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HomeMy WebLinkAbout80A - JOINT - JOSEPH HOUSE LOANREQUEST FOR COUNCIL/ HOUSING AUTHORITY ANION Cii q *TqI<C+3f� L 14441 0tl3NIA DECEMBER 1, 2015 TITLE: AMENDMENT TO JOSEPH HOUSE LOAN AGREEMENT AND AFFORDABLE HOUSING COVENANTS WITH MERCY HOUSE LIVING CENTERS, FORMERLY KNOWN AS MERCY HOUSE TRANSITIONAL LIVING CENTERS (STRATEGIC PLAN NO. 5, 3) CITY MANA. 'ER EXECUTIVE DIRECTOR CITY COUNCIL ACTION ,y CLERK OF COUNCIL USE ONLY: :.�•.• .try ❑ As Recommended ❑ As Amended ❑ Ordinance on tat Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For X011211 hnr.rr.� FILE NUMBED Authorize the City Manager and the Clerk of the Council to execute an amendment to Joseph House loan agreement and affordable housing covenants with Mercy House Living Centers, formerly known as Mercy House Transitional Living Centers, to include both transitional housing and permanent housing with supportive services for the Joseph House Project located at 210 E. 16th Street, subject to non - substantiative changes approved by the City Manager and City Attorney. HOUSING AUTHORITY ACTION Authorize the Executive Director of the Housing Authority to execute an amendment to Joseph House loan agreement and affordable housing covenants with Mercy House Living Centers, formerly known as Mercy House Transitional Living Centers, to include both transitional housing and permanent housing with supportive services for the Joseph House Project located at 210 E. 16th Street, subject to non - substantiative changes approved by the Executive Director and the Housing Authority General Council. DISCUSSION On April 11, 2006, the City of Santa Ana and the former Community Redevelopment Agency of the City of Santa Ana (RDA) entered into a Housing Development Loan Agreement and Affordable Housing Covenants with Mercy House Transitional Living Centers (Mercy House) for the rehabilitation of the Joseph House Project located at 210 E. 16th Street. Mercy House has operated Joseph House as a transitional housing program for homeless single men within the community since 1990. At the time of the loan agreement in 2006, the City provided HOME Investment Partnership Program (HOME Program) and RDA tax increment funds for the 80A -1 Amendment to Joseph House Loan Agreement and Affordable Housing Covenants December 1, 2015 Page 2 rehabilitation of the property. At the time of committing HOME funds, the HOME Program allowed funds to be used for transitional housing. In accordance with the loan agreement and funding regulations, the City has continued to monitor Joseph House to ensure compliance with the loan documents, regulations, and affordable housing covenants. Due to funding and policy changes at the federal level, Mercy House is proposing to modify the Joseph House transitional housing program to become a dual - purpose facility offering both transitional housing and permanent housing with supportive services for single, homeless men from the community. Currently, Joseph House has three units providing transitional housing to 21 homeless, single men at a time. In September 2015, Mercy House submitted a plan for Joseph House outlining the proposed program modification and implementation of the strategy (Exhibit 1). The proposed program modification from a transitional shelter to a dual - purpose model will include the following: (1) transition two units of transitional housing into permanent housing with supportive services, offering low rental costs in compliance with HOME low rents to meet the needs of low- income homeless individuals in the community; (2) one unit will continue to operate as a transitional housing program; and (3) leverage rapid re- housing funds to reduce the length of time clients stay at the shelter with the goal of connecting them to permanent affordable housing opportunities. The proposed program modifications would require minor rehabilitation to the physical property and require no additional funds from the City. STRATEGIC PLAN ALIGNMENT The activities covered by this report allow the City to meet Goal #5 (Community Health, Livability, Engagement & Sustainability), Objective #3 (Facilitate diverse housing opportunities and support efforts to preserve and improve the livability of Santa Ana neighborhoods). FISCAL IMPACT There is no fiscal impact associated with this action. Kelly Reenders Executive Director Community Development Agency KL /JB /NV /II Exhibits: 1. Joseph House Proposed Modification Plan /Implementation 2. Amendment to Loan Documents 80A -2 Inc \�\l Executive Summary Mercy House Living Centers is a 501(c)(3) non - profit organization operating in Orange County. Mercy House was founded in 1988 by Father Jerome T. Karcher with a vision to serve the homeless in our community. In the belief that every person is born with an inherent human dignity, and that homelessness is an affront to that dignity, our mission "to be a leader in ending homelessness by providing a unique system of dignified housing opportunities, programs and supportive services" drives all that we do. Mercy House was quickly grown from a single shelter serving 10 single men, to a full system of care designed to meet the needs of the homeless at all stages of their struggle. In the past year, Mercy House provided services to over 6,400 of our community's most vulnerable men, women, and children. Though our services have expanded and changed, our mission and reason for existence remains the same: to end the homelessness of all who enter our system of care. Organization Summary Mercy House Living Centers ( "Mercy House ") is a non - profit organization serving the homeless throughout Orange County, San Bernardino County, Riverside County, and Phoenix, Arizona. The non- profit was incorporated in 1988 and began operations of our first transitional shelter program in 1990. We have continued to successfully provide homeless service programs for over 25 years. In this time, we have created a complete system of care based on a blend of continuum of care and housing first models of ending homelessness. Our programs include homelessness prevention, emergency services and shelters, transitional housing, aftercare programs, rapid re- housing programs as well as permanent housing facilities. Because of the wide variety of services we provide, Mercy House staff have worked closely with many homeless subpopulations including, but not limited to: homeless families, adult men and women, veterans, women with children, chronically homeless individuals, persons living with HIV /AIDS, individuals overcoming substance abuse, and those who are physically and mentally disabled. Mission Mission Statement: To be a leader in ending homelessness by providing a unique system of dignified housing opportunities, programs and supportive services. Operational Statement: To end the cycle of homelessness of those who enter our system of care. 2014 -2015 Statistics • Mercy House prevented or ended the homelessness of 816 men, women, and children • Mercy House provided transitional housing to 218 individuals, successfully transitioning 70 of them into stable, permanent housing E i1 • Mercy House's ongoing supportive housing programs were able to provide housing to 236 unduplicated individuals • Mercy House served 4,852 homeless individuals through our Emergency Services programs including 536 parents and children through our Family Redirection Program Legal Entity Mercy House is a non profit 501(c)(3) organization founded in 1988 by Father Jerome T. Karcher, Mercy House has developed a continuum of care of provide homeless prevention, emergency shelter and services, transitional housing, and permanent housing with supportive services to homeless men, women, and children living in Orange County, San Bernardino County, Riverside County, and Phoenix, Arizona. Tax ID: 33-0315864 Until 2009, Mercy House was known as Mercy House Transitional Living Centers. With the development of the Rapid Re- Housing Program and the Family Redirection Program, it became clear that permanent housing had emerged as a more viable solution to ending homelessness for many clients. On February 6, 2009, Mercy House changed its name to Mercy House Living Centers. Keys to Organizational Success • Build and leverage strong, active board of directors. • Only engage in projects and services that support identified primary strategic programs • Continue to design and implement strict financial controls and accountability • Align programs and services to national best practices to ensure effective service, delivery, better housing outcomes and increased cost effectiveness. Orange County Housing Challenges According to the Orange County Community Indicators Report (2015), the following present key indicators of homelessness and housing stability challenges for Orange County residents: Rental Affordability In 2015, the hourly wage needed to afford a one - bedroom unit in Orange County was $24.67, equivalent to an annual income of $51,320. This is down from $25.35 in 2014 and lower than the five -year average of $25.38. Workers earning above minimum wage, but below the Housing Wage of $24.67 may experience increased economic insecurity as a larger proportion of the earnings must go toward housing. A minimum -wage worker must work 110 hours per week to afford a one - bedroom unit at fair market rent in Orange County. • I M ORANGE COU"TY'S HOUSJNG WAGE 15 HIGH COMPARED TO PEERS' Homeless Point -in -Time Count MINIMUM WAGE EARNER MUST WORK 110 HOU'6tS PER WEEK TO AFFORD RENT' The Homeless Point -in -Time Count and Survey is conducted every two years during the last part of January. The 2015 Point -in -Time Count revealed that the number of unsheltered homeless individuals increased since the 2013 count. A total of 2,201 unsheltered homeless individuals were found to be living on the streets of Orange County compared to the 1,678 individuals counted in 2013. This represents a 5% increase compared to the 2013 count. Of these 2,201 unsheltered individuals, a large majority (71 %) are single, adult men. Though single, adult men are overrepresented in the unsheltered homeless count, they have little access to transitional shelters, emergency shelters, and permanent supportive housing programs that are often designed to meet the needs of families, single women with children, those who have experienced domestic violence, the chronically homeless, or those living with HIV /AIDS. • R M Mercy House first began operation of the Joseph House Transitional Shelter Program in 1990. It was designed to meet the needs of 10 homeless, single men within the community. Since that time, Joseph House rapidly expanded to provide shelter and supportive services to 21 homeless single men. Though homeless single men have consistently been overrepresented in Orange County Homeless Point - in -Time counts, the services available to them have not been able to meet their large numbers. As homeless services continue to grow and adapt to the needs of specific subpopulations including homeless families, the chronically homeless, individuals facing domestic violence and veterans, there continues to be