Agenda

Return

C.105

To:	Board of Supervisors
From:	Anna Roth, Health Services Director
Date:	December 14, 2021

Contra

Costa

County

Subject:

Apply for and Accept Homekey Program funding from the California Department of Housing and Community Development

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 12/14/2021

APPROVED AS RECOMMENDED

OTHER

Clerks Notes:

VOTE OF SUPERVISORS

AYE:

John Gioia, District I Supervisor
Candace Andersen, District II Supervisor
Karen Mitchoff, District IV Supervisor
Federal D. Glover, District V Supervisor

ABSENT:

Diane Burgis, District III Supervisor

Contact:	Lavonna Martin, 925-608-6701
cc:	L Walker M Wilhelm

I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown.
ATTESTED: December 14, 2021
Monica Nino, County Administrator

BY:	, Deputy

RECOMMENDATION(S):

ADOPT Resolution No. 2021/409 authorizing the Health Services Director, or designee, to apply to the California Department of Housing and Community Development (HCD) for up to $32,400,000 in Homekey Program grant funding.


AUTHORIZE the Health Services Director, or designee, to execute HCD’s standard agreement (STD 213) and all other documents required or necessary to secure Homekey program funds, including any extensions or amendments thereto, subject to approval by the County Administrator and approval as to form by County Counsel.

RECOMMENDATION(S): (CONT'D)

APPROVE and AUTHORIZE the Public Works Director, or the designee, to execute an exclusive negotiating rights agreement with Clarence Perry, LLC, authorizing continued negotiations of a lease or lease-purchase agreement for the County’s acquisition of the property at 2555 El Portal, San Pablo, subject to approval by the County Administrator and approval as to form by County Counsel.

FISCAL IMPACT:

There is no matching contribution required by the State to receive funding under the Homekey Program, however bonus funding is available for applications that include match. Any cost above the state contribution would be the obligation of the County. The Board of Supervisors approved Measure X one-time funds for this project on November 16, 2021 in an amount up to $5.2M as match.

BACKGROUND:

Homekey Grant Application

The California Department of Housing and Community Development (HCD) announced the availability of approximately $1.45 billion in Homekey Program (Homekey) funding through a Round 2 Notice of Funding Availability (NOFA) dated September 9, 2021.

Building on the success of Project Roomkey, and initial Homekey awards in 2020, Homekey continues as a statewide effort to rapidly sustain and expand housing for persons experiencing homelessness and impacted by COVID-19.

Of the $1.45 billion in Homekey funding, $1.2 billion is derived from the Coronavirus State Fiscal Recovery Fund (CSFRF) established by the federal American Rescue Plan Act of 2021 (ARPA) (Public Law 117-2) and $250 million in state General Funds. The $250 million in state General Fund money is intended to supplement the acquisition of, and provide initial operating subsidies for, Homekey sites to promote project feasibility.

The County has been participating in Project Roomkey since early April 2020, when the County Health Officer determined that congregate shelters needed to be emptied to reduce the risk of the spread of COVID-19.

If the County is successful in obtaining Homekey funds, staff will propose that the funds be used to purchase the building located at 2555 El Portal Drive in San Pablo. The County has been working with the property owner for some time to develop plans to renovate the existing building to create 54 micro housing units to provide permanent affordable housing and support services to qualifying individuals experiencing homelessness or at risk of homelessness. Each of the units will be equipped with a bathroom, shower and kitchenette. Services will be offered on-site and tailored to an individual’s needs. Services can include case management, primary and behavioral healthcare, life skills support, medication, and money management. Residents will pay no more than 30% of their income toward rent.

Exclusive Negotiating Agreement

The proposed exclusive negotiating agreement is between the County and the owner of the property located at 2555 El Portal Drive in San Pablo. The 1.84-acre site has been improved with a 2-story, 25,610 square foot building. The exclusive negotiating agreement with the building owner is a necessary component of the County’s Homekey grant application.

On January 7, 2020, the Board authorized the execution of an exclusive negotiating agreement with the owner of the property at 255 El Portal Drive, San Pablo. Pursuant to that agreement, the County worked closely with the property owner to determine the feasibility of the project and develop site plans and space plans for the use of the property. The City of San Pablo has already granted all discretionary approvals necessary to proceed with the proposed project.

Under the proposed exclusive negotiating agreement, the County and the owner will continue negotiating a lease or lease-purchase agreement for the County’s acquisition of the property. Approval of any lease or lease-purchase agreement will be subject to a separate board action.

CONSEQUENCE OF NEGATIVE ACTION:

Contra Costa County will not apply for a grant of up to $32,400,000 from the State of California to acquire property for use as housing for homeless individuals.