Empower individuals & families ● Build community resilience ● Promote housing opportunities ● Enhance quality of life
HOUSING &
HOMELESS SERVICES
Presented by:
Item 8.1
Conversion of Palomar Motel for
Permanent Supportive Housing
Stacey Kurz, Director
Carlos Rodriguez, Acting Management Analyst II
Housing Chula Vista’s Unsheltered
• 318 homeless individuals in January
• “Chula Vista Village at Otay”
opened May 2023
• Provides temporary emergency
transitional shelter
• Gaps in permanent housing
solutions remain
RTFH 2023 Point in Time Count (PITC)
• Estimated 40% suffer from
mental health disorders
• Many require long-term or
lifelong support services
• Permanent Supportive
Housing (PSH)
• Combines affordable housing
assistance with voluntary
support services
Barriers & Solution
• Supports individuals at or below 50%
area median income (very-low income)
• 30 beds in South Bay out of 6,865 in
San Diego Region
• Recognized by service providers as
greatest need in 2022/23 HOME-ARP
Survey
Permanent Supportive Housing
2022/23 HOME-ARP ALLOCATION PLAN, adopted 2/14/23
• Emergency Rental Assistance 2 (ERA2)
• Final reallocation $65,996.64
• Housing construction or rehabilitation to serve very low-income • Appropriated on May 23, 2023 by Resolution 2023-061
• American Recovery Program Act (ARPA)
• “Address systemic public health and economic challenges that have contributed to the inequal impact of the pandemic on certain populations”
• Homekey Program (Homekey)
Current Funding Available
• California Department of Housing
and Community Development (HCD)
• Convert housing to permanent or
interim housing for persons
experiencing homelessness or at risk
of homelessness
• Disproportionately impacted by and at
increased risk for medical diseases or
conditions due to the COVID-19
pandemic or other communicable
diseases
• 3rd Round due July 28th
Homekey Program
Project Location
Palomar Motel - 1160 Walnut Avenue
• 0.85 acres
• Contains u-shaped 1 & 2-
story building
• Limited-service lodging
facility
• Built in 1946
• 28 single occupant rooms
• Managers suite
• Laundry facilities
• Storage room
• 0.32 acres
• Unimproved
• Month-to-month lease for
vehicle storage
Property Information
Existing Conditions
• Exterior
• Built in 1946
• Approx. 10,000 sq. ft.
• In Good Condition
• Structurally Sound
• Code Required Improvements
• ADA Required Improvements
• Interior
• Average unit size = 330 sq ft.
• Functioning Fixtures in Good Condition
Existing Conditions
• Acquisition
• Appraisals
• Environmental Site
Assessment
• Facility Needs Assessment
• Existing Conditions Report
• Historical
• Conversion
• Phase 1 - Building
Assessments
• Regulatory Requirements
• Architectural and Structural
Assessment
• Obtain a Budget Level Cost
Estimate
Due Diligence
Proposed Improvements
• Phase I
• 55-year covenant
• Serve homeless or formerly
homeless below 51% AMI
• Provide on-site supportive
services
• Phase II
• Safe Parking Lot
• Other housing services for
homeless individuals
Project Terms
Empower individuals & families ● Build community resilience ● Promote housing opportunities ● Enhance quality of life Recommendation
A. Authorize City Manager to execute all documents to:
1. Negotiate purchase of Palomar Motel
2. Dedicate $65,996.64 in ERA2 funds for good faith deposit
3. Utilize up to $13m in ARPA funds
• Up to $7m for acquisition
• Up to $6m for rehabilitation (if needed)
B. Approve submittal of Homekey Program Application for up to $7m, or the determined eligibility amount,
whichever is greater
Homekey
Awards
Announced
October
2023
Council
Update &
Necessary
Actions
November
2023
Complete
RenovationsLate 2024 OccupancyEarly/Mid
2025
Anticipated Timeline