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Agenda Item
ASR
Control 22-000689 |
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MEETING DATE: |
09/13/22 |
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legal entity taking action: |
Board of Supervisors |
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board of supervisors
district(s): |
All Districts |
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SUBMITTING
Agency/Department: |
OC Community Resources (Approved) |
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Department contact
person(s): |
Dylan Wright (714) 480-2788 |
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Dr. Clayton Chau (714) 834-2830 |
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Subject: Amend Memorandum of
Understanding for Mental Health Services Act Funds Transfer
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ceo CONCUR |
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Clerk of the Board |
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Concur |
Approved Agreement to Form |
Discussion |
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4/5 Vote |
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Budgeted: Yes |
Current Year Cost:
$30,000,000 |
Annual Cost:
N/A |
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Staffing Impact: |
No |
# of Positions:
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Sole Source:
N/A |
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Current Fiscal Year Revenue: N/A
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Prior Board Action: 6/28/2022
#37, 5/19/2020 #54, 12/17/2019 #20 |
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RECOMMENDED ACTION(S):
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1. |
Approve the Amended and Restated Memorandum of Understanding between Orange County Community Resources and Orange County Health Care Agency for transfer of up to an additional $30,000,000 in Mental Health Services Act funding for the development of affordable and permanent supportive housing and authorize OC Community Resources Director or designee and OC Health Care Agency Director or designee to execute Memorandum of Understanding. |
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2. |
Authorize the OC Community Resources Director or designee to increase the 2020 Supportive Housing Notice of Funding Availability (or subsequent NOFA as approved by the Board of Supervisors) by up to $30,000,000 in Mental Health Services Act funding for the development of affordable and supportive housing and return to the Board of Supervisors for funding commitments to individual projects. |
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3. |
Direct the Auditor-Controller to revise appropriations, revenues, transfers in and out, and fund balance-assigned in Health Care Agency (Budget Control 042) and Mental Health Services Act Housing Fund 12A in accordance with Government Code Sections 29130, 29125 and 25252 as described in this Agenda Staff Report: (Requires four-fifths vote) |
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Fund |
Dept. |
Budg. Ctrl. |
Unit |
Object/ Rev. Src./ BSA |
DObj./ DRSRC |
Revenue Inc/(Dec) |
Appropriations Inc/(Dec) |
Reserves Inc/Dec |
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100 |
042 |
042 |
2100 |
1900 |
0000 |
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($30,000,000) |
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100 |
042 |
042 |
2100 |
4801 |
T12A |
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$30,000,000 |
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12A |
012 |
12A |
2300 |
7810 |
T042 |
$30,000,000 |
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12A |
012 |
12A |
2300 |
3800 |
0000 |
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$30,000,000 |
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SUMMARY:
Approval of the Amended and Restated Memorandum of Understanding between Orange County Community Resources and Orange County Health Care Agency, the Amended and Restated Grant Agreement between the County of Orange and the Orange County Housing Finance Trust and the increase to the Orange County Community Resources 2020 Supportive Housing Notice of Funding Availability will facilitate the transfer and commitment of funds for the development of affordable and supportive housing throughout Orange County.
BACKGROUND INFORMATION:
On December 17, 2019, the Board of Supervisors (Board) amended the Mental Health Services Act (MHSA) Spending Plan for allocation of $30.5 million to be distributed to the Orange County Housing Finance Trust (Trust) $20.5 million and Orange County Community Resources (OCCR) $10 million.
On May 19, 2020, the Board approved a Memorandum of Understanding (MOU) between Orange County Health Care Agency (HCA) and OCCR to transfer up to $36 million in MHSA funds from HCA to OCCR Fund 12A. The funds were to be used for the development of permanent supportive rental housing units for individuals who are diagnosed with serious mental illness, eligible for MHSA services in their county of residence and experiencing homelessness or at risk of being homeless. OCCR utilized $15.5 million for its 2020 Supportive Housing Notice of Funding Availability (NOFA) and allocated the remaining $20.5 million to the Trust.
On June 28, 2022, the Board approved the 2022-23 MHSA Three-Year Program and Expenditure Plan (2022-23 MHSA Plan) which included an additional $40 million for the development of permanent supportive housing for eligible MHSA households.
OCCR and HCA are requesting approval of the Amended and Restated MOU between the two agencies to transfer $30 million of the $40 million in MHSA funds approved in the 2022-23 MHSA Plan from HCA to OCCR Fund 12A (Attachment A). Funds placed in Fund 12A may only be utilized for the development of permanent supportive rental housing units for individuals who are diagnosed with serious mental illness, eligible for MHSA services in their county of residence, and homeless or at risk of being homeless. OCCR will utilize $30 million for its 2020 Supportive Housing NOFA (or subsequent NOFA as approved by the Board of Supervisors). As projects are reviewed and recommended for funding under the NOFA(s), OCCR will return to the Board for funding commitments to individual projects. OCCR intends to allocate the remaining $10 million of the $40 million to the Trust and will return to the Board with an Amended and Restated Grant Agreement with the Trust for consideration and a request to transfer the funds.
Approval of the amendment to the MOU between OCCR and HCA will allocate an additional $30 million for the development of affordable and supportive housing for eligible MHSA households consistent with the Housing Funding Strategy filed in June 2018, with the goal to develop 2,700 supportive housing units by 2025.
FINANCIAL IMPACT:
Appropriations of $40 million for MHSA permanent supportive housing are included in HCA’s Budget Control (BC) 042 FY 2022-23 Budget. However, the Operating Transfers required from BC 042 to Fund 12A, MHSA Housing Fund, was not budgeted. Recommended Action 3 will provide these necessary budget adjustments.
Appropriations and Revenues associated with these amendments will be included in the FY 2022-23 Budgets for the MHSA Housing Fund, Fund 12A as a result of Recommended Action 3.
The proposed amendments include provisions that funding for the amendments are contingent upon state budget approval; receipt of funds from, and/or obligation of funds by, the State of California to the County; and inclusion of sufficient funding for the services hereunder in the Budget approved by the Board for each fiscal year covered by these Agreements. If such approval, funding, or appropriations are not forthcoming, or are otherwise limited, the County may terminate or modify these Agreements without penalty.
STAFFING IMPACT:
N/A
REVIEWING AGENCIES:
Orange County Health Care Agency
ATTACHMENT(S):
Attachment A – Amended and Restated Memorandum of
Understanding between Orange County Community Resources and Orange County
Health Care Agency
Attachment B – Government Codes 29125, 29130, 25252