Agenda Item Wording:
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Appropriation of Homekey Round 3.0 Program Income - Authorize appropriation of $202,400 of Homekey Round 3.0 program income funds, in the 2025-2026 fiscal year capital budget for the Majestic Gardens project.
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Prepared by: Margie Perez, Housing Specialist, margie.perez@visalia.gov, (559) 713-4460; Melody Much, Assistant Finance Director, melody.murch@visalia.gov, (559) 713-4379; Renee Nagel, Finance Director, renee.nagel@visalia.gov, (559) 713-4375.
Department Recommendation: Staff recommends that Council appropriate $202,400 of Homekey Round 3.0 program income funds (333) in the 2025-2026 fiscal year capital budget, for the Majestic Gardens project (CP0516).
Summary:
On April 17, 2023, Council approved an application of Homekey Round 3 program for the development and operation of the Majestic Gardens project. On September 26, 2023, the City was notified of an award of Homekey Round 3.0 funds in the amount of $13,835,376 for the Majestic Gardens project. Of this grant amount, $5,720,000 was paid directly from the granting agency, into an escrow to purchase the Majestic Motel property. The remaining $8,115,376 was paid to the City in a lump sum, which has been held in a separate fund earning interest income until spent. As a result, as of October 2025, the Homekey Round 3.0 funds have generated $202,400 in program income. The Homekey program requires Homekey generated program income funds to be used for eligible Homekey program activities; therefore, staff is requesting all Homekey Round 3.0 program income funds to be awarded to the original Homekey project Majestic Gardens (CP0516).
Background Discussion:
Homekey is a statewide effort to sustain and rapidly expand housing for people experiencing homelessness or at risk of homelessness, administered by the California Department of Housing and Community Development Department (HCD). Homekey is an opportunity for state, regional, and local public entities to develop a broa...
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