City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2022-01925 11/15/2022 Consent Item 25.
Homeless Housing, Assistance and Prevention Program Round 4 (HHAP-4) Funding Allocation Approval
File ID: 2022-01925
Location: Citywide
Recommendation: 1) Receive public comment; 2) adopt a Resolution: a) approving the City of Sacramento Homeless Housing, Assistance and Prevention Program Round 4 (HHAP-4) Funding Allocation Approval, b) authorizing the City Manager, or the City manager’s designee, to submit these documents to the State of California, c) authorizing the City Manager, or the City Manager’s designee, to sign all necessary grant agreements and related documents to receive the HHAP-4 funding and contract it out based on the allocation approval, d) authorizing the City Manager, or the City Manager’s designee, to establish the HHAP-4 Grant Fund Project (G02000980) (the “Project”); e) authorizing the City Manager, or the City Manager’s designee to accept the state allocation of up to $20,000,000 in grant funds, once determined, and to establish the revenue and expenditure budget in G02000980 (Operating Grant Fund, Fund 2702), and f) authorizing the City Manager, or the City Manager’s designee, to perform all other actions related to receiving and fully utilizing the HHAP-4 grant funds.
Contact: Danielle Foster, Housing Policy Manager, (916) 808-1869, [email protected], Office of Innovation & Economic Development;
Nicholas Golling, Homeless Services Program Manager, (916) 808-7816, [email protected], Department of Community Response Attachments:
1-Description/Analysis
2-Resolution
Description/Analysis
Issue Detail: The Homeless Housing, Assistance and Prevention Program Round 4 (HHAP-4) is a $1 billion block grant program authorized by budget appropriations for the current fiscal year 2022- 2023. Administered by the California Interagency Council on Homelessness (Cal ICH) this fourth
File ID: 2022-01925 11/15/2022 Consent Item 25.
round of funding has been made available to support building regional coordination and a unified response to reduce homelessness across California. As with the previous rounds of HHAP funding, eligible applicants include California’s 13 largest cities, 58 counties, and 44 Continuums of Care with allocations set by Cal ICH based on their proportionate share of the state’s homeless population as reported by the federal department of Housing and Urban Development (HUD) in the 2022 Point-In- Time (PIT) count. Like with HHAP-3, not all HHAP-4 funding is being allocated now; $180 million is bonus funding which will be available to grantees who meet funding obligations and achieve outcome goal requirements.
In early October 2022, the HHAP-4 application was made available online and the application is due November 29, 2022. State awards are anticipated to be made within 90 days of a completed application, with funding released upon completion of a standard contract with Cal ICH. The actual funding allocations under HHAP-4 will not be available until the federal department of Housing and Urban Development (HUD) certifies the 2022 PIT information for all of California. Therefore, the City is required to submit an application based on estimated percentages for the categorical use of funding.
HHAP-4 requires grantees to expend funds on evidence-based solutions that prevent, reduce and end homelessness. Grantees may not use HHAP grant funding to supplant existing local funds for homeless housing, assistance, or prevention, and funds must be expended in compliance with Housing First requirements per Health and Safety Code Section 50220.7(g). HHAP-4 funds must be expended on one or more of the following eligible uses:
1. Rapid rehousing, including rental subsidies and incentives to landlords, such as security deposits and holding fees.
2. Operating subsidies in new and existing affordable or supportive housing units, emergency shelters, and navigation centers. Operating subsidies may include operating reserves.
3. Street outreach to assist persons experiencing homelessness to access permanent housing and services.
4. Services coordination, which may include access to workforce, education, and training programs, or other services needed to promote housing stability in supportive housing.
5. Systems support for activities necessary to create regional partnerships and maintain a homeless services and housing delivery system, particularly for vulnerable populations, including families and homeless youth.
6. Delivery of permanent housing and innovative housing solutions, such as hotel and motel conversions.
7. Prevention and shelter diversion to permanent housing, including rental subsidies.
8. Interim sheltering, limited to newly developed clinically enhanced congregate shelters, new or
File ID: 2022-01925 11/15/2022 Consent Item 25.
existing non-congregate shelters, and operations of existing navigation centers and shelters based on demonstrated need. Any new interim sheltering funded by HHAP funds must be low barrier, comply with Housing First, and prioritize interventions other than congregate shelters.
