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Home My WebLink About07 THIRD AMENDMENT TO HOMELESS ASSISTANCE AGREEMENT DocuSign Envelope ID: 1329BDA6-63C6-4222-8A36-123CE92404B2 Agenda Item 7_ --------- AGENDA REPORT City Manager mw Finance Director N/A MEETING DATE: AUGUST 17, 2021 TO: MATTHEW S. WEST, CITY MANAGER FROM: ECONOMIC DEVELOPMENT DEPARTMENT SUBJECT: THIRD AMENDMENT TO THE HOMELESS ASSISTANCE AGREEMENT SUMMARY: The Third Amendment to the Homeless Assistance Agreement. RECOMMENDATION: The City Council, acting as the Local Redevelopment Authority (LRA) for MCAS-Tustin, approve the Third 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 Third 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 Agreement was to preserve flexibility regarding the ultimate methods by which the LRA facilitates housing development and the provision of services for the homeless. DocuSign Envelope ID: 1329BDA6-63C6-4222-8A36-123CE92404B2 Agenda Report August 17, 2021 Page 2 On June 19, 2018, the City Council approved the Second Amendment to the Agreement, allowing Families Forward to convert fourteen (14) homeless transitional units in Irvine to permanent affordable housing units for the homeless. HUD had 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. As a result, Families Forward determined transitional housing was not the most efficient use of their resources. On July 1 , 2021 , OC Gateway to Housing (Gateway), a party to the Homeless Assistance Agreement, merged with Families Forward and Gateway's six (6) homeless transitional units became Families Forward assets. As noted above, Families Forward's strategy is to serve homeless families by moving them into permanent housing quickly and, as a result, they are requesting to convert these 6 units from transitional housing units to permanent affordable housing for the homeless. Families Forward has agreed to give priority to Tustin homeless families when units become available. Staff, working with the City Attorney, will amend the Affordable Housing Documents recorded against these 6 units to reflect the change in ownership and use. 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 Third Amendment to the Agreement. i cuSigned by: DocuSigned by: re�r�oo��... or�eseas ... Christopher Koster Jerry Craig Director of Economic Development Deputy Director of Economic Development Attachment: Third Amendment to the Homeless Assistance Agreement DocuSign Envelope ID: 1329BDA6-63C6-4222-8A36-123CE92404B2 THIRD AMENDMENT TO HOMELESS ASSISTANCE AGREEMENT FOR THE MARINE CORPS AIR STATION - TUSTIN THIS THIRD AMENDMENT TO HOMELESS ASSISTANCE AGREEMENT ("Amendment") is made and entered into on the 17th day of August, 2021 (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. OC Gateway to Housing (formerly known as Orange Coast Interfaith Shelter) (hereinafter "OC Gateway") 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 Orange Coast Interfaith Shelter on October 11, 1996, pursuant to the Community Redevelopment Act of 1994,as amended. In accordance with that Agreement, OC Gateway to Housing agreed, among other things, to: ...operate six family units [fort of transitional housing...[to]provide long term shelter (12 to 24 month) to previously homeless families with children." B. 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: "...operate 14 units .... Families Forward's program would meet the emergency and transitional housing needs offamilies with children who are homeless due to a short or temporary financial incapacity due to personal, economic or medical crisis." C. Since its inception, Families Forward owned and operated 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. 1613047.1 DocuSign Envelope ID: 1329BDA6-63C6-4222-8A36-123CE92404B2 D. 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. E. From 2008 to 2012, Families Forward operated both Transitional Housing and Rapid ReHousing programs simultaneously to serve families in need. F. 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. G. 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. H. 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. L 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. J. Based on the Forgoing, on June 21, 2018, the City of Tustin,Local Redevelopment Authority for MCAS Tustin ("LRA"), and Families Forward entered into that certain Second Amendment to Homeless Assistance Agreement authorizing the conversion of Families Forward's 14 units from Transitional Housing to Affordable Housing for homeless, low income families ("Second Amendment"). K. On July 1, 2021, OC Gateway merged with Families Forward and ownership of the six family units (the "Gateway Units") will transfer to Families Forward upon approval of the Third Amendment. L. Similar to the conversion of its 14 units in 2018 approved via the Second Amendment, Families Forward now wishes to convert the Gateway Units from Transitional Housing to Affordable Housing for homeless, very low income families with children. M. Section 1.3 of the Agreement states that a Provider shall provide"... shelter and 1613047.1 DocuSign Envelope ID: 1329BDA6-63C6-4222-8A36-123CE92404B2 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). 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 Second Revised Families Forward Program Description for the approved Orange Coast Interfaith Shelter Homeless Assistance Program Description contained on Page A-3 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 six condominium units as Permanent Affordable Housing for very low income families with children who are homeless or at risk of homelessness, in accordance with all other terms and conditions set forth in the Agreement. Families Forward shall grant priority to families with ties to the City of Tustin (e.g., residency, employment, and/or school enrollment, etc.) for housing in the six condominium units. 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»»»»»»»> 1613047.1 DocuSign Envelope ID: 1329BDA6-63C6-4222-8A36-123CE92404B2 IN WITNESS WHERE OF, the Parties have executed this Amendment effective as of the Effective Date shown above. CITY OF TUSTIN, LOCAL REDEVELOPMENT DATED: AUTHORITY FOR MCAS-TUSTIN ATTEST: Matthew S. West Erica N. Yasuda City Manager City Clerk APPROVED AS TO FORM: David E. Kendig 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 Irvine temporary Housing) By: By: Signature Signature Date: Date: HUMAN OPTIONS By: Signature Date: 1613047.1