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HomeMy WebLinkAbout2025-10-07 Council minutesr = -4 CITY OF I0X/VA CITY MEMORANDUM Date: October 14, 2025 To: Mayor and City Council From: Kellie Grace, City Clerk Re: Council Work Session, October 7, 2025 — 4:00 p.m. at City Hall in Emma J Harvat Hall Council: Alter, Bergus, Harmsen, Moe, Salih, Teague, Weilein Staff: Fruin, O'Brien, Lehmann, Goers, Grace, Caro, Hightshoe, Knoche, Havel, Sovers, Kilburg, Nagle-Gamm, Cahill. JCBOS: Chair Jon Green, Vice Chair V Fixmer-Oraiz, Lisa Green -Douglas, Mandi Remington, Rod Sullivan (A transcription is available in the City Clerk's Office and the City website.) 1. Joint Meeting with Johnson County Board of Supervisors: Permanent Supportive Housing Crissy Canganelli, Shelter House Executive Director, introduced Amy Stetzel, Corporation for Supportive Housing Midwest Director, who presented a PowerPoint on the following: Overview - CSH (Corporation for Supportive Housing) is a national nonprofit advancing affordable housing paired with supportive services. Focus: permanent supportive housing (PSH) — deeply affordable, non —time -limited housing for individuals with complex health or behavioral needs, often those experiencing chronic homelessness. CSH works through policy, training, technical assistance, lending, and systems change to expand PSH. What Permanent Supportive Housing Is - Evidence -based, minimal -barrier housing that combines affordability, tenant autonomy, and voluntary support services. Tenants have standard leases and cannot be excluded based on sobriety, behavior, or "housing readiness." - Not a treatment program, group home, or time -limited care facility. Can be single -site (one building) or scattered -site (units in separate locations). - Success depends on four key components: 1. Housing, 2. Property & asset management, 3. Supportive services, 4. Community integration Iowa Context CSH and Iowa partners helped establish statewide definitions and quality standards for PSH. The Iowa Center for Excellence in Behavioral Health developed standards still available online despite loss of state funding. - Shelter House recognized as a best -practice model (Cross Park Place, 501 Project). October 7, 2025 Page 2 Local Need: Johnson County / Iowa City CSH Needs Assessment (Gabe Schuster): Based on Homeless Management Information System (HMIS) homeless data (3 years) + community input. - About 23% of homeless households are chronically homeless (similar to national average). - Total of 1,093 unduplicated households identified: o 77% individuals, 14% families, 7% youth - Current PSH utilization: -90%, nearly max capacity (national avg: 84%). - Estimated local need: -300 additional PSH units o -260 for individuals o-40forfamilies - Existing capacity: 61 single -site units + 130 scattered -site units. Development and Cost (Chrissy Canganelli - Shelter House) 501 Project: - 36 one -bedroom units, trauma -informed design, embedded clinical space. Total cost: $7.57 million (2022); projected $10.2 million if built in 2026. - Funded through: o National Housing Trust Fund (IFA) o Housing Trust Fund of Johnson County o CDBG/Home grants o Private gifts & loans o Commercial financing (not recommended for future projects). Operating Costs -501 Project: - 24/7 staffing, property management, and rase management (1:12 ratio). Annual cost per tenant:-$23,000 , $830,000 total per year for 36 tenants. - Funded by: Project -based vouchers, tenant rent (30% income), HUD CoC funds, private donations. - Major concern: HUD policy changes may cut funding — risking 84 households and $780,000 in annual support by 2027. Outcomes and Impact - National PSH outcomes: o 52% 1 incarceration o 57% 1 ER visits 0 87% 1 detox use o 83% remain housed tt year - Local results (Iowa City): 0 68-73% 1 arrests/incarcerations 0 99% tenancy retention 2:1 year o Only 1 return to homelessness since 2019 o Up to 99% reduction in medical costs for some tenants. Engagement is voluntary, yet 100% of tenants eventually engage in some ongoing care. Challenges Ahead Insufficient PSH supply vs. growing need (300-unit gap). - High local development costs and tight housing market limit scattered -site options. Funding cliffs: COVID-era funds (Home -ARP, SLFRF) end by Dec 2027, threatening 105 households. - HUD policy changes could eliminate key service funding by 2026-2027. - Urgency: need for immediate and long-term strategies to expand and sustain PSH capacity. October 7, 2025 Page 3 • Next Steps - Continue community planning through early 2026 to: o Finalize needs assessment results o Develop investment and policy strategies o Present recommendations to city and county leaders for sustainable PSH expansion. CSH Senior Program Manager, Gabriel Schuster and Shelter House Executive Director, Crissy Canganelli provided additional information. Individual Council members and County Supervisors asked questions. City Manager Fruin offered further information. Action: Staff will send the County a copy of the slides and resend the winter shelter agreement and current list of financial supporters for that operation, as provided by the Shelter House and will stay engaged in the ongoing CSH planning efforts. Councilors Salih and Weilein will meet with Board of Supervisor delegates to discuss planning for the permanent supportive housing Joint Entities meeting agenda item. (Supervisors were dismissed from the meeting at 5:36 p.m.) 2. Clarification of Agenda Items • [6.f]... Application to be a "Bird Friendly Iowa" community ... Councilor Alter noted she would be asking for clarification on the resolution language regarding "protecting birds" and what that entails. 3. Information Packet Discussion (September 18, September 25, October 21 ➢ September 18—No discussion. ➢ September 25—No discussion. ➢ October 2 1. (IP4 — Memo from City Clerk's Office: Joint Entities Meeting Agenda Items for July 21) Mayor Teague stated there was already one topic noted for the Joint Entities meeting on October 20'h [Permanent Supportive Housing]. 4. University of Iowa Student Government (USG) Updates. No updates. 5. Council updates on assioned boards, commissions, and committees Council members reported on various assigned boards, commissions, and committees. 3. (continued) Information Packet Discussion [September 18, September 25, October 21 ➢ October 2 1. (IP4 — Memo from City Clerk's Office: Joint Entities Meeting Agenda Items for October 20) Mayor Teague Mayor Teague suggested adding "LOST' to the Joint Meeting agenda. Individual Council members expressed their views. October 7, 2025 Page 4 Action: Staff will place the topics of "Permanent Supportive Housing" and "LOST' on the Joint Entities meeting agenda for October 20. Councilors Salih and Weilein will meet with Board of Supervisor delegates to discuss planning for the permanent supportive housing Joint Entities meeting agenda item. Staff will contact Greater Iowa City and ask if they can speak to the LOST agenda item on the Joint Entities meeting agenda. 2. (IP3 — Memo from the City Manager's Office: Housing Information) Mayor Pro Tern Salih highlighted information from the memo noting we are still in need more affordable housing. Adjourn 5:40 p.m.