HomeMy WebLinkAbout2023-05-11; Housing Commission; ; Consideration of a $2,200,000 loan commitment to Catholic Charities Diocese of San Diego for the expansion of La Posada de Guadalupe homeless shelterMeeting Date:
To:
From:
Staff Contact:
Subject:
May 11, 2023
Housing Commission
Christian Gutierrez, Housing Services Manager
Christian Gutierrez, Housing Services Manager
christian.gutierrez@carlsbadca.gov, 442-339-2299
Chris Shilling, Homeless Services Manager
chris.shilling@carlsbadca.gov, 442-339-2284
Consideration of a $2,200,000 loan commitment to Catholic Charities
Diocese of San Diego for the expansion of La Posada de
Guadalupe homeless shelter
Recommended Action
Adopt a resolution recommending approval of a $2,200,000 loan commitment ($1,470,621
from the Housing Trust Fund and $729,379 from Permanent Local Housing Allocation) to
Catholic Charities Diocese of San Diego for the expansion of La Posada de Guadalupe homeless
shelter.
Executive Summary
Catholic Charities Diocese of San Diego (Catholic Charities) operates the La Posada de
Guadalupe homeless shelter (La Posada) in the City of Carlsbad. The 100-bed shelter provides
emergency and transitional shelter services to homeless men, including a portion reserved for
farmworkers. The City Council has identified the expansion of the shelter to serve more
individuals experiencing homelessness, including space for women and families, as a priority
project in both the City Council adopted Carlsbad Strategic Plan (2023-2027) and the
Homelessness Action Plan. City staff is recommending a city financial commitment from the
Housing Trust Fund and Permanent Local Housing Allocation Fund toward the project. This
funding commitment will help bring the project closer to construction and make it eligible for
other matching funds. City Council Policy No. 90 requires that the City Council make final
decisions on Housing Trust Fund financial assistance after review from the Housing Policy Team
and Housing Commission.
Discussion
La Posada, located at 2478 Impala Drive, is the only homeless shelter in the City of Carlsbad. It
first opened in 1992 as a cluster of temporary buildings as a result of concerns about migrant
May 11, 2023 Item #1 Page 1 of 8
laborers living in sensitive habitat open spaces in the city. At that time the city donated a
surplus water district office trailer for shelter purposes and contributed $5,300 from a General
Fund Contingency Account to cover costs of all inspection, permit and plan check fees, and the
first year Mello-Roos assessment on the property. In 1997 the city financially assisted Catholic
Charities with $350,000 from the Community Development Block Grant (CDBG) program and
the Housing Trust Fund for predevelopment expenses and to purchase the land. Construction of
the current permanent facility was completed in 2013. Because of the priority to shelter
farmworkers, the city contributed $2 million from the Agricultural Conversion Mitigation Fee
fund and the State of California contributed Farmworker Housing Grant funding to provide 50
beds specifically for farmworkers in addition to 50 beds for homeless men (which may include
farmworkers). The existing campus consists of three main buildings: kitchen and dining hall, a
north dormitory with a congregate setting for approximately 50 homeless men, and a south
dormitory that has some staff offices and semi-private sleeping quarters in a congregate setting
for approximately 50 male farmworkers.
Need
The San Diego region has consistently ranked among the top regions in the nation with the
highest numbers of people experiencing homelessness. According to the 2022 Point in Time
Count there were a minimum of 8,427 people experiencing homelessness on a single night in
February 2022, with almost half living unsheltered. Of those, 1,442 individuals were in North
County. The 2022 Point in Time Count identified 75 unsheltered individuals experiencing
homelessness in Carlsbad.
The 2022 Housing Inventory Count shows limited shelter and housing options within North
County to meet the needs of the North County homeless population. There are only 167 shelter
beds in North County. Of these, 26 beds are only available in the winter through a church
shelter network. This leaves only 141 year-round beds for 1,442 people experiencing
homelessness in North County, with 50 of these beds restricted to single males at La Posada.
Since 2015 the number of permanent shelter beds for the homeless has not significantly
increased in North County.
The city has a State certified 2021-2029 Housing Element, an eight-year plan that describes how
the city will accommodate Carlsbad’s housing needs for residents at all income levels and those
with specialized needs. Expanding the availability of shelter beds to a number that comes closer
to matching the unsheltered population number would meet a significant need identified in the
Housing Element.
