Agenda Item Wording:
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Appropriation of Awarded Grant Funds - Authorize the appropriation of funds awarded from the State of California Homekey Round 3 grant program of $8,115,376 for the conversion of the Majestic Motel at 4545 W. Noble Avenue into a 42-unit Permanent Affordable Rental Housing complex for qualifying populations.
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Deadline for Action: 4/15/2024
Submitting Department: Finance and Technology Services
Contact Name and Phone Number: Margie Perez, Housing Specialist, 713-4460, margie.perez@visalia.city; Melody Murch, Assistant Finance Director, 713-4379, melody.murch@visalia.city; Renee Nagel, Finance Director, 713-4378, renee.nagel@visalia.city
Department Recommendation:
Staff Recommends that Council:
* Authorize appropriation of Homekey Round 3.0 funds, in the amount of $8,115,376 for the conversion of the Majestic Motel to develop a 42-unit Permanent Affordable Rental Housing complex for qualifying populations; and
* Authorize the Mayor and staff to negotiate, make minor changes, and execute the necessary contracts and loan agreements.
Background Discussion:
The City of Visalia, RHCB Development LP, and Visalia Homekey LP, have been jointly awarded $13,835,376 in Homekey Round 3 funding for the conversion of the Majestic Motel into Permanent Supportive Housing (PSH). Of this grant amount, $5,720,000 will be paid directly from the granting agency, into an escrow to purchase the Majestic Motel property. The remaining $8,115,376 will be paid to the City in a lump sum. The City will then make progress payments to RHCB Development and Visalia Homekey LP, as the project is completed. To accomplish this, the funds must be appropriated in the City budget.
History: On April 17, 2023, Council authorized staff to apply in conjunction with co-applicants RHCB Development LP and Visalia Homekey LP for Homekey Round 3.0 not to exceed $15 million to assist with the development and ope...
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