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JUNE 13, 2023
ROLL CALL
-
2:00 PM
-
Report of the City Clerk of the City Council and Housing Authority, re: Posting of Agenda.
The Agenda for the Tuesday, June 13, 2023 joint public meeting of the City Council and Housing Authority was posted on Thursday, June 8, 2023, on the Bulletin Board outside City Hall.
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CC HA
A
JOINT PUBLIC MEETING
of the City Council and Housing Authority is hereby called to meet at
2:00 PM
on
Tuesday, June 13, 2023
, in the Council Chamber, 613 E. Broadway,
2nd Floor, Glendale, CA 91206 to consider the following item(s) of business, to wit;
1. Community Development, re: FY 2023-24 Glendale Housing Authority Budget with Approval of a Professional Services Contract Amendments with Emphasys Software, Kane, Ballmer and Berkman, and Heritage Housing Partners a. Council Resolution Making Findings and Approving Expenditures of Low Moderate Income Housing Asset Funds for Administration and Planning and Expenditures Outside Redevelopment Project Areas for the FY 2023-24 Housing Authority Budget b. Housing Authority Resolution Making Findings and Approving Expenditures of Low Moderate Income Housing Asset Funds for Administration and Planning and Expenditures Outside Redevelopment Project Areas for the FY 2023-24 Housing Authority Budget and Adopting the FY 2023-24 Housing Authority Budget
c. Housing Authority Motion to Approve an Amendment to the Professional Services Agreement with Emphasys Software (C105966A) to Increase the Contract Amount by $250,000 for a New “Not to Exceed” Contract of $736,425 for a Computer Software License with Maintenance and Hosting of the Housing Authority Owner Portal and to Extend the Agreement Term for One Year to End August 31, 2024 d. Housing Authority Motion to Approve an Amendment to the Professional Services Agreement with Kane, Ballmer and Berkman (C106203) to Increase the Contract Amount by $180,000 for a New “Not to Exceed” Contract of $740,000 for Affordable Housing Legal Services and to Extend the Agreement Term for Two Years to June 30, 2025 e. Council Motion to Approve Amendment to the Servicing Agreement between the Housing Authority of the City of Glendale and Heritage Housing Partners, Extending the Agreement Term for Two Years to June 30, 2025
2. Community Services and Parks, re: Grant funds from Health Net, LLC and L.A. Care under the Housing and Homeless Incentive Program
a. Council Motion approving acceptance of grant funds in the amount of $132,334.20 from Health Net, LLC “the Health Plan” pursuant to Code of Federal Regulations, Title 42, Section 438.6(b), and funded by the California Department of Health Care Services (DHCS) Housing and Homelessness Incentive Program
b. Council Motion approving acceptance of grant funds in the amount of $308,779.80 from the Local Initiative Health Authority for Los Angeles County, operating and doing business as L.A. Care Health Plan (L.A. Care) for the Homelessness Incentive Program Investment c. Council Resolution of Appropriation to appropriate grant funds totaling $441,114 from Health Net LLC and L.A. Care Health Plan
ADJOURNMENT
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CC HA
1 CITY OF GLENDALE, CALIFORNIA
REPORT TO THE JOINT MEETING: GLENDALE CITY COUNCIL AND GLENDALE
HOUSING AUTHORITY
AGENDA ITEM
Report: FY 2023-24 Glendale Housing Authority Budget with Approval of a Professional Services Contract Amendment with Emphasys Software, Kane, Ballmer and Berkman, and Heritage Housing Partners.
1) Resolution of the City Council Making Findings and Approving Expenditures of Low Moderate Income Housing Asset Funds for Administration and Planning and Expenditures Outside Redevelopment Project Areas for the FY 2023-24 Housing Authority Budget; and
2) Resolution of the Housing Authority Making Findings and Approving Expenditures of Low Moderate Income Housing Asset Funds for Administration and Planning and Expenditures Outside Redevelopment Project Areas for the FY 2023-24 Housing Authority Budget and Adopting the FY 2023-24 Housing Authority Budget; and 3) Motion of the Housing Authority to Approve an Amendment to the Professional Services Agreement with Emphasys Software (C105966A) to Increase the Contract Amount by $250,000 for a New “Not to Exceed” Contract of $736,425 for a Computer Software License with Maintenance and Hosting of the Housing Authority Owner Portal; and to Extend the Agreement Term for One Year to End August 31, 2024; and 4) Motion of the Housing Authority to Approve an Amendment to the Professional Services Agreement with Kane, Ballmer and Berkman (C106203) to Increase the Contract Amount by $180,000 for a New “Not to Exceed” Contract of $740,000 for Affordable Housing Legal Services; and to Extend the Agreement Term for Two Years to June 30, 2025; and
5) City Council Motion to Approve Amendment to the Servicing Agreement between the Housing Authority of the City of Glendale and Heritage Housing Partners, Extending the Agreement Term for Two Years to June 30, 2025.
