CITY OF TALLAHASSEE
CITY COMMITTEE AGENDA ITEM
ACTION REQUESTED ON: May 13, 2009
SUBJECT/TITLE: Approval of the Homeless Prevention and Rapid Re-housing Program and Community Development Block Grant – Recovery Program Substantial Amendment for submission to the US Department of Housing and Urban Development
TARGET ISSUE: Affordable Housing

STATEMENT OF ISSUE

The Federal government created the Homeless Prevention and Rapid Re-housing Program (HPRP) and the Community Development Block Grant – Recovery Program (CDBG-R) in the American Recovery and Reinvestment Act of 2009. The US Department of Housing and Urban Development (HUD) allocated $784,267 in HPRP funds and $512,812 in CDBG-R funds for the City of Tallahassee. According to the HPRP Notice governing the program, HPRP funds may be used for direct financial assistance, case management services, and data reporting for households at risk of homelessness and households already experiencing homelessness. HUD has not released a CDBG-R Notice yet, but the City anticipates the eligible activities will be similar to the CDBG program. To apply for the HPRP and CDBG-R funds, Tallahassee must submit a Substantial Amendment to its 2008-2009 Annual Action Plan. The Substantial Amendment is due to HUD before May 18, 2009.

RECOMMENDED ACTION

Approve Option 1. Approve the HPRP and CDBG-R Substantial Amendment, after a public hearing, for submission to the US Department of Housing and Urban Development before May 18.

FISCAL IMPACT

The City is positioned to receive $784,267 for the Homeless Prevention and Rapid Re-housing Program, including $39,213 to administer the program and $512,812 in CDBG-R funds. The Office of Budget and Policy have reviewed this agenda item and concur with the recommendation.

Thomas H. Lewis, Director, Economic & Community Development

Anita Favors Thompson, City Manager

For information, please contact: Joyce Martinez, Housing Administrator, 891-6500.

SUPPLEMENTAL MATERIAL/ISSUE ANALYSIS
HISTORY/FACTS & ISSUES

The Federal government enacted the American Recovery and Reinvestment Act (ARRA) in February 2009. Included in the ARRA is the Homeless Prevention and Rapid Re-housing Program (HPRP) to assist homeless households and those at risk of homelessness, and the Community Development Block Grant - Recovery Program (CDBG-R). To apply for the available funds, Tallahassee is required to submit a Substantial Amendment to its 2008-2009 Annual Action Plan, which determines the use of Federal grant funds. To save administration costs in developing the Substantial Amendment, HUD has allowed the HPRP and CDBG-R Substantial Amendments to be approved and submitted together. The substantial amendment is due to HUD by May 18, 2009.

HUD published the HPRP Notice governing the use of funds on March 19, 2009. Based on the Emergency Shelter Grant formulas already used by the U.S. Department of Housing and Urban Development (HUD), Tallahassee was designated to receive a direct allocation. HUD allocated $784, 267 for the City of Tallahassee. Jurisdictions that did not receive direct allocations had an opportunity to receive HPRP funding through the State. The State of Florida received an allocation of $65,297,986 that will be distributed to counties through their membership in the Continuum of Care. The local Continuum of Care, led by the Big Bend Homeless Coalition, received an allocation of $1,328,786 from the State of Florida to be distributed among seven counties. The Big Bend Homeless Coalition held two informational meetings for agencies interested in administering the HPRP on March 17 and April 3, 2009.

Tallahassee was allocated $512,812 through the CDBG-R program, based on the regular CDBG program allocation formula. HUD has not yet published the CDBG-R Notice governing the use of funds. The regular CDBG program allows jurisdictions to fund a diverse set of activities with the intention of creating suitable living environments, providing decent affordable housing, and creating economic opportunities primarily for low and moderate income individuals and households.

As part of its Citizen Participation Plan for Federal grants, staff held an advertised public meeting and a meeting of a Community Improvement Advisory Council (CIAC) to receive comment on the Substantial Amendment. The public meeting was held April 28 and the CIAC meeting was held April 29. The comment period met the requirements of the HPRP Notice. The second public hearing for the Substantial Amendment will be held at the regular City Commission meeting May 13, 2009.

Homeless Prevention and Rapid Re-housing Program (HPRP)

The March 19, 2009 HPRP Notice distributed by the U. S. Department of HUD defines eligible uses for the HPRP funds as:

• Direct financial assistance – rental assistance and utility assistance up to 18 months (including up to 6 months in arrears) to maintain housing for households at risk of homelessness; or, relocation expenses such as hotel and motel vouchers, security and utility deposits, moving cost assistance, and rental assistance for households already experiencing homelessness.
• Housing relocation and stabilization services – staffing and services component including case management, outreach and engagement, housing search and placement, legal services, and credit repair services.
• Data collection and evaluation – staff costs and equipment costs associated with data collection, data entry, and reporting through the Homeless Management Information System (HMIS), a required aspect of the program.
• Administrative costs up to 5% (or $39,213)

The following proposed budget was presented at the public meetings:

Tallahassee plans to distribute HPRP funds to households through a contract with one or more non-profit agencies. Selected non-profit agencies (sub-grantees) that administer the HPRP funds are required by HUD to report client data in the Homeless Management Information System (HMIS) and make quarterly progress reports. Eligible sub-grantees must have experience administering the eligible activities and reporting client data in HMIS. Staff sought input from the Continuum of Care to determine which agency or agencies may qualify to administer the HPRP funds.

