FY27 - Financial Administration Platform for Homeless Services

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IT Governance Business Case Financial Administration Platform for Homeless Services Community Safety

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Background The City of Durham's Community Safety Department (DCSD), through its Continuum of Care (CoC) program, coordinates local homeless services to prevent and end homelessness through collaboration, service alignment, and strategic investment.

DCSD utilizes a Homeless Management Information System (HMIS) to track client intake and assessments, manage coordinated entry processes, record services provided (shelter, outreach, housing placement, etc.), track housing outcomes and program performance, and to generate required Continuum of Care reports. Local municipalities that receive funding from the US Department of Housing and Urban Development (HUD) are required to maintain standardized reporting. This ensures: •

Compliance with federal funding rules

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Measurement of outcomes (e.g., time to housing)

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De-duplication of client records

Community-wide data visibility It is important to note that HMIS is a client record documentation platform. It is not an ERP, financial administration platform, or fund monitoring platform.

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Current Business Problem DCSD currently relies on manual outreach to partner agencies to manage funding availability. Fragmented systems, privacy limitations, and limited real-time visibility into housing funding and funding utilization reduce operational efficiency and hinder timely decision-making. Additionally, the absence of a standardized landlord payment process results in inconsistent experiences and periodic payment delays.

As a result, landlord participation declines due to uncertainty and lack of confidence in the process. This limits housing supply, constrains the City’s ability to optimize resources, increases compliance risk, and makes it difficult to demonstrate measurable outcomes to stakeholders and the public.

Finally, system fragmentation and limited technology mean that staff spend inordinate time ensuring that financial records are accurate. Shifting to a different platform would allow the City (and homelessness providers) to regain staff time and alleviate staff burden.

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Current Pain Points • Fragmented Data Across Agencies • Privacy & Data Sensitivity (HIPAA / Data Sharing Limits) • Poor Real-Time Visibility of Funding Availability • Complex Grant Funding Tracking • Inability to efficiently pay rents, utilities, move-in fees, and other landlord services • Inability to embed HUD compliance criteria in technology platforms • High staff burden in ensuring accuracy of financial records

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Future State Benefits • Unified, Practical Data Ecosystem • Secure, Role-Based Data Governance • Live Funding Capacity & Placement Management • Streamlined Grant Funding Tracking • Ease of Payments to Landlords and Related Services • Ease of Compliance with HUD Regulations • Reduced Staff Burden in Ensuring Accuracy of Financial Records

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Strategic Alignment

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Analysis and Recommended Solution

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Analysis of Proposed Solution: Feature

Desired Solution

Traditional HMIS

ERP

Reporting

Yes

Yes

Yes

Client records

Yes

Yes

Yes

Rental support workflows

Yes

No

No

Landlord engagement

Yes

No

No

Inspections

Yes

No

No

Payment integration

Yes

No

Yes

DCSD needs a housing financial administration solution designed to help homeless services organizations manage the full lifecycle of their housing assistance programs. It should support workflows from eligibility and subsidy calculations to inspections, payments, compliance, financial tracking, and performance reporting. We are looking for a service that provides end-to-end administration and analytics for multiple program models and funding sources.

DCSD currently uses Padmission Connect, a web-based housing search and property management platform that helps the City connect individuals experiencing homelessness with housing opportunities. The City is considering Padmission Journey, a housing financial administration platform offered by Padmission. This solution meets the City’s requirements and would allow for a smoother transition by remaining within the Padmission ecosystem.

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Recommended Solution: Identify and implement a

financial administration platform for homeless services

Description

Pros

Cons

Continue the selection process to identify and implement a financial administration platform for homeless services to streamline DCSD's operations.

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Unified, Practical Data Ecosystem Secure, Role-Based Data Governance Live Capacity & Placement Management Streamlined Grant Funding Tracking

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N/A

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TS Architecture Review The identified solution will undergo the standard Architecture Review once a vendor is selected.​

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Cybersecurity Review The identified solution will undergo the standard Cybersecurity Review once a vendor is selected.​

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Recommended Solution - Project Financial Estimate COST ESTIMATES

FUNDING

Implementation Costs (Hours)

Post Implementation Run Costs (Hours)/ KTLO

Internal TS Department:

76 Hours

0 hours

Business Analysis

8 hours

Internal Labor New FTE – Year 1 Costs

Architecture Office

10 hours

Project One Time Costs (External)

$61,200

Cybersecurity

8 hours

*Total Project Funding Requested for Year 1

$61,200

Project Management Office

120 hours

*Total Project Funding Requested for Year 2

$40,800

Description

Departmental Funding Amount:

$0

Labor $ (Hours)

Community Safety

Implementation

60 hours

Funding Requested (Y/N):

20 hours

$20,400

Non-Labor $ Software

$40,800

$40,800

* Total Project Funding Requested Year 1 includes New FTE Labor, External Labor and Non Labor

Y $0.00

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Risk Identification Description of Risk

Risk Impact (High/Medium/Low)

Vendor performance

Low

N

N

Cyber Security

Low

N

N

Project Team Turnover

Low

N

N

Poor Execution

Low

N

N

Mitigated (Y/N) Contingency(Y/N)

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Mitigation Risk (Costs) •

N/A

Contingency Risk (Costs) •

N/A

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Our ask We are asking the IT Governance Steering Committee to approve and score the business case to implement a Financial Administration Platform for Community Safety. If approved, the business case will be scored, ranked and submitted to the City Manager for final approval.