REPORT TO THE HOUSING AUTHORITY
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1 REPORT TO THE HOUSING AUTHORITY DATE ISSUED: May 5, 2014 REPORT NO: HAR ATTENTION: SUBJECT: Chair and Members of the Housing Authority of the City of San Diego For the Agenda of June 10, 2014 COUNCIL DISTRICT: Citywide REQUESTED ACTION Approve funding to pay occupancy and administrative expenses for 10 transitional housing programs in Fiscal Year 2015, with the option to continue funding for up to two additional years depending on funds available, compliance with grant agreement requirements, and program performance. STAFF RECOMMENDATION That the Housing Authority of the City of San Diego (Housing Authority) take the following actions: 1) Approve the proposed revision to the proposed Fiscal Year (FY) 2015 San Diego Housing Commission (Housing Commission) Budget to add $621,764 in Housing Impact Fee revenues to the Transitional Housing for the Homeless budget for grants to nonprofit organizations operating transitional housing programs. The new budget for transitional housing activities will total $1,437,303, of which $1,340,602 will be used for grants (including $200,000 for Cortez Hill Family Center) and $96,701 will be used for administration; 2) Approve the award of 10 grants in an aggregate amount not to exceed $1,140,602 for FY 2015 (See Attachment 1 for a summary of the 10 recommended programs); 3) Authorize additional one-year renewal options for FY 2016 and FY 2017 for each grant agreement respectively, contingent upon the availability of funding, compliance with all grant agreement requirements, and program performance; and 4) Authorize the President & Chief Executive Officer, or designee, to execute all necessary documents and instruments that are necessary and/or appropriate to implement these approvals, in a form approved by General Counsel, and to take such actions necessary and/or appropriate to implement these approvals. SUMMARY As part of its Housing Trust Fund (HTF) oversight responsibilities, the Housing Commission is required by Section of the San Diego Municipal Code to expend at least 10 percent of each year s HTF program funds for transitional housing activities. The proposed $1,140,602 in HTF funding is expected to be committed in FY 2015 and exceeds the required minimum. The proposed funding will support nonprofit transitional housing providers, which serve veterans, chronically homeless individuals,
2 Page 2 homeless youth, families, victims of domestic violence, individuals with mental illness, serial inebriates, and other single adults. The Housing Commission issued a Request for Proposals (RFP) from Nonprofit Organizations to Operate Transitional Housing for the Homeless on January 15, 2014, announcing that approximately $500,000 was available for FY 2015 transitional housing operations. The RFP introduced new program elements designed to maximize program outcomes. For example, grantees will be required to report on and meet designated outcomes related to client income, exits to permanent housing and housing stability. High-performing programs (e.g., those that exceed the outcomes) may be eligible for performance incentive awards on a quarterly basis during the fiscal year. Execution of renewal options may be determined by project performance in the preceding year. If grantees do not achieve the stated outcomes, grant agreements may not be renewed, and those funds may be reallocated. During the RFP process, 10 proposals were received, requesting a total of $1,013,868; all proposals were deemed responsive. A Proposal Review Committee (the Committee) was utilized to evaluate the applications according to criteria outlined in the RFP and to recommend a methodology for funding the applications. The Committee was composed of four Housing Commission staff members and one community member. Applications were recommended for funding in order of rank determined by the final score issued to each application by the Committee. The top ranked applicants would receive 100 percent of their budget requests. The remaining balance of available funds would partially fund the request of the applicant next in line, according to score. After the RFP review process and based on increased Housing Impact Fee collections reported through March 31, 2014, additional