TO: HONORABLE MAYOR
AND CITY COUNCIL
FROM: Erik L. Soliván
Jim Shannon
SUBJECT: See Below DATE: November 19, 2024
Approved
Date:
11/21/24
COUNCIL DISTRICT: Citywide
SUBJECT: Actions Related to the Encampment Resolution Funding Round Three Grant from the State of California Department of Housing and Community Development and Related Grant Agreements
RECOMMENDATION
(a) Adopt a resolution authorizing the City Manager, or her designee, to accept the Encampment Resolution Funding Round Three grant award of $4,821,082.88 from the State of California Department of Housing and Community Development to fund unsheltered homelessness outreach and housing options and to negotiate and execute related documents to accept grant funds without requiring further City Council action.
(b) Adopt a resolution authorizing the Housing Director, or his designee, to:
(1) Negotiate and execute an amendment to the current grant agreement with HomeFirst Services of Santa Clara County to replace Measure E or Homeless Housing, Assistance, and Prevention Program - Round 4 funds with Encampment Resolution Funding Round Three funds, in an amount not to exceed $1,193,510 to provide targeted outreach and engagement services for unsheltered homelessness retroactive from October 4, 2024 to June 30, 2025.
(c) Adopt the following Fiscal Year 2024-2025 Appropriation Ordinance and Funding Sources Resolution amendments in the Multi-Source Housing Fund:
(1) Establish an estimate for Revenue from the State of California in the amount of $2,410,542; and
(2) Establish the Encampment Resolution Funding Grant Round 3 appropriation to the Housing Department in the amount of $2,410,542.
COUNCIL AGENDA: 12/3/24
FILE: 24-2272
ITEM: 2.14
HONORABLE MAYOR AND CITY COUNCIL
November 19, 2024
Subject: Accept the Encampment Resolution Funding Round Three Grant from the State of California and Authorize Related Grant Agreements
SUMMARY AND OUTCOME
Approval of the staff recommendation will allow the Housing Department to serve up to 150 individuals residing at the Cherry Avenue encampment and any additional encampments targeted by the Encampment Resolution Fund Round Three (ERF-3-R) Program. The goal of the ERF-3-R Program is to transition every individual within the target area into permanent housing destinations through a means of targeted engagement; housing problem-solving, and short-term rental assistance interventions; set-aside units at the Via del Oro Emergency Interim Housing site; and coordination with the County of Santa Clara’s Office of Supportive Housing (OSH) for placement into permanent supportive housing options. Additionally, staff adjusted the planning for the build-out of the Cherry Avenue Emergency Interim Housing site to make complimentary clearings of encampments surrounding the Via del Oro Emergency Interim Housing site.
Furthermore, a significant factor in the selection of the Via del Oro Emergency Interim Housing site for the ERF-3-R Program grant application was the timing of the ERF-3-R Program grant application, which was before any plans for the Cherry Avenue Emergency Interim Housing site were completed or confirmed by City staff.
BACKGROUND
On November 27, 2023, the California Interagency Council on Homelessness announced a Notice of Funding Availability for the ERF-3-R Program, 1 which seeks to
fund actionable, person-centered local proposals that resolve the experience of unsheltered homelessness for individuals residing in encampments. The Housing Department, in coordination with multiple stakeholders, including the California Department of Transportation and Santa Clara Valley Water District, developed a comprehensive encampment resolution plan for the ERF-3-R Program grant application.
The City submitted the resulting ERF-3-R Program proposal to the California Interagency Council on Homelessness on April 30, 2024.
On October 4, 2024, the Housing Department received confirmation from the California Department of Housing and Community Development of its intent to award the City’s proposed ERF-3-R Program. The Housing Department anticipates receiving the ERF-3- R Program award, upon submitting a standard agreement to the California Department of Housing and Community Development, in the amount of $4,821,082.88 to retroactively fund the City’s proposed collaborative ERF-3-R Program from October 2024 through June 2027, which is discussed in further detail throughout this memorandum.
