ITEM 7B
Coachella Valley Association of Governments
Homelessness Committee
April 16, 2025
STAFF REPORT
Subject: Annual contributions to the CV Housing First Program
Contact: Erica Felci, Chief Operating Officer ([email protected])
Recommendation: Information
Background: At its November 2024 meeting, the Homelessness Committee reviewed the level of contributions that CVAG’s member jurisdictions make to the CV Housing First program. Based on the Homelessness Committee’s recommendation, the CVAG Executive Committee on December 2 , 2025 authorized the Executive Director to execute memorandums of understanding (MOUs) with member jurisdictions to increase the CV Housing First contribution to $125,000 in Fiscal Year 2025-26 and provide for annual inflation adjustments that are reviewed by the Homelessness Committee. The Executive Committee also asked for further review of this issue by CVAG’s Finance Committee.
The current rate of contributions date back to 2009. CVAG used these contributions to fund its regional homelessness programs – first Roy’s Desert Resource Center, and then later programs that evolved into CV Housing First. This process has historically involved CVAG staff sending a request to each city and Tribal Nation. The County of Riverside, which has been instrumental in helping CVAG secure additional funds through grants, has an agreement for general fund contributions through F iscal Year 2025-2026 that provides $359,711 annually. Sometimes the participating jurisdictions approve the request as part of the annual budget; other times, it is done through a separate action or a memorandum of understanding.
Some have done this based on calendar year, and others on fiscal year – adding to additional record keeping at CVAG.
The annual contribution requests to cities have remained consistent around $100,000 for more than 15 years and have not increased with the rates of inflation. Until Fiscal Year 2023-24, CV Housing First operations were fully funded by these contributions, including a now-ended contribution from the Desert Healthcare District/ Foundation, as well as occasional grants. This allowed CVAG to develop a fund balance and start planning for future needs. But the program now is operating at a deficit, as rents of the crisis stabilization units continue to increase and other costs go up.
CVAG’s Finance Committee met on February 24, and staff sought additional direction to address the questions raised by the Executive Committee at its December meeting related to equity . The Finance Committee is appointed by the Executive Committee and they each serve three- year terms. It is comprised of three Executive Committee members (currently Agua Caliente Band of Cahuilla Indians Tribal Chair Reid Milanovich; Rancho Mirage Mayor Ted Weill and Coachella Mayor Steven Hernandez) and three City/ County/ Tr ibal Nation managers (La Quinta City Manager Jon McMillen; Blythe Interim City Manager Mallory Crecelius; and, at the time, Desert Hot Springs City Manager Frank Luckino).
The main consideration when the Finance Committee met in February was whether an across-the-board rate should continue, or whether a rate should fluctuate across the cities based on various factors such as population size, figures in the Point in Time Count, historic contributions to affordable housing or economic capacity. The Finance Committee’s direction was to leave a singular rate across the board.
This acknowledges the interconnectedness of communities in the Coachella Valley and reinforces the idea that reducing homelessness in one area may reduce strain on others.
Based on this direction, CVAG staff has finalized a draft memorandum of understanding that will be circulated to member jurisdictions. Long-term funding agreements will ensure financial stability for the program and avoid the uncertainty – and significant staff time – that comes with the traditional process of asking cities for funds each year. CVAG staff has consulted with Legal Counsel, who notes that there is no legal impediment to cities entering into a multi -year commitment. Additionally, the California Constitution debt limit only prohibits a multi-year contract where the funds to pay the full contract are not on hand, and that the amount of this proposed MOU does not appear large enough to create that concern.
CVAG staff is providing this MOU for input and any additional comments. The Executive Committee has previously authorized the Executive Director to execute such agreements and they will be circulated to member jurisdictions for consideration upon final feedback from the Homelessness Committee.
Fiscal Analysis: Based on the Executive Committee’s action, CVAG will be increasing the annual contribution request to cities to $125,000 starting in Fiscal Year 2025-26. This would be the first time in more than 15 years that CVAG has increased the requested amount, which at one point was set at $103,000 when Roy’s Resource Center was open. It would generate an additional $200,000 if approved by all cities currently participating in the program.
