Agenda Item   



                                                                                                                        ASR Control  19-000908




legal entity taking action:

Board of Supervisors

board of supervisors district(s):

All Districts

SUBMITTING Agency/Department:

OC Community Resources   (Approved)

Department contact person(s):

Dylan Wright (714) 480-2788 



Shannon Legere (714) 480-6534



Subject:  Approval of Homeless Emergency Aid Program Transitional Aged Youth Agreement


      ceo CONCUR

County Counsel Review

Clerk of the Board


Approved Agreement to Form




3 Votes Board Majority




    Budgeted: Yes

Current Year Cost: $778,435

Annual Cost: N/A




    Staffing Impact:


# of Positions:

Sole Source: No

    Current Fiscal Year Revenue: N/A

  Funding Source: State: 100% (Department of Housing and Community Development)

County Audit in last 3 years: No



    Prior Board Action: 4/23/2019 #S49F, 11/20/2018 #S41F, 9/25/2018 #35, 6/12/2018 #2






Approve selection of Covenant House California for Homeless Emergency Aid Program Transitional Aged Youth grant activities for the provision of a capital project in an aggregate amount not to exceed $778,435 following the execution of the contract through April 30, 2021.



Approve and authorize the OC Community Resources Director or designee to execute the Agreement between Covenant House California and the County of Orange for a Homeless Shelter Capital Project to facilitate a capital project and establishment of a shelter to serve Transitional Aged Youth, in an amount not to exceed $778,435 for a 10-year period following execution of the contract.



Pursuant to Contract Policy Manual Section 3.4-114, authorize the OC Community Resources Director or designee to exercise a contingency contract cost increase, not to exceed a total of 10 percent of the contract amount for the first year of the contract, for the entire term of the contract, including renewals, and within the scope of work set forth in the contract.  The use of this contingency contract cost increase is subject to approval requirements established by the County Procurement Officer.







Approval of the Agreement Between Covenant House California and the County of Orange for a Homeless Shelter Capital Project will expand the Orange County System of Care capacity by facilitating Covenant House California provision of youth-specific programming and establishment of vital infrastructure resource that addresses the emergency shelter needs for transitional aged youth experiencing homelessness.





The Homeless Emergency Aid Program (HEAP) was established by the State of California to provide Continuums of Care (CoC) and local governments with one-time flexible block grant funds to address the homelessness crisis in their communities. Eligible activities include emergency services, rental assistance or subsidies, capital improvements, along with a required five percent set-aside for youth specific programming.


The HEAP statute mandates that 50 percent of the awarded funds to the County of Orange (County) must be contractually obligated by January 1, 2020. Additionally, 100 percent of the funds must be expended by June 30, 2021. Unexpended funds must be returned to the Business, Consumer Services and Housing Agency and will revert to the General Fund.


The Orange County CoC was allocated $15,568,715.65 with a requirement for a five percent set-aside for youth-specific programming and is allowed up to 5 percent for administrative costs. For a capital project to be eligible for HEAP funding, the capital project must be located in a city that has declared a shelter crisis. The six cities that declared a shelter crisis are Anaheim, Buena Park, Laguna Beach, Placentia, Santa Ana and Tustin. The County declared a shelter crisis on June 12, 2018.


On September 25, 2018, the Board of Supervisors (Board) approved OC Community Resources (OCCR) to submit a Grant Application for HEAP funding in the amount of $15,568,715, and designated the County as the Administrative Entity for the funds. On November 20, 2018, the Board approved the acceptance of the grant award and authorization to execute standard agreements and contracts for HEAP funds.


On December 4, 2018, the County submitted the HEAP application to the State. The State notified the County of the award for the full amount of HEAP funds on December 20, 2018. 


On January 7, 2019, the County executed the agreement with the State. In the State Standard Agreement, HEAP funds can only be obligated and expended for eligible uses. The County received the HEAP funds on January 22, 2019. The Board approved HEAP funding agreements for capital projects and HEAP contracts for human services on April 23, 2019.


During the Orange County CoC Board meeting on August 22, 2018, the Orange County CoC Board also designated the County as the Administrative Entity for HEAP funding. Additionally, it determined that the youth-specific programming funded by HEAP would be the subject of a Request For Proposals (RFP) process to identify and select the most appropriate partner for developing a program to assist the Transitional Aged Youth (TAY), individuals between the ages of 18 and 24, in Orange County. 


On February 19, 2019, OCCR released an RFP on the County's online bidding system known as BidSync to select a recipient for the HEAP youth-specific programming for TAY in the amount of $778,435. OCCR sent an additional notification of the RFP's release to the provider community through the 2-1-1 Orange County listserv and included BidSync information for those interested in applying. On March 19, 2019, in response to the RFP, OCCR received a total of four proposals for the HEAP youth-specific component from the following providers:


1)  Covenant House California

2)  Volunteers of America of Los Angeles

3)  American Family Housing

4)  Stand Up For Kids, Inc.


The submitted proposals were evaluated and scored by a designated committee based on qualifications and expertise related to the subject matter as noted in Attachment A, Written Summarized Score Sheet. The evaluation committee recommended that OCCR proceed with negotiations with the top-ranked proposer, Covenant House California. Department staff have conducted due diligence on the proposer. A reference check was satisfactory and completed with the Los Angeles Homeless Services Authority regarding similar projects. Department has verified there are no concerns that must be addressed with respect to Contractor’s ownership/name, litigation status or conflicts with County interests. This contract does not currently include subcontractors or pass through to other providers. See Attachment C for Contract Summary Form. Covenant House California currently operates robust Rapid Rehousing programs in Los Angeles and Oakland and forms community partnerships to educate and advocate for this target population.


Covenant House California will utilize HEAP funds for site acquisition and development of an emergency shelter for the TAY population. The project will serve as a 25-30 bed emergency housing shelter for their Safe Haven Program and provide shelter to approximately 150 TAY experiencing homelessness annually. The program will include the provision of a standardized assessment, reserved 24-hour bed availability and essential services to engage TAY experiencing homelessness in a manner that will help them achieve permanent and stable housing. 


Covenant House California will begin site acquisition and renovation work within 60 days of agreement commencement and understands the urgent need to serve TAY individuals in Orange County.  The goal is 100 percent utilization of bed space, with 100 percent of youth entering shelter receiving a psychosocial assessment and 85 percent exiting to a safe and stable destination. Covenant House California will actively engage with the Orange County CoC, participate in the Coordinated Entry System, and utilize the Homeless Management Information System to align with Orange County's System of Care and ensure continuous support of the organization’s Safe Haven Program.


Approval of the HEAP Agreement Between Covenant House California and the County of Orange For A Homeless Shelter Capital Project with Covenant House California will expand the Orange County System of Care through a new shelter and youth-specific programming. By approving this item, the County will gain vital infrastructure for needed emergency shelter beds for TAY individuals experiencing homelessness.


Due to the urgency of this funding and timeframe for the expenditure of these funds, this agreement is submitted to the Board less than 30 days prior to the start of the Agreement. The HEAP grant and funding allocations complement the Board’s direction and recent efforts in addressing the needs of those experiencing homelessness.







The State of California has allocated HEAP funding to the County of Orange for a total amount of $15,568,715.65. Of this HEAP allocation, $778,435 is designated for the agreement included in this agenda item. Appropriations for this Contract are included in the FY 2019-2020 Budget. This Contract contains language allowing OCCR to terminate the contract without penalty with or without cause.









Attachment A – Written Summarized Score Sheet
Attachment B – Agreement #19-23-0063-HEAP with Covenant House California
Attachment C – Contract Summary Form