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ADOPT A RESOLUTION TO ALLOCATE GRANT FUNDING FROM THE HOMELESS HOUSING, ASSISTANCE AND PREVENTION (HHAP) PROGRAM TO PERMANENT AND INTERIM HOUSING PROJECTS AND APPLY FOR, ACCEPT, AND APPROPRIATE GRANT FUNDING FROM HHAP ROUND 6
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a resolution to:
1. Approve and allocate the following HHAP recommendations for funding in the total of $3,886,680, which includes the following 5 projects:
• $409,010.00 to Children’s Home of Stockton for the Catalyst Project.
• $409,010.00 to Lutheran Social Services of Stockton for Project Hope.
• $409,010.00 to PREVAIL of Stockton for the Propel Project.
• $1,244,210.00 to St. Mary’s Community Services for Pathways Neighborhood.
• $1,415,440.00 to Delta Community Developers Corp. for Harding Way Apartments.
2. Authorize staff to apply for, accept, and appropriate grant funding for Round 6 of the Homeless Housing, Assistance and Prevention Grant Program.
3. Authorize the City Manager, or designee, to enter into and execute any associated documents and take appropriate and necessary actions to carry out the purpose and intent of this resolution.
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Summary
The State's HHAP funds are designed to support regionally coordinated efforts between the County, Continuum of Care (CoC) and the City to expand and develop local capacity to address immediate homelessness challenges throughout the state. HHAP funds are focused on moving homeless individuals and families into permanent housing and ensuring those individuals and families maintain their permanent housing.
Staff recommend that Council approve a resolution authorizing the allocation of HHAP funding to five projects. Staff further recommends Council authorize staff to apply for, accept, and appropriate grant funding for HHAP 6. The HHAP award amounts are formula-based; however, the City is still required to apply for funds. Approval of this recommendation will position the City to apply for funds just made available in March through the HCD NOFA application. In February, staff received notification that the City of Stockton potential award amount for HHAP 6 would be $11,531,786.79. The application is due in August 2025 and must be applied for in conjunction with San Joaquin County.
DISCUSSION
Background
On June 21, 2022, City Council adopted Resolution No. 2022-06-21-1203 (Attachment A - Resolution 2022-06-21-1203) to apply for, accept, and appropriate grant funding from the California Interagency Council on Homelessness (Cal ICH) for Round 3 of the HHAP Program. Cal ICH was the former HHAP oversight department and has been replaced by the Department of Housing and Community Development (HCD). Subsequently, on November 15, 2022, City Council approved a motion (Attachment B - Approved Motion 2022-11-15-1602) authorizing the submission of a grant application to apply for, accept, and appropriate grant funding for Round 4 of the HHAP Program. Initial obligation deadlines for Rounds 3 and 4 have been met. The final obligation of funds proposed by this resolution will complete allocation of those respective rounds and allow submittal of the application to receive HHAP 6.
Present Situation
The 2025 HHAP Rounds 3 & 4 NOFA was released February 6, 2025, and closed March 13, 2025. A total of 11 responses were received and reviewed by Economic Development Department (EDD) for HHAP funding eligibility.
• All projects were reviewed to determine HHAP eligibility for permanent and interim housing uses.
o 11 projects were eligible.
• Eligible projects were then reviewed to determine the capacity of meeting HHAP obligation and spending deadlines.
o 5 projects met this threshold.
The five eligible projects that could reasonably meet HHAP obligation and spending deadlines were subsequently evaluated and scored by the Review Team. Additionally, the five eligible project applications were shared with the County’s Neighborhood Preservation Department (NPD), who serves as the Collaborative Applicant for the CoC and is also a HHAP funding recipient, to ensure NPD agrees the projects align with regional housing and homeless plans.
Following thorough review, staff recommends funding the named projects:
• Children’s Home of Stockton for the Catalyst Project $409,010.
• Provides shelter and supportive services for Transitional Age Youth (TAY), ages 18-25. Catalyst is expanding from 18 to 24 beds. Services include case management, therapy, service linkages, and important resources for clients.
• Lutheran Social Services of Stockton for Project Hope $409,010.
• Provides 12 TAY program participants with shelter and case management, housing navigation, life skill development, employment support, and connection to community resources.
• PREVAIL of Stockton for the PROPEL Project $409,010.
• Providing Resources and Opportunities for Peers Experiencing Life (PROPEL). Safe House and Emergency Shelter for youth ages 12-17 and Opportunity House Emergency Shelter for youth ages 18-24.
• St. Mary’s Community Services for the Pathways Neighborhood $1,244,210.
• Providing low-barrier sheltering for clients, providing case management and wraparound services with a focus on obtaining and sustaining permanent housing.
• Delta Community Developers Corp. for the Harding Way Apartments $1,415,440.
• The funds will be used to rehabilitate the current structure to create 33 affordable housing units and 2 clinical offices to provide on-site Behavioral Health Services through San Joaquin County to mental health consumers and individuals experiencing substance abuse, as well as on-site laundry facilities.
All programs utilize the Coordinated Entry System (CES) and Homeless Management Information System (HMIS), both mandated for HHAP funding.
A more comprehensive outline is provided in Attachment C - HHAP Recommendations.
These projects support the Regional Goals (Attachment D).
HHAP 6 Application
In addition to allocating the final pieces of funding for HHAP Rounds 3 and 4, the attached resolution gives authority to the City Manager to apply for HHAP Round 6 funding.
HHAP 6 reflects the State’s priorities in prevention and expeditiously reducing unsheltered homelessness through homelessness prevention activities, sustaining existing interim and permanent housing solutions, and long-term sustainability of permanent affordable housing (Health and Safety Code section 50243(a)). To accomplish these goals, HHAP 6 requires applicants to update and continue to implement the regionally coordinated homelessness action plans that were created as a requirement of the HHAP 5 application. (Health and Safety Code section 50240).
HHAP 6 Application and Award Process
NOFA and Final Allocations Available February 2025
NOFA Application Walk-through March 18, 2025
Final Applications Due August 29, 2025
HCD reviews and approves application Rolling, Sept. - Dec. 2025
Obligation and expenditure requirements for each Round of HHAP are shown in Attachment E.
FINANCIAL SUMMARY
There will be no financial impact to the City’s General Fund or any other unrestricted fund as a result of this action. Funding to support the recommendations is budgeted and available in the Special Grant Fund (Fund 280, Sub-fund 282), Housing Division. If awarded, HHAP 6 funding will be appropriated in the Special Grant Fund (Fund 280, Sub-fund 282), Housing Division.
Attachment A - Resolution 2022-06-21-1203
Attachment B - Approved Motion 2022-11-15-1602
Attachment C - HHAP Recommendations
Attachment D - Regional Goals
Attachment E - HHAP Obligation and Expenditure Deadlines