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HomeMy WebLinkAbout25E - DEVELOPMENT OF PERMANENT HSGREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: JUNE 18, 2007 TITLE: APPROVE AGREEMENT WITH STRAIGHT TALK, INC. FOR THE DEVELOPMENT OF PERMANENT HOUSING FOR PERSONS WITH HIV/AIDS ~~ CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ^ As Recommended ^ As Amended ^ Ordinance on 1~~ Reading ^ Ordinance on 2nd Reading ^ Implementing Resolution ^ Set Public Hearing For_ CONTINUED TO FILE NUMBER Direct the City Attorney to prepare and authorize the City Manager and the Clerk of the Council to execute an agreement with Straight Talk, Inc. for the development of permanent housing for persons with HIV/AIDS in the amount of $535,000. DISCUSSION Since 1993, the City of Santa Ana has received funds through the U.S. Department of Housing and Urban Development (HUD) for the Housing Opportunities for Persons with AIDS (HOPWA) Program. As the most populous city in Orange County, Santa Ana receives the funds for the entire county. The HOPWA Program is designed to provide resources and incentives for long-term comprehensive strategies to meet the housing needs of persons with HIV/AIDS. In allocating these grant funds for eligible activities, the City of Santa Ana is required to consider the service needs of eligible persons who reside throughout Orange County and to approve funding for projects which may be located anywhere in the county. Since the inception of the HOPWA Tenant-Based Assistance Program, the providers in the HIV/AIDS community have experienced difficulties in housing some members of the client population. These individuals are suffering not only from HIV/AIDS but also from additional substance abuse or mental health issues. Due to issues with their dual diagnosis, these individuals are unable to live independently and take advantage of the Tenant-Based Rental Assistance Program. 25E-1 Agreement with Straight Talk, Inc. June 18, 2007 Page 2 In 2004, the City of Santa Ana contracted with AIDS Housing of Washington, a technical assistance provider from HUD, to study the Orange County HIV/AIDS community and develop a Housing Plan. Working with the County of Orange Health Care Agency, service providers and clients, the plan was completed in 2005. A major goal of the plan was to promote housing stability, prevent homelessness, and increase access to care and support for people living with HIV/AIDS. One of the recommendations from the plan was to seek a non-profit with experience working with the HIV/AIDS dually diagnosed population to provide permanent and transitional housing that is integrated into the community, such as acquisition and rehabilitation of a single-family home. In March of this year, a Request For Proposals (RFP) was issued for the development of permanent housing for the underserved individuals with HIV/AIDS. The RFP notice was published in the Orange County Register, Miniondas, and Ngoi Viet newspapers and was sent via direct mail to over 100 for-profit and non-profit developers. The RFP was also sent to the executive directors of all HIV/AIDS service providers in Orange County. The City received one response from Straight Talk, Inc. to purchase a detached single family dwelling, which will provide permanent housing for a minimum of six individuals with HIV/AIDS. Straight Talk is a private, Orange County 501 c 3 public benefit, nonprofit corporation that has served disadvantaged individuals and population groups continually since its inception in 1971. The agency has over 25 years experience establishing a variety of long-term residential facilities within Orange County, including the pioneering effort to implement the State's first treatment program for HIV/AIDS substance abusers in 1990. Straight Talk is able to make available to residents supportive services such as licensed clinicians, referrals for medical care, and HIV/AIDS case management. Straight Talk anticipates the majority of residents will have their rent subsidized through the Shelter Plus Care Program or the Housing Choice Voucher Program. For those individuals without subsidy, rent will be based on a sliding scale, currently not to exceed $475 per month. Staff has reviewed and evaluated the response from Straight Talk and has toured its facilities. Based on their expertise and their capacity to develop and manage a permanent housing environment, staff is recommending Straight Talk, Inc. be allocated the $535,000 for the acquisition/rehabilitation of single family dwelling to serve the target population and remain affordable for a minimum of 15 years. 25E-2 Agreement with June 18, 2007 Page 3 FISCAL IMPACT Straight Talk, Inc. Funds are available in the HOPWA Program account (account no. 405-148- 6931). APPROVED AS TO FUNDS AND ACCOUNTS: ~. ~/~ Ste en G. Ha ding Deputy City nager for Development Services Community Development Agency SGH/LF/mlr Francisco Gutierrez Executive Director Finance & Management Services Agency H:\ACTIONS\2007 CC\AgTee-StYaightTal kHOPWA Dev 06-18-07.dOC 25E-3 25E-4