AGENDA REPORT
Meeting Date: August 15, 2023
Item Number:
To: Honorable Mayor & City Council
From: Christopher Paulson, Human Services Administrator Enisha Clark, LCSW, Human Services Outreach Manager
Stephanie Harris, Director of Community Services
Subject: RECOMMENDATION BY THE CITY COUNCIL UNHOUSED
SERVICES AD HOC COMMITTEE FOR CONSIDERATION OF AN
AGREEMENT WITH STEP UP ON SECOND TO PROVIDE 30 UNITS
OF SCATTERED-SITE PERMANENT SUPPORTIVE HOUSING AND
MOTEL STAYS FOR UP TO 20 INDIVIDUALS ANNUALLY FOR THE
UNHOUSED; AND
AUTHORIZE THE CITY MANAGER TO EXECUTE AN AGREEMENT
BETWEEN THE CITY OF BEVERLY HILLS AND STEP UP ON
SECOND FOR $14,177,026 FOR 30 UNITS OF SCATTERED-SITE
PERMANENT SUPPORTIVE HOUSING AND MOTEL STAYS FOR UP
TO 20 INDIVIDUALS ANNUALLY FOR THE UNHOUSED FOR A 10-
YEAR TERM; AND
APPROVAL OF A PURCHASE ORDER IN THE AMOUNT OF
$1,798,065 FOR FISCAL YEAR 2023-2024 (YEAR 1 OF A 10-YEAR AGREEMENT) FOR STEP UP ON SECOND; AND
APPROPRIATION FROM THE GENERAL FUND IN THE AMOUNT OF
$1,798,065 FOR FISCAL YEAR 2023-24
Attachments: 1. Step Up on Second’s Proposed Beverly Hills Scattered Site Housing Program and Budget
2. City Council Unhoused Services Ad Hoc Committee Report – June 22, 2023
RECOMMENDATION
City Council direction is requested on the proposal to contract with Step Up on Second for 30 units of scattered-site permanent supportive housing units and motel stays for up Meeting Date: August 15, 2023
to 20 individuals annually for the unhoused for an initial 10-year term, at a total ten-year cost of $14,177,026.
If supported, it is recommended that the City Council authorize the City Manager to execute an agreement between the City of Beverly Hills and Step Up on Second for $14,177,026 for 30 units of scattered-site permanent supportive housing units and motel stays for up to 20 individuals annually for the unhoused for an initial 10-year term; approve a Purchase Order in the amount of $1,798,065 for Fiscal Year 2023-2024 (year 1 of a 10-year agreement); and, approve an appropriation from the General Fund in the amount of $1,798,065 for Fiscal Year 2023-2024.
INTRODUCTION
At the June 22, 2023 City Council Unhoused Services Ad Hoc Committee (Attachment 2), Mayor Gold and Councilmember Bosse gave initial support for staff to bring forward a complete proposal for consideration by the full City Council to contract with Step Up on Second for 40 units of scattered-site permanent supportive housing units for the unhoused for an initial 10-year term.
Since the June 22, 2023 Unhoused Services Ad Hoc Committee meeting, staff has had numerous conversations with Step Up on Second and have determined that a more complete program would need to address the needs of both the chronically homeless and the non-chronically homeless populations. As a result, the program would require 30 units of scattered-site permanent supportive housing units, down from 40, and motel stays for up to 20 individuals annually.
As a result, over the 10 years of the program Step Up will be able to assist 230 individuals, including permanently housing 30 of the most chronically homeless individuals as well as move off the street and into temporary housing up to 200 nonchronic homeless individuals, with Step Up case managers ensuring each individual receives case management and other support services.
DISCUSSION
Housing Needed Urgently for Unhoused
While consultants Arnold and Swan are still preparing the homelessness plan for the City, it has become clear to staff, our community partners, and from conversations with the consultants and experts in the field, housing and comprehensive support services are the biggest factors in helping people exit the streets. Since 2014, the City of Beverly Hills has contracted with PATH for five shelter beds, which are currently full, and there are no additional beds that can be acquired from PATH at this time.
Given the urgency of the homelessness crisis in Los Angeles County, staff believes it was crucial to bring forward the information that Step Up has the ability to acquire units of permanent and supportive housing through a scattered-site housing model. Step Up is in the process of solidifying agreements for approximately 70 additional permanent supportive housing units throughout the L.A. region, adding to their existing inventory of over 400 units. Step Up has the capacity to contract up to 30 units to the City of Beverly Hills immediately.
It should also be noted that Mayor Bass in Los Angeles and her Inside Safe program has been aggressively contracting with motel owners throughout Los Angeles to house people experiencing homelessness on a temporary basis, until staff can locate the appropriate permanent supportive housing for those individuals. It is reasonable to believe that Los Angeles will try to contract for additional units of permanent supportive Meeting Date: August 15, 2023
housing and so there is a significant urgency to secure units for Beverly Hills before the opportunity is lost.
Housing & Enforcement Requirement
In the cases of Martin v. City of Boise and Blake v. City of Grants Pass, the 9th Circuit Court of Appeals declared that a city cannot criminally prosecute a homeless individual for sleeping in public unless that city offered a place for that homeless person to sleep.
With this in mind, staff met with Step Up on Second representatives and jointly determined that a mix of 30 units of permanent supportive housing to serve the existing chronically homeless population in the City and 20 motel stays for 20 additional homeless (non-chronic) people annually would likely serve the City’s needs.
Furthermore, with the cost of acquiring land and constructing affordable housing units and permanent supportive housing units, it would be wise for the City to contract for up to 30 units of housing now, while the opportunity currently exists.
Background on Step Up on Second
The City of Beverly Hills has contracted with the nonprofit organization, Step Up on Second, since 2015, to provide a homeless outreach and permanent supportive housing placement program. As discussed previously, the City’s agreement with Step Up was increased in November 2022 and they currently provide five homeless outreach staff members seven days a week, in addition to placing individuals in shelter and transitional housing as available and as requested.
In addition to providing linkages to housing and services, Step Up owns and operates supportive housing units, and is in the process of adding additional units to their portfolio. Step Up’s very first facility is Step Up on Second, which opened its doors in Santa Monica in 1994. Step Up now owns and/or operates 421 units of innovative, community-based permanent supportive housing across 12 developments in Los Angeles County.
