Title
American Rescue Plan Act Reallocation Funds - The Moreland, XWings, and Affordable Housing and Homelessness Projects
Description
Request to authorize the City Manager, or his designee, to allocate $21.2 million in American Rescue Plan Act (ARPA) reallocated funds for The Moreland project, XWing Non-Congregate Shelters, and hotel acquisitions. Funding is available through the City's allocation of the ARPA and will be added to the Affordable Housing and Homelessness Projects programs of the Council-approved strategic plan.
Report
Summary
As presented in the Dec. 8, 2022, General Information Packet, staff is reviewing unused, underspent, and reprioritized ARPA funding. This review resulted in identifying ARPA funds totaling approximately $21.2 million that can be repurposed. Staff has identified three projects which can address immediate needs for homelessness and affordable housing using these repurposed funds.
The Moreland
Staff requests approval to reallocate $4 million to fully fund The Moreland project Phase I and add an additional 132 units to the affordable supply in the City of Phoenix. The Housing Department, through gap financing, is using $6 million of previously allocated ARPA funding to complete The Moreland project Phase I, a City co-development project with Native American Connections. This project will provide 132 units in downtown Phoenix. The current $6 million allocation does not cover the complete $10 million financing gap for the first phase of the project, so this $4 million will close the funding gap for Phase I.
XWing Non-Congregate Shelter Project
Staff requests approval to reallocate $5.5 million for this project to increase the supply of non-congregate shelter units in the City. A top priority of the City is to find creative solutions to address homelessness as rapidly as possible. Adapting shipping containers to become non-congregate shelter units is a unique, efficient solution and staff recommends installing four refurbished shipping container pods designed in the shape of an ‘X’ to create private sleeping areas at the city-owned site at 3000 S. 22nd Ave. Each XWing consists of four 40-foot shipping containers that can sleep up to 20 people in a 5 by 8 private space. The site will also contain Sprung Structures that will be used for congregate shelter, communal spaces, bathrooms and showers, shaded outdoor areas, amenities for pets, storage, laundry, and other amenities.
Hotel Acquisition and Renovation
Staff requests approval to reallocate $11.7 million for the purchase and renovation of a hotel to support the City's efforts to assist residents experiencing homelessness. The acquisition and renovation of a hotel will provide additional beds and potential affordable housing resources.
Concurrence/Previous Council Action
The City Council previously approved the ARPA Strategic Plan during the June 8, 2021, and June 7, 2022, Policy Sessions.
Department
Responsible Department
This item is submitted by City Manager Jeffrey Barton and the City Manager's Office.