1 ERF-3-R Program Notice of Funding Availability, California Department of Housing and Community Development, Web link: https://bcsh.ca.gov/calich/documents/erf_3r_nofa.pdf
HONORABLE MAYOR AND CITY COUNCIL
November 19, 2024
Subject: Accept the Encampment Resolution Funding Round Three Grant from the State of California and Authorize Related Grant Agreements
ANALYSIS
This section outlines the Cherry Avenue Encampment Resolution (CAER) Program framework for engaging and redirecting unsheltered individuals into alternative housing solutions and needed services. This work segues into the broader City strategy, which, after clearing the encampment area, holds the land to prevent re-encampment and restores the area to its intended public use.
CAER Program
The CAER Program mobilizes collaborative partners and a multidisciplinary team of community organizations experienced in providing unsheltered homelessness outreach, housing problem-solving, housing placement, person-centered service delivery, and trauma-informed care services. HomeFirst Services of Santa Clara County teams from the Housing Department’s Targeted Outreach and Engagement Program will provide case management with the goal of transitioning every program participant into interim shelter placement and then permanent housing. Program participants, once placed in an emergency interim housing (EIH) program site, will continue to receive intensive case management services, along with a full suite of supportive services, to support individuals on a pathway to permanent housing options. A formal coordination effort with the County of Santa Clara’s OSH will take place to identify potential permanent supportive housing (PSH) opportunities for program participants originating from the targeted encampment. The CAER Program model seeks to map an array of interventions for a variety of acuity levels to respond to the needs of individuals in the targeted encampment. Furthermore, at the discretion of the Housing Department, additional encampments may be targeted as part of the ERF-3-R Program.
In alignment with current Housing Department practice, an encampment count will be conducted 90 days in advance of abatement work, with a second count to conclude 30 days in advance of abatement work. Upon initiation of the CAER Program, future encampments will be prohibited. The CAER Program is designed to engage, shelter, clear, preserve, and restore the project area through shelter management system provisions and coordinated service delivery. The Housing Department, in close coordination with key stakeholders, including the California Department of Transportation and Santa Clara Valley Water District, will ensure that encamped individuals in the project area are proactively engaged before impact reduction work begins.
CAER Program Implementation
The CAER Program will synchronize the Housing Department’s Targeted Outreach and Engagement program, EIH program, and the County of Santa Clara’s PSH program in order to deliver a diverse range of resources and housing pathways for up to 150 encampment individuals. Through June 2027, the CAER Program will swiftly move
HONORABLE MAYOR AND CITY COUNCIL
November 19, 2024
Subject: Accept the Encampment Resolution Funding Round Three Grant from the State of California and Authorize Related Grant Agreements
individuals from the project area into interim shelter and then permanent housing options while creating the space for our partnered jurisdictional entities, including the California Department of Transportation and Santa Clara Valley Water District, to hold and restore the land to its intended public use through outreach and impact reduction coordination. Table 1 provides a summary of the CAER Program’s key services and funding awards.
Table 1: Summary of CAER Program Services and Funding Awards Service ERF-3-R Program
Award Amount Funding Source
Unsheltered homelessness outreach, street-
based case management, and basic needs
services to individuals in the project area.
$1,193,510.00 ERF-3-R and
Leveraged
Intensive case management and
wraparound supportive services at EIH
site(s) to prepare transitions to permanent
housing options.
$3,397,997.50 ERF-3-R and
Leveraged
Systems support by the County of Santa
Clara’s OSH. Leveraged Leveraged
Program management, reporting, and
administrative costs by the Housing
Department.
$229,575.38 ERF-3-R
Hold land and restore to intended public use
by jurisdictional entities, including by the
California Department of Transportation and
Santa Clara Valley Water District.
