REPORT TO THE CITY COUNCIL FROM: JENNIFER CLARK, Director Planning & Development Department PHIL SKEI, Assistant Director Planning & Development Department BY: JILLIAN GAYTAN, Senior Management Analyst Housing and Community Development Division SUBJECT ..Title Approve the State of California Business, Consumer Services and Housing Agency's (BCSH) California Interagency Council on Homelessness (Cal ICH) joint service plan and local homelessness action plan as an individual applicant for the third round of Homeless Housing, Assistance, and Prevention Program (HHAP) ..Body RECOMMENDATION Staff recommends the City Council approve the submission of the joint service plan and local homeless action plan applying as an individual applicant to Cal ICH to receive the second installment of a third round of HHAP (HHAP-3) funds totaling $6,019,405.72. EXECUTIVE SUMMARY On October 14, 2021, the City Council approved the submission of the Standard Agreement to Apply for HHAP-3 funding in the amount of $7,524,257.15 to be used to support regional coordination and expand or develop local capacity to address homelessness in the City. By submitting the Standard Agreement to Apply, the City received an initial disbursement equal to 20% of its total allocation, or $1,504,851.43, in early April. In order to receive the $6,019,405.72 balance of the HHAP-3 funds, BCSH requires all participating jurisdictions to complete an application including a homeless action plan, part of which includes a Joint Service Plan with overlapping jurisdictions. The plan is due to BCSH no later than June 30, 2022. For any applicant that does not submit an application and local homeless action plan by the deadline, Cal ICH may choose to re-allocate the applicant's allocation to an overlapping jurisdiction. BACKGROUND HHAP is authorized by Assembly Bill 101 (Committee on Budget, Chapter 159, Statues of 2019), which was signed into law by Governor Gavin Newsom on July 31, 2019. HHAP-3 is a $1 billion block grant program that provides local jurisdictions with flexible funding to continue efforts to end and prevent homelessness in their communities. HHAP funding is divided into three categories for distribution: Continuums of Care, Cities (Large Cities with population over 300,000), and Counties. The Standard Agreement to Apply was approved by the City Council on October 14, 2021, allowing the City to receive an initial disbursement of HHAP-3 funds totaling $1,504,851.43 which it received on April 18, 2022. As part of the application process for the remaining HHAP-3 funds, the City was required to develop a local homeless action plan part of which includes a Joint Service Plan with overlapping jurisdictions. The local homelessness action plan must include the following: * A complete local landscape analysis providing the current number of people experiencing homelessness and existing programs and funding which address homelessness within the jurisdiction. * Identification of the number of individuals and families served, including demographic information and intervention types provided, and demographic subpopulations that are underserved relative to their proportion of individuals experiencing homelessness in the jurisdiction. * Identification of all funds, including state, federal and local funds, currently being used, and budgeted to be used, to provide housing and homelessness-related services to persons experiencing homelessness or at imminent risk of homelessness, how this funding serves subpopulations, and what intervention types are funded through these resources. * A narrative that includes a description of the specific activities to be supported; the City's coordination and partnership with local agencies; a demonstration to increase partnerships; specific actions to ensure racial and gender equity in service delivery, housing placements, and housing retention; how the City will make progress in preventing exits to homelessness; the system improvements that will be taken to improve the delivery of housing and services to people experiencing homelessness or at risk of homelessness; and evidence of connection with the local homeless Coordinated Entry System. * Jurisdictional outcome goals and actionable strategies for preventing and reducing homelessness, informed by the local landscape analysis and base system performance measures. In early 2022, a planning group consisting of representatives from the City, Fresno Madera Continuum of Care, and Counties of Madera and Fresno, began coordinating and completed the proposed local homelessness action plan and application template provided by the state, which will support a continuum of services. The local homelessness action plan includes various statistics surrounding individuals experiencing homelessness and the funds currently being used to address homelessness and will be included in each jurisdiction's application to the state. The local homelessness action plan of the region's recipients, utilizing the $14.78 million combined allocation, will ensure a continuum of services across jurisdictions to strengthen the region's crisis response network to address the homelessness crisis in Fresno and Madera Counties and the City. The specific activities to be supported by the City included in the plan reflect the City's commitment to continuing the operations of the various homeless shelters it, or its partners, own through June 30, 2024. The homelessness action plan does not represent approval of specific funding agreements with service providers. Following submission of the plan to the state and the City receiving the balance of its HHAP 3 allocation, staff will return to Council for approval of individual HHAP funding agreements that align with the homelessness action plan. Also new in HHAP Round 3 - $180 million in bonus funds will be available to CoC, City, and County recipients that meet funding obligation and outcome goals requirements. Cal ICH will determine bonus award allocations based on the recipient's proportionate share of the state's homeless population as reported in the 2019 PIT count. Cal ICH will determine whether a recipient has met its funding obligation and outcome goals requirements through July 1, 2024 and will award bonus funding no later than November 1, 2024. Cal ICH may provide exceptions to the requirement to meet outcome goals to receive bonus funding if the recipient demonstrates hardship by disaster for which a state of emergency is proclaimed by the Governor. The jurisdictions are not required to meet the related goals for underrepresented populations to be eligible for bonus funding. By submitting the application and local homelessness action plan, the City will receive a second disbursement of $6,019,405.72 in HHAP-3 funding. For any applicant that does not submit an application by the deadline of June 30, 2022, Cal ICH may choose to re-allocate the applicant's allocation to an overlapping jurisdiction. ENVIRONMENTAL FINDINGS This item is not a project as defined by the California Environmental Quality Act. LOCAL PREFERENCE Local preference was not implemented because of state funding. FISCAL IMPACT Submission of the application makes the City eligible to receive the $6,019,405.72 balance of its HHAP-3 allocation. Attachment: HHAP-3 Application and Local Homelessness Action Plan