Characteristics of People Experiencing Homelessness
The population of individuals experiencing homelessness is generally divided into two categories: the non-chronic and chronic, categories established by the Department of Housing and Urban Development (HUD). The non-chronic population is defined as individuals who have been homeless for less than one year; and, the chronic population is defined as individuals who have been homeless more than one year.
For the non-chronic population, individuals tended to fall into homelessness due to a challenging or even catastrophic event in their lives such as loss of a job or a major health issue. For the chronic population, individuals more typically suffer from a disability that has led them into a longer-term state of homelessness such as a physical disability, mental disability or substance abuse issue, or a combination of these.
There are recognized evidenced-based practices for each grouping. For the non-chronic population, they tend to need short term support through a challenging period and that support is designed to help them get back on their feet and re-establish a trajectory of independence. Such resources as rapid re-housing, interim short-term housing, job training, short term supplemental income support and Home Again programs (commonly seen in destination cities in which homeless individuals are supported to return to their community of origin where they have housing and other social capital resources) are typically useful in providing support through a limited time period to enable them to get back on their feet and exit from a state of homelessness. The focus here is obtaining Meeting Date: August 15, 2023
short-term resources to get them back on their feet to then re-acquire housing on an independent basis. Both individuals and families can fall into the non-chronic population.
For the chronic population, since their homelessness is often the result of more significant issue(s) such as a disability, the best and proven course of action is housing on a longer-term basis coupled with intensive support services to address the underlying issues that led them into a state of homelessness. There is a significant body of evidence that demonstrates that housing first and Permanent Supportive Housing (PSH), with onsite support services, are the evidenced-based practices that works in ending homelessness for the chronic population. The goal for this population is housing retention. Because of existing disabilities, these individuals are not likely able to easily establish a trajectory of independence from the supportive housing because they are often focused on managing their disabilities.
Step Up on Second Proposal – Beverly Hills Scattered Site Housing Program (BHSSH)
Step Up on Second Street, Inc. has proposed the Beverly Hills Scattered Site Housing Program (BHSSH) to provide appropriate resources for both the non-chronic and chronic homeless population. The program is for ten years with a total cost of $14,177,026, including any one-time costs and all annual costs, covering housing and services.
Permanent Supportive Housing (PSH)
For the chronic population, BHSSH provides long term Permanent Supportive Housing (PSH) for 30 individuals experiencing chronic homelessness. Step Up has demonstrated success at providing the necessary community-based support services as reflected in the 98% housing retention rate for those that move into PSH. BHSSH proposes to identify and secure housing units for each individual, to provide rental assistance (since they are all low income) and to create intensive community-based support services to help them make the transition from homelessness to housing stability.
The housing proposal is for 30 units of scattered-site permanent supportive studio apartment units. Scattered site means that tenants are placed in community-based apartment units owned by independent landlords; therefore, the tenants are not housed in Step Up owned buildings nor will all the tenants in any of the buildings be Step Up clients. Step Up has identified these 30 units by outreaching to their network of development partners and they indicate they currently have an agreement with an apartment building owner who has a Hollywood-based building with 30 vacant units, and they are willing to hold these units for Step Up.
In this model, Step Up will act as the "housing authority", that is, Step Up will make the rent payments directly to the property owner, and will also ensure the tenant pays their portion of the rent (30% of the tenant’s income) through their available means (Social Security, Disability, etc.). The city’s cost does not include this amount as the rental of the units is higher than the rental subsidy amount in the proposed budget. Step Up is calculating the studio rent at $2,165, with the City's rental subsidy portion at $1,925.
While the tenant pays 30% of their income towards the rent, the income of different tenants will vary so Step Up’s assumption is that each tenant will have an average income of about $10,000 per year. Some will have no income (and benefit entitlement will be one of the services we provide to tenants) and some will have more than $10,000 but we are using that amount as an average. Failure to pay the tenant portion of the rent is a cause for eviction but in Step Up’s experience, this is very rare and it is the role of services to work with each tenant to sustain their housing, including paying their monthly rent.
Meeting Date: August 15, 2023
Step Up has built out year one initial costs and then showed the costs for the following nine years, with a 2% rent escalation built into each of years 2-10. The 2% rent escalation is an estimate and Step Up will need to charge the actual rate of increase should it exceed 2%, however, Step Up will monitor rental trends and approach the City via planned quarterly monitoring meetings and annual review process to discuss the budget and options in advance. The monthly rental subsidy cost to the City for the studio apartment in year one is $1,925, by year 10 those costs are $2,300.
Step Up is requesting full payment of the rental subsidy for each of the 30 units at the outset of each fiscal year to assist organizational cash-flow throughout the year, as opposed to receiving payment in arrears. However, in Year 1, Step Up is only seeking 11 months of rent for the 30 units, providing the City a discount of $57,750 in Year 1 for a rental subsidy total of $635,250. For years 2-10 the 12 months of rent is due up front at the beginning of each fiscal year.
One-Time Costs
As in many multi-year agreements, there are certain upfront costs that must be paid to set-up the program and ensure that each unit is furnished and ready for move-in. These upfront costs are one-time fees, and they combine program set-up fees; rental and security deposits, which is 2 months’ rent due at lease signing; unit furnishings, and related equipment. The initial one-time charge or start-up cost is $631,200, of which $90,000 is for unit furnishings, $129,900 is security deposit (2 months’ rent) for 30 units, $11,300 for miscellaneous equipment, and $400,000 Set Up fee that includes Executive Costs and Developer Cultivation over the course of the ten-year agreement. The onetime fees total $631,200.
There is also a line-item in the amount of $335,000 for replacement of furnishings and funds for repairs of any significant damage to units that tenants may make over the ten years. Step Up has agreed to invoice the City as damage repairs arise and the City will manage this pool of funds over the life of the agreement.
Motel Stays
The BHSSH program also addresses the non-chronic homeless population by providing rapid re-housing and other supports to transition them back to stable housing. BHSSH will work with the existing Home Again program in the City to help the appropriate individuals return to their community of origin along with the assurance of housing and support in that community.
