive Summary On Feb. 7, 2023 the Carlsbad City Council adopted a Homelessness Action Plan to update the city’s homelessness goal, areas of focus, strategies and measurable objectives/benchmarks. The plan is structured to include high-level policy direction and strategies with resource needs presented each year and included in the city’s annual budget. Identifying all services in one consolidated funding plan allows city staff to more easily identify gaps, duplication or alternate funding resources. The funding plan determines the most appropriate funding source for each activity to ensure the most effective use of funding and maximize the impact of the activities within the Homelessness Action Plan. The Housing Trust Fund is recommended for a portion of expenditures in the funding plan. The Housing Commission makes recommendations to the City Council on housing and homeless related matters and Housing Trust Fund allocations. Discussion The Homelessness Action Plan includes high-level policy direction and strategies, with annual resource needs being requested each year during the city’s annual budget process. Funding Plan The total Funding Plan recommended for FY 2023-24 (Exhibit 2) provides funding in the amount of $5,001,921, which includes funds from Community Development Block Grant (CDBG), Permanent Local Housing Allocation (PLHA), HUD grant funding, the Housing Trust Fund (HTF) and the city’s General Fund (GF). The majority of these funds are already included in the city’s baseline budget. In the Homelessness Action Plan approved in February, city staff identified the potential need to request General Fund appropriations of approximately $775,000 in the FY 2023-24 Operating Budget to fund several of the programs in the Plan. Now that we have been awarded the new PLHA funding source, we are now able to reduce that General Fund appropriation request to April 13, 2023 Item #1 Page 1 of 10 $405,000, which will be reflected in the draft FY 2023-24 Operating Budget being presented to City Council next month. Another new funding source has also been added to the resource plan as well. HUD just awarded the city over $468,000 for Rapid ReHousing for people experiencing homelessness. The project will provide short term rental assistance and supportive services. Federal regulations require the grant be used as additional funding on top of existing resources. It is anticipated that this funding should be renewed annually based on the project ranking placement. The funding plan attached presents the staff recommended budget allocation for city staff and contracted services related to addressing homelessness. The majority of funding allocated is for city staff because most social service and benefit programs are funded through the Federal, State and County government. As identified in the Homelessness Action Plan, cities generally do not provide social services. The city coordinates and collaborates with many other agencies supporting the needs of people experiencing homelessness. Services such as health care, food assistance, behavioral health and substance abuse services are important pieces of serving the needs of people experiencing homelessness that are funded through other governmental and philanthropic sources. Direct Services The city does contract for some direct services for prevention efforts and to assist people experiencing homelessness that have been identified as critical services to reduce homelessness in our community. The city has contracts for Outreach & Case Management, Shelter, Benefits & Employment and Housing Assistance. The Homelessness Action Plan Funding Plan identifies appropriate funding sources and amounts for these services. City Services Infrastructure A small percentage of funding is allocated to city services infrastructure which includes Encampment and Abandoned Trash Clean Up and Portable Restrooms. A total of $125,000 from the General Fund is included in the city’s baseline operating budget for these services. 15% 19% 16% 50% Direct Services Outreach & Case Management Shelter Benefits & Employment Housing Assistance April 13, 2023 Item #1 Page 2 of 10 City Staff Funding for city staff dedicated to reducing homelessness and addressing the impacts of homelessness on the community are included in the city’s baseline operating budget. City staff costs include public safety, contract administration, data collection and reporting and coordination of service delivery. The largest portion of this category is allocated to the Police Homeless Outreach Team (HOT). The Police HOT operates seven days per week and is staffed with two dedicated police sergeants and six officers. Activity Approximate Budget Percentage of total funding Outreach and Case Management $315,000 6% Shelter $379,825 8% Benefits and Employment $320,000 6% Housing Assistance $1,007,075 20% Subtotal $2,021,900 40% City Services Infrastructure $125,000 3% Police Homeless Outreach Team $2,244,593 45% Homeless Services $610,428 12% Subtotal $2,980,021 60% TOTAL CITY RESOURCES $5,001,921 100% Funding Sources Previously the city funded homelessness activities through three funding sources including CDBG, the Housing Trust Fund and the city’s General Fund. There are two new funding sources from grant awards being added to the funding plan (PLHA and HUD Grant). Each funding source outside the General Fund