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Agenda Report
TO:
FROM:
SUBJECT:
October 21,2024
Honorable Mayor and City Council
Department of Housing
AUTHORIZE THE CITY MANAGER TO SUBMIT THE 2024
CONTINUUM OF CARE CONSOLIDATED APPLICATION TO THE U. S.
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FOR
$6,322,833 OF HOMELESS SERVICES FUNDING
RECOMMENDATION:
It is recommended that the City Council:
1. Find that the recommended action is exempt from the California Environmental Quality Act ("CEQA") pursuant to State CEQA Guidelines per Section 15061 (b) (3), the "common sense" provision that CEQA only applies to projects that may have an effect on the environment;
2. Authorize the filing of the 2024 Continuum of Care (CoC) Consolidated Application with the U.S. Department of Housing and Urban Development (HUD) for a funding request in the amount of $6,322,833 for seventeen projects;
3. Authorize the City Manager to execute, and the City Clerk to attest, the 2024 CoC Consolidated Application and all other related HDD documents, grant agreements and amendments;
4. Authorize the City Manager to enter into contracts with the administering agency of two new projects, if selected for funding as detailed in page 2 of Attachment A, with grant terms beginning in the 2025 calendar year and in amounts equal to what is awarded by HDD; and
5. Authorize the City Manager to execute amendments to the contracts specified under Recommendation 4 for five consecutive years with additional funding annually, in amounts equal to what is awarded by HUD, as set forth in the agenda report.
BACKGROUND:
On July 31, 2024, the U.S. Department of Urban Development (HDD) released a Notice of Funding Opportunity (NOFO) for the FY 2024 and FY 2025 Continuum of Care (CoC) MEETING OF.10/21/2024AGENDA ITEM NO. _8-.____
Submission of the 2024 CoC Consolidated Application
October 21,2024
Program Competition. The NOFO makes available funding to address homelessness for CoC renewal projects and new projects created through reallocation or competitive bonus funding. The deadline for the City to submit an application in response to the NOFO is October 30, 2024. In accordance with HUD's NOFO, the CoC is required to design, operate, and follow a collaborative process for the development of an application as well as host a local competition for both renewal and new projects.
HDD Continuum of Care Application
Federal CoC Program funding is awarded to local CoCs on an annual competitive basis rather than on an entitlement, formula basis (e.g., Community Development Block Grant and HOME program funds). The City's Department of Housing is the Collaborative ApplicanVLead Agency for the Pasadena CoC (also known as the Pasadena Partnership to End Homelessness) and, as such, administers funding for projects that prevent and end homelessness in addition to submitting a comprehensive funding application to HUD annually. The Pasadena CoC is governed by a Board of Directors, which serves as the primary decision-making body for the CoC. The Board, comprised of seven representatives from the community and one non-voting City staff, approves policies and procedures, sets funding priorities and performance standards, and recommends project applications for inclusion in the Consolidated Application to HUD.
The City currently allocates CoC Program funding to permanent housing projects, including permanent supportive housing and rapid rehousing, the HUD-required Homeless Management Information System (HMIS) and Coordinated Entry System (CES), and planning activities. CoCs are advised to regularly review their inventory of projects and, if appropriate to the community's needs, reallocate funding from underperforming projects to support the creation of new projects. The Pasadena CoC's Consolidated Application to HUD will consist of information about the CoC planning body, governance structure, overall performance, and the strategic planning process.
CoCs that score higher in this section of the national competition are more likely to be selected for available bonus funding for new projects. The CoC application will also include renewal and new project applications as well as a priority listing, which ranks all projects being submitted. The CoC's 2024 Consolidated Application will include a funding request in the total amount of $6,322,833 for thirteen renewal projects and four new projects as discussed below and summarized in Attachment "A." Funding announcements are expected to be released by HDD in spring 2025.
Renewal Project Funding
The CoC Program Competition allows jurisdictions to submit renewal applications for currently funded projects that are high performing with expiration dates in the 2025 calendar year. All agencies administering renewal projects were notified of their ability to apply for renewal funding and completed an application which was used to evaluate the program. Renewal project applications were reviewed and scored by an evaluation committee comprised of two CoC Board members and one person with lived expertise Submission of the 2024 CoC Consolidated Application
October 21,2024
of homelessness on September 17, 2024. The evaluation committee's scores were brought to the CoC Board for approval on September 25, 2024.The CoC Board makes the final determination on which renewal projects should be included in the Consolidated Application to HDD for continued funding.