Since Home Again will not be appropriate for every non-chronic homeless individual or family, Step Up has also built into the budget $42,000 annually for motel stays, which increases by 2% each year to account for rate increases. Step Up is projecting to house in motels annually 20 individuals, averaging 14 nights per individual or family at an average rate of $150 per night. This will allow Step Up to offer housing immediately and move people off the street quickly. The program will be able to rapidly provide short-term housing for the individual while they secure other resources to address and end their homelessness. Step Up will actively refer to appropriate programs and services throughout Los Angeles County using its extensive network.
While Step Up is projecting serving annually 20 individuals, averaging 14 nights per individual or family at an average rate of $150 per night, these are projections for budgeting purposes. The actual number of individuals and the average stay may vary from these projections, however, Step Up will identify trends in the housing of individuals in advance and can discuss adjustments to the budget line items with the City at Meeting Date: August 15, 2023
quarterly meetings and annual review, which could allow for the reallocation of budget resources within the overall program budget.
The proposed BHSSH program allows Step Up to provide effective resources to both the chronic and non-chronic populations in the City that include housing resources and support services, all based on evidence-based practices. As a result, over the 10 years of the BHSSH program Step Up will be to assist an estimated 230 individuals, including permanently housing 30 of the most chronically homeless individuals as well as move off the street up to 200 non-chronic homeless individuals, with Step Up case managers ensuring each individual receives case management and other support services. While the non-chronic individuals will need a lower level of service, they will still need a base level of service.
Administrative Costs
Step Up built in a couple additional annual costs including additional client service funds (to buy clothes, pay for emergency motel stays, etc.) and direct program costs (insurance, vehicle leases, staff equipment, phones, PC's, etc). Those are fixed and do not escalate over time. The annual fixed costs for the Client Service Fund ($4,320) and Direct Program Costs ($57,600) totals $61,920 per year, or $619,200 over the 10-year term and is not subject to escalation.
In addition to the annual fixed cost, there is also an annual 12% Indirect Program Administrative cost based on the total budget each year. This cost covers indirect expenses Step Up must cover across their various internal divisions, like human resources, IT, Accounting, Quality Assurance, Clinical Development, and Executive services to operate the Beverly Hills Scattered Site Housing Program. The 12% Indirect Administrative cost for year 1 is $127,990.
Like the rental subsidy for the 30 units and the one-time costs, the annual motel expense of $42,000, annual fixed costs of $61,920, and annual Indirect Administrative costs also need to be paid to Step Up at the outset of each fiscal year.
Step Up Services and Direct Program Costs
The Step Up Housing Case Management staff will offer Case Management and Individual Rehabilitative services to the tenants. Services are $327,410 annually with a 3% service escalation built into each year of years 2-10, by year ten the cost of services will be $427,196 annually.
The frequency of tenant visits will vary depending on level of need; however, most tenants require a minimum of one (1) face-to-face visit per week during initial engagement. To provide this level of service, Step Up will hire three (3) full-time staff with college degrees whose training and experience aligns with housing location, housing retention, and supporting newly housed individuals.
To facilitate scattered-site housing the Step Up Housing specialist staff will look for new resources and agencies to partner with to build reliable and enduring partnerships. This includes property management organizations as well as relationships with individual landlords and on-site managers.
After housing move in, the focus of the services is to support Activities of Daily Living, (i.e., living in your own apartment), housing retention, and increasing self-sufficiency.
Individualized rehabilitative services may include focus on grooming/hygiene, laundry, household chores, meal preparation/planning, shopping best practices, budgeting, Meeting Date: August 15, 2023
developing “Good Neighbor” practices (noise reduction, healthy boundaries, conflict resolution) and support in finding constructive and meaningful use of time.
Additionally, staff are trained in Motivational Interviewing and Harm Reduction techniques, which are instrumental in supporting clients to explore choices for decreasing substance usage and reducing ambivalence to engage in mental health and psychiatry services. Step Up services are conducted in the home, in the field, or at Step Up offices (which could be on site), depending on a client’s stage of mental health recovery. Home visits are conducted regularly so that staff can address issues such as housekeeping, food-management and self-care.
Step Up Housing Case Management services will include assistance in obtaining a California ID and benefits acquisition based on eligibility (Medi-Cal, SSI, SSDI, CalFresh, Cash Aid, Temporary Assistance for Needy Families). Step Up will direct tenants to food pantries so they may obtain healthy food. Step Up staff will also provide linkage to medical care including assistance in locating a primary care physician and dental and vision care.
Since Step Up has contracts with LA County Department of Mental Health (DMH), Step Up plans to provide linkage to these DMH programs to leverage additional supports that include therapy, psychiatry, nursing, medication management, and Representative Payee Services (Money Management). Step Up will screen each client for eligibility and link to DMH whenever appropriate. DMH also offers a system for providing 24-hour/7 days a week on-call crisis intervention services for clients.
The Housing Case Management Services staff will utilize Motivational Interviewing, Harm Reduction and Housing First practices to support each client in developing their goals, which could include community integration and engagement in activities that promote self-sufficiency. For those tenants who desire employment, volunteer work, or return to school, Step Up staff will provide linkage to community resources and provide support so that the tenant could access these resources.
In Step Up’s extensive experience, the first three to nine months of housing for each tenant will be focused on housing stabilization and retention (i.e., more of a life skills role). In the first several months, there will be intensive interaction between the staff and tenants. Step Up will run support groups regularly during the week and encourage tenants to attend (these support groups may include cooking classes or shopping excursions with multiple tenants).
Relationship with Current Beverly Hills Outreach Team (BHOT) The current BHOT supervisor will provide direct oversight to both the BHOT staff and the Housing Case Management staff. The supervisor will report to an LMFT, who is a licensed and tenured Senior Program Manager on the Step Up Department of Mental Health (DMH) staff and who can provide oversight of DMH enrollments, address any crisis situations, and provide consultation around any potential behavioral issues, which may jeopardize housing retention.
The BHOT staff will establish criteria and refer individuals to be enrolled into the housing program and when these individuals are accepted into housing, the BHOT staff will provide a warm handoff to the housing staff. For continuity, since the BHOT staff have existing relationships with the individuals, the Housing Case Management staff will partner with the BHOT staff on outreach activities and BHOT staff may also assist in taking individuals to the apartment building. BHOT staff’s role will be to ensure continuity of client-care and relationships; however, they are expected to transfer the primary Meeting Date: August 15, 2023
relationship to the Housing Case Management staff to allow them to continue providing outreach services in Beverly Hills. The Housing Case Management staff will also be asked to enter client updates into the Apricot software system so they can continue to provide updates on the case status of clients referred to housing and services.
