Committee Agenda Date :February 2. 2006

County of Santa Clara
Board of Supervisors
Supervisorial District Four
Supervisor James T. Beall, Jr.

EHC.2.2.06

Reviewed by: Sunshine Borelli
Chief of Staff

DATE:

February 2, 2006

TO:

Supervisor Pete McHugh, Chairperson
Supervisor Liz Kniss, Vice-Chairperson
Finance & Government Operations Committee

FROM:

James T. Beall, Jr.

Supervisor, District 4
SUBJECT:

Fiscal Year 2005/2006 Mid-Year Budget Modification Request - EHC
LifeBuilders' Off the Streets Project for Homeless Addicted to Alcohol

RECOMIVIENDED ACTION

Approve mid-year allocation of $300,000 to EHC LifeBuilders' Off the Streets Project for use
during this fiscal year.

FTSCAL IMPLICATIONS

Approval of this action will result in a one-time general fund cost of $300,000 for FY 05/06.

Board of Supen/isors: Donald F, Gage. Blanca Alvarado, Pete McHugh. Jim Beall, Liz Kniss
Count/ Executive: Peter Kutras Jr.

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Committee Agenda Date februaty 2, 2006

REASONS FOR RECOMMENDATION

Supervisor Beall requests the Board approve a mid-year allocation on behalf of EHC
LifeBuilders for the Off the Streets Project because of the urgency of the situation. EHC
LifeBuilders has already worked extensively with HUD to exhaust all other match
possibilities. HUD extended their match commitment deadline until February 8, 2006 to allow

this request to go to the Board of Supervisors. If EHC LifeBuilders does not have the cash
match committed by this date, HUD will rescind the grant, resulting in the loss of this funding
source and program in the amount of $496,169 annually for two years.

This request will benefit the County for several reasons. First, the grant will provide housing

and services to individuals who otherwise would be admitted to the County's Emergency
Room or locked mental health facilities.

Additionally, once the initial two-year grant period (2005-07) ends, this money can be added
to the County's annual HUD renewal allocation. This means that EHC LifeBuilders will be
able to renew the grant annually, thus continuing the program and keeping the federal grant

money in the County. Additionally, after the first two years the cash match requirement will

be reduced to 20% and EHC LifeBuilders will utilize other funding sources to cover this
smaller amount.

EHC LifeBuilders have secured funding from three Non-County sources for the first two
years of the grant. The financial commitments are as follows:
Year One: City of San Jose - $20,000
EHC LifeBuilders - $131,000

Year Two: City of Palo Alto - $15,000
EHC LifeBuilders - $100,000

This grant is consistent with the 2006 Board Budget Strategy Statement and aligns with the
draft Santa Clara County Mental Health Services Act Community Services and Supports
Three-Year Expenditure Plan and will help the County meet its goal of ending chronic

Board of Supervisors: Donald F. Gage, Blanca Alvarado, Pete McHugh,Jim Beall, Liz Kniss
County Executive: Peter Kutras Jr.

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Committee Agenda Date iFebmaty 2, 2006

homelessness, as described in Keys to Housing: A Ten-Year Plan to End Chronic
Homelessness in Santa Clara County.

There is no Board adopted policy outlining the criteria for Off-Cycle Funding request made
by Board members. However, the Board adopted a policy for Off-Cycle Funding requests
from CBOs. The policy states that four criteria must be used when determining whether or not
to fund a CBO request for an off-cycle augmentation. In ordered to be considered, a CBO's
request must meet all four criteria, as followed:
1. Current Contract - The CBO must have a contract or similar relationship with the
County in the current fiscal year;

2. Verifiable Crisis - The CBO must be on the verge of interruption or termination of
services due to a verifiable financial or facility-related crisis;

3. Critical Service - The CBO must provide a critical service that other similar

organizations could not provide without significant difficulty or delay;
4. Significant Impact - Interruption or termination of services provided by the CBO must
have a significant impact on the number of residents affected or the duration of the
impact.
EHC LifeBuilders meets all four criteria as demonstrated below.

Current Contract - The CBO must have a contract or similar relationship with the County in
the current fiscal year:

County has had a long standing relationship with EHC LifeBuilders. EHC LifeBuilders has
contracted with the County of Santa Clara as a service provider on numerous occasions, the
Cold Weather Shelter partnership is the most current contract.

Verifiable Crisis - The CBO must be on the verge of interruption or termination of services
due to a verifiable financial or facility-related crisis:

Although this request may appear to be a new funding request, it is not. HUD
Administration's recent funding trend demonstrates a shift in program funding. HUD

Board of Supervisors: Donald F. Gage, Blanca Alvarado, Pete McHugh,Jim Beall, Liz Kniss
County Executive: Peter Kutras Jr.

