DATE: December 17, 2024
TO: City Council
FROM: Assistant City Manager
SUBJECT: Let’s House Hayward Strategic Plan: Implementation Update and Discussion of Next Steps
RECOMMENDATION
That the Council receives an update on the implementation of the Let’s House Hayward Strategic Plan to reduce homelessness and provides guidance to staff on approaching the City’s response to homelessness when the five-year plan concludes in Fiscal Year 2026.
SUMMARY
On January 28, 2020, Council approved the first iteration of the City’s Strategic Roadmap, which included the priority area to Protect, Preserve, and Produce Housing. That priority area included the project to create and implement a homelessness reduction strategic plan. Developing a strategic plan to address homelessness enables the City to proactively position and prioritize the City’s work toward helping to resolve this regional issue and prepare for accessing additional resources as they become available.
On September 22, 2020, Council authorized an agreement with Homebase to prepare the five-year Let’s House Hayward! (LHH) Strategic Plan. To develop the LHH Plan, Homebase conducted extensive best practice research and collected a wide range of data and input from City stakeholders, including Council., Council adopted the five-year LHH plan on July 13, 2021, along with the City’s American Rescue Plan Act (ARPA) expenditure plan, which included several projects identified in the LHH plan. Staff provided multiple updates on implementation of the plan, inviting LHH steering committee members and interested parties. One of these updates was provided directly to Council on June 28, 2022, and another was provided to the Homelessness-Housing Task Force on December 7, 2023., The LHH plan spans from fiscal year 2021-2022 through 2025-2026, so there are approximately one and a half years remaining in its implementation. This work session item provides an updated summary of LHH implementation progress. It includes implementation accomplishments and highlights, as well as discussion of activities that are not on track based on the timeline established in the LHH plan. Staff request that Council review this update and provide guidance to staff on approaching the City’s response to homelessness when the five-year plan concludes in Fiscal Year 2026.
BACKGROUND
The homelessness crisis is a difficult and persistent regional issue. The comprehensive efforts needed to dramatically reduce homelessness in Hayward, the Bay Area, and the state require ongoing investment and collaboration to make homelessness a rare, brief, and one-time experience. The City of Hayward has long identified homelessness and housing affordability as key issues in the community and has supported local, regional, and state efforts to address these issues. The City’s Strategic Roadmap (Roadmap) includes the priority area to Preserve, Protect, and Produce Housing for All and the first iteration of the Roadmap included a project to create a City of Hayward plan to end homelessness.
Developed through extensive community and stakeholder engagement, the LHH Strategic Plan outlines both the current needs in the community in relation to homelessness and supportive services as well as goals and strategies to effectively address these needs. The plan uses a racial equity lens, aligns with existing regional plans, centers individuals with lived experience, leverages Hayward’s strengths and previous efforts, addresses the City’s unique needs, and establishes a pipeline of community-driven projects and programs.
Every two years, Alameda County leads the Point-in-Time (PIT) Count, a county-wide effort required by the Department of Housing and Urban Development (HUD) to conduct a visual count of individuals experiencing homelessness at a specific point in time. When the LHH plan was developed in 2020, the City had recently seen a 23% increase in homelessness from 2017 to 2019 according to PIT data. Of those experiencing homelessness, a disproportionate number were African American and people of color. Subsequent 2022 PIT data showed a 22% reduction in the number of people experiencing homelessness, though there was a 22% increase County-wide and people of color were still experiencing homelessness at a disproportionately high rate. The County coordinated the most recent PIT Count in January 2024 and Hayward saw a 34% increase in homelessness from 2022 to 2024. The significant increase is primarily attributable to a 105% increase in sheltered homelessness, compared to only a 4% increase in unsheltered homelessness. Sheltered homelessness refers to people living in emergency shelter or transitional housing, while unsheltered homelessness refers to people living in places not meant for human habitation. The large increase in sheltered homelessness coupled with a small increase in unsheltered homelessness reflect efforts by City and its partners to bring people indoors into temporary or emergency solutions while continuing to focus on connecting them to permanent housing.