9. Improvements to existing emergency shelters to lower barriers and increase privacy.
Local Homeless Action Plan
The Sacramento Local Homeless Action Plan (LHAP) was adopted in June 2022 to 1) meet the requirement of the HHAP-3 application, but more importantly 2) to create a cross-jurisdictional unified approach to addressing homelessness across Sacramento County. This three-year plan beginning on July 1, 2022 and going through June 30, 2025 was developed in partnership with Sacramento Steps Forward (SSF), Sacramento City and County Continuum of Care, Sacramento County, City of Sacramento and the Sacramento Housing and Redevelopment Agency (SHRA). The plan is continuing to guide use of the HHAP-4 funding and now incorporates the sixth strategy added by the City Council and adopted by the other plan partners.
The LHAP is actionable, relatable, and provides a roadmap for future funding. Outlined in the plan are key system components that are in alignment with national best-practices and if resourced and implemented consistently across funders and providers, will bring the local response system to scale with capacity to move the needle on homelessness. Through these efforts, homelessness in the county over time will become preventable whenever possible, brief, and non-recurring.
The plan is organized around six core strategies that facilitate a system-focused, equitable framework:
● Strategy #1: Build and scale a Countywide Coordinated Access System ● Strategy #2: Ensure current and new emergency shelter and interim housing is focused on rehousing
● Strategy #3: Increase permanent housing opportunities ● Strategy #4: Expand prevention and diversion resources ● Strategy #5: Invest in community capacity-building & training ● Strategy #6: Ensure adequate behavioral health services These strategies were designed to be scaled up (or back) over time within the confines of local resources including funding, workforce availability, and stakeholder agreement, as well as to meet local system needs as additional information is available and as the system components shift to right- size prevention and permanent housing. Working groups are currently meeting to identify supporting activities that will shape the implementation of these strategies by identified agency leads.
File ID: 2022-01925 11/15/2022 Consent Item 25.
HHAP-4 Funding Allocation Recommendation
While the HHAP-4 allocations have not yet been determined, staff anticipates a similar but likely higher allocation than the HHAP-3 funding for Sacramento. Collectively, the Sacramento region is receiving a total of approximately $32.76 million in HHAP-3, with allocations to the City of Sacramento, Sacramento County, and the Sacramento Continuum of Care (via SSF). Once the contract process is complete, the City of Sacramento is anticipated to receive $16,683,570 in HHAP- 3 funding. With the increase in homelessness in the 2022 Point in Time Count, it is estimated that the HHAP-4 allocation could increase to reflect this change.
Without the final allocation, staff is required to submit funding percentages to the state based on intended funding uses. Building upon the direction provided with HHAP-1, HHAP-2, and HHAP-3 funding allocations, recent City Council discussions, and the gaps analysis and Sacramento Local Homeless Action Plan, staff presents this HHAP-4 funding percentage allocation recommendations:
7%
10%
70%
13%
Shelter
Youth Shelter
Administration
HHAP-4 % Funding Recommendations
Permanent Supportive Housing
These recommendations are consistent with how the funding has been split (on-average) over the past three cycles, with permanent housing or prevention utilizing 12-13% on average. Since the HHAP-3 cycle funded prevention, staff is recommending the HHAP-4 cycle provide funding for permanent housing, likely a Homekey project. These percentages can be further refined after the actual allocations are released and the City has more information about the award amount and how it fits into local contract amounts for youth sheltering, and continued operations of North Fifth Street, X Street Navigation, Meadowview Navigation, Grove Bridge to Housing, and other local sheltering spaces.
Staff is working with the Continuum of Care and County to create more ambitious goals for reductions of homelessness and unsheltered homelessness with the HHAP-4 funding application based on recent direction from the Governor. Additional baseline data information and expectation guidance is required and anticipated from the State before these goals can be finalized.