Timeline, Process, and Program Review
If approved by City Council and upon execution of the contract, Step Up will move forward to hire three (3) staff for the project. Once the contract is executed, Step Up will be ready to accept referrals starting the first week of September 2023. As soon as Step Up receives these first housing referrals, lease signing would happen immediately to begin this important program for individuals who experience homelessness.
The leases will be individual leases (consistent with Step Up’s person-focused philosophy, Step Up will not master lease these units, each client will have their own individual lease with the owner, although Step Up will facilitate and manage this process). As each tenant is engaged and enrolled, Step Up will offer housing support and bring each tenant to the building(s) to look at units. Step Up will facilitate the lease signing as well as provide related security and other deposits. Each tenant will have an annual lease.
Finally, Step Up will provide the City of Beverly Hills with regular reporting that details the number of people served, number housed, housing retention, service utilization, and other key performance indicators. Step Up will conduct annual reviews through the quarterly reporting of program metrics and program expenditures.
Permanent Supportive Housing Program participants will be tracked in Welligent (a leading cloud-based electronic health records (EHR) provider) the tracking system used for Step Up clients. Clients who are served through Motel Stays will be recorded in the City of Beverly Hills Apricot Case Management Software. Program and client data can be reported on quarterly using both systems.
The BHSSH Budget Program expenditures are reviewed monthly by the program supervisor/manager. In addition, the Accounting and Support Department processes program expenditures, including staff salaries, at the close of each month. Budget results can be reported quarterly, with the third quarter report being reviewed by Step Up senior management to determine if budget modifications are required. The results of this review will be shared with the City of Beverly Hills staff to establish a dialogue for possible modifications in client numbers or expenditures.
Step Up’s continuous review process for each client and the above referenced Program/Budget Review and Reporting will allow for annual reviews of the program’s major outcome of housing retention. We suggest that at year 8 of 10 of the Beverly Hills Scattered Site Housing Program, Step Up and the City of Beverly Hills formalize a process to determine what will be required in year 11 and beyond.
FISCAL IMPACT
Step Up on Second is requesting $14,177,026 over ten years to provide the City of Beverly Hills with 30 units of permanent supportive housing in a scattered-site format, and motel stays for up to 20 individuals annually, inclusive of all costs and services.
Meeting Date: August 15, 2023
The total cost for year one of this proposed agreement is summarized below:
Year 1 Cost Summary Amount
One-Time Start Up Costs $ 631,200
Program Costs - Services and Direct 385,010
Client Service Costs 681,570
Administrative Costs 127,990
Deductions (staff and rental vacancies) (27,705)
Subtotal Year 1 Annual Ongoing Costs $ 1,166,865
Total Year 1 Cost $ 1,798,065
Step Up will require up-front the full payment of the budget up-front at the start of each fiscal year and it is therefore recommended that Council approve a one-time General Fund Appropriation of $1,798,065. As this program continues, additional funding will be requested as part of the annual budget process.
Annual ongoing costs, which is rental subsidy and service provision, for years two through ten increases slightly from a year 2 cost of $1,257,578 to a year ten cost of $1,500,046 (see Attachment 1).
One item of note, the City currently has an application submitted through the Westside Cities Council of Governments to use $373,125 of Los Angeles County Local Solutions Funds this fiscal year for interim housing and supportive services. If awarded, these funds can supplement the budget for the Beverly Hills Scattered Site Housing Program.
As part of the budget process, the General Fund was forecasted to have an estimated surplus of $5.5 million. Given the above appropriation request of $1,798,065, this will reduce the upcoming estimated surplus to $3.7 million.
$ 327,088,675
(321,551,145)
$ 5,537,530
Date Agenda Item Appropriation Request
8/15/2023
Agreement with Step Up on Second to
Provide 30 Units of Scattered-Site
Permanent Supportive Housing for
the Unhoused and 40 Motel stays (1,798,065)
As of 8/15/2023 Remaining Estimated Surplus Balance $ 3,739,465 Fiscal Year 2023-24 General Fund Summary
Estimated General Fund Revenue
Estimated General Fund Expenditures
Fiscal Year 2023-24 Estimated Surplus
Jeff S. Muir
Director of Finance
Stephanie Harris
Director of Community Services
Approved By Approved By
Attachment 1
The City of Beverly Hills
Step Up on Second Street, Inc.
Beverly Hills Scattered Site Housing Program
August 1, 2023
1 Beverly Hills Scattered Site Housing Program Introduction The Beverly Hills Scattered Site Housing Program (BHSSH) program is designed to address and mitigate the condition of homelessness in the City of Beverly Hills. The population of individuals experiencing homelessness is generally divided into two categories: the non-chronic and chronic, categories established by the Department of Housing and Urban Development (HUD). The nonchronic population is defined as individuals who have been homeless for less than one year; and, the chronic population is defined as individuals who have been homeless more than one year.
For the non-chronic population, individuals tended to fall into homelessness due to a challenging or even catastrophic event in their lives such as loss of a job or a major health issue. For the chronic population, individuals more typically suffer from a disability that has led them into a longer-term state of homelessness such as a physical disability, mental disability or substance abuse issue, or a combination of these.
There are recognized evidenced-based practices for each grouping. For the non-chronic population, they tend to need short term support through a challenging period and that support is designed to help them get back on their feet and re-establish a trajectory of independence. Such resources as rapid re-housing, interim short-term housing, job training, short term supplemental income support and Return Home programs (commonly seen in destination cities in which homeless individuals are supported to return to their community of origin where they have housing and other social capital resources) are typically useful in providing support through a limited time period to enable them to get back on their feet and exit from a state of homelessness. The focus here is obtaining short-term resources to get them back on their feet to then re-acquire housing on an independent basis. Both individuals and families can fall into the non-chronic population.
For the chronic population, since their homelessness is often the result of more significant issue(s) such as a disability, the best and proven course of action is housing on a longer-term basis coupled with intensive support services to address the underlying issues that led them into a state of homelessness. There is a significant body of evidence that demonstrates that housing first and Permanent Supportive Housing (PSH), with onsite support services, are the evidenced-based practices that works in ending homelessness for the chronic population. The goal for this population is housing retention. Because of existing disabilities, these individuals are not likely able to easily establish a trajectory of independence from the supportive housing because they are often focused on managing their disabilities.