Council prioritized the LHH plan in 2020 in recognition of the need to proactively position and prioritize the City’s work toward helping to resolve this regional issue and prepare for accessing additional resources as they become available. The LHH plan was adopted July 13, 2021, in conjunction with the City’s expenditure plan for ARPA funding. Priority projects from the LHH plan were included in the federal funding expenditure plan. The LHH plan is included as Attachment II.
DISCUSSION
The LHH plan contains three over-arching goals:
Formalize a coordinated and compassionate citywide response to homelessness and develop wider community understanding and engagement Increase availability of and reduce barriers to homeless crisis response services Ensure access to and retention of affordable permanent housing Attachment III provides an activity-specific implementation status update on each LHH activity associated with these goals. Several projects in the plan have been integrated as part of the City’s regular operations, such as implementation of the Residential Rent Stabilization and Tenant Protection Ordinance (LHH activity 3.1a), operation of the Hayward Navigation Center (2.1a; see Attachment IV for more information), and internal and external coordination across agencies and departments to respond to encampments and unsheltered homelessness (1.1a and 1.1c).
Notably, several projects that Council funded through the City’s ARPA allocation have concluded or are approaching their conclusion and do not have subsequent funding identified to maintain them. These include:
Continue implementation of the Housing Navigation Center Hotel Annex (2.1b & 2.1c): The Annex operated for two years, serving primarily individuals who were homeless and medically fragile. It served 143 individuals and placed 73% of them into permanent housing.
Expand Winter Warming Shelter to day center with year round operations (2.1e & 2.4a): The South Hayward Parish emergency shelter received three years of funding to expand operations year-round with day center resources. As of the current fiscal year, there is no ongoing funding source to maintain these expanded hours.
One-time increase to Community Agency Funding process to support non-profit partners who provide homelessness prevention and supportive services (2.4b): The Community Services Commission allocated an additional $500,000 to services agencies as part of the Community Agency Funding process in Fiscal Year 2023; however, there has been no subsequent increase to the General Fund allocation for service providers working to prevent and respond to homelessness.
Develop and implement a shallow rental subsidy program to prevent homelessness (3.1d): The shallow rental subsidy program is fully enrolled with 75 households receiving monthly rental subsidy for an 18-month period while working with case managers to identify affordable housing and other resources to reduce cost-burden. There are no funds identified to continue this program.
The following Discussion section highlights the alignment between the Fiscal Year 2024-2025+ Strategic Roadmap and the LHH plan, then reviews key implementation accomplishments and challenges, with specific discussion of any projects that are not on track according to the timeline established in the LHH plan.
Table 1 below lists activities that are in both the LHH plan and the FY 2024-2025+ Strategic Roadmap.
Table 1. Strategic Roadmap and LHH Plan Activity Alignment Strategic Roadmap Project
LHH Plan Activity
H2
Continue to oversee operations of the Navigation Center
2.1a
Continue oversight and management of the Navigation Center H3
Piloting a flexible funding pool for preventing homelessness, including a shallow subsidy program
3.1d
Identify funds for and develop a shallow subsidy program/ongoing rental assistance for extremely low-income and high-rent- burden households H4
Continue to explore safe parking options along with encampment management
2.2b
Develop funding for and facilitate the development of a safe parking site with progressive engagement services, including for those living in RVs H9
Continue work on updating the Affordable Housing Ordinance
3.2f
Evaluate the Affordable Housing Ordinance’s effectiveness in providing affordable housing opportunities to prevent displacement of Hayward residents and create housing opportunities for individuals experiencing homelessness in connection with analysis related to the private sector's ability to produce such units.
H10
Amend the Municipal Code to address Housing Element Actions related to housing for a variety of income levels and housing types
3.2b
As part of the Housing Element development, identify zoning barriers to implementing innovative shelter and housing models, such as tiny homes, safe parking, safe camping, and multi-unit development in City planning codes and ordinances.
H14
Evaluate available funding to issue a Notice of Funding Availability (NOFA)
3.2g
Continue prioritizing inclusion of permanent supportive units for extremely low-income households in the City’s Notice of Funding Availability and City-subsidized affordable housing development.
Additionally, some Strategic Roadmap projects were added after the development of the LHH plan, so they are not reflected as specific activities in the LHH plan. However, these projects do align with LHH strategies. Table 3 below lists projects from the Strategic Roadmap that align with broader strategies in the LHH Plan.
