Agenda Item Wording:
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Accept and Appropriate Grant - Accept and appropriate $3,000,000 of Encampment Resolution Funding Round 3 for operational funds for the Visalia Navigation Center on N. Court to provide interim shelter, and a combination of capital and operational funds for the Majestic Gardens on W. Noble to provide permanent supportive housing for people living in targeted encampments.
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Deadline for Action: 10/21/2024
Submitting Department: Finance and Technology Services
Contact Name and Phone Number: Margie Perez, Housing Specialist, margie.perez@visalia.city <mailto:margie.perez@visalia.city>, (559) 713-4460; Melody Murch, Assistant Finance Director, melody.murch@visalia.city <mailto:melody.murch@visalia.city>, (559) 713-4379; Renee Nagel, Finance Director, renee.nagel@visalia.city <mailto:renee.nagel@visalia.city>, (559) 713-4375
Department Recommendation:
Staff recommends that Council:
• Accept and appropriate $3 million dollars in Encampment Resolution Funding, Round 3 which was awarded on September 27, 2024. These funds will be used for operational funds for the Visalia Navigation Center in the amount of $1.5 million, and assistance for the Majestic Gardens permanent supportive housing project for capital and operational funds including rental subsidies gap funds for $1.5 million;
• Authorize the City Manager and staff to execute the necessary grant agreements; and
• Authorize City Manager to enter into contracts with Community Services Employment Training (CSET) for $1.5 million for the Navigation Center, Visalia Homekey LP for $648,810 for the Majestic Gardens capital, and Elevate Community Services for $851,190 the Majestic Garden operational.
Background Discussion:
On December 4, 2023, Council approved an application for Encampment Resolution Funding (ERF), Round 3 funds to provide support to both the Visalia Navigation Center, in partnership with Community Services Employment Training (CSET) to provide interim shelter, the Majestic Gardens project, in partnership with RH Community Builders (RHCB), Visalia Homekey LP, and Elevate Community Services to provide permanent housing respectively to persons living in targeted encampments located on the Highway 198 and State Route 63 on N. Dinuba Blvd. within the City of Visalia. The Visalia Navigation Center will provide immediate temporary shelter with pathways to permanent housing placement, and Majestic Gardens will provide permanent supportive housing for people experiencing homelessness.
On September 27, 2024, the City was notified of an award of ERF Round 3 funds in the amount of $3,000,000 as shown in Attachment A - ERF Round 3 Award Letter. These funds were specifically awarded by the California Department of Housing and Community Development (HCD) that includes $1.5 million for the Visalia Navigation Center first year operational funds and rapid rehousing funds including rental subsidies, and $1.5 million for the Majestic Garden project that includes $648,810 for capital (CP0516) with Visalia Homekey LP, and $851,190 for operational including on-site staffing and rental subsidies with Elevate Community Services as shown below in Table 1: ERF Round 3 Funding Summary. Appropriation of these funds is required to complete the budget process for the Visalia Navigation Center and Majestic Gardens projects. This action will allow proper allocation of project expenses for this approved funding source.
ERF Round 3 Activities:
• The Visalia Navigation Center
o The Visalia Navigation Center ERF Round 3 funds will provide $1,500,000 to CSET on-site administrator for the first year of operational and rapid rehousing funds for the Visalia Navigation Center. These funds will provide needed first year operational costs for the Visalia Navigation Center, including initial furnishing, window coverings, supplies, and first year start-up costs. The Visalia Navigation Center ERF Round 3 funds will also provide essential rapid rehousing funds including rental subsidies, security deposits, rental application fees, credit repair, rental arrears, and landlord mitigation assistance to assist in permanent housing placement.
• Majestic Gardens
o Capital (CP0516) - The Majestic Gardens ERF Round 3 funds will provide $648,810 to Visalia Homekey LP development partner for final capital development gap funding needed including installation of a wrought iron fence around the property and security cameras to ensure safety of residents and the surrounding area. These funds will also assist in landscaping to allow for green space and a dog park for residents.
o Operational - The Majestic Gardens ERF Round 3 funds will also provide $851,190 to Elevate Community Services non-profit operating partner for two-years of operational funds for the Majestic Gardens project. These funds will also provide two-years of rental subsidies for 19-units at the Majestic Gardens. These funds will include on-site enhanced case management and security services to ensure clients are transitioning in permanent housing smoothly, safely.
Fiscal Impact:
Approval of the item will appropriate $3,000,000 in Encampment Resolution Funding (ERF), Round 3 funds that includes $1,500,000 for operational funds for the Visalia Navigation Center, $648,810 for capital development (CP0516), and $851,190 for operational funds for the Majestic Gardens project. No General Fund money is included or requested for this grant.
Prior Council Action: December 4, 2023 (23-0424) - Council approved and ERF, Round 3 application to be evenly split between the Visalia Navigation Center and the Majestic Gardens project to provide interim shelter and permanent housing respectively to persons living in targeted encampments with the City of Visalia.
Other: None
Alternatives: None
Recommended Motion (and Alternative Motions if expected):
recommendation
I move that Council:
• Accept and appropriate $3,000,000 in Encampment Resolution Funding program, Round 3 funds;
• Authorize the City Manager and staff to execute the grant agreements; and
• Authorize City Manager to enter into contracts with Community Services Employment Training (CSET) for $1.5 million, Visalia Homekey LP for $648,810, and Elevate Community Services for $851,190 in Encampment Resolution Funding, Round 3.
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Environmental Assessment Status: N/A
CEQA Review: N/A
Attachments:
Attachment A - ERF Round 3 Award Letter
Attachment B - Draft CSET Contract Agreement
Attachment C - Draft Visalia Homekey LP Contract Agreement
Attachment D - Draft Elevate Community Services Contact Agreement