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2012-27863 Reso RESOLUTION NO. 2012-27863 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING A SUBSTANTIAL AMENDMENT TO THE CITY'S 2008 ACTION PLAN TO REPROGRAM $24,842 OF HOMELESS PREVENTION AND RAPID RE-HOUSING PROGRAM FUNDS TO REDUCE THE FUNDING FROM ADMINISTRATION COSTS WHILE INCREASING THE FUNDING FOR DIRECT FINANCIAL ASSISTANCE SERVICES TO ELIGIBLE HOMELESS CLIENTS; FURTHER AUTHORIZING THE CITY MANAGER TO EXECUTE ALL CONTRACTS, AGREEMENTS AND AMENDMENTS NECESSARY TO CARRY OUT THE ABOVE PROGRAM. WHEREAS, the American Recovery and Reinvestment Act of 2009 allocated $715,418 under Title XII of the Act for Homeless Prevention and Rapid Re-Housing (HPRP) to the City of Miami Beach (City) to provide program participants with financial assistance, housing relocation and stabilization, as well as data collection and evaluation, and administrative costs; and WHEREAS, on May 13, 2009, the City approved Resolution No. 2009-27072, approving the City's planned use of funds to provide homeless prevention assistance to participants who are at or below 50% of the Area Median Income and to rapidly re-house persons who are homeless as defined by HUD; and WHEREAS,the City entered in to an agreement with the Department of Housing and Urban Development (HUD) on July 14, 2009, for the Homeless Prevention and Rapid Re-Housing Program in the amount of$715,418 (HPRP Agreement); WHEREAS, the HPRP Agreement will expire on July 14, 2012; and WHEREAS, the City's originally contemplated administrative expenses to meet the objectives of HPRP were not fully utilized; and WHEREAS, the Administration recommends reducing administrative costs by $24,842 to be reprogrammed to provide direct financial assistance to eligible clients through the Rapid Re-Housing Program prior to the expiration of the HPRP Agreement; and WHEREAS, the City has complied with HUD-required public notice and citizen participation requirements prior to submitting a Substantial Amendment to the City's 2008 Action Plan. NOW THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission authorize a Substantial Amendment to the City's 2008 Action Plan to reprogram $24,842 of Homeless Prevention and Rapid Re-Housing Program funds to reduce the funding from administration costs while increasing the funding for direct financial assistance services to eligible homeless clients, and further authorizing the City Manager to execute all contracts, agreements, and amendments necessary to carry out the program. PASSED AND ADOPTED this �2/3� day of rnOI'C6 , 2012. ATTEST: Yo bu fa.,tc164.__ 1 B F CITY CLERK �P .0 M OR Robert Parcher Matti Herrera Bower INCORP ORATED. gCH 26,E APPROVED AS TO FORM & LANGUAGE &FOR EXECUTION City tto n e Ddte COMMISSION ITEM SUMMARY Condensed Title: Resolution authorizing a Substantial Amendment to the City's 2008 Action Plan to reprogram$24,842 of Homeless Prevention and Rapid Re-Housing Program funds to reduce the funding from administration costs while increasing the funding for direct financial assistance services to eligible homeless clients; further authorizing the City Manager to execute all contracts, agreements and amendments necessary to carry out the above program. Key Intended Outcome Supported: Reduce the number of homeless. Supporting Data(Surveys,Environmental Scan,etc.):Based on the 2009 Community Satisfaction Survey,44%of residents rated the City's ability to address homelessness as excellent or good. Issue: Shall the Mayor and City Commission authorize a Substantial Amendment to the City's 2008 Action Plan to reprogram$24,842 of Homeless Prevention and Rapid Re-housing administrative funds, to reduce administrative funds and increase funding for direct services, and authorize the City Manager to execute all contracts, agreements and amendments between the City and HUD? Item Summa /Recommendation: The American Recovery and Reinvestment Act of 2009 allocated$715,418 to the City of Miami Beach under Title XII of the Act for Homeless Prevention and Rapid Re-Housing (HPRP). On July 14, 2009,the City entered into a grant agreement with the U.S. Department of Housing and Urban Development(U.S. HUD)for a total of$715,418 in HPRP funds. HUD rules require that 60% of the funds be spent within two years (July 14, 2011), and the remaining balance must be spent by the end of the third year(July 14, 2012). The funding was awarded for two distinct components: Homeless Prevention Services and Rapid Re-Housing Services. The HPRP allocation included specific funding for administrative costs. The Homeless Prevention Services component was allocated $380,000 and was administered by the City's Office of Community Services. The Rapid Re-Housing Services component was initially allocated$270,000 and was administered by the City's Homeless Services Programs office. The City realized savings on the administrative expenses budgeted to meet the objectives of HPRP. Accordingly, the Administration recommends reducing funds allocated to administrative costs by$24,842 to be reprogrammed to provide direct financial assistance to eligible clients through the Rapid Re-Housing Program prior to the program's expiration. Advisory Board Recommendation: N/A Financial Information: Source of Funds: Amount Account 1 $24,842 FY 2011 Homeless Prevention and Rapid Re-housing Program (HPRP) Account#153-5851-00348 2 3 OBPI Total $24,842 FY 2011 Homeless Prevention and Rapid Re-housing Program (HPRP) Account#153-5851-000345 Financial Impact Summary:Approval of this resolution will not have a fiscal impact on the City.This Resolution will simply reallocate HPRP funds to meet the most urgent and critical needs of the City's homeless population. City