CC 2019-04-09_11a Information_Hillside Church Conceptual Project_Grover BeachMEMORANDUM
TO: CITY COUNCIL
FROM: JAMES A. BERGMAN, CITY MANAGER
SUBJECT: INFORMATION REGARDING HILLSIDE CHURCH DEVELOPMENT
CONCEPTUAL PROJECT IN NEIGHBORING GROVER BEACH
DATE: APRIL 9, 2019
SUMMARY OF ACTION:
Receive information regarding the 5Cities Homeless Coalition and Peoples’ Self Help
Housing Hillside Church Development Conceptual Project in neighboring Grover Beach.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
No impact to financial or personnel resources.
RECOMMENDATION:
Receive information regarding the 5Cities Homeless Coalition and Peoples’ Self Help
Housing Hillside Church Development Conceptual Project in neighboring Grover Beach.
BACKGROUND:
The 5Cities Homeless Coalition (5CHC) and Peoples’ Self Help Housing (PSHH) have
developed a conceptual project to compete in the Homeless Emergency Aid Program
(HEAP) grant process. This conceptual project (Homeless Navigation & Housing Project)
is being proposed at the Hillside Church property at 1935 Newport Avenue, Grover
Beach, CA. This property is adjacent to the city limits of the City of Arroyo Grande.
This conceptual project involves a complex interaction of important public policy goals of
the City including:
Protection of Public Health, Safety and Welfare including protection of
neighborhood character and safety;
Adopted Housing Element/General Plan policies;
Participation in regional activities to lessen the impacts of homelessness;
New and time sensitive HEAP funding opportunities;
The land use entitlement process of a neighboring jurisdiction; and
The City’s process and ability to comment as part of the land use entitlement
process of a neighboring jurisdiction.
Item 11.a. - Page 1
CITY COUNCIL
INFORMATION REGARDING HILLSIDE CHURCH DEVELOPMENT CONCEPT PLAN
IN NEIGHBORING GROVER BEACH
APRIL 9, 2019
PAGE 2
The purpose of this staff report is to make these areas known for the benefit of the
community as this concept project is discussed openly in the future by many different
recommending and decision making bodies.
ANALYSIS OF ISSUES:
Conceptual Project Information
The 5CHC and PSHH conceptual project envisions 20 units of permanent supportive
housing (one-bedroom and studio) and up to 44 beds of transitional housing (for up to 24-
months) for homeless youth (age 18-24) – including those with young families or who are
expecting. Youth living in the transitional housing will be selected based on their
commitment to develop and work on a case plan with 5CHC and community partners.
Additionally, 5CHC will provide services to help clients find and retain housing and provide
administrative offices and a warming center.
The conceptual project was discussed at the Grover Beach City Council meeting of
February 19, 2019. Information about the site, the concept project description, the
entitlement review process of the City of Grover Beach and background information of
5CHC and PSHH can be found in Attachment 1 (Item 6 Hillside Church Development
Concept Plan), Attachment 2 Hillside Church Development Concept Plan Frequently
Asked Questions (City of Grover Beach), and Attachment 3 Five Cities Housing
Partnership at 1935 Newport Ave., Grover Beach (Five Cities Homeless Coalition).
Housing Element of the City of Arroyo Grande’s General Plan
The Housing Element of the City’s General Plan gives a comprehensive overview of the
adopted policy of the City. This document is key to understanding the depth and
complexity of housing issues at a City level and a State level. The Housing Element is
available at http://www.arroyogrande.org/DocumentCenter/View/475/Housing-Element-
2016-PDF
Major policy goals related to the Hillside Concept Plan or any similar application include:
Goal A – Housing for All Income Groups within the Community. Provide a continuing
supply of affordable housing to meet the needs of existing and future Arroyo Grande
residents in all income categories.
Goal B – Affordable Housing. Ensure that housing constructed in the City is affordable to
all income levels.
Goal C – Identify Funding for Extremely Low, Very Low, and Low-Income Housing.
Research and identify various additional financial and other resources to provide
extremely low, very low, and low-income housing for current and future residents of the
City.
Item 11.a. - Page 2
CITY COUNCIL
INFORMATION REGARDING HILLSIDE CHURCH DEVELOPMENT CONCEPT PLAN
IN NEIGHBORING GROVER BEACH
APRIL 9, 2019
PAGE 3
Goal D – Encourage Diverse Housing Stock. In order to provide affordable housing,
especially for extremely, very-low and low income households, encourage apartment
construction.
Goal J – Special Needs Housing. Meet the housing needs of special groups of Arroyo
Grande residents, including seniors, persons with disabilities, persons with
developmental disabilities, single parents, large families, and farmworkers.
Goal K– Housing for the Homeless. Reduce or minimize the incidence of homeless in the
community
Goal N – Equal Opportunity and Fair Housing. Assure access to sound, affordable
housing for all persons, regardless of race, religion, age or sex.
Goal O – Public Participation. Ensure participation of all economic segments of the
community in the development of housing policy for Arroyo Grande.
Goal P - Housing Element Consistency. Reduce governmental and infrastructure
constraints to the improvement and development of housing for people of all income
levels.
City of Arroyo Grande’s Role in Regional Homeless Organizations
City staff and/or elected officials participate in regional homeless organizations and
activities based upon adopted Council policies. Two organizations include the San Luis
Obispo County Homeless Services Oversight Committee (HSOC) and the South County
Homeless Task Force.
San Luis Obispo County Homeless Services Oversight Committee
The purpose of the HSOC Committee is to:
Provide a planning and policy development forum, with local jurisdiction and public
and private service providers actively participating;
Compile and monitor data and information regarding the number of homeless
persons and service utilization, working with service providers and local
jurisdictions;
Advise service providers of opportunities and best practices to improve access to
and strengthen homeless services;
Advocate for and provide local jurisdictions with recommendations on public
funding allocations, based upon local needs and prioritized objectives within the
“10-Year Plan to End Homelessness”;
Work with public and private partners, donors and grant makers to establish
financial resources for service implementation, coordination and sustainability;
Item 11.a. - Page 3
CITY COUNCIL
INFORMATION REGARDING HILLSIDE CHURCH DEVELOPMENT CONCEPT PLAN
IN NEIGHBORING GROVER BEACH
APRIL 9, 2019
PAGE 4
Invitation for Applicants to Participate as a Member of the “Homeless Services
Oversight Council”.
The HSOC is composed of 23 elected and appointed members throughout the County.
Mayor Pro Tem Barneich is the appointed City representative to the HSOC.
South County Homeless Task Force
The City has joined with partner nonprofit agencies, the County, and other South County
cities to participate in the South County Homeless Task Force that was started in the
spring of 2017 (Attachment 4, Arroyo Grande Staff Report, February 14, 2017). The
purpose of the task force is to enable better collaboration between local governments and
nonprofit agencies on homeless services and facilities. The City’s representative on the
task force is Mayor Pro Tem Barneich with the City Manager and Police Chief serving as
staff resources.
Participation in both of these groups is consistent with Council direction and Housing
Element Program K.1-1, which states:
The City shall continue to participate in the South San Luis Obispo County
working group cooperating with other cities, the county and other agencies
in the development of programs aimed at providing homeless shelters and
related services.
Responsible agency/department: Community Development/City Manager
Timeframe: Ongoing
Funding: General Fund Expected Outcome: Continued
cooperation in providing homeless shelter and
services
Quantified Objective: n/a
In addition, in 2010, the City Council adopted a Resolution supporting the efforts of the
Five Cities Homeless Coalition in locating a homeless services center within the South
County (Attachment 5).
Homeless Emergency Aid Program (HEAP)
The County has been awarded a one-time only homeless assistance grant from the State
of California authorized by California Senate Bill 850 (SB850) and signed into law by
Governor Brown in June 2018. The Homeless Emergency Aid Program (HEAP) grant
may be utilized to fund a broad variety of homeless services, including rental assistance
and operating support for homeless assistance programs and for capital improvement
projects.
Item 11.a. - Page 4
CITY COUNCIL
INFORMATION REGARDING HILLSIDE CHURCH DEVELOPMENT CONCEPT PLAN
IN NEIGHBORING GROVER BEACH
APRIL 9, 2019
PAGE 5
HEAP is administered by the Homeless Coordinating and Financing Council (HCFC) of
the California Business, Consumer Services and Housing Agency. Guidance was issued
by the HCFC in August 2018. According to the guidance, eligible uses of HEAP funding
include:
a. Homelessness prevention activities;
b. Criminal justice diversion programs for homeless individuals with mental health
needs;
c. Establishing or expanding services meeting the needs of homeless youth or
youth at risk of homelessness; and
d. Emergency aid.
