Camarillo City Council
AGENDA REPORT
Date: July 8, 2026
To: Honorable Mayor and City Councilmembers
From: Greg Ramirez, City Manager
Submitted by: Carmen Nichols, Assistant City Manager
Subject: Amendment to Agreement No. 2025-180 – MOU with County of Ventura for Homekey+ Lewis Road Project
BACKGROUND
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, as defined in California Welfare and Institutions Code Section 5965.02. The program provides both capital and limited operational funding for qualifying projects.
On April 10, 2025, the County of Ventura applied for $27,970,000 in Homekey+ funding ($22,970,000 for capital costs and $5,000,000 for operational costs) to develop 88 units of permanent supportive housing at 1722-1736 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. The County Board of Supervisors approved the project, Homekey+ application, and CEQA exemption on April 8, 2025.
The Homekey+ grant required 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 was provided by Ventura County Behavioral Health through Behavioral Services Act funds.
On August 13, 2025, the City Council approved an MOU with the County of Ventura (Agreement No. 2025-180) governing the City’s $2,000,000 capital contribution to the Homekey+ project in exchange for the reservation of 10 dedicated units for eligible Camarillo residents over the 55-year life of the project. The City Manager executed the MOU on September 9, 2025, and the County Executive Officer executed it on September 16, 2025.
First Amendment to Agreement No. 2025-180 – Homekey+ Lewis Road Project July 8, 2026
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Under the original MOU, Sections 4.B., 6, and 8.B. tied the City’s financial contribution and the termination provisions to the inclusion of the City’s Enforceable Funding Commitment (EFC) in the County’s Standard Agreement with the State of California Department of Housing and Community Development (HCD). Specifically:
• Section 4.B. required the City to provide $2,000,000 in capital match “if the Project is awarded Homekey+ funding from the State of California, and an Enforceable Funding Commitment from City for the Project is accepted by the State of California Department of Housing and Community Development (‘HCD’),” and required the City to provide funds to the County “within 180 days of the County’s execution of the Standard Agreement with HCD for the Homekey+ funding.”
• Section 6 required that the City’s $2,000,000 be received by the County “within 180 days of execution of the Standard Agreement between County and HCD.” • Section 8.B. stated that upon the City’s capital contribution being included in the Homekey+ Standard Agreement as an EFC, neither party may terminate the MOU.
Following execution of the MOU, the County was notified that the Homekey+ grant was awarded for the Lewis Road project. Subsequent to that award, it was determined that the City’s EFC would not be formally incorporated into the Homekey+ Standard Agreement as contemplated due to changes in how the State was processing EFCs. HCD separately acknowledged receipt of the City’s funding commitment, and the County confirmed that construction has commenced on the Lewis Road project. Because the originally specified triggering events, acceptance of the EFC by HCD and inclusion of the City’s capital contribution in the Standard Agreement, will not occur as drafted, the MOU requires amendment to align the payment and termination provisions with circumstances that will actually occur. City staff and the City Attorney conferred with County staff on the necessary changes.
DISCUSSION
The proposed First Amendment to the MOU updates the triggering events and timelines in Sections 4.B., 6, and 8.B. as follows:
Section 4.B. – Capital Match Triggering Event and Payment Timeline The original language conditioned the City’s $2,000,000 contribution on the acceptance by HCD of the City’s EFC in the Standard Agreement, and required payment within 180 days of the County’s execution of the Standard Agreement with HCD. The amendment revises the triggering event and payment timeline as follows:
• The City’s obligation to provide $2,000,000 will be triggered by (1) the Project being awarded Homekey+ funding from the State of California, and (2) HCD’s acknowledgement of the City’s funding. The amendment removes the prior requirement that the City’s EFC be formally incorporated into the Standard Agreement as a condition of the City’s obligation.
First Amendment to Agreement No. 2025-180 – Homekey+ Lewis Road Project July 8, 2026
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• The deadline for the City to provide funds to the County is extended from 180 days to 365 days of the County’s execution of the Standard Agreement with HCD for Homekey+ funding. This extension reflects the time needed to return to Council for amendment approval before payment can be authorized.
Section 6 – Payment Schedule
Consistent with the amendment to Section 4.B., Section 6 is amended to extend the payment deadline from 180 days to 365 days of the execution of the Standard Agreement between County and HCD, ensuring alignment between the two provisions.
Section 8.B. – Termination Provision
Section 8.B. is amended to update the irrevocability trigger to correspond with the new triggering events described above, specifically, HCD’s acknowledgement of the City’s funding and the County’s commencement of construction, whichever occurs first, rather than inclusion of the EFC in the Standard Agreement. This ensures that the non- termination provision is tied to a condition that has occurred.
The proposed amendment does not alter the core terms of the partnership. The City’s $2,000,000 capital contribution, the 10 dedicated units for eligible Camarillo residents over the 55-year term, the referral and unit prioritization process, the reporting and accountability provisions, or any other substantive terms of the MOU are unaffected. The amendment is limited to technical corrections necessary to align the payment and termination provisions with the actual circumstances of the project in response to changes in how HCD is processing EFCs.
FISCAL IMPACT
Funds for the City’s one-time contribution of $2,000,000 are included in the General Fund Community and Human Services Division FY 25/26 budget, Account No. 101-4340- 446.32-01.
CEQA DETERMINATIONS
City staff has determined, in accordance with Section 15061(b)(3) of the California Environmental Quality Act (CEQA) Guidelines, that the proposed amendment to MOU 2025-180 is not subject to CEQA review because it can be seen with certainty that there is no possibility that the MOU may have a significant effect on the environment.
RECOMMENDATION
1. Approve the First Amendment to the Memorandum of Understanding (Agreement No. 2025-180) with the County of Ventura for the Homekey+ Permanent Supportive Housing Project at 1722-1736 Lewis Road, amending Sections 4.B., 6, and 8.B. to update the triggering events for the City’s $2,000,000 capital contribution and related payment and termination provisions; First Amendment to Agreement No. 2025-180 – Homekey+ Lewis Road Project July 8, 2026
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2. Authorize the City Manager to execute the First Amendment on behalf of the City; and
3. Authorize the City Manager to approve and execute future amendments and non-substantive changes to the MOU with the County of Ventura that make corrections, clarifications, and technical changes consistent with the original purpose of the agreement and that do not result in additional cost or liability to the City.
ATTACHMENTS
1. First Amendment to Memorandum of Understanding between the County of Ventura and the City of Camarillo (Agreement No. 2025-180A)
2. Memorandum of Understanding between the County of Ventura and City of Camarillo (Agreement No. 2025-180)
REFERENCE MATERIALS – AVAILABLE FOR REVIEW AT CITY HALL None