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20240408 4.A Homelessness Subcommittee SR - final HOMELESSNESS SUBCOMMITTEE STAFF REPORT TO: THE HONORABLE HOMELESSNESS SUBCOMMITTEE FROM: BEN KIM, CITY MANAGER DATE: APRIL 8, 2024 SUBJECT: REPORT, DISCUSSION, AND DIRECTION REGARDING HOMELESSNESS SERVICES AND PROGRAMS BACKGROUND At the February 20, 2024 meeting, the Homelessness Subcommittee discussed ideas on how the City may further address homelessness with a focus on three subject matters: 1) Those at risk of falling into homelessness, 2) Supporting those who want assistance, and 3) Addressing those who do not want help. The goal was to brainstorm ideas and explore creative solutions. Below is a recap of the ideas discussed. 1) Risk of falling into homelessness. • City rent subsidy program. • Increase legal counsel services. Advertise services. • Stronger rent control. • Case management and service navigator. • Increase housing. • Construct affordable housing. • Construct senior affordable housing. • City zero-interest construction loan program. o Senior housing production o ADU production. • Expand ADU production/create an affordable ADU program. • Share info/data with school districts to identify those at risk. • Find out why at risk (e.g., lost home, moving, rent too high, lost job). • Advertise a list of social service resources on the City website and share it with local community partners. o Section 8 housing, food stamps, etc. • Ways to transition to shelter – home, if needed, short term. Homelessness Subcommittee April 8, 2024 Page 2 of 13 2) Support for homeless individuals who want help and case management programs. • City mobile home project. • Cooperative car beds. • Safe parking. • Provide shelter. o Own/operate facility. o Rent rooms/hotels/motels. o Joint effort with surrounding cities. • More engagement and support at schools (bus, food, etc.). • Jobs – more availability to get hired. • Bridge housing. • Affordable housing for seniors/TAY/veterans/families. • Permanent supportive housing with wrap-around services. • Increase case management (LA CADA or other organizations). • State/Fed funds for certain projects. Veterans, seniors, family, recovering addicts. o Set up internal accountability mechanisms for case management. • Advocate for more urgent streamlined delivery of services. o Putting homeless individuals at the front of the line. • Change zoning to encourage housing inventory. 3) How do we help those who do not want help. • CARE Court education for families. • Reoccurring and systemic program engagement. o Don’t give up. Keep offering resources. • Engagement with religious and service groups. • Workshops and education. • Recreational areas to be at and can offer support. • Designate/provide space (i.e. empty parking lot) for safe homeless encampments. • 5150 WIC-MET. o Behavioral crisis response team. • Leverage family/friend support if possible. DISCUSSION Subsequent to the brainstorming exercise, the subcommittee chose three to five topics for staff to research and gather information for further discussion, as follows: 1) Assist those at risk of falling into homelessness. a) Better direct to available services and resources. Homelessness Subcommittee April 8, 2024 Page 3 of 13 Current Status: Rosemead currently contracts with two service providers for those at risk of falling into homelessness: Fair Housing Rights Center which provides counseling, outreach, education, and legal services, and Family Promise which provides support for families experiencing housing instability and insecurity. Both services are funded with CDBG allocation at the maximum 15% annual allowance limit for the Public Services Category (with other programs including Senior Nutrition and Summer Youth Employment). The City further provides information on the website for housing resources with contacts to LA County Section 8 Rental Assistance, LA County Affordable Housing, Housing Authority of the City of Los Angeles, and 211 Los Angeles County. The website also includes homelessness resources to the San Gabriel Valley Landlord Incentives Program, Food Distribution Programs, LA-HOP.org outreach portal, Volunteers of America, Union Station Homeless Services, Hathaway-Sycamores Child and Family Services, WINGS DV Program, Stay Housed L.A. County, and United Way. Research Finding: While the City’s website includes many referrals, staff believes that this is an area that we can continue to improve. As an example, after the last Homelessness Subcommittee meeting, Subcommittee Member Garcia forwarded a referral to an organization called The People’s Project. Their mission is described as, “…making it easier for LA communities to take care of each other through rental assistance, food aid, childcare, financial counseling, and more.” Staff will continue to research additional resources available and update the website and engage in a social media campaign to enhance public engagement. b) City zero-interest