Agenda Item Wording:
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Authorize an updated resolution to receive and appropriate Homekey+ Funds - Approve an updated resolution (2025-64) authorizing a joint application with Self-Help Enterprises and Crescent Meadows LP for Homekey+ funds not to exceed $15 million; and appropriate $15 million in Homekey+ funds for the Crescent Meadows project, contingent upon an award.
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Prepared by: Margie Perez, Housing Specialist, margie.perez@visalia.city, (559) 713-4460; Melody Murch, Assistant Finance Director, melody.murch@visalia.city, (559) 713-4379; Renee Nagel, Finance Director, renee.nagel@visalia.city, (559) 713-4375.
Department Recommendation:
Staff recommends that Council:
1) Adopt Resolution 2025-64 authorizing a joint application with Self-Help Enterprises and Crescent Meadows LP for Homekey+ funds not to exceed $15 million for the Crescent Meadows Project as required by California Department of Housing and Community Development; and
2) Appropriate Homekey+ funds up to $15 million for the development and operation of the Crescent Meadows project.
Summary:
On February 3, 2025, Council authorized resolution 2025-02 approving an application in conjunction with co-applicant Crescent Meadows LP for Homekey+ funds not to exceed $12 million to assist with the development and operation of the Crescent Meadows Project to develop an 80-unit senior affordable housing project with 24 Homekey+ assisted units. On August 15, 2025, California Department of Housing and Community Development (HCD) notified the City that it must provide an updated resolution which includes Self-Help Enterprises as a second co-applicant in addition to Crescent Meadows LP in order to proceed with the Homekey+ application. HCD recommends increasing the resolution approved amount to $15 million in the event the Homekey+ award is more than expected. Approval of this item will also appropriate $15 million in Homekey+ funds for the Crescent Meadows project, contingent upon an award of Homekey+ funds.
Background Discussion:
On November 26, 2024, the California Department of Housing and Community Development (HCD) in collaboration with the California Department of Veterans Affairs (CalVet), announced the availability of approximately $2.145 billion of Homekey+ grant funding statewide and approximately $117 million will be available for the San Joaquin Valley, derived from Proposition 1 as shown in Attachment “A” - Homekey+ NOFA. Homekey+ is the permanent housing component of the Behavioral Health Infrastructure Bond Act, part of Proposition 1 passed by California voters in March 2024. Homekey+ supports the development of Permanent Supportive Housing (PSH) for Veterans and individuals with mental health or substance use disorder challenges who are at-risk of or experiencing homelessness.
Homekey+ NOFA: The Homekey+ funding available in this NOFA is targeted to provide Permanent Supportive Housing for individuals or households with an individual who is Homeless, Chronically Homeless, or At Risk of Homeless, and who are also living with a Behavioral Health Challenge. Homekey+ provides applicants the flexibility to take advantage of opportunities available within their specific communities that will result in the prompt acquisition and availability of new homes with a focus on cost containment. It will also finance new construction for projects that can be built quickly in a cost-efficient manner. Examples of eligible uses include acquisition and rehabilitation of existing sites (e.g. hotels/motels, apartments), master leasing, new construction, and the purchase of affordability covenants. All Homekey+ projects are required to have an abundance of supportive services within one-half mile or on-site to ensure tenants long-term housing stability and prevent recidivism.
On April 3, 2025, the City of Visalia and co-applicant Crescent Meadows LP applied for Homekey+ funds to assist with the development and operation of the Crescent Meadows Project to develop an 80-unit senior affordable housing project with 24 Homekey+ assisted units. To proceed with the Homekey+ application the City is required to execute an updated Resolution to include a second co-applicant Self-Help Enterprises in addition to Crescent Meadows LP. HCD recommends increasing the resolution amount to $15 million in the event the awarded amount is higher than expected.
Crescent Meadows: Crescent Meadows is an 80-unit senior affordable housing project with one- and two-bedrooms located at the northwest corner of Ferguson Ave. and N. Dinuba Blvd. in the City of Visalia. Crescent Meadows is being developed by Crescent Meadows, L.P., a California Limited Partnership in partnership with Self-Help Enterprises, and Visalia Senior Housing (VSH). The project will be affordable senior housing serving individuals over the age of 62, and 24 units will be set aside for seniors experiencing homelessness, or at-risk of homelessness.
Next Steps: if awarded Homekey+ funds the Homekey+ contract agreement will be executed, and construction will begin in the fall of 2025. Construction is expected to last 24 months and be completed in the fall of 2027. Full occupancy is expected by winter of 2027.
Fiscal Impact: Approval of this item will appropriate the Homekey+ funds, contingent upon award, for an amount not to exceed $15 million toward the development and operation of the Crescent Meadows senior housing project. No General Fund money is requested or budgeted for this project.
Prior Council Action: February 3, 2025 - Council authorized resolution 2025-02, approving staff to apply for up to $15 million in Homekey+ funds for the development of Crescent Meadows an 80-unit senior affordable housing project with 24 Homekey+ assisted units.
Other: None.
Alternatives: None.
Recommended Motion (and Alternative Motions if expected):
recommendation
I move that Council: • Adopt Resolution 2025-64 authorizing a joint application with Self-Help Enterprises and Crescent Meadows LP for Homekey+ funds not to exceed $15 million; and
• Appropriate up to $15 million in Homekey+ funds for the development and operation of the Crescent Meadows project, contingent upon award.
Environmental Assessment Status: N/A
CEQA Review: N/A
Deadline for Action: 9/2/2025
Attachments: Attachment A: Resolution 2025-64