Table 2. Strategic Roadmap and LHH Plan Strategy Alignment Strategic Roadmap Project
LHH Plan Strategy
H1
Support development of St. Regis Behavioral Health Campus to provide health and housing services to people experiencing homelessness and mental health crises
2.1 Expand housing-focused shelter capacity
3.2 Prioritize the development of housing targeted to people experiencing homelessness H5
Leverage partnerships to support acquisition and rehabilitation projects through State Homekey funding
1.2 Develop funding and evaluation strategy reflecting community priorities identified in this strategic plan
3.2 Prioritize the development of housing targeted to people experiencing homelessness Table 3 below highlights several exciting accomplishments achieved through implementation of the LHH plan.
Table 3. LHH Plan Implementation Accomplishments
LHH Activity
Accomplishment
1.1a
Continued cross-departmental and cross-jurisdictional collaboration efforts within the City and between the City and regional partners including the Hayward Area Recreation District (HARD), Hayward Unified School District, BART, Union Pacific, Caltrans Bay Area, neighboring cities, and Alameda County.
1.1c
2.1b
Concluded implementation of the expanded Housing Navigation Center Annex, which served 143 individuals over two years and placed 73% of all individuals exiting the program into permanent housing.
2.1c
2.3c
Continued staff participation in regional efforts, including Alameda County Mayors’ Homelessness Working Group, Continuum of Care Outreach and Accessibility Committee, and gaining access to the Homeless Management Information System (HMIS).
2.4c
Continued operation of the Hayward Evaluation And Response Teams (HEART) program, which emerged from the Policy Innovations Workshops as a continuum of care that connects the right team or resource to the right call for service for individuals experiencing mental health or medical issues, including those who are homeless (see Attachment V for more information).
2.4d
Economic Development Division launched the Hire Hayward program to connect local businesses with talented job seekers, fostering employment opportunities and strengthening the community’s workforce, and the Tuition Assistance Grant Program to provide Hayward residents with funding to upskill for high-demand careers. These programs do not target individuals who are homeless but play a key role in the City’s homelessness prevention efforts by linking training, education, and employment.
3.1d
Continued implementation and data collection for the Shallow Rental Subsidy Program, which has enrolled 75 households since beginning operations in Fall 2022.
3.1f
Completed comprehensive language access study to improve City-wide communications and to build the City’s language access infrastructure to advance equity and access for culturally and linguistically diverse communities through community and staff engagement.
3.2b
Council adopted the Hayward 2023-2031 Housing Element, which included actions related to expanding housing options for unhoused and other vulnerable populations and held a work session on proposed zoning changes related to this effort.
3.2c
State Homekey award to provide approximately 35 units of permanent housing for individuals experiencing homelessness through scattered site supportive housing; staff support and coordination with Bay Area Community Services for development of St. Regis project, which includes approximately 70 units of permanent supportive housing.
3.2d
3.2f
Council adopted revisions to the Affordable Housing Ordinance, adjusting inclusionary requirements and fees to promote affordable housing development in Hayward.
Table 4 below summarizes activities that have been adjusted or are behind schedule for implementation, along with notes regarding their status. Three projects have not been moved forward due to funding and capacity constraints. Additionally, at Council direction, staff have prioritized projects that are in the Strategic Roadmap.
Table 4. LHH Plan Implementation Key Status Updates
LHH Activity
Status
1.1b
Provide quarterly updates on Let’s House Hayward! Strategic Plan progress, including updates from City coordination groups and solicit ongoing feedback and collaboration with non-profit homeless service providers and people with lived experience, including peer-to-peer networking opportunities.
Not on track: Quarterly updates were tied to Local Advisory Committee meetings for Prop 47 grant and have not been scheduled since LAC meetings concluded. Moving forward, an annual report will be provided to the HHTF.
1.1d
Formalize partnership between the City Manager’s Office and Hayward Unified School District to strengthen resources for unhoused school-aged children and their families.
Not on track: Staff work with HUSD, CSUEB, and Chabot partners on an ad hoc basis; however, no partnership has been formalized through MOU. Staff recommend continuing ad hoc work to provide greater flexibility to partnership.
1.1e
Formalize partnership between the City Manager’s Office and local community colleges including California State University (CSU) East Bay and Chabot College to address youth homelessness.
