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HomeMy WebLinkAbout2026-06-09 - AGENDA REPORTS - FY2026-27 MEASURE A ALLOCATIONO Agenda Item: 8 CITY OF SANTA CLARITA .` AGENDA REPORT CONSENT CALENDAR CITY MANAGER APPROVAL: DATE: June 9, 2026 SUBJECT: AUTHORIZATION TO AMEND AGREEMENT WITH THE COUNTY OF LOS ANGELES AND APPROVE FUNDING USES FOR FISCAL YEAR 2026-27 MEASURE A LOCAL SOLUTIONS FUND ALLOCATION DEPARTMENT: Community Development PRESENTER: Masis Hagobian RECOMMENDED ACTION City Council: Amend contract with Los Angeles County and approve funding uses for the Measure A Local Solutions Funds in the amount of $531,272 to be distributed as follows: $251,726 to Family Promise for emergency rental assistance to families experiencing or at risk of homelessness, $251,726 to Bridge to Home to support continued operations of its interim housing site and navigation services; and $27,820 for the Homeless Services Intern to support administration of the Santa Clarita Valley Task Force on Homelessness. 2. Increase revenue account 273-462101 (Measure A Miscellaneous Revenue) by $531,272 and appropriate $27,820 to expenditure account 2733207-500201 (Measure A Homeless Initiative PTS) and $503,452 to expenditure account 2733207-516101 (Measure A Homeless Initiative Contractual Services). 3. Authorize the City Manager or designee to execute all contracts and associated documents, subject to City Attorney review. BACKGROUND In November 2024, Los Angeles County (County) voters approved Measure A, establishing a permanent one-half percent sales tax to fund homeless services and affordable housing development. Measure A replaced the prior Measure H quarter -percent sales tax and took effect on April 1, 2025. Measure A is estimated to generate approximately $1.1 billion annually. Page 1 Packet Pg. 103 O Pursuant to Measure A, revenues are to be distributed as follows: 60 percent to comprehensive homeless services and homelessness solutions innovations; 36 percent to the Los Angeles County Affordable Housing Solutions Agency (LACAHSA); 3 percent to the Los Angeles County Development Authority (LACDA) to support local housing production; and 1 percent to fund data collection, research, and accountability initiatives. Local Solutions Fund Of the 60 percent dedicated to homeless services, Measure A requires that at least 15 percent, approximately $97 million, be set aside for the Local Solutions Fund (LSF). The LSF, which also existed under Measure H, is a designated pool of funding that is distributed to cities, councils of governments, and the County for unincorporated areas. The LSF is designed to support programs that demonstrate measurable outcomes toward addressing homelessness. Measure A specifies that the LSF be distributed via a formula based on the Point -in -Time (PIT) count required by the United States Department of Housing and Urban Development (HUD) and/or similar methods as decided by the Los Angeles County Board of Supervisors (Board of Supervisors) with input from cities within the County. On March 25, 2025, the Board of Supervisors approved an LSF distribution formula that incorporates a multi -year average of the two most recent PIT homelessness counts and American Community Survey (ACS) data. Prior Use of LSF Funds Under Measure H, the City dedicated its LSF allocation primarily to the construction of a new interim housing facility and resource center operated by Family Promise of Santa Clarita Valley (Family Promise), which celebrated its grand opening in November 2024, and added four affordable housing units and an emergency overnight unit. Additionally, the City has leveraged its LSF allocation to support the position of a Homeless Services Intern, who has been instrumental in implementing the 2018, 2022, and 2025 Community Action Plans to Combat Homelessness, adopted by the Santa Clarita Valley Community Task Force on Homelessness. Fiscal Year 2025-26 marked the first year of funding under Measure A. The City received a total LSF allocation of $476,145. This funding was awarded by the City Council on July 8, 2025, and was primarily distributed between the City's two main homeless service providers, Family Promise and Bridge to Home. During this grant period, Bridge to Home has successfully placed 12 individuals into permanent housing and provided housing navigation services to 25 individuals. Additionally, Family Promise has assisted 76 households through rental assistance, helping to prevent homelessness and support housing stability. Fiscal Year 2026-27 LSF Allocation and Recommended Uses The City has been allocated $531,272 in LSF funding for FY 2026-27. Upon review of the eligible uses of LSF funds and building upon the successes of the current year, the recommendation is to allocate the majority of the FY 2026-27 allocation between the City's two largest homeless services providers: Family Promise and Bridge to Home. Specifically, it is recommended that $251,726 be granted to Family Promise to provide emergency rental assistance and financial support to families at imminent risk of