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  8.B.       
Meeting Date: 05/17/2022  
From: Kristine Pavlik, Housing and Grants Administrator

TITLE:
Consideration and Approval of a Grant Agreement:  Approve the Grant Agreement between the City of Flagstaff and Flagstaff Shelter Services utilizing $135,592.57 of the American Rescue Plan Act Coronavirus Local Fiscal Recovery Funds.
STAFF RECOMMENDED ACTION:
  1. Approve the Grant Agreement between the City of Flagstaff and Flagstaff Shelter Services for “The Crown: Housing as Healthcare” project utilizing $135,592.57 of American Rescue Plan Act Coronavirus Local Fiscal Recovery Funds; and 
  2. Authorize the City Manager to execute the necessary documents.
Executive Summary:
Staff seeks approval of a Grant Agreement between the City of Flagstaff (City) and Flagstaff Shelter Services (FSS) utilizing a portion of the City’s American Rescue Plan Act Coronavirus Local Fiscal Recovery Funds (Local Recovery Funds) to respond to the COVID-19 public health emergency and its negative economic impacts. The Local Recovery Funds in the amount of $135,592.57 will be used to provide safe, non-congregate, emergency shelter at the 56-unit Crown Motel, which is now owned and operated by FSS. The project will provide shelter and services to 600 unique individuals experiencing homeless, including, individuals with increased vulnerability to the Coronavirus and/or are currently infected with COVID-19.
Financial Impact:
On October 12, 2021, City Council provided direction on the use of Local Recovery Funds. City Council allocated $400,000 (024-09-402-6321-1-4273) to congregate care services, such as homeless shelters, within the Public Health funding category.

On February 1, 2022, City Council ratified a grant agreement with FSS for the emergency distribution of $100,000 to respond to the public health risk from the pandemic which caused a financial strain on the non-profit.

After emergency allocations, there was $224,126.57 remaining of the Local Recovery Funds allocated by City Council for Congregate Care Services.
Policy Impact:
The funding provided will support services that will help protect public health and individuals experiencing homelessness.
Connection to PBB Priorities/Objectives, Carbon Neutrality Plan & Regional Plan:
Priority Based Budget Key Community Priorities and Objectives

Safe & Healthy Community
  • Support social services, community partners and housing opportunities.
Inclusive & Engaged Community
  • Advance social equity and social justice in Flagstaff by supporting social services. 
Regional Plan

Goal NH.5. Eliminate Homelessness
  • Policy NH.5.1. Provide adequate resources for families with children experiencing homelessness.
  • Policy NH.5.2. Provide adequate resources for individuals experiencing homelessness.
  • Policy NH.5.3. Support and expand programs that prevent homelessness.
Has There Been Previous Council Decision on This:
On October 12, 2021, City Council provided direction as to the use of the Local Recovery Funds and allocated $400,000 to congregate care services, such as homeless shelters, within the Public Health funding category. 

On February 1, 2022, City Council ratified a grant agreement with FSS for an emergency allocation of Local Recovery Funds, utilizing $100,000 to support ongoing pandemic response and the provision of non-congregate emergency shelter services.

On April 19, 2022, $25,174 of Community Development Block Grant public service funds were allocated by City Council to FSS for the operation of the 56-unit Crown Motel administration.

In addition to the CDBG funds, FSS was selected through an open and competitive procurement to receive $135,592.57 of Local Recovery Funds for "The Crown: Housing as Healthcare" project. Staff seeks to distribute the monies through this Grant Agreement.
Options and Alternatives:
  1. Approve the Grant Agreement between the City and FSS for “The Crown: Housing as Healthcare” project utilizing $135,592.57 of Local Recovery Funds; or
  2. Do not approve the Grant Agreement and direct staff to initiate another solicitation.
Background/History:
The City is a recipient of certain funds through the American Rescue Plan Act, Pub. L. No. 117-2 (March 11, 2021), which authorizes the U.S. Department of the Treasury to make payments from the Coronavirus Local Fiscal Recovery Fund. On October 12, 2021, City Council allocated $400,000 to congregate care services, such as homeless shelters, within the Public Health funding category.