The CV Housing First program, including the staffing and program operations, is funded by contributions from member jurisdictions and grants. Riverside County’s contribution through June 2026 is for $359,711 annually. CVAG’s Fiscal Year 2024- 25 Budget anticipates a $1,733,687 operating budget, with a $388,941 deficit being covered by the program’s fund balance. CVAG continues to seek grant opportunities, such as the Homeless Housing, Assistance and Prevention (HHAP) funding that is detailed in a separate staff report. CVAG projects there will be a $2.163 million fund balance after this fiscal year’s deficit-driven reduction. If this pattern continues and no additional funding is secured, the deficit will likely be depleted within three to five years. Staff would note that it is prudent to retain a fund balance of at least a year’s worth of program expenses. That way, CVAG could still address longer term commitments, such as rental agreements, if there ever came a time where the program was wound down.
This additional funding is necessary to maintain current levels of service, including a dedicated program staff of six full time employees and a conservative approach to the number of crisis stabilization units being rented. Much of the CV Housing First budget is tied directly to personnel costs because CV Housing First is a labor -intensive program. The team is directly managing each client, first during outreach and then while they are in a crisis stabilization unit. As previously noted by members of the Homelessness Committee, it takes a significant amount of staff time per client for that client to be successfully housed.
The program invests that time knowing that there is a time, and cost savings, when there are fewer chronically homeless individuals for code enforcement or law enforcement to address.
CVAG is also incorporating an annual inflation adjustment into the future MOUs. The inflation factor shall be reviewed annually by the Homelessness Committee. It shall be the same one utilized to budget other CVAG programs, which is based on the Riverside -San Bernardino-Ontario Area Consumer Price Index (CPI).
Attachment: Draft MOU for multi-year contributions
MEMORANDUM OF UNDERSTANDING BETWEEN
THE CITY/ COUNTY / TRIBAL NATION OF XXXXX
AND
COACHELLA VALLEY ASSOCIATION OF GOVERNMENTS
FOR FUNDING CV HOUSING FIRST AND ADDRESSING HOMELESSNESS This Memorandum of Understanding (the "Memorandum") is made by and between the CITY/ COUNTY / TRIBAL NATION OF XXXXX (“City/ County/ Tribe”) and the COACHELLA VALLEY ASSOCIATION OF GOVERNMENTS ("CVAG"), with respect to the following:
WHEREAS, the City/ County/ Tribe is interested in funding the provision of food, emergency shelter, and outreach to those in need and, in that regard would like to support the CVAG homelessness program; and
WHEREAS, the City / County/ Tribe is supporting CVAG's CV Housing First program as a regional solution for homeless individuals; and
WHEREAS, CVAG agrees to use the City / County/ Tribe funding for the CV Housing First program to provide case management and outreach services to chronically homeless individuals in the Coachella Valley for the coming years; NOW, THEREFORE, the City/ County/ Tribe and CVAG agree to the following:
1.0 TERM OF MEMORANDUM.
The term of this Memorandum shall expire on June 30, 2028 , unless earlier terminated by either party by giving written notice of termination at least sixty (60) days prior to July 1st of any fiscal year.
2.0 OBLIGATIONS OF THE PARTIES.
2.1 CVAG shall provide the services set forth in Exhibit A attached hereto and incorporated herein by this reference ("Scope of Services"). CVAG shall deliver quarterly reports to the City/ County/ Tribe detailing the CV Housing First program metrics as set forth in Exhibit B attached hereto and incorporated by this reference ("Quarterly Reports"). CVAG shall comply with any and all federal, state, and local laws and regulations applicable to CVAG, the Scope of Services, and the use of the City/ County/ Tribe Funds (as defined in Section 2.2 below) and the use of any other public mone ys (collectively, the "Compliance Requirements").
2.2 The City/ County/ Tribe will provide financial support each fiscal year for the duration of the agreement. (''City/ County/ Tribal Funds"). In Fiscal Y ear 2025-26, the payment shall be One Hundred Twenty -Five Thousand Dollars ($125,000) to CVAG. Subsequent annual payments shall incorporate an annual inflation adjustment that mirrors the one used by CVAG for its Transportation Uniform Mitigation Fee and be based on the Riverside -San Bernardino-Ontario Consumer Price Index (CPI). Such CPI will be review ed annually by the Homelessness Committee, which will determine whether or not to apply the inflation factor.
2.3 The City/ County/ Tribal Funds shall be paid provided CVAG complies with its obligations under this Memorandum and provided that the Memorandum is not earlier terminated as provided for herein. The City / County/Tribe shall disburse the f unds no later than 90 days after the beginning of each fiscal year. All funds shall be used by CVAG for the Scope of Services and for no other purpose. If CVAG fails to provide CV Housing First services f or a fiscal y ear , the City/ County/ Tribe may withhold an installment disbursement of the Funds that have not yet been disbursed. If CVAG fails to c omply with any Compliance Requirements, the City/ County/ Tribe may (i) withhold an installment disbursement that has not yet been disbursed, (ii) order a return to the City/ County/ Tribe of any portion or all City/ County/ Tribe Funds that were not used in compliance with this Memorandum or any other Compliance Requirements, and/or (iii) seek any other rights or remedies available at law or in equity.