homelessness. The same amount Page 2 Packet Pg. 104 O is recommended for Bridge to Home to support continued operations of the interim housing site, which includes 69 beds dedicated to adults, and to assist with housing navigation services. The remaining $27,820 is proposed to fund the Homeless Services Intern position, which will continue to facilitate the implementation of the 2025 Community Action Plan to Address Homelessness. ALTERNATIVE ACTION Other action as determined by the City Council. FISCAL IMPACT Upon approval of the recommended actions adequate funds will be available in 2733207-500201 (Measure A Homeless Initiative PTS) and 2733707-516101 (Measure A Homeless Initiative Contractual Services) to support the amended contract with the County of Los Angeles. ATTACHMENTS Agreement Amendment (available in the City Clerk's Reading File) Page 3 Packet Pg. 105 FUNDING AGREEMENT BETWEEN COUNTY OF LOS ANGELES AND CITY OF SANTA CLARITA FOR LOCAL SOLUTIONS FUND CONTRACT NUMBER: HI-25-026 AMENDMENT ONE THIS AMENDMENT ONE is made and entered into this by and between and COUNTY OF LOS ANGELES (hereinafter referred to as "County"), CITY OF SANTA CLARITA (hereinafter referred to as "City" or "Local Jurisdiction") The County and Local Jurisdiction shall collectively be referred to as "Parties". RECITALS: WHEREAS, reference is made to that certain document entitled "FUNDING AGREEMENT BETWEEN COUNTY OF LOS ANGELES AND CITY OF SANTA CLARITA FOR LOCAL SOLUTIONS FUND," dated July 21, 2025, and identified as County Contract No. HI-25-026, together with any amendments thereto (collectively, the "Contract" or "Agreement"), which was entered into by the Chief Executive Office, on behalf of the County, and Local Jurisdiction; WHEREAS, on November 4, 2024, the voters of Los Angeles County approved the Affordable Housing, Homelessness Solutions, and Prevention Now Transactions and Use Tax Ordinance ("Measure A" or the "Ordinance"), a one-half cent sales tax countywide, to fund critical programs designed to reduce and prevent homelessness within the County; WHEREAS, the County has received a portion of the proceeds from the tax imposed by Measure A for Comprehensive Homelessness Services, the Local Solutions Fund, and Homelessness Solutions Innovations which it distributes to eligible programs and services in accordance with Measure A; WHEREAS, pursuant to Measure A, the County shall allocate funds from the Local Solutions Fund to cities, councils of governments, and/or the County on behalf of its unincorporated areas; WHEREAS, on March 25, 2025, the County Board of Supervisors ("Board"), in consultation with cities within the County, determined that Formula 4, based on 90% of the multi -year average point - in -time count and 10% of the American Community Survey proxy data, is the appropriate method for distributing Local Solutions Fund to cities, councils of governments, and to the County on behalf of its unincorporated areas; FUNDING AGREEMENT FOR LOCAL SOLUTIONS FUND CONTRACT NO. HI-25-026, AMENDMENT ONE WHEREAS, services and programs funded by the Local Solutions Fund shall support a variety of services and programs aimed at addressing homelessness, including but not limited to physical and mental health care, emergency housing, permanent housing, job counseling, substance use disorder treatment, short-term rental subsidies, and other related services, as well as the collection and analysis of data to assess the effectiveness of such services and programs; WHEREAS, services and programs funded by Local Solutions Fund shall contribute to achieving the five outcome goals outlined in Measure A by demonstrating measurable progress from baseline metrics toward target metrics ("Metrics") as adopted by the Board on March 25, 2025; WHEREAS, services and programs funded by the Local Solutions Fund must align with the purposes enumerated in Measure A and the Regional Plan adopted by the Board on March 25, 2025, which sets goals and objectives to reduce homelessness and expand affordable housing in accordance with Measure A; WHEREAS, services and programs funded by the Local Solutions Fund shall adhere to best practices for the standardization of care, including but not limited to facilitating connections to behavioral and mental health services, medical care, and other services, and create connections to mainstream safety net programs supported by County, State, and federal funds, including connections to medical and mental health care and other entitlement programs; WHEREAS, the Local Jurisdiction agrees to perform its obligations under this Agreement in a manner consistent with and supportive of the goals and purposes outlined in Measure A, and the Metrics, Regional Plan, and best practices for the standardization of care; WHEREAS, the Parties entered into this Agreement to formalize the allocation of Measure A funds, which is approved by the Board annually, establish accountability measures, and ensure the effective use of Measure A funds to achieve the stated goals in Measure A to prevent and reduce homelessness and increase