title
ADOPT A RESOLUTION AUTHORIZING AN AMENDMENT TO THE STANDARD AGREEMENT WITH CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT FOR THE HOMEKEY PROJECT TOWN CENTER STUDIOS TO ADD TOWN CENTER STUDIOS, LP TO THE STANDARD AGREEMENT
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a resolution authorizing:
1. An amendment to the Homekey Project Town Center Studios Standard Agreement (Agreement) between the City and the California Department of Housing and Community Development to add Town Center Studios, LP as a contractor to the Agreement.
2. The City Manager to execute all necessary Homekey Documents for participation in the Homekey Program, including but not limited to amendments to the Standard Agreement with the California Department of Housing and Community Development.
It is further recommended that the City Manager, or designee, be authorized to take appropriate and necessary actions to carry out the purpose and intent of this resolution.
body
Summary
The California Department of Housing and Community Development (HCD) announced the availability of $600 million in funds for the Homekey Program in July 2020. Program funds were made available to purchase and rehabilitate housing and convert it into interim or permanent long-term housing.
Central Valley Low Income Housing (CVLIHC), in collaboration with Stocktonians Taking Action to Neutralize Drugs (STAND), proposed the Town Center Studios sustainable permanent supportive housing project (Project). The City, CVLIHC and STAND jointly applied for and were awarded funds for the Project by HCD, which has since been completed and houses 42 individuals.
After receiving Homekey funds for the Project, CVLIHC and STAND transferred ownership of the property to Town Center Studios, LP. HCD is now in the grant closeout phase and requires that Town Center Studios, LP be added to the Agreement by amendment. HCD requires a resolution from Council to authorize the amendment.
DISCUSSION
Background
On July 16, 2020, the State of California Department of Housing and Community Development (HCD) issued a Notice of Funding Availability (NOFA) for local public entities within California to purchase and rehabilitate housing, including hotels, motels, vacant apartment buildings, and other buildings to convert them into interim or permanent long-term housing. Of the $600 million in Homekey funds, $550 million is derived from the State’s direct allocation of the federal CARES Act Funds, and $50 million is derived from the State’s General Fund. Funds were awarded on a rolling basis, with a priority application deadline of August 13, 2020.
The Homekey Program’s primary objective is to provide housing for individuals and families experiencing homelessness or at risk of experiencing homelessness and who are impacted by the COVID-19 pandemic.
In response to the NOFA, the City, CVLIHC, and STAND submitted a joint application for funds. CVLIHC, in collaboration with STAND, proposed acquisition of the property located at 1604 N. Wilson Way, Stockton, CA 95205 (Property) to develop Town Center Studios (39 units, 41 beds), a sustainable permanent supportive housing project (Project). The Project and grant application were approved by Council on August 11, 2020. The City was notified of the grant award on November 5, 2020 and subsequently entered into the Standard Agreement (Attachment A) with HCD. The Project provides 39 units of homeless housing, with one unit utilized as housing for an on-site property manager.
Present Situation
The Project has brought much needed supportive housing to the City’s homeless population. After receiving Homekey funds for the Project, CVLIHC and STAND transferred ownership of the Property to Town Center Studios, LP, as contemplated in the original Agreement. During the closeout phase of the grant, HCD has requested an amendment to the Agreement to include Town Centers Studio LP as a contractor, in addition to the City, CVLIHC and STAND. To amend to the Agreement to add Town Center Studios, LP, HCD requires a resolution from Council. The Agreement has been fully expended and the Project is complete. The purpose of the Amendment is to reflect that ownership of the Property transferred to Town Center Studios, LP.
Staff recommends that Council approve a resolution authorizing the City Manager, or designee, to submit an amendment to the Agreement to HCD for the Project.
FINANCIAL SUMMARY
There is no impact to the City’s General Fund or to any other unrestricted fund as a result of taking the recommended action.
Attachment A - Agreement - Homekey Program