HEAP funding may be used for providing services and shelter operations, as well as
capital projects, including the construction or rehabilitation of shelters, facilities, and
transitional or permanent housing to directly benefit persons experiencing or at-risk of
homelessness. HEAP funding may only be used for capital projects if the County has
declared a shelter crisis and the jurisdiction in which the project is located has also
declared a shelter crisis. The County and all seven incorporated cities have declared a
shelter crisis. Therefore, capital projects may be carried out in both the incorporated and
unincorporated county. The County submitted its HEAP application in December 2018.
On January 15, 2019, the County of San Luis Obispo was awarded $4,837,814.09 in
HEAP funding. Of this funding, at least 5% ($241,890.70) must be used to serve homeless
youth. An additional 5% has been set aside for County administrative costs. All HEAP
funding must be spent no later than June 30, 2021, and at least 50% of HEAP funding
must be contractually obligated no later than January 1, 2020.
5CHC and PSHH’s application was reviewed by an ad hoc subcommittee of the County’s
Homeless Services Oversight Committee (HSOC) and forwarded to the full HSOC on
April 3, 2019 for review and the development of a recommendation of funding to the
County of San Luis Obispo Board of Supervisors. During the HSOC meeting,
representatives from the 5CHC and PSHH removed the warming center from their
conceptual project. The HSOC recommended $2.6 million in funding for the conceptual
project. The County of San Luis Obispo Board of Supervisors will make the final funding
decision on April 23, 2019.
Land Use Entitlement and Project Referrals
The City of Grover Beach has land use authority over the property at 1935 Newport
Avenue. If and when a development application is received by the City of Grover Beach,
Grover Beach will commence staff’s review and environmental analysis followed by public
hearings to consider the project (see City of Grover Beach FAQ- Attachment 2).
The City of Arroyo Grande has no land use authority over the project but general
convention throughout this County is that projects that can have impacts in neighboring
communities are referred for review and comment by staff of the neighboring jurisdiction.
Item 11.a. - Page 5
CITY COUNCIL
INFORMATION REGARDING HILLSIDE CHURCH DEVELOPMENT CONCEPT PLAN
IN NEIGHBORING GROVER BEACH
APRIL 9, 2019
PAGE 6
Up to this point, the Hillside Concept has not been an official project application made to
the City of Grover Beach and, therefore, has not been referred to the City of Arroyo
Grande for comment. When an official project application is submitted, it is anticipated
that the Grover Beach Community Development Department will refer the item to the
City’s Community Development Department (CDD) for review, comment, and/or request
for additional information. This is consistent with Policy LU 11-5.9 of the Arroyo Grande
Land Use Element, which states:
LU 11-5.9 – The City of Arroyo Grande will request that the City of Grover
Beach refer any proposed developments within the area generally east of
14th Street (primarily portions of the East Grover Beach neighborhood
planning area) be referred for review and comment by the City of Arroyo
Grande prior to approval of any further development that may impact the
drainage, traffic, or municipal services and facilities shared by these
adjoining Cities.
The typical procedure of referral review is to have the project evaluated and commented
on by the Arroyo Grande Staff Advisory Committee. This allows the directors and
managers of the Planning, Building, and Engineering Divisions of the Community
Development Department, Public Works Department, Police Department, and Five Cities
Fire Authority to identify items of concern, impacts to the City’s facilities, and development
of conditions of approval to address these impacts. Staff comments of projects with
significant impacts to Arroyo Grande or active community concerns can be reviewed and
considered by the City Council at the discretion of staff or by the request of the City
Council.
ADVANTAGES:
The discussion will provide information about the project review process.
DISADVANTAGES:
No disadvantages identified.
ALTERNATIVES:
The following alternatives are provided for the Council’s consideration:
1. Receive and file the report; or
2. Provide direction to staff.
ENVIRONMENTAL REVIEW:
In accordance with the California Environmental Quality Act (CEQA) and the State CEQA
Guidelines, it has been determined that this item is not subject to CEQA per Section
15061(b)(3) of the Guidelines, regarding the common sense rule that where it can be
seen with certainty that there is no possibility of a significant effect on the environment,
an activity is not subject to CEQA.
Item 11.a. - Page 6
CITY COUNCIL
INFORMATION REGARDING HILLSIDE CHURCH DEVELOPMENT CONCEPT PLAN
IN NEIGHBORING GROVER BEACH
APRIL 9, 2019
PAGE 7
PUBLIC NOTIFICATION AND COMMENTS:
Correspondence regarding the Hillside Church Development Concept Plan received by
the City of Arroyo Grande prior to distribution of the Agenda is included with this report
(Attachment 6). The Agenda was posted in front of City Hall and on the City website in
accordance with Government Code Section 54954.2.
ATTACHMENTS:
1. City of Grover Beach - Item 6 Hillside Church Development Concept Plan
2. Hillside Church Development Concept Plan Frequently Asked Questions (City of
Grover Beach)
3. Five Cities Housing Partnership at 1935 Newport Ave., Grover Beach (Five Cities
Homeless Coalition). Cooperation Agreement
4. Arroyo Grande Staff Report, February 14, 2017
5. City Council Resolution No. 4239, adopted January 12, 2010
6. Correspondence
Item 11.a. - Page 7
Agenda Item No. __6___
CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: February 19, 2019
FROM: Matthew Bronson, City Manager
PREPARED BY: Matthew Bronson, City Manager
Bruce Buckingham, Community Development Director
SUBJECT: Hillside Church Development Concept Plan
RECOMMENDATION
Receive a presentation on a development concept plan for the Hillside Church property and
provide input and direction to staff in working with the prospective applicants.
BACKGROUND
The 2018-19 City Council Goals include the following goals related to homelessness and housing
issues:
Homelessness -- Address homeless challenges by partnering with others (e.g. the Five
Cities Homeless Coalition, other government agencies) to provide enhanced services,
such as a warming station, daytime services and nighttime shelter
Housing Affordability – Collaborate with developers and non-profits on housing projects
that increase the availability of affordable housing in Grover Beach.
In addition, one of the League of California Cities’ four major strategic goals for 2019 addresses
affordable housing and homelessness challenges as follows:
Provide Cities Additional Funding and Tools and Preserve Local Authority to Address Housing
Production, Affordability and Homelessness Challenges.
Provide additional funding and preserve local mitigation fee authority to ensure cities have
sufficient resources to update local plans that reflect community input, improve and
expand local infrastructure, address environmental impacts and deliver services to support
new housing development.
Restore a robust form of tax increment financing to advance transit-oriented development,
build affordable and workforce housing, improve jobs/housing balances, and revitalize
local neighborhoods and communities.
Increase resources to provide emergency shelter, alcohol and drug treatment, housing,
mental health and other wrap-around services and facilities to assist people of all ages,
including seniors, experiencing homelessness.
Provide CEQA streamlining to expedite housing construction.
Ensure the availability of adequate water supplies to support new growth.
Preserve local authority to ensure housing development is consistent with local housing
elements, design requirements and other applicable criteria adopted with community
input.
ATTACHMENT 1
Item 11.a. - Page 8
Staff Report: Hillside Church Development Conceptual Plan Page 2
February 19, 2019
Given California’s massive identified deficit in affordable housing, the Legislature and
Governor should set aside a substantial amount of the state’s budget surplus to support
additional affordable and workforce housing construction and expand skilled workforce
training.
Consistent with these goals, the City has been working with the 5Cities Homeless Coalition
(5CHC), the cities of Arroyo Grande and Pismo Beach, the County of San Luis Obispo, and other
regional partners on ways to address homelessness and housing issues in the region. 5CHC is
currently in escrow to purchase the Hillside Church property located at 1935 Newport Avenue
where they would provide a variety of homeless services including transitional housing, and
permanent supportive housing in collaboration with People’s Self-Help Housing. The potential
purchase is based on securing grants from the Homeless Emergency Aid Program (HEAP)
approved as part of SB 850 in June 2018 for a one-time $500 million block grant program
designed to provide direct assistance to cities, counties and Continuums of Care (CoC) to address
the homelessness crisis throughout California. Formula funding estimates for the local CoC in
San Luis Obispo County total approximately $4.8 million.