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Committee Agenda Date iFebruaty 2, 2006

Administration has shifted funding by reducing funding to existing HUD programs such
CDBG and redirecting other monies around to new programs. This grant will help offset
significant service reductions resulting from multi-year cutbacks by HUD Administration.
HUD cutbacks have resulted in nonprofits being unable to provide the same level of service
and serve less individuals in need. This grant will allow the County to offset the HUD
as

reductions and help preserve the existing level of service.

There is an underlying crisis of homelessness in the County of Santa Clara, to the extent the
BOS has ushered in a 10 year plan to end homelessness. The federal agency, HUD,has

indicated the County will loose up to $500,000 annually in new housing vouchers for
homeless if the County does not immediately act on this offer. Without the vouchers, the
hardest to serve homeless, i.e., alcohol substance abusers and mentally ill homeless will not
be served.

Critical Service The CBO must provide a critical service that other similar organizations
could not provide without significant difficulty or delay;

EHC LifeBuilders is a CBO dedicated to ending homelessness in the County of Santa Clara.

The CBO IS a first responder and long term care agency for homeless people in the County

The HUD contract is offered only to EHC LifeBuilders.

Significant Impact Interruption or termination of services provided by the CBO must have
significant impact on the number of residents affected or the duration of the impact;
Due to Federal government's continued reductions to HUD programs, there are no federal

resources to maintain existing service level long-term. Specifically, there are no federal
resources to voucher homeless individuals with mental illness and alcohol substance abusers

available for service to this population in the County, although the service to this vulnerable
population IS a goal in the 10 year plan. If the County does not accept the offer, HUD will

withdraw the offer of $500,000 ongoing annual federal funds to serve this population with

housing vouchers on February 8, 2006.
BACKGROTJNn

Board of Supervisors: Donald F. Gage, Blanca Alvarado, Pete McHugh,Jim Beall Liz Kniss

C0u nty Exec utive: P ete r Kutras J r.

Committee Agenda Date iFebruaty 2, 2006

The U.S. Department of Housing and Urban Development(HUD)awarded a $992,339 grant
to pay for the permanent housing component of this project over the next two years. During
this two-year demonstration period, HUD requires a dollar for dollar cash match to provide
supportive services: $992,339 over two years to provide outreach, case management, mental
health services, drug and alcohol treatment and other services. EHC LifeBuilders is requesting
a $300,000 allocation from the County to contribute to the match requirement this year. The
County money will be used to provide supportive services to the project participants,

including primary case management and mental health services. Additional match funding
will come from the Cities of Palo Alto and San Jose and client rent fees. After the initial

two-year period the cash match requirement decreases. Because this is a demonstration
project, HUD needs to see results right away. It is imperative that local funding be committed
to this project immediately to avoid losing HUD's investment in Santa Clara County.
This grant funds the Off the Streets Project for Homeless Addicted to Alcohol and pays to
lease scattered site units for 42 chronically homeless individuals who are mentally ill and

addicted to alcohol. Homeless individuals will be served throughout the County, including at

sites in North County, South County, and San Jose. The HUD grant invests $496,169 a year in
new federal money in Santa Clara County. Once the initial two-year grant period (2005-07)
ends, this money can be added to the County's annual HUD renewal allocation, thus keeping
the federal grant money in the County.

The Off the Streets Project answers the community need for new permanent affordable

housing with supportive services for chronically homeless individuals with alcohol addictions
and mental illnesses. It builds on several years of countywide efforts to end chronic

homelessness, and directly addresses the goals of Keys to Housing: A Ten-Year Plan to End

Chronic Homelessness in Santa Clara County through the provision of permanent supportive

housing in the Housing First model, the preferred strategy cited in the ten-year plan. The Off
the Streets Project also addresses the needs and priorities identified in the draft Santa Clara
County Mental Health Services Act Community Services and Supports Three-Year
Expenditure Plan. Two of the highest ranking concerns regarding adults with mental illness
identified by the community during the MHSA planning process are - "concurrent drug and
alcohol abuse" and "poverty, homelessness, inadequate housing"(page 32). The type of
housing and services provided through this project will be consistent with what is identified in
the draft plan: community integrated housing and services, including case management,
mental health services, and drug and alcohol treatment; assistance accessing transportation;

help negotiating fragmented services; long-term continuity of care; and outreach to potential
Board of Supervisors: Donald F. Gage, Blanca Alvarado, Pete McHugh,Jim Beall, LizKniss
County Executive: Peter Kutras Jr.

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Committee Agenda Date :Februaty 2, 2006

participants.
CONSEQUENCES OF NEGATIVE ACTION

Negative action would result in EHC LifeBuilders' inability to operate this program and the
loss of HUD's $496,169/year federal investment for ending homelessness in Santa Clara
County.
ATTACHMENTS
•EHC Grant
•EHC Letter to Board

Board of Supervisors: Donald F. Gage, Blanca Alvarado, Pete McHugh,Jim Beall, Liz Kniss
County Executive: Peter Kutras Jr.

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