Report to City Council and Housing Authority
Tuesday, May 03, 2022
Consent
SUBJECT:
Title
CONSIDER APPROVAL OF A CONTRACT AMENDMENT WITH FAMILY PROMISE OF SOUTH BAY TO CONTINUE SERVICES FOR HOMELESS PREVENTION AND RAPID REHOUSING THROUGH FY 2022-23 (HOUSING AUTHORITY)
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I. SUMMARY
On February 18, 2021 the owner of Park Granada Mobile Home Park filed for bankruptcy with the bankruptcy court forcing the eventual closure of the park and displacement of park residents. On June 15, 2021 the Carson Housing Authority authorized $170,000 for homeless prevention and rapid rehousing. (Exhibit No.1). A portion of these funds, $56,595.00, have already been used to provide temporary housing and other related services/uses for Park Granada residents to prevent them from becoming homeless due to circumstances beyond their control, mainly due to the closure of the park ordered by the bankruptcy court.
The Carson Housing Authority and Family Promise of South Bay entered into a one-year agreement on July 28, 2021 in the amount of $23,300 to assist with the relocation process for residents of the park. The relocation process is still ongoing and is expected to conclude next fiscal year. If approved, this contract amendment will allow Family Promise to continue to provide relocation assistance until alternative housing has been provided for qualifying park residents. The remaining funds from the original $170,000 allocated by the City Council will be used for this purpose.
II. RECOMMENDATION
Recommendation
TAKE the following actions:
1. APPROVE the contract amendment with Family Promise of South Bay for homeless prevention and rapid rehousing services for Carson residents for a total contract amount not-to-exceed $58,000 for two years.
2. AUTHORIZE the Chairperson of the Housing Authority to execute the contract amendment after approval as to form by the Authority Counsel.
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III. ALTERNATIVES
TAKE any other action the City Council deems appropriate.
IV. BACKGROUND
California Health & Safety Code Section 34176.1(a) allows cities to use up $250,000 of their Housing Authority funds per fiscal year for homeless prevention and rapid rehousing services for individuals and families who are homeless or would become homeless unless they received assistance.
Code Section 34176.1, section 2 reads, “Notwithstanding Section 33334.2, if the housing successor has fulfilled all obligations pursuant to Sections 3343 and 33418, the housing successor may expend up to two hundred fifty thousand dollars ($250,000) per fiscal year for homeless prevention and rapid rehousing services for individuals and families who are homeless or would be homeless, but for this assistance, including the provision of short term rental or mid-term assistance, housing relocation and stabilization services including housing search, mediation, or outreach to property owners, credit repair, security or utility payments, rental assistance for a final month at a location, moving cost assistance, and case management, or other appropriate activities for homelessness prevention and rapid rehousing of persons who have become homeless.”
The Carson Housing Authority partnered with Family Promise of South Bay, a non-profit organization that combats family homelessness in the South Bay, approving an agreement on July 28th, 2021 in the amount of $23,300, to assist with the relocation process for residents of the Park Granada Mobile Home Park, where the owner filed bankruptcy, causing the residents to be displaced. (Exhibit No.2).
Using a community-based approach, Family Promise engages local communities and houses of faith in providing support, resources, and services to families who have lost their homes. Participants in the program receive access to a safe place to sleep, nutritious meals, job and credit counseling, financial services, and family therapy in order to empower families to gain stability and self-reliance.
Prior to disbursement of any funds, an application form must be completed and each applicant must provide additional information to determine their qualifications for assistance based on the requirements below:
• Received an eviction notice from a bank or lending institution due to a third party not making their mortgage payments.
• Their personal assets or income are not enough to secure housing comparable to their current housing and place them at risk of becoming homeless.
• The maximum amount of assistance each unit will receive and shall not exceed $25,000 unless modified by the City Council.
• The applicant has less than 60 days to their eviction date with no alternative housing identified and paid for or the ability to pay for it.
Family promise has met with (4) four families in need of assistance and staff has reviewed the documentation provided by each applicant to determine if they meet the criteria to qualify for assistance. The following provides a summary:
• Space 22: 4-person household, $18,780.00 for rental payments & moving expenses;
• Space 24: 2-person household, $24,863.00 for moving expenses, rental deposit & 1-year paid rent;
• Space 21: 2-person household, $12,952.00 for Airbnb rental for 6 months & moving out of state expenses; and
• Space 6, 1-person household, Searching for housing.
The total direct total relocation cost were $56,595.00 and the administrative costs for Family Promise were $20,125.69.
Staff recommends amending the current contract with Family Promise for a total contract amount not-to-exceed $58,000 for two years. This will allow Family Promise to continue to close out and assist any additional Park Granada residents that have been displaced or are in need of relocation due to the closure of the park. (Exhibit No. 3).
V. FISCAL IMPACT
Funds for the proposed contract amendment are included in the proposed Housing Authority FY 2022-23 budget in account number 255-70-720-964-6004.
VI. EXHIBITS
1. Minutes June 15, 2021 (pgs. 4-5)
2. Family Promise contract (pgs. 6-27)
3. Amendment No. 1 to the Family Promise Contract (pgs. 28-33)
Prepared by: Debra Scott, Housing Rehabilitation Counselor/Saied Naaseh, Community Dvelopment Director