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8 COUNCIL ACTION
Item Type: Action Item
Approved for June 13, 2023 calendar
EXECUTIVE SUMMARY
Community Development Department, Housing Division presents the Fiscal Year 2023- 24 budget of all Housing funds for consideration and budget adoption.
COUNCIL PRIORITIES
Not applicable
RECOMMENDATION
That City Council and Housing Authority adopt the FY 23-24 budget as presented and make the required findings to utilize funds outside of the Redevelopment Project Areas; Housing Authority amend the contracts with Emphasys Software and Kane, Ballmer, Berkman; and Council amend the contract with Heritage Housing Partners.
BACKGROUND
The proposed budget for the Housing Authority is $57,904,845 for FY 2023-24. This proposed budget was presented and discussed as part of the Community Development Department presentation during the Budget Study session on May 23, 2023.
The Housing Authority Budget is primarily a grant funded / special revenue specific budget with funding from:
1. Federal sources that are received on an annual basis.
2. Encumbered assets/program income from previous investments of Redevelopment 20% Housing Set Aside funds.
3. Development related affordable housing fees including the Affordable Housing Density Bonus fee, City-Wide Inclusionary Housing In-Lieu fee, and the Commercial Development Impact fee; and
4.One-time State grant awards.
The Housing Authority has the responsibility for administering the following programs:
• The Housing Assistance Fund (2020) – which provides federal Section 8 Housing Choice Vouchers (HCV), VASH, and Mainstream Vouchers for rental assistance to low- income households. Also included is the newly created (2021) Emergency Housing Vouchers (EHV) to assist individuals and families who are homeless, at-risk of homelessness, fleeing, or attempting to flee, domestic violence, dating violence, sexual 4 of 40
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8 assault, stalking, or human trafficking, or were recently homeless or have a high risk of housing instability.
• The HOME Grant Fund (2030) – which provides federal funds for housing development and preservation activities for low-income households. • The Continuum of Care Grant Fund (2040) – (operated by Community Services & Parks) which provides federal funds for supportive services and/or Rapid Re-Housing, permanent, and innovative housing to assist homeless people achieve independence including Rapid Re- Housing, Permanent, and Innovative Supportive Housing. • The Affordable Housing Trust Fund (2090) – which holds funds received from inclusionary housing fees, affordable housing density bonus fees, and miscellaneous program income to be expended on affordable housing purposes not covered by other restricted state and federal housing funds.
• The BEGIN Affordable Homeownership Fund (2120) – which provides State funds for down payment assistance to first time home buyers who are Moderate Income households (currently invested in the Doran Gardens project). • The LMIHAF Fund (2130) – which holds income and encumbered assets from previous 20% Redevelopment Set Aside funds for housing development and preservation activities (including administration and program delivery) for Low- and Moderate-Income households, in accordance with State law; and • The Housing Mitigation Fee Fund (4110) – which will receive deposits from the Commercial Development Impact Fee and is a new fund set up for tracking and legal/reporting purposes.
• Housing Acquisition, Assistance and Services (Measure S) – which provides for the acquisition of property for new affordable housing development, housing assistance through the Monthly Housing Subsidy Program, Low Income Student Rental Assistance Program, Low Income Family Employment and Rental Assistance Program, and landlord/tenant services through the Rental Rights Program.
The FY 2023-24 proposed budget for each of the Housing Funds is summarized in Exhibit 1 and must be approved by the Housing Authority. For the Continuum of Care Grant Fund (2040), all of the FY 2023-24 budget will be a carryover from the FY 2022- 23 budget due to the entire amount of the grant ($2,741,171) appropriated on May 23, 2023 (FY 2022-23). The Housing Acquisition, Assistance and Services programs are being funded out of Measure S and will be appropriated as part of the City’s Budget. 5 of 40
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8 Requirement for Findings Related to Former Redevelopment Areas:
Despite substantial changes to the sections of the California Law that apply to Redevelopment (including the dissolution of Redevelopment agencies), some elements of Redevelopment law remain. Redevelopment Project Areas were not eliminated, and the requirement remains to approve proposed expenditures of the Redevelopment 20% Set Aside program income (LMIHAF) funds outside the project area as being necessary in order to increase, improve and preserve the supply of affordable housing within the City. Also, the requirement to approve the necessity and appropriateness of the expenditure of LMIHAF funds for administration and planning purposes remains as well.
This has been approved annually in previous year’s budgets and new City Council and Housing Authority resolutions are included in this report to meet those State requirements.
Information Regarding Section 8 HCV, VASH, EHV, and Mainstream Program Expenditures Review:
In preparing the Section 8 federal fund expenditures included in the FY 2023-24 proposed Housing Authority Budget, expenditures have been reviewed for conformance with HUD’s requirements under the Uniform Administrative requirements, Cost Principles, and Audit requirement for Federal Awards.