has eligible use criteria as well as varying expenditure, monitoring and reporting requirements. City staff analyzed strategies and activities identified in the Homelessness Action Plan against resources available and individual grant requirements to identify an appropriate funding plan for FY 2023-24. The amount available and recommended to be used by other eligible funding sources is $1,026,075. The remaining amount of $ $3,975,846 will be included in the FY 2023-24 draft Operating Budget request, as either included in the baseline budget or as a recommended General Fund appropriation. Community Development Block Grant (CDBG) The CDBG program is a federally funded program created by the Housing and Community Development Act in 1974. Program funding is provided to HUD through annual congressional appropriations. These funds are then distributed to local communicates as block grants. The grant funding available for public services is limited and heavily regulated with high reporting and monitoring burdens. For FY 2023-24 the City of Carlsbad will receive an annual entitlement grant of $545,490, of which only $81,823 is available for public service activities. The five-year plan for CDBG funds identified homeless services as one of the highest priorities for CDBG service funding. Since the CDBG funding available for public services is such a low amount, but requires a high administrative burden, city staff recommend that CDBG funding be used to fund fewer service contracts, but in higher amounts. City staff recommend allocating funding for two contracts for April 13, 2023 Item #1 Page 3 of 10 emergency rental assistance which are essential prevention components of the city’s Homelessness Action Plan. The Community Development Block Grant (CDBG) Advisory Committee has historically recommended funding allocations for CDBG funding. The CDBG Advisory Committee met on March 30, 2023 and made the following funding recommendations: Organization CDBG Advisory Recommendation Staff Recommendation Brother Benno’s $5,000 Funded through other sources Community Resource Center $13,000 $23,000 Interfaith Community Services $43,823 $58,823 Meals on Wheels $5,000 Not Funded Women’s Resource Center $10,000 Funded through other sources Catholic Charities $5,000 Funded through other sources The CDBG Advisory Committee was not presented with the overall Homelessness Action Plan Funding Plan as they are only charged with making recommendations on CDBG funding. However, city staff did explain the funding plan concept and recommended Brother Benno’s and Women’s Resource Center receive funding, but from another funding source other than CDBG funding. The consensus of the CDBG Advisory Committee was to distribute CDBG funding to all organizations who applied due to the perceived uncertainty that all agencies would receive funding awards through the Homelessness Action Plan Funding Plan. The Homelessness Action Plan Funding Plan recommended by staff includes the funding requested by all organizations except for Meals on Wheels. While Meals on Wheels is a valuable service to low-income seniors, this activity is not a service in the Homelessness Action Plan. Brother Benno’s, Catholic Charities and Women’s Resource Center are not recommended to be funded through the CDBG program due to the federal regulations required with the funding. Community Resource Center and Interfaith Community Services have the capacity to meet the strict federal administrative requirements and are recommended to be funded through the CDBG program for their homelessness prevention activities. In the coming months, staff will be presenting an item to the City Council recommending CDBG funding review duties transfer from the CDBG Advisory Committee to the Housing Commission. This recommendation, if approved, would streamline the review process and allow the recommendations for CDBG and HTF to be viewed collectively in the annual Homelessness Action Plan Funding Plan, which includes funding recommendations from all available funding sources. Housing Trust Fund (HTF) The city's Inclusionary Housing Ordinance was established in April 1993 and requires that all residential developments greater than six units restrict 15% of the total number of homes in a April 13, 2023 Item #1 Page 4 of 10 project as affordable to lower income households. Some developments have the option to satisfy a portion or all of their affordable housing obligation through payment of inclusionary housing in- lieu fees or by purchasing affordable housing credits, when available. For the city to receive and use these fee payments, an implementation mechanism was needed to ensure that the funds collected were applied appropriately. As a result, the HTF was established. The HTF also receives revenue from other sources, including interest from loans, housing credit purchase revenues, housing impact fees and interest earned on the fund balance. City Council Policy No. 90 for Administration of the HTF identifies six affordable housing priorities in descending order. The fourth priority for the HTF are homelessness programs. This includes but is not limited to programs and services that provide short-term rental assistance or short-term shelters. Since this fund is intended to increase the supply of housing, city staff recommends using this funding source sparingly for