Camarillo City Council
AGENDA REPORT
Date: August 13, 2025
To: Honorable Mayor and City Councilmembers
From: Greg Ramirez, City Manager
Submitted by: Carmen Nichols, Assistant City Manager
Subject: Approval of Memorandum of Understanding with County of Ventura for Homekey+ Permanent Supportive Housing Project Partnership
BACKGROUND
Homekey+ Program Overview
The Homekey+ grant program was established through Proposition 1, approved by California voters in March 2024, to rapidly expand permanent supportive housing for individuals experiencing homelessness with behavioral health challenges, defined in the California Welfare and Institutions Code Section 5965.02 to include but not be limited to a serious mental illness, as described in subdivision (c) or (d) of Section 14184.402, or a substance use disorder, as described in Section 5891.5.. The program provides both capital and limited operational funding for qualifying projects.
Ventura County's Project Application
On April 10, 2025, the County of Ventura applied for $27,970,000 in Homekey+ funding ($22,970,000 for capital costs and $5 million for operational costs) to develop 88 units of permanent supportive housing at 1732 Lewis Road, south of City limits. The project will serve individuals who are experiencing homelessness with behavioral health challenges, with referrals processed through the Continuum of Care’s Coordinated Entry System, a centralized process designed to coordinate homelessness program intake, assessment, and provision of referrals. The County Board of Supervisors approved the project, Homekey+ application, and CEQA exemption on April 8, 2025.
The Homekey+ grant requires local matching funds, with the County needing to secure capital and operational match funding. Gold Coast Health Plan committed funding toward this requirement, while additional operational match funding will come from Ventura County Behavioral Health through Behavioral Services Act funds.
Partnership Opportunity
The County approached the City to participate as a funding partner, recognizing that the
County of Ventura Homekey+ MOU
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project is located adjacent to Camarillo and can serve as a beneficial resource to the City.
The partnership allows the City to leverage significant state funding while securing dedicated housing units for Camarillo residents experiencing homelessness. The requested one-time contribution from the City of $2 million will help fulfill the County's required capital match funding.
Following initial discussions, County and City staff worked collaboratively to draft a Memorandum of Understanding (MOU) that outlines the terms of the partnership, including the City's financial contribution, and unit prioritization for Camarillo residents experiencing homelessness.
Public Safety and Emergency Preparendess Committee Review Staff presented the partnership opportunity to the Public Safety & Emergency Preparedness Committee on July 25, 2025, which reviewed the partnership concept and provided feedback to staff. Throughout the MOU development process, staff coordinated closely with County staff to ensure the agreement serves the City of Camarillo’s community interests while meeting grant requirements.
DISCUSSION
Project Overview
The proposed Homekey+ project will develop 88 permanent supportive housing units plus one manager unit at 1732 Lewis Road in the unincorporated area south of City Limits, adjacent to Camarillo. The facility will utilize modular prefabricated construction to create 200 square foot efficiency units, each complete with kitchenette, bathroom, and living space. Many Mansions will serve as the long-term operator and service provider, while Dignity Moves will handle development. If awarded, the project has an anticipated construction timeline of 18 to 24 months, targeting individuals experiencing homelessness with behavioral health challenges.
Partnership Structure and City Benefits
Under the proposed MOU, the City will make a one-time capital contribution of $2 million and in return secure 10 dedicated units for eligible Camarillo residents over the 55-year life of the project. This arrangement allows the City to maintain control over determining what constitutes a "verified connection" to Camarillo, ensuring local residents benefit from the investment. The City will receive regular reporting on unit occupancy and exits from the reserved units, providing ongoing accountability. Importantly, the City bears no responsibility for operational costs over the 55-year period, which will be funded through the Homekey+ grant, Behavioral Health Services Act funds, Gold Coast Health Plan, and other funding sources identified by the County of Ventura.
Financial and Administrative Framework
If approved, the City's $2 million contribution will be provided directly to the County within 180 days of the execution of the Standard Agreement between the County and the State Department of Housing and Community Development (HCD). The City's commitment will County of Ventura Homekey+ MOU
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be formalized through the MOU and the State required Enforceable Funding Commitment Letter (Attachment 2) that will become part of the County's Standard Agreement with the State, providing legal assurance that the partnership terms will be honored throughout the project's development and operation. The City will not have an agreement with Dignity Moves or Many Mansions directly.
