Homelessness is an economic cost to all of us
The City of Ft. Bragg CA rejects Newsom’s Homekey
The affordable housing crisis in rural America is beyond a critical crisis including here on the beautiful Mendocino Coast. Housing is overpriced and, in many cases, substandard – as in many would not pay to rent that which passes as housing.
After reading Frank Hartzell’s article that appeared in The Mendocino Voice “Coast lodging properties are hot, Newsom’s Homekey not, in Fort Bragg” I was mystified. Why is this Homekey assistance being rejected?
California’s Project Homekey
Governor Gavin Newsom’s project Homekey has awarded $2.753 billion to create 12,676 units across California. Homekey has been able to develop housing units for less money and more quickly than more traditional homeless housing and has become a national model. see more: Dec 01, 2022 Press release: Governor Newsom Awards an Additional $36 Million for New Homeless Housing https://www.gov.ca.gov/2022/12/01/governor-newsom-awards-an-additional-36-million-for-new-homeless-housing/
As reported by Hartzell in his article, “Fort Bragg Mayor Bernie Norvell, who has been leading efforts to deal with the homeless issue in Fort Bragg, says the city isn’t interested in Homekey. That was true even when Mendocino County offered to lead the effort to buy two low-end Fort Bragg motels. Norvell says the city needs more motel rooms, not fewer, and would be hit hard by the loss of sales tax monies due to Homekey.”
Moral Responsibility
Converting a hotel to house the homeless is not a step backwards. It is a moral responsibility. Why are housing tourists more important than housing the homeless? Having one hotel to house the less fortunate will not burden or bust our economy here.
There are homeless residents living in their cars and some rotating at campgrounds who hold jobs on the Coast that service our tourist industry. I met some of them when I was recently running for Ft. Bragg City Council (2022). I challenge the current Ft. Bragg City Council to have some heart, step up, do the right thing and take advantage of California Gov. Gavin Newsom’s Homekey funding and purchase a hotel/motel to provide critically needed housing. Several are available on the market.
Housing Homeless is an Affordable Solution
Studies indicate that a homeless person costs approximately $30,000-$50,000 per year in supportive services. Two years of that is enough to pay for an entire home in some cities. There are about 500,000 homeless individuals in the U.S. There is a huge price tag to deal with homelessness that works out to at least $15 billion per year.(https://www.streetsensemedia.org/article/ending-homelessness-would-cost-far-less-than-treating-it/)
In 2018, California spent nearly $65 million; in 2019, it spent over $133 million; in 2020, it spent over $191 million. The report was produced by the state’s Interagency Council on Homelessness and presented to the Legislature in February.
“Cost efficiency is an important measurement of the effectiveness of homeless services. Service providers and agencies must work to spend the least amount of public and private dollars possible to make the greatest impact, while also saving money through decreasing the use of emergency and justice services. Whether a person is chronically homeless or not, studies consistently show that people experiencing homelessness are associated with greater emergency room use, greater inpatient admissions, and longer hospital stays than their housed counterparts” (see https://my.neighbor.org/what-is-the-cost-of-homelessness/)
For these reasons, we should all be asking the question: What is the real cost of homelessness in our communities?
Ft. Bragg CA and other cities & counties can do more
The City of Ft. Bragg still has not adequately stepped up to house the homeless 24/7.
The DANCO project that the City Council and staff have been working on since 2018 and now completed only houses a small percentage. A $17,000 grant offered by the Mendocino County Continuum of Care has made it possible for the city to buy a Greyhound bus ticket for anyone who needs a ride home. We have an approved Crisis Respite Center and a mobile outreach service. However, this does not solve the lack of housing here in Ft. Bragg. There is no supportive additional facility or services to help house the homeless – individuals and families – other than the recently built DANCO project, The Plateau on South Street.
Several times the idea was brought up of purchasing a motel or hotel. This idea was killed. Such a Project using Home Key funding would not harm the city’s tourism economy. Other cities large and small have undertaken such projects and it has been a win for all.
In 2018 the city of Fort Bragg and Danco, a nonprofit affordable housing developer, were working on The Plateau, a sixty-eight-unit affordable housing project.
SEE: Housing Element 2019 (Fort Bragg) Prepared by: Community Development Department Director Marie Jones and Staff Member Sarah McCormick https://www.hcd.ca.gov/housing-elements/docs/fort-bragg-6th-adopted092419.pdf
In 2020 On Nov. 1, the City Council directed staff to submit a grant application for $3 million to the state Continuum of Care for Homeless Emergency Aid Program funding for the permanent supportive housing component of the project. In December, the Continuum of Care awarded the full requested amount for construction of 20 permanent supportive housing units at the South Street location.
This was under the administration of Mayor Lee and City Manager Tabatha Miller. The city worked with DANCO to secure financing:
https://www.city.fortbragg.com/home/showpublisheddocument/2066/637720193437100000
Because The Plateau is an all-electric and affordable housing development. It was awarded $345,000 in incentives—$5,000 per home—through the Advanced Energy Build program offered by Sonoma Clean Power, the public electricity provider for Mendocino County and the development.
In 2019 the Ft. Bragg City Council passed a resolution Approving and Authorizing the Execution Of An Affordable Housing Loan Agreement with Fort Bragg South Street Lp For The Plateau Project https://cityfortbragg.legistar.com/View.ashx?M=F&ID=8806651&GUID=B2955FAE-85F6-49A8-B340-2DA1DA94007D
The Plateau also qualified for $3 million in state grant funding for 20 permanent housing units with support services for residents facing homelessness. In addition, it received federal and state tax credits, city and county Homeless Emergency Aid Program grants, and other funding available to affordable and all-electric housing developments. Pacific Western Bank provided construction and permanent financing through its Community Benefits Program.
https://www.treasurer.ca.gov/cdlac/meeting/2020/20200414/staff/8.34.pdf
Time to Step Up!
Next Steps? Governor Newsom is leading on this. The City of Ft. Bragg can use Homekey funding as an opportunity to purchase one of the several hotels/motels up for sale and to put in its muscle to make a difference.