For the County and cities to be eligible for HEAP funds, they must declare a homeless shelter
crisis which the Council did in October 2018. The parameters of the HEAP program are
intentionally broad to allow local communities to be creative and craft programs that meet the
specific needs they have identified. HEAP funds can be used for a range of uses including, but
are not limited to, the following:
Homelessness prevention activities.
Criminal justice diversion programs for homeless individuals with mental health needs.
Establishing or expanding services meeting the needs of homeless youth or youth at risk
of homelessness.
Emergency aid.
Lastly, award of HEAP funds under SB 850 is intended to move quickly as the Business,
Consumer Services, and Housing Agency (Agency) was intending to make a first round of awards
by January 31, 2019, and a second round of awards by May 31, 2019. Due to this rapid timeline
to disburse funds, the process to develop a system to review and select programs and services
within the San Luis Obispo County CoC or to individual cities as part of an application to the
Agency has already begun with coordination between the County, cities, and nonprofit homeless
services organizations such as the 5Cities Homeless Coalition. The County also has announced
that a Request for Proposals for HEAP applications will begin on February 15, 2019 with a
submittal deadline of March 15, 2019.
As part of this process, CoCs must demonstrate that a local collaborative effort has been
conducted prior to application submission. A collaborative process may include, but is not limited
to, a public meeting, regional homeless taskforce meeting, and letters of support with signatures
of endorsement, an adopted homeless plan, and an adopted budget that includes HEAP funds.
Participants should include representatives of the local homeless population. Such a process
would build on the extensive collaboration on homeless services already underway within the
South County through the work of the South County Homeless Task Force representing the cities
of Grover Beach, Arroyo Grande, and Pismo Beach along with the County, State Parks, and the
5Cities Homeless Coalition.
Item 11.a. - Page 9
Staff Report: Hillside Church Development Conceptual Plan Page 3
February 19, 2019
Potential Project Site
The site is 3.1 acres and is currently developed with the church buildings totaling about 17,000
square feet. The site slopes upward to the north with the southern half of the site developed and
the northern half undeveloped except for an outdoor amphitheater. The current uses include
church services on Sunday, administrative functions on Monday through Friday including several
non-profit organizations that utilize space. The site also is used as a homeless warming center
on rainy and/or cold nights as authorized by a Temporary Use Permit approved by the City.
The site is currently zoned R1 with R2 zoning to the west that is developed with a Planned Unit
Development, Public Facilities zone to the north that contains three City reservoir tanks and a
9,000 square foot vacant R1 lot owned by the City, and an R1 zone to the south consisting of five
single family lots. East of the site is the City of Arroyo Grande with R1 zoning and existing single
family residences.
Overview of Development Concept Plan
The 5CHC has been actively pursuing a proposed project that could take advantage of the HEAP
grant funds. 5CHC is currently working with Peoples’ Self-Help Housing Corporation (PSHH) on
a collaborative project and have submitted a letter describing the conceptual project (reference
Attachment 1). The concept project would include the following:
Phase 1 would consist of remodeling the existing buildings totaling approximately 17,000
square feet for use by 5CHC for administrative office, case management service center,
winter warming shelter, 11 youth dormitory rooms with up to 44 beds, on-site live-in
manager and other services as described in Attachment 1.
Phase 2 would include the construction of approximate 20 permanent supportive housing
units by PSHH on the undeveloped portion of the site. PSHH would own and manage the
units and include an on-site manager’s unit. This housing would serve people earning at
or below 30% of the median income.
Development Review Process
If 5CHC and PSHH proceed with the submittal of a development application to develop the site
based on the current concept, the following development applications would be required:
A General Plan Land Use Element amendment that would change the land use
designation from low density residential to Neighborhood Serving-Mixed Use allows mixed
use projects with a maximum density of 9 dwelling units per acre.
A Zoning Map amendment to change the zoning from R1 to Neighborhood Commercial
(NC). Since the NC zone allows commercial uses in addition to office, an Overlay Zone
could be placed on the property to limit the types of uses to office and also establish a
maximum area of office use.
A Use Permit to allow a mixed-use project consisting of residential and office uses.
A Parcel Map to subdivide the property into two lots, one owned by 5CHC and the other
owned by PSHH.
The above development applications could be processed concurrently and would require an
environmental document be prepared in compliance with the California Environmental Quality Act
(CEQA). The applications would ultimately need to be approved by the Council for the project to
be approved. As an initial step, 5CHC could submit a Pre-Application that would allow the Council
Item 11.a. - Page 10
Staff Report: Hillside Church Development Conceptual Plan Page 4
February 19, 2019
and community to provide input on a proposed project prior to submittal of a formal development
application.
City Housing Policies
In addition to the previously mentioned goals of the Council and League of California Cities for
homelessness and affordable housing, the City’s Land Use (LU) and Housing (H) Elements
contain several polices that specifically address affordable housing as follows:
LU-2.1 - Adequate supply of residential land. The City shall maintain an adequate supply
of residential land in appropriate land use designations and zoning categories to
accommodate projected household growth, maintain normal vacancy rates, and to provide
for its allocation of affordable housing as prescribed by the San Luis Obispo Council of
Government’s Regional Housing Needs Assessment.
LU-2.2 - Affordable housing. The City shall promote the development of affordable housing
to meet the needs of low- and moderate-income households, consistent with the policies
and programs of the Housing Element.
LU-2.3 - Housing choices. The City shall provide for and encourage a range of housing
choices, including live/work units, multifamily development and Single Room Occupancies
(SRO), intended to meet the special needs of senior citizens, the physically and mentally
challenged, and very low, low and moderate income households.
Policy H-1.1 - The City shall ensure there is an adequate supply of vacant or underutilized
residential land for development or redevelopment at specific densities to meet the
housing objectives for affordable housing. This will include meeting or exceeding the
Regional Housing Needs Allocation. The City shall also explore effective developer
incentives for affordable housing, especially if the development is 100 percent affordable.
Policy H-1.2 - The City shall encourage development of a mix of different housing types
including multi-family and single-family homes, mixed-use developments, second units,
caretaker units, manufactured homes, transitional housing, emergency shelters, and
farmworker and employee housing, in appropriate locations.
Policy H-3.1 - The City shall support new affordable housing development by working with
developers to identify appropriate locations for their projects and facilitate the use of
Community Development Block Grant (CDBG) grants, and City Affordable Housing Fund
money to help offset the cost of affordable housing development.
Policy H-4.1 - Housing for senior or disabled persons shall be encouraged in affordable
housing developments.
Program H-4.5 - The City shall work with housing providers to ensure that special housing
needs and the needs of lower-income households are addressed for seniors, large
families, female-headed households with children, persons with disabilities (including
developmental disabilities), extremely low-income households, and homeless individuals
and families. The City shall seek to meet these special housing needs through a
combination of regulatory incentives, zoning standards, new housing construction
programs, and supportive services programs. The City shall promote market-rate and
affordable housing sites, housing programs, and financial assistance available from the
City, County, State, and federal governments. In addition, as appropriate, the City shall
apply for or support others’ applications for funding under State and federal programs
designated specifically for special needs groups.
Policy H-4.4 - The City shall support the redevelopment of residential or commercial
property for farmworker housing, transitional housing, and other special needs housing, in
appropriate locations.
Item 11.a. - Page 11
Staff Report: Hillside Church Development Conceptual Plan Page 5
February 19, 2019
The City’s current Regional Housing Needs Assessment (RHNA) under the 2014 Housing
Element is 165 residential units but will be increasing to 369 units for the 2020 Housing Element
update as recently approved by the State. The County publishes a monthly table that indicates
the maximum median income limits for the family income groups as defined by the State
(reference Attachment 2). Since 2014, the City has constructed 109 residential units of which only
5 were in the extremely low, very low, low, or moderate income groups. This is far below the
existing 2014 RHNA and recently approved 2019 RHNA as shown below:
Income Group 2014-18 Housing
Element RHNA
Units Constructed
Since 2014
2019-28 Housing
Element RHNA
Extremely Low 20 0 52
Very Low 21 0 38
Low 26 5 57
Moderate 29 0 66
Above Moderate 69 104 156
Total 165 109 369
The State is now requiring cities to produce housing units to meet the 2020 RHNA whereas
previously cities only had to provide the zoning that would allow for the potential construction of
the units. As a built-out community with few vacant multi-family residential zoned properties, the
City has limited opportunities to construct affordable housing projects with more than a just a few
affordable units because there are only a couple of vacant lots greater than 7,500 square feet. As
a result, the proposed concept project with both transitional housing and supportive housing for
persons at or below 30% of median income represents a unique opportunity for the city to provide
affordable housing units.
