Fiscal Note

Department:	Contact Person/Phone:	DOF Analyst/Phone:
Human Services	Eileen Denham 684-0915	Cheryl Swab 684-8053

Legislation Title:

AN ORDINANCE relating to assistance for the homeless, authorizing an agreement with the United States Department of Housing and Urban Development for additional funds available under the Stuart B. McKinney Homeless Assistance Act, increasing an appropriation to the Human Services Department in the 2003 Budget, and ratifying and confirming prior acts, all by a three-fourths vote of the City Council.

Summary of the Legislation:

The attached legislation would provide the authority and make the necessary appropriations for the portion of this new funding which the City will administer under the Stuart B. McKinney Homeless Assistance Act grant awarded by the U.S. Department of Housing and Urban Development. The City will administer funding for 18 continuing projects (renewal funding) and for one new project funded under this latest McKinney award for a total of $6,859,251 over the period of the award. As the Adopted 2003 Budget for the Human Services Department includes $6,700,000 in appropriations for the McKinney grant, this action appropriates only the $159,251 difference between the amount anticipated in the budget and the actual grant award.

Appropriations (in $1,000’s):

Fund Name and Number	Department	Budget Control Level*	2003 Appropriation	2004 Anticipated Appropriation
16200 Human Services Operating Fund	Human Services		$159
TOTAL			$159

* This is line of business for operating budgets, and program or project for capital improvements

Notes:

Expenditures (in $1,000’s):

Fund Name and Number	Department	Budget Control Level*	2003 Expenditures	2004 Anticipated Expenditures
16200 Human Services Operating Fund	Human Services		$159
TOTAL			$159

* This is line of business for operating budgets, and program or project for capital improvements

Notes:

Anticipated Revenue/Reimbursement (in $1,000’s):

Fund Name and Number	Department	Revenue Source	2003 Revenue	2004 Revenue
16200 Human Services Operating Fund	Human Services		$159
TOTAL			$159

Notes:

Total Permanent Positions Created Or Abrogated Through Legislation, Including FTE Impact; Estimated FTE Impact for Temporary Positions:

Fund Name and Number	Department	Position Title*	2003 FTE	2004 FTE
TOTAL

* List each position separately

Do positions sunset in the future? (If yes, identify sunset date):

While no positions are included in this legislation, two positions (1.75 FTE) in the Human Services Department are funded under the administrative costs allowance of the McKinney grant. These positions are contingent upon the continued availability of McKinney or similar grant funding.

Background (Include brief description which states the purpose and context of legislation and include record of previous legislation and funding history, if applicable):

This is the eighth award to the City for McKinney Act funding. Since 1995, the City has applied to HUD on behalf of a consortium of Seattle and King County service providers and has been highly successful in the annual Homeless Assistance Program competition. The City’s role in coordinating the cooperative inter-jurisdictional McKinney funding application has preserved and rehabilitated housing and developed new housing. In addition, a network of stabilization services has been developed for homeless persons including: adult employment, youth outreach and employment, housing search, case management, respite health care, and a safe haven for homeless men and women who are seriously mentally ill. McKinney funding is awarded on a project specific basis, and this award includes $6.85 million in funding for 18 continuing projects and one new project that will be administered by the City. The overall McKinney program award for the King County area totals $14.7 million for 60 projects.

The financial cost of not implementing the legislation (Estimate the costs to the City of not implementing the legislation, including estimated costs to maintain or expand an existing facility or the cost avoidance due to replacement of an existing facility, potential conflicts with regulatory requirements, or other potential costs if the legislation is not implemented):

Possible alternatives to the legislation which could achieve the same or similar objectives (Include any potential alternatives to the proposed legislation, including using an existing facility to fulfill the uses envisioned by the proposed project, adding components to or subtracting components from the total proposed project, contracting with an outside organization to provide the services the proposed project would fill, or other alternatives):

None

Is the legislation subject to public hearing requirements (If yes, what public hearings have been held to date):

No

Other Issues (including long-term implications of the legislation):

Each of the continuing projects administered by the City is funded for one year. The new Pine City Inn project to be operated by LIHI is also funded for one year. This round of the McKinney grant will continue support for 465 housing units reserved for homeless single adults with disabilities. The project will also include a total of 53 new units of housing.