Housing Impact Fee revenues were designated on April 21, 2014, to support the Transitional Housing for the Homeless program in FY As a result, all RFP respondents are recommended to receive funding. As a result of this recommendation, the San Diego Housing Commission will be making a proposed amendment to the Proposed FY 2015 Affordable Housing Fund Annual Plan (Annual Plan) to accommodate the funding of all ten (10) of the proposals. The Annual Plan Report previously approved by the Housing Commission Board and referred to the San Diego City Council (City Council) for approval will contain this amended recommendation. Nine of the 10 recommended proposals are for programs that received HTF funding from FY 2012 through FY The recommended proposal that would be newly funded in FY 2015 is the Welcome Home Program of Vietnam Veterans of San Diego, dba Veterans Village of San Diego. The Welcome Home Program is the only program in San Diego to exclusively serve veterans families. Attachment 1 lists all the requested budget amounts, recommended funding levels, total cost, and programmatic information. Grant awards approved in this action are allocated according to Attachment 1 as follows: YMCA of San Diego County (YFS) $ 30,000 The Salvation Army (TLC) $ 55,000 Mental Health Systems (SIP) $ 74,000 San Diego Youth Services $ 50,000 St. Vincent de Paul Village (Single Men) $ 96,945
3 Page 3 Veterans Village of San Diego (Welcome Home Program) $ 50,000 St. Vincent de Paul Village (FLC) $ 179,572 YWCA of San Diego County (Passages) $ 164,300 The Salvation Army (STEPS) $ 85,000 YWCA of San Diego County (Becky s House) $ 229,051 Set-Aside for Performance Incentive Awards $ 126,734 Total $1,140,602 AFFORDABLE HOUSING IMPACT As San Diegans continue to live in a City-declared housing emergency, the need for immediate housing assistance is critical to the well-being of our community members. The transitional housing programs recommended for funding serve this purpose by providing overnight shelter with supportive services to men, women and children experiencing homelessness. Approximately 660 beds will be supported through this recommendation. Individuals participating in the programs represent some of San Diego s most vulnerable citizens, as 100 percent of program participants are homeless, with low-tomoderate incomes. FISCAL CONSIDERATIONS The proposed funding sources and uses approved by this action are partially included in the proposed Fiscal Year 2015 Housing Commission Budget. Approving this action will authorize the Housing Commission to expend $621,764 in addition to the Proposed FY 2015 Budget. Any renewal options to be exercised will be included in the respective FY 2016 and FY 2017 Board-approved budgets. Approving this action will result in the provision of 660 transitional housing beds that will serve approximately 1,221 individuals at the average annual bed cost to the Housing Commission listed in Attachment 1 under the column Annual HTF Bed Cost. FY 2015 funding sources approved by this action are as follows: Housing Impact Fee - $1,140,602 FY 2015 funding uses approved by this action are as follows: Grants - $1,140,602 Funding Uses Total - $1,140,602 Approving this action will further give the President & Chief Executive Officer or his designee the authority to substitute the above funding sources with other funding sources available, should the operational need arise or should such action be to the benefit of the Housing Commission and its mission. Funding substitutions will be ratified in an Informational Report at the next Housing Commission Board Meeting. As a result of the staff recommendations to fund all ten (10) proposals, the Housing Commission will be making a proposed amendment to the Annual Plan to accommodate the funding of all ten (10) of the proposals. The Annual Plan Report previously approved by the Housing Commission Board and referred to the City Council for approval will contain this amended recommendation. EQUAL OPPORTUNITY/CONTRACTING None of the firms recommended for the proposed funding awards are certified Small/Disadvantaged/Minority/Women-Owned or Disabled Veteran business enterprises. Certificates of
