City Council Meeting: November 13, 2007

Agenda Item: 1-C

To:                   Mayor and City Council

 

From:              Andy Agle, Director of Housing and Economic Development

                        Barbara Stinchfield, Director of Community and Cultural Services                   

 

Subject:          Housing Trust Fund Loan to Upward Bound House for a Regional Emergency Shelter for Families with Children located in Culver City

 

Recommended Action

Staff recommends that the City Council:

1)     approve a housing trust fund loan to Upward Bound House in an amount not to exceed $400,000 for the acquisition of a twenty-unit motel at 12841 West Washington Boulevard in Culver City as Santa Monica’s contribution toward a regional emergency shelter for homeless families with children; and

2)     authorize the City Manager to negotiate and execute all documents necessary to provide this funding.

 

Executive Summary

Upward Bound House, a Santa Monica based nonprofit organization, has applied for Housing Trust Fund financing of $400,000 toward the acquisition of an existing twenty-unit motel located at 12841 West Washington Boulevard in Culver City for use as a regional emergency shelter for families.  Typically, such financing is approved administratively pursuant to the Housing Trust Fund Guidelines adopted by the City Council.  However, due to the location of the proposed project outside of the City of Santa Monica, Council approval is required.  Currently, the City of Beverly Hills, City of Los Angeles, County of Los Angeles and the State of California have committed funding for the development.  If approved, and pending the conditional use permit from Culver City, the motel will be purchased and renovated for use as a 72-bed emergency shelter for homeless families with minor children.  The emergency shelter will provide case management and support services targeted to the goal of permanent housing for homeless families with minor children and would be deed restricted for a period of at least 55 years.  (See loan terms in Attachment A)

 

Discussion

The City’s current Housing Element and Consolidated Plan have identified homeless individuals and families in Santa Monica for priority assistance.  The action plan to address homelessness includes working collaboratively with nonprofit agencies and other jurisdictions in the region to facilitate the provision of emergency, transitional and permanent housing for the homeless, including homeless families with children.  Addressing homelessness in Santa Monica involves addressing homelessness in all of Los Angeles County, including the Westside region.  The City of Santa Monica is one entity in a regional effort that requires the engagement of other public entities and private area-wide partners.  The development of a regional emergency shelter for families with children in conjunction with Culver City, Beverly Hills, City of Los Angeles and County of Los Angeles would further a regional ”fair share” strategy regarding homelessness and directly benefit homeless families on the Westside, including those in Santa Monica.

The proposed emergency shelter will be located in an area of Culver City that is adjacent to Venice, Mar Vista and the unincorporated area of Marina Del Rey.  While relatively close to Santa Monica, this project responds directly to Santa Monica’s call for regional responsibility by locating the facility outside Santa Monica and obtaining capital and operating support from other jurisdictions and entities.  Further, the program and services provided will be targeted toward the transition from homelessness to permanent housing as rapidly as possible, an approach known as “Housing First”. 

 

If approved, this will be the third City funded homeless facility located outside the City of Santa Monica and funded jointly with other jurisdictions.  In September of 1995 Council authorized a housing trust fund loan of $400,000 in federal HOME funds to New Directions, Inc. for the development of a 156 bed facility for homeless veterans on the grounds of the West Los Angeles Veterans Administration.  The New Directions development is also a regionally funded project, receiving funding from HUD and the cities of Los Angeles, Beverly Hills, Culver City and Santa Monica.  In June of 2006 Council authorized $75,000 in one-time funds to St Joseph Center’s Homeless Services Center located in Venice.  St Joseph also received funding from the City of Los Angeles and the County of Los Angeles to identify and rehabilitate a site on Lincoln Boulevard in Venice.  Other than being outside the City of Santa Monica, The Upward Bound House homeless facility complies with the City’s Housing Trust Fund Guidelines. 

 

 

 

Developer Background

Upward Bound House Inc, located in Santa Monica, is a non-profit organization established specifically to deal with the unmet housing and social service needs of homeless families and very low-income elderly.  Since 1990, UBH has developed and operated three projects: 

·        Family Place, is a transitional housing development for families with children located in Santa Monica.  Constructed in 1997, the twenty one-unit development provides free housing for families who agree to participate in supportive services designed to assist them to transition to permanent housing and to remain permanently housed.  Although the length of stay may be up to twelve months, most families stay six to ten months before moving into their own apartment.  Family Place was financed in part with City of Santa Monica Housing Trust Funds loan of $990,000.