The BHSSH Program Goals and Outcomes
Step Up on Second Street, Inc. proposed BHSSH program provides appropriate resources for both the non-chronic and chronic homeless population.
For the chronic population, BHSSH provides long term PSH for 30 individuals experiencing chronic homelessness. Step Up has demonstrated success at providing the necessary communitybased support services as reflected in the 98% housing retention rate for those that move into PSH.
Therefore, the majority of housed individuals will be successful in retaining their housing. For example, John G., who was homeless in Beverly Hills for 30 years, was housed in the Step Up on Vine building in 2013 and has been living there for the past ten years (see attached LA Times article).
The City of Beverly Hills
Step Up on Second Street, Inc.
Beverly Hills Scattered Site Housing Program
August 1, 2023
2 BHSSH proposes to identify and secure housing units for each individual, to provide rental assistance (since they are all low income) and to create intensive community-based support services to help them make the transition from homelessness to housing stability.
The BHSSH program also addresses the non-chronic homeless population by providing rapid rehousing and other supports to transition them back to stable housing. BHSSH will work with the existing Return Home program in the City to help the appropriate individuals return to their community of origin along with the assurance of housing and support in that community.
Since Return Home will not be appropriate for every non-chronic homeless individual or family, Step Up has also built into the budget $42K annually for motel stays. We are projecting to house in motels annually 20 individuals, averaging 14 nights per individual or family at an average rate of $150 per night. This will allow us to offer housing immediately and move people off the street quickly. The program will be able to rapidly provide short-term housing for the individual while they secure other resources to address and end their homelessness. Step Up will actively refer to appropriate programs and services throughout Los Angeles County using its extensive network.
While we are projecting serving annually 20 individuals, averaging 14 nights per individual or family at an average rate of $150 per night, these are merely projections for budgeting purposes.
The actual number of individuals and the average stay may vary from these projections however, we will stay within the annual budget amount.
The proposed BHSSH program allows Step Up to provide effective resources to both the chronic and non-chronic populations in the City that include housing resources and support services, all based on evidence-based practices. As a result, over the 10 years of the BHSSH program Step Up will be to assist 230 individuals, including permanently housing 30 of the most chronically homeless individuals as well as move off the street up to 200 non-chronic homeless individuals, with Step Up case managers ensuring each individual receives case management and other support services. While the non-chronic individuals will need a lower level of service, they will need a base level of service.
The BHSSH Program Staff
Since Step Up envisions this program will have positive outcomes in reducing homelessness, the staffing strategy will be to transition the current Beverly Hills-based outreach team to a rapid rehousing support team that works towards permanent housing linkage for the non-chronic individuals.
There will be separate staff in the housing program; however, these staff members will work closely with the BHOT staff. Step Up management plans to expand Kevin Conner’s role as a supervisor so that he will provide direct oversight to both the BHOT staff and the Housing Case Management staff. Mr. Conner will report directly to Jai Long LMFT, who is a licensed and tenured Senior Program Manager on the Step Up DMH staff and who can provide oversight of DMH enrollments, address any crisis situations, and provide consultation around any potential behavioral issues, which may jeopardize housing retention.
The BHOT staff will refer individuals to be enrolled into the housing program and when these individuals are accepted into housing, the BHOT staff well provide a warm handoff to the housing staff. For continuity, since the BHOT staff have existing relationships with the individuals, the The City of Beverly Hills
Step Up on Second Street, Inc.
Beverly Hills Scattered Site Housing Program
August 1, 2023
3 Housing Case Management staff will partner with the BHOT staff on outreach activities and BHOT staff may also assist in taking individuals to the apartment building. The BHOT staff’s role will be to ensure continuity of client-care and relationships; however, they are expected to transfer the primary relationship to the Housing Case Management staff.
Beverly Hills Scattered Site Housing Program Description Scattered site means that tenants are placed in community-based apartment units owned by independent landlords; therefore, the tenants are not housed in Step Up owned buildings nor will all the tenants in any of the buildings be Step Up clients. Having said that, Step Up already has an agreement with an apartment building owner who has a Hollywood-based building with 30 vacant units, and they are willing to hold these units for Step Up. This owner has four vacancies in a second building, also in Hollywood, all that they are willing to hold for Step Up. This owner has agreed to hold any future vacancies for Step Up usage. In relation to the housing effort, Step Up supportive services staff should have an office in any apartment building site when there are 10 or more tenants.
The Step Up Housing Case Management staff will offer Case Management and Individual Rehabilitative services to the tenants. The frequency of tenant visits will vary depending on level of need; however, most tenants require a minimum of one (1) face-to-face visit per week during initial engagement. To provide this level of service, Step Up will hire at three (3) full-time Bachelor-Level staff whose training and experience aligns with housing location, housing retention and supporting newly housed individuals.
To facilitate scattered site housing the Step Up Housing specialist staff will look for new resources and agencies to partner with to build reliable and enduring partnerships. This includes property management organizations as well as relationships with individual landlords and on-site managers.
Building a landlord database is critical as many clients have different needs, and this provides the flexibility of various options as needed.
After housing move in, the main focus of the services is to support Activities of Daily Living, (i.e., living in your own apartment), housing retention, and increasing self-sufficiency. Individualized rehabilitative services may include focus on grooming/hygiene, laundry, household chores, meal preparation/planning, shopping best practices, budgeting, developing “Good Neighbor” practices (noise reduction, healthy boundaries, conflict resolution) and support in finding constructive and meaningful use of time.
Additionally, staff are trained in Motivational Interviewing and Harm Reduction techniques (see definitions 1 and 2 following this paragraph), which are instrumental in supporting clients to explore choices for decreasing substance usage and reducing ambivalence to engage in mental health and psychiatry services. Step Up services are conducted in the home, in the field, or at Step Up offices (which could be on site), depending on a client’s stage of mental health recovery. Home visits are conducted regularly so that staff can address issues such as housekeeping, foodmanagement and self-care.
Definition 1: Harm Reduction: Interventions aimed at reducing the negative health, social and economic consequences of maladaptive coping behaviors. Includes a spectrum of strategies targeting everything from safer use to mitigating consequences to abstinence and stopping the behavior.
