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HomeMy WebLinkAboutBethlehem Inn Update1' Date: To: From: Re: April 6, 2009 Board of County Commissioners Erik Kropp, Deputy County Administrator BETHLEHEM INN UPDATE ci) The Bethlehem Inn is scheduled for the April 8"' work session to update the Board. The Inn will update the Board on their capital campaign plan and discuss the County's community grant award. In addition, we still need to finalize the MOU with the Inn. Below is discussion of the Community Grant and MOU outstanding items. Also attached is a general timeline related to the Bethlehem Inn and a discussion paper related to the need of a homeless shelter in Central Oregon (this was drafted in preparation for asking for a federal earmark, but not distributed). These are included mainly as background information for Commissioner Unger. Community Grant — Remaining $15,000 Awarded to the Bethlehem Inn The Bethlehem Inn received a $30,000 community grant from the County for case management services. The Board awarded the Inn half of the $30,000 and asked that the remaining half be awarded after the following three conditions were met: 1. MOU signed 2. The Inn raised an additional $15,000 by using the first $15,000 as "matching funds" 3. The Inn developed a capital fundraising plan MOU Outstanding Items Interest payment on the purchase price • Reasons the County should pay interest: o In the original funding scenario developed by the County, interest never discussed because the plan had the funds being repaid within the same fiscal year; o Including interest payment could jeopardize CDBG funding opportunities by structuring the funding as retiring debt versus property acquisition by the County on behalf of the Inn; o Paying interest could be the County's contribution for future grant applications. • Reasons Inn should pay interest: o Under the original funding plan there was going to be no real cost to the County; o The lost interest needs to be repaid from somewhere. Recommendation: include language in MOU that interest will be decided at a future time as to not jeopardize CDBG grant applications. What if CDBG grant application isn't successful — should MOU read County will apply for $800,000 in CDBG fund or be responsible for raising $800,000? Recommendation: County shall apply for CDBG funds. If the County is unsuccessful, County will take the lead and work with Inn on securing the funds through other grants or fundraising. Sewer hook up cost — included in outstanding balance for Inn to raise or County cover? Recommendation: further discussion. c: Dave Kanner, County Administrator Bethlehem Inn General Timeline • 1990s — a group of churches formed a loose organization to serve individuals who were homeless. • 1999 — the group formed a collaboration called the Bethlehem Inn. • October 2004 — through an agreement with the County, the Inn moved into the Sheriff's Office Work Center on a temporary basis. • July 2, 2007 — former Econo Lodge purchased by the County/City. Fundraising plan is for the County to secure $800,000 in CDBG funds and Inn to fundraise the balance. • July 15, 2007 — Bethlehem Inn moves into the Econo Lodge. • Month??? — February 2008 — failed septic system limits the number of residents until the property is hooked up to sewer. Sewer hook-up was $251,000. • December 2007 - County and Bethlehem Inn staff came before the Board and laid out a plan to raise the money to pay back the county for the purchase of the Bethlehem Inn o Housing Works was going to raise $2.5 million o County was going to raise $800,000 through CDBG, but it's learned that all the other funds have to be raised first. • April 2008 — update to BOCC with Sandra Meres, Bethlehem Inn, and Cyndy Cook, Housing Work. Cyndy reports on federal and state governments' focus on the housing first model. • July 2008 — Bethlehem Inn restructures; cuts operational costs, including not re-newing the Executive Director's contract. The Need for a Regional Shelter in Central Oregon for Housing Reintegration A white paper written by Deschutes County January 28, 2009 Request Provide $2.53 million to fund a permanent regional shelter in Central Oregon to address the growing problem of homelessness and begin taking action in support of the Housing First model. Background and Problem Statement In Central Oregon, 1,736 people were recently documented as homeless, including 752 (or 43%) children. These figures are based on the Homeless Leadership Coalition's annual point -in -time homeless count which was conducted on January 31, 2008. The number is expected to be significantly higher in 2009 as a result of the recent downturn in the economy. Central Oregon lacks a permanent emergency shelter for people who are temporarily homeless, but have the potential to be reintegrated into permanent housing. Although federal and state housing