ALTERNATIVES
The City Council has the following alternatives to consider:
1. Receive a presentation on a development concept plan for the Hillside Church property and
provide input and direction to staff in working with the prospective applicants; or
2. Provide alternative direction to staff.
FISCAL IMPACT
There is no fiscal impact associated with this item.
PUBLIC NOTIFICATION
The agenda was posted in accordance with the Brown Act.
ATTACHMENTS
1. Letter from 5Cities Homeless Coalition & Peoples’ Self -Help Housing
2. San Luis Obispo County Affordable Housing Standards
3. Vicinity Map
Item 11.a. - Page 12
*Working title, subject to change Last printed 2/14/2019 4:22:00 PM Page 1 of 10
5CHC/PSHH HOMELESS NAVIGATION & HOUSING PROJECT *
Summary
The 5Cities Homeless Coalition (5CHC) and Peoples’ Self-Help Housing (PSHH) are collaborating to
provide a much-needed service center, winter warming shelter, transitional housing, and permanent
supportive housing for both adult and youth people experiencing homelessness or at risk of chronic
homelessness at the site currently known as Hillside Church in Grover Beach.
The Hillside Church property is located near exceptional off-site amenities including public transit, a
park, library, grocery store, and pharmacy. Proximity to these amenities does not only enhance the
health and well-being of the people who will be served, but also, will make the project more competitive
when leveraging local investments for federal and state resources.
It is worth noting that the unique opportunity and exceptional timing presented by the project. The
proposed development will maximize one-time Homeless Emergency Aid Program (HEAP) resources for
a service center, warming shelter, transitional housing and permanent supportive housing in one place.
The state requires all HEAP funds to be fully expended by June 2021, making this source difficult to
invest in capital projects that will provide permanent and ongoing projects or services. However, the
timing of the Hillside property sale as well as the availability of HEAP funds will allow 5CHC and PSHH to
provide both short-term and long-term housing and service needs.
Additionally, this proposed development would meet almost all of the highest priority needs identified
by San Luis Obispo County’s homeless outreach efforts. In October 2018, the public, stakeholders, and
individuals experiencing homelessness provided input and recommended for the County to spend HEAP
funds on housing units, navigation centers, and services (including homeless youth services) – all of
which will be included on the Hillside site.
Finally, the precious and limited public dollars in HEAP will yield the best social and financial return on
investment if allocated towards the proposed project. Not only will HEAP funds be used to rehabilitate
and develop a property that will serve individuals experiencing homelessness in both the immediate and
distant future, but will also create an opportunity to leverage local funds and HEAP for millions of
federal, state, and private matching dollars.
Project Concept
The Hillside project will be separated into two phases, which will be divided by a lot split. The Hillside
Church administrative offices will be owned, rehabilitated, and managed by 5CHC and will include that
organization’s main offices, a service center, and warming shelter in winter months. The back parcel,
consisting of the parking lot, sanctuary, and undeveloped back lot will be built into 20 units of
permanent supportive housing that will be owned, developed, and managed by PSHH.
Both 5CHC and PSHH will serve people experiencing homelessness or at-risk of homelessness. Due to
programmatic restrictions, the permanent supportive housing will serve people earning at or below the
30% area median income and will follow HCD definitions of homeless to participate in the No Place Like
Home (NPLH) program.
Attachment 1 Revised
Item 11.a. - Page 13
*Working title, subject to change Last printed 2/14/2019 4:22:00 PM Page 2 of 10
5CHC will utilize the existing structures for a housing navigation center on the site, along with continued
operation of the winter warming center. Housing navigation services, as provided at 5CHC’s current
location, will continue to provide case management and mentoring for those who are homeless or at-
risk of homelessness. Services include: information, referral, coordinated entry screening, housing
assistance for rapid re-housing and eviction prevention (including veteran services), limited one-time
assistance for improved self-sufficiency (transportation, vehicle repair, utility assistance), benefits
advocacy, and jail to community and case management services for homeless patients with Arroyo
Grande Community Hospital.
5CHC also seeks to expand its services to homeless and foster youth by creating transitional housing and
a resource navigation center specifically targeted to this age group. The facility will be re-modeled to
include 11 youth dorm rooms, with an on-site live-in manager. We seek to provide a continuum of
wraparound care to help young people get off the streets for good, including: outreach/engagement
services, health/wellness, housing, education and employment with the ultimate goal of helping young
people develop the knowledge and skills needed for independent adulthood.
Additionally, PSHH’s 20-units of permanent supportive housing will provide opportunities for 5CHC’s
clients to find an affordable place to live with wraparound supportive services. While PSHH is required
to abide by strict fair housing laws that dictate the resident selection process, 5CHC will be able to refer
clients for residence in permanent supportive housing at PSHH’s project.
Partner Experience
Both 5CHC and PSHH have extensive experience providing affordable housing and supportive services
for individuals who are homeless, formerly homeless, or at-risk of homelessness.
5Cities Homeless Coalition, celebrating its 10th year, is transforming lives by helping the most vulnerable
in our community maintain dignity while working toward a new home (or retaining their home). 5CHC’s
work goes beyond the immediate, to ensure that clients have the plan, skill sets, and support needed to
be successful and self-sufficient. By offering case management, connection to other supportive services,
and direct financial assistance 5CHC families to obtain housing, along with preventing eviction for many
more. More than 93% of those 5CHC has helped to house (or prevented from eviction) remain housed
more than one-year after exiting 5CHC’s program.
Through collaboration and leadership, 5CHC is building an engaged community that fully understands
the complexities of homelessness and actively shares the responsibility of creating and implementing
solutions to reduce it.
For the last 50 years, PSHH has built affordable homes and provided site-based services for low-income
people in San Luis Obispo, Santa Barbara, and Ventura Counties. More specifically, PSHH has renovated
two historic buildings for conversion to permanent supportive housing, namely, the 28-unit Victoria
Hotel in Santa Barbara and the 42-unit El Patio Hotel in Ventura. In total, PSHH serves over 450 formerly
homeless individuals in 52 multifamily properties throughout the central coast. PSHH’s development,
property management, and supportive service teams are well-versed in the unique needs of the people
experiencing homelessness and will pull upon a depth of expertise to serve this population.
Item 11.a. - Page 14
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Land Use and Zoning
Existing Neighborhood Layout
North Public Facility, Water Tanks & Single Family Residential
East Single Family Residential
South Single Family Residential
West Medium Density Residential
Existing Property Information
Address 1935 Newport Avenue
APN 060-581-033
Owner Bethel Baptist Church GC
Census Tract 0120.00
Land Use Residential Neighborhood
Zoning R1
Lot Size 3.11 Acres/135,520 SF
Max Density 9 u/ac
Proposed Property Information
Address 1935 Newport Avenue
APN 060-581-033
Owners 5CHC to own existing buildings, PSHH to own future apartments
Census Tract 0120.00
Land Use TBD
Zoning TBD
Lot Size 3.31 Acres/14,450 SF (includes city-donated parcel)
Max Density TBD
In order to use the site efficiently and achieve the desired outcomes, a zone change and lot split will be
required. The lot split create clear and distinct ownership responsibilities between 5CHC and PSHH, and
also allow PSHH to pursue alternative financing for the proposed development. If the lot split does not
occur, the Hillside Church administrative offices would complicate both the legal and financial dealings
of the project. It is our intent to process the zone change and lot split in tandem.
As part of the project we are seeking a land donation from the City of Grover Beach, for a 8,930 SF
parcel adjacent to the northwest corner of the Hillside property, with an estimated value of $44,650. As
a “public source” the value of this land could be considered as seed funding to be matched by other
federal and state affordable housing sources, and therefore, is important for the financial feasibility of
the proposed development. An aerial showing this parcel is featured on page 6.
Design
Each entity is currently involved in the preliminary design phases of the respective project. 5CHC has
engaged a thorough property inspection of the structures and estimates are currently being developed
Item 11.a. - Page 15
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for necessary tenant improvements. Diagrams of 5CHC’s proposed services and building remodel follow
on page 7.
PSHH is a vertically integrated organization with development, construction, service and property
management experience, and will use the development expertise of its staff to complete the necessary
work with the civil engineer, planning consultant, architect and design development supervisors, as
project approval moves forward.