a lack of services designed specifically for single, homeless men. As such, Mercy House made the strategic discussion to modify its current shelter stock to modify the Joseph House transitional program to provide both transitional housing and permanent housing with supportive services for single, homeless men within our community. Joseph House currently has three units, providing transitional shelter to 21 homeless, single men at a time. In repurposing from a transitional shelter to a dual - purpose model, Mercy House will undergo the following key program modifications: • Transition two units of transitional housing into permanent housing with supportive services, offering low rental costs to meet the needs of the low- income homeless men in our community • One unit will continue to operate as a transitional shelter program • Leverage rapid re- housing funds with the aim to reduce the length of time clients stay at the shelter with a goal of connecting them to housing opportunities Structure and Location Joseph House is located in the city of Santa Ana in the French Park neighborhood. Mercy House owns three properties in the same neighborhood and has been an active participant in the community since 1990. The Joseph House property has access to grocery stores, restaurants and public transportation. The property is comprised of four units, three of which are used for transitional housing. The three transitional housing units are 2- bedroom units with adequate cooking and hygiene facilities. Zoning and Uses Mercy House is currently operating Joseph House under a Conditional Use Permit that allows the housing of homeless single men. Rehabilitation for Use as a Dual- Purpose Facility The Joseph House facility would require little rehabilitation to transition to a dual - purpose facility. The property could benefit from some additional minor repairs, but is in good condition and is ready to immediately serve single men in transitional and permanent housing. • 1 •, Strategy and Program Implementation Strategies for Sustainability and Leveraging Mercy House has consistently funded the operations of Joseph House as a transitional shelter for over 25 years and as such has garnered a variety of both public and private resources to support the project. In moving to a dual - purpose facility, Mercy House will effectively communicate the programmatic changes to these partners to ensure continued support of the project. As part of its resource development strategies, Mercy House is engaged in ongoing funding research that replaces, supplants or provides new funding opportunities. On -going Maintenance of the Facility Mercy House has on staff Maintenance Managers who are in charge of regular maintenance and repair of Mercy House's facilities including the Joseph House Facility. Additionally, Mercy House has connections to a network of professional service volunteers who provide pro -bono services such as plumbing, electrical and landscaping as needs should arise. Volunteer groups will be recruited to support facility beautification projects that include upgrades to the facility grounds and gardens, interior furniture replacement as well as interior and exterior painting projects. Mercy House also allocates a percentage of funding as replacement reserves that may be used for special projects to improve the facility, regular maintenance and replacement of furniture as needed. Programmatic Strategies and Outcomes The Joseph House Program will be designed as a dual - purpose facility. One of the three units will continue to provide temporary housing through a transitional shelter program to 7 single men at a time. Two of three units will provide permanent housing for 10 single men. Every participant in the Joseph House transitional and permanent housing program will be required to meet the definition of homelessness as set forth by HUD and will be required to be under 80% Area Median Income at time of entry and throughout their stay. Definition of Homelessness All clients receiving services through the Joseph House Transitional and Permanent Housing Program will be required to be homeless as defined by the HEARTH Act's Final Rule Defining Homelessness (76 FR 75994) published on December 5, 2011. Category 1— Literal Homelessness (1) Individual or family who lacks a fixed, regular, and adequate nighttime residence, meaning: (i) 80A -7 Has a primary nighttime residence that is a public or private place not meant for human habitation; (ii) Is living in a publicly or privately operated shelter designated to provide temporary living arrangements (including congregate shelters, transitional housing, and hotels and motels paid for by charitable organizations or by federal, state and local government programs); or (iii) Is exiting an institution where (s)he has resided for 90 days or less and who resided in an emergency shelter or place not meant for human habitation immediately before entering that institution Transitional housing for homeless persons who originally came from the streets or emergency shelters. Category 2 — Imminent Risk of Homelessness (2) Individual or family who will imminently lose their primary nighttime residence, provided that: (i) Residence will be lost within 14 days of the date of application for homeless assistance; (ii) No subsequent residence has been identified; and (iii) The individual or family lacks the resources or support networks needed to obtain other permanent housing. Category 3 — Homeless Under Other Statutes (3) Unaccompanied youth under 25 years of age, or families with Category 