The California Department of Housing and Community Development (HCD) announced the availability of approximately $600 million of grant funding for a program referred to as Homekey, a statewide effort to expand the availability of housing to those experiencing homelessness. Building on the success of Project Roomkey, Homekey is a statewide effort to rapidly expand and sustain housing for persons experiencing homelessness and impacted by COVID-19. Of the total amount available, approximately $91 million has been set aside for Bay Area localities. It is expected that the application process will be highly competitive. HCD has indicated that applications received by August 13, 2020, will receive priority consideration. All applications are due to not later than September 29, 2020.  
  
In response to the pandemic, the County is currently leasing two motels, one in Richmond and one in Pittsburg, to house individuals experiencing homelessness and impacted by COVID-19. Both leases include a provision that gives the County the option to purchase the properties following the execution of a purchase and sale agreement with the property owner. Today’s action is a request for authority to submit two applications to HCD for consideration. One application requests funds to acquire the motel currently under lease in Richmond. The other application requests funds to acquire the motel currently under lease in Pittsburg. If the funds are awarded and negotiations with the property owners are successfully completed, staff will return to the Board to request authority to enter into the purchase and sale agreement(s) to acquire the property(ies). While additional details will be provided in any subsequent board order(s), it is envisioned that the property in Richmond would be refurbished to become permanent housing for homeless persons and that the property in Pittsburg would be used to provide interim housing with supportive services to assist individuals in their transition to permanent housing.  
  
The motel under consideration in Richmond currently has 149 rooms and the motel under consideration in Pittsburg currently has 174 rooms. The purchase price of the properties would be based on their fair market value, as determined by appraisal.  
  
Funds received by the County under the Homekey program that are dedicated to capital expenditures must be spent by December 30, 2020. Funds received by the County under the Homekey program that are dedicated to operating subsidies must be spent by June 30, 2022.

If the County does not submit an application to HCD for funds under the Homekey program, the County will not be able to negotiate for the purchase of properties that could provide permanent resources to the County’s homeless population.

Speakers: Doug, LBG Real Estate Co. ;  Dave Beisenger, resident of Richmond; Anna Roth, Health Services Director.