Policy Considerations: The recommendations in this report further local coordination in response to homelessness, complete the necessary requirements for City application of HHAP-4 funding, and continue existing sheltering and navigation efforts, while beginning to move city contributions into the homeless response system towards an increased emphasis on prevention and permanent housing, consistent with the recommendations of the system Gaps Analysis, Cal ICH direction, and national best practices in reducing homelessness.
File ID: 2022-01925 11/15/2022 Consent Item 25.
Economic Impacts: Efforts to reduce and minimize the occurrence of homelessness in our community improves the economic outlook of all community members, including those who are able to avoid homelessness through prevention and diversion, those who are reintegrated into the workforce through local shelter and training options, individuals and families who gain permanent affordable housing and have greater expendable income to take care of their needs and support the local economy, and local businesses with access to a larger job pool and decreased impacts.
Environmental Considerations:
California Environmental Quality Act (CEQA): The current action is the establishment of a funding mechanism to finance various activities, including the environmental review necessary for the development of the ultimate housing project. The establishment of a funding mechanism is not a project pursuant to CEQA Guidelines section 15378(b)(4).
Sustainability: Not applicable.
Commission/Committee Action: Not applicable.
Rationale for Recommendation: The actions in this report are consistent with the City of Sacramento Comprehensive Siting Plan adopted by the City Council on August 10, 2021, the City of Sacramento Housing Element of the General Plan, specifically Policy H-7.2 that speaks to Regional Coordination in our response to homelessness, and the Local Homeless Action Plan adopted June 26, 2022.
Financial Considerations: On August 10, 2021, the City Council adopted the Comprehensive Siting Plan that included a list of sites, programs, and identified funding sources for the City’s response to homelessness. HHAP-4 funding is envisioned to be part of that funding stack. This report carries out the necessary steps to apply for and receive the HHAP-4 funds, establishing the HHAP-3 Multi-Year Operating Project (G02000980) along with the revenue and expenditure budgets (Operating Grant Fund, Fund 2702), once funds have been received, to continue existing sheltering efforts and additional supportive housing units.
Local Business Enterprise (LBE): These funding allocations will be used with all local organizations in the provision of shelter and will prioritize outreach to local organizations in relation to development or operations of permanent supportive housing.
Resolution No. 2022-
Adopted by the Sacramento City Council on November 15, 2022
2022 City Council Adoption of the Homeless Housing, Assistance and Prevention Program Round 4 (HHAP-4) Funding Allocation Approval
BACKGROUND:
A. Homelessness is an existential threat to the individuals living without quality housing and to the public health and safety of the residents and businesses in Sacramento. The right to an adequate standard of living for every resident of the City is one that must be protected and advanced by the actions and commitment of all levels of government, including the City of Sacramento. The interconnectedness of homelessness, housing and public health must inform the current and future policy, partnerships, prioritization of work programs, and budget allocations to prevent and reduce the number of people experiencing homelessness.
B. On January 5, 2021, the City Council unanimously approved the preparation of a Master Siting, Operations, Programmatic and Financing Plan (“Master Siting Plan”, later named the “Comprehensive Siting Plan”) and committed to a Council-led process to engage the community and identify public and private properties for a single up or down vote to approve the sites identified for shelter and housing, identify funding sources, and provide authority to the City Manager to implement the Comprehensive Siting Plan. This Plan was approved on August 10, 2021 and has been in implementation ever since.
C. According to the 2019 Point in Time Homeless County released by the Sacramento Steps Forward, Sacramento’s Continuum of Care, the County of Sacramento had a homeless population of 5,570 individuals, a majority of whom are unsheltered on any given night in the City of Sacramento. The 2019 Point-in-Time Count also estimates that in 2019 between 10,000 and 11,000 individuals would be unsheltered at some point in 2019. A disproportionate share of the homeless in the City of Sacramento are people of color. Recent numbers are indicating an increase in local homelessness as a result of the COVID-19 pandemic, inflation, and further housing market constraints, finding that approximately 16,500 to 20,000 experience homelessness over the course of a year in the County of Sacramento, with the majority occurring in the City of Sacramento.