Clerk's Office Legislative Tracking: Anna Parekh Sign-Offs: Department Director Assi i na a City Manager AP HF T:\AGENDA\2012\3-21-12\Reprogram HPRP Funds Summ doc V 11 ® &AIAMIBEACH AGENDA ITEM C 7/" � DATE � � Z IM MIAMI BEACH City of Miami Beach, 1700 Convention Center Drive,Miami Beach, Florida 33139,www.miamibeachfl.gov COMMISSION MEMORANDUM TO: Mayor Matti Herrera Bower and Members of the City Commission FROM: Jorge M. Gonzalez, City Manager DATE: March 21, 2012 SUBJECT: A RESOLUTION AUTHORIZING A SUBSTANTIAL AMENDMENT TO THE CITY'S 2008 ACTION PLAN TO REPROGRAM $24,842 OF HOMELESS PREVENTION AND RAPID RE-HOUSING PROGRAM FUNDS TO REDUCE THE FUNDING FROM ADMINISTRATION COSTS, WHILE INCREASING THE FUNDING FOR DIRECT FINANCIAL ASSISTANCE SERVICES TO ELIGIBLE HOMELESS CLIENTS; FURTHER AUTHORIZING THE CITY MANAGER TO EXECUTE ALL CONTRACTS, AGREEMENTS AND AMENDMENTS NECESSARY TO CARRY OUT THE ABOVE PROGRAM. ADMINISTRATION RECOMMENDATION Adopt the resolution. ANALYSIS Through Title XII, Division A, of the American Recovery and Reinvestment Act of 2009 (ARRA), Congress designated $1.5 billion for Homeless Prevention and Rapid Re-Housing (HPRP), allowing states and units of local government to provide financial assistance and services to prevent individuals and families from becoming homeless or help those who are experiencing homelessness to be rapidly re-housed and stabilized. On July 14, 2009, the City entered into a grant agreement with the U.S. Department of Housing and Urban Development (U.S. HUD) for a total of $715,418 in HPRP funds. HUD rules require that 60% of the funds be spent within two years (July 14, 2011) of the City's execution of the agreement with HUD, and the remaining balance must be spent by the end of the third year (July 14, 2012). Rather than contracting with a sub-grantee, the Administration opted to administer the new program internally. The City, through its Homeless Services Program, and its Office of Community Services, has been carrying out the Homelessness Prevention and Rapid Re-Housing services in two distinct components, as listed below: 1. Homeless Prevention Services: The City provided short-term assistance (defined as rental costs accrued over a period of three months) and medium-term assistance (defined as actual rental costs accrued over a period of four months to 18 months) to eligible individuals or families at risk of becoming homeless and who were at or below 50% of the Area Median Income (AMI). The City originally allocated $300,000 for financial assistance to eligible clients and $80,000 for housing relocation and stabilization funds. On July 13, 2011, the City Commission authorized a reallocation of $65,600 from housing relocation and stabilization funds to financial assistance in Rapid Re-housing services for homeless persons. To date 99.97% of the prevention funding has been expended. City Commission-HPRP Reallocation of Funds March 21, 2012 Page 2 of 2 2. Reid Re-Housing Services: The City provides assistance to homeless persons (as defined by HUD) transitioning from emergency shelters or the streets into permanent housing. The following activities are eligible: security and utility deposits, and up to 18 months of rental assistance, housing search and placement. An outreach and case management component is part of this program to allow for the arrangement, coordination and delivery of these services. The City originally allocated $200,000 for financial assistance to eligible clients and $70,000 for housing relocation and stabilization funds. The HPRP funding included specific funding for administrative costs associated with administering this grant. The City has realized savings on the administration expenses budgeted to meet the objectives of the HPRP, and accordingly, the administration recommends reprogramming these savings to provide increased direct services to needy people. Currently, $24,842 of available, unspent administrative funds may be reprogrammed for direct services. Prior to amending a plan which has been approved by HUD, the City must submit a Substantial Amendment and demonstrate compliance with public notice and citizen participation requirements. Therefore, an advertisement was placed in the Miami Herald and the draft Substantial Amendment was posted on the City's website. Furthermore, a public meeting was held on February 12, 2012, at the Office of Real Estate, Housing, and Community Development. No members of the public attended the public meeting. To date, no public comments have been received. The 30-day public comment period will close on March 13, 2012, and public comments received by the close of the comment period, if any, will be made available to the City Commission. CONCLUSION HPRP has enabled the City to expand the level and depth of supportive services by temporarily offering the City's homeless residents additional services including rental assistance, utility assistance, and outreach and case management services. City Commission approval of the proposed amendment will enable the City to expend the HPRP funds in a manner that most appropriately and directly addresses the growing needs of the City's homeless population. It is recommended that the Mayor and City Commission authorize a Substantial Amendment to the City's 2008 Action Plan to reprogram $24,842 of Homeless Prevention and Rapid Re- Housing Program funds to reduce the funding from administration costs while increasing the funding for direct financial assistance services to eligible homeless clients, and further authorizing the City Manager to execute all contracts, agreements, and amendments necessary to carry out the program. JMG/H /AP/KM T:\AGENDA\2012\3-21-12\Reprogram HPRP Funds-MEMO.doc