Leveraged Leveraged
Total $4,821,082.88
Outreach Services for Unsheltered Homelessness
The Housing Department’s Targeted Outreach and Engagement Program provides enhanced services and coordinated resources to individuals and households experiencing homelessness in target areas across the City. Through the Targeted Outreach and Engagement Program, HomeFirst Services of Santa Clara County staff will:
• Utilize engagement tools to establish trust and build ongoing rapport with unsheltered homeless individuals residing in the project area;
HONORABLE MAYOR AND CITY COUNCIL
November 19, 2024
Subject: Accept the Encampment Resolution Funding Round Three Grant from the State of California and Authorize Related Grant Agreements
• Provide intensive case management and establish unique, program participant- centered pathways to interim shelter and housing options; • Work with the County of Santa Clara’s OSH and the County of Santa Clara’s Continuum of Care to get program participants document-ready for interim shelter and housing options and program eligibility;
• Identify low-acuity level individuals in the project area and offer housing problem- solving to facilitate exits to permanent housing options directly from the project area; and,
• Tactics include mediation with potential landlords, family/friend reunification, and facilitating shared housing and rental options.
The Housing Department’s EIH Program
The City’s development of a shelter management system through the Housing Department’s EIH program is a primary component of the CAER Program. Units at existing and in production EIH sites will be prioritized to meet any further needs of CAER Program participants. Once enrolled at an EIH site, CAER Program participants will be assigned to a case manager, offered wraparound supportive services, and provided the tools to attain self-sufficiency. Housing problem-solving and short-term rental assistance will function as additional interventions to increase the number and timeframe in which program participants exit the EIH program into more permanent housing options.
The County of Santa Clara’s OSH PSH Program
For individuals served through the CAER Program, including those transitioning from the EIH program, the County of Santa Clara’s OSH PSH program will permanently house program participants who are eligible and in the appropriate acuity level range.
The PSH program is equipped with housing and wellness support and services, including transportation, childcare, and skills training to complement and leverage the County of Santa Clara’s OSH case management services provided through the PSH program. The Housing Department and the County of Santa Clara’s OSH will closely coordinate along with HomeFirst Services of Santa Clara County to transfer individuals from encampments to interim shelter and then permanent housing placement options.
The County of Santa Clara’s OSH staff will follow through with the necessary paperwork, appointments, and documentation to qualify program participants for placement into the PSH program.
ERF-3-R Program Management and Reporting
The ERF-3-R Program state grant allows 5% of the grant amount to go toward administrative costs incurred by the Housing Department. These grant funds will support direct program coordination, implementation, and dedicated support by staff from the Housing Department’s Homeless Response Division and Grants Management
HONORABLE MAYOR AND CITY COUNCIL
November 19, 2024
Subject: Accept the Encampment Resolution Funding Round Three Grant from the State of California and Authorize Related Grant Agreements
team. Specifically, the administrative functions covered by the grant funding will include a portion of two staff members to manage the ERF-3-R Program and convene, lead, and coordinate stakeholders and partner agencies. Housing Department staff will provide on-site facilitation during all phases of the ERF-3-R Program and will submit quarterly programmatic reports to the California Department of Housing and Community Development.
The CAER Program model design is informed by the success of proven unsheltered homelessness outreach and interim housing models, as well as person-centered interventions, such as housing problem-solving, intensive case management, housing planning, and short-term rental assistance services. Using this model, the CAER Program’s goals are centered around the successful engagement and sheltering and housing placements of individuals from the Cherry Avenue encampment. Table 2 below defines the goals corresponding to the three key service components of the CAER Program: 1) unsheltered homelessness outreach, 2) EIH, and 3) PSH.
Table 2: CAER Program Goals
Mode of
Service System Goal CAER Program
Projected Outcomes
Unsheltered
Homelessness
Outreach
Engagement, count, and placement.
Within three months of the start
of the CAER Program, transition
10 individuals into permanent
housing options directly from the
project area. Place 75
individuals into set-aside and
prioritized EIH units.
EIH
Support and increase the capacity
of EIH to shelter individuals safely
and quickly in the project area.
50% of program participants
placed into the EIH program will
exit to permanent housing
destinations within one year of
move-in and 75% within one and
a half years.
PSH
Create a streamlined process, in
coordination with the County of
Santa Clara’s OSH, to identify
eligible program participants
identified from the County of Santa
Clara’s Coordinated Entry System’s
Community Queue for immediate
placement into PSH options.
