RECOMMENDATION(S): (CONT'D)
2. Acknowledging that the County and/or the developer proposing a project (the "Development Sponsor") will be subject to the terms and conditions included in the State's Standard Agreement to be entered into with the State pursuant to Government Code section 15463, Part 3.9 of Division 5 of the Welfare and Institutions Code, and Welfare and Institutions Code section 5890;
3. Authorizing a commitment by the Health Services Department (HSD) to make mental health supportive services available to each project’s NPLH tenants for at least twenty years.
FISCAL IMPACT:
No fiscal impact. This action approves the County to participate in the NPLH Noncompetitive Allocation program and submit a Noncompetitive Allocation Acceptance Form to the California Department of Housing and Community Development (HCD). Effectively, it is a notice of intent to apply for the County's allocation of $2,231,571 between now and February 15, 2021. Separate Board of Supervisor action will be taken prior to each project-specific application submittal. When the project receives an allocation of NPLH, the funds will be loaned to the County or the Development Sponsor and secured by a Deed of Trust on the development property. Loan payments are deferred until the project is sold and the proceeds from the sale are used for loan repayment. The cost of providing mental health supportive services will be covered by existing Mental Health Services Act funds allocated to the Health Services Department. DCD staff costs will be covered by Special Revenue Funds designated for affordable housing.
BACKGROUND:
On September 18, 2018, the Board of Supervisors approved an advocacy position for Proposition 2 that authorized the issuance of bonds to fund existing housing programs for individuals with mental illness. The proposition was passed by voters on November 6, 2018. The proceeds of the Proposition 2 bond issuance are designated for the No Place Like Home (NPLH) program to be provided as deferred payment loans for the development of permanent supportive housing for persons with a serious mental illness who are homeless, chronically homeless or at-risk of chronic homelessness. NPLH funds are administered by the California Department of Housing and Community Development (HCD) in two tranches:
1. Noncompetitive Allocation Funds – Funding available on an “over the counter” basis to specific cities and counties throughout the state. Contra Costa’s allocation is $2,231,571. The County is required to submit a Noncompetitive Allocation Acceptance Form with a Board approved resolution to HCD no later than August 15, 2019 before being able to apply for funds on behalf of specific development projects.
2. Competitive Allocation Funds - Funding available on a competitive per-project allocation basis. These funds will be available through four Notice of (NOFA) rounds over the next four years. The County may apply independently or with a development sponsor. Applications for the first round were due on January 30, 2019, and the County submitted one application with a development sponsor. See Item C.71 on the January 22, 2019 agenda.
The funds may be used to acquire, design, construct, rehabilitate, or preserve permanent supportive housing, which may include a capitalized operating subsidy reserve.
This action approves submission of the Noncompetitive Allocation Acceptance Form to HCD in order for the County to express intent to use it’s Noncompetitive allocation no later than February 15, 2021 through the submission of one or more project-specific applications. After identifying eligible projects, staff will return to the Board for approval to apply to HCD for the actual allocation of Noncompetitive Funds.
CONSEQUENCE OF NEGATIVE ACTION:
If not approved, the County’s ability to secure permanent supportive housing for persons with a serious mental illness who are Homeless, Chronically Homeless or At-Risk of Chronic Homelessness will be diminished.
CHILDREN'S IMPACT STATEMENT:
Permanent supporting housing supports all of the following children's outcomes: (1) Children Ready for and Succeeding in School; (2) Children and Youth Healthy and Preparing for Productive Adulthood; (3) Families that are Economically Self Sufficient; (4) Families that are Safe, Stable and Nurturing; and (5) Communities that are Safe and Provide a High Quality of Life for Children and Families.