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Home My WebLink AboutAuthorize the Executive Director to Sign a Letter of Support nPPDDygb ifs Allai/1»D TD 1-13Lg XTE1 Ti)A- FiJT(/,- 2000 Main Street, OA Huntington Beach,CAfYi /"'�L' 92648 City of Huntington Beach C�OOU,JTI CP 4�". File #: 22-1119 MEETING DATE: 12/20/2022 REQUEST FOR CITY COUNCIL / HOUSING AUTHORITY ACTION SUBMITTED TO: Honorable Mayor and City Council Members/Chair and Board Members SUBMITTED BY: Al Zelilnka, City Manager/Executive Director VIA: Ursula Luna-Reynosa, Director of Community Development PREPARED BY: Steve Holtz, Deputy Director of Community Development Jason Austin, Deputy Director of Homeless and Behavioral Health Services Subject: Authorize the Executive Director to Sign a Letter of Support for a Jamboree Housing Corporation application for grant funds from the California Departments of Health Care Services and Social Services through the Behavior Health Continuum Infrastructure and the Community Care Expansion Programs Statement of Issue: This Council action requests authorization for staff to submit letters of support (Attachments 1 and 2) for Jamboree Housing Corporation's (the "Developer") applications to apply for Twenty Million Dollars ($20,000,000) to the Behavioral Health Continuum Infrastructure Program (BHCIP) and Twenty Million Dollars ($20,000,000) to the Community Care Expansion Program (CCE). Financial Impact: There is no current financial impact associated with this request. If staff and the Developer agree to terms of an Affordable Housing Agreement, staff will return to the Housing Authority for consideration of such agreement which may include conveyance of two adjacent parcels located at 17642 Beach Boulevard (the "Property") at that time. Recommended Action: Authorize and direct the Executive Director to sign letters of support (Attachments 1 and 2) to support the grant application the California Departments of Health Care Services and Social Services through the Behavior Health Continuum Infrastructure and the Community Care Expansion Programs. Alternative Action(s): Do not approve the recommended action. Analysis: NO ACTION TAKEN Background City of Huntington Beach Page 1 of 3 Printed on 12/14/2022 powered by Legistar" File #: 22-1119 MEETING DATE: 12/20/2022 The Huntington Beach Housing Authority (the "Housing Authority" was established in 2011 per Health & Safety Code Sections 34200 et. seq. for the purpose of increasing the supply of safe and sanitary dwelling accommodations in the City available to persons of low income at rents they can afford. In 2019 and 2020, the Housing Authority acquired the 1.6 acre Property to facilitate a future affordable housing project. Since acquisition, the Property has been improved with a temporary homeless shelter (the "Navigation Center"). On March 22, 2022 a Request for Qualifications ("RFQ") was issued soliciting qualification statements to identify development partners to build, finance, and manage a new mixed-use development consisting of a homeless shelter, a sobering center, support services (physical and behavioral healthcare, housing navigation and employment), and transitional and affordable housing at various income levels (the "Project"). The Developer submitted a qualification statement that demonstrated strong partnerships, experience and financial capacity. On June 7, 2022 the City Council authorized the Executive Director to execute an Exclusive Negotiating Agreement (the "Agreement") with the Developer. The Agreement provides 360 days during which the Developer may perform studies and investigations and other due diligence activities on the Property and other analyses to determine the feasibility of Developer's acquisition of the Property. The Agreement further provides that the City and Developer shall exclusively negotiate with each other in an attempt to agree on the terms of an affordable housing agreement, including a fee-simple acquisition, ground lease, or other disposition of the Property. The Developer is actively exploring funding sources and financing options. It is anticipated that a number of funding sources will be required to complete the project. The California Department of Health Care Services (DHCS) and the California Department of Social Services (CDSS) have launched two new programs intended to expand the infrastructure and address gaps in the behavioral health and services systems for people with behavioral health needs. Behavioral Health Continuum Infrastructure Program (BHCIP) In 2021, DHCS was authorized to establish BHCIP and release six grant rounds targeting various gaps in the state's behavioral health facility infrastructure. The Funding Rounds included: Round 1: Mobile Crisis for$205 Million Round 2: County and Tribal Planning Grants for $16 Million Round 3: Launch Ready Programs for $518.5 Million Round 4: Children & Youth Programs for$480.5 Million Round 5: Behavioral Health Needs Assessment Phase One for $480 Million Round 6: Behavioral Health Needs Assessment Phase Two for $480 Million The purpose of Round 5: Crisis and Behavioral Health Continuum is to address significant crisis care gaps in California's behavioral health (mental health and substance use disorder) infrastructure, with consideration for funding priority to those that provide crisis services to individuals in need. This round will provide funding for crisis and behavioral health infrastructure to serve vulnerable Californians of all ages, including those who are Medi-Cal beneficiaries. Applications will be accepted for projects will expand service capacity.. City of Huntington Beach Page 2 of 3 Printed on 12/14/2022 powered by LegistarT" File #: 22-1119 MEETING DATE: 12/20/2022 Community Care Expansion Program (CCE) The CCE program was established by Assembly Bill No. 172 (Chapter 20, Statutes of 2021) and will provide $805 Million in funding for acquisition, construction and rehabilitation projects to preserve and expand adult and senior care facilities that serve those who are experiencing homelessness or are at risk of homelessness. Approximately 75 percent of funds will be made available for capital expansion projects including acquisition, construction and rehabilitation of residential care settings; with approval granted to use a portion of these funds to establish a capitalized operating subsidy reserve (COSR) for these projects for use up to five years. The additional 25 percent of the funds will be made