construction loan program. Current Status: Rosemead currently has two construction “loan” programs funded with HUD HOME and CDBG funds. The Owner Occupied Home Improvement Program provides low- and moderate-income seniors (62+ years old) who own and occupy their home, a 0% interest rehabilitation improvement loan, where payment is deferred for 20 years. Every five years, 25% of the loan is forgiven with a full 100% forgiveness at the end of the 20-year term (becomes a grant). Rosemead also provides the Owner Occupied Rehabilitation Grant to assist eligible low- and moderate-income senior citizens or disabled persons a $20,000 grant for health and safety improvements. Both programs follow the HUD guidelines for program compliance. Rosemead also provides the Homeownership Assistance Program, which is funded by the HUD HOME and CDBG funds. Although it’s not a construction loan program, the program provides qualified applicants with a 0% interest rate and no monthly payment for a 20-year term. At the end of the 20-year term, the loan is forgiven (becomes a grant). However, if the affordability term is not met (e.g., cash-out refinance, sale of property, first mortgage default, death of homebuyer, etc.) the loan must be repaid with a Homelessness Subcommittee April 8, 2024 Page 4 of 13 share of the appreciation to the City. This program also follows the HUD guidelines for compliance. Research Finding: Staff consulted with the City Attorney’s Office on how a City funded 0% interest construction loan program could be developed. Such a program could work but based on State regulations, the project would most likely be subject to the prevailing wage rate increasing the construction costs approximately 25% to 30% (est.). The Attorney’s Office notes that such topic has been previously discussed in the State and found that the State of California Labor Code Section 1720 would apply. The salient point is that a 0% interest is below market rate and would be considered a subsidy (“paid for in whole or in part out of public funds”). This would be applicable to large-scale housing projects and ADUs. A project where this could work is if a project is already subsidized with funds that require prevailing wage (e.g., affordable housing projects with Federal funds, tax credits, etc.). The City’s 0% interest rate loan would piggyback to the funding source. c) City-operated rent subsidy program. Current Status: The Los Angeles County Development Authority (LACDA) administers the City’s Housing Choice Voucher Program, which includes the Section 8 Program. Currently, LACDA is providing rental assistance to approximately 347 Rosemead families. Research Finding: The City could augment the LACDA program by establishing an independent City funded and operated rent subsidy program. CDBG funds may be used (three-month subsidy limit per household) and within the 15% maximum Social Services category cap of the annual allocation. That is, Rosemead receives annually about $700,000 CDBG funds and 15% represents approximately $105,000. Currently, Rosemead allocates 15% to four programs: Senior Nutrition, Summer Youth Employment, Housing Rights Center, and Family Promise. As such, we would need to reduce or eliminate one or more of the four programs to fund the rent subsidy program. Alternatively, the City could allocate unrestricted general funds and/or seek Federal and State grants. In order to implement the program, staff anticipates a need for two new positions to run the program effectively. d) Expand the ADU regulations. Current Status: On September 8, 2020, the City adopted an ordinance to comply with the new State provisions for accessory dwelling units. Using an existing single-family home lot as an example, the property can add one detached or attached ADU and one Junior Homelessness Subcommittee April 8, 2024 Page 5 of 13 ADU (JADU) for a total of three units. JADU is created out of the space within the existing primary single-family home and may total up to 500 square feet in size. Research Finding: Rosemead is following and is in compliance with the State’s ADU guidelines. Rosemead cannot be more restrictive (not allowing ADU or JADU), but can be more flexible and allow additional ADU units. A Code Amendment adoption is required to amend Section 17.30.190 (Accessory Dwelling Units) of the RMC. 2) Support for homeless individuals who want help. a) Increase the LA CADA’s contract to increase case management personnel. Current Status: In July 2023, the City entered into a contract with the Los Angeles Centers for Alcohol and Drug Abuse (LA CADA) for homeless outreach and case management services. The term of the contract is for four years in the amount of $1,213,829 (about $303,000 annually) and is funded with the HUD HOME-ARP allocation. The Rosemead’s LA CADA team consists of two, full-time homeless outreach navigators. Services include emergency housing, transitional housing, and supportive services, including linkage to healthcare, permanent