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Council debates HOME‑ARP deadline and domestic violence shelter funding; staff told to hold $2M while solicitations proceed
Summary
After a feasibility study estimated a new domestic violence shelter would cost $17M–$22M and face operating‑funding challenges, staff recommended removing $2M of HOME‑ARP from the shelter and reallocating it; council directed staff to hold the $2M in place for now and pursue solicitations and partnerships while staff return with public‑comment steps.
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Housing and Redevelopment staff updated the council Sept. 18 on the status of HOME‑ARP funds and a domestic violence (DV) shelter feasibility study and asked for direction on reallocating a $2,000,000 HOME‑ARP line item. Imelda Speck reviewed the HOME‑ARP program rules (eligible activities, administrative and operating caps) and reminded the council the city’s HOME‑ARP allocation—about $2.9 million—must be spent by Sept. 30, 2030.
Speck summarized a February feasibility study that estimated capital costs for a DV/non‑congregate shelter in the $17M–$22M range and annual operating costs near $2.5M, with about 45% of operating revenue likely to come from government grants. Staff said operator availability, limits on state funding, and timing against the HOME‑ARP deadline created substantial execution risk.
Staff reported the city can identify about $15M of city‑secured capital funds and that a proposed federal appropriation of roughly $5.8M could raise the available capital to about $20.8M. Given the operational funding uncertainty and the HUD 9/30/2030 draw‑down deadline on HOME‑ARP dollars, staff recommended redirecting the $2M HOME‑ARP allocation to other eligible activities (affordable rental housing, tenant‑based rental assistance, nonprofit operating/capacity building) and using non‑HOME funds to pursue construction of a shelter.
Councilmembers debated options at length. Several said the city should hold the $2M in the HOME‑ARP plan while staff issues RFIs/RFPs to seek a qualified operator and pursue public‑private partnerships and federal appropriations; others urged starting a substantial amendment process to reallocate the HOME‑ARP dollars to supportive services or affordable housing now to avoid the risk of returning unspent money to HUD.
Council also discussed a $100,000 request to support inclement‑weather shelter operations. Staff advised that HOME‑ARP supportive‑services rules are limited to items such as transportation, food and specific supportive activities and would not fully underwrite operating costs; councilmembers proposed using general‑fund resources or issuing a small competitive RFP so a nonprofit operator could be reimbursed with defined accountability.
City Manager Chris Hillman summarized counsel direction near the meeting’s end: council showed majority support to keep the $2,000,000 earmarked for the DV shelter “in the bank” for now while staff pursues solicitations (RFI/RFP), operator outreach and potential public‑private fundraising; staff will return with the public‑comment plan or, if council decides otherwise, a substantial amendment process to reallocate the HOME‑ARP funds. No formal binding vote was taken at the Sept. 18 session.