FY 2023-24 Proposed Contractual Services Request
Emphasys Computer Solutions, Inc. dba Emphasys Software (Emphasys):
Emphasys is a respected, efficient, and effective database for managing the complex relationships between property owner, a renter, the Housing Authority, and HUD for the Section 8 program. Beyond its software tools and product support, one of the strengths of Emphasys Software is that it has developed a strong relationship with HUD that allows it to work closely with HUD to integrate new or changing regulations and program components into its software system. Housing Authorities through the country use this software system, including local agencies such as Anaheim, Long Beach, San Diego County, and most importantly, the Housing Authority of the City of Los Angeles (HACLA). There are approximately 1,074 families with HACLA port vouchers residing in Glendale. Reconciliation of monthly payments between Glendale and HACLA is much more efficient due to the use of the same software.
As in previous years, staff is seeking funding to renew the annual service contract with Emphasys. Extending and funding the existing contract for the coming fiscal year will provide Section 8 operations with an ongoing service agreement for supporting the software and annual hosting of a new owner portal and upgrades that were authorized by the Housing Authority in October 2020. The proposed amendment would extend the contract for a ninth year of support and licensing.
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8 An amendment to the PSA with Emphasys (C105966A) is necessary to support ongoing Section 8 Housing Choice Voucher Program activities. The proposed amendment would increase the approved contract amount by $250,000 to a new total amount not to exceed $736,425 and extend the contract for one year through August 31, 2024.
Kane, Ballmer, Berkman (KBB): KBB is a law firm that provides the Housing Authority with specialized affordable housing legal services for affordable housing development projects and specialized programs. These services augment the City Attorney Office's work in this area. The need for these services is based upon the number and complexity of projects in development during the fiscal year. At each stage of development, including negotiations, financing, land acquisition, and construction financing, specialized legal services are required to assure that the Housing Authority's interests are protected and that the requirements of State and Federal regulations governing use of Housing Authority funding sources are met. Continuous service by a professional legal services firm is important for quick and effective implementation of housing development projects.
At this time, the Housing Authority’s current Professional Services Agreement (PSA) with KBB funding balance expires June 30, 2023, and staff is recommending an amendment to the current PSA to continue the agreement. The original KBB PSA was approved beginning July 1, 2016, in the amount of $50,000. An amendment was approved by the Housing Authority effective July 1, 2017, increasing the contract amount by $50,000, to a total of $100,000 and extended the term through June 30, 2019. A second amendment made April 3, 2018, added $70,000 to the contract for a total contract amount of $170,000. In July 2018, a Request for Proposals was issued for professional affordable housing legal services. Of the responses received, KBB was found to be the firm with the lowest fees for services. Subsequently, the PSA with KBB was amended in 2019 adding $150,000 to the contract for a total contract amount of $320,000. The contract was amended once again in 2021 adding $240,000, for a total contract amount of $560,000.
Staff is now requesting that an amendment for an additional $180,000 for this PSA and that the contract term be extended an additional two years to June 30, 2025. Having this PSA funded and secure for two more years will allow Housing staff to aggressively initiate, develop, and complete its three existing and complex affordable housing sites (Piedmont, Pioneer and E. Broadway sites) but also allow staff to search out and identify future affordable housing projects as quickly as possible and without legal delay of moving them forward once projects are identified.
Because affordable housing project funding sources vary, between both federal HOME and/or LMIHAF funding, staff has budgeted the $180,000 as part of the FY 2023-24 Proposed Budget, with $80,000 coming from the HOME Grant Fund (2030) and 7 of 40
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8 $100,000 from the Low & Mod Income Housing Asset Fund (2130). This full amount is projected to be required to complete existing and pursue new projects in the two years.
No General Funds will be utilized.
Heritage Housing Partners (HHP): HHP is a nonprofit affordable housing developer that developed the 57-unit Doran Gardens affordable homeownership housing development at 331 W. Doran which completed construction and home sales from 2013 to 2014. As a condition of the initial funding of the development, HHP was required to perform loan servicing functions for the units for the first five years and the responsibility of those functions then was supposed to shift back to the Housing Authority. Over time, homeowners have been interested in selling the homes they purchased over 5 years ago. In discussions and with HHP and Housing staff’s experience with them in the first five years of loan servicing, Housing staff recommended that HHP take on the loan servicing functions on a permanent basis, through the administration of a Professional Services Agreement.
The 57 homeownership units at Doran Gardens were sold to qualified, moderate- income, first-time home buyers at a restricted sales price, relative to their income and the requirements of redevelopment set aside law. The project was designed to restrict all future sales of the units under the same criteria so that the affordability of these units continues to subsequent buyers for 45 years. This is accomplished through a First Right of Refusal option incorporated into the covenants of the units. As a result, there is a significant amount of loan servicing requirements and demands associated with managing a portfolio of this size and complexity.
When a homeowner is interested in selling a unit, they must notify the City/HHP of their intent and the City must exercise that right within a certain number of days. The City/HHP must then either market and find a qualified replacement buyer to purchase the unit at a restricted sales price directly from the seller within a specific timeframe, or must purchase the unit at the restricted sales price, and then market the units for resale at a timeline of its choosing. This would entail the HHP taking title to property, possibly making needed repairs and upgrades to the units, managing and financing of the unit during the holding period, and then marketing and eventually reselling the units. These are all complex functions that require quick responses to the buyers within a limited timeframe.
