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Staff Report - Cal ICH ERF Acceptance

Salinas City Council
April 12, 2022

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Staff Report - Cal ICH ERF Acceptance
Meeting
April 12, 2022
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Salinas City Council
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Text extracted from the city's file for reading and search. Open the original on legistar2.granicus.com. That file is the official record.

DATE: APRIL 12, 2022
DEPARTMENT: COMMUNITY DEVELOPMENT DEPARTMENT
FROM: MEGAN HUNTER, DIRECTOR
BY: ROD POWELL, PLANNING MANAGER
TITLE: CALIFORNIA INTERAGENCY COUNCIL ON HOMELESSNESS ENCAMPMENT RESOLUTION FUND PROGRAM GRANT AWARD ACCEPTANCE RECOMMENDED MOTION:

Motion to approve a Resolution authorizing:
authorizing the City Manager or designee to accept a grant award in the amount of $4,079,416.72 and execute all required Agreements and related documents necessary to implement the program; the use of City HUD ESG-CV, HCD ESG-CV, HUD ESG, CESH, ARPA/Project Roomkey, HOME ARP, and PLHA combined fund in the amount of $2,543,904; and, the establishment of Cal ICH ERF appropriations of $4,079,416.72 and corresponding revenue budget to implement a multi-agency demonstration project focused on creating effective pathways to permanent housing for residents of targeted encampments and to allow for the restoration of the encampment area to its original condition and/or intended use.

RECOMMENDATION:

It is recommended that the City Council approve a Resolution authorizing the City Manager or designee to 1) accept a grant award in the amount $4,079,416.72 million dollars from the California Interagency Council on Homelessness Encampment Resolution Fund Program; 2) use of HUD ESG-CV, HCD ESG-CV, HUD ESG, CESH, ARPA/Project Roomkey, HOME ARP, and PLHA in the amount of $2,543,904; and 3) the establishment of Cal ICH ERF appropriations of $4,079,416.72 and corresponding revenue budget to implement a multi-agency demonstration project focused on creating effective pathways to permanent housing for residents of targeted encampments and to allow for the restoration of the encampment area to its original condition and/or intended use.

BACKGROUND:

Homelessness is a serious ongoing problem in the City and throughout Monterey County. The most recent 2019 Homeless Point in Time Count, identified 1,182 persons as unhoused in the City of Salinas. In late 2020, to assist unhoused individuals access available services and housing options and mitigate the negative impacts of Covid-19 on this vulnerable population, the CDD established the City of Salinas Outreach and Response Team (SORT). CDD and SORT continue to seek and obtain innovative and collaborative opportunities and funding to effectively address homelessness within the City’s jurisdiction, including ongoing partnerships with other local homeless services providers and agencies.

In 2017, the State created the Homeless Coordinating and Financing Council (HCFC) to oversee the coordinated implementation of Housing First policies, best practice guidelines, and regulations to reduce the prevalence and duration of homelessness in California. In early 2022, the State reorganized HCFC to become what is now known as the California Interagency Council on Homelessness under the expressed mission to develop policies, identify resources, benefits, and services to prevent and work toward ending homelessness in California. In addition to interagency coordination and policy development, Cal ICH is mandated to coordinate funding while also promoting systems integration to increase efficiency and effectiveness of the homeless response system and the state and local level.

DISCUSSION:

Under the authority of Chapter 7 of Part 1 of Division 31 of the California Health and Safety Code, the Encampment Resolution Fund (ERF) Program was established to increase collaboration between Cal ICH, local jurisdictions, and Continuums of Care to assist local jurisdictions in ensuring the wellness and safety of people experiencing homelessness in encampments; provide encampment resolution grants to local jurisdictions and continuums of care to support innovative and replicable efforts to resolve critical encampment concerns and to support individuals access to safe and stable housing using Housing First approaches; and encourage data-informed, coordinated approaches to address unsheltered homelessness at encampments by establishing effective, scalable, and replicable demonstration projects.

ERF grants awarded through the RFA will support Cal ICH mandates by funding local demonstration projects that incorporate Housing First approaches to provide services to address the immediate crisis of experiencing unsheltered homelessness in encampments, to support people living in encampments onto paths to safe and stable housing and result in sustainable restoration of public spaces to their intended uses while safeguarding the needs of unhoused people seeking shelter.