access to affordable housing, subject to all the conditions required by Measure A; WHEREAS, on April 1, 2025, the Board directed the implementation of a new department, the Department of Homeless Services and Housing (HSH), dedicated to serving people who are experiencing or at risk of homelessness; effective January 1, 2026; WHEREAS, on November 18, 2025 the Board authorized the Director of HSH, or designee, in consultation with County Counsel, to enter into, execute, amend, or terminate any and all agreements and documents including new or existing agreements, required or deemed necessary or appropriate for the administration, allocation, and distribution of the County's portion of the Measure A funds, including the allocation of Local Solutions Funds to cities, councils of governments, and the County on behalf of its unincorporated areas, with such authority effective January 1, 2026; and WHEREAS, the County and Local Jurisdiction desire to amend the Agreement to: (1) reflect the transfer of administrative responsibility from CEO to HSH including revising Section XV(A). Notices, Reports, Invoices, and Approvals; (2) increase the maximum amount of the Agreement by $531,272, for a new total contract amount not to exceed $1,007,417; and (3) replace Exhibit A, Project Description and Budget, in its entirety with Exhibit A-1, Project Description and Budget, which sets forth revised program descriptions, key performance indicators, and budget allocations under the Agreement; and FUNDING AGREEMENT FOR LOCAL SOLUTIONS FUND CONTRACT NO. HI-25-026, AMENDMENT ONE NOW THEREFORE, in consideration of the mutual benefits derived therefrom, it is agreed between the parties that County Contract No. HI-25-013 shall be amended as follows: This Amendment One shall commence on the date of execution by the Director of the Department of Homeless Servies and Housing ("HSH") or designee. 2. Effective January 1, 2026, this Agreement is administered by HSH. All references in the Agreement to Chief Executive Office ("CEO") shall henceforth be deemed to refer to HSH. 3. Section III(A). Funding Allocation, shall be deleted in its entirety and replaced as follows: A. Amount of Funds: Local Jurisdiction shall receive a portion of County's Measure A allocation in an amount not to exceed the total budget listed in Exhibit A-1, Project Description and Budget, as adjusted by the County contingent upon the County's receipt of allocated Measure A funds and annual approval by the Board. Funds are to implement programs and services aimed at preventing and reducing homelessness and increasing access to affordable housing (the "Project"), subject to Measure A, and as further described in this Agreement and Exhibit A-1, Project Description and Budget, which is attached and incorporated herein by reference. Local Jurisdiction agrees to use Funds as described in Exhibit A-1, Project Description and Budget. The County reserves the right, in its sole discretion, to adjust the Local Solutions Fund allocation based on actual Measure A tax revenues received by the County. The Local Jurisdiction shall have no claim against the County for payment of any money or reimbursement, of any kind whatsoever, for any Project approved by the Local Jurisdiction after the expiration or other termination of this Agreement. Should the Local Jurisdiction receive any payment of Funds for such Projects, it shall immediately notify the County and shall immediately repay all such Funds to the County. Payment by the County for Project rendered after the expiration and/or termination of this Agreement shall not constitute a waiver of the County's right to recover such payment from the Local Jurisdiction. This provision shall survive the expiration or other termination of this Agreement. 4. Section XV(A). Notices, Reports, Invoices, and Approvals, is updated to reflect new email addresses for County Representative as follows: Name: Marco Santana, County Project Manager Email: MSantana(a)hsh.lacounty.gov And copy HSHadmin(a)hsh.lacounty.gov 5. Exhibit A, Project Description and Budget, shall be replaced in its entirety by Exhibit A-1, Project Description and Budget, attached hereto and incorporated herein by reference. All references to Exhibit A shall hereafter be replaced by Exhibit A-1. Except for the changes set forth herein above, the Agreement shall not be changed in any respect by the Amendment One. FUNDING AGREEMENT FOR LOCAL SOLUTIONS FUND CONTRACT NO. HI-25-026, AMENDMENT ONE IN WITNESS WHEREOF, the parties hereto have executed this Amendment One: COUNTY OF LOS ANGELES a SARAH MAHIN Date Director, Department of Homeless Services and Housing APPROVED AS TO FORM FOR THE COUNTY: DAWYN R. HARRISON County Counsel a Ana Lai Senior Deputy County Counsel CITY OF SANTA CLARITA go Print Name Title EXHIBIT A-1 PROJECT DESCRIPTION AND BUDGET City of Santa Clarita H I-25-026 OVERVIEW This Agreement between the County of Los Angeles ("County") and City of Santa Clarita ("City") allocates funds from the County's Local Solutions Fund, which are authorized under Measure A to support