The Pasadena CoC has thirteen projects eligible for renewal funding in the total amount of $5,071,161 as summarized in pages 1-2 of Attachment "A". If the renewal projects are awarded funding by HUD, the City will execute amendments to existing sub- recipient agreements (originally approved by City Council on November 1, 2021, September 19, 2022, and September 18, 2023) to increase the total not-to-exceed contract value by the total amount awarded by hlUD for performance period 2025-2026.
The final grant award for some projects may be different than what was originally requested in the Consolidated Application because HUD is required to adjust awards based on changes to the Fair Markets Rents (FMR) after the competition closes. The City will not know the final funding amounts until the awards are issued by HDD.
The City is the administering agency for two of the thirteen projects for which renewal applications will be submitted. All grants have a 25% match requirement. For the City- sponsored rental assistance grant, in-kind match is provided through a third party and documented in a formal Memorandum of Understanding (MOD). For the City-sponsored Homeless Management Information System (HMIS) project, the required match amount is $56,345. As in previous years, the City will satisfy match requirements using General Funds currently appropriated in the Department of Housing Operating Budget.
New Project Funding
The CoC Consolidated Application will include four new projects in the total amount of $1,251,672 summarized in page 2 of Attachment "A." The first new project will be a City application in the amount of $253,558 for costs associated with CoC planning and coordination. Although the City has administered the planning project annually since 2012, HUD requires the grant application be submitted as a new project each year.
HUD will also require a 25% match in the amount of $63,390 for this project. As proposed, the match would consist of General Funds, which is currently appropriated in the Department of Housing Operating Budget.
The three proposed new projects will be funded from the CoC Bonus ($608,538) and Domestic Violence (DV) Bonus ($389,576) funding made available by HUD. HUD determines which new projects, if any, are awarded funding using the CoC Consolidated Application score, the quality of the project application, and threshold requirements.
On September 2, 2024, the City released a Request for Applications (RFA) to agencies to apply for CoC Bonus and/or Domestic Violence (DV) Bonus funding. In total, three applications were received, including two from Door of Hope. The City also submitted an application for CoC Bonus funding to expand an existing CoC-funded rental Submission of the 2024 CoC Consolidated Application
October 21,2024
assistance project. If awarded, the project will leverage intensive case management services funded by the Los Angeles County Department of Health Services as match.
All new project applications were reviewed and scored by an evaluation panel on October 3, 2024. The evaluation panel was comprised of two City staff, one CoC Board member, and one person with lived expertise of homelessness. City staff recused themselves from evaluating the project application submitted by the City. The evaluation committee's scores were brought to the CoC Board for final action and approval on October 11, 2024, and all applicants were notified in writing on October 14, 2024,of their project's acceptance or rejection to comply with HUD's local competition guidelines. If either of Door of Hope's new projects are selected by HDD to receive funding, staff recommend authorizing the City Manager to enter into contracts with the Door of hlope as detailed in page 2 of Attachment A, with one-year grant terms beginning in the 2025 calendar year and in amounts equal to what is awarded by HDD.
COUNCIL POLICY CONSIDERATION:
Approval of the subject recommendations will provide permanent housing and supportive services to individuals, families and youth who have experienced homelessness in Pasadena. This action is consistent with the City Council's goal to support and promote the quality of life and local economy. The proposed projects are in accordance with the Pasadena Continuum of Care system, General Plan Housing Element, Five-Year Consolidated Plan, and Five-Year Public Housing Authority Plan.
ENVIRONMENTAL ANALYSIS:
The actions proposed herein are exempt from the California Environmental Quality Act (CEQA), pursuant to State CEQA Guidelines Section 15061 (b)(3), the "common sense" provision of CEQA which applies to projects which may have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. The submittal of the 2024 Continuum of Care Consolidated Application to HDD for homeless services grant funding will not have a significant effect on the environment and, hence, is not subject to CEQA.
Submission of the 2024 CoC Consolidated Application
October 21, 2024
FISCAL IMPACT:
Approval of the recommended action will have no fiscal impact as the award of CoC grant funds is anticipated, and as such the funds are included in the Department's adopted FY 2025 Operating Budget. HDD will require a 25% match of local funds totaling $119,735, consisting of $56,345 fora City-sponsored renewal project and $63,390 for a City-sponsored new project. As proposed, the match requirements for both projects will be satisfied with City General Funds which are currently appropriated in the Department's FY 2025 Operating Budget.
Respectfully submitted,
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WILLIAM K. HUANG [/
Director of Housing
Prepared by:
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Jennifer O'Reilly-Johes
Program Coordinator III
Approved by:
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Attachment A: 2024 CoC Consolidated Application - Renewal and New Projects