Title
Adoption of Resolution Authorizing the City Manager, or Designee, to Apply For, Execute an Agreement and Related Documents for, and Accept a $500,000 Grant from the U.S. Department of Housing and Urban Development (HUD) for the Dignity Village Project Located at 2350 5th Street, Alameda, California; and Increasing Revenue and Expenditure Appropriations in the Grants Fund by $500,000. (Community Development 10061832)
Body
To: Honorable Mayor and Members of the City Council
EXECUTIVE SUMMARY
In the Consolidated Appropriations Act, 2022, (P.L. 117-103) (the Act), Congress made accessible “grants for the Economic Development Initiative for the purpose of Community Project Funding / Congressionally Directed Spending.” These Community Project Funding (CPF) awards are managed by the Department of Housing and Urban Development (HUD). City of Alameda (City) Community Development Department received a Letter of Invitation to prepare administrative forms to commence the grant agreement for execution in the amount not to exceed $500,000 for Dignity Village to help house individuals who are experiencing homelessness. This proposal would allocate $500,000 of funding from HUD for unforeseen construction related expenses.
Staff is recommending that the City Council authorize the City Manager, or designee, to apply for, negotiate, appropriate, accept, and execute an agreement with the U.S. Department of Housing and Urban Development (HUD) to accept up to $500,000 for Dignity Village Project. In addition, staff is recommending that the City Council authorize the City Manager, or designee, to execute related documents, agreements, and modifications with the U.S. Department of Housing and Urban Development to provide funding for construction related expenses.
BACKGROUND
The number of unhoused community members in the City continues to grow. The 2022 Point-In-Time (PIT) count showed a 14% increase in unhoused Alameda residents since the last PIT count in 2019 within the city, and a 21.5% increase within Alameda County. Of the 264 homeless individuals counted in the city, 180, or 68% were unsheltered, which is defined as living in tents, a vehicle, or on the street. The City’s ability to relocate the unhoused from public and/or unsafe areas of the city is somewhat limited due to the lack of a sufficient number of shelter beds for the City’s unhoused population, pursuant to the 9th Circuit’s Martin v. City of Boise decision. The need for homeless housing in Alameda has reached a critical point.
On November 16, 2021, City Council authorized the City Manager to execute a Memorandum of Understanding between Dignity Moves, Five Keys Schools and Programs (Five Keys), Successor Agency to the Community Improvement Commission (SACIC), and the City (collectively, Partners) to reply to a Notice of Funding Availability (NOFA) issued by HCD to provide shelter to address the growing number of individuals experiencing homelessness. Staff prepared the response to the NOFA and the project, Dignity Village, was awarded a Homekey grant on March 1, 2022 (Award Date). The project award was $9,225,536 for construction and $2,555,844 for operations over a five-year period. Dignity Village will be two stories with 47 sleeping rooms, each approximately 168 square feet, private in-suite bathrooms, community spaces, including a dining building, community garden, courtyard, meeting rooms, offices for support services staff, and storage for clients' excess belongings. The construction of Dignity Village is scheduled to be completed by March 1, 2023, and 42 of the 47 units are projected to be occupied within 90 days of construction completion, or by May 31, 2023. On October 18, 2022, City Council approved a five-year contract with Five Keys for operation of the supportive services available to the residents at Dignity Village totaling $10,745,844.
Senators Padilla and Feinstein sponsored the CPF grant for $500,000 and invited the City to apply. The grant was made possible by Congress in the Consolidated Appropriations Act 2022. Congress directs that funds be awarded to the City and be spent on the project or purpose identified in the authorizing legislation for Community Project Grants.
DISCUSSION
In the Consolidated Appropriations Act, 2022, (P.L. 117-103) (the Act), Congress made available “grants for the Economic Development Initiative for the purposes of Community Project Funding/Congressionally Directed Spending.” These Community Project Funding (CPF) awards are administered by the Department of Housing and Urban Development (HUD).
Entities named by Congress in the Congressional Record for this fiscal year may apply for and receive the CPF grant funds. The City received a Letter of Invitation to prepare administrative forms to initiate the grant agreement for execution in the amount not to exceed $500,000. Once the Grant Agreement is prepared by the City and is received, reviewed, and verified by HUD, then the Grant Agreement will be sent for signature. The funding would cover unforeseen construction related expenses. Staff recommends that the City Council authorize the City Manager, or designee, to apply for, negotiate, allocate, appropriate, and accept $500,000 from the U.S. Department of Housing and Urban Development (HUD) for the Dignity Village Project to ensure the project is successful.
ALTERNATIVES
• Authorize the City Manager, or designee, to apply for and execute an agreement and related documents for a $500,000 from the U.S. Department of Housing and Urban Development (HUD) for the Dignity Village project; and increase funding for construction related expenses by way of the CPF Grants Fund by $500,000 pending execution of the grant agreement
• Decline to authorize acceptance of the HUD funding and not have additional funds for Dignity Village.
FINANCIAL IMPACT
The grant agreement with the U.S. Department of Housing and Urban Development would be funded with the $500,000 identified in the Congressional Record. Appropriation of the grant funds would remain pending until execution of the grant agreement.
The proposed grant agreement for $500,000 would release $500,000 in General Fund budget previously allocated to the Dignity Village project to be re-appropriated for other uses, subject to City Council approval.
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 addressing need F “Ensuring Funding is Sustainable and Leveraged” as noted in the “Road Home - A Five-Year Strategic Plan to Prevent and Respond to Homelessness in Alameda Secure a Housing Future for All Alamedas’.”
ENVIRONMENTAL REVIEW
This action does not constitute a “project” as defined in California Environmental Quality Act (CEQA) Guidelines Section 15378 and therefore no further CEQA review is required.
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.”
RECOMMENDATION
Authorize the City Manager, or designee, to apply for, and execute an agreement and related documents for, and accept a $500,000 grant from the U.S. Department of Housing and Urban Development for the Dignity Village Project located at 2350 5th Street, Alameda, California; and
Adopt a resolution to increase revenue and expenditure appropriations in the Grants Fund by $500,000, pending execution of the grant agreement, for the Dignity Village Project.
Respectfully Submitted,
Lisa Maxwell, Community Development Director
By:
Amanda Olson, Community Development Program Manager
Financial impact section reviewed,
Margaret L. O'Brien, Finance Director
Exhibit:
1. Development Budget
cc: Erin Smith, City Manager