housing, and workforce development (https://www.lacada.com). LA CADA’s resources include over 550 multidisciplinary behavioral healthcare workers, including additional specialists, physicians, psychiatrists, nurse practitioners, RNs, LVNs, state-licensed clinical therapists, registered SUD counselors, navigators, case managers, and dedicated peer mentors with lived recovery experience. Research Finding: The simple answer is “yes”. LA CADA could provide additional case management staffing. LA CADA anticipates each case manager would add approximately $80,000 annually to the contract, to be adjusted for inflation. b) Build affordable housing. Seek State and Federal affordable housing funds. Current Status: Rosemead has struggled, not for lack of effort, in building affordable housing because of three primary barriers: land inventory, high land cost, and funding. We have, however, made progress toward building four affordable veteran homes with the Cassia development (37 total units at NEC Walnut Grove Avenue & Mission Drive). To build the four affordable units, the City contributed approximately $300,000 HOME funds to each unit ($1,200,000 total), approximately $400,000 from the buyer’s first mortgage (bank loan), and developer’s subsidy (writedown) of approximately $300,000. Rosemead continues to offer the Home Ownership Assistance Program (as discussed previously) to increase affordable housing inventory. Additionally, Rosemead recently joined the San Gabriel Valley Regional Housing Trust, a joint powers authority to fund Homelessness Subcommittee April 8, 2024 Page 6 of 13 and finance the construction of homeless housing, and extremely low, very low, and low- income housing projects. Research Finding: At the Federal and State level, there are various grants to increase the inventory of affordable units (ownership, rental, and temporary). As a reference, the State HCD maintains a website with funding resources. Rosemead retains three lobbyists (Turch for Federal level, and Lucien Partners and Balance Public Relations for State level) to assist in part securing funding earmarks. Staff requested input from Lucien and Balance, and their analysis is included in Attachment A. Building city affordable housing project is an extremely complex field requiring knowledge and expertise of rules and regulations, entitlement, construction and construction management, program and funding auditing, environmental clearance, etc. Staff anticipates a need for one new position at a housing manager level to implement. c) Allow housing on the City’s major arterial streets. Current Status: Housing on major arterial streets is allowed on a limited basis as follows: • Mixed-use development as part of Garvey Avenue Specific Plan. • Housing-only developments as part of Freeway Corridor Mixed-Use Overlay Plan – Specific areas of Del Mar Ave., San Gabriel Blvd., Walnut Grove Ave., Rosemead Blvd. • AB 2011 and SB 6 – Affordable housing in commercial or retail zones. Research Finding: As part of the Housing Plan of the 6th Cycle Housing Element compliance, the Commercial Task Force Subcommittee is currently reviewing the Zoning Code and will be making recommendations to the City Council. d) City bridge housing program using hotels and motels; short-term stay (e.g., 7-days). Current Status: Rosemead currently does not provide a direct short-term bridge housing program. It’s noted, however, that the City contracts with Family Promise which provides temporary housing to families that are facing housing insecurity. Research Finding: Discussed in item 1(c), above. The City could allocate unrestricted general funds and/or seek Federal and State grants. In order to implement a city-run program, staff anticipates a need for two new positions to run the program effectively. Homelessness Subcommittee April 8, 2024 Page 7 of 13 e) Workforce development and job search training. Current Status: Rosemead currently refers workforce development to Los Angeles County Workforce Development and Los Angeles County Economic Development Corporation (LAEDC). At the most recent Washington D.C. advocacy trip attended by Mayor Ly and staff, productive discussions were held with Federal representatives to create and fund workforce development efforts in Rosemead and to partner up with Rosemead local organizations such as University of the West and Pasadena City College (PCC). Research Finding: Staff believes that there is a great opportunity to create a workforce development program by partnering with local and existing resources, such as University of the West and PCC at its proposed new campus at Rosemead Blvd. and Valley Blvd. The Rosemead Chamber of Commerce may also be a valuable resource. Staff will continue the dialog with Federal representatives and our local organizations in this effort. 