Fiscal Year 2013-2015 Special Budget Meeting

HONORABLE MAYOR AND CITY COUNCIL Subject: Proposed FY 13-15 Proposed Policy Budget Date: June?, 2013 ' Page 6 CDBG, and County funds to ensure the City can maintain its maximum allocations of HUD funds and thus services for Oakland's homeless population. DHS was only informed on May 30, 2013 of the much higher (20+% versus 5%) sequestration reductions in Housing Opportunities for Persons with AIDS (HOPWA) and Emergency Shelter Grant (ESG). Staff is still assessing the service and staffing impact of these massive cuts. CDBG reductions of 21% were implemented as part of the City's budget development process for FY 2013-15 and the impacts to staff and services are as follows and reflected in DHS's baseline budget. • Housing Development Coordinator III was reduced from full time to 0.60 FTE. Position provides property management for 100+ units of transitional housing and Housing and Urban Development (HUD) grants administration. Winding down of some state rehabilitation grants made this reduction possible, however staff will seek funding to restore given workload. • An Accountant II was reduced from full time to 0.50 FTE. This position supports $9 million in program funds from local, state, federal and private donations. DHS fiscal unit will need to absorb added workload. • Service reductions of $146,000 will also be made, however, the specific impact is yet to be determined. 4) By what amount does the Oaldand Housing Authority fund the City of Oakland PATH ReHousing Initiative? When will sequestration cuts occur to that program? The Oakland Housing Authority (OHA) funds the City's Oakland PATH ReHousing Initiative (OPRI) housing subsidy at $1.5 million in FY 2012-13. The City of Oakland matches these funds with dollars for homeless outreach and long term supportive services. These dollars are derived from a variety of sources including General Fund, Measure Y and Alameda County in an estimated amoimt of $600,000. OPRI provides permanent supportive housing for special populations that might not otherwise access OHA services. Ths includes: 1) individuals living in encampments; 2) transition age youth (18-24 years) in foster care and juvenile justice system; and 3) young men returning to Oakland from San Quentin State Prison via Oakland Unite's Project Choice Program. It should be noted that housing stability and reduced recidivism outcomes have been outstanding thus far. OHA sequestration reductions to OPRI are already occurring. OHA initially committed to providing 165 subsidies, however, they have been required to reduce that number to 145, and may be reduced further in the next 12 months. In years past, the program has always been backfilled when clients left the program. However, that will no longer be allowed, and as such, the 145 benchmark is anticipated to be reduced throughout FY 2013-14. The Department of Human Services has not yet received OHA's draft contract, and thus, cannot provide a specific funding level for FY 2013-14 yet.