Agenda Item No: L.3
AGENDA REPORT
DATE: February 4, 2025
TO: Mayor and Council
FROM: David Gassaway, City Manager
SUBJECT: Resolution 2025-25 HD Joint Application with Danco for Homekey+ Funding
Authorizing the City of Fairfield to Submit a Joint Application with the Danco Group to Apply for Homekey+ Funding to Build Permanent Supportive Housing
Funding Source: N/A
Contact: LaTanya Terrones, (707) 428-7454
RECOMMENDED ACTION
Adopt resolution.
STATEMENT OF ISSUE
Adopt a resolution to submit an application to the California Department of Housing and Community Development (HCD) for the Homekey + program in collaboration with Danco (developer) to develop approximately 93 units of Permanent Supportive Housing (PSH).
DISCUSSION
HCD announced the availability of $2.145 billion in Homekey+ funding through a Notice of Funding Availability (NOFA) pro cess. The Homekey+ program is a statewide initiative aimed at developing PSH for veterans and individuals with mental health or substance use disorders who are at risk of or currently experiencing homelessness.
Homekey+ provides local public agencies wit h funding to acquire motels and various other housing types to enhance their community’s capacity to address homelessness. Funds can be utilized for property acquisition, rehabilitation, conversion of non -residential buildings to residential use, master le asing, and purchasing affordability covenants and restrictions for housing units.
PSH is affordable housing that offers housing and support services to individuals who are homeless or at risk of becoming homeless. It is designed to help residents develop independent living skills and connect with community services.
In partnership with Danco, the City of Fairfield is applying for Homekey+ funding to acquire and rehabilitate the SureStay Hotel located at 3331 N. Texas St., Fairfield, CA 94533. This project will serve as PSH for up to 93 households who are experiencing or at risk of homelessness and who face behavioral health challenges. At least 10 units will be designated for homeless veterans. All PSH projects are required to follow the Housing First model, which eliminates preconditions and barriers to obtaining or maintaining housing and ensures rapid access to permanent housing solutions.
The proposed project includes renovating and converting the existing three -story, 100 -room hotel into single -room occupancy PSH units. Each unit will feature a kitchenette to support independent living. Additional elements of the project include:
Accessibility: A minimum of 15% of units will include mobility -accessible features, and 10% will feature accessibility components for persons with hearing or vision impairments.
On-site amenities: The project includes offices, community spaces, and outdoor amenities such as a pool, dog run, smoking area, and a community garden.
The total estimated cost for the project is $26,892,954. The City and Danco plan to obtain up to $22,500,000 through the Homekey+ program. The City will contribute $1,000,000 from the Local Housing Trust Fund (LHTF) and $535,541 from the Prohousing Incentive Program (PIP) funds received from the State.
This project represents a significant step forward in addressing homelessness within our community by providing sustainable, supportive housing for individuals and families in need.
FINANCIAL IMPACT
N/A
PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
N/A
ALTERNATIVE ACTION
The council may decide not to approve the resolution; however, doing so will prohibit the City and its partners from applying for the Homekey+ Program to develop Permanent Supportive Housing for the homeless community.
COORDINATED WITH
N/A
STAFF CONTACT
LaTanya Terrones
(707) 428-7454
[email protected]
ATTACHMENTS
Attachment 2: Proposed Resolution