3) How do we help those who do not want help. a) Increase LA CADA’s contract to increase case management personnel. Systemic and re- engagement until the homeless person accepts services. Current Status: Discussed, item 2(a) above. Research Finding: Discussed, item 2(a) above. b) Coordinate with local religious and service groups. Current Status: Rosemead currently funds the Asian Youth Center (AYC) that serves low-income and at-risk youth families with CDBG-CV funds. AYC provides education, employment, and social services as well as emergency food distribution for low-income families. AYC began in 1989 as a project of the United Way after its Asian Task Force found a critical lack of services for Asian youth. In the last 10+ years, AYC has expanded its scope to serve non-Asian youth and families as well. Research Finding: In the early part of each calendar year (around January or February), Staff releases the Notice of Funding Availability (NOFA) to service organizations as part of the CDBG Annual Action Plan process. A total of five applications were received this year from AYC, Fair Housing Foundation, Family Promise, Heart of Compassion, and Wealth by Health. Staff will continue its efforts to expand participation and inclusion of other applicable organizations. Homelessness Subcommittee April 8, 2024 Page 8 of 13 c) Seek engagement from the individual’s family and friends. Current Status: LA CADA focuses on family unification efforts and have found that it is more successful for those who are recently homeless. However, due to family division issues, it may not be successful for for long-term homelessness. LA CADA staff have personally driven those accepting services as far as San Diego and Kern County, and have coordinated longer-distance travel arrangements. LA CADA is cautious and verifies participants before making arrangements to ensure there is valid family unification and not someone wanting transportation for other reasons. Research Finding: Unfortunately, family unification success is a very small percentage of those accepting services. To date, there has not been successful family unification in Rosemead. However, it is a focus of LA CADA’s efforts. STAFF RECOMMENDATION It is recommended that the Homelessness Subcommittee discuss and provide direction. PUBLIC NOTICE PROCESS This item has been noticed through the regular agenda notification process. Attachment A – Summary of funding opportunities Homelessness Subcommittee April 8, 2024 Page 9 of 13 Attachment A Funding Opportunities Lucien Partners Attached is a brief overview of some of the more notable programs that are important to building affordable hosuing in the State of California. This is not intended to be exhaustive because there are more than 15-20 housing programs, of which only a handful receive dedicated funding, if any... But a more exhaustive analysis can be prepared upon request. Aside from this list, there are discussions surrounding multiple General Obligation Bonds on housing, which are not listed in this memo, but are present in the Legislature. Balance Public Relations In preparation for your committee meeting and considering housing items with a focus on seniors and veterans, it's crucial to note California's recent initiatives addressing housing affordability and homelessness, particularly catering to seniors and veterans. California boasts several state programs aimed at providing affordable housing for these groups. For instance, the Veterans Housing and Homelessness Prevention Program (VHHP) offers funding for affordable housing developments specifically targeted towards veterans, aiming to prevent homelessness among them. Similarly, the Senior Housing Program (SHP) focuses on providing affordable housing specifically for seniors aged 62 and older, though not exclusive to veterans, they can benefit from it. Additionally, federal programs like the Low-Income Housing Tax Credit (LIHTC) and the HOME Investment Partnerships Program (HOME) play significant roles in financing affordable housing projects, including multifamily housing initiatives. Furthermore, while there are separate goals for affordable housing and homeless housing initiatives, California manages funds for both as distinct objectives, tailored to the needs of their respective populations. For instance, LIHTC primarily targets financing the construction and rehabilitation of affordable rental housing units for low-income households, not necessarily homeless. On the other hand, programs like the Emergency Solutions Grants (ESG) Program focus on providing funding to address homelessness directly, improving emergency shelter and housing services for homeless individuals and families. Understanding these distinctions and the availability of state and federal funds is crucial for effectively addressing housing issues for seniors, veterans, and other vulnerable populations in California. Homelessness Subcommittee April 8, 2024 Page 10 of 13 Here's some relevant information based on your inquiries: 1. Preference to Seniors and Veterans: The state may have programs or policies in place to prioritize seniors and veterans