Agenda Item Wording:
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Authorize the City Manager to execute an agreement and appropriate an additional $425,000 in Successor Agency Housing (SAH) funds for Visalia Homekey LP to convert 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: 11/6/2023
Submitting Department: Finance and Technology Services
Contact Name and Phone Number:
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) Appropriate Successor Agency Housing (SAH) funds, in the amount of $425,000 with affordable housing provisions for a period of 55 years between the City of Visalia and Visalia Homekey LP, for the conversion of the Majestic Motel to develop a 42-unit Permanent Affordable Rental Housing complex for qualifying populations; and
2) Authorize the City Manager or their designee to negotiate, make minor changes, and execute the necessary contracts and loan agreements.
Background Discussion:
On July 18, 2022, Council awarded RFP 21-22-28 to RHCB Development LP (RHCB) to convert the Majestic Motel at 4545 W. Noble Avenue into the Majestic Gardens, a Permanent Affordable Rental Housing complex with on-site wrap-around intensive case management and supportive services for people experiencing homelessness at or below 30% of the area median income (AMI) level in accordance with HOME American Rescue Plan Program (HOME-ARP) Qualifying Populations, with the use of $1.8 million in HOME-ARP funds, and $900,000 in Successor Agency Housing (SAH) funds. The Majestic Gardens total acquisition and rehabilitation capital costs are $17,298,880 and the project has secured $16,225,070 in capital development funding, which will cover 94% of the total c...
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