Match 60 eligible individuals to
the PSH program through
coordinated entry and exit of at
least 30 program participants
into PSH options by June 2027.
HONORABLE MAYOR AND CITY COUNCIL
November 19, 2024
Subject: Accept the Encampment Resolution Funding Round Three Grant from the State of California and Authorize Related Grant Agreements
EVALUATION AND FOLLOW-UP
The Housing Department’s Grant Management team monitors and reviews grant agreement outcomes and performance metrics on a quarterly basis. Therefore, the program included in this memorandum will be monitored and reviewed following the Housing Department’s Grant Management team’s grant agreement monitoring and review protocols. Further, updates on homelessness program outcomes are provided in the City’s Consolidated Homelessness Annual Report, scheduled to be heard annually in the fall by the Neighborhood Services and Education Committee.
Additionally, as discussed below, $2.4 million for ERF-3 is recommended for allocation in FY 2024-2025. The Administration will come forward as part of a future budget action to recognize and appropriate the remaining $2.4 million.
COST SUMMARY/IMPLICATIONS
Staff anticipates funding of approximately $4.8 million from the ERF-3 grant will be spent over three fiscal years with the full amount expended by June 2027. During this grant period, the City may request spending plan amendments to allocate funds toward homeless services and housing options not included in the original grant application.
These amendments will require State approval. If the State denies any proposed amendments, the City will retain the ability to use the grant funds as specified in the original grant application.
The grant’s statutory expenditure deadline for 50% of the funds is June 30, 2025.
Therefore, $2,410,542 from the ERF-3 grant will be allocated and spent in the current fiscal year, with $1.2 million designated to pay the contract with HomeFirst Services of Santa Clara County to provide targeted outreach and engagement services for unsheltered homelessness retroactive from October 4, 2024 to June 30, 2025, and the remaining $1.2 million to primarily support EIH operations. The remaining funds will be recognized in a future budget action.
TOTAL COST OF GRANT AGREEMENT
CARE Programmatic Spending $4,591,508
City of San José Administrative Expenses $229,575
TOTAL GRANT AGREEMENT AMOUNT $4,821,083
HONORABLE MAYOR AND CITY COUNCIL
November 19, 2024
Subject: Accept the Encampment Resolution Funding Round Three Grant from the State of California and Authorize Related Grant Agreements
BUDGET REFERENCE
Fund
No.
Appn.
No.
Appropriation
Name
Total
Appropriation
Rec. Budget
Action
2024-2025
Adopted
Operating
Page
Last
Budget
Action
(Date,
Ord. No.)
448 R100
Revenue from
State of
California
$0 $2,410,542 995 N/A
448 New
Encampment
Resolution
Funding Grant
Round 3
$0 $2,410,542 995 N/A
COORDINATION
This memorandum has been coordinated with the City Attorney’s Office.
PUBLIC OUTREACH
This memorandum will be posted on the City’s Council Agenda website for the December 3, 2024 City Council meeting.
COMMISSION RECOMMENDATION AND INPUT
No commission recommendation or input is associated with this action.
CEQA
Determination of Consistency with the Mitigated Negative Declaration for Emergency Interim Housing Programs (File No. ER22-198; Resolution No. RES2023-380), File No.
ER24-015.
PUBLIC SUBSIDY REPORTING
This item does not include a public subsidy as defined in section 53083 or 53083.1 of the California Government Code or the City’s Open Government Resolution.
HONORABLE MAYOR AND CITY COUNCIL
November 19, 2024
Subject: Accept the Encampment Resolution Funding Round Three Grant from the State of California and Authorize Related Grant Agreements
/s/
Erik L. Soliván Jim Shannon
Housing Director Budget Director
I hereby certify that there will be available for appropriation in the Multi-Source Housing Fund in the Fiscal Year 2024-2025 moneys in excess of those heretofore appropriated wherefrom, said excess being at least $2,410,542.
Jim Shannon
Budget Director
The principal author of this memorandum is Ryan Sanders, Senior Development Officer, Housing Department. For questions, please contact Cupid Alexander, Deputy Director, Housing Department at [email protected].