D. Since 2019, housing affordability in the state has worsened with rising rents and limited new construction of affordable and permanent supportive housing. The
City Council declared a Shelter Crisis annually since January 14, 2020 under chapter 7.8 of division 1 of title 2 of the California Government Code and directed the City Manager to take action to streamline the provision of homeless shelters (Resolution 2020-0017).
E. Recent increases in households relocating from the Bay Area have placed further demand on the local housing market by households with higher incomes.
Regionally, over the last year, median household income increased by twelve percent, far outpacing the typical three percent average and it is estimated that these increases are primarily resulting from new residents, making the housing market more competitive than ever.
F. The City Council has also acknowledged that to reduce the number of first-time homelessness and persons who return to homelessness after experiencing homelessness, that homeless prevention, diversion, workforce training and job placement resources are necessary.
G. Since March 2020 when the COVID-19 pandemic was declared a public health emergency in California, the City Council has allocated significant one- time funding sources to provide shelter and emergency housing. The homelessness response included the first safe parking overnight spots for vehicles; triage capacity for overnight respite; Safe Ground organized camping on Caltrans and City property downtown and later at Miller Park; 500 motel rooms for City interim motel vouchering including outreach and supportive services for 100 chronically homeless individuals; housing voucher coordination and support services for 100 homeless individuals; 104 traditional shelter beds at North Fifth Street and an expansion to 163 beds; 50 beds at the Meadowview Navigation Center, a women’s shelter expanding to 100 beds as COVID-19 protocols allow; 100 beds at the X Street Navigation Center for men, women and pets; 309 HomeKey permanent supportive housing units and 11 interim supportive housing units; 24 cabins at Grove Avenue expanding to 48 beds for transitional aged youth; 20 beds at a 24/7 methamphetamine sobering center for three months; over 500 households rehoused from Project Roomkey; 75 shelter beds for transition-aged youth; and 40 units of scattered site housing have been purchased.
H. The Local Homeless Action Plan was adopted in June 2022 in an effort to provide a systematic and comprehensive approach to address the humanitarian crisis of homelessness and staff from the City, County, SHRA, and Sacramento Steps Forward have collaborated in the implementation of a Coordinated Access System, as funded by the City Council and partners, to implement and create centralized access to prevention/diversion programs, expand shelter and housing options and right-size services, as directed by the City Council, Board of Supervisors, and the Continuum of Care Board and Committees.
I. The HHAP-4 funding allocation is an opportunity to both continue existing sheltering programs and expand prevention programming and permanent supportive housing units, consistent with the local gaps analysis and state direction, to move towards adjusting our system focus onto prevention and permanent housing as a means for reducing experiences and duration of homelessness locally.
BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:
Section 1. The City Council approves the City of Sacramento Homeless Housing, Assistance and Prevention Program Round 4 (HHAP-4) Percentage Funding Allocation Approval, as follows:
Section 2. The City Council authorizes the City Manager, or the City manager’s designee, to submit all necessary documents to the State of California, for the HHAP-4 grant funding application.
Section 3. The City Council authorizes the City Manager, or the City Manager’s designee, to sign all necessary grant agreements and related documents to receive the HHAP-4 funding and enter into agreements based on the funding allocation approval and consistent with the authority provided under the City’s Comprehensive Siting Plan.
Section 4. The City Council authorizes the City Manager, or the City Manager’s designee, to establish the HHAP-4 Grant Fund Project (G02000980) (the “Project”).
Section 5. The City Council authorizes the City Manager, or the City Manager’s designee to accept up to $20,000,000 in grant funds, once the final allocation is established, and to establish the revenue and expenditure budget in G02000980 (Operating Grant Fund, Fund 2702), once received, and authorizes the City Manager, or the City Manager’s designee, to perform all other actions related to receiving and fully utilizing the HHAP-4 grant funds.
7%
10%
70%
13%
Shelter
Youth Shelter
Administration
HHAP-4 % Funding Recommendations
Permanent Supportive Housing