CCP 04182022 - Laserfiche WebLink

Home

35 Given the amount of funds tentatively allocated to support non-profits ($50,000), staff suggests a 36 maximum of $10,000 be given to assist an individual non-profit. The process to award the grants should 37 be through an application process with a deadline. As part of the process, staff would review the 38 submitted applications and provide a recommendation for City Council consideration and approval. 39 40 If this approach is acceptable, staff will bring back program guidelines and more details about the process 41 for City Council approval at a future meeting. 42 43 Group Home Assistance 44 As previously mentioned, the challenges that ACR Homesis facing as a result of the pandemic and 45 staffing shortage, were raised by a member of the public at the February 28 City Councilmeeting. 46 Subsequent to that meeting, the City Manager met with representatives of ACR Homes to learn more 47 about the challenges they face. 48 49 While ACR Homes is a for-profit business, it operates on very tight margins and is heavily regulated and 50 restricted on what it can collect reimbursement for. In addition, all group homes, whether a for-profit or 51 not for-profit group home are restricted under state regulations on what they can pay employees as part 52 of an overall rate setting formula for long-term care. 53 54 Currently, ACR Homes has 20,000 hours of uncovered shifts each month due to the lack of available 55 employees. This has led to the need of closing 4 ACR group homes in the metroarea that has displaced 56 17 residents. ACR Homes is currently operating at a deficit and at this rate, they may not be able to 57 survive through the end of the year. There is work at the Legislature to allow for higher pay and 58 additional funding to come to group homes, but that assistance will not arrive until at least January, 59 2023. 60 61 In ACR’s case, they will need additional funding in order survive. ACR Homes represented that they 62 needed an additional $20,000 of revenue for the group homes they operate to sustain their operation for 63 the rest of the year. They have a total of 6 remaining group homes in Roseville, resulting in a need of 64 $120,000 of assistance. 65 66 Representatives of ACR Homes are approaching other communities about the possibility of financial 67 assistance. At this time, staff is not aware if any city has given ACR Homes or other group homes any 68 direct financial assistance. 69 70 Roseville has a total of 39 group homes licensed by the State of Minnesota. At this point, staff has not 71 reached out to other group home operators but it is likely that other group home operators are facing the 72 same challenges. 73 74 Assuming all of the group homes in Roseville have the same financial challenges as ACR Homes, it 75 would cost up to $780,000 to provide the needed assistance. Given that amount, it will be a challenge 76 for the city to directly help all group homes. In addition, unless substantial changes are made on the 77 statewide and federal regulatory level, the current problems will continue into future years. 78 79 With that in mind, staff would like the City Council to have a discussion on whether there is an interest 80 in using the City’s ARPA funding to provide forsome level ofdirect financial support of group homes. 81 As the City Council is aware, there are many segments of theRoseville business community that are 82 struggling due to the pandemic, including facing staffingchallenges. If there is a desire to help group 83 homes directly, the City will need to articulate the unique circumstances and needs that group homes face Page 2 of 3