The proposed contract with HHP would require them to administer and fund that process with a line of credit provided and held by the Housing Authority. That line of credit was previously provided at $1.2M. This line of credit would fund the interim purchase of homes, when necessary, and would be largely repaid through an eventual resale of the units. HHP will be paid for their services via a 6% commission based on the contract price for the home. Under this proposal, HHP would be responsible for all 8 of 40
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8 transaction costs (i.e., holding costs, escrow, etc.). The contract extension is proposed for two more years.
ANALYSIS
This is a fiscally responsible budget, meeting Council’s goal of providing quality housing to the Glendale community. The presented budget, findings, and contract amendment will allow the Housing division to continue to successfully administer a robust Housing program.
STAKEHOLDERS/OUTREACH
Not applicable.
FISCAL IMPACT
This report presents the annual proposed FY 2023-24 Housing Budget of $57,904,845 to the Housing Authority for adoption. No General Fund dollars are proposed for this budget as all programs, projects, staff, and operations are fully funded with special revenues.
Emphasys Software: This contract amendment is included in the Federal Section 8 Funds for affordable housing in the proposed FY 2023-24 budget as follows:
43110-2020-CDD-0020-P0000-T0000-F0000-0000-0000
G65001-CNTRCTSVCS-0000 Section 8 Housing Choice Voucher Program $250,000 Affordable Housing Legal Services – Kane, Ballmer, Berkman: The fiscal impact for the amendment to the agreement with Kane, Ballmer, Berkman is limited to the amount of the amendment, $180,000.
The $180,000 for this contract amendment is included in both the federal HOME Funds and local Low and Moderate Income Housing Asset Funds (LMIHAF) for affordable housing in the proposed FY 2021-22 budget as follows:
43110-2030-CDD-0020-P0000-T0000-F0000-0000-0000- $80,000 G65002-CNTRCTSVCS-0000 HOME Grant Fund -
43110-2130-CDD-0020-P0000-T0000-F0000-0000-0000- $100,000 G65004-CNTRCTSVCS-0000 LMIHA Fund –
Heritage Housing Partners: There is no fiscal impact with Heritage Housing Partners action. The Service Agreement is simply being extended two years, to June 30, 2025, and existing funding carried over.
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8 ENVIRONMENTAL REVIEW (CEQA/NEPA)
Not applicable.
CAMPAIGN DISCLOSURE
The names and business addresses of the members of the board of directors, the chairperson, CEO, COO, CFO, Subcontractors and any person or entity with more than 10% interest in the company proposed for contract in this Agenda Item Report are attached in Exhibit 2, in accordance with the City Campaign Finance Ordinance No. 5744.
ALTERNATIVES
Alternative 1: Make findings and approve expenditures of the LMIHA Funds for administration and planning and expenditures outside Redevelopment Project Areas for the FY 2023-24 proposed Housing Authority Budget; the Housing Authority may approve the FY 2023-24 proposed Housing Authority Budget; and the Housing Authority may approve the contract amendments with Emphasys Computer Systems, and Kane, Ballmer, Berkman, and City Council approve the amendment to the contract with Heritage Housing Partners.
Alternative 2: Disapprove the proposed findings and expenditures of the funds from LMIHAF for administration and planning and expenditures outside Redevelopment Project Areas for the FY 2023-24 proposed Housing Authority Budget; the Housing Authority may disapprove the FY 2023-24 proposed Housing Authority Budget; and the Housing Authority may reject the contract amendments with Emphasys Computer Systems, and Kane, Ballmer, Berkman, and the City Council may reject the contract amendment with Heritage Housing Partners. This would result in the delay of Section 8 and HDP operations and greatly impact their effectiveness in providing affordable housing and housing assistance.
Alternative 3: The City Council and Housing Authority may consider any other alternative not proposed by staff.
ADMINISTRATIVE ACTION
Prepared by:
Peter Zovak, Assistant Director of Community Development Approved by:
Roubik R. Golanian, P.E., City Manager
EXHIBITS/ATTACHMENTS
Exhibit 1: FY 2023-24 Glendale Housing Authority Budget Summary 10 of 40
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8 Exhibit 2: Campaign Disclosure Forms
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RESOLUTION No. ___________
RESOLUTION OF THE COUNCIL OF THE CITY OF GLENDALE, CALIFORNIA
MAKING FINDINGS WITH RESPECT TO ADMINISTRATIVE EXPENSES
AND EXPENDITURES OUTSIDE THE REDEVELOPMENT PROJECT AREAS FOR THE 2023-24 HOUSING AUTHORITY BUDGET
WHEREAS, the Housing Authority of the City of Glendale (“Housing Authority”) administers the Low Moderate Income Housing Asset Fund (LMIHAF) pursuant to Health and Safety Code Section 33334.3 for the purpose of increasing, improving and preserving the City’s affordable housing stock; and
WHEREAS, the Housing Authority must incur certain administrative expenses in connection with its programs to increase, improve and preserve the supply of affordable housing within the City; and
WHEREAS, the Housing Authority finds that the expenditure of LMIHAF outside the Central Glendale and the San Fernando Road Corridor Redevelopment Project areas (the “Project Areas”) will be of benefit to the Project Areas as the completion of project implementation within the Project Areas and will continue to generate jobs within the Project Areas, thereby creating the need for programs throughout the City to increase the supply of affordable housing and improve and preserve the City’s existing affordable housing stock.