3.0 INDEMNITY AND RELEASE.
CVAG hereby agrees to indemnify, defend, and hold harmless the City/ County/ Tribe and its officers, employees, agents and independent contractors (collectively, "Indemnitees") from and against any and all of claims, causes of action, obligations, losses, liabilities, judgments, or damages, including reasonable attorneys' fees and costs of litigation ( collectively "Claims") arising out of and/or in any way relating to CVAG's activities in the performance of this Memorandum, or to CVAG's acts and/or omissions in providing or administering the same, excepting only those claims, actions, obligations, losses, liabilities, judgments, or damages arising out of the sole negligence, active negligence or willful misconduct of the City/ County/ Tribe.
4.0 CVAG INSURANCE OBLIGATIONS.
Without limiting the indemnification provisions provided herein, CVAG, at its sole expense, shall obtain and keep in force during the term of this Memorandum and any extensions thereof, a policy or policies of general liability insurance covering all injuries to persons and damage to property occurring in, upon or about the CVAG facility(ies) resulting from any actions or omissions of CVAG or any use of the CVAG facility(ies), or the CVAG's invitees in
accordance with the terms of this Memorandum. At the City/ County/ Tribe’s request, these CVAG shall submit certificates of insurance and any applicable endorsements evidencing that the foregoing policy or policies are in effect.
5.0 ADDITIONAL PROVISIONS.
5.1 In all cases, the language in all parts of this Memorandum shall be construed according to its fair meaning and not strictly for or against either party, if being agreed that the parties or their agents have all participated in the preparation of this Memorandum.
5.2 This Memorandum contains the entire agreement of the Parties and supersedes any prior oral or written statements or agreements between the Parties regarding the operation of CVAG's CV Housing First Program.
5.3 No termination of this Memorandum shall release either party from any liability or obligation hereunder resulting from any acts, omissions or events happening prior to the termination of this Memorandum.
5.4 In the event either party brings any suit or other proceeding with respect to the subject matter or enforcement of this Memorandum, the prevailing party (as determined by California law) shall, in addition to such other relief as may be awarded, be entitled to recover reasonable attorneys' fees, expenses and costs of suit or investigation as actually incurred (including, without limitation, reasonable attorneys' fees, expenses, and costs incurred in establishing the right to indemnification).
[signatures on next page]
IN WITNESS WHEREOF , Coachella Valley Association of Governments and the CITY/ COUNTY/ TRIBAL NATION have executed this Memorandum as evidenced by the signatures contained below:
CITY/ COUNTY/ TRIBAL NATION COACHELLA VALLEY
OF XXXXXX ASSOCIATION OF GOVERNMENTS
By: ______________________________ By: ______________________________ Name: __________________________ Name: Tom Kirk
Title: ____________________________ Title: Executive Director Date: ___________________________ Date: ___________________________
ATTEST ATTEST
By: ______________________________ By: ______________________________ Name: __________________________ Name: Allen McMillen
Title: ____________________________ Title: CVAG Contracts Analyst Date: ___________________________ Date: ___________________________
EXHIBIT A
Scope of Services
Provide services to unhoused individuals and families in the Coachella Valley, and more specifically in the CITY/COUNTY/TRIBAL NATION who are literally homeless by providing outreach, connections to housing solutions (including crisis stabilization housing and/or permanent solutions), rapid resolution assistance for one-time emergency needs such as move-in costs, or other supportive services and resources such as food distribution, legal services or clinics, and linkages to housing services.
EXHIBIT B
CV Housing First Metrics and Reporting Requirements
CVAG will also provide a quarterly report, modeled after the one attached, that provides an overview of services provided across the Coachella Valley. In addition, if requested by the City/ County/ Tribe, CVAG shall provide information on the following program components on a six-month basis:
• Number of unduplicated CV 200 clients from the City/ County/ Tribe who moved into crisis stabilization housing
• Number of permanent housing resolutions for CV 200 clients from the City/ County/ Tribe • Number of contacts made with CV 200 clients in the City/ County/ Tribe • Number of total outreach scheduled outings in the City/ County/ Tribe