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ADOPT A RESOLUTION TO ALLOCATE GRANT FUNDING FROM THE HOMELESS HOUSING, ASSISTANCE AND PREVENTION (HHAP) PROGRAM TO INTERIM HOUSING
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RECOMMENDATION
It is recommended that the City Council adopt a resolution to:
1. Approve and allocate HHAP funding as follows:
• $18,148.61 to Children’s Home of Stockton for the Catalyst Project.
2. Authorize the City Manager, or designee, to enter into and execute any associated documents and take whatever actions are appropriate and necessary to carry out the purpose and intent of this resolution.
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Summary
Staff recommends that Council approve a resolution authorizing the allocation of HHAP funding in the amount of $18,148.61 to Children’s Home of Stockton for the Catalyst Project. This is a recapture of HHAP 1 funding previously obligated to Sacramento Self Help for their Stockton operations, which was unexpended due to the organization’s bankruptcy during the contract period. Legal proceedings provided a delay in the ability to re-obligate the funding in its entirety. It was staff’s understanding under the HHAP contract that if the funds were not expended by the contract deadline of June 30, 2025, the City funding must be returned to the state. While working with the state, staff was able to negotiate one last opportunity to program the funding for use. The state has agreed to extend an opportunity for the City to award this funding to a previous HHAP awardee who can expend the additional funding prior to April 2026. Staff reviewed the new state direction and recommends the Children’s Home of Stockton, Catalyst Project (Children’s Home) as a proven, eligible recipient. Children’s Home has a track record of successful projects, ability to meet grant funding reporting obligations, and meets the Council’s goals of supporting the City’s youth.
DISCUSSION
Background
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.
All funding for HHAP Round 1 was previously obligated through City Council approval on November 17, 2020 (Attachment A - Resolution 2020-11-17-1402). This funding was originally allocated to Sacramento Self-Help, Stockton operation, in the amount of $258,345.15. During the contracting period the organization ceased operations and subsequently filed for bankruptcy, before expending the full amount. Legal proceedings delayed the reallocation of the remaining funding of $18,148.61.
Present Situation
The Department of Housing and Community Development (HCD) had previously mentioned in monthly office hours that unexpended funding would be recaptured by the state. Staff worked with HCD to either find a solution to utilize the remaining funding or return it if reallocation was not possible. Recent communication from HCD advised that the remaining HHAP 1 funding should be, if possible, allocated to an organization that received funding in the initial round and expended prior to the submission of the Annual Report due April 1, 2026.
The Children’s Home of Stockton received HHAP Round 1 funding and is currently under contract for the same scope supported by funding from Rounds 3 and 4. This resolution would allow for the amendment of the current contract to support the Catalyst Project. This project provides shelter and supportive services for Transitional Age Youth (TAY), ages 18-25, experiencing, or at risk of homelessness in Stockton over a 24-month period. Services will include safe housing in three facilities, individualized case management, behavioral health support, life skills development, education and employment assistance. The program will support TAY participants with linkages to a coordinated network of community partners to ensure housing stability and self-sufficiency.
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.
Attachment A - Resolution 2020-11-17-1402