local homelessness solutions, including prevention efforts, services, and affordable housing. The funds will support the City's projects as outlined herein. II. PROJECT DESCRIPTION a. Project Statuses The following reflects all projects/programs ("Projects") under the Agreement. Each Pro- ject, including any Project added through this Amendment, is designated as one of the following: i. Ongoing — Eligible for continued expenditures ii. New — Eligible for new expenditures iii. Terminated — No longer eligible for any expenditures iv. Close -Out — Not eligible for additional funding allocations but may continue to expend previously allocated funds b. Eligible Use Grouping 1 The following project(s) falls under the eligible uses of LSF, specifically, Eligible Use, Group 1, as outlined in the County's Measure A Local Solutions Fund Eligible Uses, Section 1.2. Activities under Eligible Use, Group 1 must directly contribute to achieving Measure A Goal 1 (reducing unsheltered homelessness) or Goal 3 (increasing perma- nent housing placements) and may include the following: homeless prevention; perma- nent housing for PEH; interim housing for PEH; expedited placements in permanent housing for PEH; employment services for PEH; or enhanced services for Transition - Age Youth and children experiencing or at -risk of homelessness. Amendment One: Ongoing — Updates Program Description, Target Outcomes and Budget 1A: Eligible Use Interim Housing for People Experiencing Homelessness (PEH) Project Non -Congregate Shelter Site The funds will support four (4) beds at an interim housing site located in Santa Clarita, which has a total capacity of 69 beds. These beds will serve adults experiencing homelessness. Project Description Through this funding, the City will work with Bridge to Home to deliver essential services at the interim housing site. These ser- vices include program oversight, the provision of meals, sup- portive services for participants, and general program coordina- tion. PS-KPI: Number of PEH placed in interim housing • Year One PS -TO: 13 unduplicated PEH Project Specific Key Perfor- • Year Two PS -TO: 8 unduplicated PEH mance Indicators (PS-KPI) TOTAL PS -TO: 21 unduplicated PEH and Target Outcomes (PS- PS-KPI: Number of PEH placed in permanent housing TO) . Year One PS -TO: 8 unduplicated PEH • Year Two PS -TO: 4 unduplicated PEH TOTAL PS -TO: 12 unduplicated PEH Alignment with Measure A Goal #1: Increase the number of peo- ple experiencing homelessness moving from encampments into Measure A Goals and Target permanent housing to reduce homelessness. Target Metric 1a: Decrease by 30 percent the number of people Metric experiencing homelessness from a baseline of 52,365 in 2024 to a target of 36,656 in 2030. c. Eligible Use Grouping 2 The following project(s) falls under eligible uses of Measure A LSF, specifically, Eligible Use Group 2. Activities under Eligible Use Group 2 must demonstrate a maximized partnership with organizations that create connections to mainstream safety net pro- grams supported by other funds from the County, State, and Federal Governments, in- cluding connections to medical and mental health care supported by state and federal programs as well as other entitlement programs. Amendment One: Ongoing — Updates Project Description, Target Outcomes, and Budget 2A: Eligible Use Case Management and Outreach Services Project Housing Navigator The funds will support 1 FTE Housing Navigator who will assist adult people experiencing homelessness (PEH) and connect them to housing navigation and permanent housing. Through Project Description this funding, the City will work with Bridge to Home to ensure all PEH are receiving the appropriate housing focused case man- agement services, such as being document ready, getting con- nected to employment or cash aid programs, and other support- ive services while looking for permanent housing. The project will be connected with the following investments/pro- grams funded by other entities, governmental or non -govern- mental including local agencies such as: The Housing Navigator will leverage local coordination efforts Group 2 Connection established through the Santa Clarita Community Task Force on Homelessness Case Conferencing Subcommittee. The Sub- committee facilitates collaborative care by bringing together ser- vice providers and housing navigators to prioritize and match individuals to available housing resources, including those funded through the Los Angeles Homeless Services Authority LAHSA and CaIAIM. PS-KPI: Number of PEH who actively participate in housing nav- igation Project Specific Key Perfor- • Year One PS -TO: 65 unduplicated PEH mance Indicators (PS-KPI) • Year Two PS -TO: 40 unduplicated PEH and Target Outcomes (PS- TOTAL PS -TO: 105 unduplicated PEH PS-KPI: Number of PEH placed into permanent housing TO) • Year One PS -TO: 40 unduplicated PEH • Year Two PS -TO: 20 unduplicated PEH TOTAL PS -TO: 60 unduplicated PEH Alignment with Measure A Goal #3: Increase the number of peo- ple permanently leaving homelessness. Measure A