Agenda Item Wording:
title
Authorize a resolution to receive Homekey funds - Approve a resolution authorizing a joint application with RHCB Development LP and Visalia Homekey LP for Homekey Round 3.0 not to exceed $15 million for the Majestic Gardens Project; the Mayor to be named as the authorized signer for Homekey documents; and the City Manager to sign Resolution 2024-02.
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Deadline for Action: 2/20/2024
Submitting Department: Finance and Technology Services
Contact Name and Phone Number: Margie Perez, Housing Specialist, margie.perez@visalia.city <mailto:margie.perez@visalia.city>, (559)713-4460; Melody Murch Assistant Finance Director, melody.murch@visalia.city <mailto:melody.murch@visalia.city>, (559)713-4379; Renee Nagel, Finance Director, renee.nagel@visalia.city <mailto:renee.nagel@visalia.city>, (559)713-4375
Department Recommendation:
Staff recommends that Council:
• Adopt Resolution 2024-02 authorizing a joint application with RHCB Development LP and Visalia Homekey LP for Homekey Round 3.0 program not to exceed $15 million for the Majestic Gardens Project as required by California Department of Housing and Community Development;
• Authorize the Mayor to be named as the authorized signer for Homekey documents on behalf of Co-Applicant for participation in the Homekey Program; and
• Authorize the City Manager or their designee to sign Resolution 2024-02.
Background Discussion:
On April 17, 2023, Council authorized staff to apply in conjunction with co-applicant RHCB Development LP for Homekey Round 3.0 not to exceed $15 million to assist with the development and operation of the Majestic Gardens Project to convert the Majestic Motel into permanent supportive rental housing. The City of Visalia and co-applicant RHCB Development LP were awarded $13,835,376 for the development and operation of Majestic Gardens. To execute the Homekey 3.0 award, an updated resolution is required to maintain compliance with Government Code 40602, identifying the mayor as the authorized signatory for Homekey documents as well as include the second co-applicant Visalia Homekey LP.
The Majestic Project: On July 18, 2022, Council awarded RFP 21-22-28 to the RHCB Development LP (RHCB) to develop the Majestic Motel into Permanent Affordable Rental Housing for people experiencing homelessness in accordance with HOME Investment Partnerships American Rescue Plan (HOME-ARP) Qualifying Populations, with the use of $1,800,000 in HOME-ARP and $900,000 in Successor Agency Housing (SAH) funds. RHCB’s proposal indicated plans to apply for Homekey funds as the primary source of funding for the Majestic Project development. The project development has also secured Homekey match funds in $1,044,000 in Housing and Homelessness Incentive Program (HHIP) funds and $207,691 in Homeless Housing, Assistance, and Prevention (HHAP) funding from the Kings/Tulare Homeless Alliance (KTHA). The secured match funding has been confirmed and verified by City staff.
Homekey Round 3.0 Award: On May 11, 2023, the City and co-applicant RHCB Development LP applied for Homekey Round 3.0 for the development and operation of the Majestic Gardens. On September 26, 2023, the City and co-applicant RHCB Development LP were notified of an award of $13,835,376 in Homekey 3.0 funds for the Majestic Gardens Project.
On February 6, 2024, California Department of Housing and Community Development (HCD) notified the City in order to execute the Homekey 3.0 award an updated resolution is required to maintain compliance with Government Code 40602, identifying the mayor as the authorized signatory for Homekey documents as well as include the second co-applicant Visalia Homekey LP.
Visalia Homekey LP: Visalia Homekey LP is a California limited partnership developed for the development and operation of the Majestic Gardens Project. Visalia Homekey LP is comprised of RHCB VISALIA LLC, By: RHCB Development LP, a California limited partnership, HOME XXXIV LLC, By: Housing on Merit, a California nonprofit public benefit corporation, and UP VISALIA LLC, By: UP Holdings, a limited liability company.
Next Steps: Upon receiving the fully executed Homekey Round 3.0 contract agreement, acquisition and building permits will be obtained. Rehabilitation is expected to last six months and to be completed in the fall of 2024. Full occupancy is expected to be completed by January 2025. The Majestic Gardens project will provide 41 units of permanent supportive housing and one on-site manager unit. Majestic Gardens will also have on-site case managers, an office, and resource room to assist in tenant’s long-term housing stability and lead to a life of self-sufficiency.
Fiscal Impact:
The Homekey round 3.0 award provided $13,835,376 toward the development and operation of the Majestic Project to provide permanent supportive housing. No additional funding is requested from City grant sources, and there is no General Fund money budgeted for this project.
Prior Council Action: • December 20, 2021: HOME-ARP public hearing to review and comment on the development of HOME-ARP Allocation Plan. • July 18, 2022: Award of RFP-21-22-28 to RHCB Development for $1.8 million in HOME-ARP and $900,000 in Successor Agency Housing (SAH) funds for the development of the Majestic Inn to permanent supportive affordable rental housing. • April 17, 2023: Council authorized staff to apply for Homekey Round 3.0 not to exceed $15 million to assist with the development and operation of the Majestic Project to convert the Majestic Motel into permanent supportive rental housing.
Other: None
Alternatives: None
Recommended Motion (and Alternative Motions if expected):
recommendation
I move to:
• Adopt Resolution 2024-02 authorizing a joint application with RHCB Development LP and Visalia Homekey LP for Homekey Round 3.0 not to exceed $15 million for the Majestic Gardens Project as required by California Department of Housing and Community Development;
• Authorize the Mayor to be named as the authorized signer for Homekey documents on behalf of Co-Applicant for participation in the Homekey Program; and
• Authorize the City Manager or their designee to sign Resolution 2024-02.
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Environmental Assessment Status: Completed
CEQA Review: N/A
Attachments: Attachment A - Homekey Award Letter Attachment B - Resolution 2024-02.