3 children and youth, who do not otherwise qualify as homeless under this definition, but who: (1) Are defined as homeless under the other listed federal statutes; (ii) Have not had a lease, ownership interest, or occupancy agreement in permanent housing during the 60 days prior to the homeless assistance application; (iii) Have experienced persistent instability as measured by two moves or more during in the preceding 60 days; and (iv) Can be expected to continue in such status for an extended period of time due to special needs or barriers Joseph House Transitional Housing Program One unit of the Joseph House facility will continue to provide temporary housing to single men through a transitional shelter program. Participants will be required to participate in supportive services including case management and life skills classes that focus on employment and permanent housing location. The targeted outcome for each participant will be long -term stable housing. At the point of entry, an assessment will be completed to identify every barrier to housing stability. The identified barriers will be addressed through goal setting and accountability under the care and guidance under Mercy House staff. Rapid Re- Housing funds will be leveraged to assist individuals in exiting the program and entering permanent, stable housing as quickly as possible. The anticipated goals for the Transitional Housing Program are: 1) To shorten length of stay to increase bed turnover 2) Connect single men to available housing resources 3) Secure housing within the community In orderto achieve these goals, Mercy House will employ the following strategies: 1) Seek training opportunities for program staff that provide best practice research on shortening lengths of stay FORM 2) leverage and connect Mercy House's own rapid re- housing funds, Section 8, and other housing resources to provide support supportive services to single men 3) Increase Housing Search and Placement staffing and services to increase number of property and landlord relationships within the community. Create strategic partnerships with other service providers; advocate and support efforts for lower barriers of entry into transitional and other long -term programs The transitional component of Joseph House will provide services to 25 single, homeless men annually Joseph House Permanent Housing Program The Joseph House Permanent Housing Program will be designed to provide low- income permanent housing with supportive services to 10 homeless, single men. Two units will be converted to permanent housing. Each unit has two bedrooms. One will bedroom in each unit will house 4 single men in permanent housing; the remaining bedroom will house 1 single homeless man. Bedrooms will not have private bathrooms. Each unit offers a communal kitchen, dining area, and living area with shared bathrooms. Mercy House staff will be available to provide required supportive services include case management and life skills classes as well as emergency and maintenance assistance. The targeted outcome for each individual will be long -term, stable housing. Each client will be provided with case management to identify barriers to permanent housing, with the ultimate goal being stable housing for each individual, whether that is through our permanent housing programs, or permanent housing outside of Mercy House's Continuum of Care. Eligibility for Admission To be eligible for admission to the Joseph House Permanent Housing Program, an applicant must be documented and of legal age (18 years of age or older). Applicants must be single men and homeless or at risk of homelessness and be willing to live in a shared space facility. All applicants will be considered individually. Applicants will be considered when they complete the application packet and the following criteria are met: 1) Applicant can exhibit documentation confirm homeless status 2) Applicant's verified minimum monthly gross income is $100 overthe amount of resident's rent payment. 3) Household's annual income does not exceed the low- income limits (80% of area median income) as established by HUD. 4) Household income is such that applicant can satisfactorily meet their debt obligations without subtracting from other necessary living expenses. This includes payment of rent, current debt payments and basic necessities. 5) No eviction history for a period of 2 years prior to entry 6) No history of criminal convictions for sex offenses, violent crimes and distribution of drugs. No outstanding felony warrants. FORM 7) No record of disturbance of neighbors, damage to or destruction of property, living or housekeeping habits at prior residences, which adversely affects the health, safety or welfare of other tenants. 8) Willing and able to live cooperatively in a communal living situation and abide by the policies outlined in the Joseph House Rules of Occupancy and Rental Agreement addendums. 9) Willing to participate in the Supportive Services Program provided by Mercy House. 