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Presentation, discussion, and possible action regarding conditional awards of HOME-American Rescue Plan Act (HOME-ARP) Nonprofit Capacity Building and Operating Assistance with reservations for Non-Congregate Shelter Development in accordance with the Department’s HOME-ARP Allocation Plan First Amendment
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RECOMMENDED ACTION
recommendation
WHEREAS, the Texas Department of Housing and Community Affairs (“TDHCA” or “the Department”) programmed $3,324,229 of the HOME-ARP funding into nonprofit capacity building and operating (NCO) costs to support organizations in successfully carrying out HOME-ARP non-congregate shelter (NCS) development, and programmed $56,511,887 in NCS development;
WHEREAS, on April 13, 2023, the Department’s Governing Board approved an amendment to TDHCA’s HOME-ARP Allocation Plan to adjust the method of distribution for the NCO and NCS to target the funds to Texas areas with high rates of unsheltered homelessness and high costs of living for nonprofits that are in good standing and have prior experience with innovative shelter or homeless services, and released the amendment for a 15-day public comment period;
WHEREAS, the public comment period ended May 2, 2023, and no substantive public comment was received. The Department submitted its amendment (First Amendment) to the Department of Housing and Urban Development (HUD) for approval and received no comment from HUD within the review period signifying the amendment is considered accepted;
WHEREAS, in accordance with the HOME-ARP Allocation Plan First Amendment (First Amendment), the Department has identified The Other Ones Foundation and The Downtown Austin Alliance as organizations that may meet the required criteria and are within a targeted area;
WHEREAS, staff recommends the Board approve authorization to conditionally award NCO and make a reservation for NCS development to The Other Ones Foundation and/or The Downtown Austin Alliance or a partnership of organizations including The Other Ones Foundation and Downtown Austin Alliance and an organization(s) that meets the criteria outlined in the First Amendment and identified in the Invitation to Apply; and
WHEREAS, the NCO award is conditioned on completion of the Invitation to Apply;
NOW, therefore, it is hereby
RESOLVED, an award of $3,324,229 in HOME-ARP NCO to The Other Ones Foundation and/or The Downtown Austin Alliance or a partnership of organizations identified in the Invitation to Apply is hereby approved in the form presented at this meeting, subject to conditions as outlined in the First Amendment;
FURTHER RESOLVED, a reservation of $56,511,887 for NCS development(s) for an entity or entity to be formed by these organizations in one or more locations in Austin, subject to conditions outlined in the First Amendment and completion of the Invitation to Apply; and
FURTHER RESOLVED, that the Board’s approval is conditioned upon satisfaction of all conditions of HOME-ARP program review, and completion of any other reviews required to assure compliance with the applicable rules and requirements including the Previous Participation Review by the Department per 10 TAC §1.302, and that the organizations are recommended for an award or an award with Conditions by the Executive Award Review and Advisory Committee.
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BACKGROUND
TDHCA was allocated $132,969,147 of funds from the U.S. Department of Housing and Urban Development (HUD) under Section 3205 of the American Rescue Plan Act. HUD issued waivers and new activities from HOME annual funds into HOME-American Rescue Plan (HOME-ARP), in the Community Planning and Development Notice 21-10 and Appendix (HUD 21-10).
The approved HOME-ARP Plan programmed funds into acquisition/new construction, reconstruction, or rehabilitation of non-congregate shelters (NCS), development of affordable rental housing, nonprofit capacity building funds/nonprofit operating (NCO) funds, and administration/planning. This action focuses on the acquisition/new construction, reconstruction, or rehabilitation of NCS and NCO.
The amendment approved by the Board changes the method of distribution for half of the NCO ($3,324,229), and all of the NCS funds ($56,511,887). Public comment for this amendment ended on May 2, 2023, and comments received on the amended Allocation Plan did not require significant revisions. Staff submitted the First Amendment to HUD for approval in May 2023; because more than 45 days have passed from the submission date, the amendment is considered accepted.
As stated in the HOME-ARP Allocation Plan First Amendment, the NCO must specifically expand the ability of the organizations to develop a NCS. The NCO funds are proposed to be awarded in areas that meet criteria demonstrating need for at least a medium-scale (50 units) NCS. The targeted areas would have 400 or more unsheltered homeless persons reflected on HUD’s point in time count; fair market rent by county for 1-bedroom units that increased 20% or more over the last five years; and HUD-published fair market rents for FY 2023 within the top 15% of the state, at above $930.
The Austin-Round Rock Metropolitan Statistical Area (MSA) meets the criteria outlined in the First Amendment. The Austin/Travis County 2022 point-in-time count lists 2,238 persons as experiencing unsheltered homelessness. The Austin-Round Rock MSA has Texas’ highest rent for one-bedroom apartments by county per the 2023 Fair Market Rents published by HUD. Finally, the increase in fair market rent for one-bedroom units increased 28% over the last five years. Therefore, awards of NCO and reservations for NCS will be made in one or more locations in Austin-Round Rock MSA.
To be recommended for an award, nonprofit organizations would need to meet criteria outlined in the HOME-ARP Allocation Plan Amendment. The criteria for a nonprofit organization includes being in good standing by passing several administrative review processes; having a current annual operating budget of at least $500,000; agreeing to follow applicable regulations; agreeing to receive both nonprofit capacity building and nonprofit operating funds; having prior experience in innovative shelter programs and related service provision; committing to provide a plan and strategy for NCS Development; agreeing to having a primary part of the NCS Development; and submitting materials for a 50+ unit NCS within 16 months of this award (which may be extended up to six months by the Executive Director for good cause).
The Other Ones Foundation began in 2017 as a nonprofit offering extremely low-barrier work opportunities to Austin’s unhoused neighbors. The Other Ones Foundation implemented a Mobile Hygiene Clinic and a workforce low barrier access to pay day labor program. In 2020, The Other Ones Foundation began providing services and coordination at the state-sanctioned encampment and broke ground on Esperanza, a 200-unit, non-congregate shelter solution.
The Austin Downtown Alliance has been a partner in multiple efforts to solve Austin’s homelessness. Since 2019, the organization has assisted fundraising and provided direct grants to large housing projects, including Community First! Village, which offers permanent supportive housing; the Terrance at Oak Springs, permanent supportive housing operated by Integral Care the Austin-Travis County Mental Health and Mental Retardation Center; and the Rathgeber Center, an emergency shelter operated by the Salvation Army. Additionally, Austin Downtown Alliance has advocated for or partnered with service providers and the City of Austin to improve street outreach and successful housing transitions by providing support for rezoning of Austin’s healthcare complex, major improvements to the Austin Resource Center for the Homeless, and coordinated system reform for homeless service systems. In addition, Austin Downtown Alliance has helped create programs including the Homelessness Reunification Partnership and the Homeless Outreach Street Team.
If The Other Ones Foundation and the Austin Downtown Alliance identify an organization(s) that meet the criteria outlined in the First Amendment and include that organization in the Invitation to Apply, that organization(s) is included in this award recommendation.
In accordance with the HOME-ARP Allocation Plan First Amendment, staff recommends a conditional award of $3,324,229 in NCO funding to The Other Ones Foundation and/or The Austin Downtown Alliance or a combination of organizations identified in the Invitation to Apply, pending negotiation among the awardees. The award is conditional on Department review of the application received by the organization, and the likelihood of a successful NCS application within 16 months of the NCO award. HOME-ARP also recommends reserving $56,511,887 for NCS development(s) to an entity or entities formed by The Other Ones Foundation and/or The Austin Downtown Alliance pending negotiation among the awardees. The NCS development(s) award/awards will be brought to a future board meeting.