Agenda Item   

AGENDA STAFF REPORT

 

                                                                                                                        ASR Control  21-001147

 

MEETING DATE:

01/25/22

legal entity taking action:

Board of Supervisors

board of supervisors district(s):

4

SUBMITTING Agency/Department:

Health Care Agency   (Approved)

Department contact person(s):

Doug Becht (714) 834-5000 

 

 

Clayton Chau (714) 834-2830

 

 

Subject:  Operational Funding Commitment for Homekey Program Application

 

     ceo CONCUR

County Counsel Review

Clerk of the Board

Concur

No Legal Objection

Discussion

 

 

3 Votes Board Majority

 

 

 

    Budgeted: N/A

Current Year Cost: See Financial Impact Section

Annual Cost: See Financial Impact Section

 

 

 

    Staffing Impact:

No

# of Positions:

Sole Source: N/A

    Current Fiscal Year Revenue: N/A

  Funding Source: State: 100% (Homeless Housing, Assistance and Prevention – HHAP)

County Audit in last 3 years: No

 

 

    Prior Board Action: N/A

 

RECOMMENDED ACTION(S):

 

Authorize the commitment of up to $3,929,648 of Homeless Housing, Assistance and Prevention Program funding to the City of Anaheim to provide operating subsidies for interim housing use of the Studio 6 Motel located at 1251 N. Harbor Blvd, Anaheim, CA 92801, and authorize HCA Director, or designee, to submit all necessary supporting document for the Homekey Program application.

 

 

 

SUMMARY:

 

Approval of the commitment of up to $3,929,648 of Homeless Housing, Assistance and Prevention Program funding will allow the County of Orange to provide operational funding to support the City of Anaheim’s application for the Homekey Program project at Studio 6 Motel for immediate use as interim housing and subsequent development of permanent supportive housing for people experiencing homelessness or at-risk of homelessness.  

 

 

 

BACKGROUND INFORMATION:

 

Building on the success of the first round of Homekey Program funds, the Homekey Program Round 2 (Homekey) is a grant funding program administered by the California Department of Housing and Community Development. Approximately $1.45 billion in grant funding has been made available statewide as part of the Round 2 Notice of Funding Available (NOFA) to continue the State’s efforts to rapidly expand housing for persons experiencing homelessness or at risk of homelessness and who are inherently impacted by or at increased risk due to the COVID-19 pandemic. The Round 2 application opened on September 30, 2021, with a four-month priority application period for geographic region set-asides closing on January 31, 2022. Applications are being awarded on a first come first serve basis. Any unused funds from the regions will become available to projects statewide from February 1, 2022, through May 2, 2022, until funds are fully awarded.

 

In response to the Homekey Round 2 NOFA, an inter-agency team of the County of Orange (County) consisting of OC Health Care Agency (HCA), County Executive Office Real Estate and OC Community Resources staff have been working with interested cities in identifying prospective Homekey sites and reviewing for feasibility and eligibility. Through this process, the City of Anaheim approached the County and established an advising partnership through the Homekey Round 2 NOFA Application for the Studio 6 Motel, as well as requesting the County to provide operational funding for the interim housing operations of the site for up to five years.

 

The proposed Homekey Round 2 application is for the Studio 6 Motel located at 1251 N. Harbor Blvd., Anaheim, CA 92801. This project involves the rehabilitation and adaptive re-use of a 117-room motel by the Co-Applicants and Developers: City of Anaheim, American Family Housing  and LINC Housing. The property will operate as interim housing serving individuals experiencing homelessness or at risk of homelessness with 83 units associated with the Homekey Program for a period of up to five years. The project will ultimately be converted into 89 units of permanent affordable housing for extremely low-income persons experiencing chronic homelessness, homelessness or at risk of homelessness. At the completion of renovations, these 89 units will consist of 29 permanent supportive housing units and 60 units of permanent affordable housing. Additionally, the site will have two units for managers, communal space and areas for case management and supportive services for program participants.

 

The Studio 6 Motel will operate as interim housing until such time it converts to permanent supportive housing. The total interim housing operating costs for the Studio 6 Motel site for five-years is $7,929,648. The City of Anaheim has committed $4,000,000 towards operating subsidies for interim housing. Staff are asking for authorization to commit the balance of $3,929,648 in Homeless Housing, Assistance and Prevention Program funding to the City of Anaheim for interim housing operations use at the Studio 6 Motel. This will support the City of Anaheim in submitting a competitive and viable Homekey Round 2 application and support the development of additional non-congregate interim housing options for individuals experiencing homelessness in the North Service Planning Area. There has been a coordinated effort by the City of Anaheim and the County in addressing the needs of persons experiencing homelessness and affordable housing.

 

The City of Anaheim will be working with the Co-Applicants and Developers to submit all necessary supporting documents for the Homekey Program Round 2 application. Staff are also requesting authorization to submit all necessary supporting documentation from the County to the City of Anaheim, including a letter of commitment for the Homekey application for interim operating funding in an amount up to $3,929,648. 

 

The HCA Office of Care Coordination in collaboration with the County's Continuum of Care Board is recommending use of Homeless Housing Assistance and Prevention Program funding to commit to the project and will bring a Master Agreement in a separate subsequent Agenda Staff Report regarding operating subsidies and payments for services delivered to participants, if and once Homekey Round 2 funds are awarded.

 

 

 

FINANCIAL IMPACT:

 

The appropriations of this commitment will be included in the Budget Request FY 2022-23 and in budgeting process for the future years.

 

 

 

STAFFING IMPACT:

 

N/A