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Shelter Plus Care Program HUD ApplicationMasterpiece on the Mississippi TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Shelter Plus Care Renewal Application DATE: September 28, 2011 Dubuque kited a1- Ainedca CNy 2007 The Shelter Plus Care Program provides rental assistance to homeless persons with disabilities. In 2006, the City applied in partnership with Project Concern and received a 5 -year grant award in the amount of $536,520. The funds are used to pay rents on behalf of qualifying persons, to private landlords. The Housing Department serves as administrator and fiscal agent for the funds; Project Concern works directly with program participants to locate suitable housing and provide required supportive services. Housing and Community Development Department Director David Harris recommends City Council approval of a renewal application to HUD for administration of the Shelter Plus Care Program. I concur with the recommendation and respectfully request Mayor and City Council approval. Michael C. Van Milligen MCVM:jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager David Harris, Housing and Community Development Department Director Masterpiece on the Mississippi Dubuque httgi Al- Amedcacity f 2007 TO: Michael Van Milligen, City Manager FROM: David Harris, Housing and Community Development Department SUBJECT: Shelter Plus Care Renewal Application DATE: 28 September 2011 Introduction The purpose of this memorandum is to request the City Council's authorization of a renewal application to HUD for administration of the Shelter Plus Care Program. Background The Shelter Plus Care Program provides rental assistance to homeless persons with disabilities. We applied in partnership with Project Concern, in 2006, and received a 5- year grant award in the amount of $536 520. The funds are used to pay rents in behalf of qualifying persons, to private landlords. The Housing Department serves as administrator and fiscal agent for the funds; Project Concern works directly with program participants to locate suitable housing and provide required supportive services. The program has been known as the Phoenix Housing Program. Discussion The one -year renewal application is now due to HUD. However, Project Concern has made a decision to withdraw as program sponsor, due to staffing and financial short- falls. The Housing Department has engaged in discussions with Catholic Charities and Hillcrest Family Services in an attempt to locate another sponsor. At this time, both agencies are evaluating their participation and a commitment has not been obtained. The application is due to the Iowa Finance Authority on 7 October. For this reason, time is of the essence for Council approval. The City may apply as both administrator and sponsor; this is the only option we have at this time. If an application is not submitted, the funds will be reallocated and the Phoenix Housing Program will terminate at the end of June 2012. A vulnerable population will lose housing assistance and again face homelessness. If either non - profit agency decides to make the commitment as sponsor, the application may be amended accordingly. If both decline, the City's application may be withdrawn. As the Housing Department is not staffed to provide the in- the -field services required by the grant, we could not proceed with the application without a partner sponsor. Another option might be to identify a source of funds to assist with staffing costs. Action Step The action requested of the City Council is to authorize an application to HUD for a Shelter Plus Care one -year renewal application. Failure to secure a partnership with a non - profit service agency to serve as program sponsor will result in withdrawal of the City's application. cc: Janet Walker, Assisted Housing Programs Supervisor