Unit Allocation and Referral Process
The 10 dedicated City units will be filled through a structured process that begins with ensuring eligible households meet Homekey+ criteria. The establishment of eligibility for Homekey+ criteria involves two main components: behavioral health challenges including substance abuse and homelessness status. Behavioral health challenges are documented through clinical verification by healthcare providers or existing service connections (many Project Hope clients already qualify), and homelessness status is verified through standard HUD documentation and the Coordinated Entry System records.
Referrals will be processed through the established Coordinated Entry System, after which City staff and Project Hope will verify each household's connection to Camarillo jurisdiction and that the individuals have been homeless in the City of Camarillo for six months or longer. Should no eligible Camarillo residents be available for placement in one of the ten units at some point in the 55-year term of the MOU, the unit will not remain vacant but will be filled by another eligible household., If that occurs, the next available unit in the project will become a City prioritized unit instead, ensuring the City retains 10 priority units.
Legal Considerations
The MOU was reviewed by the City Attorney and incorporates standard municipal agreement provisions while addressing the unique aspects of this state-funded partnership. Key legal provisions include:
55-year term commencing upon Certificate of Occupancy, providing long-term housing security for Camarillo residents
Irrevocable City commitment once funds are included in State Standard Agreement, ensuring the partnership's stability
Irrevocable County commitment once construction commences, ensuring the project will move forward at the point City funds start to be expended County indemnification of City (with standard exceptions for City negligence), protecting the City from third-party claims arising from County's project operations
Structured dispute resolution through mediation with mutually agreed mediators, providing a clear path for resolving potential conflicts County of Ventura Homekey+ MOU
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Standard contract provisions for notices, assignment restrictions, and modifications, ensuring proper legal framework and administrative procedures Strategic Trade-offs and Considerations
This partnership structure offers significant benefits while requiring certain trade-offs for Council consideration. The primary advantage is the ability to leverage $28 million in state funding through a $2 million City investment, effectively providing permanent housing solutions for Camarillo residents experiencing homelessness without ongoing operational obligations and expenses. The City maintains meaningful control over the referral verification process while avoiding the administrative and financial burden of direct project management.
However, this partnership involves less direct operational oversight than the City might expect in a City-owned project. The County will operate under standard Homekey+ grant requirements, which limits flexibility in program modifications and requires compliance with state-mandated processes such as the Coordinated Entry System.
Alignment with Local Priorities
This partnership aligns strategically with the City's existing homelessness response through Project Hope and leverages established relationships with Ventura County Behavioral Health staff who serve on the Project Hope team. Many current Project Hope clients already meet the behavioral health challenge criteria required by Homekey+, positioning the City well to utilize the City prioritized units effectively. The partnership essentially extends the City's homelessness services capacity while utilizing primarily state and county resources, maximizing the impact of local investments in addressing this regional challenge.
FISCAL IMPACT
The City's contribution of $2,000,000 represents a one-time capital investment. No ongoing operational funding is required from the City. If approved, the funds would be appropriated from the Continuum of Care Commitment in the General Fund that has been set aside for homelessness and housing purposes.
This investment secures 10 permanent supportive housing units for Camarillo residents over 55 years, representing an annual cost of approximately $3,636 per unit over the project term.
CEQA DETERMINATIONS
The project received a CEQA exemption from the County as the lead agency. No additional environmental review is required for the City's participation in the funding partnership.
County of Ventura Homekey+ MOU
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RECOMMENDATION
1. Approve the Memorandum of Understanding (MOU) with the County of Ventura to provide the City's $2,000,000 capital contribution to the Homekey+ Permanent Supportive Housing Project at 1732 Lewis Road; and
2. Authorize the City Manager to execute the MOU and related Enforceable Funding Commitment Letter.
3. Authorize an appropriation of $2,000,000 in the General Fund, Account No. 101-4340-446.32-01
ATTACHMENTS
1. Memorandum of Understanding between the County of Ventura and City of Camarillo
2. Enforceable Funding Commitment Letter
3. Homekey+ Notice of Funding Availability (NOFA)
REFERENCE MATERIALS – AVAILABLE FOR REVIEW AT CITY HALL None