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Direct the Auditor Controller to amend the Fiscal Year 2025-26 Housing and Community Development Adopted Budget to increase appropriations for Community Development Fund (013-3100-8545-HCD004) by $276,071 financed by Permanent Local Housing Allocation funds received in prior years; and allocate $276,071 to Activity 6 (Homeless Services) of the Permanent Local Housing Allocation that will go to the Department of Social Services to fund operations and services at the Navigation Center Salinas Salinas Housing, Advancement, Resources, & Education Center.
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RECOMMENDATION:
It is recommended that the Board of Supervisors:
a) Direct the Auditor-Controller to amend the Fiscal Year 2025-26 Housing and Community Development Adopted Budget to increase appropriations for Community Development Fund (013-3100-8545-HCD004) by $276,071, financed by Permanent Local Housing Allocation funds received in prior years; and
b) Allocate $276,071 to Activity 6 (Homeless Services) of the Permanent Local Housing Allocation that will go to the Department of Social Services to fund operations and services at the Navigation Center Salinas Salinas Housing, Advancement, Resources, & Education(SHARE) Center.
SUMMARY:
The Housing and Community Development (HCD) Department has an agreement with Department of Social Services (DSS) to provide financial support for the Navigation Center-Salinas Share Center using a percentage of the Permanent Local Housing Trust Allocation (PLHA) funds. Shortages for DSS funding have occurred as a result of lower than anticipated PLHA fund amounts in prior years. HCD has identified $276,071 in PLHA funds that have not been recognized in revenue from prior years. Recognizing these funds (appropriations) will allow HCD to increase the funding for DSS to operate the Share Center and Navigation Center (Activity 6 of the PLHA program) and meet the obligations of the agreement between HCD and DSS for funding.
DISCUSSION:
The Housing and Community Development Department and Department of Social Services (DSS) entered an Inter-Departmental Memorandum (IDM) dated June 28, 2022. The IDM was amended dated March 4, 2024. The memorandum is to provide Permanent Local Housing Allocation (PLHA) funding for Activity 6 Projects: Navigation Center and Case Management Services. The IDM covers the time of June 30, 2021, through December 31, 2026. It allows for financial support for the Navigation Center-Salinas Share Center in the amount of $1,593,176 and Case Management Services in the amount of $790,275.
Funding form the PLHA program are dependent on actual annual grant amounts. Actual annual grant amounts have been slightly lower than anticipated in recent years and funding for DSS to support the Navigation Center and Share Center has been lower than anticipated. In review of the PLHA funding amounts HCD has discovered $276,071 is available from prior years. This amount is proposed to be appropriated in the Community Development Fund budget and allocated to DSS for operation of the Navigation Center and Share Center to address the shortfalls in funding consistent with the IDM. Funding for homeless services is an allowed use of PLHA under Activity 6 of the program.
OTHER AGENCY INVOLVEMENT/COMMITTEE ACTIONS:
County Counsel approved the original IDM and Amended IDM as to form and has reviewed this request.
FINANCING:
Approval of this action will not impact the County General Fund. The increased appropriations in Fund 013, Budget Unit 8545, Appropriation Code HCD004 is funded through unrecognized prior year grant funds. The new allocation to DSS for the Navigation and Share Center is equal to the amount of new appropriations. No General Fund discretionary resources are required.
BOARD OF SUPERVISORS STRATEGIC PLAN GOALS:
The requested budget appropriation supports the Board of Supervisors’ strategic initiatives by ensuring continued funding for the Navigation Center and Case Management Services, which are critical components of the County’s Homelessness Initiatives under the Health & Human Services pillar. This increase enables the County to meet contractual obligations and maintain essential services that promote housing stability, improve access to care, and enhance overall community well-being.
_X_ Well-Being and Quality of Life
____ Sustainable Infrastructure for the Present and Future
____ Safe and Resilient Communities
____ Diverse and Thriving Economy
Link to the Strategic Plan:
<https://www.countyofmonterey.gov/home/showdocument?id=139569>
Prepared by: Dawn Yonemitsu, Management Analyst II, x5387
Reviewed by: Darby Marshall, Housing Program Manager x5391
Approved by: Craig Spencer, Director of Housing and Community Development x5233