The City Council distributed certain emergency allocations, including $100,000 to FSS, which left $224,126.57 remaining of the Local Recovery Funds for Congregate Care Services. In order to facilitate disbursement of funding into the Community for services for individuals experiencing homeless as quickly as possible, the remaining funds were included in the City of Flagstaff's 2022 Community Development Block Grant Notice of Funding Available (NoFA) and application process. Proposals were ranked alongside CDBG proposals by a Ranking Committee comprised of City Staff, a Housing Commission member, one ALN representative (A League of Neighborhoods) and two community members. 

Applications were received by City staff on February 22, 2022. FSS submitted an application and requested $300,000 of Local Recovery Funds for operational expenses of non-congregate emergency shelter through “The Crown: Housing as Healthcare” project. The Ranking Committee recommended allocating $135,592.57 to FSS. On April 19, 2022, an additional $25,174.00 of CDBG public service funds were allocated for this project by City Council.
Key Considerations:
The FSS's “The Crown: Housing as Healthcare” non-congregate shelter services project will provide safe, non-congregate, emergency shelter at the 56-unit Crown Motel, owned and operated by FSS. The project will serve 600 unique Flagstaff residents experiencing homelessness including individuals with increased vulnerability to the Coronavirus and/or currently infected with COVID-19. In addition to emergency shelter, residents will have access to nutritious meals, warm showers, laundry facilities, culturally sensitive medical and behavioral health care, clothing, hygiene supplies, day services, and evidence-based housing placement services.

Local Recovery Funds will be utilized for operational expenses including utilities, phone/internet, property maintenance and repairs, program supplies and/or insurance as well as wages for Motel Shelter Coordinators that will be staffed 24/7.
Community Benefits and Considerations:
Congregate shelter has been found to promote virus transmission, including transmission of COVID-19; and a congregate shelter setting is not appropriate for individuals who are COVID-positive or who have recently been exposed as it does not allow for adequate quarantining or isolating.
 
FSS’s acquisition of The Crown Hotel will allow the agency to provide a safe and suitable living environment (via motel rooms serving as non-congregate, emergency shelter) for individuals and families in crisis and/or experiencing homelessness until permanent housing can be secured. The non-congregate, emergency shelter program provides a safe living environment without barriers or preconditions (such as sobriety or COVID status) to an estimated 1,200 unduplicated people annually. This motel shelter program includes families as the 56-room former motel site includes 12 family units. Families experiencing homelessness- particularly those that include fathers- will benefit greatly from this project as it will fill an urgent community need for shelter space for two-parent households and single fathers with children. Currently, the City only has the capacity to serve three of these families at a time. There is a desperate need for emergency shelter space that allows fathers to stay with their children. This distribution will help keep parents and children in crisis together and provide a suitable living environment by ensuring there is safe, barrier-free space and services for entire families.

The Crown: Housing as Healthcare project will increase the capacity of the FSS emergency shelter allowing FSS to help more individuals and families in crisis to become stably housed. This will be achieved through culturally relevant supportive services, housing-focused case management, and community partnerships. FSS already operates a successful housing program that will be accessible to clients in non-congregate shelter with on-site case management among a variety of other critical services.
Community Involvement:
City Council discussed Local Recovery Funds allocation amounts and categories for funding at the City Council work session on September 7, 2021, and provided direction on use of the Local Recovery Funds on October 12, 2021. These meetings were held in accordance with Open Meeting Law and include a public participation process allowing for public comments. There was an open and competitive application process for distribution of certain Local Recovery Funds.
 
The applications received by City Staff for ARPA Local Recovery Funds through the 2022 CDBG NoFA and application process were ranked by the CDBG Ranking Committee comprised of City Staff, a Housing Commission member, a representative from ALN (A League of Neighborhoods) and two community experts.
Attachments
FSS The Crown HAH Unsigned Contract


    

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