Unit Breakdown
Unit Count
Unit Type Number of Units Housing Type Square Footage
Youth Dorms 11 (Up To 44 beds) Transitional 1500 sf
Youth Manager 1 Permanent 240 sf
Studio 10 Permanent 450 sf
1-bedroom 9 Permanent 500 sf
Manager’s Unit 1 Permanent 750 sf
TOTAL 65
5CHC Projected Schedule
Date Milestone
February/March 2019 Submit HEAP Application
April 2019 HEAP Award Announcement
June 2019 Close Escrow
July 2019 Finalize Tenant Improvement Plan
August 2019 Apply for Permit for Tenant Improvements
April 2020 Initiate On-Site Services
PSHH Projected Schedule
Date Milestone
February/March 2019 Submit HEAP Application
March 2019 Apply for Zone Change/Lot Split
June 2019 HEAP Award Announcement
November 2019 Apply for Development Plan
January 2020 Submit NPLH Application
March 2020 Submit 4% Tax Credit Application
September 2020 Commencement of Construction
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5CHC Building Schematic
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Item 11.a. - Page 22
Affordable Housing Standards
SAN LUIS OBISPO COUNTY DEPARTMENT OF PLANNING AND BUILDING
County Government Center San Luis Obispo, California 93408 Telephone (805) 781-5600
This bulletin summarizes the county's affordable housing standards including maximum household incomes, home
purchase prices and rents. It applies to new projects in both the Coastal and Inland portions of the County.
Income limits:
The state defines family income groups as follows: "Extremely Low Income" is defined by Health and
Safety Code Section 50106 as 30% of county median income; "Very Low Income" is defined by Health and
Safety Code Section 50105 as 50% of county median income; "Lower Income" is defined by Health and
Safety Code Section 50079.5 as 80% of county median income; "Moderate Income" is defined by Health
and Safety Code Secton 50093 as 120% of county median income; "Workforce" is defined by Title 22 of
the County Code as 160% of county median income. The following income limits are effective as of April 26, 2018.
Persons in
Household
Extremely Low
Income
Very Low
Income
Low Income Median Income Moderate
Income
Workforce
1 $17,500 $29,150 $46,600 $58,250 $69,900 $93,200
2 $20,000 $33,300 $53,250 $66,550 $79,900 $106,480
3 $22,500 $37,450 $59,900 $74,900 $89,850 $119,840
4 $25,100 $41,600 $66,550 $83,200 $99,850 $133,120
5 $29,420 $44,950 $71,900 $89,850 $107,850 $143,760
6 $33,740 $48,300 $77,200 $96,500 $115,850 $154,400
7 $38,060 $51,600 $82,550 $103,150 $123,800 $165,040
8 $42,380 $54,950 $87,850 $109,800 $131,800 $175,680
Sample maximum sales prices: (see footnotes)
Unit Size
(Bedrooms)
Extremely Low
Income
Very Low
Income
Low Income Moderate
Income
Workforce
Studio $43,000 $87,000 $130,000 $257,000 $359,000
1 $52,000 $100,000 $152,000 $297,000 $413,000
2 $62,000 $118,000 $174,000 $337,000 $468,000
3 $71,000 $133,000 $196,000 $377,000 $522,000
4 $78,000 $146,000 $213,000 $409,000 $566,000
Note 1: Homeowner association due (HOA) assumption per month is 150.00
Note 2: Mortgage financing assumed at a fixed rate for 30 years (per HSH Associates) is 4.41%
Note 3: Prices shown are preliminary estimates and may be revised. Round to the nearest 1000th.
Note 4: Actual sales price limits will be determined by the County on a case-by-case basis.
Updated: 2/8/2019
Attachment 2
Item 11.a. - Page 23
Maximum rents: (see footnotes)
Unit Size
(Bedrooms)
Extremely Low
Income
Very Low
Income
Low Income Moderate
Income
Workforce
Studio $437 $728 $874 $1,602 $2,184
1 $499 $832 $998 $1,830 $2,496
2 $562 $936 $1,124 $2,060 $2,809
3 $624 $1,040 $1,248 $2,288 $3,120
4 $674 $1,123 $1,348 $2,471 $3,369
Note 1: These rent limits include allowances for utilities as determined by the Housing Authority
of the City of San Luis Obipo (805-543-4478).
Note 2: Rent limits are updated when the State issues its annual update to median incomes,
generally in April of each year.
Updated: 2/8/2019 Item 11.a. - Page 24
Attachment 3 – Vicinity Map
Item 11.a. - Page 25
Hillside Church Development Concept Plan
Frequently Asked Questions
Updated March 29, 2019
1.Has the City of Grover Beach already approved this concept?
No, the City has taken no action on this concept and will not take any formal action until an
actual development application is submitted to the City for processing. It is important to note
that this concept is not being led by the City of Grover Beach but rather by the 5Cities
Homeless Coalition (5CHC) and People’s Self-Help Housing (PSHH), two nonprofit agencies
serving the South County and Central Coast. The concept was first presented to the Grover
Beach City Council by 5CHC and PSHH on February 19, 2019 for initial questions and
comments from the City Council and to begin the process of soliciting feedback from the
community. The City Council expressed support for the general concept as it is consistent
with the Council Goals of addressing homelessness and housing affordability and would be a
unique opportunity to address these issues in a regional and collaborative manner.
2.What is the concept and who is behind it?
This concept is being advanced through a partnership between 5CHC and PSHH. This concept
would consider reuse of the existing Hillside Church property at 1935 Newport Avenue in
Grover Beach for affordable housing, transitional housing, administrative offices, and related
services. The concept builds on the work of the 5CHC in looking at sites in South County for
housing and related services over many years along with the City’s interests in partnering
with 5CHC and PSHH. Other sites considered by 5CHC with significant due diligence for
housing and other services were in Arroyo Grande, Pismo Beach, and Oceano along with
other locations in Grover Beach. Even with this site at Hillside Church, the City continues to
be open to other sites that will serve the homeless population as this concept by itself will
not solve homelessness in the South County.
3.Who are the 5Cities Homeless Coalition and People’s Self-Help Housing?
5CHC (https://5chc.org/) provides services to vulnerable residents in our community to help
gain skills and support needed to be successful and self-sufficient through case management,
connection to other supportive services, and direct financial assistance. PSHH
(https://www.pshhc.org/) builds affordable homes and site-based services on the Central
Coast and serves over 450 formerly homeless individuals in 52 properties including locations
in Arroyo Grande, Pismo Beach, and Nipomo. PSHH does not currently operate a facility in
Grover Beach.
4.What’s involved in this concept?
The concept is intended to be a phased project with Phase 1 consisting of remodeling the
existing church buildings for use as the 5CHC administrative offices, case management
services, winter warming shelter, 11 dormitory rooms with up to 44 beds for youth ages 18 -
24 to stay for up to two years, and an onsite manager. Phase 2 would include construction of
approximately 20 permanent supportive housing units financed, owned, and managed by
PSHH. This housing is intended to serve people at or below 30% of the area median income.
The phases and the uses and numbers within the phases are preliminary and may change as
this concept unfolds as a potential development application.
ATTACHMENT 2
Item 11.a. - Page 26
CITY OF GROVER BEACH
HILLSIDE CHURCH DEVELOPMENT CONCEPT PLAN FAQ – UPDATED MARCH 29, 2019
5. Where are the homeless individuals coming from?
Homelessness is not just a Grover Beach issue as it is a regional issue impacting all of our
communities. 5CHC reports that 80% of homeless individuals in the South County are from
South County communities with Arroyo Grande the most prevalent location of homeless in
the South County (94 individuals in the County’s 2017 homeless census compared with 60 in
Grover Beach). Of the clients that 5CHC served in 2018, the most prevalent location of clients
was Arroyo Grande (19%) followed by Grover Beach (17%), Oceano (13%), and Nipomo (11%).
The Hillside Church concept would be intended to provide affordable housing and services to
individuals in need from throughout the South County, not just in Grover Beach.
6. Won’t this be a homeless shelter like 40 Prado in San Luis Obispo?
No, this concept is not like 40 Prado that provides a wide scope of shelter and day -use
activities for homeless clients. As currently envisioned, this concept is focused on providing
housing on-site and supportive services to help clients find housing or retain their housing in
the community. The proposal currently envisions 20 units of permanent supportive housing
and up to 44 beds of transitional housing (for up to 24 -months); along with services to help
clients find and retain housing; and administrative offices for the 5CHC. The concept includes
a sheltering component to continue a winter warming center that has been used temporarily
at the site for approximately 20-40 nights per year for the past two years with approximately
20 attendees per night. However, this concept primarily involves providing much-needed
housing in the South County area.
