Durham outlines HOPWA funding, plans RFP after administering tenant aid amid provider collapse

Durham City Council heard a detailed presentation on the Housing Opportunities for Persons With AIDS (HOPWA) program on Feb. 6, with city staff explaining how the entitlement is being used locally and saying the city will issue a request for proposals (RFP) to distribute remaining allocations after an outside provider unexpectedly stopped operating.

City Manager Reginald J. Johnson introduced the update and said the city is the HOPWA grantee for the Durham eligible metropolitan statistical area, which covers Chatham, Durham, Granville, Orange and Person counties. He turned the presentation over to Colin Davis, manager of the city's homeless system, who outlined eligible uses and recent spending.

Why it matters: HOPWA is the only federal program dedicated to housing for people living with HIV and AIDS. The city's choices about tenant-based rental assistance, short-term rent/mortgage/utility aid and supportive services affect a small, high-need population across multiple counties and require federal compliance and periodic planning.

Davis said HOPWA funds may pay for housing information services, resource coordination across jurisdictions, acquisition/rehab of facilities that serve only households with HIV/AIDS, tenant-based rental assistance (TBRA), short-term rent/mortgage/utility assistance (STRMU) and supportive services. He emphasized HOPWA recipients need not be homeless to qualify but that the city prioritizes households who are homeless and living with HIV.

Davis presented the program's recent activity: since 2020 the city has spent about $1.07 million on tenant-based rental assistance covering 28 unduplicated households; about $431,000 for STRMU to 18 households; $339,225 for supportive services to 62 households; and roughly $49,000 for one-time permanent housing placement to 49 households. He also walked council through demographic breakdowns for people served and said the HOPWA allocation and how it is spent must be described in Durham's Consolidated Plan and annual action plans submitted to HUD.

On recent operational challenges, Davis and Reginald Johnson described a disruption last summer when Central Piedmont Community Action 'the city's project sponsor for TBRA after Durham Housing Authority stopped administering the program'ceased operations with little notice. The city retrieved client records and moved to run checks itself to avoid eviction or housing loss for program participants.

"We literally were in their office having a normal technical assistance meeting with them, which we were doing a lot of regular hand holding and walking through, and they didn't mention anything to us. The next day, it's posted on our website. All of our staff are furloughed," Colin Davis said. He described outreach to affected landlords, vendor enrollment and payments the city made to bring accounts current.

Ed Nixon, acting director of Economic and Workforce Development, and Johnson told council the city took the TBRA function in-house as an interim measure while it develops a longer-term contracting plan. Johnson said the city will issue an RFP to select project sponsors for tenant-based rental assistance, STRMU, supportive services and permanent housing placement, and will also seek proposals for a strategic plan and system mapping across the five-county EMSA.

Davis said the city will put roughly $677,000 into TBRA, about $323,734 for STRMU, $339,225 for supportive services and $27,382 for permanent housing placement into an upcoming RFP package, and that roughly $330,000 will be used now to finish out an existing contract with a provider to close out the fiscal year.

Council members asked about compliance and timing. Johnson explained HOPWA is reimbursable: HUD provides an allocation and the city has a period (normally three years) to draw down those funds; the city must submit required documentation to be reimbursed. He also said the city must follow state procurement law even though HUD allows grantees to choose project sponsors.

Mayor Pro Tem and several council members pressed staff on community engagement and timely communication when problems arise. Colin Davis said the city's most recent needs assessment dated to 2019'20 and that staff plan to update the assessment and strategic plan to inform future allocations. He also recommended adding permanent HOPWA staff capacity; the city has already temporarily absorbed day-to-day administration to ensure continuity for tenants and landlords.

Reginald Johnson noted the city had recorded a small legal return of funds from an earlier year and that admin fees (about 10%) are separate from program spending. He said the city was working to reconcile records and reimbursements through HUD's Integrated Disbursement and Information System (IDIS).

Looking ahead, staff said they will: issue an RFP to select project sponsors for HOPWA activities across the five-county EMSA; amend or execute short-term contracts to ensure payment to landlords and stabilization for current participants; begin a strategic needs assessment update; and seek to hire dedicated HOPWA capacity in the Community Development Department.

Ending: Council thanked staff for the briefing and asked for follow-up materials, including the most recent needs assessment and the HOPWA CAPER (annual performance) documentation. Johnson and Davis said they would provide those documents and return with the RFP timeline.