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Home My WebLink About2022-10-13; Applications for Funding to Support Homeless Work Plan (Districts - All); Barberio, GaryTo the members of the!: CllY COUNCIL DatelO[r3wcA~CC ✓ CM _dAC _LDCM (3) ~ Council Memorandum October 13, 2022 To: From: Via: Honorable Mayor Hall and Members of the City Council Gary Barberio, Deputy City Manager, Community Services Mandy Mills, Director of Housing and Homeless Services Chris Shilling, Senior Program Manager, Homeless Services Jessica Klein, Program Manager, Hom~ Services Geoff Patnoe, Assistant City Manage~ {cityof Carlsbad Memo ID# 2022113 Re: Applications for Funding to Support Homeless Work Plan (Districts -All) This memorandum provides information related to funding for projects and programs identified in the work plan to address the City Council goal related to homelessness. Background On March 11, 2021, the City Council established a goal to reduce the unsheltered homeless population. The City Council approved a comprehensive package of initiatives in a work plan, strategically designed to make both short-term and long-term impacts intended to help meet the City Council's goal. Discussion In an effort to offset the city costs associated with the work plan, city staff has been identifying outside funding sources that may be available for such projects and programs. City staff are pursuing a number of applications for funding that could augment existing services. If funding is awarded, city staff will present funding allocation and appropriation to the City Council for consideration and approval. The funding applications are described below: County of San Diego The City Council has expressed a desire to expand the capacity of the La Posada de Guadalupe shelter {La Posada) to serve more individuals experiencing homelessness, including space for women and children. This is included as a priority in the homelessness work plan. City staff have been in conversations with Catholic Charities Diocese of San Diego about potential expansion of the building as they own and operate the La Posada shelter. Should the physical expansion of the existing facility prove feasible, Catholic Charities would need to raise capital before they could proceed. The County of San Diego recently made $10 million of funding available through a competitive application process for local jurisdictions to create new and permanent emergency shelter solutions. City staff evaluated the original application criteria for the potential expansion of La Community Services Branch Housing & Homeless Services Department 1200 Carlsbad Village Drive I Carlsbad, CA 92008 I 442-339-2810 t Council Memo -Applications for Funding to Support Homeless Work Plan (Districts -All) October 13, 2022 Page 2 Posada. City staff did not submit an application in the original application round because the threshold requirement for project readiness was infeasible. Catholic Charities was also concerned about the lack offunding available for operational costs as a two-year commitment is required as a condition of funding acceptance. Only three cities applied for the funding in the original application, Oceanside, Vista and San Diego. Approximately $5 million of funding remains available so the County of San Diego has made a second application period available for the funds. Funding is available to incorporated city jurisdictions only and must be used on one-time, capital projects resulting in long-term and sustainable overnight shelter solutions for persons experiencing homelessness. Ongoing operational and indirect costs will not be considered for funding through this grant program. Projects may include but are not limited to emergency shelters, safe parking lots, sleeping cabins and tiny homes, or the expansion of capacity of an existing shelter. Based on feedback from the first application round, the County of San Diego decreased the requirements and criteria for competitive scoring related to project readiness. Based on the application changes, city staff submitted an application for $2 million to support the expansion of la Posada. While $2 million is not enough funding to complete the expansion, it could provide a significant portion of project costs and reduce the time necessary for a capital campaign to secure other funding. It is anticipated that more juridictions will apply in this application round given the reduced requirements. Applications were due October 11, 2022. The County intends to notify jurisdictions by mid November; however, additional documentation may be needed to make final awards. If the City of Carlsbad were to receive a Notice of Intent to Award, city staff would bring a resolution to the City Council for their consideration to accept the funds and agree to specified conditions of funding. Regional Continuum of Care The Department of Housing and Urban Development (HUD) requires all Continuums of Care (CoCs) to designate a Collaborative Applicant which is responsible for managing the coordinated applications for HUD funds for homeless services. In San Diego, the Collaborative Applicant is the Regional Task Force on Homelessness (RTFH). Annually the RTFH compiles a regional application for HUD funding. The list of project renewals typically get funded, with few opportunities for new projects to be added. Recently there was a unique opportunity to reallocate funds from slow moving or completed projects. City staff submitted an application in the amount of $440,000 for Rapid Rehousing. The Coe Rating and Ranking Subcommittee included Carlsbad's application in the regional application, which means there is a high chance this activity will be funded. The City Council previously allocated $350,000 from the General Fund towards a contract with Community Resource Center for Rapid Rehousing through January 2023. If awarded funding, the additional HUD funds could be used for additional assistance starting July 2023. Council Memo -Applications for Funding to Support Homeless Work Plan (Districts -All) October 13, 2022 Page 3 Additionally, the HUD recently issued a Supplemental Notice of Funding Opportunity to Address Unsheltered and Rural Homelessness (NOFO). The NOFO is highly competitive nationally and locally as well. The RTFH received more than $47,000,000 in requests for just over $22,000,000 available. All projects were to be new, and renewal or expansion projects were not eligible. City staff submitted an application to provide supportive services for individuals experiencing homelessness. Carlsbad's application received a high ranking in the regional review and will therefore be included in the application. The San Diego region qualifies for fewer bonus points than other CoCs and it is expected that only 10 of the 44 regions in the state of California will be selected to receive funding. As part of the same NOFO, the HUD announced a non-competitive allocation strategy for new Stability Vouchers. Under the program, the HUD will award approximately 4,000 new rental assistance Stability Vouchers to enable communities to partner with health and housing agencies to coordinate their efforts to reduce homelessness. City staff is working with the RTFH to demonstrate that any awarded Stability Vouchers will be matched with CoC-funded supportive services. A Registration of Interest will be submitted to the HUD for consideration. The non-competitive allocation formula will be based on estimates of households experiencing or at risk of homelessness by geography and housing agencies will be invited to apply. If any of these applications are awarded funding, city staff will bring a resolution to the City Council for consideration that would accept and appropriate the funds. Permanent Local Housing Allocation In 2017, the California Legislature passed Senate Bill 2 (SB 2) Planning Grants Program, which established a permanent source of funding for affordable housing in California. The program, now known as the Permanent Local Housing Allocation (PLHA) program, is funded by a $75 fee levied on certain real estate transactions and is expected to generate a permanent, ongoing revenue source for jurisdictions throughout the State. The City of Carlsbad is an entitlement jurisdiction and is estimated to receive $1.6 million in PLHA funds for the five-year period of 2019-2023. In order to access the funds, applicants must develop a five-year plan identifying the intended use of funds. City staff is bringing forward a draft five-year plan to the City Council on October 18, 2022, for review and approval. City staff is recommending PLHA funding be allocated to the eligible activity of Assisting persons who are experiencing or at-risk of homelessness. The PLHA funds can provide an ongoing revenue source outside of the city's General Fund to address homelessness. Next Steps Staff will provide any news on funding announcements in upcoming monthly Council Memorandums and quarterly reports to the City Council. City staff anticipates returning to the City Council in the next few months to consider an update to the City's Homeless Response Plan Council Memo -Applications for Funding to Support Homeless Work Plan (Districts -All) October 13, 2022 Page 4 and an associated work plan which will recommend programs and projects to address homelessness. cc: Scott Chadwick, City Manager Cindie McMahon, City Attorney Mickey Williams, Chief of Police Paz Gomez, Deputy City Manager, Public Works Laura Rocha, Deputy City Manager, Administrative Services Zach Korach, Director of Finance