CITY OF POMONA
COUNCIL REPORT
April 18, 2022
To: Honorable Mayor and Members of the City Council
From: James Makshanoff, City Manager
Submitted By: Benita DeFrank, Neighborhood Services Director SUBJECT: Authorizing THE SUBMITTAL OF A JOINT APPLICATION TO THE STATE OF CALIFORNIA FOR THE PARTICIPATION IN THE HOMEKEY PROGRAM RECOMMENDATION:
It is recommended that the City Council take the following actions:
Adopt the following resolution:
RESOLUTION NO. 2022-73 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POMONA, CALIFORNIA, Authorizing THE SUBMITTAL OF A JOINT APPLICATION TO THE STATE OF CALIFORNIA FOR THE PARTICIPATION IN THE HOMEKEY PROGRAM. (ATTACHMENT NO. 1) Authorize the City Manager to execute contract award, amendment, and other documentation.
EXECUTIVE SUMMARY:
The approval of this action would allow the City to submit a joint application with WeVolunteerHere.com, a non-profit service provider, to the State of California Department of Housing and Community Development (HCD) to participate in the Homekey program. If approved, the Pomona Inn Homekey program would provide long-term housing opportunities to Pomona families experiencing homelessness who are currently sheltered temporarily in local motels. The existing grant funding used for the temporary motel voucher program will end on September 30, 2022. As a result, many of these families will require an extended time to overcome legal and financial barriers to housing.
FISCAL IMPACT:
There will be no fiscal impact with this action as it is an application submission. Any award of funding would be brought to City Council for consideration.
DISCUSSION:
State Homekey Program
On September 9, 2021, the California Department of Housing and Community Development (HCD) announced the availability of approximately $1.45 billion of Homekey Program (Homekey) grant funding under the Round 2 Notice of Funding Availability (NOFA). Building on the success of both Project Roomkey and the first round of Homekey, this significant investment continues a statewide effort to sustain and rapidly expand housing opportunities for persons experiencing homelessness or at risk of homelessness, and who are inherently impacted by or at an increased risk for medical diseases or conditions due to the COVID-19 pandemic.
Of the $1.45 billion in Homekey funding, $1.2 billion is derived from the Coronavirus State Fiscal Recovery Fund (CSFRF) established by the federal American Rescue Plan Act of 2021 (ARPA) (Public Law 117-2) and $250 million is State General Fund. The $250 million in State General Fund is intended to supplement the acquisition of, and to provide initial operating subsidies for, Homekey sites in order to promote project feasibility. Projects receiving an award from the state's direct allocation of the federal ARPA, must expend the funds within eight months of the date of award. If awarded, the portion of a project's award associated with State General Fund must be expended by June 30, 2026.
Proposed Pomona Homekey Program
The Pomona Inn is a 38-room motel located at 929 West Holt Avenue, Pomona, California, and was founded in 1978. In July 2021, the motel owner, Mr. Patel contacted City staff to express interest in participating in the next round of the Homekey program that was released on September 9, 2021. In response to the Homekey Round 2 NOFA, Mr. Patel, in collaboration with the non-profit service provider, WeVolunteerHere.com, submitted a Homekey pre-application to HCD. Since January 2022, City staff has collaborated with Mr. Patel, WeVolunteerHere.com, and Volunteers of America Los Angeles (VOALA) to discuss plans for submitting an application for the Pomona Inn Homekey project.
WeVolunteerHere.com was founded in 2014 with the purpose of supporting individuals and families with physical and mental health barriers. This organization believes in implementing programs that strengthen communities through extensive community engagement and collaborative partnerships. The Pomona Inn Homekey program will provide onsite monitoring, case management, housing navigation, and employment services to diverse families in Pomona. WeVolunteerHere.com is committed to working closely with local community partners such as VOALA, East Valley Community Health Center (EVCHC) and Tri-City Mental Health Services (Tri-City) to provide supportive services to the residents in the Pomona Inn Homekey project.
The Pomona Inn motel rooms average approximately 350 square feet per room. If awarded, HCD funds would be utilized to purchase the Pomona Inn from the current owner and perform minor rehabilitation work, such as installing a kitchenette in each room. The Pomona Inn Homekey program would be designated as an Interim Housing to Permanent Housing family site.
WeVolunteerHere.com is committed to working closely with local community partners such as VOALA, East Valley Community Health Center and Tri-City to provide supportive services to the residents at the Pomona Inn Homekey program.
The Homekey Application
As a local City jurisdiction, the City of Pomona is an eligible applicant for the Homekey program as specified in the current program guidelines. Wevolunteerhere.com is allowed to apply to the Homekey program only as a Co-Applicant to the City. The City of Pomona will work closely with the Co-Applicant to design program goals, guidelines, and desired outcomes that align with the City's Homeless Strategic Plan.
If the application is approved, the State’s Homekey program will fund "doors" based upon the target population, the number of units, and unit size at the time of acquisition. The anticipated award amount for this program would be 38 units at $150,000 per door totaling $5.7 million. However, HCD has recommended that the City within its application, specify an authorized dollar amount of $11 million, or a little under twice the per unit cost. This doubles the request and the possible award amount if the City of Pomona is ultimately awarded. The $11,000,000 application amount, per HCD, is reflected in the attached resolution.
City staff and WeVolunteerHere.com plan to submit the completed Homekey application to HCD no later than May 2, 2022.
COUNCIL PRIORITIES & GOALS: This item supports City Council Goal K: - to reduce the unsheltered homeless population by 10% annually and take actions to mitigate the impacts of homelessness on the community.
Prepared by:
_________________________________
Donyielle Holley
Homeless Programs Supervisor
ATTACHMENT:
Attachment No. 1 – Resolution No. 2022-73
Authorize Joint Application to and Participation in the Homekey Program