ADMINISTRATIVE REPORT
MEETING DATE: December 17, 2025 AGENDA CATEGORY: Consent – PS/VS TO: Honorable Mayor and City Council
FROM: Jennifer M. Byers, Economic and Community Development Director DATE: December 1, 2025
SUBJECT: Loan Agreement with Victory Family Services (not to exceed $1,000,000) for the Creation of Affordable Housing units
for Foster Transitional Youth, to purchase a ten (10) unit apartment complex at 4400 Columbus Street. (Ward 3)
RECOMMENDATION:
Staff recommends approval of the agreement.
BACKGROUND:
On April 18, 2025, City published a Notice of Funding Availability (NOFA) for the Affordable Housing Trust Fund (AHTF) program which provides low-interest loans for the acquisition, construction, and rehabilitation to provide affordable housing, which included PSVS as a funding source.
Historically the Point in Time Count shows that 30-40% of the homeless youth (ages 18-24) came from the foster care system and this subpopulation is growing rapidly. This population typically has no family support system, subject to the tumultuous nature of multiple placements, challenges in school, and suffer from other traumatic experiences that leave them vulnerable to housing insecurity. City previously identified at risk or homeless youth as a current demographic that is very challenging to address and is currently underserved by affordable housing developers.
Victory Family Services (VFS) functions both as a Foster Family Agency (FFA) and a Transitional Housing Placement Program (THPP) and is an expert in providing housing and services to foster transitional youth population with client referrals from Kern County Department of Human Services (KCDHS). VFS provides housing to its clients as well as assistance in life skills including but not limited to budgeting, education and occupational planning to provide a foundation and tools for youth to avoid homelessness.
VFS currently master leases a ten (10) unit multifamily facility located at 4400 Columbus Street, Bakersfield Ca. 93306. VFS has identified that by acquiring the facility it would provide ongoing direct control against annual rental increases and provide equity for continued operations and expansion. VFS submitted an application to the AHTF NOFA for $1,000,000 to acquire the existing facility.
With the purchase of this facility the City will deed restrict ten (10) affordable housing units for 20 years dedicated to foster transitional youth that will be included in the City’s annual progress reporting of Regional Housing Needs Allocation (RHNA) to the California Department of Housing and Community Development (HCD), showing vital progress in addressing the City’s housing needs.
FISCAL IMPACT:
PSVS funding was budgeted and allocated to the City controlled Affordable Housing Trust Fund in previous Fiscal Years, thus it doesn’t have an impact on City General Fund.
COUNCIL GOAL:
Safety and Resilience
ATTACHMENT:
Agreement