Title
Recommendation to Authorize the City Manager to Execute a Memorandum of Understanding between DignityMoves, Five Keys Schools and Programs, Successor Agency to the Community Improvement Commission and the City of Alameda to Participate in the State of California Homekey Program to Develop the Bottle Parcel Located at 2350 5th Street, Alameda, California [City Council and SACIC];
Adoption of Resolution of The Governing Body of City of Alameda, A Municipal Corporation Authorizing Joint Application to and Participation in the Homekey Program [City Council];
Adoption of Resolution of the Governing Body of the Successor Agency to the Community Improvement Commission of the City of Alameda, A Public Body Corporate and Politic Authorizing Joint Application to and Participation in the Homekey Program [SACIC]; and
Adoption of Resolution to Increase Expenditure Appropriations in the American Rescue Plan 2021 Project (C99300) in the Capital Projects Fund (310) by $4,640,000 and to Encumber $1,200,000 in General Funds (10061833) to Operate Interim Supportive Homeless Housing at the Bottle Parcel Located at 2350 5th Street, Alameda, California, for Fiscal Years 2021-22 through 2027-28. [City Council] (Community Development 10061833)
Body
To: Honorable Mayor and Members of the City Council
EXECUTIVE SUMMARY
The City of Alameda (City) lacks sufficient interim supportive low barrier housing to serve the general adult homeless population. The State of California (State), through the Housing and Community Development (HCD) Department, is offering a $1.45 billion second tranche of Homekey grant funding to help address homelessness in California.
Staff recommends executing a Memorandum of Understanding (MOU) among DignityMoves, Five Keys Schools and Programs (Five Keys), the Successor Agency to the Community Improvement Commission (SACIC) and the City of Alameda to pursue Homekey grant funding for development of an interim homeless housing project on the “Bottle Parcel”, located at 2350 5th Street. If Homekey funding is awarded to the applicant team, the grant funds would be used to construct a prefabricated modular development that is designed to remain in place for 15 years (20 years if County Home funds are used) and could house up to 61 individuals and couples in 46 units that include bathrooms.
Staff also recommends that the City Council and SACIC adopt State-required resolutions authorizing the City, the SACIC, Five Keys and DignityMoves to complete and file a joint application to participation in the Homekey grant program for funding.
Lastly, staff recommends that the City Council adopt the resolution to support the operation of the Homekey project. Staff recommends allocating $4,640,000 in funding from American Rescue Plan Act (ARPA) and $1,200,000 in General Funds for this purpose. This will fulfill one of the Homekey obligations to secure five years of gap funding for the operations of the interim supportive homeless housing program.
BACKGROUND
As the unhoused population grows, the needs of the unhoused community also grow. Alameda County’s homeless population grew by 43% (from 5,629 to 8,022) as shown by the 2017 and 2019 Point in Time (PIT) counts required by the U.S. Department of Housing and Urban Development (HUD). Alameda’s homeless population increased 13% from 204 to 231 individuals during the same period, though from observation staff believes homelessness in Alameda has further increased since 2019. However, due to COVID-19, the last PIT count was delayed and will not occur until January 25, 2022.
The City Council has identified addressing homelessness as one of its key priorities. As a result, in January of 2021, work began on a five-year plan to address homelessness. The resulting strategic plan, The Road Home: A 5 Year Plan to Prevent and Respond to Homelessness in Alameda, was approved by the City Council on October 5 (Road Home).
Strategy 1.1 of the Road Home recommends assessing and using available public and private land for housing. Strategy 2.2 of the Road Home recommends providing low-barrier, housing-focused temporary housing. Strategy 2.3 recommends expanding outreach and supportive services to unsheltered households. By pursuing the development of a Homekey project on the Bottle Parcel, available public land would be converted into interim supportive homeless housing, which would provide low-barrier temporary housing with a strong focus on placement into permanent housing opportunities. Once participants are in this housing, they would be able to access supportive services.
