Title
Amend Ordinance to Add Federal HOME-ARP Funding for the Salvation Army to Expand Family Emergency Shelter Services (Ordinance S-52469) - District 8
Description
Request to authorize the City Manager, or his designee, to amend Ordinance S-49878 to add up to $2 million in federal United States Department of Housing and Urban Development (HUD) HOME Investment Partnerships American Rescue Plan (HOME-ARP) Program funds with the Salvation Army, or a City-approved nominee, to expand family emergency shelter services. Additionally, request to take all actions and execute all documents to complete the loan. Authorization is also requested for the City Controller to disburse the funds for the life of the contract. There is no impact to the General Fund.
Report
Summary
The Salvation Army currently operates a family emergency non-congregate shelter which houses families experiencing homelessness for up to 120 days. The shelter provides housing, meals, case management, vocational counseling, crisis counseling, life skills classes, and other activities for 24 families.
The Salvation Army proposes to add an additional residential building to the Salvation Army emergency family shelter campus. The new building would expand the capacity of the shelter by 12 rooms, with beds for as many as 60 individuals, increasing the total number of families served at any one time to 36. It is expected that the additional rooms, over the course of a year, will serve approximately 173 families, including an estimated 267 children.
The Housing Department is seeking approval for an additional allocation of up to $2 million in HOME-ARP funding, bringing the total City commitment of HOME-ARP funding to $8 million. The Salvation Army requested additional funding to address an increase in development, construction, and labor costs. The total project cost is $10 million.
Contract Term
The term of the contract will begin around January 2026 and run for a minimum of 15 years after expansion completion.
Financial Impact
There is no impact to the General Fund. HOME-ARP is a federally funded program. Funding is budgeted in the Housing Department’s Capital Improvement Program budget. Loan execution is anticipated for Fiscal Year 2025-26 and the loan will be paid to the developer during the construction period.
Concurrence/Previous Council Action
- City Council approved Ordinance S-49186 on November 16, 2022, to enter into an agreement for $6 million with the Salvation Army to expand the family emergency shelter utilizing HUD Community Development Block Grant (CDBG) funds.
- City Council approved Ordinance S-49878 on June 14, 2023, to enter into an agreement for up to $6 million replacing federal CDBG funding with federal HOME-ARP Program funding.
Location
2707 E. Van Buren Street
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Manager Gina Montes and the Housing Department.