Recent support for expansion
The City of Carlsbad has been a collaborative partner with Catholic Charities since La Posada’s
inception. The City Council has identified expanding La Posada as a priority project in both the
City Council adopted Carlsbad Strategic Plan 2023-2027 and the Homelessness Action Plan. City
staff has been working with Catholic Charities toward that goal. The City of Carlsbad previously
granted approximately $183,000 in CDBG funding to Catholic Charities to pay for architectural
and engineering costs to examine the feasibility of expanding the overall building square
footage.
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Proposed Project
The conceptual phase of the predevelopment work is now complete. A conceptual
architectural rendering is attached as Exhibit 2. The proposed project has two potential phases.
Two buildings, the kitchen/dining hall and the north dorm, will increase slightly in square
footage and have interior improvements to accommodate occupancy needs. The south dorm is
proposed to be demolished and reconstructed with a three-story building. The first phase
would consist of improvements to the single-story buildings on the north side and constructing
the south building to three stories, but only completing tenant improvements on the first two
floors. Phase one could potentially provide shelter beds for 100 men and 45 beds for women
and families (145 total people). The third story could be built as a cold or unfinished shell to
contain costs in the first phase. The inclusion of all the tenant improvements on the third floor
could be made in a later phase upon funding availability. Phase two could potentially add
another 54 beds for men, for a total occupancy of 199 people.
The architect has recently submitted a preliminary review application to the Community
Development Department. The preliminary review application provides an opportunity to
identify potential project issues before a formal application is submitted. This will help reduce
permit review times and streamline project processing once the application is officially filed.
Recent amendments to the city’s municipal code to meet State law will allow La Posada to
expand by right in the current zone and only a grading and/or building permit will be necessary.
After any issues are worked out after the preliminary review process, the design team will be
able to complete construction drawings for building permit submittal. At that point the team
will be able to identify a firmer development budget based on current pricing. Based on the
preliminary design and current materials and labor costs the project cost is currently estimated
at $9 to $10 million, depending on the level of improvements on the third floor.
Project Funding
City staff have been actively seeking outside funding alternatives to reduce the amount of
capital needed to be raised so that project construction can start shortly after receiving building
permits. The City of Carlsbad applied for and was awarded $2 million in funds from the County
of San Diego as described below. The city also submitted the project for a FY 2023-24 State
Budget Priority Funding Request. City staff will provide updates on the request if feedback is
received. City staff is also proposing a matching grant application to the State of California for
La Posada. This request is described below. Catholic Charities will still need to mount a
significant capital campaign to raise enough funding before the project could begin
construction.
If all funding sources below are successfully received for the project, the City of Carlsbad will
have assisted the expansion of La Posada with $5,250,000. Of that amount, $3,050,000 is
funding from other agencies. The remaining $2,200,000 in Housing Trust Fund (HTF) and
Permanent Local Housing Allocation (PLHA) Fund dollars are considered local funds but are not
from the city’s General Fund.
May 11, 2023 Item #1 Page 3 of 8
Funder Funding Source Amount Status
County of San Diego County of San Diego Capital
Emergency Housing Solutions
Grant
$2,000,000 Approved
City of Carlsbad
(received from State)
PLHA $729,379 Recommended
City of Carlsbad HTF $1,470,621 Recommended
State of California State HCD LHTF Grant $1,050,000 Recommended in
another agenda item
Potential Funding $5,250,000
Staff is recommending this funding commitment to 1) allow the project to be eligible for State
matching grant funds and 2) solidify a fundraising goal for Catholic Charities’ capital campaign.
City staff is recommending a combination of funding sources to contribute to the project, as
described below.
County of San Diego Capital Emergency Housing Solutions Grant -The city has been awarded a
grant of $2 million from the County of San Diego for the expansion of La Posada through the
Capital Emergency Housing Solutions Grant program. The funding is restricted to capital
expenses. The City Council approved acceptance of the funds as well as authorized an
agreement with Catholic Charities Diocese of San Diego in February 2023. This funding will be
provided from the City of Carlsbad as a pass-through agency to Catholic Charities.