10) Actively work with a Mercy House case manager to create and implement a housing stabilization plan. 11) Willing to participate in annual recertification meetings to verify income and continued eligibility. Residents for the Joseph House Permanent Supportive Housing Program will be selected based on their eligibility as well as their need for low- income housing and The statutory purpose in leasing a socially and financially sound housing development, which provides not only a decent home and suitable living environment, but fosters economic and social diversity in the tenant body as a whole. FOODINUI 80A -11 FIRST AMENDMENT TO HOUSING DEVELOPMENT LOAN AGREEMENT AND AFFORDABLE HOUSING COVENANTS THIS FIRST AMENDMENT TO HOUSING DEVELOPMENT LOAN AGREEMENT AND AFFORDABLE HOUSING COVENANTS, made and entered into this I" clay of December, 2015, by and between MERCY HOUSE LIVING CENTERS, formerly imown as MERCY HOUSING TRANSITIONAL LIVING CENTERS, a California non - profit public benefit corporation ( "Developer "), the City of Santa Ana, a charter city and municipal corporation organized and existing under the Constitution and laws of the State of California ( "City "), and the Housing Authority of the City of Santa Ana acting as the Successor Housing Agency to the Community Redevelopment Agency of the City of Santa Ana ( "Successor Housing Agency"). RECITALS A. The City and Successor Housing Agency entered into a Housing. Development Loan Agreement and Affordable Housing Covenants with Developer, dated April 11, 2006, to provide financial assistance from Redevelopment funds and the United States Department of Housing and Urban Development ( "HUD ") under the HOME Investment Partnership Program ( "HOME Program ") for the rehabilitation of the Joseph House Project located at 210 East Sixteenth Street, Santa Ana, for the operation of a transitional living center for homeless, single men ("said Agreement"). B. Due to funding and policy changes at the federal level, Developer is proposing to modify the Joseph House transitional housing program to become a dual- purpose facility offering both transitional housing and permanent housing with supportive services for single, homeless men from the community. The proposed program modification from a transitional shelter to a dual- purpose model will include the following: (1) Transition two units of transitional housing into permanent housing with supportive services, offering low rental costs in compliance with HOME low rents to meet the needs of low- hncome homeless men in the community; (2) One unit will continue to operate as a transitional housing program; and (3) Leverage rapid re- housing funds to reduce the length of time clients stay at the shelter with the goal of connecting them to permanent affordable housing opporttmitics. C. In accordance with the terns and conditions of said Agreement, the Parties desire to amend said Agreement to allow the operation of permanent housing with supportive services in addition to transitional housing, NOW THEREFORE, in consideration of the mutual and respective covenants and promises hereinafter contained and made, and subject to all of the terms and conditions of said Agreement, except as herein modified, the parties agree as follows: 1. Section 1,1, Defined Terms, the first sentence of the definition of "Property" shall be amended in pertinent part to read as follows: ` The Property is located in the City of Santa Ana, and is used as a dual- purpose facility offering both transitional housing and permanent housing with supportive services for single, homeless men from the community, Section 5.4, Other Terns and Conditions of Loan, subsection (5) shall be amended to read as follows: "failure of Developer or a subsequent owner to use the Property for the purpose of transitional housing or permanent housing with supportive services. 3. Section 7.1, Use and Maintenance of the Property, subsection (B) shall be amended to read as follows: "Use the Property as a dual - purpose facility offering both transitional housing and permanent housing with supportive services for single, homeless men from the community, as detailed in the Developer's Plan attached hereto as Exhibit A and incorporated herein by this reference." 4. Except as hereinabove modified, all terms and conditions of said Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to said Agreement the date and year first above written. ATTEST: MARIA D. HUIZAR Clerk of the Council APPROVED AS TO FORM: CITY OF SANTA ANA DAVID CAVAZOS City Manager HOUSING AUTHORITY OF THE CITY OF SANTA ANA KELLY REENDERS Executive Director -- Housing Authority DEVELOPER MERCY HOUSE LIVING CENTERS FOODIMW EXHIBIT A DUAL PURPOSE FACILITY PLAN • l . Executive Summary Mercy House Living Centers is a 501(c)(3) non - profit organization operating in Orange County. Mercy House was founded in 1988 by Father Jerome T. Karcher with a vision to serve the homeless in our community. In the belief that every person is born with an inherent human dignity, and that homelessness is an affront to that dignity, our mission "to be a leader in ending homelessness by providing a unique system of dignified housing opportunities, programs and supportive services" drives all that we do. Mercy House was quickly grown from a single shelter serving 10 single men, to a full system of care designed to meet the needs of the homeless at all stages of their struggle. In the past year, Mercy House provided services to over 6,400 of our community's most vulnerable men, women, and children. Though our services have expanded and changed, our mission and reason for existence remains the same: to end the homelessness of all who enter our system of care. Organization Summary Mercy House Living Centers ( "Mercy House ") is a non - profit organization serving the homeless throughout Orange County, San Bernardino County, Riverside County, and Phoenix, Arizona. The non- profit was incorporated in 1988 and began operations of our first transitional shelter program in 1990. We have continued to successfully provide homeless service programs for over 25 years. In this