BOARD AGENDA MEMORANDUM
SUBJECT:
Title
Homeless Encampment Ad Hoc Committee’s Recommendations and Associated Staff Analysis from the Committee’s May 15, 2017, Meeting.
End
RECOMMENDATION:
Recommendation
A. Consider and act on the following recommendations by the Board’s Homeless Encampment Ad Hoc Committee:
1. When District-owned residential rental properties that were purchased for projects and not in-lieu become available and are deemed suitable by the District and applicable city, the Santa Clara County Office of Supportive Housing will be contacted to be given the first opportunity to consider the properties for housing for the homeless;
2. Approve utilizing a portion of net rental income from properties purchased through Watersheds (Fund 12) to fund the homeless encampment cleanup project and for development of a pilot program that focuses on the impacts of homeless encampments in each city where the net rental income is being utilized, with transfer or reallocation to begin in Fiscal Year (FY) 2020:
i. Up to ninety (90) percent of each FY’s net rental income will be utilized to fund the Safe, Clean Water and Natural Flood Protection Program Encampment Cleanup Project (SCW Project B4) through FY 2028; and
ii. Up to 10 percent of each FY’s net rental income will be utilized to develop a pilot program to help address waterway and stream stewardship impacts of homeless encampments in each city with Fund 12 District-owned residential rental properties, which will be implemented through FY 2021, at which time staff will assess the pilot program and return to the Board with a recommendation on whether to continue its implementation; and
3. Direct the Capital Improvement Program (CIP) Committee to review Recommendation A2’s proposed transfer from Fund 12 to Fund 26 for Safe, Clean Water and Natural Flood Protection (SCW) Project B4 and the use of those Fund 12 funds for the pilot program to help address waterway and stream stewardship impacts of homelessness in light of other Fund 12 capital project funding needs; and return to the Board with a recommended annual transfer amount into SCW Project B4 to be implemented from FY 2020 to FY 2028 and for the pilot program from FY 2020 to FY 2021; and
B. If the Board approves Recommendation A1 above, then adopt the AMENDED AND RESTATED DISTRICT RESOLUTION RESCINDING RESOLUTION NO. 09-78 AND ADOPTING A PROCEDURE TO LEASE DISTRICT REAL PROPERTY, which modifies the District’s leasing procedure to enable District-owned residential rental properties to be offered to the Santa Clara County Office of Supportive Housing for housing for the homeless.
Body
SUMMARY:
The Board’s Homeless Encampment Ad Hoc Committee (Committee) was established to allow for detailed discussion of homelessness and encampment issues with the public, governmental agencies, other assistance groups, and bring discussion and recommendations back to the full Board.
On April 11, 2017, the Board considered a number of staff recommendations to address the impacts of homeless encampments on local waterways. Because the Board sought the Committee’s input before acting on staff’s recommendations, staff presented the recommendations to the Committee on May 15, 2017. The Committee directed staff to present to the Board Recommendations A1, A2, and A3 above.
Recommendation A1
The Ad Hoc Committee’s Recommendation A1 proposes that when District-owned residential rental properties that were purchased for projects and not in-lieu of carrying out a project become available and are deemed suitable by the District and applicable city, the Santa Clara County Office of Supportive Housing be given the first opportunity to consider the properties for housing for the homeless.
Types of District-owned Residential Rental Properties
Currently, there are two types of District-owned residential rental properties
1. Properties that were purchased for projects; and
2. Properties that were purchased in lieu of projects.
Properties for projects: The District primarily acquires residential properties for projects related to its purposes under the District Act. The bulk of these properties are acquired for flood protection projects, and the District leases these properties until the start of project construction is imminent. Under the Ad Hoc Committee’s Recommendation A1, when such rental properties become available and are deemed suitable by the District, Santa Clara County’s Office of Supportive Housing will be contacted to be given first opportunity to see if the properties will be conducive to provide housing for homeless. The County will work with the appropriate city to ensure the properties are suited for supportive housing.
To avoid project delays, the Ad Hoc Committee agreed that residential rental properties planned to be demolished within two years would not be considered suitable for this program.
The Board has declared surplus one property on South Sunset Avenue in the City of San José and it is slated to be sold as excess property. All remaining residential properties purchased for projects, except for one home on Steval Place in San José, are currently scheduled for demolition in 2018 and 2019, as per engineering and funding source estimates, and, therefore, not suitable for the program.
Properties in-lieu of projects: Sometimes, instead of constructing a capital project, such as one that would protect properties from flooding, the District may purchase the properties. These in-lieu properties are not slated for demolition and are maintained and leased by the District through a property management company. At present, there a total of 21 in-lieu properties comprised of the following:
• 19 residential properties are in the Waverly Park Community of Mountain View
• One on Twin Brook Drive in San José
• One on San Pedro Avenue in Morgan Hill.
