Agenda Item No: L.1
AGENDA REPORT
DATE: March 4, 2025
TO: Fairfield Housing Authority Chair and Commissioners
FROM: David Gassaway, Executive Director
SUBJECT: Resolution HA2025-01 HD Housing Assistance Payment and Contract with Danco
Authorizing the Executive Director of the City of Fairfield Housing Authority to Execute an Agreement to Enter into a Housing Assistance Payment and a Housing Assistance Payment Contract with Fairfield Texas Street LP for 50 Project Based Vouchers to Create Permanent Supportive Housing at 3331 North Texas Street in the City of Fairfield
Funding Source: N/A
Contact: Tanya Tran, (707) 428-7391
RECOMMENDED ACTION
Adopt resolution.
STATEMENT OF ISSUE
Fairfield Texas Street LP (Danco) executed a Purchase and Sale Agreement (PSA) with the owners of the Sure Stay Motel at 3331 North Texas Street to convert the property into 51 units of Permanent Supportive Housing. Danco requests that the City provide Pr oject Based Vouchers (PBVs) for rental assistance to the homeless population intended for the site. If the City provides the PBVs, the executive director must execute an agreement to enter into a Housing Assistance Payment (AHAP) with the developer to sec ure financing before construction and a Housing Assistance Payment (HAP) contract after construction completion before lease -up. The 50 PBVs requested for this project will help secure state HomeKey financing, enhance the affordability of housing units, and create Permanent Supportive Housing for homeless households experiencing behavioral health conditions.
DISCUSSION
Background
On January 16, 2025, Fairfield Housing Authority (FHA) issued a request for proposals (RFP) to solicit eligible proposals from developers who needed Project Based Section 8 Vouchers to create Permanent Supportive Housing for behavioral health clients who are homeless or at risk of
homelessness that may be veterans, young people, elderly or other individuals. Proposals were due no later than February 10, 2025, by 5 pm. Per the RFP, late proposals received after that deadline would be rejected.
On February 10, by 5 pm, FHA received one proposal from Danco. On February 12, 2025, FHA received another proposal from Enough Housing L LC. FHA rejected Enough Housing LLC's proposal based on the RFP provisions.
Application and Review Process
A review panel of three City employees from the City Manager's Office, FHA, and Parks & Recreation ranked and reviewed the proposal(s) based on the following criteria:
Qualifications and Experience
Commitment to providing Long-term Affordable Housing
Availability of units to serve homeless, at risk of homelessness families with extremely low incomes, and disabled homeless or at risk of homeless veterans Bedroom Count
Readiness for immediate move-in
Deconcentration
Capacity of Team
Bonus- Proximity of site to neighborhood services and health care facility.
The final score for the eligible proposal was as follows:
Proposer Score
Danco 81
Danco proposes to convert the 100 -unit Sure Stay Motel into 51 units, 50 of which will be Permanent Supportive Housing units funded by a mix of City and HomeKey + funds. The units will serve Solano County behavioral health clients who are homeless or at risk of homelessness.
All 50 units will be studios of about 500 square feet. A minimum of 15% of the completed units will include features accessible to persons with mobility disabilities, and a minimum of 10% will consist of features accessible to persons with hearing or vision disabilities. Outdoor amenities may include but are not limited to, a pool, dog run, smoking area, small community garden, pickle or basketball court, and a barbeque area. Indoor amenities will include kitchenettes in each unit, lounges, an elevator, an exercise room, a laundry room, a manager's office, a security office, and a large community room.
If the project successfully obtains HomeKey financing, construction will be completed within 14 months of the HomeKey award. The estimated date of availability of units is May 1, 2026.
The PBV award is conditioned upon the successful completion of an environmental review. Subsidy voucher payments will be determined prior to executing the Housing Assistance Payment Agreement (HAP). The amount shall be the lesser of the FHA payment standard, fair market rent established by the U.S. Department of Housing and Urban Development (HUD), or a rent comparison study of comparable market-rate apartments.
The recommended allocation reflects the City's commitment to addressing homelessness and expanding affordable housing opportunities to extremely low-income residents.
FINANCIAL IMPACT
There is no financial or administrative impact on the FHA. The estimated annual cost of housing assistance payments does not change. FHA will not incur additional liability or financial exposure if the Project-Based Vouchers are awarded.
PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
An RFP was issued on January 16, 2025. The RFP sought proposals from qualified applicants for Project-Based Vouchers with Multi -Unit Residential Projects servicing populations with specific needs.
Notices were published in the Dail y Republic Newspaper and on the City of Fairfield website to alert the public of the RFP. Notices also went out to a list of developers who expressed interest or developed projects in the City of Fairfield.
ALTERNATIVE ACTION
The council may choose not to approve the resolution to award PBVs to Danco. However, this decision could result in HUD recapturing unspent prior-year funds. It would also result in a missed opportunity to support the development of permanent supportive housing for homeless individuals.
COORDINATED WITH
N/A
STAFF CONTACT
Tanya Tran, Housing Division Manager
(707) 428-7391
[email protected]
ATTACHMENTS
Attachment 2: Proposed Resolution
Attachment 3: Proposed Agreement