4 Page 4 Compliance and Workforce Analysis have been provided and show the grantees are in compliance with the Housing Commission Equal Opportunity Program and demonstrate no issues with diversity. PREVIOUS COUNCIL and/or COMMITTEE ACTION On May 13, 2011, the Housing Commission approved $794,023 in recommended FY 2012 funding for 14 transitional housing programs that provided 692 transitional housing beds, with 2 one-year options to renew. The Housing Commission Board of Commissioners on April 11, 2014, recommended that the City Council should approve the Annual Plan. On April 11, 2014, the Housing Commission Board of Commissioners recommended that the Housing Authority should adopt the Housing Commission s Proposed FY 2015 Budget. This item was approved at the May 9, 2014, Housing Commission meeting by a vote of 6-0. COMMUNITY PARTICIPATION and PUBLIC OUTREACH EFFORTS An RFP was issued on January 15, A pre-proposal conference was held to answer questions from the public on January 29, KEY STAKEHOLDERS and PROJECTED IMPACTS Key stakeholders include the transitional housing program operators, the clients of these organizations, and other prospective residents of transitional housing in the City of San Diego. The projected impact of the FY 2015 HTF recommended programs is higher-performing transitional housing incentivized through: 1) performance awards for programs that exceed stated outcomes on a quarterly basis and 2) execution of option years for programs that meet annual outcomes. ENVIRONMENTAL REVIEW The approval of funding for administrative expenses is not a project as defined by the California Environmental Quality Act (CEQA) Section and State CEQA Guidelines Section 15378(b)(5), as it is an administrative activity of government that will not result in direct or indirect physical changes in the environment. The determination that this activity is not subject to CEQA, pursuant to Section 15060(c)(3), is not appealable and a Notice of Right to Appeal the Environmental Determination (NORA) is not required. Processing under the National Environmental Policy Act is not required as no federal funds are involved in this action. Respectfully submitted, Mathew Packard Mathew Packard Vice President Housing Innovations Approved by, Jeff Davis Jeff Davis Executive Vice President & Chief Operating Officer San Diego Housing Commission Attachments: 1) RFP#: SHI Applicant Overview & Funding Recommendations
5 Attachment 1 RFP#: SHI Applicant Overview & Funding Recommendations Rank Sponsor/Project Score Request Total 1 YMCA Of San Diego County (YFS) 94 $30,000 Target Population Transitional Aged Youth & their children (16-21) No. of Beds 24 (20 adult, 4 children) No. of Units No. of Clients Served Avg. Length of Stay Annual Bed Cost Annual HTF Bed Cost Daily HTF Bed Cost Award months $17,587 $1,250 $3.43 $30,000 2 The Salvation Army (TLC) 92 $55,000 Women & Children 70 (26 adult, 44 children) families 16 months $5,635 $786 $2.15 $55,000 3 Mental Health Systems (SIP) 90 $74,000 Adults months $26,175 $6,167 $16.90 $74,000 4 San Diego Youth Services 89 $50,000 Transitional Aged Youth (18-24) 18 (13 adult, 5 children) (18 adults, 7 children) 9 months $23,626 $2,778 $7.61 $50,000 5 St. Vincent de Paul Village (Single Men) 88 $96,945 Men months $15,756 $646 $1.77 $96,945 6 Vietnam Veterans Of San Diego (Welcome Home Program) 86 $50,000 7 St. Vincent de Paul Village (FLC) 85 $179,572 Families w/children & Women Families w/children months $14,641 $2,000 $5.48 $50, (110 adults; 140 children) 6 months $16,863 $728 $1.99 $179,572 8 YWCA Of San Diego County (Passages) 84 $164,300 Women months $11,157 $2,650 $7.26 $164,300 9 The Salvation Army (STEPS) 82 $85,000 Men months $9,392 $2,024 $5.54 $85, YWCA Of San Diego County (Becky's House) 78 $229,051 Women & Children (DV) 145 (42 adult, 103 children) months $4,545 $284 $1 $229,051 REQUEST TOTALS AWARD TOTALS* 87 $1,013,868 Mixed , months $14,538 $1,931 $5 $1,013, $1,013,868 Mixed months $14,538 $1,931 $5 $1,013,868 * The RFP was for $500,000. On April 21, 2014, an additional $640,602 was allocated to the Transitional Housing for the Homeless program. Of the revised funding total equaling $1,140,602, $1,013,868 is recommended for direct award and the remaining $126,734 is set-aside for performance incentive payments Broadway, Ste. 300, San Diego, CA Telephone (619) Fax: (619)
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