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HomeMy WebLinkAbout2024-06-25 - AGENDA REPORTS - GRANT AGMT FAMILY PROMISE HOUSING PROJ NEWHALL AVEAgenda Item: 12 CITY OF SANTA CLARITA AGENDA REPORT CONSENT CALENDAR CITY MANAGER APPROVAL: Li ' DATE: June 25, 2024 SUBJECT: GRANT AGREEMENT WITH FAMILY PROMISE OF SANTA CLARITA VALLEY FOR THE RESOURCE CENTER AND INTERIM HOUSING PROJECT ON NEWHALL AVENUE DEPARTMENT: Community Development PRESENTER: Tracy Sullivan RECOMMENDED ACTION City Council: 1. Award a one-time grant to Family Promise of Santa Clarita Valley in the amount of $500,000 to complete the construction of its Resource Center and Interim Housing Project. 2. Effective Fiscal Year 2024-25, appropriate $190,762 to expenditure account 1009000- 516101 to provide reimbursement for eligible expenses for the Interim Housing Project; increase transfers into the General Fund (100) of which $115,762 will come from Housing Successor funds (100-600393), and $75,000 will come from Developer Fee funds (100- 600306). Increase transfers out accounts 3939500-710100 (Housing Successor) by $115,762 and 3069500-710100 (Developer Fee) by $75,000. 3. Authorize the City Manager or designee to execute a Grant Agreement with Family Promise and all other required documents, subject to City Attorney approval. BACKGROUND Family Promise of Santa Clarita Valley (Family Promise SCV) is a local branch of a national organization of more than 200 affiliates across 42 states. The organization's mission is to assist families and children experiencing homelessness by providing housing and support services. In late 2020, the City Council approved the transfer of City -owned property, located at 23652 Newhall Avenue, to Family Promise SCV for the future construction of a Resource Center and Interim Housing Project (Project). The facility will feature five new units, including an emergency overnight unit and four interim housing units. It will provide shelter for up to four families experiencing homelessness for stays of 30-90 days, with an additional unit available for Page 1 Packet Pg. 232 emergency use by one family. Besides offering shelter, the facility will also provide supportive services to help residents transition to permanent housing. Through Fiscal Year 2023-24, the City of Santa Clarita (City) has contributed a total of $722,527 in Measure H funding toward the Project in addition to the property donation. Despite this financial support, Family Promise SCV continues to face a funding gap that they are asking the City to help close. To facilitate the timely construction and utilization of the facility by families in need, staff recommends entering into a grant agreement with Family Promise SCV in the total amount of $500,000. On April 23, 2024, the City Council approved allocating $309,238 from the City's Fiscal Year 2024-25 Measure H funds to assist with the Prcject's construction. Staff additionally identified $115,762 in Housing Successor funds and $75,000 in Development Fee funds, which can be leveraged in support of the Project. Upon approval of the recommended actions, the City would issue funding to Family Promise SCV on a reimbursement basis. ALTERNATIVE ACTION Other action as determined by the City Council. FISCAL IMPACT Upon approval of the recommended actions, adequate budget will be available in Fiscal Year 2024-25 for the $500,000 Resource Center and Interim Housing Project grant and will be offset by $309,238 from Measure H funds (272-462101), $115,762 from Housing Successor funds (100-600393), and $75,000 from Developer Fee funds (100-600306). Page 2 Packet Pg. 233