ongoing operations so that the fund can be reserved for capital needs. The Homelessness Action Plan Funding Plan includes limited HTF funding consistent with historical allocation and strategic priorities, as identified by the City Council. Permanent Local Housing Allocation (PHLA) California’s Permanent Local Housing Allocation Program was established in 2017 to provide funding for affordable housing. It is funded by a $75 fee levied on certain real-estate transactions and is expected to generate an ongoing revenue source for jurisdictions throughout the state. On Oct. 18, 2022, the Carlsbad City Council approved the PLHA Program Funding Plan and Application for Funds which allocates all funding to the eligible activity of assisting persons who are experiencing homelessness or at-risk of becoming homeless. This funding has restrictive requirements when it is used for rental assistance and is not eligible to pay rental arrears. The Homelessness Action Plan Funding Plan allocates PLHA funding towards shelter services and rapid re-housing staffing and operational costs. This is the first fiscal year this on- going funding source will be available. Including PLHA funds in the funding plan for homeless services allows the city to reduce the amount of General Funds used to address homelessness, while maintaining service levels. The funding is recommended for inclusions in the draft Operating Budget for FY 2023-24. HUD Grant City staff submitted an application for Rapid Re-housing as part of the San Diego Continuum of Care competitive application. HUD recently announced the city will be getting over $468,000 for the next fiscal year for Rapid Re-housing for people experiencing homelessness. The funding will provide short term rental assistance and supportive services for approximately 40 households. Federal regulations require the grant be used as additional funding on top of existing resources. It is anticipated that this funding should be renewed annually based on the project ranking placement. The funding is recommended for inclusion in the draft Operating Budget for FY 2023-24. General Fund (GF) The city uses General Funds for activities not eligible for other sources or where other eligible sources are too restrictive to be feasible for the activity. The Homelessness Action Plan Funding Plan includes $3,975,846 in General Fund budget which is a decrease of $73,478 from the previous fiscal year. April 13, 2023 Item #1 Page 5 of 10 Environmental Evaluation (CEQA) Pursuant to Public Resources Code Section 21065, this action does not constitute a “project” within the meaning of the California Environmental Quality Act (CEQA) in that it has no potential to cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, and therefore does not require environmental review. Exhibits 1. Housing Commission Resolution recommending approval of the Homelessness Action Plan Funding Plan 2. Homelessness Action Plan Funding Plan April 13, 2023 Item #1 Page 6 of 10 CITY OF CARLSBAD HOMELESSNESS ACTION PLAN FY 2023-24 FUNDING PLAN Exhibit 2 Category Activity Provider GF CDBG HTF PLHA* HUD* FY 23-24 TOTAL FY 22-23 TOTAL Ou t r e a c h & Ca s e Mg m t . Homeless Outreach & Case Management Interfaith Community Services $315,000 $315,000 $315,000 $315,000 $0 $0 $0 $0 $315,000 $315,000 Sh e l t e r La Posada de Guadalupe Catholic Charities Diocese of San Diego $200,000 $200,000 $194,000 Bridge to Housing Shelter Network Alliance for Regional Solutions $40,000 $40,000 $25,000 Women’s Resource Center Women’s Resource Center $10,000 $10,000 $10,000 Emergency Pet Boarding Humane Society $29,825 $29,825 $29,825 Motel Voucher City of Carlsbad HHS $70,000 $70,000 $70,000 Motel Voucher City of Carlsbad PD $30,000 $30,000 $30,000 Shelter $139,825 $0 $40,000 $200,000 $0 $379,825 $358,825 Ho u s i n g A s s i s t a n c e Housing Navigation City of Carlsbad $36,000 $36,000 $72,000 $72,000 Carlsbad Service Center Interfaith $25,000 $25,000 Included below Emergency Rental Assistance Interfaith Community Services $58,823 $58,823 $25,000 Emergency Rental Assistance Community Resource Center $23,000 $23,000 $20,000 Rapid Re-Housing Community Resource Center $175,000 $175,000 $350,000 $350,000 Rental Assistance Brother Benno’s $10,000 $10,000 $10,073 Rapid Re-Housing Not Yet Under Contract $468,252 $468,252 N/A Housing Assistance $221,000 $81,823 $61,000 $175,000 $468,252 $1,007,075 $477,073 CITY OF CARLSBAD HOMELESSNESS ACTION PLAN FY 2023-24 FUNDING PLAN Exhibit 2 Category Activity Provider GF CDBG HTF PLHA* HUD* FY 23-24 TOTAL FY 22-23 TOTAL Be n e f i t s & Em p l o y m e n t Carlsbad Service Center Interfaith Community Services $180,000 $180,000 $204,217 Employment & Benefits Specialist Community Resource Center $140,000 $140,000 $140,000 Benefits & Employment $320,000 $0 $0 $0 $0 $320,000 $344,217 Ci t y S e r v i c e In f r a s t r u c t u r e Encampment & Abandoned Trash Clean Up Urban Corps $100,000 $100,000 $100,000 Porta potties Rocket Johns $25,000 $25,000 $25,000 Homeless Outreach Team City of Carlsbad PD $2,244,593 $2,244,593 $1,929,790 Homeless Services City of Carlsbad HHS $610,428 $610,428 $664,317 City Service Infrastructure $2,980,021 $0 $0 $0 $0 $2, 980,021 $2,719,107 $3,975,846 $81,823 $101,000 $375,000 $468,252 $5,001,921 $4,214,222 *New funding source beginning FY 2023-24 (included in draft Operating Budget).