time, we have created a complete system of care based on a blend of continuum of care and housing first models of ending homelessness. Our programs include homelessness prevention, emergency services and shelters, transitional housing, aftercare programs, rapid re- housing programs as well as permanent housing facilities. Because of the wide variety of services we provide, Mercy House staff have worked closely with many homeless subpopulations including, but not limited to: homeless families, adult men and women, veterans, women with children, chronically homeless individuals, persons living with HIV /AIDS, individuals overcoming substance abuse, and those who are physically and mentally disabled. Mission Mission Statement: To be a leader in ending homelessness by providing a unique system of dignified housing opportunities, programs and supportive services. Operational Statement: To end the cycle of homelessness of those who enter our system of care. 2014 -2015 Statistics • Mercy House prevented or ended the homelessness of 816 men, women, and children • Mercy House provided transitional housing to 218 individuals, successfully transitioning 70 of them into stable, permanent housing Mercy House's ongoing supportive housing programs were able to provide housing to 236 unduplicated individuals Mercy House served 4,852 homeless individuals through our Emergency Services programs including 536 parents and children through our Family Redirection Program Legal Entity Mercy House is a non profit 501(c)(3) organization founded in 1988 by Father Jerome T. Karcher. Mercy House has developed a continuum of care of provide homeless prevention, emergency shelter and services, transitional housing, and permanent housing with supportive services to homeless men, women, and children living in Orange County, San Bernardino County, Riverside County, and Phoenix, Arizona. Tax ID: 33-0315864 Until 2009, Mercy House was known as Mercy House Transitional Living Centers. With the development of the Rapid Re- Housing Program and the Family Redirection Program, it became clear that permanent housing had emerged as a more viable solution to ending homelessness for many clients. On February 6, 2009, Mercy House changed its name to Mercy House Living Centers. Keys to Organizational Success • Build and leverage strong, active board of directors. • Only engage in projects and services that support identified primary strategic programs • Continue to design and implement strict financial controls and accountability • Align programs and services to national best practices to ensure effective service, delivery, better housing outcomes and increased cost effectiveness. Orange County Housing Challenges According to the Orange County Community Indicators Report (2015), the following present I<ey indicators of homelessness and housing stability challenges for Orange County residents: Rental Affordability In 2015, the hourly wage needed to afford a one - bedroom unit in Orange County was $24.67, equivalent to an annual income of $51,320. This is down from $25.35 in 2014 and lower than the five -year average of $25.38. Workers earning above minimum wage, but below the Housing Wage of $24.67 may experience increased economic insecurity as a larger proportion of the earnings must go toward housing. A minimum -wage worker must work 110 hours per week to afford a one - bedroom unit at fair market rent in Orange County. .O M•. ORANGE COUNTYS HOUSING WAGE 15 HIGH COMPARED TO PEERS' $30 D Homeless Point -in -Time Count MINIMUM WAGE EARNER MUST WORK 110 HOURS PER WEEK TO AFFORD RENT' M4 soft fAli2 MAkKET RENTiMONFKLYj �aE1�tDIiDC.ri+. �1,$1z atr�s awestciRODM 31,044 $tG04 F1IIEEE DEkFlODtO SZ300 58.250 AMOUNT A"MB WDIAWItAtNA # 416 $ #QS MTMUKWAfttAKN" 0NAFFDRD TO FAY IN RENTMNTHLY) - w110 - NUMBEROF HOLAS PLA 9Yt£KA 126 MiPiiNll@ WAL%EEAANEPMU5T waFl3 V)Al FOMA0NF,aEANQM APART RENT The Homeless Point -in -Time Count and Survey is conducted every two years during the last part of January. The 2015 Point -in -Time Count revealed that the number of unsheltered homeless individuals increased since the 2013 count. A total of 2,201 unsheltered homeless individuals were found to be living on the streets of Orange County compared to the 1,678 individuals counted in 2013, This represents a 5% increase compared to the 2013 count. Of these 2,201 unsheltered individuals, a large majority (71 %) are single, adult men. Though single, adult men are overrepresented in the unsheltered homeless count, they have little access to transitional shelters, emergency shelters, and permanent supportive housing programs that are often designed to meet the needs of families, single women with children, those who have experienced domestic violence, the chronically homeless, orthose living with HIV /AIDS. 80A -17 Joseph House Program Mercy House first began operation of the Joseph House Transitional Shelter Program in 1990. It was designed to meet the needs of 10 homeless, single men within the community. Since that time, Joseph House rapidly expanded to provide shelter and supportive services to 21 homeless single men. Though homeless single men have consistently been overrepresented in Orange County Homeless Point - in -Time counts, the services available to them have not been able to meet their large numbers. As homeless services continue to grow and adapt to the needs of specific subpopulations including homeless families, the chronically homeless, individuals facing domestic violence and veterans, there continues to be a lack of services designed specifically for