Sacramento Housing Authority/City Council Meeting – March 12, 2024

The joint meeting of the Sacramento Housing Authority and City Council convened at 2:04 p.m. on March 12, 2024, and adjourned at 4:18 p.m. The meeting addressed a consent calendar item, a public hearing item, a major discussion item on the region's homelessness action plan and state funding, and an oral report on the city-county partnership agreement. Councilmembers present: Guerra (arrived 2:07 p.m.), Jennings, Kaplan, Maple, Talamantes, Valenzuela, Vang (arrived 2:05 p.m.), and Mayor Steinberg.

Consent Calendar

• Item 1 – Forgiveness of Accrued Interest on The Terraces at Capitol Park Loan (1609 O Street)
  • Adopted Housing Authority Resolution No. 2024-0001 approving forgiveness of up to $1.4 million in accrued interest (after principal repayment) and delegating authority to the Executive Director to execute the forgiveness. Passed unanimously (7-0, Guerra absent).

Public Hearings

• Item 2 – TEFRA Hearing for Donner Field Senior Apartments ($30,000,000 Tax-Exempt Bonds, 4501 9th Avenue)
  • Continued to April 9, 2024, by unanimous vote (Motion No. 2024-0049).

Public Comments & Testimony

• David Drellinger (speaking on Item 3): Supported using low-cost prefabricated pallet homes (approximately $14,000 each) as interim housing, noting that 60% of HHAP funds go to interim shelter. Suggested using city land (e.g., former military base) for such housing.
• Jeffrey Tartaglia (speaking on Item 3): Criticized the point-in-time count quality but appreciated the collaborative regional approach. Recommended reviewing Los Angeles County's homeless system as a cautionary example.
• Kai Vang (public comment on matters not on the agenda): Requested Sacramento Police Department confirmation that a specific driver was responsible for his father's death in a hit-and-run. The city committed to follow up, noting that public documents may be released but not necessarily a signed letter from the chief.

Discussion Items

• Item 3 – All In Sacramento: Regionally Coordinated Framework to Prevent and End Homelessness & HHAP-5 Funding Allocation

  • Staff (Ya-yin Isle, City Housing Manager) presented the plan, developed with Sacramento Steps Forward, the County, and other partners. Key goals: reduce unsheltered homelessness by 20% between 2024 and 2026 point-in-time counts; increase exits to permanent housing to at least 42% in 2024. The city's HHAP-5 allocation is $27,053,240.85. The funding would extend existing programs, shift $6.5 million in city-funded programs to HHAP, and invest $2 million in prevention and $2 million in permanent housing. Notable solutions include a street-to-housing pilot (modeled after Houston, which saw a 53% homeless reduction) and a cross-system pilot for high-frequency service users.
  • Councilmember Kaplan expressed concern that the 79-page “Community Standards” were included as an appendix without council briefing, though staff and Sacramento Steps Forward clarified they are aspirational and flexible. After discussion, a motion was passed to approve the resolution with a commitment to bring the community standards back for further council review by July 2024.
  • Councilmember Guerra supported the plan and noted the $2 million for permanent housing is a small portion but helps leverage other funds. Councilmember Valenzuela highlighted that 53% of homeless individuals could be prevented or quickly rehoused with timely assistance. Mayor Steinberg emphasized the need for outcome-based data and public communication, referencing Prop 1 and the success of earlier integrated services programs.
  • Vote: Unanimous (8-0). Resolution No. 2024-0070 adopted.

• Item 4 – City County Partnership Agreement to Address Homeless Crisis (Oral Report)

  • Brian Pedro (Director, Department of Community Response) and Tim Lutz (Director, Health Services, Sacramento County) presented a six-month update (June–December 2023). The agreement has 4 categories: outreach, services, shelter/housing, training/information. Most metrics are green; yellow items include full staffing of CalAIM outreach workers (completed in December), full shelter integration into coordinated access (city at 83%), and data sharing (social health information exchange vendor selection in June/July, 3-year rollout). Key statistics: 3,855 unduplicated individuals contacted; 380 individuals screened and referred for behavioral health services; 26 enrolled in Full Service Partnerships (FSPs) via the Heart Team. Sacramento County has 2,391 current FSP enrollees out of 2,751 capacity, adding 360 slots in 2023 and planning 200 more forensic (Thrive) FSPs in April 2024. By county size, Sacramento has among the highest FSP slots per 1,000 population in the state.
  • Councilmembers praised the evolution of the partnership but raised concerns about throughput, shelter priority for city residents, and the need for more intensive outreach to enroll people into FSPs. Mayor Steinberg questioned whether the “light touch” approach yields enough enrollments (26 enrolled from roughly 100 encampment engagements) and urged greater intensity in encampments. The report was received and filed.

Key Outcomes

• Unanimously approved forgiveness of up to $1.4 million in accrued interest on the Terraces at Capitol Park loan.
• Continued the Donner Field Senior Apartments TEFRA hearing to April 9, 2024.
• Unanimously adopted Resolution No. 2024-0070 approving the All In Sacramento plan, the HHAP-5 funding allocation of $27,053,240.85, and authorizing submission of grant application by March 27, 2024. Council directed staff to return with the Community Standards for a more detailed review and discussion by July 2024.
• Received and filed the City County Partnership Agreement six-month update, with acknowledgment that further work is needed on data integration, shelter throughput, and intensifying outreach to enroll more chronically homeless individuals into FSPs.