Item Coversheet
Item #4.

Staff Report: 039-22

TO:

Mayor and City Council




FROM:

Eric Holmes, City Manager




DATE:

3/28/2022








SUBJECT


2022 AHF Funding Recommendations
Key Points
  • In October 2021, AHF Temporary Shelter applications were accepted as part of the annual CDBG and HOME process. The Review Committee recommended 4 AHF applications for funding, totaling $2,584,250. The City of Vancouver’s HART team subsequently applied for $1,007,900 in Temporary Shelter funding, for a total $3,592,150 in Temporary Shelter requests.
  • In January 2022, City Council approved an update to the AHF Administrative and Financial Plan that combined the goals and allocations for Housing Production and Housing Preservation and allocated more AHF funding to Temporary Shelter assistance.
  • In February, the City reopened Housing applications to accept requests for the remaining $2,921,450 AHF Housing funding. Seven applications were received, totaling $10,000,000.
  • Between the two processes, the City received 12 AHF requests totaling $13,592,150. The review committees recommended awarding $6,513,600 based on funding availability.
  • Proposed AHF awards will support 4 Housing acquisition projects and 5 Temporary Shelter projects.
  • Housing projects will result in 70 affordable units for households earning low-income. Temporary Shelter projects will support shelter services and rental assistance for approximately 685 people who are homeless or at-risk.

Strategic Plan Alignment

Goal 3, Objective 3.2: Improve services available to underserved or vulnerable residents.


Present Situation

The City accepted AHF applications through two separate processes with two funding review committees. The City received a total of 12 proposals requesting $13,592,150, far exceeding the amount available. The committees recommended AHF funding of $2,921,450 for Housing acquisition and $3,592,150 for Temporary Shelter.

The Review Committees recommended funding 9 applications: 4 Housing projects and 5 Temporary Shelter projects. Housing applications that were not able to be funded include: 28 first-time homebuyers, 42 new permanent supportive housing units, and acquisition of 10 units of affordable housing. These were not funded due to limited funding available.

The recommended projects will create or preserve 70 units serving households who are experiencing low-income and/or homelessness and Temporary Shelter support for 685 people experiencing or at-risk of homelessness. Projects are described below:

 

Temporary Shelter

  • The VHA’s SafeChoice Shelter Renovation project includes renovations to a shelter that annually serves approximately 115 people escaping domestic violence. Renovations include reconstruction of the kitchen to meet ADA-requirements, new flooring throughout the shelter, and a reconfiguring of the dining room and staff offices. Additional improvements include renovations to guest rooms (adding 4 additional rooms), shared community spaces, advocacy rooms, and upgrades to HVAC, siding, roofing, windows, and doors. The VHA requested $560,000 to support renovations.
  • Share’s WHAT Shelter is a 24-hour facility that provides temporary shelter and supportive services to women experiencing homelessness. AHF funds will support shelter operations including rent, meals, and engagement specialists who provide supportive services during the shelter’s daytime hours. Staff supports clients to develop basic living skills, secure transportation, navigate physical or mental health concerns, and address substance use as a path toward stability. Share requested $200,250 to support this shelter.
  • Outsiders Inn is a year-round, overnight shelter with recovery-focused, trauma-sensitive practices that rely on staff providing peer support based on their own lived experience of homelessness. Staff support positive progress for clients on pathways to employment, health, and housing stability. AHF funding will support operations including staffing, management, training, administration, travel, supplies, client support funds (bus passes, laundry, etc.), for approximately 175 clients annually. Outsiders Inn requested $324,000 in AHF to support this project and $50,000 in General Fund for ongoing mail services.
  • Council for the Homeless’ Prevention Consortium is a collaborative effort of housing and service partners to address the diverse housing needs of people experiencing homelessness. Services range from 1 to 12 months of rental assistance paired with comprehensive support services. AHF funds will support rental assistance and staff costs. Council for the Homeless requested $1,500,000 to assist 265 households.
  • The City of Vancouver’s Safe Stay Communities provide pallet homes for people experiencing homelessness in partnership with local housing service providers. The City of Vancouver’s Homeless Assistance & Resource Team (HART) requested $1,007,900 to purchase 40 two-person modular shelter units (20 for each site) and 2 modular office spaces (1 for each site) to house people experiencing homelessness at two new Safe Stay Communities. Funds will support site preparations at the two sites, including installation of utilities and electrical hook-ups to each shelter unit, installation of fencing, gates, and parking, and necessary permits and fees.