1.3a
Develop a public education campaign to educate the Hayward community about ongoing homelessness efforts and how the homeless system of care operates.
On hold: This project requires additional funding and staff capacity. Strategic Roadmap projects have been prioritized instead. This activity will be revisited at next Strategic Roadmap update.
2.1e
Expand existing winter shelter so it can operate all year round.* On track: While these projects are currently on track, they were funded through ARPA through the conclusion of FY24. In FY25, staff identified some one-time grant funds for support but they may not be available for subsequent years.
2.4a
Develop funding for and explore feasibility of a supporting resource center to expand drop-in/day use.*
2.2a
Develop funding for and explore feasibility of a sanctioned camp site with progressive engagement services and community education campaign.
On hold: This project requires additional funding and staff capacity. Strategic Roadmap projects have been prioritized instead. This activity will be revisited at next Strategic Roadmap update.
2.2b
Develop funding for and facilitate the development of a safe parking site with progressive engagement services, including for those living in RVs.
On hold: An initial capacity assessment was conducted in 2021 and this project is in the 2024-2025+ Strategic Roadmap to be revisited in FY 2025.
2.3a
Provide trauma-informed training for City staff and contracted service providers with contact with residents experiencing homelessness.
On hold: This project requires additional funding and staff capacity. Strategic Roadmap projects have been prioritized instead. This activity will be revisited at next Strategic Roadmap update.
3.1e
Develop and implement a program to assist land trusts or non-profit orgs acquire tax defaulted properties.* On hold: The ARPA funding for this project was reallocated in 2024 to the General Fund.
3.2e
Leverage the City’s relationships with landlords and providers to support identification and reduction of barriers to participation in Rapid Rehousing programs.
Not on track: This project requires additional funding and staff capacity. Strategic Roadmap projects have been prioritized instead. This activity will be revisited at next Strategic Roadmap update.
3.2g
Continue prioritizing inclusion of permanent supportive units for extremely low-income households in the City’s Notice of Funding Availability (NOFA) and City-subsidized affordable housing development On hold: Insufficient funds has prevented the issuance of a NOFA. The City plans to issue a NOFA and establish an affordable housing development pipeline as funds become available. This initiative will prioritize permanent supportive units for extremely low-income households in Hayward and support projects addressing funding gaps to enhance competitiveness for funding opportunities.
Economic Impact
There is a positive economic impact from reducing homelessness and improving efforts to prevent homelessness.
Fiscal impact
Council authorized over $9 million in ARPA funding to address homelessness in Hayward. As described in this report, the majority of those funds have been fully expended. While this stimulus provided much-needed support to local non-profit organizations and City programs that prevent and respond to issues related to homelessness, a sustainable reduction in homelessness in Hayward requires ongoing funding sources.
In 2021, when the LHH plan was adopted by Council, staff introduced several potential funding sources, which included the following:
Parcel Group 7 sales tax revenue, previously considered for other services Parcel Group 6 sale proceeds, would require Council action under one-time funds policy General Fund (from reserves, from increased revenue over projections, or any one-time revenue sources) Measure C revenue, assuming funds are available
Lobbying for local or state tax measure for homeless services, would require a 50%+1 affirmative vote Measure W (Alameda County) once current litigation resolved Allocation of funds resulting from Policy Innovation Workshops Among the listed funding sources, proceeds from the sale of Parcel 238 could serve as a potential revenue option. However, utilizing these funds would require Council approval and would be considered a one-time funding source. Additionally, their use may necessitate an exception to the one-time revenue use policy.
Additionally, Council could consider authorizing the use of General Fund reserves, excess revenue from over-projections, one-time revenue sources, or available Measure C or Measure K1 funds. In doing so, Council would need to consider the City’s financial policies, including the one-time revenue policy, which prioritizes directing one-time revenues toward reserves when the reserve balance is below 20%. Council could choose to make exceptions based on pressing priorities while balancing immediate funding needs with the long-term goal of strengthening reserves.
The Mayor has signed letters of support endorsing state and federal legislation that would increase funding for housing and homelessness prevention and response and City staff are participating in Bay Area Housing Finance Authority work sessions to inform future bond measures. Measure W continues to be unavailable due to ongoing litigation. Finally, funds were allocated to the HEART program, as a result of the Policy Innovation Workshop efforts; however, those funds are based on salary savings from staff vacancies and are not considered a permanent source of funding.
