The URL can be used to link to this page

Home My WebLink About14 SECOND AMENDMENT TO THE HOMELESS ASSISTANCE AGREEMENTMEETING DATE: TO: FROM: SUBJECT: -II TJIJi1_1Zvi Agenda Item 14 AGENDA REPORT Reviewed g City Manager Finance Director; JUNE 19, 2018 JEFFREY C. PARKER, CITY MANAGER ECONOMIC DEVELOPMENT DEPARTMENT SECOND AMENDMENT TO THE HOMELESS ASSISTANCE AGREEMENT The Second Amendment to the Homeless Assistance Agreement RECOMMENDATION: The City Council, acting as the Local Redevelopment Authority (LRA) for MCAS -Tustin, approve the Second Amendment to the Homeless Assistance Agreement and authorize the City Manager to execute the Agreement. FISCAL IMPACT: There is no direct fiscal impact to the General Fund. CORRELATION TO THE STRATEGIC PLAN: The Second Amendment to the Homeless Assistance Agreement furthers the objective of Goal A: Economic and Neighborhood Development, enhancing the vibrancy and quality of life in the community. BACKGROUND AND DISCUSSION: On October 21, 1996, the City Council approved the Homeless Assistance Agreement ("Agreement"). The Agreement was made and entered into by the City of Tustin acting as the Local Redevelopment Authority ("LRA") for the Marine Corps Air Station MCAS - Tustin, and the Orange County Rescue Mission, The Salvation Army, Human Options, Families Forward, and OC Gateway to Housing. In February of 1997, a First Amendment to the Agreement was executed. The Agreement met the submittal requirement of the United States Department of Housing and Urban Development (HUD) for the LRA to enter into a legally binding agreement with homeless providers selected by the LRA to implement homeless programs that fill gaps in the continuum of care. The intent of the Agenda Report June 19, 2018 Page 2 Agreement was to preserve flexibility regarding the ultimate methods by which the LRA facilitates housing development and the provision of services for the homeless. Families Forward currently operates fourteen (14) homeless transitional units in Irvine as a result of the Agreement. In the past few years, HUD has begun to defund transitional housing programs, including Families Forward, and reinvest its resources into permanent housing models such as Rapid Rehousing and Permanent Supportive Housing. Since Families Forward was defunded by HUD, they have been funding their transitional units through private grants and fundraising campaigns. As part of Families Forward Strategic Planning initiative and vision, the staff and Board of Directors have determined transitional housing is not the most efficient use of their resources. As a result, Families Forward is requesting to convert the 14 units from transitional housing units to permanent affordable housing for the homeless. Recognizing the Agreement's intent was to preserve flexibility in serving the homeless, staff is recommending the City Council, acting as the LRA, approve the Second Amendment to the Agreement. Pector chanan of Economic Development Attachment: Second Amendment to Jerry Craig Deputy Dire or o co is Development Hom 4 ss Assistance Agreement SECOND AMENDMENT TO HOMELESS ASSISTANCE AGREEMENT FOR THE MARINE CORPS AIR STATION – TUSTIN THIS SECOND AMENDMENT TO HOMELESS ASSISTANCE AGREEMENT (“Amendment”) is made and entered into on the ____ day of June, 2018 (the “Effective Date”) by and between the CITY OF TUSTIN, a general law city and municipal corporation acting as the Local Redevelopment Authority (“LRA”) for the Marine Corps Air Station MCAS-Tustin, and the ORANGE COUNTY RESCUE MISSION, THE SALVATION ARMY, HUMAN OPTIONS, FAMILIES FORWARD (formerly known as IRVINE TEMPORARY HOUSING), and OC GATEWAY TO HOUSING (formerly known as ORANGE COAST INTERFAITH SHELTER), (hereinafter collectively the “Providers”. The LRA and the Providers are referred to collectively as the “Parties.”) RECITALS A.Families Forward agreed to the terms and conditions of that certain Homeless Assistance Agreement (“Agreement”) executed by the City of Tustin, Local Redevelopment Authority for MCAS Tustin (“LRA”), and Families Forward on October 11, 1996, pursuant to the Community Redevelopment Act of 1994, as amended. In accordance with that Agreement, Families Forward agreed, among other things, to: [[600,1638,1132,1695][12][,I,][Times New Roman]]“…operate 14 units …. [[1130,1638,1512,1695][12][,I,][Times New Roman]]Families Forward [[1508,1638,2113,1695][12][,I,][Times New Roman]]’s program would meet the [[600,1695,1762,1752][12][,I,][Times New Roman]]emergency and transitional housing needs of families with [[1762,1695,2113,1752][12][,I,][Times New Roman]]children who are [[600,1753,2112,1810][12][,I,][Times New Roman]]homeless due to a short or temporary financial incapacity due to personal, [[600,1810,1180,1867][12][,I,][Times New Roman]]economic or medical crisis.” [[1180,1810,1206,1867][12][,I,][Times New Roman]] [[450,1868,476,1925][12][,I,][Times New Roman]] B.Since its inception, Families Forward owns and operates Transitional Housing for homeless families. Transitional Housing’s typical model allows for a family who is experiencing homelessness to temporarily live in a unit owned by a non-profit agency where they receive supportive services for a capped period of time, typically one to two years, until they ultimately move to permanent housing and stability. C.During the recession, Families Forward was overwhelmed with the need for assistance from the community and the demand for Transitional