NOW THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF GLENDALE, CALIFORNIA AS FOLLOWS:
SECTION 1.The Council finds and determines that the planning and administrative expenses provided for in the Housing Authority’s Fiscal Year 2023-24 Budget to be made from the LMIHAF are necessary for the production, improvement and preservation of low- and moderate- income housing and directly relate to the projects and programs funded by the LMIHAF.
SECTION 2.The Council finds that the expenditure of LMIHAF outside the Redevelopment Project areas (Central and San Fernando) will be of benefit to the Redevelopment Project areas as the implementation of the Redevelopment Projects has and will continue to generate jobs in the Redevelopment Projects, thereby creating the need for programs throughout the City to increase the supply of affordable housing and improve and preserve the City’s existing affordable housing stock.
Adopted this _____ day of June, 2024.
______________________________
Mayor
ATTEST:
__________________________________
City Clerk
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STATE OF CALIFORNIA )
) SS
COUNTY OF LOS ANGELES )
I, Suzie Abajian, Ph.D., City Clerk of the City of Glendale, certify that the foregoing Resolution No. was adopted by the Council of the City of Glendale, California, at a regular meeting held on the day of , 2024, by the following vote:
Ayes:
Noes:
Absent:
Abstain:
___________________
City Clerk
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RESOLUTION No. ___________
RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF GLENDALE
MAKING FINDINGS WITH RESPECT TO ADMINISTRATIVE EXPENSES
AND EXPENDITURES OUTSIDE THE REDEVELOPMENT PROJECT AREAS FOR THE 2023-24 HOUSING AUTHORITY BUDGET AND ADOPTING
THE 2023-24 HOUSING AUTHORITY BUDGET
WHEREAS, the Housing Authority of the City of Glendale (“Housing Authority”) administers the Low Moderate Income Housing Asset Fund (LMIHAF) pursuant to Health and Safety Code Section 33334.3 for the purpose of increasing, improving and preserving the City’s affordable housing stock; and
WHEREAS, the Housing Authority must incur certain administrative expenses in connection with its programs to increase, improve and preserve the supply of affordable housing within the City; and
WHEREAS, the Housing Authority finds that the expenditure of LMIHAF monies outside the Central Glendale and the San Fernando Road Corridor Redevelopment Project areas (the “Project Areas”) will be of benefit to the Project Areas as the completion of project implementation within the Project Areas and will continue to generate jobs within the Project Areas, thereby creating the need for programs throughout the City to increase the supply of affordable housing and improve and preserve the City’s existing affordable housing stock; and
NOW THEREFORE, BE IT RESOLVED BY THE HOUSING AUTHORITY OF THE CITY OF GLENDALE AS FOLLOWS:
SECTION 1.The Housing Authority finds and determines that the planning and administrative expenses provided for in the Fiscal Year 2023-24 Housing Authority Budget to be made from the LMIHAF are necessary for the production, improvement and preservation of low- and moderate-income housing and directly relate to the projects and programs funded by the LMIHAF.
SECTION 2.The Housing Authority finds that the expenditure of LMIHAF monies outside the Redevelopment Project areas (Central and San Fernando) will be of benefit to the Redevelopment Project areas as the implementation of the Redevelopment Projects has and will continue to generate jobs in the Redevelopment Projects, thereby creating the need for programs throughout the City to increase the supply of affordable housing and improve and preserve the City’s existing affordable housing stock.
SECTION 3. The Housing Authority hereby adopts the Fiscal Year 2023-24 Housing Authority Budget as set forth and described in the Joint Report to the Housing Authority and City Council dated June 13, 2023.
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Adopted this _____ day of June, 2023.
______________________________
Chair
ATTEST:
__________________________________
Authority Clerk
STATE OF CALIFORNIA )
) SS
COUNTY OF LOS ANGELES )
I, Suzie Abajian, Ph.D., Clerk of the Housing Authority of the City of Glendale, do hereby certify that the foregoing Resolution No.______________was duly adopted by the Housing Authority of the City of Glendale, at a Joint Meeting of the Housing Authority and the Council of the City of Glendale held on the _______ day of ________________________, 2023, and that the same was adopted by the following vote:
Ayes:
Noes:
Absent:
Abstain:
___________________________________________
Clerk of the Housing Authority of the City of Glendale
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MOTION
Moved by Housing Authority Member ____________________________, seconded by Housing Authority Member ___________________________, that the Executive Director, or his designee, is hereby authorized to execute an amendment to an existing professional services agreement (PSA) with Emphasys Software (C105966A) for a computer software license with maintenance and hosting of the Housing Authority Owner Portal. The amendment will amend the PSA to increase the contract amount by $250,000 for a new not-to-exceed amount of $736,425 and will to extend the term of the agreement for one year to end on August 31, 2024.