Goals and Target Target Metric 1b: Increase by 80 percent the number of people Metric moving into permanent housing from unsheltered settings from a baseline of 5,937 in fiscal year 2023-24 to a target of 10,687 in 2030. d. Eligible Use Grouping 3 The following project(s) falls under eligible Uses of Measure A LSF (LSF Funds) with Los Angeles County Affordable Housing Solutions Agency (LACAHSA) Funding. Local Jurisdiction must braid or pair LSF Funds with eligible LACAHSA funding to support prevention efforts under this program/project. If LACAHSA funding is not yet available, Local Jurisdiction shall coordinate with the County during the transition period to align timelines, funding strategies, and program deliverables; and submit a written plan within six months of this Agreement's execution detailing steps to secure LACAHSA fund- ing. The Local Jurisdiction shall make good faith efforts to secure and utilize such fund- ing when it becomes available. LSF Funds may only be used after LACAHSA funding is exhausted; or during the transition period with prior written approval from the County. Amendment One: Ongoing — Updates Project Description, Target Outcomes, and Budget 3A: Eligible Use Prevention of Housing Loss through Tenant Protection and Sup- port Programs Project Financial Assistance The funds will provide support to the Financial Assistance pro- ject, which aims to prevent homelessness among households at risk of losing their housing. Under this project, the City will pro - Project Description vide eligible households with emergency financial assistance, including rental arrears and rental assistance for up to 3 months. The City will work with Family Promise of Santa Clarita to ad- minister such financial assistance and support the stabilization of households fora period of at least 3 months. The City will work to braid funding with available Los Angeles County Affordable Housing Solutions Agency (LACAHSA) dol- Group 3 Connection lars once the direction has become available. The City will coor- dinate and communicate with the County in the interim while a Ian is developed to secure LACAHSA dollars. PS-KPI: Number of households assisted with financial support • Year One PS -TO: 40 unduplicated Households • Year Two PS -TO: 80 unduplicated Households Project Specific Key Perfor- TOTAL PS -TO: 120 unduplicated Households PS-KPI: Number of households stabilized for a period of at least mance Indicators (PS-KPI) and Target Outcomes (PS -TO) 3 months • Year One PS -TO: 25 unduplicated Households • Year Two PS -TO: 50 unduplicated Households TOTAL PS -TO: 75 unduplicated Households Alignment with Measure A Goal #4: Prevent people from falling into homelessness. Measure A Goals and Target Target Metric 4a: Reduce the number of people who become Metric newly homeless by 20 percent from a baseline of 63,202 in fiscal year 2023-24 to a target of 50,561 in 2030. e. Project Administration Amendment One: Ongoing — Updates the Budget Administrative Costs Project 4A Administrative Costs The funds will support indirect administrative costs associated with coordinating homelessness services and projects in the City as follows: • The funds will support administrative staff, including a City staff responsible for oversight of program implementation by Family Promise and a Bridge to Home staff responsible for client intake coordination, data entry into the Homeless Man- agement Information System (HMIS), reporting, compliance Project Description tracking, scheduling of case management services, and coor- dination of site management. • The funds will also support a part-time intern for the City's Community Task Force on Homelessness (Task Force). The intern will provide critical administrative support to ensure smooth coordination of meetings and timely communication across agencies. This ultimately contributes to the Task Force's multi -agency, collaborative approach in addressing homelessness in the Santa Clarita Valley. III. PROJECT BUDGET Total Agreement Sum: Not to Exceed $1,007,417 The budget below reflects the maximum amount of Measure A funding from County that Local Jurisdiction may receive for the applicable Fiscal Year (FY), subject to the County Board of Supervisors' ("Board") annual approval. Any increase in funding for a given fiscal year is at the sole discretion of the County and must be formally implemented through a written amendment to this Agreement. All funds approved and allocated by the County Board are made available throughout the term of the Agreement, in accordance with the budget set forth in this exhibit. Year One (FY 2025-2026 Allocation): Up to $476,145 Year Two (FY 2026-2027 Allocation): Up to $531,272 • opp$27,33917 1A Non -Congregate Shelter Site (Beds) $129,004 $148,355 2A Housing Navigator (1 FTE) $82,000 $103,371 $185,371 3A Financial Assistance (Rental arrears and up $202,804 $251,726 $454,530 to 3 months' rental assistance 4A Administrative Costs (Salaries/compensation $62,337 $27,820 $90,157 for administrative staff and a art -time intern TOTAL AMOUNT $476,145 $531,272 $1,007,417