Housing. As a result, Families Forward explored creative ways to serve these families and it ultimately resulted in Families Forward being the first agency in Orange County to launch a nationally recognized best practice known as “Rapid ReHousing”. In lieu of using an agency-owned unit for a temporary period of time, through the Rapid ReHousing model, Families Forward partners with apartment communities and permanent housing stakeholders to connect families with stable housing quickly. Families Forward then provides the support services needed to maintain that housing. D.From 2008 to 2012, Families Forward operated both Transitional Housing and Rapid ReHousing programs simultaneously to serve families in need. E.In 2012, Families Forward collaborated with California State University, Fullerton to assess the effectiveness of these two programs. The study showed that although both programs were equally successful, having an average success rate of 90% of families that retained permanent housing post program, the cost to operate Transitional Housing averaged $30,000 per family whereas Rapid ReHousing was half the cost at $15,000 per family. F.The U.S. Department of Housing and Urban Development (HUD) has also assessed the cost of the Transitional Housing model and began to distinguish Rapid ReHousing as a best practice in supporting homeless and at-risk families with housing. G.Subsequently, HUD began to defund Transitional Housing programs and reinvest resources into permanent housing models such as Rapid ReHousing and Permanent Supportive Housing for chronically homeless individuals. H.In 2014, Families Forward’s Transitional Housing was defunded through HUD and the grant monies were repurposed into Rapid ReHousing funds that Families Forward was later awarded. I.Since the loss of its Transitional Housing funds, Families Forward has been operating the units made available pursuant to the Agreement as shorter term Transitional Housing, alternatively known as Interim Housing, through private grants and fundraising campaigns. J.As part of its 2016-2019 Strategic Planning initiative, Families Forward analyzed the efficiency and efficacy of operating these units as Interim Housing. Due to the scattered nature of the Families Forward units, the cost to continue to operate these units as short term Transitional or Interim Housing is no longer an efficient use of Families Forward’s resources. K.The Families Forward Board of Directors has identified that operating the units as Permanent Affordable Housing for low income households who are homeless or at risk of homelessness is an ideal alternative to their current usage. Families Forward has already begun to implement this recommendation and has successfully converted seven units from Transitional Housing to Affordable Housing by amending Regulatory Agreements with the City of Irvine. L.In 2007, in accordance with the Agreement, Families Forward acquired 14 condominium units in the Savannah Neighborhood Association developed by Lennar Corporation. M.Section 1.3 of the Agreement states that a Provider shall provide “…shelter and assistance for the homeless substantially as identified in that Provider’s approved application, as it may be subsequently amended, and approved by the LRA.” (emphasis added). N.Families Forward wishes to convert its 14 Savannah Neighborhood units from Transitional Housing to Affordable Housing for homeless, low income families. NOW, THEREFORE, the Parties do hereby agree to amend the Agreement as follows: Section 1. Amendment of Program Description. This Amendment shall be substituted as the Revised Families Forward Program Description for the approved Families Forward Homeless Assistance Program Description contained on Pages A-3 and A-4 of Exhibit A (Program Description and Premises Identified) of the Agreement. Section 2. Authorization to Operate Permanent Affordable Housing. Families Forward is hereby authorized to operate the 14 condominium units in the Savannah Neighborhood Association as Permanent Affordable Housing for low income households who are homeless or at risk of homelessness, in accordance with all other terms and conditions set forth in the Agreement. Section 3. Except as otherwise expressly provided herein, the terms and conditions set forth in the Agreement shall remain in full force and effect. <<<<<<<<<<<<<<<SIGNATURE PAGE FOLLOWS>>>>>>>>>>>>>>> IN WITNESS WHEREOF, the Parties have executed this Amendment effective as of the Effective Date shown above. CITY OF TUSTIN, LOCAL REDEVELOPMENT AUTHORITY FOR MCAS-TUSTIN DATED: _____________________ _________________________________________ Jeffrey C. Parker City Manager ATTEST: APPROVED AS TO FORM: _________________________________ _________________________________ Erica N. Yasuda David E. Kendig City Clerk City Attorney ORANGE COUNTY RESCUE MISSION FAMILIES FORWARD (formerly Irvine Temporary Housing) By:____________________________________ By:_________________________________ Signature Signature Date: __________________________________ Date: _______________________________ SALVATION ARMY OC GATEWAY TO HOUSING (formerly Orange Coast Interfaith Shelter) By:____________________________________ By:_________________________________ Signature Signature Date: __________________________________ Date: _______________________________ HUMAN OPTIONS By:____________________________________ Signature Date: __________________________________