The State is offering approximately $1.45 billion during Fiscal Year 2021-2022 as part of the second tranche of Homekey funds, which builds on its prior Project Roomkey and Homekey programs. Homekey seeks to sustain and rapidly expand housing for persons experiencing homelessness or at risk of homelessness, and who are inherently especially impacted by COVID-19 and other communicable diseases. Homekey is described as an opportunity for State, regional, and local entities to develop a broad range of housing types for homeless individuals. This program is administered by HCD. Homekey is designed to incentivize projects developed within quick deadlines in hopes of addressing the housing crisis, and requires that capital expenditures are completed within eight months of award, and that occupancy occurs within 90 days of construction completion.
In response to the City Council’s prior direction to prioritize homelessness, staff issued a request for proposal (RFP) asking respondents to propose a housing project for the city’s unhoused residents that meets the requirements of Homekey at one of the following locations: (i) the Bottle Parcel, (ii) the Marina Village Inn at 1151 Pacific Marina, or (iii) another suitable Alameda site identified by the respondent. Staff received five responses. After reviewing RFP submissions, screening for financial feasibility, scoring entries, and conducting interviews, staff recommends selection of DignityMoves and Five Keys as partners to pursue the development of interim housing on the Bottle Parcel. This selection was made due to (i.) their unique proposal to build interim housing on the Bottle Parcel, which fulfills Strategy 2.2 of The Road Home described above; (ii.) their ability to adhere to Homekey standards, and (iii) strong performance in their interview.
DISCUSSION
The approval of staff recommendations in this report would allow the City to pursue development of interim housing on the Bottle Parcel, a parcel of land that is difficult to develop due to its footprint and size. The development would use prefabricated modular structures constructed to building code standards and designed to be durable with a minimum lifetime design of 15 years (20 years if County Home funds are used). Each room in the project would offer private accommodations including a bathroom. The project would offer on-site laundry, staff offices, common areas for the community and space for pet relief. It is anticipated that this development could shelter between 46 and 61 individuals and couple within 46 units (see example site plan in Exhibit 1).
Staff recommends DignityMoves and Five Keys as partners to develop and operate the interim housing on the Bottle Parcel. DignityMoves is a nonprofit real estate development organization dedicated to building interim supportive housing solutions. It is led by a team of experienced professionals in the areas of real estate and land use, affordable housing impact investment and fund developers for homelessness causes. DignityMoves has developed similar projects in Mountain View, San Francisco and the County of Santa Barbara. DignityMoves would take the lead role in project development.
Five Keys would take a lead role in providing operational services. Five Keys is a nonprofit organization with the following mission: “Through the use of social and restorative justice principles, Five Keys provides traditionally underserved communities the opportunity to improve their lives through a focus on the Five Keys: Education, Employment, Recovery, Family, Community.” Five Keys was founded in 2003 by the San Francisco Sheriff’s Department as the first accredited charter high school in the nation to provide diploma programs for adults in county jails. Today, Five Keys offers high school education, vocational skills, life skills classes and access to college and workforce programs. Five Keys has operated nine transitional housing and permanent supportive housing programs and has developed housing for formerly incarcerated women, located on Treasure Island in San Francisco.
Participants in the interim supportive homeless housing developed on the Bottle Parcel would receive case management and support in the following areas: obtaining permanent housing, addiction, mental health and any medical and care, public benefits, education and skill building and would receive referrals to employment services. Group activities would be provided based on participant’s interests and may include topics such as art, storytelling, life skills, financial literacy/household budgeting, tenants’ rights and responsibilities, nutrition and/or Narcotics Anonymous or Alcoholics Anonymous.
The MOU (Exhibit 2) would formalize the relationship of the following parties that will, upon approval, jointly apply for Homekey grant funds. The parties and their responsibilities are outlined below:
DignityMoves will serve as the project development manager. It will select and pay the modular manufacturer(s) and other vendors for the project; manage, and pay the architect, general contractor, and other consultants to ensure the project is completed successfully; coordinate with the City to obtain all necessary permits and authorization to construct the Project; coordinate with the related parties including the local building and planning department, fire department, Community Development Department, Five Keys, and any others to ensure the project is developed successfully.