single, homeless men. As such, Mercy House made the strategic discussion to modify its current shelter stock to modify the Joseph House transitional program to provide both transitional housing and permanent housing with supportive services for single, homeless men within our community. Joseph House currently has three units, providing transitional shelter to 21 homeless, single men at a time. In repurposing from a transitional shelter to a dual - purpose model, Mercy House will undergo the following key program modifications: • Transition two units of transitional housing into permanent housing with supportive services, offering low rental costs to meet the needs of the low- income homeless men in our community • One unit will continue to operate as a transitional shelter program • Leverage rapid re- housing funds with the aim to reduce the length of time clients stay at the shelter with a goal of connecting them to housing opportunities Structure and Location Joseph House is located in the city of Santa Ana in the French Park neighborhood, Mercy House owns three properties in the same neighborhood and has been an active participant in the community since 1990. The Joseph House property has access to grocery stores, restaurants and public transportation. The property is comprised of four units, three of which are used for transitional housing. The three transitional housing units are 2- bedroom units with adequate cooking and hygiene facilities. Zoning and Uses Mercy House is currently operating Joseph House under a Conditional Use Permit that allows the housing of homeless single men. Rehabilitation for Use as a Dual- Purpose Facility The Joseph House facility would require little rehabilitation to transition to a dual - purpose facility. The property could benefit from some additional minor repairs, but is in good condition and is ready to immediately serve single men in transitional and permanent housing. • • and Program Implementation Strategies for Sustainability and leveraging Mercy House has consistently funded the operations of Joseph House as a transitional shelter for over 25 years and as such has garnered a variety of both public and private resources to support the project. In moving to a dual- purpose facility, Mercy House will effectively communicate the programmatic changes to these partners to ensure continued support of the project. As part of its resource development strategies, Mercy House is engaged in ongoing funding research that replaces, supplants or provides new funding opportunities. On -going Maintenance of the Facility Mercy House has on staff Maintenance Managers who are in charge of regular maintenance and repair of Mercy House's facilities including the Joseph House Facility. Additionally, Mercy House has connections to a network of professional service volunteers who provide pro -bono services such as plumbing, electrical and landscaping as needs should arise. Volunteer groups will be recruited to support facility beautification projects that include upgrades to the facility grounds and gardens, interior furniture replacement as well as interior and exterior painting projects. Mercy House also allocates a percentage of funding as replacement reserves that may be used for special projects to improve the facility, regular maintenance and replacement of furniture as needed. Programmatic Strategies and Outcomes The Joseph House Program will be designed as a dual - purpose facility. One of the three units will continue to provide temporary housing through a transitional shelter program to 7 single men at a time. Two of three units will provide permanent housing for 10 single men. Every participant in the Joseph House transitional and permanent housing program will be required to meet the definition of homelessness as set forth by HUD and will be required to be under 80% Area Median Income at time of entry and throughout their stay. Definition of Homelessness All clients receiving services through the Joseph House Transitional and Permanent Housing Program will be required to be homeless as defined by the HEARTH Act's Final Rule Defining Homelessness (76 FR 75994) published on December 5, 2011. Category 1 — Literal Homelessness (1) Individual or family who lacks a fixed, regular, and adequate nighttime residence, meaning: (1) . ' A .� Has a primary nighttime residence that is a public or private place not meant for human habitation; (II) Is living in a publicly or privately operated shelter designated to provide temporary living arrangements (including congregate shelters, transitional housing, and hotels and motels paid for by charitable organizations or by federal, state and local government programs); or (iii) Is exiting an institution where (s)he has resided for 90 days or less and who resided in an emergency shelter or place not meant for human habitation immediately before entering that Institution Transitional housing for homeless persons who originally came from the streets or emergency shelters. Category2 -- Imminent Risk of Homelessness (2) Individual or family who will imminently lose their primary nighttime residence, provided that: (i) Residence will be lost within 14 days of the date of application for homeless assistance; (ii) No subsequent residence has been identified; and (Iii) The individual orfamily lacks the resources or support networks needed to obtain other permanent housing. Category 3 — Homeless Under Other Statutes (3) Unaccompanled youth under 25 years of age, or families with Category 3 children and youth, who do not otherwise qualify as