available for rehabilitation to preserve settings that serve the target and prioritized populations. Counties, cities, tribal entities, nonprofit organizations, for profit organizations, and private organizations are eligible to apply for this funding with the understanding that proposed projects need to expand community capacity for serving the target and prioritized populations including Medi-Cal beneficiaries. The Developer has approached Housing Authority staff with a proposal to submit an application for up to $20,000,000 (Twenty Million) from the BHCIP program and $20,000,000 (Twenty Million) from the CCE program. The funds would be used towards the construction of the Project. The due date for the BHCIP application is January 17, 2023 with award announcements in Spring 2023 and the CCE has a rolling application date. Environmental Status: Pursuant to CEQA Guidelines Section 15378(b)(5), administrative activities of governments that will not result in direct or indirect physical changes in the environment do not constitute a project. If negotiations are successful an Affordable Housing Agreement will be brought forward for the Housing Authority's consideration and an environmental assessment will be conducted at that time. Strategic Plan Goal: Homelessness Response Attachment(s): 1. Attachment 1 - Letter of Support for Behavioral Health Continuum Infrastructure Program Grant Funding 2. Attachment 2 - Letter of Support for Community Care Expansion Program Grant Funding City of Huntington Beach Page 3 of 3 Printed on 12/14/2022 powered by Legistar"' City Council/Public Financing Authority ACTION AGENDA December 20, 2022 No. PB03010409024, and Monument Bond No. PB03010409039 as sureties (Attachment No. 7) for the installation of the subdivision's required public improvements and survey monumentation; and, D) Instruct the City Clerk to file the respective bonds with the City Treasurer and notify the Surety, Philadelphia Indemnity Insurance Company, of this action. Approved 7-0 19. 22-1119 Authorized the Executive Director to Sign a Letter of Support for a Jamboree Housing Corporation application for grant funds from the California Departments of Health Care Services and Social Services through the Behavior Health Continuum Infrastructure and the Community Care Expansion Programs Recommended Action: Authorize and direct the Executive Director to sign letters of support (Attachments 1 and 2) to support the grant application the California Departments of Health Care Services and Social Services through the Behavior Health Continuum Infrastructure and the Community Care Expansion Programs. Approved as amended to table item to a future date 7-0 Finance Department 20. 22-1063 Adopted Resolution No. 2022-80 accepting and approving the Development Impact Fee (DIF) Report for Fiscal Year 2021-22 and to make findings as required by Government Code Sections 66006 and 66001 Recommended Action: Accept and approve the Development Impact Fee Report for Fiscal Year Ending June 30, 2022 and Adopt Resolution No. 2022-80, "A Resolution of the City Council of the City of Huntington Beach to Accept and Approve the Development Impact Fee Report for Fiscal Year Ending June 30, 2022 and to Make the Findings as Required by Government Code Sections 66006(b) and 66001(d)." Approved 7-0 Fire Department 21. 22-930 Adopted Resolution No. 2022-79 approving the Local Hazard Mitigation Plan enabling the City to be eligible for pre- or post-disaster hazard mitigation funds from the Federal Emergency Management Agency (FEMA) Recommended Action: Page 8 of 14 December 20,2022 Mark Faucette BHCIP Program Director California Department of Health Care Services BHCIP Round 5: Crisis and Behavioral Health Continuum RE: Letter of Support for Jamboree Housing Corporation BHCIP Round 5: Crisis and Behavioral Health Continuum Huntington Beach Healing Center 17642 Beach Blvd,Huntington Beach,CA 92647 To Whom it May Concern: On behalf of the Housing Authority of the City of Huntington Beach, we are pleased to support Jamboree's application to the California Department of Health Care Services for Behavioral Health Continuum Infrastructure Program, Round 5: Crisis and Behavioral Health Continuum for the development referenced above. The Housing Authority recognizes that this project will provide a crucial space to engage unhoused individuals and create a path from homelessness to housing.At the same time,the project will assist in addressing the barriers that have prevented housing in the past. Jamboree Housing Corporation is a nonprofit housing developer with extensive experience constructing, renovating, financing, operating, and providing meaningful supportive services for all types of affordable and supportive housing communities throughout California. Thank you for the opportunity to document our commitment to the Jamboree application. If you have any questions, please feel free to contact Jason Austin, Director of Homelessness and Behavioral Health at Jason.Austinftsurfcity-hb.org or by phone at 714-374-1704. Sincerely, Al Zelinka Executive Director December 20, 2022 Mark Faucette BHCIP&CCE Program Director Advocates for Human Potential,Inc. Community Care Expansion Program RE: Letter of Support for Jamboree Housing Corporation CDSS Community Care Expansion Program Huntington Beach Healing Center 17642 Beach Blvd,Huntington Beach,CA 92647 To Whom it May Concern: On behalf of the Housing Authority of the City of Huntington Beach, we are pleased to support Jamboree's application to the California Department of Social Services for the Community Care Expansion Program for the development referenced above. The Housing Authority recognizes that this project will provide a crucial space to engage unhoused individuals and create a path from homelessness to housing.At the same time,the project will assist in addressing the barriers that have prevented housing in the past. Jamboree Housing Corporation is a nonprofit housing developer with extensive experience constructing, renovating,financing, operating, and providing meaningful supportive services for all types of affordable and supportive housing communities throughout California. Thank you for the opportunity to document our commitment to the Jamboree application. If you have any questions, please feel free to contact Jason Austin, Director of Homelessness and Behavioral Health at Jason.Austin@surfcity-hb.org or by phone at 714-374-1704. Sincerely, Al Zelinka Executive Director