in affordable housing initiatives. These preferences could manifest in various forms, such as prioritized access to housing vouchers, supportive housing programs, or designated affordable housing units within communities. California has several state programs aimed at providing affordable housing for seniors and veterans. Some of these programs include: • Veterans Housing and Homelessness Prevention Program (VHHP): This program provides funding for affordable housing developments specifically targeted towards veterans. It aims to prevent homelessness among veterans and improve access to stable housing. Funding may be used for construction, acquisition, rehabilitation, or preservation of affordable housing units. • Multifamily Housing Program (MHP): Although not exclusively for seniors and veterans, the Multifamily Housing Program provides financing for the development of affordable rental housing units. Projects funded through MHP often include units targeted towards seniors and may prioritize veterans as well. • CalHFA Veterans Housing Home Loan Program: This program offers low- interest home loans to eligible veterans in California, making homeownership more accessible to them. While it doesn't directly fund affordable housing developments, it supports veterans in securing affordable housing options. • Senior Housing Program (SHP): SHP provides funding for the development of affordable housing specifically for seniors aged 62 and older. While not exclusive to veterans, seniors who are veterans can benefit from this program. • CalVet Home Loans: California Department of Veterans Affairs (CalVet) offers home loans with competitive interest rates to eligible veterans purchasing homes in California. While not a direct affordable housing program, it assists veterans in accessing housing options. 2. Funding for Affordable Housing: California allocates funds for both affordable housing for low-income families, seniors, and veterans, as well as initiatives focused on providing housing for the homeless population. These funds may come from state, federal, and local sources, and they often have specific guidelines and eligibility criteria. Regarding past allocations for these programs, detailed information can typically be found in annual reports, budget documents, or programmatic updates published by the California Department of Housing and Community Development (HCD) of which we are looking into as well. Note however that the Multifamily Housing Program (MHP) in California aims to provide financing for the development of affordable rental housing units. While allocations can vary annually based on budget appropriations and program priorities, here are some programs that fall under the umbrella of MHP: Homelessness Subcommittee April 8, 2024 Page 11 of 13 • Affordable Housing and Sustainable Communities (AHSC) Program: AHSC is a state initiative that combines funding from various sources, including MHP, to support affordable housing projects that also promote transit-oriented development, reduce greenhouse gas emissions, and improve public health outcomes. MHP funds may be allocated to AHSC projects that include multifamily affordable housing components. • No Place Like Home (NPLH) Program: NPLH is designed to address homelessness by providing funding for the development of permanent supportive housing for individuals with mental illness who are homeless or at risk of homelessness. MHP funds may be allocated to NPLH projects that include multifamily housing components. • Infill Infrastructure Grant Program (IIG): The IIG program provides funding to support infrastructure improvements necessary for infill development projects, including multifamily affordable housing developments in infill locations. MHP funds may be allocated to support the housing component of these projects. • Local Housing Trust Fund Matching Grant Program: This program provides matching grants to local housing trust funds to support the development of affordable housing, including multifamily rental housing. MHP funds may be allocated to support the creation or expansion of local housing trust funds, which in turn support affordable housing development. There are few examples of federal programs that support affordable housing development, including multifamily housing projects. Each program has its own eligibility criteria, application process, and funding mechanisms. Developers and organizations interested in accessing federal funding for affordable housing should familiarize themselves with the specific requirements of each program and work closely with relevant federal agencies and state/local housing authorities. Some of the key federal programs include: • Low-Income Housing Tax Credit (LIHTC): LIHTC is the primary federal program for encouraging the development of affordable rental housing for low- income households. It provides tax incentives to developers and investors in affordable housing projects. These credits are allocated to