7. What is the HEAP homelessness grant and how is it involved in this concept?
The HEAP (Homeless Emergency Aid Program) grant was created by State legislation passed
in 2018 that provided a one-time allocation of $500 million to local governments to address
homelessness. The County of San Luis Obispo received $4.8 million in grant funding with the
County Board of Supervisors being the deciding body on how to allocate the funds. The 5CHC
and PSHH are applying to the County to receive grant funds for the purchase and renovation
of the Hillside Church property. Grant applications were due to the County by March 19 with
funding anticipated to be decided by the Board of Supervisors soon thereafter. The City has
submitted a letter to the County in support of this a pplication along with the cities of Arroyo
Grande and Pismo Beach given the regional nature of this concept.
8. What would be involved in the City’s review of this project?
There are many steps involved in reviewing a development project. Once a developme nt
application is submitted, City staff reviews the application to determine conformance with
the development code and zoning requirements. Following staff review and environmental
analysis, the Planning Commission would conduct a public hearing to consider the project and
then the City Council would conduct a public hearing to consider the project and related
actions. These steps can take between 6-12 months depending on the number of issues to be
addressed in the development process.
9. How is this concept consistent with the City’s General Plan Land Use and Housing Elements?
The City’s Land Use and Housing Elements promote a mix of housing uses including affordable
housing. Land Use Element Goal LU-2 calls for designation of adequate land in a range of
residential densities to address housing needs of all income groups and Policy 2.2 and 2.3 call
Item 11.a. - Page 27
CITY OF GROVER BEACH
HILLSIDE CHURCH DEVELOPMENT CONCEPT PLAN FAQ – UPDATED MARCH 29, 2019
out the importance of affordable housing and housing choices for very low and low income
households. Housing Element Policy 1.2 encourages development of different housing types
including transitional housing and emergency shelters and Program 1.3 speaks to working
with other agencies and non-profits that meet the needs of extremely low-income
households. In addition, there will be new State requirements related to production of
housing units that will be part of the City’s next Housing Element developed in 2020. The City
believes this development concept is consistent with the General Plan Element policies and
programs referenced above though the current land use designation of Low Density
Residential would need to be revised to accommodate this concept.
10. What authority does the City have to amend its General Plan and zoning designations?
The General Plan guides the overall development of the city. It provides an overarching
structure for land use decisions, but the General Plan and its underlying zoning areas can also
be modified based on development and community needs and the fulfillment of State law
requirements. It is not uncommon for development projects to involve a zoning change to
accommodate the use. The Hillside project concept includes permanent housing units,
transitional housing, and space for housing-related services and offices. If this project moved
forward, it would require rezoning this property to a zoning designation that allows for all of
the above enumerated uses or what is considered a mixed-use project. Currently the property
is zoned “R1” which only allows for single-family housing while the adjacent area within the
city is predominantly zoned “R2” which allows for multi-family residential dwellings. Rezoning
decisions require approval by the City Council.
11. Why is this concept being considered for Hillside Church when the City has an “Emergency
Shelter Overlay Zone” elsewhere in the city?
The “Emergency Shelter Overlay Zone” was established in the City’s Development Code in
2012 (five years before the City established the commercial cannabis overlay zone in
industrial zoned areas) in response to State legislation (SB 2) that required local jurisdictions
to identify areas where emergency shelters would be allowed by right without requiring a
discretionary permit. Emergency shelters are defined as a facility for the temporary
overnighting of indigents operated by a public or non-profit agency which could include
shelter space needed after a natural disaster as well as a temporary warming center. The City
established such a zone in a portion of the industrial area bounded by South 4th Street, Farroll
Road, Griffin Street, and Highland Way. The 5CHC has previously looked for a shelter facility
in this area but did not find a property available for this use. The temporary winter warming
center run by 5CHC at Hillside Church in 2018 and 2019 was issued a Temporary Use Permit
with the support and approval of the church as the property owner given the loss of the
previous warming center location in Arroyo Grande and inability of 5CHC to find ano ther
warming center location.
12. How is the City communicating with nearby residents?
Understanding the community’s need to understand this concept, the Council suggested that
the applicants reach out to the community and provide information about this concept as it
is the applicants’ responsibility to engage the public about this concept prior to the City’s
formal consideration of a development application. On March 6, 2019, the applicants hosted
an open house to answer questions and to provide information on the concept and about
Item 11.a. - Page 28
CITY OF GROVER BEACH
HILLSIDE CHURCH DEVELOPMENT CONCEPT PLAN FAQ – UPDATED MARCH 29, 2019
5CHC and PSHH. The City’s understanding is that the applicants will continue to communicate
with residents both in Grover Beach and Arroyo Grande about the concept to address
neighborhood interests and concerns. The City will be involved in this outreach and also take
steps to inform the community such as this FAQ document and other means
13. How many calls for service have there been at or around the church since the warming
center started?
Calls for service to the Grover Beach Police Department have gone down since t he 5CHC
warming center began operating in November 2017. In 2016 before the center was operating,
there were 33 police calls for service at the property. In 2017, there were 21 police calls with
one call for service during the time when the warming center was open. In 2018, there were
seven calls for service and three calls during the time when the warming center was open.
This reduction in calls is similar to data from the Arroyo Grande Police Department which has
reported only eight calls for service in providing assistance at Hillside Church since 2015.
14. What steps will be taken to minimize safety risks if this project goes in?
The 5CHC and PSHH are committed to providing appropriate safety measures at this facility
through a client screening process. These measures will be reviewed as part of any potential
application submitted on the project. If a project is submitted, several public hearings will
provide the community an opportunity to weigh in on the concept. The 5CHC and PSHH have
a track record of operating safe facilities for services and housing throughout the region
including facilities in Arroyo Grande, Pismo Beach, and Nipomo.
Item 11.a. - Page 29
1935 Newport Ave., GB FAQ, 4/1/2019
Five Cities Housing Partnership At 1935 Newport Ave., Grover Beach
What Is The Proposal And Why Is It Important?
This proposal is through a partnership with People’s Self-Help Housing and 5Cities Homeless
Coalition for administrative offices, homeless services, transitional housing and permanent
housing at the existing Hillside Church property at 1935 Newport Avenue in Grover Beach. This
proposal will provide housing on-site and supportive services to help clients find housing or retain housing in the
community. The concept includes a winter warming center at the location that opens on cold and rainy nights in the
winter. For the past two seasons it has been operated in this location and been open between 20 and 40 nights,
with approximately 20-25 guests per night.
Here is a link to the staff report of the proposal concept that was presented to the Grover Beach City Council. No
application has yet been made to the City. We are working to understand community concerns so that they may be
considered in the final project proposal design.
The proposal currently envisions 20 units of permanent supportive housing (one-bedroom and studio) and up to 44
beds of transitional housing (for up to 24-months) for homeless youth (age 18-24) – including those with young
families or who are expecting. Youth living in the transitional housing be selected based on their commitment to
develop and work on a case plan with 5CHC and community partners. Additionally 5CHC will provide services to
help clients find and retain housing; and administrative offices.
How Was This Site Selected?
This site was selected, after due diligence in considering multiple locations for three key reasons:
Willing Owner – The owners of the property had made the decision to put the property up for sale. In discussions
with them they agreed to work with us on an extended time line for purchase, dependent on funding.
Potential Funding – The State of California has made funding available to the County for the first-time for which the
activities proposed would be eligible.
Need for Services and Housing - No permanent, secure location exists at this time in South County to provide
services to families, seniors, adults, children and youth who are homeless or at risk of homelessness. That means
nearly one-third of SLO County’s homeless population in the Five Cities area are at risk of losing services to help
find and retain housing.
There is a housing shortage, particularly in affordable housing for low-income families, throughout San Luis Obispo
County and especially in the Five Cities area. This project addresses the needs of local government to supply
housing available to low-income people.
Transitional housing is needed to help house and stabilize an under-served and growing population in our
community: homeless young people ages 16 to 24, some of whom are expecting a child or are already parents.
Homelessness among those in this age group is rapidly increasing and one of the most alarming challenges that
communities will face.
What Is The Potential Funding For This Project – HEAP, And How Will It Be Decided?
The State of California established the Homeless Emergency Aid Program to provide one-time grant funds to
address their immediate homelessness challenges. San Luis Obispo County is in the midst of its process for
determining how to spend its share of the funding, $4,154,032. A key component for use of the funds was a
demonstration of collaboration amongst various community stakeholders, including local government. For more
information: RFP for HEAP and CESH.