Strategic Roadmap
This agenda item supports the FY 2024-2025+ and FY 2021-2023 Roadmap strategic priority of Preserve, Protect & Produce Housing. Specifically, this item relates to the implementation of the following FY 2021-2023 roadmap projects:
2a. Create a Homelessness Reduction Strategic Plan modeled on an empowerment approach and best practices, as well as after Alameda County’s EveryOne Home Plan 2b. Implement the Homelessness Reduction Strategic Plan Public Contact
Homebase, City staff, and partners throughout the Hayward community worked together to engage a diverse set of stakeholders throughout the development of the LHH plan. Staff reports to Council and the HHTF during that process outline these community engagement activities. , Next Steps
Staff will continue to monitor implementation of the LHH plan and corresponding Strategic Roadmap projects through the implementation period of the LHH plan.
Prepared by: Amy Cole-Bloom, Community Services Manager Recommended by: Regina Youngblood, Assistant City Manager Approved by:
_____________________________
Dustin Claussen, Interim City Manager
January 28, 2020, City Council Meeting Agenda and Materials: https://hayward.legistar.com/LegislationDetail.aspx?ID=4315589&GUID=1F328D58-C3FC-41E5-8BF7-A17E4E09DDCB&Options=&Search= September 22, 2020, City Council Meeting Agenda and Materials: https://hayward.legistar.com/LegislationDetail.aspx?ID=4646746&GUID=5852A012-464E-410B-85F2-2C8F1CDB0400&Options=&Search= April 20, 2021, City Council Meeting Agenda and Materials: https://hayward.legistar.com/LegislationDetail.aspx?ID=4916429&GUID=67261A4F-2AD6-499F-98DF-E3EFEC367E21&Options=&Search= June 3, 2021, Homelessness-Housing Task Force Meeting Staff Report and Attachments: https://hayward.legistar.com/LegislationDetail.aspx?ID=4969216&GUID=B883E7B0-B8DF-4846-958A-7626624934F4&Options=&Search= July 13, 2021, City Council Meeting Agenda and Materials: https://hayward.legistar.com/MeetingDetail.aspx?ID=873400&GUID=3A966F19-3378-4C59-8EB8-EAF54D8C8478&Options=info|&Search=let%27s+house+hayward June 28, 2022, City Council Meeting Agenda and Materials: https://hayward.legistar.com/LegislationDetail.aspx?ID=5709698&GUID=55CE1563-86DB-4F2F-8D3E-F5ADBBB68E84&Options=&Search= December 7, 2023, Homelessness-Housing Taskforce Agenda and Materials: https://hayward.legistar.com/MeetingDetail.aspx?ID=1143002&GUID=F2DCC649-9C03-482D-999C-3B2391F2F697&Options=info|&Search= June 6, 2023, City Council Meeting Agenda and Materials: https://hayward.legistar.com/LegislationDetail.aspx?ID=6247773&GUID=A6285074-C926-4906-A54B-2BC0A8BA6466&Options=&Search= After this report was completed, the County released jurisdiction-specific data infographics. Hayward’s infographic is included as Attachment VI.
October 15, 2024 Council Work Session Agenda and Materials: https://hayward.legistar.com/LegislationDetail.aspx?ID=6892956&GUID=4DDBC601-F514-4271-9A83-2FA274C848DC&Options=&Search= March 28, 2023, Council Public Hearing Agenda and Materials: https://hayward.legistar.com/LegislationDetail.aspx?ID=6105686&GUID=95CC2ADE-D81C-422B-AFBB-DE2A13B21CF0 June 3, 2021, Homelessness-Housing Task Force Meeting Staff Report and Attachments: https://hayward.legistar.com/LegislationDetail.aspx?ID=4969216&GUID=B883E7B0-B8DF-4846-958A-7626624934F4&Options=&Search= July 13, 2021, City Council Meeting Agenda and Materials: https://hayward.legistar.com/MeetingDetail.aspx?ID=873400&GUID=3A966F19-3378-4C59-8EB8-EAF54D8C8478&Options=info|&Search=let%27s+house+hayward