Under the Ad Hoc Committee’s recommendations, all the 21 in-lieu residential properties, including the 19 properties in Mountain View, will be excluded from being offered to the County for supportive housing.
If the Board adopts Recommendation A1 and a suitable residential rental property becomes available, District staff will work with the Santa Clara County Office of Supportive Housing to reach out to the city and the community. The County would then work directly with local jurisdictions, to ensure compliance with their ordinances and other regulatory requirements.
Furthermore, in the event there is an issue with a tenant (such as neighbor complaints about noise, upkeep of the premises, etc.), the County would be responsible for addressing the complaint and taking necessary remedial action, including evictions. Under this option, the District could require (through the lease) that the County be responsible for liability related to the County making District residential rental properties available to its clients, property damage issues, maintenance, evictions, complaints, etc.
Recommendation A2
SCW Project B4 - Encampment Cleanup Project
As reported in the FY2016 SCW Annual Report, there continues to be an increasing demand for District resources to address encampment cleanups along local waterways from cities and the community. These additional requests have significantly impacted the project’s budget. This project does not have sufficient SCW funding allocated to accomplish the current level of demand for service beyond FY 2019.
To address this elevated level of demand and the overall issue of homelessness in the county, and to be able to continue to reduce trash and other pollutant loads that contaminate waterways and damage District facilities, staff recommends utilizing up to 90 percent of the net rental income from Watersheds Fund 12 District-owned residential rental properties to fund Project B4 between FY 2020 and FY 2028.
Additionally, Recommendation A2 addresses one of the draft findings of the Moss Adams SCW Independent Audit, reported to the Board as a non-agenda item on February 24, which recommends that the District should “consider seeking additional funding sources to ensure sufficient funding throughout the 15-year Safe, Clean Water Program because additional funds will be required to perform all the cleanups, which are vital for water quality.”
Pilot program to help address the impacts of homelessness
While the human, social, economic, and environmental effects of homelessness affect our entire county, each community can experience very different impacts and needs.
The pilot program to help address the impacts of homeless encampments in each city with Fund 12 District-owned residential rental properties would currently apply to the cities of Mountain View and San Jose. District staff would work with representatives of each city to develop a pilot program addressing the impacts of homelessness in their city that align with the District’s water resources management, flood protection and stream stewardship authorities, and that go beyond encampment cleanups.
The recommendation is to approve the development of such a pilot program funded by up to 10 percent of the net income from the Watersheds Fund 12 District-owned residential rental properties, to allow for the flexibility to test new and innovative approaches that align with the needs of each city’s jurisdiction wherein those properties are owned.
Recommendation A3
CIP Ad Hoc Committee Review
The CIP Ad Hoc Committee reviews the capital project funding needs and project prioritization for Funds 12 and 26. By including the use of the net income from the Watersheds Fund 12 District-owned residential rental properties to partially fund the SCW Project B4 Homeless Encampment Cleanups and the pilot program to help address the impacts of homelessness, the CIP can assess the amounts that should be allocated while balancing the other demands on Fund 12.
The recommendation is for the Board to direct the CIP Ad-Hoc Committee to review Recommendation A2’s proposed transfer from Fund 12 to Fund 26 for SCW Project B4 and the use of those Fund 12 funds for the pilot program to help address waterway and stream stewardship impacts of homelessness in light of other Fund 12 capital project funding needs; and return to the Board with a recommended annual transfer amount into SCW Project B4 to be implemented from FY 2020 to FY 2028 and for the pilot program from FY 2020 to FY 2021.
Recommendation B
If the Board were to accept the Ad Hoc Committee’s Recommendation A1 above and offer the County the first chance to lease suitable vacant District residential rental properties, it would require the Board to revise District Board Resolution 09-78, which specifies the District’s leasing guidelines, by adopting the revised and restated Resolution RESCINDING RESOLUTION NO. 09-78 AND ADOPTING A PROCEDURE TO LEASE DISTRICT REAL PROPERTY. (Attachment 1).
Resolution 09-78 currently requires District residential rental properties to be advertised when they are available for rental, and requires a month-to-month lease arrangement. To eliminate any conflict, Board would need to rescind Resolution 09-78 and adopt a new resolution. The Amended and Restated Resolution addresses the issues mentioned above as well includes some clarifying texts.
FINANCIAL IMPACT:
Staff plans to notify the city where a residential rental property is located and available for lease to the County for purposes of providing shelter to homeless persons. To minimize potential loss of revenue, staff will immediately notify the city and request input as soon as the District’s property management company receives a 30-day notice from the existing tenant of intent to vacate the residential property.
CEQA:
The recommended action does not constitute a project under CEQA because it does not have a potential for resulting in direct or reasonably foreseeable indirect physical change in the environment.
ATTACHMENTS:
Attachment 1: Resolution
UNCLASSIFIED MANAGER:
Manager
Melanie Richardson, 408-630-2035