PLHA- 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. Annual allocations to the city will vary depending on the number of
annual real estate transactions, but the city is anticipating receiving on-going revenue of
approximately $375,000 annually. 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. City staff is recommending the city commit approximately two years of PLHA funding
or $729,379 towards the capital needs of La Posada.
HTF- The city established the City of Carlsbad Housing Trust Fund to receive and confirm that
inclusionary housing in-lieu fees or affordable housing credit fees collected were applied only
towards the affordable housing needs of lower-income households. The HTF also receives
revenue from other sources, including interest from loans, loan repayments, 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 which includes
short term shelter. Since this fund is intended to increase the supply of housing, city staff finds that
this funding for the capital needs of expanding shelter is appropriate. As of June 2022, the Housing
May 11, 2023 Item #1 Page 4 of 8
Trust Fund had an available fund balance of $10,680,198. City staff is recommending the city
commit $1,470,621 from the HTF towards the capital needs of La Posada.
State HCD LHTF Grant- HCD released a Notice of Funding availability of approximately $53
million in Local Housing Trust Fund (LHTF) program funds. The State LHTF program provides
matching funds to eligible applicants for the creation of affordable housing and homeless
shelters. The City of Carlsbad is an eligible applicant based on several affordable housing and
emergency shelter projects which have received, or are being considered for, local funding
investments from our city Housing Trust Fund.
City staff will be asking the City Council to authorize a LHTF grant application and include La
Posada on the list of eligible projects to receive a State matching grant. If the City Council votes
affirmatively to provide $1,470,621 from the HTF to La Posada, the project can be included in
the list of eligible projects in the matching grant application to the State. The city would be
requesting $1,050,000 in State funds to match the $1.47 million in funding the city is
considering contributing from the HTF to the project. The matching funds requested from the
State are only based on the HTF contribution and are at a rate that maintains a competitive
score, given the grant scoring criteria. If the HTF allocation is not made by the City Council the
La Posada expansion project is not eligible to be on the list of projects for State matching funds.
The LHTF application is only issued annually. If the City Council declines to approve a HTF
commitment to La Posada, the potential to be competitive for the remaining LHTF funding is
greatly diminished.
Additional Review
City Council Policy No. 90 requires that the City Council make final decisions on Housing Trust Fund
financial assistance after review and recommendation by the Housing Policy Team and the
Housing Commission. The city’s Housing Policy Team, composed of staff representatives from
Finance, Community Development, Housing & Homeless Services and the City Attorney’s office,
recommended the HTF commitment on May 1, 2023.
As identified, the La Posada expansion project is in the early stages and requires additional
permit approvals and funding. The timeline for potential expansion is dependent on a
successful capital fundraising campaign and city staff are unable to estimate when this can be
accomplished. The goal is to begin construction in 2024. City staff will periodically update the
City Council on the progress of the project and other funding recommendations and awards.
Exhibits
1.Housing Commission Resolution
2.Architectural rendering
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La Posada de Guadalupe
3D Rendering
Preliminary Planning Application
Exhibit 2
May 11, 2023 Item #1 Page 8 of 8
Expansion of La Posada de Guadalupe
Homeless Shelter
Christian Gutierrez, Housing Services Manager
Chris Shilling, Homeless Services Manager
Housing & Homeless Services
May 11, 2023
TODAY’S PRESENTATION
•Background
•La Posada Expansion
•Proposed Project
•Staff Recommendation
Background:
La Posada Shelter
Opened in 1992
Congregate Shelter
Provides shelter for up to 100 individuals
La Posada Expansion:
•Since 2014, homelessness has increased by 55% in Carlsbad (PIT)•North County has only 167 shelter
beds available, leaving only 141
year-round beds
La Posada Expansion:
•City of Carlsbad has been a collaborative
partner with Catholic Charities since La Posada’s inception•City granted $183,000 in CDBG funding
to Catholic Charities for architectural and
engineering
La Posada Expansion:
•City of Carlsbad 2021-2029 Housing Element •Expansion of shelter beds would
meet need identified in the
Housing Element
Proposed Project:
•Two potential phases•The project will increase occupancy for
men, women, and families experiencing homelessness
Staff Recommendation
•Adopt the Resolution approving the commitment
of $2,200,000 for a forgivable loan to Catholic
Charities Diocese of San Diego for the expansion
of La Posada de Guadalupe homeless shelter