FOR CAPITAL PROJECTS ONLY

Background (Include brief description that states the purpose and context of legislation, the expected useful life, anticipated customers/users, assumed level of LEED or other sustainable design elements. Also include record of previous legislation and funding history, if applicable):

No City capital projects

Project Name:

Project Location:

Start Date:

End Date:

Spending Plan and Future Appropriations for Capital Projects (Estimate cost of legislation over time; list timing of anticipated appropriation authority requests and expected spending plan. Please identify your cost estimate methodology including inflation assumptions and key assumptions related to the timing of appropriation requests and expected expenditures. In addition, include the projected costs of meeting the LEED Silver standard in all facilities and buildings with over 5,000 gross square feet of occupied space. Also, be sure to include percent for art and percent for design as appropriate):

Spending Plan and Budget	2003	2004	2005	2006	2007	2008	Total
Spending Plan
Current Year Appropriation
Future Appropriations

Key Assumptions:

Funding source (Identify funding sources including revenue generated from the project and the expected level of funding from each source):

Funding Source	2003	2004	2005	2006	2007	2008	Total
TOTAL

Bond Financing Required (If the project or program requires financing, please list type of financing, amount, interest rate, term and annual debt service or payment amount. Please include issuance costs of 3% in listed amount):

Type	Amount	Assumed Interest Rate	Term	Timing	Expected Annual Debt Service/Payment
TOTAL

Uses and Sources for Operation and Maintenance Costs for the Project (Estimate cost of one-time startup, operating and maintaining the project over a six year period and identify each fund source available. Estimate the annual savings of implementing the LEED Silver standard. Identify key assumptions such as staffing required, assumed utility usage and rates and other potential drivers of the facility’s cost):

O&M	2003	2004	2005	2006	2007	2008	Total
Uses
Start Up
On-going
Sources (itemize)

Key Assumptions:

Periodic Major Maintenance costs for the project (Estimate capital cost of performing periodic maintenance over life of facility. Please identify major work items, frequency):

Major Maintenance Item	Frequency	Cost	Likely Funding Source
TOTAL

Funding sources for replacement of project (Identify possible and/or recommended method of financing the project replacement costs):

CITY OF SEATTLE ADMINISTERED McKINNEY PROJECTS

1.	Archdiocesan Housing Authority – Dorothy Day House	$25,423
2.	Church Council – Transition in Place	80,681
3.	Compass Center – Cascade Women’s Center	80,012
4.	Downtown Emergency Service Center – Kerner Scott House	443,472
5.	Fremont Public Association –Solid Ground	507,351
6.	Human Services Department, Div. of Family and Youth Services- Youth Outreach Project	838,689
7.	Low Income Housing Institute – Pine City Inn	210,000
8.	Low Income Housing Institute – Scattered Sites Housing	116,396
9.	Low Income Housing Institute – Sand Point Family Housing	328,382
10.	New Beginnings – Transitional Housing Program	326,054
11.	Plymouth Housing Group - Coming Home	492,049
12.	Public Health of Seattle King Co. - Homeless Respite	696,733
13.	Public Health of Seattle King Co. - Pathways Home	545,050
14.	Seattle Children’s Home - Cedar House	168,153
15.	Workforce Development Council - Homeless Intervention	1,149,355
16.	YouthCare - ISIS House	181,307
17.	YouthCare/Friends of Youth – Sand Point Youth	548,599
18.	Youth and Outreach Services – Dove House	121,546
	TOTAL	6,859,251