funds focus on permanent housing and services, Central Oregon is in most critical need of a permanent emergency shelter that can serve as the entry point to achieving sustainable housing. Bethlehem Inn History Recognizing the need for a regional shelter, a group of churches formed a loose organization in the 1990s to serve individuals who were homeless. Services offered by the group included preparing meals and sheltering people in various church buildings on a rotating basis throughout the winter months. In 1999, this group formed a collaboration called the Bethlehem Inn. Since that time, the Bethlehem Inn has evolved into a registered non-profit agency dedicated to serving homeless families, single adults, the elderly, veterans, and pregnant women. After several years of operating in a transitory environment, the Bethlehem Inn was offered space at the Deschutes County Sheriffs public safety campus to operate a shelter. This arrangement was considered a temporary measure which would last only until the County secured funding to operate a work center on the site. Once that funding was secured, the Bethlehem Inn, City of Bend, and Deschutes County agreed to work together to secure another facility rather than return to the practice of sheltering people in churches. On July 2, 2007, the City of Bend and Deschutes County purchased a former Econolodge located at the north of the city of Bend for $2.5 million and spent an additional $251,000 to connect the property to sewer. The purchase was made with the intention of transforming the building into a regional homeless reintegration center that would be operated by the Bethlehem Inn. The location is particularly suitable for a homeless shelter as the zoning designation allows the use outright and the site is within close proximity to public transportation, potential job opportunities, shopping, and other services. The purchase required a down payment of $250,000, which was made with $220,000 in City of Bend Community Development Block Grant (CDBG) funds and $30,000 in Deschutes County economic development grant funds. These funds were considered a public contribution to the project and are not to be paid back unless the property is used for a purpose other than a shelter. The remaining funds to purchase the property and pay for the sewer connection were provided by the County in the form of a $2.5 million loan (the request of $2.53 million includes interest payments). The plan to pay back the loan relies on securing funding from the following sources: a CDBG public facilities grant (up to $800,000), state and federal housing funds, foundations, private donors, and fundraising. The Housing First Model To address the issue of homelessness, the federal government and the State of Oregon have adopted a strategy of "Housing First." This model is a key component of the "10 Year Plan to End Homelessness" and represents a change from the "continuum of care" practice that moves individuals through different levels of housing types, such as from the streets to a public shelter, then to a transitional housing program, and ultimately into their own apartment. While Deschutes County endorses both the 10 -Year Plan and the Housing First concept, its leaders and homeless advocates also recognize that there is an immediate need for a permanent emergency shelter to serve as a critical first step in reintegrating people into more stable, long-term housing. State and Federal Housing Funds State and federal funds currently available to address the problem of homelessness include the following: • Emergency Shelter Grant Program - federal funds that pass through Oregon Housing and Community Services to increase bed capacity of emergency shelters and to support homeless prevention activities. • HUD Continuum of Care - funds used mostly for permanent housing and support services, not emergency shelter activities. • Emergency Housing Account - state funds passed through the local community action agency to assist persons who are homeless or at risk of homelessness. • Housing PLUS program - Oregon Housing and Community Services program for permanent housing. This program received $16 million in new funding in 2008. Although each of these programs provides important infrastructure and/or services to the homeless population, they do not include funds for basic and necessary shelter needed within Central Oregon. Recommendation Emergency shelters offer a critical first step necessary before a person can successfully move into permanent housing. Central Oregon must have access to a permanent regional shelter to address the growing problem of homelessness and begin taking action in support of the Housing First model. The current Bethlehem Inn operation could fulfill this need, but funds must be obtained to repay the outstanding loan and ensure operational stability and long-term sustainability.