HomeMy WebLinkAboutR-11439 authorizing Joint Application to, and participation in, the Homekey Program for the Calle Joaquin Homekey ProjectR 11439
RESOLUTION NO. 11439 (2023 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, AUTHORIZING JOINT APPLICATION TO, AND
PARTICIPATION IN, THE HOMEKEY PROGRAM FOR THE CALLE
JOAQUIN HOMEKEY PROJECT
WHEREAS, the California Department of Housing and Community Development
(“Department”) has issued a Notice of Funding Availability, dated March 29, 2023
(“NOFA”), for the Homekey Program (“Homekey” or “Program”). The Department has
issued the NOFA for Homekey grant funds pursuant to Health and Safety Code section
50675.1.3 (Assembly. Bill No. 140 (2021-2022 Reg. Sess.), § 20.); and
WHEREAS, The City of San Luis Obispo (“The City”) desires to jointly apply for
Homekey grant funds with People’s Self-Help Housing Corporation (“Co-Applicant 1”),
Calle Joaquin Homekey LLC (“Co-Applicant 2”), and Calle Joaquin LP (“Co-Applicant 3”).
Therefore, The City is joining Corporation in the submittal of an application for Homekey
funds (“Application”) to the Department for review and consideration of the Calle Joaquin
Homekey Project located at 1433 Calle Joaquin; and
WHEREAS, The Department is authorized to administer Homekey pursuant to the
Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675) of Part 2 of
Division 31 of the Health and Safety Code. Homekey funding allocations are subject to
the terms and conditions of the NOFA, the Application, the Department-approved STD
213, Standard Agreement (“Standard Agreement”), and all other legal requirements of
the Homekey Program; and
WHEREAS, Housing Element policies and programs encourage and support the
construction of new affordable housing in the City; and
WHEREAS, on July 24, 2023, the Council of the City of San Luis Obispo
authorized the joint application to, and participation in, the Homekey program by adoption
of Resolution No. 11329 (2023 Series).
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis
Obispo to amend Resolution No. 11439 (2023 Series) and authorize the joint application
to, and participation in, the Homekey program as follows:
SECTION 1. Recitals. The recitals set forth above are hereby adopted as
additional findings of the City in adopting the policies herein.
SECTION 2. Environmental Review. As provided by Health and Safety Code
section 50675.1. the guidelines allow for exemption of certain Round 3 Homekey Projects
from the California Environmental Quality Act (CEQA). Evaluation of potential
environmental impacts in accordance with CEQA will occur if during the application
submittal or funding award it is determined that the project is not exempt per HSC section
50675.1.4.
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SECTION 3. Findings. The City Council, after consideration of the Homekey
Program and staff recommendations, makes the following findings:
1. The City Manager or their designee is hereby authorized and directed to
submit a joint Application to the Department in response to the NOFA, and
to jointly apply for Homekey grant funds for an anticipated project cost not
to exceed $22,000,000. Per the Homekey grant provisions, it is
recommended to identify an authorized dollar amount that is at least double
the anticipated award. In line with available funding allocation for the Central
Coast Geographical Area, the total authorized amount shall not exceed
$22,000,000.
2. If the Application is approved, the City Manager or their designee is hereby
authorized and directed to enter into, execute, and deliver a Standard
Agreement in a total amount not to exceed $22,000,000, any and all other
documents required or deemed necessary or appropriate to secure the
Homekey funds from the Department and to participate in the Homekey
Program, and all amendments thereto (collectively, the “Homekey
Documents”).
3. The City acknowledges and agrees that it shall be subject to the terms and
conditions specified in the Standard Agreement, and that the NOFA and
Application will be incorporated in the Standard Agreement by reference and
made a part thereof. Any and all activities, expenditures, information, and
timelines represented in the Application are enforceable through the
Standard Agreement. Funds are to be used for the allowable expenditures
and activities identified in the Standard Agreement.
4. The City Manager of the City of San Luis Obispo, or their designee, is
authorized to execute the Application and the Homekey Documents on
behalf of the City for participation in the Homekey Program and to execute
such other documents and take such other actions consistent with the
purposes of the grant as necessary to accept and comply with grant
requirements and implement the project.
NOW, THEREFORE, BE IT FURTHER RESOLVED by the Council of the City of
San Luis Obispo as follows:
SECTION 1. Findings. The City Council does hereby make the following findings
in support of the proposed $400,000 AHF award:
1. Eligibility: Use of the AHF for the requested purpose will increase or improve
the City’s affordable housing inventory and promote General Plan policies
regarding housing, as follows:
The Calle Joaquin Homekey Project will enable an increase to the City’s
affordable housing inventory specifically for permanent supportive housing and
implements several General Plan policies regarding housing. The project will
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increase the supply of affordable housing for extremely low, very low, and low
income households with the conversion of 87 motel units to 50-75 permanent
supportive housing units and associated supportive services.
2. Need: There exists a substantial or overarching need for the type of unit to be
assisted, as follows:
Housing needs in general are growing along the coastal areas, particularly for
lower income households, which is exacerbating the Homelessness crisis. San
Luis Obispo will benefit greatly from the Calle Joaquin Homekey Project
development because it specifically provides critical permanent supportive
housing units called for in both the City’s Homelessness Response Strategic
Plan and the County of San Luis Obispo Countywide Plan to Address
Homelessness.