ATTACHMENT 3
Item 11.a. - Page 30
1935 Newport Ave., GB FAQ, 4/1/2019
The County Board of Supervisors has the decision-making authority to allocate these funds, based on
recommendations from the Homeless Services Oversight Council. The Board is currently slated to consider the
recommendations at its meeting on April 23, 2019.
Should this proposal receive an award for funding from the County, a series of proposal development activities will
begin, including an application to the City of Grover Beach. This application process will include multiple public
hearings and notices to neighbors in both the City of Grover Beach and the City of Arroyo Grande. Here is
information from the City of Grover Beach regarding its process.
Were Other Locations Considered For This Proposal?
Three locations that were for sale were considered for this proposal. Each location would have required a zoning
change for the proposed activities. Ultimately the Hillside Church location was selected because it offered the
maximum potential to create new housing units and to accommodate the existing services and administrative space
needs of 5Cities Homeless Coalition.
• 330 S. Halcyon, AG
• Hillside Church - 1935 Newport Ave., GB
• 5Cities Medical (4th & El Camino) PB
5Cities Homeless Coalition has been seeking to purchase a property since it was formed in 2009, and has
considered multiple locations in the Five Cities area. See details at bottom.
What Is The Zoning Of The Neighborhood Surrounding This Site?
The neighborhood is mostly R-2 with Public Facilities to the north. The proposed density with a zone change would
be the same as the R-2 density that abuts the site on the Grover Beach side of the property. Additionally, as a
church, this site is high density by its very nature with much in-out traffic.
By offering permanent housing and wraparound services this project will actually increase public safety by providing
the housing and services that will help homeless people get on the path to recovery. By the very nature of people
coming to this site, they show that they want help and the full services provided by the center would allow us to
make strides forward in achieving that.
Homeless services in other neighborhoods: An example of other homeless services already being successfully
provided in a neighborhood near a school would be the El Camino Homeless Organization, in Atascadero.
What Does 5CHC Do?
5CHC efforts focus on helping the most vulnerable in our community maintain dignity while working toward a new
home (or retaining their home). Our work goes beyond the immediate, to ensure that clients have the plan, skill
sets, and support needed to be successful and self-sufficient. We are proud to share that more than 93% of those
we have helped to house (or prevented from eviction) remain housed more than one year after leaving our program.
All programs are voluntary, clients must want 5CHC services. Services are provided through a case plan that the
client and case manager create and work together.
I heard something about a “Jail to Community” program?
This is an in-reach program into the County Jail, performed by 5CHC and multiple other community agencies.
Inmates who are soon to be released to homelessness are provided an opportunity to meet with community service
agencies, including 5CHC. The 5CHC case manager assists inmates who have requested to work with us (and are
homeless and planning to return to South County) with developing a plan for self-sufficiency including family
reunification and connection to services such as residential treatment for substance abuse. Due to the lack of
treatment facilities in San Luis Obispo County, this means currently finding treatment and providing transportation to
residential facilities out of county. For further information on this program contact Alison Ordille, Program Manager
-Jail Programs Unit, SLO County Sheriff’s Office, 805-788-2792, aordille@co.slo.ca.us.
Item 11.a. - Page 31
1935 Newport Ave., GB FAQ, 4/1/2019
Will You Provide Services To Registered Sex Offenders At This Site?
No.
Prior Locations Considered By 5CHC:
In 2010 5Cities Homeless Coalition received a funding opportunity to secure a location to provide homeless
services in South County, through a bequest made to the Community Foundation of San Luis Obispo County. At
that time 5CHC was seeking a site for a South County Services Center to provide daytime services. The effort
included such partners as South County People’s Kitchen, Community Health Centers of the Central Coast,
Foodbank of San Luis Obispo County. The project did not include a housing component, and the services these
partners sought to provide are not included in the current proposal.
Areas where properties were considered by 5CHC over the last 10 years include:
1. Five Cities Drive, Pismo Beach.
2. Price Canyon Road, Pismo Beach
3. 4th Street, Pismo Beach
4. Traffic Way, Arroyo Grande
5. Farroll Road, Grover Beach & Arroyo Grande
6. Highway 1, Grover Beach
7. South 13th Street, Grover Beach
8. El Camino Real, Grover Beach
9. Trouville, Grover Beach
10. Huston, Grover Beach
11. Huber, Grover Beach
12. Pike, Grover Beach and Oceano
13. Nipomo, Oceano
Those Who Are Homeless Are Our Neighbors :
Of the clients seen by 5Cities Homeless Coalition in 2018, this is where they reported living at the time that they
became homeless.
In 2010 5Cities Homeless Coalition received a
funding opportunity to secure a location to
provide homeless services
Item 11.a. - Page 32
MEMORANDUM
TO: CITY COUNCIL
FROM: ROBERT MCFALL, INTERIM CITY MANAGER
SUBJECT: CONSIDERATION OF: 1) PARTICIPATION IN THE FORMATION OF THE
SOUTH COUNTY HOMELESS TASK FORCE; AND 2) APPOINTMENT OF A
COUNCIL MEMBER TO SERVE AS A REPRESENTATIVE ON THE TASK
FORCE
DATE:FEBRUARY 14, 2017
RECOMMENDATION:
It is recommended that the City Council consider: 1) participation in the formation of the South
County Homeless Task Force; and 2) appointment of a Council Member to serve as a
representative on the task force.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
Aside from occasional participation on the proposed task force, there are limited financial or
personnel impacts resulting from the recommended action.
BACKGROUND:
Regional homeless issues are currently addressed by two (2) primary agencies: the Five Cities
Homeless Coalition (5CHC) and the Homeless Services Oversight Council of San Luis Obispo
County (HSOC). The mission of HSOC is “To ensure that everyone has access to appropriate
and affordable housing and to services they need to sustain it,” and the mission of the FCHC is
“Working to strengthen the south San Luis Obispo County community by mobilizing resources,
hope, and support for the homeless and those facing poverty.” HSOC is a department within
the County of San Luis Obispo and is a primary funding source for local programming
addressing the issues of homelessness. 5CHC is a coalition of people and organizations within
the Five Cities area working to address the issues of homelessness in a variety of ways with the
objective of individuals regaining self-sufficiency. Between these two agencies, substantial and
successful programs to support the needs of our homeless populations are provided. Council
Member Barneich currently serves as representative to HSOC, and the Mayor, Council Member
Barneich and other Council Members support 5CHC programs.
At a previous meeting, Council requested a report that would allow consideration of a task force
to further discussion on needs of the homeless population.
ANALYSIS OF ISSUES:
Recently, discussions have taken place among representatives in the Five Cities area about
how to more effectively coordinate specific issues related to the homeless population of a
localized nature, and effectively create a dialogue and problem solving structure to address
specific concerns. Two examples currently being discussed include the siting of the warming
Item 12.b. - Page 1
ATTACHMENT 4
Item 11.a. - Page 33
CONSIDERATION OF PARTICIPATION IN THE FORMATION OF THE SOUTH COUNTY
HOMELESS TASK FORCE, AND DESIGNATION OF A COUNCIL MEMBER TO SERVE AS A
REPRESENTATIVE ON THE TASK FORCE
FEBRUARY 14, 2017
PAGE 2
shelter, and where to host the next Mobile Assistance and Services Addressing Homelessness
(MASH) outreach event, that provides free services to the homeless, among other concerns.
These discussions have led to the suggestion to create the South County Homeless Task Force
(SoCoHTF). It is proposed that SoCoHTF would meet perhaps twice per year, and further only
on an as-needed basis to address specific concerns or needs that arise. The proposed task
force is not intended in any manner to replace or supplant the services currently provided
through HSOC and 5CHS, but to create a structure to make dialogue among local officials on
specific services more convenient. Also, it is not intended that SoCoHTF directly provide
homeless services, but to coordinate and develop recommendations to some aspects of the
services currently provided or available. It is further being proposed that the task force be
composed of representatives from Arroyo Grande, Grover Beach, Pismo Beach and the Oceano
Community Services District, as well as from State Parks associated with the State Parks
coastal areas. The representatives would include a City Council representative, along with the
City Manager/General Manager and Police Chief of each agency.
Each of these agencies is currently considering participation, although feedback has been
positive thus far. Grover Beach has already expressed their commitment to the effort.
ALTERNATIVES:
The following alternatives are provided for the Council’s consideration:
1. Consider participating in the formation of the South County Homeless Task Force, and
appoint a Council representative to the task force; or
2. Provide other direction to staff;
ADVANTAGES:
The proposed task force would allow for the timely and effective discussion and development of
recommendations regarding services to the south county homeless population.