The City of Beverly Hills
Step Up on Second Street, Inc.
Beverly Hills Scattered Site Housing Program
August 1, 2023
4 Definition 2: Motivational Interviewing-a member centered, directive method for enhancing intrinsic motivation to change by exploring and resolving ambivalence. Four principles support this practice through the use of Open Questions, Affirmations, Reflective Listening and Summaries: 1) Express Empathy; 2) Develop Discrepancy; 3) Roll with Resistance; 4) Support Self-Efficacy
Step Up Housing Case Management services will include assistance in obtaining a California ID and benefits acquisition based on eligibility (Medi-Cal, SSI, SSDI, Cal-Fresh, Cash Aid, Temporary Assistance for Needy Families). Step Up will direct tenants to food pantries so they may obtain healthy food. Step Up staff will also provide linkage to medical care including assistance in locating a primary care physician and dental and vision care.
Since Step Up has contracts with LA County Department of Mental Health (DMH), Step Up plans to provide linkage to these DMH programs to leverage additional supports that include therapy, psychiatry, nursing, medication management, and Representative Payee Services (Money Management). Step Up will screen each client for eligibility and link to DMH whenever appropriate. DMH also offers a system for providing 24-hour/7 days a week on-call crisis intervention services for clients.
As this is Permanent Supportive Housing (based on the principles of Housing First, meaning that housing is considered part of the person’s treatment plan toward wellness and recovery and that the person served does not need to meet any treatment goals in order to be housed appropriately), each tenant is free to structure their day as they wish. During the evening, Step Up encourages quiet time until the morning.
The Housing Case Management Services staff will utilize Motivational Interviewing, Harm Reduction and Housing First practices to support each client in developing their goals, which could include community integration and engagement in activities that promote self-sufficiency.
For those tenants who desire employment, volunteer work or return to school, Step Up staff will provide linkage to community resources and provide support so that the tenant could access these resources.
In Step Up’ s extensive experience, the first three to nine months of housing for each tenant will be focused on housing stabilization and retention (i.e., more of a life skills role). In the first several months, there will be intensive interaction between the staff and tenants. This could involve contacts each day to support the tenants' needs, but again, this is all individualized to each tenant.
During this period, tenants will likely spend more time in their or their neighbors’ living units. Step Up will run support groups regularly during the week and encourage tenants to attend (these support groups may include cooking classes or shopping excursions with multiple tenants).
As tenants stabilize after this three-to-nine-month period, there is a growing focus on accessing community resources. This can be a period of less intensive services; however, it is likely that the staff will have more regular check-in appointments with the tenants. During these appointments there will be a focus on the assessment, and the re-assessment, of their service plan and goals, and to complete referrals to the appropriate resources to accomplish those goals.
The City of Beverly Hills
Step Up on Second Street, Inc.
Beverly Hills Scattered Site Housing Program
August 1, 2023
5 Beverly Hills Scattered Site Housing Program Implementation Upon approval by City Council and concurrent to execution of the contract, Step Up will move forward to hire three (3) staff for the project. Once the contract is executed, Step Up will be ready to accept referrals starting the first week of September 2023. As soon as Step Up receives these first housing referrals, lease signing would happen immediately so as to begin this important program for individuals who experience homelessness.
The leases will be individual leases (consistent with Step Up’s person-focused philosophy, Step Up will not master lease these units, each client will have their own individual lease with the owner, although Step Up will facilitate and manage this process). As each tenant is engaged and enrolled, Step Up will offer housing support and bring each tenant to the building(s) to look at units. Step Up will facilitate the lease signing as well as provide related security and other deposits. Each tenant will have an annual lease.
Beverly Hills Scattered Site Housing Program/Budget Review and Reporting Step Up will provide the City of Beverly Hills with regular reporting that details the number of people served, number housed, housing retention, service utilization, and other key performance indicators. Step Up will conduct annual reviews through the quarterly reporting of program metrics and program expenditures.
Permanent Supportive Housing Program participants will be tracked in Welligent (a leading cloudbased electronic health records (EHR) provider) the tracking system used for Step Up clients.
Clients who are served through Motel Stays will be recorded in the City of Beverly Hills Apricot Case Management Software. Program and client data can be reported on quarterly using both systems.
The BHSSH Budget Program expenditures are reviewed monthly by the program supervisor/manager. In addition, the Accounting and Support Department processes program expenditures, including staff salaries, at the close of each month. Budget results can be reported quarterly, with the third quarter report being reviewed by Step Up senior management to determine if budget modifications are required. The results of this review will be shared with the City of Beverly Hills staff to establish a dialogue for possible modifications in client numbers or expenditures.
Step Up’s continuous review process for each client and the above referenced Program/Budget Review and Reporting will allow for annual reviews of the program’s major outcome of housing retention. We suggest that at year 8 of 10 of the Beverly Hills Scattered Site Housing Program, Step Up and the City of Beverly Hills formalize a process to determine what will be required in year 11.