On October 29, 2021, Cal ICH released the Encampment Resolution Fund (ERF) Program Request for Applications (RFA) for Encampment Resolution Funding seeking proposals from Continuums of Care (CoC) and local jurisdictions to fund demonstration projects that provide services to address the immediate crisis of experiencing unsheltered homelessness in encampments, to support people living in encampments onto paths to safe and stable housing and result in sustainable restoration of public spaces to their intended uses while safeguarding the needs of unhoused people seeking shelter. Total funding available for award through the competitive RFA was $47.5 million.

To formulate a competitive proposal, CDD - Housing & Community Development Division staff successfully engaged and collaborated with several agencies and community partners on a comprehensive service strategy, inclusive of $2.9 million in leveraged funds, that would focus on encampments in and adjacent to the Natividad, Alisal and Gabilan Creeks. Service partners include the Coalition of Homeless Services Providers (CHSP), Catholic Charities of the Diocese of the Monterey Peninsula (CCDMP), the Central Coast Center for Independent Living (CCCIL), the University Corporation of Monterey Bay’s Community Health Engagement Team (CHE) and Return to the Natives, Monterey County Water Resources Agency, and the City’s Public Works Department. Housing Division staff formulated and submitted a comprehensive, competitive proposal on December 30, 2021, and, in accordance with the planned RFA timeline, the City received formal notice from Cal ICH on February 25, 2022, advising the full award of funding requested in its application.

DEPARMENT COORDINATION:

The Cal ICH ERF Program will be administered by the City’s CDD – Housing & Community Development Division. Sub-recipient agreements will be executed with each of the collaboration partner agencies. CDD will coordinate with the City’s Finance and Legal Departments to ensure regulatory compliance and the efficient, full disbursement of funds.

CEQA CONSIDERATION:

The City of Salinas has determined that the proposed action – “authorizing the City Manager to accept a grant in the amount of nearly $4.1 million dollars for The California Interagency Council on Homelessness (Cal ICH) Encampment Resolution Fund (ERF) Grant Program” is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378). A portion of the grant will be used to remove debris and restore natural areas along Natividad, Gabilan, and Alisal Creeks, which may be subject to CEQA, but would be statutorily exempt under Section 15304 - Minor Alterations to Land.

STRATEGIC PLAN INITIATIVE:

The Cal ICH ERF Program is intended to assist unhoused City residents within the identified encampments move towards immediate and permanent housing options and allow for much needed restoration of vulnerable environments and public spaces. Acceptance of the awarded funding and implementation of the proposed program addresses each of the Goals and Strategies identified in the Council’s 2022-23 Strategic Plan including: Economic Development; Housing/Affordable Housing; Infrastructure and Environmental Sustainability; Public Safety; Youth and Seniors; and Effective and Culturally Responsive Government.

FISCAL AND SUSTAINABILITY IMPACT:

Funding received through Cal ICH ERF Program will be leveraged with additional funds from each of the grant’s collaborative partners to support two full years of grant administration and planned outreach, housing, and wraparound services as well as the physical restoration of impacted environmental areas and public spaces.

The CDD – Housing & Community Development Division will leverage the following fund sources in the amount of $2,543,904 as follows:

HUD ESG-Covid $413,360.00
HCD ESG-Covid $118,500.00
HUD ESG $50,000.00
CESH $479,179.00
ARPA/PRK Motel Program $633,375.00
Homekey HOME ARP/PLHA $799,200.00
The City’s Public Works Department will leverage $40,000 in Measure G funds from CIP 50-9068. External grant partners will leverage an additional $334,409 in funding.

Grant funds received shall be appropriated to the City and its program partners as follows:

City of Salinas CDD SORT $1,791,381.00
Coalition of Homeless Services Providers $114,399.26
Catholic Charities of the Diocese of Monterey $238,102.46 City of Salinas Public Works $1,385,670.00
Monterey County Water Resources Agency $491,335.00
Return to the Natives – CSUMB $58,529.00
ATTACHMENTS:

Resolution
Cal ICH Notice of Intent to Fund
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Page | 1

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