 

Housing Acquisition

  • Lifeline Connections Recovery Home for Mothers is for acquisition of a single-family home that will serve women with young children who are experiencing housing insecurity and are in recovery. The Recovery Home was previously awarded $125,000 in AHF funding approved by City Council in February 2019. Lifeline is requesting an additional $75,000 to support the purchase due to increased housing costs.
  • Vancouver Housing Authority’s (VHA) Lainie’s Crossing is the acquisition of a 29-unit building for households earning less than 50% of area median income. Lainie’s Crossing was previously awarded $2,000,000 in AHF funds approved by City Council in November 2021. VHA is requesting an additional $925,000 to support the acquisition due to rising housing costs.
  • Open House Ministries’ Pinewood Terrace project is the acquisition of a 14-unit development to provide housing for 10 households with low income and 4 market rate units. Open House Ministries currently operates this project in partnership with the VHA and is now seeking to purchase this property to preserve its affordability. Open House Ministries is requesting $750,000 to support acquisition costs.
  • VHA’s Homeless Youth Housing project is the acquisition of a newly constructed 30-unit development for youth experiencing homelessness and/or aging out of the foster care system. The project includes 8 one-bedroom units and 22 two-bedroom units. VHA requested $2,250,000 to support acquisition costs, and the Review Committee recommended funding of $1,171,450 due to limited AHF funds.

All organizations awarded have previously partnered with the City on Affordable Housing Fund projects. The City will place affordability covenants on the additional 50% AMI units for projects that receive an increased award. See attached summaries for a description of each project.

AHF Status and Updates

Since its creation through a tax levy in 2016, the AHF has awarded $29,580,389 to support 47 projects for construction, rehabilitation, acquisition, and preservation of affordable housing and Temporary Shelter support in the City of Vancouver for residents earning less than 50% AMI. AHF funds are leveraged with tax credits and other funding to support a total housing investment of $268,342,048.

With these awards, the City has allocated all funding from the Housing Production and Preservation allocation through the end of the AHF levy in 2023. Funding from the Temporary Shelter allocation will still be available for shelter operations and rental assistance in 2023.

Additional AHF updates include:

  • In January 2022, City Council approved an update to the AHF Administrative and Financial Plan that combined the goals and allocations of Housing Production and Housing Preservation.
  • In February 2022, the AHF’s 5-year report and Affordable Housing Fund Investment dashboard were released (available at www.cityofvancouver.us/eph/page/affordable-housing-fund).

Advantage(s)
  • Support the acquisition of 70 units of housing for households earning up to 50% AMI.
  • Provide services and shelter to 685 people who are homeless or at risk of homelessness.
  • Leverage City funds with tax credits and other sources.

Disadvantage(s)
None.
Budget Impact

The proposed $6,513,600 for housing acquisition and temporary shelter is provided by Affordable Housing Fund revenues.


Prior Council Review

Lifeline Connections Mothers Recovery Home and VHA’s Lainie’s Crossing previously received funding that was approved by Council as noted above.


Action Requested

Approve a resolution adopting the proposed 2022 Affordable Housing Fund awards for housing acquisition and temporary shelter.

 

Samantha Whitley, Housing Programs Manager, 360-487-7952

 


ATTACHMENTS:
Description
2022 AHF Recommendations
2022 AHF Awards Resolution