TITLE
Recommendation to authorize City Manager, or designee, to submit a grant application to the U.S. Department of Housing and Urban Development (HUD), for the Continuum of Care Supplemental to Address Unsheltered and Rural Homelessness program;
Authorize City Manager, or designee, to execute an agreement, and all necessary documents, subgrants, and any amendments including amendments to the amount of the award or to extend the grant term, with HUD to accept and expend grant funding in an amount up to $5,193,648 for a period of three (3) years estimated to begin in the Winter of 2022; and
Increase appropriations in the Health Fund Group in the Health and Human Services Department by $5,193,648, offset by grant revenues. (Citywide)
DISCUSSION
The U.S. Department of Housing and Urban Development (HUD) released the Continuum of Care (CoC) Supplemental to Address Unsheltered and Rural Homelessness Special Notice of Funding Opportunity (Special NOFO) on June 22, 2022, with approximately $322 million available nationwide to promote targeted efforts that will reduce unsheltered homelessness. The program has allocated $267.5 million for the Unsheltered Homelessness Set Aside and $54.5 million for the Rural Set Aside. The Long Beach CoC is eligible for a maximum Unsheltered Homelessness Set Aside amount of $5,193,648 and is not eligible for the Rural Set Aside.
This Special NOFO will exclusively fund all new projects, enhance data collection for identifying those most in need, and tailor solutions to the specific subpopulation of individuals experiencing unsheltered homelessness such as those living in encampments. If awarded, the Special NOFO would allow the Long Beach CoC to build upon existing and growing community engagement efforts, in partnership with people experiencing homelessness, to engage diverse stakeholders in informing how the Long Beach CoC will reduce unsheltered homelessness.
As part of the application process for the Special NOFO, the Long Beach CoC has begun to engage in a strategic community planning process with diverse stakeholders including people with lived experience, landlords, developers, local clinics, hospitals, managed care providers, service providers, the City of Long Beach’s (City) Housing Authority, and the general community to develop a comprehensive plan around making more equitable housing and services investments in the CoC with the goal of reducing unsheltered homelessness. HUD will award new projects under the Unsheltered Homelessness Set Aside funding based on each CoC’s overall score in the competition rather than on a unique score given to each project application. CoCs must receive at least 50 points to be considered for any funding.
Upon award notification from HUD, the Health and Human Services Department (Health Department) will monitor the performance of all program sub-recipients to ensure compliance with Federal and local grant requirements, and that performance standards and local objectives are met.
The Health Department anticipates receiving up to $5,193,648 from HUD. A City-match is required and estimated at approximately $432,804 for the life of the grant ($144,268 annually), based upon the anticipated award amount. The City will meet this match obligation through the operation of the Measure H program, which is a 10-year measure passed in Los Angeles County to prevent and combat homelessness by using tax funds for specific homeless services programs, including short-term housing and outreach efforts.
The deadline to submit the Special NOFO application is October 20, 2022.
Attachment A contains the eligible project types under the Special NOFO, and Attachment B contains a summary of HUD’s Policy Priorities for the program.
This matter was reviewed by Deputy City Attorney Anita Lakhani on August 25, 2022 and by Budget Analysis Officer Greg Sorensen on August 24, 2022.
EQUITY STATEMENT
The City has incorporated the Equity Toolkit into this recommendation as requested by the City Council on April 21, 2020. This recommendation will provide assistance to people experiencing homelessness in the City by providing services and resources to reduce and end homelessness in Long Beach, if the Special NOFO grant funding is awarded to the City.
TIMING CONSIDERATIONS
City Council action is requested on September 13, 2022, to allow the Health Department to begin the process of responding to the Special NOFO.
FISCAL IMPACT
The Health Department anticipates receiving up to $5,193,648 from HUD for the CoC Special NOFO, for a period of three (3) years. An appropriation increase is requested in the amount of $5,193,648 in the Health Fund Group in the Health and Human Services Department, offset by grant revenues. Funding will support programs with clear pathways to connect people to resources, including permanent housing options. A City-match of approximately $432,804 will be required, which the City will meet through the operation of the Measure H Program. Measure H Program operations are budgeted in the Health Fund Group in the Health and Human Services Department. Any indirect costs that might not ultimately be eligible for grant funds will be funded by the Health Operating Fund, General Fund, or other eligible grant funds. Currently, eight (8) City employees facilitate the operations of the Measure H Program. Sub-recipient contracts with nonprofit agencies could support jobs in Long Beach. This recommendation has no staffing impact beyond the normal budgeted scope of duties and is consistent with existing City Council priorities.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
KELLY COLOPY
DIRECTOR
HEALTH AND HUMAN SERVICES
APPROVED:
THOMAS B. MODICA
CITY MANAGER