Title
Amendment to Native American Connections, Inc.'s Nicholas Center Loan Agreement - Contract 133593
Description
Request authorization for the City Manager, or his designee, to amend Community Development Block Grant (CDBG) Loan Agreement 133593 between the City of Phoenix and Native American Connections, Inc. (NAC) to allow for transitional housing, emergency housing and/or permanent supportive housing for homeless youth, and to take all actions and execute all documents to complete the loan amendment.
Report
Summary
City Council Ordinance S-38630 was passed on April 4, 2012, to loan NAC $1,145,000 in CDBG funds for the acquisition of an existing transitional housing facility. Since that time, the facility has successfully assisted homeless youth by providing transitional housing with supportive services. NAC has maintained operations through awards from the U.S. Department of Housing and Urban Development's (HUD) Supportive Housing Program funds. However, in 2016, HUD substantially cut funding for transitional housing which has put this property at operational risk. NAC has a current operating grant that will sustain operations only through March 2017. To mitigate this risk, NAC has requested flexibility in the type of housing offered at the site for homeless youth. NAC's current contract with the City allows for transitional housing only. Amending the contract to also allow for emergency housing and/or permanent supportive housing for homeless youth will maximize NAC's ability to obtain financial support for their operations. The activities proposed are all eligible activities under the CDBG program. Supportive services will continue to be offered on site for homeless youth.
Financial Impact
There is no impact to the General Fund, and no additional funding will be added to the project.
Location
931 E. Devonshire Ave.
Concurrence/Previous Council Action
This item was heard at the Sustainability, Housing, Efficiency and Neighborhoods Subcommittee on March 21, 2017 and was approved by a vote of 4-0.
Department
Responsible Department
This item is submitted by Deputy City Manager Deanna Jonovich and the Housing Department.