Beverly Hills Scattered Site Housing Program Budget
Please see attached
City of Beverly Hills
Scattered Site Housing Draft Budget
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 10 Year Total One Time Costs Amount # of
Units/Clients
Total
Reference
Unit furnishings $3,000 30 $90,000 $90,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $90,000 Security Deposits Studio (2 Months of Total Rental Cost. One month cost = $2,165) $4,330 30 $129,900 $129,900 $0 $0 $0 $0 $0 $0 $0 $0 $0 $129,900 Set Up Fee $400,000 $400,000 $400,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $400,000 Damage Costs (draw down maintained by the city $335K) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Equipment $11,300 $11,300 $11,300 $0 $0 $0 $0 $0 $0 $0 $0 $0 $11,300 Total One Time Costs $631,200 $631,200 $0 $0 $0 $0 $0 $0 $0 $0 $0 $631,200 Program Costs Monthly
Amount
# of
Units/Clients
Total Annual
Cost
3% Services
Increase
3% Services
Increase
3% Services
Increase
3% Services
Increase
3% Services
Increase
3% Services
Increase
3% Services
Increase
3% Services
Increase
3% Services
Increase
Services Personnel $909 30 $327,410 $327,410 $337,233 $347,350 $357,770 $368,503 $379,558 $390,945 $402,673 $414,754 $427,196 $3,753,393 Direct Program Costs (no yearly increase) PC, copier, phone, desks, mileage etc. $160 30 $57,600 $57,600 $57,600 $57,600 $57,600 $57,600 $57,600 $57,600 $57,600 $57,600 $57,600 $576,000 Total Program Costs $385,010 $385,010 $394,833 $404,950 $415,370 $426,103 $437,158 $448,545 $460,273 $472,354 $484,796 $4,329,393 Rental Subsidy and Client Support Costs
Monthly
Amount (City
portion only)
# of
Units/Clients
Total Annual
Cost
2% Subsidy
and Motel
Increase
2% Subsidy
and Motel
Increase
2% Subsidy
and Motel
Increase
2% Subsidy
and Motel
Increase
2% Subsidy
and Motel
Increase
2% Subsidy
and Motel
Increase
2% Subsidy
and Motel
Increase
2% Subsidy
and Motel
Increase
2% Subsidy
and Motel
Increase
Rental subsidy (City's Rental Subsidy + Client Portion = $2,165) Yr 1 cost = 11 months $1,925 30 $693,000 $635,250 $706,860 $720,997 $735,417 $750,125 $765,128 $780,431 $796,039 $811,960 $828,199 $7,530,407 Other Client Service Funds (no yearly increase) clothes, incidentals $12 30 $4,320 $4,320 $4,320 $4,320 $4,320 $4,320 $4,320 $4,320 $4,320 $4,320 $4,320 $43,200 Motel Stay (20 members * 14 nights * $150 per night) $175 20 $42,000 $42,000 $42,840 $43,697 $44,571 $45,462 $46,371 $47,299 $48,245 $49,210 $50,194 $459,888 Total Rental Subsidy and Client Support Costs $697,320 $681,570 $754,020 $769,014 $784,308 $799,908 $815,819 $832,049 $848,604 $865,490 $882,713 $8,033,495 Indirect Admin 12% (HR, IT, Accounting, Quality Assurance, Clinical Development, Executive)
Total Indirect Admin $127,990 $137,862 $140,876 $143,961 $147,121 $150,357 $153,671 $157,065 $160,541 $164,101 $1,483,547 Deductions
Personnel Deduction ($15,000.00) ($15,000.00) ($15,000.00) ($15,000.00) ($15,000.00) ($15,000.00) ($15,000.00) ($15,000.00) ($15,000.00) ($15,000.00) ($150,000.00) Vacancy Deduction (2% of yearly subsidy total) ($12,705.00) ($14,137.20) ($14,419.94) ($14,708.34) ($15,002.51) ($15,302.56) ($15,608.61) ($15,920.78) ($16,239.20) ($16,563.98) ($150,608.13) Total Deductions ($27,705.00) ($29,137.20) ($29,419.94) ($29,708.34) ($30,002.51) ($30,302.56) ($30,608.61) ($30,920.78) ($31,239.20) ($31,563.98) ($300,608.13) Grand Total
Grand Total $1,798,065 $1,257,578 $1,285,419 $1,313,931 $1,343,130 $1,373,032 $1,403,657 $1,435,022 $1,467,145 $1,500,046 $14,177,026 Cost Breakdown Yr 1
Title Units $/Unit
Annual or
Monthly Subtotal Amount Other Adjust Total Current Year Unit furnishings 30.00 $3,000.00 Annual $90,000.00 $90,000.00 Security Deposits Studio (2 Months of Total Rental Cost. One month cost = $2,165) 30.00 $4,330.00 Annual $129,900.00 $129,900.00 Set Up Fee (Start Up Executive Costs and Developer Cultivation) 1.00 $400,000.00 Annual $400,000.00 $400,000.00 Damage Costs (draw down maintained by the city $335,000) 0.00 $0.00 Annual $0.00 $0.00 Equipment 1.00 $11,300.00 Annual $11,300.00 $11,300.00
Subtotal $631,200.00 $631,200.00
# of FTE
Avg Est. Annual
Salary Total Base Burden @ 28% Other Adjust Total Current Year Title: Direct Admin Management (Golena .08, Seerat .1, Jai .12, Kevin .55) 0.85 $103,695.00 $88,140.75 $24,679.41 $0.00 $112,820 Title: Service Coordintor I 3.00 $54,000.00 $162,000.00 $45,360.00 $0.00 $207,360 Bonuses - Management 0.85 $5,500.19 $4,675.16 $935.03 $5,610 Bonuses - Service Staff 3.00 $450.00 $1,350.00 $270.00 $1,620 Subtotal 3.85 $163,645.19 $256,165.91 $70,039.41 $1,205.03 $327,410.35 Description Units (or # of FTE) $/Unit
Annual or
Monthly Subtotal Amount Other Adjust Total Current Year Supplies & equipment 3.85 $ 940.00 Annual $3,619.00 $0.00 $3,619 Computer Software Expense 3.85 $ 50.00 Monthly $2,310.00 $0.00 $2,310 Telephone & communications 3.85 $ 100.00 Monthly $4,620.00 $0.00 $4,620 Postage & shipping 1.00 $ 398.40 Annual $398.40 $0.00 $398 Printing 1.00 $ 400.00 Annual $400.00 $0.00 $400
Leased Equipment 1.00 $ 330.00 Monthly $3,960.00 $0.00 $3,960 Leased Vehicles 1.00 $ 750.00 Monthly $9,000.00 $0.00 $9,000 Dues & subscriptions 1.00 $ 40.00 Monthly $480.00 $0.00 $480 Travel & meeting expenses 3.00 $ 300.00 Monthly $10,800.00 $0.00 $10,800 Insurance -General 1.00 $ 250.00 Monthly $3,000.00 $0.00 $3,000 Insurance -Umbrella 1.00 $ 125.00 Monthly $1,500.00 $0.00 $1,500 Insurance -Directors and Officers 1.00 $ 250.00 Monthly $3,000.00 $0.00 $3,000 Insurance -Vehicles 1.00 $ 350.00 Monthly $4,200.00 $0.00 $4,200 Staff training & development - (Recruiting, Background, other) 3.85 $ 380.00 Annual $1,463.00 $0.00 $1,463 Staff training & Development - Clinical Dev Dept 3.85 $ 150.00 Annual $577.50 $0.00 $578 Advertising & marketing 1.00 $ 490.00 Annual $490.00 $0.00 $490 Occupancy- Alarm 1.00 $ 41.00 Monthly $492.00 $0.00 $492 Occupancy- Furniture and Equipment 3.85 $ 426.00 Annual $1,640.10 $0.00 $1,640 Occupancy- Taxes and Licenses 1.00 $ 50.00 Monthly $600.00 $0.00 $600 Occupancy- Utilities - Electric 1.00 $ 50.00 Monthly $600.00 $0.00 $600 Occupancy- Utilities - Gas 1.00 $ 25.00 Monthly $300.00 $0.00 $300 Occupancy- Utilities - Water 1.00 $ 25.00 Monthly $300.00 $0.00 $300 Professional contracted services - I.T., Security, Consultant, Locum 3.85 $ 400.00 Annual $1,540.00 $0.00 $1,540 Professional contracted services - E.H.R. (separate mode) 3.85 $ 50.00 Monthly $2,310.00 $0.00 $2,310 Subtotal $57,600.00 $0.00 $57,600 Total Program Costs Subtotal $385,010 Title Units $/Unit