The amendment shall be in a form approved by the City Attorney.
Vote as follows:
Ayes:
Noes:
Absent:
Abstain:
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MOTION
Moved by Housing Authority Member ____________________________, seconded by Housing Authority Member ___________________________, that the Housing Authority hereby approves an amendment to the Professional Services Agreement between the Housing Authority and Kane Ballmer & Berkman (C106203) in connection with professional legal services necessary in the area of affordable housing development as described in the Joint Report to the Council and Housing Authority dated June 13, 2023. The amendment to the agreement will (i) increase the contract amount by $180,000 to a total not to exceed $740,000 and (ii) extend the contract term for two years to June 30, 2025.
The Executive Director or his designee is authorized to execute the amendment to the agreement subject to approval by the City Attorney.
Vote as follows:
Ayes:
Noes:
Absent:
Abstain:
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M O T I O N
Moved by Council Member__________________________,
seconded by Council Member ___________________________, that the Council hereby approves an amendment to the contract with Heritage Housing Partners for loan servicing and administering a line of credit for the purchase/resale of Doran Affordable Homeownership Units. The amendment will extend the agreement term for two years to June 30, 2025, as particularly outlined in the Joint Report to the Council and Housing Authority dated June 13, 2023.
Vote as follows:
Ayes:
Noes:
Absent:
Abstain:
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CITY OF GLENDALE Exhibit 1
GLENDALE HOUSING AUTHORITY
SUMMARY OF THE BUDGET FOR THE YEAR ENDING JUNE 30, 2024 2120 - BEGIN
2040 - Continuum
of Care Grant
Fund*
Affordable
Homeownership
Fund
2130 - Low&Mod
Income Housing
Asset Fund
4110 - Housing
Development
Impact Fee Fund
2020 - Housing
Assistance Fund
2030 - Home Grant
Fund
2090 - Affordable
Housing Trust Fund Total
Estimated Resources
Interest/Use of Money and Property $ 99,000 $ -
-
-
$ - $ 42,000
42,440
$ -
-
-
-
$ 68,000 $ -
-
$ 209,000
42,440
86,348
Charges for Services
Licenses & Permits
Revenue from Other Agencies
Misc and Non-Operating Revenue
- -
-
-
-
-
-
-
-
53,945,509
-
-
-
-
86,348
1,576,169
130,000
-
-
55,521,678
1,540,00010,000 1,400,000
TOTAL RESOURCES $ 54,044,509 $ 1,706,169 $ - $ 84,440 $ 10,000 $ 1,468,000 $ 86,348 $ $
57,399,466
Estimated Appropriations
Salaries & Benefits
Maintenance & Operation
$ 2,720,775
51,506,388
$ 379,288
1,326,881
$ -
-
$ 79,852
29,571
$ - $ 345,432
1,506,658
$ -
-
3,525,347
54,379,49810,000
TOTAL APPROPRIATIONS $
$
54,227,163 $ 1,706,169
-
$
$
-
-
$
$
109,423 $ 10,000
-
$
$
1,852,090 $ - $
$
57,904,845
(505,379)NET SURPLUS/(USE OF FUND BALANCE) (182,654) $ (24,983) $ (384,090) $ 86,348 *Fund 2040 – 2022 Continuum of Care Grant ($2,741,171) appropriated in May 2023. Projects will carryover to FY 2023-24. 19 of 40
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2 CITY OF GLENDALE, CALIFORNIA
REPORT TO THE GLENDALE CITY COUNCIL
AGENDA ITEM
Report: Grant funds from Health Net, LLC and L.A. Care under the Housing and Homeless Incentive Program.
1) Council Motion approving acceptance of grant funds in the amount of $132,334.20 from Health Net, LLC “the Health Plan” pursuant to Code of Federal Regulations, Title 42, Section 438.6(b), and funded by the California Department of Health Care Services (DHCS) Housing and Homelessness Incentive Program. 2) Council Motion approving acceptance of grant funds in the amount of $308,779.80 from the Local Initiative Health Authority for Los Angeles County, operating and doing business as L.A. Care Health Plan (L.A. Care) for the Homelessness Incentive Program Investment.
3) Resolution of Appropriation to appropriate grant funds totaling $441,114 from Health Net LLC and L.A. Care Health Plan
COUNCIL ACTION
Item Type: Consent item
Approved for June 13, 2023 calendar
EXECUTIVE SUMMARY
The City of Glendale (City), on behalf of the Homeless Continuum of Care (CoC), has received grant funds totaling $441,114 from L.A Care and Health Net LLC, under the Homeless and Housing Incentive (HHIP) Program funded by the California Department of Health Care Services (DHCS). Through the HHIP Program, managed care plans can coordinate with the local CoC’s to provide health care services, homelessness prevention, interim housing (particularly for aging/or disabled population, rapid re-housing (families and youth) and permanent supportive housing to Medi-Cal recipients. Funds will be awarded to the homeless services lead agency Ascencia to provide intensive case management to forty-five chronically homeless households in the City’s Shelter Plus Care Rental Assistance Program.