Five Keys will serve as the wrap-around services provider and property manager. It will receive the capital portion of the funding from the State and other agencies; execute the Services Agreement with the City, for a minimum of at least three (3) years (or longer as required); provide intensive case management and robust wrap-around services; provide property management services, including routine maintenance of the units, security, janitorial services, and other responsibilities; operate the project using “Housing First” principals at all times; coordinate with the City and the Continuum of Care (CoC) thirty (30) days prior to occupancy to pre-select and prepare the first residents, such that the Project can be quickly occupied to 90% occupancy immediately; coordinate with the City and the CoC on an ongoing basis to ensure that the Project remains at least 90% occupied throughout the term of the Project; transfer the ownership of all of the units to the City upon completion of the construction phase of the Project; and manage all accounting and reporting of funds expended, as required by the State and other agencies, including the City.
Successor Agency to the Community Improvement Commission will commit the land to the project for no consideration. Staff recommends that the SACIC authorize the City Manager to sign the MOU.
City of Alameda will be the project sponsor and will receive the Homekey operational and other funding from the State as well as other government entities and/or private sources; ensure that there is sufficient funding to complete the Project and pay for ongoing services and operations through the duration of the Project’s occupancy; seek additional funding from other sources, both public and private, but will serve as the “back stop” to cover any funding gaps that may occur during the 15 years of committed operations of the Project (20 years if County funds are used); provide the necessary documentation to the property to either Five Keys or DignityMoves during the construction phase of the project to allow development of the Bottle Parcel; assist in streamlining all necessary permits and permissions, including but not limited to the Building, Planning and Transportation, Fire, and Public Work Departments and Alameda Municipal Power; enter into the Services Agreement with Five Keys for a period of at least three (3) years from the commencement of occupancy; coordinate with Five Keys and the CoC to manage the referral process for residents. Staff recommends that the City authorize the City Manager sign the MOU.
Each of the parties is required by the State to adopt a resolution authorizing a representative to apply for Homekey funds for the project. The City Manager is listed as the City and the SACIC’s representative and the Community Development Director is listed as the City Manager’s designee.
Homekey requires that operations funding be committed for a minimum five years, and while the five years begins the project is operational, the commitment must be made up front. ARPA funds must be appropriated and committed by the end of calendar year 2024 and must be used by calendar year 2026. The requested funding for the interim housing program to fill the funding gap for operations is $5,840,000. The amount includes three months of overlap funding to ensure that staff is requesting sufficient funds to cover the commitment.
The request is broken out as follows:
• $4,640,000 ARPA funding for the first four plus years (years 2022 - 2026); and
• $1,200,000 in General Fund funding for the last nine months for the five year commitment (year 2027).
ALTERNATIVES
Alternative One:
• Authorize the City Manager to execute a Memorandum of Understanding between DignityMoves, Five Keys, the SACIC and the City to participate in the State Homekey program to develop the Bottle Parcel located at 2350 5th Street.
• Adopt a resolution of the governing body of City, a municipal corporation authorizing joint application to and participation in the Homekey program.
• Adopt a resolution of the governing body of SACIC of the City, a public body corporate and politic, authorizing joint application to and participation in the Homekey program.
• Adopt a resolution to increase expenditure appropriations in the American Rescue Plan 2021 Project (C99300) in the Capital Projects Fund (310) by $4,640,000 and to reserve to $1,200,000 in General Funds (10061833) to operate interim supportive homeless housing at the Bottle Parcel located at 2350 5th Street for Fiscal Years 22/23 through 27/28.
Alternative Two:
• Authorize and adopt items 1 through 4 above.
• Adopt a resolution to increase expenditure appropriations for a lower amount.
Alternative Three:
• Decline to move forward with the Homekey application at this time.
FINANCIAL IMPACT
ARPA and General Funds.
This is a new appropriations request for $5,840,000 for the Alameda Homekey Program. Staff is requesting Council approval to appropriate:
• $4,640,000 ARPA funding for the first four years and six months (years 2022 - 2026); and
• $1,200,000 in General Fund funding for nine months (year 2027).
There are three months of additional funding requested due to the need to commit to five years of operating subsidy upfront and the imprecise timing of the project, until it is approved by the State. A budget reduction should be made in fiscal year 2022-23 if this project is approved to account for this additional funding.