Annual or
Monthly Subtotal Amount Other Adjust Total Current Year Rental Subisdy Studio (11 months in year 1) Month 12 deducted in row K17 30.00 $ 1,925.00 Monthly $693,000.00 $ (57,750.00) $635,250 Other Service Funds - Client General Costs 30.00 $ 12.00 Monthly $4,320.00 $ - $4,320 Motel Stays (20 clients * 14 nights * $150 night) 1.00 $ 42,000.00 Annual $42,000.00 $0.00 $42,000 Subtotal $739,320.00 ($57,750.00) $681,570
Department Budget Total $1,697,780
Admin @ 12.% $127,990
Deduction - Staff Vacancy Decrease -$15,000
Deduction - Rental Vacancy Decrease (2% of yearly subsidy total) -$12,705 Year 1 Grand Total $1,798,065
Indirect Admin: HR, IT, Accounting, Quality Assurance, Clinical Development, Executive One Time Charges/Start Up Costs Program Costs - Services Client Service Costs Program Costs - Direct Total Attachment 2
CITY OF BEVERLY HILLS
COMMUNITY SERVICES DEPARTMENT
MEMORANDUM
TO: City Council Liaison Unhoused Services Ad Hoc Committee FROM: Christopher Paulson, Human Services Administrator Enisha Clark, LCSW, Human Services Outreach Manager
Stephanie Harris, Director of Community Services
DATE: June 22, 2023
SUBJECT: Housing Opportunity – Step Up on Second
Introduction
Step Up has been a longtime partner of the City of Beverly Hills, providing homeless outreach and permanent supportive housing placement for the City since 2015. Step Up owns and operates supportive housing units, and is in the process of adding additional units to their portfolio.
Discussion
The City of Beverly Hills has contracted with the nonprofit organization, Step Up on Second, since 2015, to provide a homeless outreach and permanent supportive housing placement program. As discussed previously, the City’s agreement with Step Up was increased in November 2022 and they currently provide five homeless outreach staff members seven days a week, in addition to placing individuals in shelter and transitional housing as available and as requested.
In addition to providing linkages to housing and services, Step Up owns and operates supportive housing units, and is in the process of adding additional units to their portfolio.
Step Up’s very first facility is Step Up on Second, which opened its doors in Santa Monica in 1994. Step Up now owns and/or operates 421 units of innovative, community-based permanent supportive housing across 12 developments in Los Angeles County.
While consultants Arnold and Swan are still preparing the homelessness plan for the City, it has become clear to staff, our community partners, and from conversations with the consultants and experts in the field, housing is the single biggest factor in helping people off the streets. Since 2014, the City of Beverly Hills has contracted with PATH for five shelter beds, which are currently full, and there are no additional beds that can be acquired from PATH at this time.
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Given the urgency of the homelessness crisis in Los Angeles County, staff believes it was crucial to bring forward the information that Step Up has the ability to acquire additional units of permanent supportive housing through a scattered-site housing model. Step Up is in the process of developing approximately 70 additional permanent supportive housing units and have the capacity to contract many of those units to the City of Beverly Hills.
It should also be noted that Mayor Bass in Los Angeles and her Inside Safe program has been aggressively contracting with motel owners throughout Los Angeles to house people experiencing homelessness on a temporary basis while they identify the appropriate permanent supportive housing for those individuals. It is reasonable to believe that Los Angeles will try to contract for additional units of permanent supportive housing and so there is a significant urgency to secure units for Beverly Hills before the opportunity is lost.
As for the number of recommended units the City should acquire, we should look to current case law on homelessness and homeless encampments as set by federal Judge David Carter. Judge Carter has indicated that if a city wishes to enforce anti-camping ordinances on the unhoused, that the city must have housing available immediately to at least 60% of the current homeless population. The reasoning being that with that many housing units, if people decline services and entering housing, then cities can enforce anti-camping ordinances. Using the most recent point-in-time count performed by the Los Angeles Homeless Services Authority (LAHSA) in 2022 indicated Beverly Hills has 39 homeless individuals, housing for 60% of that population results in the need for 24 units.
With unhoused populations shifting and resources varying from city to city, it would be prudent for the City of Beverly Hills to look to contract for more than the minimum requirement of 24 units and look closer to 40 units. With the cost of acquiring land and constructing affordable housing units and permanent supportive housing units, it would be wise for the City to contract for up to 40 units of housing now, while the opportunity currently exists.
In order to start a conversation, Step Up has provided some basic cost information to the City. There are certain expenses that are one-time costs, such as furnishing the unit, onsite security, vehicles to transport to services, and overhead to recruit staff. The annual cost for a unit and services is $37,400 and the annual cost for a one bedroom and services is $41,000.
The annual cost for 40 units with all services included would be $1,662,200 or $16,622,000 over the 10 year agreement.
Fiscal Impact
There are no fiscal impacts at this time. If staff is directed to bring a complete proposal to the full City Council, a fiscal impact analysis will be performed at that time. 3 of 3
Recommendation
It is requested that City Council Liaisons provide direction to staff on the desire to bring forward a complete proposal for consideration to the full City Council to contract with Step Up on Second scattered-site permanent supportive housing units for the unhoused for an initial 10-year term.