Introduction
The general issue of homelessness is at the forefront of cities, counties, and the state due to the increase of homeless individuals, the lack of housing options, and deficiencies in our mental health services. Orange County is in the midst of a homelessness crisis, with the number of unsheltered homeless individuals increasing by 54 percent in the last five years, despite increasing expenditures to combat the issue.
In 2017, the County conducted a Point in Time Count of all homeless individuals in the county – both sheltered and unsheltered. According to the 2017 Point in Time Count, approximately 4,800 people in Orange County experienced homelessness. Of that total, approximately 2,550 of those were unsheltered on any given night. Approximately 1,100 of these unsheltered individuals resided in North Orange County. By mid-2017, homeless encampments and gathering places could be found in several areas throughout the county including the Santa Ana River area; the Santa Ana Civic Center; and numerous parks, beaches, flood control channels, railroad right-of-ways, and open space areas. In 2017 and 2018, multiple lawsuits related to policies and procedures impacting homeless individuals, as well as related to the lack of adequate services and facilities for the homeless, were filed against the County of Orange and several cities, such as the OC Catholic Worker et al case filed against the Cities of Orange and Anaheim. While Brea was not named as a defendant in any of these lawsuits, Brea has individually entered into a Settlement Agreement with the plaintiffs from the OC Catholic Worker et al case to provide protection against future lawsuits related to homelessness issues. Brea’s Settlement Agreement, approved by City Council on March 19, 2019, mostly mirrors the language in the Settlement Agreement between the cities named in the OC Catholic Worker et al case approved in November 2018.
Among the issues at stake in these local lawsuits was the validity of anti-camping and related laws. In the Martin v. the City of Boise case that was decided in 2018, the Ninth Federal District Court ruled that anti-camping laws violated homeless individual’s eighth amendment rights. The violation stated that prohibiting homeless individuals from sleeping outdoors amounted to cruel and unusual punishment if there are no low-barrier shelter options available for them.
By the end of 2017, there were only two County-operated homeless shelters – the Bridges at Kraemer Place in Anaheim (200 beds) and the Courtyard in Santa Ana (360+ beds). These shelters have operated at or near capacity since they opened. In addition to the County-operated shelters, there are numerous shelters operated by non-profits throughout the county including several in the North SPA. However, many of these shelters have certain barriers that restrict access to a specific population such as homeless families and single mothers. Therefore, by the end of 2017 there was a deficit number of low barrier shelter beds in the county.
In January 2019, in accordance with a federal mandate, the County conducted another Point in Time Count of all homeless individuals in the County, both sheltered and unsheltered. The results of that count are expected later this spring.
North Orange County SPA Efforts
To provide a more regionally focused response to the homelessness crisis in Orange County, the County of Orange established three separate Service Planning Areas (SPA’s) for the planning and delivery of homelessness services. The City of Brea, along with 12 other north Orange County cities, became part of the North Orange County SPA (North SPA). The North SPA, comprised of the cities of Anaheim, Brea, Buena Park, Cypress, Fullerton, La Habra, La Palma, Los Alamitos, Orange, Placentia, Villa Park, Stanton, and Yorba Linda, as well as the County, began working collectively to address homelessness in the region including seeking the development of multiple shelters to provide needed homeless services for the region.
After months of extensive discussions and assessments, two locations for the development of “navigation centers” (centers) were identified – one in Buena Park and the other in Placentia. These proposed locations were selected based on a number of factors including zoning, proximity to related services, and site availability. It is the intent that the centers will be a multi-jurisdictional approach to guiding underserved residents back into society by increasing access to a shelter with basic needs, health and job resources, and opportunities to reunite with friends and family. Each center is proposed to provide 100 beds and will operate similarly to the Bridges at Kraemer Place shelter. Combined with the 325 new beds being provided in the City of Anaheim, the North SPA region will have 525 additional beds available to homeless individuals. This amount complies with the Settlement Agreements with the Cities of Anaheim and Orange in the OC Catholic Worker et al case.
Funding for Center Construction and Operations
The estimated cost to acquire the sites and construct the two shelters is $14,315,070 ($7,515,070 for Buena Park and $8,800,000 for Placentia). The two shelters will be constructed similarly to the Bridges shelter in Anaheim and the Orange Family Care Center in Orange. The annual estimated operational cost for the two centers is $3,005,000.
The funding for the acquisition and construction will be in the form of state homeless grant funds and local funds. Last fall, the North SPA applied for and was awarded $12,062,300 in Homeless Emergency Aid Program (HEAP) funding from the State of California via the Orange County Continuum of Care Board. The HEAP funding is designed to provide direct assistance to cities and counties to address the homelessness crisis throughout California.
Another funding source will be SB 2 (Building Homes and Job Act), which places a $75 document recording fee on certain real estate transactions for the purpose providing funding for the development of affordable and homeless housing. Under SB 2, cities receive an annual allocation, with the County collecting and directing use for the smaller cities and larger cities receiving it directly. Combined, the North SPA cities are committing $1,057,272 of their SB 2 funds to the two navigation center projects.
