REPORT TO SHASTA COUNTY BOARD OF SUPERVISORS

BOARD MEETING DATE:  April  24, 2018
CATEGORY:  Consent - Health and Human Services-3.

SUBJECT:

Application for MHSA Funding to Provide Permanent Supportive Housing for Persons with Psychiatric Disabilities for the Development Project, Woodlands 2

Supervisorial District No. :  All

DEPARTMENT CONTACT:  Donnell Ewert, Director, Health and Human Services Agency, (530) 225-5899

STAFF REPORT APPROVED BY:  Donnell Ewert, Director, Health and Human Services Agency

RECOMMENDATION

Take the following actions: (1) Approve County support for PC Redding Apartments Limited Partnership’s (PCRA) application for Shasta County’s Mental Health Services Act (MHSA), Permanent Supportive Housing funds administered through the California Housing Finance Agency (Cal HFA) for the provision of permanent supportive housing for persons with psychiatric disabilities for the development project, Woodlands 2; (2) approve County participation in the Permanent Supportive Housing Program; and (3) delegate authority to the Health and Human Services Agency (HHSA) Director, or any HHSA Branch Director designated by the HHSA Director, to negotiate, sign, and submit the Cal HFA Local Government Special Needs Housing Program (SNHP) Finance Application documents, so long as they otherwise comply with Administrative Policy 6-101, Shasta County Contracts Manual: (a) Attachment A, Local Government Certification; (b) Attachment B-1, SNHP Regulated Unit Occupancy Restrictions; and (c) documents related to the Cal HFA SNHP Finance Application.

SUMMARY

PC Redding Apartments Limited Partnership’s (PCRA) wishes to apply for Shasta County’s MHSA Permanent Supportive Housing funds through the Cal HFA to provide permanent supportive housing for persons with psychiatric disabilities. This project would add 20 more units to The Woodlands project on Polk Street within the City of Redding, five of which would be designated for persons with psychiatric disabilities. The HHSA is seeking authorization for the HHSA Director, acting in his capacity as Mental Health Director, to sign documents included in the application related to Shasta County’s participation in the program.

DISCUSSION

Shasta County has $587,832 on deposit with the Cal HFA in the Local Government SNHP for the purpose of building permanent supportive housing and providing rent subsidies for low-income people with severe mental illness (SMI).  In 2013, the Board of Supervisors approved an investment of the majority of one-time MHSA housing funds to help finance The Woodlands, a 55-unit low income housing project in the City of Redding, in exchange for 19 one- and two-bedroom units to provide permanent supportive housing for adults with SMI, and for families with children with severe emotional disturbance.  The Woodlands opened on June 1, 2017, and is currently housing 34 individuals in the 19 units.

Originally, The Woodlands was proposed as a 75-unit apartment complex, but had to be scaled back to 55 units to better compete for tax credit financing.  The City of Redding still owns a piece of land adjacent to The Woodlands and would like to develop that land with 20 more apartment units as phase 2 of The Woodlands (Woodlands 2).  The City of Redding has asked PCRA, the entity that owns The Woodlands, to seek financing to build 20 additional units.  As public financing is central to acquiring the tax credit financing needed for such projects since the demise of redevelopment funding, PCRA approached HHSA about using Shasta County’s remaining MHSA housing funds for this project, in exchange for five one-bedroom units that would be dedicated to individuals with SMI.

More than 100 people are on The Woodlands’ one-bedroom waiting list. The demand for this type of housing far exceeds supply, and The Woodlands 2 would help create more capacity. Of the 19 MHSA clients who live at The Woodlands, 18 have been successful in maintaining permanent supportive housing for nearly one year. The on-site case manager, peer support specialist, and resident manager have worked collaboratively and diligently to ensure that residents have the support that they need to maintain housing stability.

Examples of strategies that the support team uses to achieve this goal include consumer-driven goal setting, recovery-based case management and education, the use of Wellness and Recovery Action Planning, and connection to community-based programs such as the Olberg Wellness Center.  These practices incorporate the principles of wellness and recovery that include affirmation and celebration of success, linkage to community-based support and social networks, development of life skills necessary for household/personal care management, and establishing a level of income that will sustain housing and assist members to achieve other, more independent housing goals they may have.  Supports available include mental health services, intensive case management, medication support, 24/7 crisis services, access to In-Home Supportive Services (IHSS) and nursing staff, vocational services in collaboration with the State Department of Rehabilitation, benefit assistance, peer-to-peer support, and transportation assistance.  The use of the Full Service Partner (FSP) flexible funding enables enrolled program participants to receive individualized support and “whatever it takes” services including social skill building activities, grocery shopping, and the purchase of ancillary necessities. A draft Supportive Services Plan (Section D), to document the example strategies mentioned above, is a Cal HFA application requirement. 

An additional permanent supportive housing project for individuals with SMI is in the early planning stages for the intermountain area of Shasta County. Collaborators for that project include HHSA, the Shasta County Housing Authority, Northern Valley Catholic Social Service (NVCSS), and Partnership HealthPlan of California (PHC).  It is anticipated that no MHSA financing will be required for that project.

Today’s action would provide the same authority as the Board of Supervisors provided on December 3, 2013, when it authorized the HHSA Director to sign Cal HFA’s SNHP application documents for the first phase of The Woodlands, and the original stakeholder input process.

ALTERNATIVES

An alternative is to not approve County participation in this project with Cal HFA SNHP funds, and instruct County staff to seek a different project for funding.

OTHER AGENCY INVOLVEMENT

MHSA stakeholders supported approval of the Cal HFA application during a meeting on April 9, 2018. During a special meeting on April 10, 2018, the Mental Health, Alcohol and Drug Advisory Board (MHADAB) recommended that the Board of Supervisors approve the application. Section D went into its required 30-day public comment period on April 16, 2018. The public comment period closes on May 16, 2018, and MHADAB will hold a public hearing on June 6, 2018, and determine whether to recommend approval to the Board of Supervisors at their June 12, 2018 meeting. County Counsel will review the final agreement as to form prior to signature.  Risk Management will review the agreement prior to signature.

FINANCING

Cal HFA will be responsible for distribution of the funds directly to PCRA.  PCRA is solely responsible for repayment of the loan for this project.  The County has no on-going financial responsibility for this project beyond the provision of supportive services and program administration requirements, which will be funded through the MHSA Community Services and Supports, Full Service Partnership program budget, which has been an active program since 2006.  There is no General Fund impact associated with approval of the recommendation.