Sub-grantees will determine eligibility of program recipients. All at-risk households assisted with HPRP funds must earn at or below 50% of area median income. Households must either be homeless according to HUD’s definition, or at risk of losing their housing. HUD defines persons as currently homeless and eligible for HPRP Re-housing activities if they are:

• Sleeping in an emergency shelter
• Sleeping in a place not meant for human habitation such as streets, a car, an abandoned building or a park
• Staying in a hospital or other institution for up to 180 days, but was staying in an emergency shelter or place not meant for human habitation prior to entry
• Graduating from or timing out of a transitional housing program
• Victims of domestic violence

For homeless prevention activities, eligible households may experience risk factors including eviction, discharge from an institution such as prison, residency in condemned housing, sudden loss of income, mental health or substance abuse, physical disability, health issues or medical debt, extremely low income, recent involvement in child welfare or foster care system, overcrowding, and more.

The non-profit agencies interested in administering HPRP funds as sub-grantees were required to submit a letter of interest to staff by April 30, 2009. Staff then distributed an application requesting documented experience in providing homeless prevention services in the area, tracking client progress through case management, coordinating efforts with Continuum of Care agencies, reporting demographics and other information in HMIS, identifying citizens at risk of homelessness through outreach efforts, performing income qualification, and following a detailed budget. Priority will be given to non-profit agencies that provide verifiable evidence of experience administering the HPRP-eligible activities, reporting data in HMIS, and fostering partnerships and/or networks with Continuum of Care agencies serving Tallahassee residents.

The applications to serve as a sub-grantee will be due to the City by May 29, 2009. Housing Division staff will review and score applications and provide recommendations for contract awards to the City Commission. The City Commission will select the sub-grantees that will administer the HPRP funds at the regular City Commission meeting July 8, 2009. All sub-grantee contracts must be executed by September 30, 2009. The sub-grantees must expend 60% of the HPRP funds within 2 years of the date Tallahassee enters an agreement with HUD (must be by September 1, 2009). 100% of the HPRP funds must be spent within 3 years of that date. The City will be responsible for monitoring the sub-grantees’ performance and timely use of funds.

Community Development Block Grant – Recovery Program (CDBG-R)
Although the CDBG-R Notice governing the funds has not yet been released, the City proposed a spending plan at the public meetings. The City plans to spend the maximum allowable amount for program administration, the maximum allowable amount for public services, and the balance of the CDBG-R funds for rehabilitation and capital improvements to the Lincoln Service Center and the Smith Williams Service Center.

These recommendations are based on two factors. (1) the current economic recession is placing extreme burdens on low-income neighborhoods and the agencies that serve them. Therefore, the recommendation is that the maximum allowable amount of the funds be allocated for direct public services. Under the regular CDBG funding guidelines, 15% of the CDBG entitlement can be used for public services, and the City regularly allocates those funds through the Community Human Services Partnership (CHSP) process. (2) While the final guidelines for the CDBG-R funds have not been released, HUD has recommended that priority be given to projects that can be substantially underway by September 30, 2009. The City’s Neighborhood Services Centers (Lincoln and Smith-Williams) are critical components in the delivery of services and programs to low-income neighborhoods. The City has plans and specifications for needed capital improvements for these facilities that can be implemented within the HUD recommended timelines.

The Lincoln Service Center will receive structural improvements to the roof and wall system and capital improvements to the gymnasium, which houses after-school recreation programs in disadvantaged neighborhoods. The Smith Williams Service Center will replace the windows on the building for improved energy efficiency and long-term cost savings. Funds allocated for public services will be added to the Community Human Services Partnership (CHSP) competitive funding process that distributes City of Tallahassee, Leon County and United Way funds to human services agencies.

OPTIONS

Option 1. Approve the HPRP and CDBG-R Substantial Amendment, after a public hearing, for submission to the US Department of Housing and Urban Development before May 18.

Pros:
1. Approving the Homeless Prevention and Rapid Re-housing Program Substantial Amendment, after a public hearing, for submission to the US Department of Housing and Urban Development will make Tallahassee eligible to receive
$784, 267 in HPRP funds and $512,812 in CDBG-R funds.
2. HPRP funds will be used to help households at risk of homelessness to maintain housing and to obtain housing for households experiencing homelessness.
3. CDBG-R funds would rehabilitate community service centers and contribute to human services needs.

Con:
1. None identified.

Option 2. Do not approve the HPRP and CDBG-R Substantial Amendment, after a public hearing, for submission to the US Department of Housing and Urban Development. Give staff alternative direction.

Pro:
1. None identified.

Cons:
4. Not approving the Homeless Prevention and Rapid Re-housing Program Substantial Amendment for submission to the US Department of Housing and Urban Development will make Tallahassee ineligible to receive $784, 267 in HPRP funds and $512,812 in CDBG-R funds.
5. HPRP funds would not be able to reduce the number of households in danger of losing housing and currently experiencing homelessness in Tallahassee.
6. CDBG-R funds would not be able to rehabilitate community service centers and contribute to human services needs.

ATTACHMENTS/REFERENCES

1. Homeless Prevention and Rapid Re-housing Program Substantial Amendment
2. Community Development Block Grant Recovery Program Substantial Amendment