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HomeMy WebLinkAboutItem 12i - Homeless Prevention and Diversion Program Funds DATE: May 17, 2022 TO: Honorable Mayor and City Council FROM: Jason Kruckeberg, Assistant City Manager/Development Services Director By: Tim Schwehr, Economic Development Manager SUBJECT: ALLOCATE $250,000 IN AMERICAN RESCUE PLAN ACT (“ARPA”) FUNDS TO THE HOMELESS PREVENTION AND DIVERSION PROGRAM Recommended Action: Approve SUMMARY The Arcadia Homeless Prevention and Diversion Program assists Arcadia residents vulnerable to becoming homeless with short-term financial assistance for rent, essential bills and services, and other items that help them to stay housed. In March 2022, the Arcadia City Council directed staff to proceed with allocating $250,000 in American Rescue Plan Act (“ARPA”) funds to this program. It is recommended that the City Council approve the allocation of $250,000 in ARPA funds to the Homeless Prevention and Diversion Program. BACKGROUND In October 2020, the City received a grant through the San Gabriel Valley Council of Governments (“SGVCOG”) to implement a new Homeless Prevention and Diversion Program, also known as the Financial Assistance Program. This program provides short-term financial assistance to Arcadia residents for rent, essential bills and services, and other related expenses. The goal of this program is to prevent at-risk Arcadia residents from becoming chronically homeless. The City currently partners with Union Station Homeless Services (“USHS”) to initiate and facilitate problem-solving conversations with residents and identify specific actions needed to ensure they remain housed at their current residence or find new housing. Since its inception in October 2020, the program has received grants totaling approximately $50,000. As of March 1, 2022, $37,292 of this funding has been expended with 18 at-risk Arcadia residents assisted to date. Homeless Prevention Program ARPA Allocation May 17, 2022 Page 2 of 2 DISCUSSION In March 2022, the City Council directed staff to allocate an additional $250,000 in funding to the Homeless Prevention and Diversion Program using a portion of the City’s American Rescue Plan Act (“ARPA”) funding. The $250,000 allocation of ARPA funds will provide a stable source of funding for this program for multiple years. The program will continue to be managed by the Recreation and Community Services Department through a partnership with Union Station Homeless Services or another similar provider. Following approval of this item by the City Council, the funds will be made available for use beginning in June 2022. ENVIRONMENTAL ANALYSIS The proposed action does not constitute a project under the California Environmental Quality Act (“CEQA”), and it can be seen with certainty that it will have no impact on the environment. Thus, this matter is exempt under CEQA. FISCAL IMPACT The City has $8,865,000 in American Rescue Plan Act (“ARPA”) funding available to use for various purposes, including economic assistance. Allocating $250,000 of the City’s ARPA funds to the Homeless Prevention and Diversion Program will provide a stable source of funding to this program. If ARPA funds are not used, then General Fund monies would be required once the initial grant funding expires or is fully expended. The City will continue pursuing grants for homelessness prevention and housing programs that could be used for this program, either in addition to or in lieu of these ARPA funds. RECOMMENDATION It is recommended that the City Council determine that this action does not constitute a project and is therefore, exempt under, the California Environmental Quality Act (“CEQA”); and approve the allocation of $250,000 in American Rescue Plan Act (“ARPA”) funds to the Homeless Prevention and Diversion Program.