 

·        Senior Villa, is a permanent housing development for very low-income seniors located two blocks north of Wilshire Boulevard on 11th Street in Santa Monica.  This 70 unit, three-story structure over subterranean parking was built in 2000 and financed in part with a HUD 202 grant and a City Housing Trust Fund loan of $1,851,000.  In addition to permanent housing, Senior Villa provides services for continued independent living and assistance to the disabled and frail elderly. 

 

·        Intergenerational Center, is a program that provides a link between three generations.  This program builds relationships and community among the residents of Family Place, Senior Villa and the surrounding neighborhood.  A comprehensive children’s program provides educational and recreational activities to children living at Family Place.

 

Project Description

The proposed emergency shelter will provide homeless families with 18 units of emergency housing.  Each room, with a maximum of four individuals per room, will provide safe shelter for up to 72 adults and children at any one time.  Two additional on-site residential manager apartments will provide 24/7 supervision of the facility.  All families will participate in services designed to prepare them for transitional housing or ”Housing First”, a move directly into permanent affordable housing.  Families may stay at the facility for up to 90 days, as long as they comply with facility rules and their agreed upon social service plan.  Current maximum incomes for eligible very low-income families (50% of area median income) will range from approximately $29,600 for a two-person household to $42,900 for a six-person household.

 

Project Services

The proposed Upward Bound House Culver City emergency family shelter will utilize a similar service model as Upward Bound House’s existing Family Place, but will serve as an emergency shelter rather than transitional housing, housing families with minor children for up to 90 days.  Upon enrollment into the program, families will develop a plan to achieve stabilization and either prepare for placement in transitional or permanent housing.  The facility, if approved, will be an additional step in the continuum of care for homeless families on the Westside and will help Westside families with children stay in the geographical area facilitating school attendance, parental employment and proximity to social services.  There is currently no emergency shelter on the Westside of Los Angeles that serves homeless families in custody of minor children.

 

Within twenty-four hours of admission to the shelter, Upward Bound House case managers will work with clients on development of an individualized plan.  The plan will include personal counseling, goal setting, information and referral and a daily and weekly schedule to chart progress toward their goals.  Supportive services to assist clients to meet their goals will include, but not be limited to, employment assistance, child care and child enrichment activities, health services, legal services, money management classes, independent living skills, transportation, and housing placement assistance.   

 

Benefits to Santa Monica

The Upward Bound House Culver City shelter will benefit the City of Santa Monica in two ways.  First, the intake process has been designed to discourage homeless families from outside from coming to Santa Monica agencies in search of shelter and secondly, the project can be a source of shelter and services for Santa Monica families experiencing homelessness.

 

Upward Bound House will conduct client in-takes for its Culver City shelter at partner agencies located outside of Santa Monica.  This is so that families from outside the area are not drawn to Santa Monica providers in search of an emergency shelter bed.  If a partner agency located in Santa Monica has a family they think might be suitable for Upward Bound House’s Culver City shelter, they will refer that family to a partner agency that is located outside of Santa Monica where Upward Bound House  will conduct the client in-take for the Culver City shelter.  Upward Bound House will make every effort to help find appropriate placements outside of Santa Monica for families not eligible for the Culver City project and for those families put on the wait list for the project.  No agencies based in Santa Monica will be mentioned in any advertising or literature for the shelter produced by Upward Bound House. 

Upward Bound House remains committed to serving and supporting Santa Monica homeless families, as such consideration for the emergency shelter program will be given to families who are evicted from a Santa Monica address.

 

Project Funding

Upward Bound House is requesting $400,000 in funding from the City of Santa Monica to assist in the purchase of a twenty-unit motel on Washington Boulevard in Culver City to serve as an emergency family shelter for homeless families with minor children.  The total acquisition and renovation cost of approximately $3,500,000 will be shared as part of a collaborative “fair share” regional approach to addressing homeless on the Westside. 

