Title
Retroactive Authorization to Apply for, Accept and Disburse Arizona Department of Housing Grant Funding (Ordinance S-53110) - District 7
Description
Request retroactive authorization for the City Manager, or his designee, to apply for Arizona Department of Housing (ADOH) grant funding in an amount not to exceed $500,000, enter related grant agreement and security instruments, and take any other action necessary or appropriate to fulfill the purposes of this request. Further request an exception of the indemnity, limitation of legal redress and assumption of liability provisions of Phoenix City Code section 42-18. Further request to authorize the City Treasurer to accept, and the City Controller to disburse, all funds related to this item for the life of the grant.
Report
Summary
Background
ADOH has awarded State Housing Trust Funds (SHTF) for critical capital improvement projects at the Safe Outdoor Space (SOS). Capital improvement projects include installation of restroom and shower trailers, hand dryers, automatic soap dispensers and misting fans. Funds will also support workforce programming which includes program administration. The SOS was established in November of 2023 to provide an alternative solution to indoor congregate shelter. The SOS has 200 sites for up to 300 individuals and provides on-site services such as weather relief, three meals daily, case management and access to physical and mental health services.
A match is not required; however, a non-refundable administrative fee of $1,600 is due to ADOH before executing the funding agreement.
ADOH requires SHTF grantees who use funds for facility improvements to enter into a Deed of Trust or other security instrument ensuring use of the site for authorized purposes for five years. ADOH also requires grantees to agree to indemnification, assumption of liability, and arbitration language which conflicts with Phoenix City Code section 42-18, prompting the request for a waiver of these provisions.
This request is being made retroactively due to the brief application window and insufficient time to obtain authorization before the submission deadline.
Contract Term
The grant term will begin on or about September 1, 2026. The term of ADOH security instrument will run for five years.
Financial Impact
Funding in an amount up to $500,000 will be provided by ADOH, no match is required. The City’s non-refundable administrative fee will not exceed $1,600. Funding for the administrative fee is available in the Office of Homeless Solutions’ operating budget.
Locations
Safe Outdoor Space, 1537 W. Jackson Street
Council District: 7
Department
Responsible Department
This item is submitted by Deputy City Manager Gina Montes and the Office of Homeless Solutions.