homeless under this definition, but who: (i) Are defined as homeless under the other listed federal statutes; (ii) Have not had a lease, ownership interest, or occupancy agreement in permanent housing during the 60 days priorto the homeless assistance application; (iii) Have experienced persistent instability as measured by two moves or more during in the preceding 60 days; and (iv) Can be expected to continue in such status for an extended period of time due to special needs or barriers Joseph House Transitional Housing Program One unit of the Joseph House facility will continue to provide temporary housing to single men through a transitional shelter program. Participants will be required to participate in supportive services including case management and life skills classes that focus on employment and permanent housing location. The targeted outcome for each participant will be long -term stable housing. At the point of entry, an assessment will be completed to identify every barrier to housing stability. The Identified barriers will be addressed through goal setting and accountability under the care and guidance under Mercy House staff. Rapid Re- Housing funds will be leveraged to assist individuals in exiting the program and entering permanent, stable housing as quickly as possible. The anticipated goals for the Transitional Housing Program are: 1) To shorten length of stay to increase bed turnover 2) Connect single men to available housing resources 3) Secure housing within the community In order to achieve these goals, Mercy House will employ the following strategies; 1) Seek training opportunities for program staff that provide best practice research on shortening lengths of stay Fi 2) Leverage and connect Mercy House's own rapid re- housing funds, Section 8, and other housing resources to provide support supportive services to single men 3) Increase Housing Search and Placement staffing and services to increase number of property and landlord relationships within the community. Create strategic partnerships with other service providers; advocate and support efforts for lower barriers of entry into transitional and other long -term programs The transitional component of Joseph House will provide services to 25 single, homeless men annually, Joseph House Permanent Housing Program The Joseph House Permanent Housing Program will be designed to provide low- income permanent housing with supportive services to 10 homeless, single men. Two units will be converted to permanent housing. Each unit has two bedrooms. One will bedroom in each unit will house 4 single men in permanent housing; the remaining bedroom will house 1 single homeless man. Bedrooms will not have private bathrooms. Each unit offers a communal kitchen, dining area, and living area with shared bathrooms. Mercy House staff will be available to provide required supportive services include case management and life skills classes as well as emergency and maintenance assistance. The targeted outcome for each individual will be long -term, stable housing. Each client will be provided with case management to identify barriers to permanent housing, with the ultimate goal being stable housing for each individual, whether that is through our permanent housing programs, or permanent housing outside of Mercy House's Continuum of Care. Eligibility for Admission To be eligible for admission to the Joseph House Permanent Housing Program, an applicant must be documented and of legal age (18 years of age or older). Applicants must be single men and homeless or at risk of homelessness and be willing to live in a shared space facility. All applicants will be considered individually. Applicants will be considered when they complete the application packet and the following criteria are met: J.) Applicant can exhibit documentation confirm homeless status 2) Applicant's verified minimum monthly gross income is $100 over the amount of resident's rent payment. 3) Household's annual income does not exceed the low- income limits (80% of area median income) as established by HUD. 4) Household income is such that applicant can satisfactorily meet their debt obligations without subtracting from other necessary living expenses. This includes payment of rent, current debt payments and basic necessities. 5) No eviction history for a period of 2 years prior to entry 6) No history of criminal convictions for sex offenses, violent crimes and distribution of drugs. No outstanding felony warrants. 80A -21 7) No record of disturbance of neighbors, damage to or destruction of property, living or housekeeping habits at prior residences, which adversely affects the health, safety or welfare of othertenants. 8) Willing and able to live cooperatively in a communal living situation and abide by the policies outlined in the Joseph House Rules of Occupancy and Rental Agreement addendums. 9) Willing to participate in the Supportive Services Program provided by Mercy House. 10) Actively work with a Mercy House case manager to create and implement a housing stabilization plan. 11) Willing to participate in annual recertification meetings to verify income and continued eligibility. Residents for the Joseph House Permanent Supportive Housing Program will be selected based on their eligibility as well as their need for low- income housing and The statutory purpose in leasing a socially and financially sound housing development, which provides not only a decent home and suitable living environment, but fosters economic and social diversity in the tenant body as a whole. 80A -22