 

Upward Bound House currently has an option to purchase the property for $3,000,000.  A City-commissioned appraisal of the property was completed in November 2006 and updated September 13, 2007 and estimated the value of the property at $2,885,000.  The Upward Bound House purchase price is within 3.8% of the appraised value.  Typically, a purchase price within five percent of the appraised value is acceptable.  The total development cost of acquiring and improving the property is estimated at $3,500,000 or $175,000 per unit, or $48,611 per shelter bed.  The City total commitment of $400,000, if approved, would be $20,000 per unit or, $5,556 per shelter bed.  In addition to the purchase price and estimated cost of the rehabilitation work, the total cost includes expenses for environmental consultants, architects, permit fees, community outreach, capitalized replacement reserves and contingency funds.  Upward Bound House is not requesting a developer fee.  There will be no bank financing on the development as there will be no rental income from the shelter to support any debt financing. 

 

Table 1 summarizes the sources and uses of the proposed financing. 

Table 1


Total Estimated Development Costs

Acquisition

$3,000,000 

Renovation

$380,000

Other Development Costs

$120,000    

TOTAL:

$  3,500,000

Total Estimated Funding Sources

State Emergency Housing Assistance Program (EHAP)

$1,000,000

County of Los Angeles                                

$750,000

City of Los Angeles                                     

$400,000

City of Beverly Hills                                      

$200,000

Foundations and Fundraising                     

$750,000

City of Santa Monica

$400,000

TOTAL:

$  3,500,000

 

The structure was built in 1953 and has twenty units of which eighteen are one-bedroom units and two units are two-bedroom units.  The property is in good physical condition needing only minor renovation to convert to an emergency shelter.  The property also contains a laundry room, 16 parking spaces, is on a bus route and is approximately four miles from Santa Monica.

 

The rehabilitation and remediation of the property involves exterior and interior improvements.  The exterior work includes roofing repairs, stucco repairs, painting and landscape improvements.  The interior work includes installation of a fire safety system, carpeting and vinyl flooring, plumbing and light fixtures, painting the unit interiors, and lead and asbestos removal as needed.  The cost of all renovation work is estimated at $380,000.

 

The terms of the proposed City financing are summarized in Attachment A and are consistent with other affordable housing loans.  The source of the City of Santa Monica financing is federal Community Development Block Grant (CDBG) funds. 

 

Operating Budget

Upward Bound House proposes to cover annual property and program operating costs through grants from a diverse group of funding sources.  Anticipated sources for operating funds include: The Los Angeles County Homeless Initiative Fund,  Los Angeles County Board of Supervisor discretionary funds and other governmental support including federal, state and local assistance and private foundations and fundraising.  Upward Bound House has successfully funded the operation of its Family Place transitional development over the last ten years from a combination of ongoing public and private grants and fundraising.  Staff anticipates that Upward Bound House will be successful in fund raising for the operation of the Culver City shelter.

 

Commission Action

The Housing Commission, at its September 20, 2007 meeting received information from staff and Upward Bound House staff, and unanimously supported the proposed development.  The Social Services Commission met on October 20, 2007 and voted unanimously to support the project.

 

Environmental Analysis

The acquisition and proposed remodeling using federal funds requires an environmental analysis.  A finding of no significant impact and a request for the use of CDBG funds was published on October 10, 2007, and transmitted to the local HUD office on October 26, 2007.  Staff anticipates receiving the HUD release of funds the week of November 12, 2007.

 

Budget/Financial Impact

The housing trust fund loan amount to be awarded to Upward Bound House is not to exceed $400,000.  Funds are available in account H19005006.589000.

 

 

 

 

 

 

 

 

 

Prepared by:

Housing and Human Services Staff

 

 

Approved:

 

Approved:

 

 

 

 

 

 

 

 

 

Andy Agle, Director,

Housing and Economic Development

 

Barbara Stinchfield, Director,

Community and Cultural Services

 

Forwarded to Council:

 

 

 

 

P. Lamont Ewell

City Manager

 

 

ATTACHMENTS:     

 

Attachment A – Loan Term Details

 

Attachment B – Social Service Commission Letter