DISADVANTAGES:
None identified.
ENVIRONMENTAL REVIEW:
No environmental review is required for this item.
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted at City Hall and on the City’s website in accordance with Government
Code Section 54954.2.
Item 12.b. - Page 2Item 11.a. - Page 34
RESOLUTION NO. 4239
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ARROYO GRANDE SUPPORTING THE EFFORTS OF THE
FIVE CITIES HOMELESS COALITION IN LOCATING A
HOMELESS SERVICES CENTER WITHIN THE SOUTH
COUNTY
WHEREAS, the City of Arroyo Grande participated in a public forum along with
representatives from the Cities of Grover Beach, Pismo Beach, the County Board of
Supervisors, and the Oceano Community Services District to discuss services for the
homeless population in the South County; and
WHEREAS, at the end of the forum, there was a general consensus amongst those in
attendance that the location of a service facility located in the South County would best
serve the needs of the local homeless population; and
WHEREAS, the City of Arroyo Grande has been approached by a member of the Five
Cities Homeless Coalition requesting the City Council support the location of such a
facility within the immediate South County area and has also requested that the City
support its efforts to secure a South County location; and
WHEREAS, the City of Arroyo Grande wishes to express its support, in partnership with
the surrounding jurisdictions, that a South County facility would enhance the level of
services provided to the homeless population.
NOW ,THEREFORE, BE IT RESOLVED, that the City Council of the City of Arroyo
Grande does hereby support the location of a facility to better serve the needs of the
homeless population and further supports the location of the facility within the South
County.
On motion of Council Member Fellows, seconded by Council Member Guthrie, and on the
following roll call vote, to wit:
AYES:Council Members Fellows, Guthrie, and Mayor Ferrara
NOES:None
ABSENT: Council Members Costello, and Arnold
the foregoing Resolution was passed and adopted this 12"' day of January 2010.
ATTACHMENT 5
Item 11.a. - Page 35
RESOLUTION NO. `1
PAGE 2
TONY FER MAYO
ATTEST:
r ,,(
i C N¢-
KELLY T CITY CLERK
APPROVED AS TO CONTENT:
S E N ADAMS, CITY MANAGER
APPROVED AS TO FORM:
Q
TI OTHY J.MEL, CITY ATTORNEY
Item 11.a. - Page 36
OFFICIAL CERTIFICATION
I, KELLY WETMORE, City Clerk of the City of Arroyo Grande, County of San Luis
Obispo, State of California, do hereby certify under penalty of perjury, that the attached
Resolution No. 4239 is a true, full, and correct copy of said Resolution passed and
adopted at a Regular meeting of the City Council of the City of Arroyo Grande on the
12 day of January 2010.
WITNESS my hand and the Seal of the City of Arroyo Grande affixed this 13 day of
January 2010.
f/
KELLY TM/- - E, CITY CLERK
Item 11.a. - Page 37
1
From: Deanna T
Sent: Wednesday, April 3, 2019 8:10 AM
To: jlee@groverbeach.org; mshah@groverbeach.org; dlance@groverbeach.org; bnicolls@groverbeach.org;
dpeterson@groverbeach.org; Caren Ray Russom; Kristen Barneich; Jimmy Paulding; Keith Storton; Lan George
Subject: Please reconsider the Hillside Church homeless project
Hello City leaders,
My name is Deanna, and I am resident of Newport Ave in Grover Beach. I live just across Oak Park, two blocks
or so from the proposed Hillside Church conversion to homeless shelter. As a 5‐year resident and homeowner
in Grover Beach, I have been so pleased to see our area up on the upswing lately ‐ with streets being repaved,
nice new homes being built, and new vibrant businesses moving in. It has been exciting to witness!
However, I am very afraid of the consequences of the Hillside homeless shelter. I worry that not only it will be
a huge step backwards in the progress of our recent community improvements, but I also fear for my and my
neighbors safety. I have already had the very unpleasant (and scary!) experience of finding a high/homeless
man confused and passed out in my yard in the wee hours of the morning, and had to call the cops.
Thankfully, he was pretty out of it and didn't physically threaten myself and my family, but it still shook us to
the core. I can't help but worry what is to come.. and I know it will with this project.
My husband sometimes works late nights, as late as until 2 am. I am already extremely nervous about lurkers
or break‐ins on those nights, and do not sleep well at all. Every sound outside makes me tense, and start
considering all my escape or emergency options. We cannot afford to outfit our home with a security
system. If this project goes through, my husband will either need to find a different job to stay home with
me at night (which is absurd, and not easy to do!), or we will likely have to sell our house and move.
I understand the need for homeless housing. I have seen it first hand, as I am from Santa Cruz where the
homeless are rampant. However, in Santa Cruz, city planners intelligently and compassionately chose to
locate homeless shelters in more industrial and business areas of the city, away from residences and
schools. Therefore, the locals simply know to not go downtown or to those areas at night. There are vastly
increased disturbances, altercations, stabbings, rapes, and even murders around those facilities. It is not
safe.
I urge you to please deny this project and do not re‐zone that area. The negative consequences to our
community will greatly outweigh the benefits. The shelter should be located in a different place.
Thank you very much for considering my concerns.
Deanna Talerico
ATTACHMENT 6
Item 11.a. - Page 38
Item 11.a. - Page 39
1
From: Matt St. Laurent
Sent: Tuesday, April 2, 2019 12:47 PM
To: Caren Ray Russom
Subject: Proposed Hillside Homeless Project
Dear Mayor Russom,
I am a Grover Beach homeowner who, along with many of the neighbors I have talked to are adamantly opposed to the
Hillside Church project. Something like this is not worth the risk to the surrounding community. It only takes one bad
apple mixed in with the crowd to change our community forever. Just this weekend I spoke with a parole officer at the
gym who is familiar with the situation. He cannot believe something like this is being considered in a residential
neighborhood. He stated that on occasion they will go to the Prado Center in SLO (on a rainy night) and pull the check in
list. This inevitably leads to the arrest of 4‐5 people. His coworker who came to our local neighbors for safety meeting
spoke of a parolee who has been staying at the warming center at Hillside and was told he would have a permanent
place to stay if the Hillside facility opens. This parolee is a convicted sexual predator. I love our community and can’t
imagine the negative impact this will have in our neighborhood (and the cities of Grover Beach/Arroyo Grande). This
type of center, while needed should not be in the middle of a hardworking community of people. We just want to live in
peace and not have to deal with the criminals, mentally ill, etc. who will frequent the area if this project is approved. It
is better to wait and find the right location (no matter how long it takes) rather than force something in the wrong
location. What it comes down to is that we do not want this project (whether or not our concerns are seen as
legitimate‐and they are legitimate concerns). I realize the proposed project is in Grover Beach, but request that you
apply whatever political pressure/authority you have to influence Grover Beach officials and other leaders to stop this
project. I ask that you reject any future support for this project at the Hillside location and stand up for what we
want! Thanks for your consideration.
Matt St. Laurent
Item 11.a. - Page 40
On Apr 4, 2019, at 2:20 PM, William Ashley~> wrote:
Thank you for the notification of the next board meeting and the
willingness to look at the Hillside project.
I went to the HSOC meeting. As I thought I heard that the HEAP funds
will just be to buy the property. I hope we can now have a clean slate:
address the needs of our community. Separate the two components:
address now the front part of the property involved with SCHC. Most
people are good with the peoples self help housing.
I have gone door-to-door and talked with many people. The warming
center was an issue. The dormitory was an issue. Bringing services into
our neighborhood that require people to visit their office is an issue. Trust
with our city and county government is an issue.
Not having a warming center there creates anxiety for some people that
are concerned that we won't have any warming center facilities. That
needs to be addressed.
A large volume of young man in transitional living for up to two years
concerns many. Finding a ranch with bunk houses and barns would be a
much better fit for such a group.
Having transitional housing like echo in Atascadero where families come in
one day and leave the next would be more acceptable. Having longer-
term transitional care for pregnant women and their boyfriends would be
more acceptable.
A hub of homeless services that increases foot traffic could be addressed
by having a separate office in a business area that distributes passes,
items and coupons. Keep navigation, administrative and council services
separate. Having the main contact point for transient homeless in the
commercial area would probably decrease the number the show up at
night lost on our residential streets.
Have a process that involves the community. It seems it is more in
Arroyo Grande than Grover. I'm sure many such as my self would
contribute to a facility that is better suited for our neighborhood.
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