3. Suitability: The project to be assisted is appropriate for its location both in
terms of land use and design, as follows:
The Calle Joaquin Homekey Project is appropriately suited for this location,
both in terms of land use, adjacent bus routes, and proximity to services along
Los Osos Valley Road, Madonna Road, South Higuera and Prado Road and
will accommodate full-time on-site supportive services, management, and
oversight.
4. Timing: The project would better serve the City’s needs if it were built
immediately as opposed to later, as follows:
The Calle Joaquin Homekey Project will be permitted and motel rooms
converted and occupied within 15 months as allowed for and intended by the
state Homekey Grant program to rapidly expand the inventory of housing for
people experiencing homelessness or at risk of homelessness at the specified
location.
5. Financial Effectiveness: But for the requested funding, the project would not
be economically feasible; or AHF funding “leverages” significant additional
funding from other sources, as follows:
This is a highly effective use of the City’s Affordable Housing Funds , in the
amount of $400,000, as it will leverage additional funding sources as they
demonstrate local support and commitment to the development. These funding
sources include the Homekey Grant Round 3 award for an anticipated project
cost of $21,528,657; County of San Luis Obispo funding commitment in the
amount of $2.6 million; Private Foundation funding in the amount of $800,000;
$150,000 Wells Fargo Homekey Accelerator funding; and $164,329 Deferred
Developer Fee. Project financial feasibility is dependent upon the City’s
Affordable Housing Funds.
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6. Readiness: The project is ready to proceed, as follows:
Per Homekey Guidelines and City Zoning regulations, the proposed Calle
Joaquin Homekey Project will not require discretionary approvals. Upon the
award of a City Affordable Housing Fund award, PSHHC will be eligible to apply
for additional public funding programs and other private activity bond financing.
Should the project receive the Homekey Round 3 Grant award, construction
will start immediately with occupancy 15 months from award.
Upon motion of Council Member Shoresman, seconded by Vice Mayor Pease, and
on the following roll call vote:
AYES: Council Member Francis, Shoresman, Vice Mayor Pease, and
Mayor Stewart
NOES: None
ABSENT: Council Member Marx
The foregoing resolution, which was originally adopted July 24, 2023, was amended and
re-adopted this 16th day of April 2024.
___________________________
Mayor Erica A. Stewart
ATTEST:
______________________
Teresa Purrington,
City Clerk
APPROVED AS TO FORM:
______________________
J. Christine Dietrick,
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the
City of San Luis Obispo, California, on ______________________.
___________________________
Teresa Purrington,
City Clerk
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4/18/2024 | 12:00 PM PDT
City of San Luis Obispo, Community Development, 919 Palm Street, San Luis Obispo, CA, 93401-3218, 805.781.7170, slocity.org
MEMORANDUM
DATE: March 21, 2024
TO: City Council
FROM: Timmi Tway, Community Development Director
VIA: Daisy Wiberg, Homelessness Response Manager
SUBJECT: Administrative Correction to Resolution
The State of California’s Department of Housing and Community Development
(HCD), the entity which awards funds under the Homekey Program, has requested a
correction be made to the City of San Luis Obispo’s Resolution No. 11439 (2023
Series) for the Calle Joaquin Homekey project. The City and People’s Self-Help
Housing Corporation (PSHH) were awarded a Homekey Round 3 grant on December
19, 2023.
Prior to issuing a Standard Agreement for the Calle Joaquin Homekey project, HCD
has requested an amendment to the resolution naming all co-applicants for the
project. The City and PSHH were listed in the original resolution as co-applicants,
however PSHH created a Limited Liability Company (LLC), Calle Joaquin Homekey
LLC, and a Limited Partnership (LP), Calle Joaquin LP, for the Homekey project, and
HCD requested that both entities be listed as additional co-applicants on the
Resolution.
The originally adopted resolution states:
“WHEREAS, The City of San Luis Obispo (“The City”) desires to jointly apply
for Homekey grant funds with People’s Self-Help Housing (“Corporation”). Therefore,
The City is joining Corporation in the submittal of an application for Homekey funds
(“Application”) to the Department for review and consideration of the Calle Joaquin
Homekey Project located at 1433 Calle Joaquin; and”
The amended resolution will state:
“WHEREAS, The City of San Luis Obispo (“The City”) desires to jointly apply
for Homekey grant funds with People’s Self-Help Housing Corporation (“Co-
Applicant 1”), Calle Joaquin Homekey LLC ("Co-Applicant 2"), and Calle Joaquin LP
("Co-Applicant 3"). Therefore, The City (“Applicant”) is joining Co-Applicants in the
submittal of an application for Homekey funds (“Application”) to the Department for
review and consideration of the Calle Joaquin Homekey Project located at 1433 Calle
Joaquin; and”
The requested amendment to the resolution is consistent with the partnership
structure outlined in the Homekey Round 3 grant application and does not alter the
project, partnership, or the City’s financial obligations in any way. PSHH created
separate LLC and LP entities for the Calle Joaquin Homekey project to provide liability
protection, and an effective ownership structure for management and tax purposes.
The entity structure is also in place to allow PSHH to seamlessly apply for tax credits
in the future.
Staff will update the Resolution and submit the amended Resolution to HCD so that
the Calle Joaquin Homekey project may move forward.