state housing finance agencies, which then distribute them to developers through a competitive process. • HOME Investment Partnerships Program (HOME): HOME provides formula grants to states and localities to fund a wide range of affordable housing activities, including the construction, rehabilitation, and acquisition of rental housing. HOME funds can be used in conjunction with other financing sources, including LIHTC, to support multifamily affordable housing projects. While it primarily focuses on the production and preservation of affordable rental housing, HOME funds can also be used for other housing-related purposes, such as homeowner rehabilitation, down payment assistance, and tenant-based rental assistance. Homelessness Subcommittee April 8, 2024 Page 12 of 13 • Community Development Block Grant (CDBG) Program: CDBG provides flexible funding to states and localities to address a variety of community development needs, including affordable housing. While not exclusively dedicated to housing, CDBG funds can be used for activities such as the acquisition and rehabilitation of affordable rental properties and the provision of rental assistance to low-income households. • Section 8 Housing Assistance Payments Program: Administered by the Department of Housing and Urban Development (HUD), the Section 8 program provides rental assistance to low-income individuals and families through vouchers. Property owners participating in the program receive subsidies on behalf of eligible tenants, making rental units more affordable. • Capital Magnet Fund (CMF): The CMF provides competitive grants to finance affordable housing activities, including the development, preservation, rehabilitation, or purchase of affordable housing for low-income households. Funds awarded through CMF can be used to support multifamily housing projects. • HOME Investment Partnerships Program (HOME): HOME provides formula grants to states and localities to fund a wide range of affordable housing activities. • Emergency Solutions Grants (ESG) Program: ESG provides funding to states, local governments, and nonprofit organizations to address homelessness and improve emergency shelter and housing services for homeless individuals and families. While primarily focused on emergency shelter and supportive services, ESG funds can also be used for homelessness prevention activities, including rental assistance and housing relocation assistance. 3. Separate Goals for Affordable Housing: While there are funds available for both affordable housing and homeless housing initiatives, they are often managed as separate goals due to the different populations they serve and the distinct strategies required to address their needs effectively. Some examples illustrate how California manages funds for affordable housing and homeless housing initiatives as separate goals, each with its own strategies tailored to the needs of the populations they serve. • Low-Income Housing Tax Credit (LIHTC): California allocates LIHTC to developers and investors to finance the construction and rehabilitation of affordable rental housing units for low-income households. These projects typically target individuals and families who are not homeless but struggle to afford housing due to financial constraints. • Multifamily Housing Program (MHP): Administered by the California Department of Housing and Community Development (HCD), MHP provides financing for the development of affordable rental housing units. These projects aim to increase the supply of affordable housing for low to moderate-income households who are not homeless. Homelessness Subcommittee April 8, 2024 Page 13 of 13 • Senior Housing Programs: California has various programs dedicated to providing affordable housing options for seniors, such as the Senior Housing Program (SHP). These programs focus on addressing the housing needs of elderly individuals who may be at risk of homelessness due to financial insecurity or lack of suitable housing options. • Veterans Housing Programs: California's Veterans Housing and Homelessness Prevention Program (VHHP) supports the development of affordable housing specifically for veterans. This program aims to address the housing needs of veterans who may be at risk of homelessness or struggling to afford housing due to financial challenges. 4. Availability of State and Federal Funds: California receives funding from various federal programs aimed at addressing housing affordability and homelessness. Additionally, the state may allocate its own funds for similar purposes. These funds may support construction, rehabilitation, or acquisition of affordable housing units. 5. Construction Readiness: The readiness requirements for accessing state and federal funds for affordable housing projects may vary. In some cases, funds may be allocated for projects that are already construction-ready, while in others, funding may be available for planning, pre-development, or construction stages.