COUNCIL PRIORITIES
Housing
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0 RECOMMENDATION
That City Council approve a Motion accepting grant funds from Health Net, LLC and L.A.
Care, awarded by the DHCS Housing and Homelessness Incentive Program and approve the Resolution of appropriation to appropriate $132,334.20 in grant funds received by Health Net, LLC, and $308,779.80 from L.A. Care.
BACKGROUND
The Housing and Homeless Incentive Program (HHIP) is funded by DHCS in accordance with Section 9817 of the American Rescue Plan Act (ARPA) of 2021. DHCS developed Medi-Cal Home and Community-based Services (HCBS) spending plan detailing a series of initiatives that will enhance, expand, and strengthen HCBS in California. HHIP is a voluntary incentive program that enables Medi-Cal managed care plans (MCP)s to earn incentive funds for making progress in addressing homelessness and housing insecurity as social determinants of health. Funds will allow the MCP’s to do the following:
•Develop partnerships between MCP’s and social service agencies, counties, public health agencies, and public and community-based housing to address homelessness.
•Provide Rapid Rehousing for Medi-Cal families and youth, and interim housing for aging and disabled populations.
•Expand access to housing services and street medicine programs. •Improve access to coordinated housing, health, and other social services. •Reduce avoidable use of costly health care services.
•Improve whole person health for Medi-Cal enrollees, including behavioral health treatment and resources.
•Implement solutions that manage information to better identify populations of focus and member needs
Between April and June of 2022, MCP’s (L.A. Care and Health Net, LLC) invited stakeholders to participate in the development of the Local Homelessness Plan (LHP) for HHIP development process. Through this process, LHP was submitted to DHCS, in partnership with local CoC’s, public health jurisdictions, county behavioral health, Public Hospitals, county social services, and local housing departments.
As part of the investment plan, the City will receive a grant totaling $441,114 from Health Net and L.A. Care for a twenty-four month period under the HHIP. This funding aims to improve planning, implementation, and collaboration with local housing and healthcare providers. The goal is to assist individuals currently experiencing homelessness in the City’s Shelter Plus Care Rental Assistance Program (SPC).
SPC follows the “Supportive Housing” model” which brings together housing and supportive services. The rental assistance is funded by the Department of Housing and Urban Development (HUD) CoC and provides rental subsidy for 45 units (total 59 chronically homeless households) in the City. SPC prioritizes placement for chronically homeless individuals when new vacancies occur or if there are turnover units. The project 29 of 40
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0 participants receive supportive services to promise self sufficiency and stabilize their housing tenure.
The City will enter into a sub-recipient Agreement with Ascencia to continue providing intensive case management services for participants in the SPC program, such as assistance with funding housing and building relationships with landlords, chronic disease management, and help with addressing mental health or substance abuse treatment. The program is experiencing an aging population which require ongoing case management and community support. With the use of these funds, Ascencia will be able to develop individual case plans to meet the needs of each client and determine housing stability.
The HHIP funds will also serve at match for the CoC Program funded by HUD.
Health Net will disburse the grant award in two installments. The first payment in the amount of $99,250.65 (75% of the award) was received by the City on May 3, 2023. The second payment in the amount of $33,083.55 (25% of the grant award) will be issued within sixty calendar days of receipt and approval of the City’s progress report which will be submitted by February 1, 2024.
L.A. Care will make the first disbursement of funds in the amount of $154,389.90 (50% of the award) within thirty days of full execution of the investment Agreement signed by both parties. The second payment in the amount of $154,389.90 (50% of the award) will be disbursed sixty day of L.A. Cares receipt and approval of the second progress report submitted to be submitted by the City on February 1, 2024.
ANALYSIS
HHIP Investment plan was presented by representatives from L.A. Care and Health Net to the CoC Board on September 14, 2022. The City is in the process of executing the HHIP contracts with the MCPs. Upon approval by City Council, the City will enter into a sub-recipient Agreement with Ascencia to provide services to 45 participants in the SPC rental assistance program from January 1, 2023, through December 31, 2024.
STAKEHOLDERS/OUTREACH
City staff and representatives from the MCPs provided a presentation to the CoC Board on September 13, 2022, and the presentation and the HHIP investment plan is posted on the Homeless Services homepage for public comment and feedback.
FISCAL IMPACT
The grant funds from Health Net, LLC and L.A. Care under the HHIP Program were not included as a part of the FY 2022-23 budget. Therefore, staff is requesting for an appropriation from grant revenue in the amount of $132,334.20 from Health Net, LLC under the HHIP Grant funds and $308,779.80 from L.A. Care. The appropriation request is outlined on the following page:
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0 Requesting Appropriation
Amount From (Account String) To (Account String) Funding Source $132,334.20 32610-2160-CSP-0020
CSP01000AG
41100-2160-CSP-0020
CSP01000AG
HHIP Grant Funds
Health Net
$308,779.80 32610-2160-CSP-0020
CSP00999AG
41300-2160-CSP-0020
CSP00999AG
HHIP Grant Funds
L.A. Care
State does not require matching funds under HHIP.
