Form Rev 3/6/2023
RESOLUTION NO. __________
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA AUTHORIZING THE CITY MAN AGER OR
DESIGNEE TO NEGOTIATE PURCHASE TERMS AND
CONDITIONS, DEDICATE REMAINING EMERGENCY
RENTAL ASSISTANCE 2 FUNDS, AND EXECUTE ALL
DOCUMENTS NECESSARY TO ACQUIRE AND
REHABILITATE THE PALOMAR MOTEL LOCATED AT 1160
WALNUT AVENUE FOR CONVERSION INTO PERMANENT
SUPPORTIVE HOUSING
WHEREAS, the City of Chula Vista (the “City”) continues to look for housing solutions for unsheltered individuals, including those that require ongoing support services; and
WHEREAS, the owner and current operator of the Palomar Motel located at 1160 Walnut Avenue, Chula Vista 91911, has expressed a desire to sell the property to the City to assist in meeting housing goals for unsheltered individuals; and
WHEREAS, permanent supportive housing (PSH) combines affordable housing assistance with voluntary support services such as health and mental health care to address the needs of chronically homeless people; and
WHEREAS, the 2023 Regional Point in Time Count identified 318 unsheltered individuals within the City, of which it is estimated up to 40% may suffer from mental health disorders, and currently only 30 beds of PSH are being provided in the South Bay region out of 6,865 beds reported in the San Diego County region; and
WHEREAS, PSH provides needed long-term housing to individuals at or below 50% area median income (very -low income), which is a difficult and needed housing segment to meet Regional Housing Needs Assessment goals in the 2021 -2029 Chula Vista Housing Element and meets the requirements of various funding sources; and
WHEREAS, the City desires to commit funding and authorize the acquisition and rehabilitation of 31-units at the Palomar Motel for PSH (the “Project”); and
WHEREAS, in February 2023 the City received a final reallocation of Emergency Rental Assistance 2 (ERA2) Program funds from the U.S. Treasury in the amount of $67,401.64, of which the City has $65,996.64 remaining which were appropriated on May 23, 2023 by Resolution 2023- 061; and
WHEREAS, the City desires to utilize the remaining ERA2 funds for an eligible use to assist very low-income families as a good faith down payment towards the purchase of the Project; and
Resolution No.
WHEREAS, the American Recovery Program Act (ARPA) provided eligible jurisdictions with funds to bolster their response to the COVID -19 emergency and its economic impacts , including an allowing use to a ddress systemic public health and economic challenges that have contributed to the inequal impact of the pandemic on certain populations; and
WHEREAS, the City desires to dedicate up to $13 million in ARPA funds towards the acquisition and rehabilitation of the Project; and
WHEREAS, the City will continue to seek grant o pportunities such as the Homekey Program in order to rehabilitate and operate the PSH; and
WHEREAS, the conversion of the motel is a significant step forward in the City’s effort to address homelessness through supportive assistance that combines on-going rental assistance with individualized services.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it authorizes the City Manager, or designee, to negotiate purchase terms and conditions, dedicate $65,996.64 in ERA2 funds as a good faith down payment, up to $ 13 million in ARPA funds for acquisition and rehabilitation, and execute all documents necessary to purchase and rehabilitate the Palomar Motel located at 1160 Walnut Avenue, Chula Vista 91911 to convert the property for 31-units of Permanent Supportive Housing.
Presented by Approved as to form by
Stacey Kurz Jill D.S. Maland
Director of Housing and Homeless Services Lounsbery Ferguson Altona & Peak Acting City Attorney