The $4,640,000 equals 32.4% of the City’s $14,339,954 allocation of American Rescue Plan funding, which the City has received to date from the U.S. Treasury, if approved. This matter is being put forward now and as a standalone request for ARPA funding due to the time-sensitive nature of the situation.
|
ARPA |
ARPA |
ARPA |
ARPA |
ARPA |
General Fund |
|
7/1/2022 to 6/30/2023 |
7/1/2023 to 6/30/2024 |
7/1/2024 to 6/30/2025 |
7/1/2025 to 6/30/2026 |
7/1/2026 to 12/31/2026 |
1/1/2027 to 9/30/2027 |
|
$741,000 |
$753,000 |
$791,000 |
$1,556,000 |
$799,000 |
$1,200,000 |
Staffing.
If this Homekey application is approved to move forward and the grant is awarded, the Community Development Department (CDD) will need to add staff to support the development and operation of the project. The services that CDD is providing to our unhoused community members has expanded greatly over the last few years. The addition of this Homekey project and possibly an emergency housing project, coupled with management and operation of the Day Center and Safe Parking programs, participation in Dine and Connect and increase in day-to-day street outreach work will require the addition of at least one staff member at a manager level. At this time, CDD requests an additional full time Development Manager (Community Services Manager) position, if all or most of the recent request of the City Council are approved. The salary and benefits cost of an additional Development Manager position would be approximately $180,000 annually.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action is consistent with the Social Services Human Relations Board Charter and Ordinance authority “to improve social services in the community” (Alameda Municipal Code Section 2-11.5) and the Report on Homelessness Policies and Programs.
This action is consistent with Goal 1 and 2 of the “Road Home - A Five-Year Strategic Plan to Prevent and Respond to Homelessness in Alameda Secure a Housing Future for All Alamedans.”
ENVIRONMENTAL REVIEW
This action is exempt from review under the California Environmental Quality Act (CEQA) section 15378(b)(5) (not a project); and section 15601(b)(3) (no significant environmental impact).
CLIMATE IMPACT
The Social Vulnerability Assessment section of the Climate Action and Resiliency Plan states:
“adaptation strategies should consider how [the homeless] will receive emergency communications and how they will be sheltered. Proper, safe housing for all is an adaptation and resilience strategy. Planning strategies should always consider these vulnerable populations in adaptation efforts.”
The interim supportive homeless housing will provide safe, warm, and welcoming places to shelter those who are unhoused in Alameda while connecting them to opportunities for permanent housing along with health, mental health, and social service supports.
RECOMMENDATION
Authorize the City Manager to execute a Memorandum of Understanding between DignityMoves, Five Keys Schools and Programs, Successor Agency to the Community Improvement Commission and the City of Alameda to participate in the State of California Homekey program to develop the Bottle Parcel located at 2350 5th Street;
Adopt resolution of the governing body of City of Alameda, a municipal corporation authorizing joint application to and participation in the Homekey program;Adopt a resolution of the governing body of Successor Agency to the Community Improvement Commission of the City of Alameda, a public body corporate and politic, authorizing joint application to and participation in the Homekey program; and
Adopt a resolution to increase expenditure appropriations in the American Rescue Plan 2021 Project (C99300) in the Capital Projects Fund (310) by $4,640,000 and to reserve to $1,200,000 in General Funds (10061833) to operate interim supportive homeless housing at the Bottle Parcel located at 2350 5th Street for Fiscal Years 2022-23 through 2027-28.
CITY MANAGER RECOMMENDATION
The City Manager recommends authorization to execute a MOU with Dignity Moves, Five Keys Schools and Programs to participate in the State of California Homekey program to develop the Bottle Parcel located at 2350 5th Street.
Respectfully Submitted,
Lisa Nelson Maxwell, Community Development Director
By:
Veronika Cole, Community Services Manager
Lois Butler, Economic Development and Community Services Manager
Financial impact section reviewed,
By: Annie To, Finance Director
Exhibits:
1. City of Alameda Bottle Parcel Homekey Conceptual Site Layout
2. Alameda Homekey Memorandum of Understanding
cc: Eric Levitt, City Manager