Item Description:
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Agmt A2311849 with U.S. Dept of HUD Community Project Funding program to accept grant funds for emergency shelter capital costs, 09/01/23-08/31/30, $500,000 (recv)
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Resolution:
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BE IT RESOLVED, that Agreement A2311849 with the U.S. Department of Housing and Urban Development Community Project Funding program, which was made pursuant to the authority of the Consolidated Appropriations Act, 2022 (Public Law 117-103) and the Explanatory Statement for Division L of that Act, to accept grant funds for the development of an emergency shelter for individuals experiencing homelessness, during the period of September 1, 2023 through August 31, 2030, in the receivable amount of $500,000, be approved; that the Chair of the Board be authorized to sign the Agreement on behalf of the county; and that the Controller be authorized to accept and disburse the funds as directed; and
BE IT FURTHER RESOLVED, in order to implement the above resolving clause, the County Administrator is authorized to negotiate an Agreement with Simpson Housing Services for eligible costs for the development of an emergency shelter facility from September 1, 2023 through December 31, 2024 in a total not to exceed amount of $500,000; and following review and approval by the County Attorney’s Office, the Chair be authorized to sign the agreement on behalf of the county; and the Controller be authorized to transfer or disburse funds as directed; and
BE IT FURTHER RESOLVED, that sponsorship and acceptance of grant funding for this program by the Hennepin County Board of Commissioners does not imply a continuing funding commitment by Hennepin County for this program when grant funds are no longer available.
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Background:
Hennepin County is the recipient of grant number B-22-CP-MN-0504 in the amount of $500,000, for the Economic Development Initiative (EDI) for the purposes of Community Project Funding (CPF)/Congressionally Directed Spending, administered by the Department of Housing and Urban Development (HUD). Hennepin County has selected Simpson Housing Services Inc. (SHS) as the sub-recipient for this funding, for the purposes of construction on the Simpson Community Shelter and Apartments, which aligns with the purpose of “Emergency Shelter Program.”
The Simpson Community Shelter and Apartments Project, proposed by local non-profit leaders Simpson Housing Services (SHS) and Project for Pride in Living (PPL), will replace the Simpson emergency shelter, which was housed in the basement of the Simpson United Methodist Church from 1982 until January 2023 and located at 2740 1st Avenue South in Minneapolis. Now and during construction, Simpson emergency shelter is located at Zion Lutheran Church at 128 West 33rd Street in Minneapolis with a bed capacity of 64, increasing to 70 when the Simpson Community Shelter and Apartments Project is complete. The project will also add a total of 42 units of affordable housing and a service space to provide intensive services to people staying in shelter and permanent housing.
Total construction costs are $41.6 million, $26.6 million for the emergency shelter component. In 2021, Hennepin County approved $3,500,000 in pandemic recovery funds (BAR 21-0378), which were transferred to the City of Minneapolis to manage (RCA-2021-01220) in addition to the City’s own $3,500,000 commitment for the emergency shelter component. This request would bring the total County commitment to $4,000,000, resulting in a total local commitment of $7,500,000.
This will ensure that Simpson can continue providing emergency shelter as part of our homeless response system. Given ongoing demand for emergency shelter for adults experiencing homelessness, the community cannot afford to lose this resource. The new facility improves upon spacing and separation of sleeping spaces by doing away with bunk beds, adding space between sleeping areas, and reducing the number of guests sleeping in each room. These measures, along with the on-site health clinic, make for much safer shelter operations. Finally, Simpson will be able to build on what has been accomplished so far in providing emergency shelter for adults experiencing homelessness and implement a safe, healthy, person-focused, and housing-focused program.
Approval of this request will fulfill the funding needed for the emergency shelter component and assist in the whole project moving forward.
Current request: This board action will approve Agreement A2311849 with the US Department of HUD and accept $500,000 in HUD Community Project Funding for eligible costs relating to the development of a new Simpson emergency shelter facility for adults experiencing homelessness, as part of the larger permanent supportive housing, shelter, and service center project at the site of the Simpson United Methodist Church building.
Disparity reduction: This board action request aligns with Hennepin County disparity reduction efforts by funding an emergency shelter facility for adults experiencing homelessness, most of whom are disparately impacted by homelessness and housing instability.
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Recommendation from County Administrator: Recommend Approval