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HomeMy WebLinkAboutCHG Recommendation 6 22 26MEMORANDUM To: Jefferson County Housing Fund Board From: Holly Morgan, Executive Director, Olympic Community Action Partnership Date: June 24, 2026 Re: Recommendation Regarding Administration of the Consolidated Homeless Grant for the 2027-2029 Biennium Members of the Housing Fund Board, Thank you for the opportunity to discuss administration of the Consolidated Homeless Grant (CHG) for the upcoming biennium. OlyCAP has proudly served Jefferson County residents for sixty years and currently operates a broad continuum of housing and supportive service programs, including emergency shelter, rapid rehousing, permanent supportive housing, youth services, homelessness prevention, and diversion programming. After careful evaluation of our capacity and readiness, I recommend that Olympic Community Action Partnership continue as the lead agency for the Consolidated Homeless Grant for the 2027-2029 biennium. Existing Infrastructure and Experience OlyCAP possesses extensive infrastructure already dedicated to housing and homelessness response. We maintain established financial systems, human resources, information technology, compliance oversight, program administration, and reporting mechanisms that support housing programs throughout Jefferson County. Our staff and leadership are experienced in managing federal, state, and local funding streams and coordinating with landlords, service providers, and community partners. This existing framework allows OlyCAP to administer CHG efficiently while minimizing duplication of administrative costs and preserving continuity for participants and community stakeholders. Acknowledging Recent Challenges Over the last two+ years, OlyCAP experienced significant organizational challenges, particularly within fiscal operations and staffing. These challenges contributed to delays in accounts payable processing and created concerns regarding the timeliness of payments to some landlords and vendors. Leadership recognized these issues and took resolution seriously. Rather than applying temporary fixes, OlyCAP undertook a comprehensive restructuring of our fiscal operations. Corrective Actions and Organizational Investments Over the past year, OlyCAP has substantially strengthened its financial infrastructure through the following actions: Rebuilt the fiscal department from one internal full-time employee supported by an external consultant to a team of four full-time fiscal staff. Retained a fractional Chief Financial Officer to provide strategic financial oversight continuity and monthly review. Updated monthly closing procedures to improve accuracy, transparency, and accountability. Established processes designed to maintain audit readiness throughout the year rather than relying on year-end correction. Streamlined administrative systems and reduced organizational costs to improve cash flow and operational efficiency. Addressed aging accounts payable balances and expect all outstanding payments associated with all programs to be current by mid-July 2026. These investments represent permanent structural improvements rather than temporary remedies. Program Stability and Performance Under the leadership of Housing Director Viola Ware and her team, housing services have continued uninterrupted throughout this period. OlyCAP's housing programs have maintained strong community partnerships and continued serving vulnerable households experiencing homelessness or housing instability. The dedication and professionalism of housing staff have ensured that participants remained the focus despite organizational challenges occurring elsewhere in the agency. New Housing Team members can take up to one year to fully train in all contract areas – we already have a solid team in place. Looking Forward The upcoming biennium presents an opportunity to build on these improvements. OlyCAP enters this next cycle with strengthened financial controls, expanded fiscal staffing, enhanced oversight, and decades of experience administering housing and homeless services. Continuity matters. Transitioning administration of the Consolidated Homeless Grant to another organization would require recreating infrastructure, relationships, and systems that already exist. OlyCAP's recent investments position us to provide stable, accountable, and effective administration while allowing community partners and service providers to remain focused on what matters most: preventing and ending homelessness in Jefferson County. For these reasons, I respectfully recommend that Olympic Community Action Partnership continue as the lead agency administering the Consolidated Homeless Grant for the 2027-2029 biennium. Thank you for your consideration and for your continued partnership in addressing homelessness in Jefferson County. Respectfully, Holly Morgan, MA, SHRM-SCP, CCAP Executive Director Olympic Community Action Partnership Attachments: Pros and Cons White Paper Pros of OlyCAP Continuing CHG Management 1. Existing Infrastructure OlyCAP already possesses the administrative systems, accounting structure, contracts, policies, HR support, IT, compliance systems, and reporting mechanisms required to administer CHG. No start-up costs or transition delays are required. Board question: Why spend a year rebuilding what already exists? 2. Deep Community Relationships Long-standing relationships with landlords. Established referral networks. Coordination with County, Behavioral Health, schools, courts, hospitals, and service providers. Community trust built over decades. 3. Experienced Housing Staff Viola's team understands: HMIS Commerce requirements Housing First principles Rapid rehousing Diversion Permanent supportive housing 4. County Risk During Transition Changing lead agencies creates risks: Staff departures. Loss of institutional knowledge. Contract delays. HMIS disruptions. Landlord confusion. Service interruptions. 5. Recent Fiscal Interventions Were Significant The organization recognized serious weaknesses and invested heavily: Before 1 fiscal employee Heavy dependence on CLA Weak processes Outdated fiscal management systems and tools Now 4 FTE fiscal staff Updated/implemented fiscal management systems Fractional CFO oversight Monthly closes Improved controls Audit readiness focus 6. Capacity Beyond CHG OlyCAP brings: Shelter operations. PSH. Youth programs. Diversion. Outreach. Prevention. Cons of OlyCAP Continuing 1. Recent Fiscal Problems Were Real Aged AP. Late landlord payments. Staffing turnover. Financial instability. Delayed reports. Trust was damaged. Even if fixed, the organization must rebuild confidence. 2. Organizational Bandwidth OlyCAP is managing: LIHEAP recovery. Audit remediation. Housing portfolio. Community centers. Head Start. Weatherization. Property decisions. Cost reductions. A reasonable question is: Is the organization trying to do too much? 3. Reputational Risk Some providers and landlords have memories. Even after systems improve, there may be skepticism: "Will checks arrive?" "Will reports be timely?" "Will management stay stable?" Trust takes longer to rebuild than systems. 4. Dependency Risk Jefferson County homelessness response is heavily concentrated. If OlyCAP struggles, a large portion of the system struggles. Diversification has advantages. 5. Leadership Transition Risk If key leaders leave: Viola Holly Fiscal leadership Knowledge concentration creates vulnerability. Succession planning matters. 6. Commerce Scrutiny Because recent difficulties are known, Commerce will scrutinize performance more closely than they would another provider. Arguments For Another Agency Taking Over Potential benefits: Fresh start. Smaller organizational scope. Opportunity to redesign the system. Reduced concentration of responsibility. But there are significant drawbacks: There is no obvious replacement. To be successful another agency would need: ✓ Fiscal capacity. ✓ Compliance expertise. ✓ HMIS experience. ✓ Established landlord relationships. ✓ Housing case managers. ✓ Program infrastructure. ✓ Ability to absorb millions of dollars. ✓ Willingness to assume substantial liability. That narrows the field considerably.