REPORT TO SHASTA COUNTY BOARD OF SUPERVISORS

BOARD MEETING DATE:  November  22, 2022
CATEGORY:  Regular - Other Departments-1.

SUBJECT:

Receive a report concerning the Governor’s decision to withhold the distribution of certain funding to local agencies from the Homeless Housing Assistance and Prevention (HHAP) program and on the State's request to local agencies to sign a guidance letter no later than November 29, 2022, committing to perform certain actions related to addressing homelessness, in order to receive certain HHAP funding, and provide direction to staff on responding to the State’s request.

Supervisorial District No. :  ALL

DEPARTMENT CONTACT:  Jaclyn Disney, Director of Housing/Community Action Programs (530) 225-5160

STAFF REPORT APPROVED BY:  Patrick J. Minturn, Acting County Executive Officer

RECOMMENDATION

Receive a report concerning the Governor’s decision to withhold the distribution of certain funding to local agencies from the Homeless Housing Assistance and Prevention (HHAP) program and on the State's request to local agencies to sign a guidance letter no later than November 29, 2022, committing to perform certain actions related to addressing homelessness, in order to receive certain HHAP funding, and provide direction to staff on responding to the State’s request.

DISCUSSION

The Shasta County Housing and Community Action Agency (SCHCAA) is the Administrative Entity for the NorCal Continuum of Care (CoC) which encompasses seven counties. CoC efforts are partially funded through the state’s Homeless Housing, Assistance and Prevention (HHAP) program. On February 8, 2022, the Board of Supervisors authorized SCHCAA to apply for HHAP-3 funds on behalf of the CoC. The COC received a HHAP-3 disbursement of $975,867.82 for initial administrative steps, support for the annual homeless Point in Time Count, and the Homeless Management Information System (HMIS) database. The remaining HHAP-3 allocation is detailed in the table below.

The HHAP-3 application included a Homeless Action Plan (HAP) detailing how the funds would be spent, as required by Health and Safety Code (HSC) section 50220.7(b)(3)(A). Recently, the Governor expressed dissatisfaction with all of the HAP’s statewide. He opined that the work as delineated in those HAP’s would not make sufficient progress to address homelessness. He has paused HHAP-3 funding and called for changes in the HHAP-4 process.

Pursuant to the Governor’s suggestion, the Grants Division of the California Interagency Council on Homelessness (Cal ICH) has provided additional HHAP-4 guidance. Applicants shall sign and submit a standard “Guidance Letter” (enclosed). Applicants thereby profess to implement “best practices” to reduce the number of unsheltered homeless individuals. The NorCal CoC region is already implementing most or all of these practices. Upon submittal of compliant HHAP-4 applications, Cal ICH will release the paused HHAP-3 funding and the HHAP-4 process will begin. HHAP-4 applications shall be submitted by next Monday, November 29, 2022.

The Guidance Letter is related to HHAP funding. It is broadly consistent with our current practices. As such, the document is ostensibly within the signing authority as granted to the SCHCAA Director. However, the tenor if not the intent of the HHAP program has changed since the Board’s prior action. Staff seeks renewed Board direction with respect to the HHAP program in general and the disposition of the Guidance Letter in particular.

ALTERNATIVES

The Board may decline to provide direction to staff with regards to HHAP-3 funding at this time. Allocations may be forfeited.

OTHER AGENCY INVOLVEMENT

County Counsel has approved the recommendation and reviewed the attached letters. The SCHCAA Director has reviewed and approved the recommendation. The County Administrative Office has approved the recommendation.

FISCAL IMPACT

HHAP-3 is a state-funded program. No local match is required. If HHAP funding to the CoC is curtailed, all seven counties would be impacted.