The Homeless Assistance Grant provides funding for a wide variety of capital, operating, and supportive services costs associated with transitional and permanent housing programs for people who are homeless. The grant builds from the Seattle and King County Homeless Continuum of Care planning processes, including input from the leadership of the Seattle-King County Coalition for the Homeless, homeless service providers, governments and business. The major goals for all these homeless programs include: 1) increased residential stability, 2) increased skill level and/or income of participants; and 3) greater self-determination. Listed below is a description of the services funded through the City-administered McKinney Act funding:

· Archdiocesan Housing Authority – Dorothy Day House:

(First funded in 1995)

Dorothy Day House includes 17 units of permanent housing for homeless women with disabilities who have been long term residents of the shelter system. Dorothy Day provides case management, and refers residents to off-site services for mental health and chemical dependency counseling.

· Church Council of Greater Seattle- Transition in Place

(First funded in 1995)

The Transition in Place project provides housing for homeless families with children along with intensive case management services to help them achieve and maintain permanent housing. This is done by “transitioning in place” from transitional to permanent housing. Upon admission to the program, a small portion of the family income is applied to rent. As a family’s income increases, their share of the lease also rises until they can sustain the full rent for the unit that will become their permanent residence. This minimizes disruption to the family and allows them to concentrate on developing the living skills and income necessary to sustain their permanent housing.

· Compass Center- Cascade Women’s Center

(First funded in 1995)

This project provides comprehensive support services to homeless women in a short-term transitional setting. Compass Cascade accepts women who are in crisis situations, directly from the streets. It offers 24-hour staffing, mental health counseling, drug and alcohol counseling and community integration support services to aid in the transition to permanent housing. The program is housed in a newly constructed facility with 32 individual housing units for single adult women.

· Downtown Emergency Service Center(DESC) – Kerner Scott House

(First funded in 1996)

The Kerner Scott House provides a safe supportive living environment in a 25 bed residential program to homeless persons with serious mental illness. The project serves as an entry point into the service and housing network of the community for some of the most treatment resistant homeless individuals. Through on-site services and the link with DESC’s Mental Health program, residents begin to develop strategies to re-connect with the community. The ultimate goal of the program is to transition each resident into long term treatment and permanent housing.

· Fremont Public Association/ Solid Ground Program

(First funded in 1996)

Solid Ground provides a coordinated countywide case management delivery system helping homeless families to obtain and maintain permanent housing. The program serves about 100-120 families a year with case management, housing search assistance, rent and move-in costs, and follow-up case management after the families move into permanent housing.

§ Low Income Housing Institute (LIHI) – SandPoint Families Project

(First funded in 1995)

This renewal project provides 26 units of transitional housing for families with children in a setting that is a decommissioned military base. The program is a collaboration of three different agencies, and provides case management and supportive services for the families. This project meets our local continuum's priorities/gaps by meeting a Seattle subregional priority of transitional housing for families, and constructive re-use of the military base.

· Low Income Housing Institute (LIHI) – Scattered Site Housing Program

(First funded in 1996)

In partnership with the Church Council of Greater Seattle (CCGS) and the Homestead Organizing Project (HOP), LIHI provides four scattered site self-managed transitional housing sites for homeless single adult men, women and youth. LIHI owns the houses, provides oversight of the operation and maintenance of the buildings. LIHI subcontracts with CCGS and HOP to operate the self-managed model and to provide the resident support and case management services. The maximum length of stay is 24 months with an average stay of four to six months. The goal of the program is to develop basic life skills, increase self-sufficiency and ultimately to assist in the move to permanent housing.

§ New Beginnings - Transitional Housing Program

(First funded in 1996)

New Beginnings is a six-to-18 month transitional housing program for homeless battered women and their children. The program includes a fully furnished and equipped apartment in a 17-unit apartment building. McKinney funds are used for a portion of the supportive services and operation of the building.