ENVIRONMENTAL REVIEW
N/A
CAMPAIGN DISCLOSURE
The names and business addresses of the members of the board of directors, the chairperson, CEO, COO, CFO, Subcontractors and any person or entity with more than 10% interest in the company proposed for contract in this Agenda Item Report are attached in Exhibit 2, in accordance with the City Campaign Finance Ordinance No. 5768.
ALTERNATIVES
Alternative 1: Approve acceptance of grant funds in the amount of $132,334.20 from Health Net, LLC “the Health Plan” in the amount of $308,779.80 funded by the DHCS Housing and Homelessness Incentive Program, and Resolution of Appropriation to appropriate grant funds totaling $441,114 from Health Net LLC and L.A. Care Health Plan
Alternative 2: Choose not to accept staff’s recommendation to adopt the above motions and Resolutions of Appropriation.
Alternative 3: The Council may consider any other alternative not proposed by staff.
ADMINISTRATIVE ACTION
Prepared by:
Arsine Isayan, Homeless Programs Manager
Reviewed by:
Jason Bradford, Director of Finance/Information Technology Michael J. Garcia, City Attorney
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0 Approved by:
Roubik R. Golanian, P.E., City Manager
EXHIBITS / ATTACHMENTS
Exhibit 1- Campaign Finance Disclosure
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M O T I O N
Moved by Council Member , seconded by Council Member , that the Council of the City of Glendale hereby:
1. Approves the acceptance of grant funds in the amount of $132,334.20 from Health Net, LLC (“the Health Plan”) pursuant to Code of Federal Regulations, Title 42, Section 438.6(b), and funded by the California Department of Health Care Services (DHCS) Housing and Homelessness Incentive Program as outlined in the Report to Council dated June 13, 2023; and
2. Authorizes the City Manager, or his designee, to execute all necessary agreements, certifications, and documents necessary to accept and implement the grant.
Vote as Follows:
Ayes:
Noes:
Absent:
Abstain:
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M O T I O N
Moved by Council Member , seconded by Council Member , that the Council of the City of Glendale hereby:
1. Approves the acceptance of grant funds in the amount of $308,779.80 from the Local Initiative Health Authority for Los Angeles County, operating and doing business as L.A. Care Health Plan (L.A. Care) for the Homelessness Incentive Program Investment as outlined in the Report to Council dated June 13, 2023; and
2. Authorizes the City Manager, or his designee, to execute all necessary agreements, certifications, and documents necessary to accept and implement the grant.
Vote as Follows:
Ayes:
Noes:
Absent:
Abstain:
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Ascencia Board of Directors 2022-23
L:\Administration\Corporate\Board\Membership\Rosters\2022-23
OFFICERS COMMITTEE CHAIRS
Bryan Longpre, President
Senior Vice President
Morgan Stanley
Grace Kang, Development Committee Chair
Site Sourcing Manager
META (Facebook)
Paulette Ramsay Wood, Vice President
Retired, Schindler Elevator Corporation
Legal Department, Contracts
Kristine Nam, Secretary
Communications Director
Glendale Unified School District
David Bolstad, Governance Committee Chair
Attorney, Partner & Head of Litigation
Safarian, Choi & Bolstad, LLP
John Sadd, Audit Committee Chair
Senior Partner, CPA, and CGMA
The Accountancy
Sue Son, Treasurer/Finance Committee Chair
Partner, CPA
Hutchinson and Bloodgood. LLP
_____________________________________
Arbella Azizian, Nominations Committee Chair
Attorney, Of Counsel Baker, Olson,
LeCroy & Danielian
__________________________________________
Kris Tate
Senior Minister
First United Methodist Church
Marvel Ford
Senior Vice President, Risk Management
California Credit Union
Kim Guard, Immediate Past President
President/Owner
Express Employment Professionals
Barbara Perrier
Vice Chairman, Industrial
(CBRE)
Terry Walker
Director Neurosciences & Community Engagement
Providence Saint Joseph Medical Center
Philip Ambrose
Battalion Chief
Glendale Fire Department
Bruce Gordon
Retired, The Walt Disney Company
Worldwide Senior Vice President and CFO
for Disney Interactive Media Group
Stuart Cano
President
Canocogroup – Financial Services
Stephen Rinka
Attorney
The Rinka Law Firm
George Assadourian
Bookkeeper/Payroll
The Counting House
Emeritus, Nicholas Lam
Vice President
Pacific BMW and Bidamar Corporation
Isabel Reyes
Chief Executive Officer
Revelation Insurance Services
Anthony Rubio
Construction Coordinator
Forest Lawn Memorial Park
Daniel Valdez
Housing Acquisitions Manager
Brilliant Corners
The last three Board meetings were held on May 10,
2022; June 28, 2022; and July 12, 2022.
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Ascencia Board of Directors 2022-23
L:\Administration\Corporate\Board\Membership\Rosters\2022-23
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