Therefore, the balance of local funds needed for the projects is $1,195,498. The local share for Brea is 4.9%. After the HEAP and SB 2 funding, the City is responsible for $58,571. For this $58,571 payment, the City has requested approval from the County to apply a payment of $50,000 of the $100,000 originally targeted for its contribution to Bridges at Kraemer Place to the construction of the Buena Park and Placentia shelters. If approved, the additional $8,571 can be funded through the City’s Affordable Housing Fund 270. It should be noted that the estimated construction costs may be adjusted as the projects become more defined during the design phase and as construction bids are awarded by the two host cities. As such, the City’s share of the construction costs may change.
Acquisition and Construction Costs
| Funding Type |
Total Amount |
Brea Share |
| HEAP Funding – Buena Park Award |
$6,412,300 |
|
| HEAP Funding – Placentia Award |
$5,650,000 |
|
| SB 2 Funding |
$1,057,272 |
|
| Local Funding |
$1,195,498 |
$58,571 |
| Total Project Cost |
$14,315,070 |
$58,571 |
Funding for center operations is expected to be from County funds, SB 2 funds and other local funds. The County has committed to providing $1.25 million for annual on-going operations. Future SB 2 funds will also provide for $1.57 million annually. Therefore, local funds needed for annual operating costs are estimated to be approximately $182,000. The City’s local share is 6.19%, and the annual contribution is estimated at $11,256; however, that amount could fluctuate in future years based on changes in center operating costs and City use of beds in the centers. The City’s share of operational costs can be funded through the Successor Agency Housing Fund 280.
Memorandum of Understanding Terms and Conditions
To identify the financial responsibility for the construction and operations for each city, as well as to identify the terms and conditions of city participation and center operations, a proposed Memorandum of Understanding (MOU) between the 13 North SPA cities has been negotiated. Provided below is a summary of the terms and conditions for the MOU:
1. Membership in the MOU identifies the 13 North SPA cities including two host cities (Buena Park and Placentia). Anaheim is a participating agency as it relates to reciprocal sharing of beds between the navigation centers. Anaheim is not a funding participant as they are the primary funding source for the two centers in their city. The County of Orange is a participating agency as it relates to funding and certain operations.
2. Agreement is for a ten-year term. The Agreement may be extended by mutual agreement of the cities.
3. Cities can terminate their participation via the proper noticing requirements per the MOU.
4. The host cities are the owners and lead agencies for center operations, and shall enter into Operating Agreements with third-party operators for the day-to-day operations of the centers.
5. The share of funding for the construction and operations by each city is identified in the agreement (Party Share) and is based on a number of factors including population, the number of unsheltered homeless, and the number of existing shelter beds within each city. The Party Share reflects separate formulas for construction and for operations in which Brea is responsible for 4.9% of the local funding for construction costs and 6.19% of local funding for annual operations costs.
6. While host cities have priority to bed access, all cities shall have the right to utilize an approximate equivalent percentage of its city share of the total beds in the centers. In theory, Brea would have approximately 6.19% of bed access as the City is providing 6.19% of the local funding for center operations.
7. Host cities shall develop an Operating Plan which shall govern the day-to-day management and operation of the centers, and shall be incorporated into the Operating Agreement for the centers. The Operating Plan must be approved by the host cities, the center operator, and the participating cities. Both centers will operate with the same Operating Plan.
8. There shall be an Annual Audit of center operations to assess the sufficiency of the beds; each city’s usage of beds over the past year; each city’s anticipated bed needs for the ensuing year; funding needs and opportunities; anticipated capital improvement or operational expenses; and the extent to which the centers are achieving the purposes of this Agreement. Future funding needs and Party Share may be adjusted based on the result of the Annual Audit.
9. The highest-ranking appointed executive official for each of the Parties, or his/her duly authorized designee (Party Representative) will participate in annual reviews and approval of operating plans or other policies and procedures as needed. Amendments to this Agreement must be in writing and approved by the governing body of each Party.
Conclusion
The cities of Buena Park and Placentia are proceeding with their respective public review processes for the potential approval of their centers. It is anticipated that their City Councils will be voting on the projects in April. Should the projects be approved, it is estimated that the centers will be operational by late summer or fall 2019, following the completion of the necessary tenant improvements. The commitment of the two host cities to be leaders in addressing the homelessness crisis is to be commended.
Also to be commended is the high level of cooperation among the 13 cities in the North SPA. This proposed MOU would not be possible without the cohesive nature of all the cities in being a part of the solution to address homelessness. There are very few multi-jurisdictional models similar to this MOU in the state or country. Therefore, this MOU is unique and the cities acknowledge there may be necessary changes to the terms and conditions over time. As such, it is requested that the city managers be able to make non-substantive changes to the MOU so that the agreement is able to reflect the dynamic needs of homelessness services.
By executing the MOU, which leads to opening the two navigation centers in the North Orange County area, the cities of the North SPA will be complying with the federal mandate of Honorable David O. Carter, United States District Court Judge, which has threatened to prohibit cities from enforcing anti-camping laws if additional shelters or alternative housing are not provided. It is also believed these centers will be in line with the recent ruling made in the Martin v. the City of Boise case. Overall, the North SPA cities believe that both the Buena Park and Placentia Navigation Centers are part of the region’s commitment to continue to provide homeless individuals with the supportive services they need. |