· Plymouth Housing Group/Coming Home

(First funded in 1996)

The Coming Home project provides intensive needs tailored services and case management to homeless single adults for the first six months following their entry into permanent housing which is provided through a consortium of low income housing providers located in downtown Seattle. The goal of the program is to help these residents become independent and to remain in permanent housing upon completion of the program.

· Public Health Seattle and King County – Medical Respite

(First funded in 1995)

The Medical Respite program provides 20 respite beds, nursing care, pharmacology and social work assistance to homeless men and women upon discharge from the hospital, in preparation for a hospital admission, or as needed by primary care clinics. The goal of the program is to stabilize the health needs of the individual so he or she can begin the process of upgrading his or her housing situation.

· Public Health Seattle and King County / Pathways Home

(First funded in 1996)

The Pathways Home project works with homeless families experiencing serious multiple barriers. The program operates in partnership with the Seattle Children’s Home and 45^th Street Clinic to provide evaluation, case management nursing, primary medical care, psychiatric care, mental health and substance abuse services and housing search assistance. The program serves about 50 families every year.

§ Seattle Children’s Home – Cedar House

(First funded in 1995)

Cedar House provides transitional housing for homeless mentally ill youth ages 18-21 in an eight-bedroom house with professional staffing, supportive services and case management. The program serves youth too old for foster care and too young or immature for most adult programs. The program provides support for drug/alcohol treatment, group and individual counseling, assistance with basic living skills, education, job training, healthcare, transportation, and helps youth work toward independent living.

· Seattle Division of Family and Youth Services/Youth Outreach Project:

(First funded in 1995)

This project provides countywide coordination of existing services available to homeless youth and outreach and employment services. The program is divided into two components. PRO-Youth provides coordinated outreach to homeless youth and The Working Zone focuses on employability and job skill development with case managers working with youth to design service plans and goals to help achieve self-sufficiency. The project also works to enhance resource management and provides joint training, quarterly roundtables, and coordinated planning among service providers. Partners in the delivery of services include: Auburn Youth Resources, The Center for Human Services, Central Youth and Family Services, Friends of Youth, 45^th Street Clinic and Youth Care.

· Workforce Development Council/Homeless Intervention Program (HIP)

(First funded in 1995)

HIP is a consortium of three partner agencies that provide employability and job training to homeless adults. The persons served by HIP are primarily those who are not eligible for welfare or other government entitlement programs and who have substantial barriers that prevent them from accessing other employment programs. The partners include the YWCA, Farestart and the Seattle Conservation Corps. The goal of the program is to provide appropriate training, skill building and job placement assistance eventually leading to an upgrade in the participants housing.

§ Youth Care – ISIS House/Home of Hope

(First funded in 1995)

ISIS provides transitional housing for older homeless youth ages 18-21. The eight-bed program provides housing, skill building, training and services. While the program serves all youth, it specializes in working with gay, lesbian and bisexual and transsexual youth.

§ YouthCare/ Friends of Youth – SandPoint Youth Group Homes

(First funded in 1995)

This program provides transitional housing combined with supportive services to assist homeless youth and teen parents with the successful transition to permanent housing. Youthcare operates two houses for 18 chronically homeless youth. One group home houses has 13 beds for youth ages 18-21 and another houses youth ages 16-18 who are not part of the state foster care program. Friends of Youth manages the remaining house for six homeless pregnant or parenting teens ages 15-21.

§ Youth and Outreach Services - Dove House

(First funded in 1997)

This renewal is a five-unit group home providing transitional housing for an ethnically and culturally diverse group of young women 16 - 18. The program provides afro-ethnic services, and a majority of the participants are of East African descent. Many of these are suffering from PSTD, and the program addresses those concerns. This project meets our local continuum's priorities/gaps by providing transitional housing and housing related services for homeless communities of color and refugees/immigrants, and contributing to the stock of transitional housing for youth.

New Project

Low Income Housing Institute – Pine City Inn

This new project provides 41 units of transitional housing for families with children, single adults, and couples without children in a rehabilitated former motel. The project has site control and meets HUD readiness standards.