Agenda Item A.5
CPMS CONSENT CALENDAR
Meeting Date: February 7, 2023
TO: Mayor and Councilmembers
FROM: Jaime A. Valdez, Neighborhood Services Director
CONTACT: Shanna Dawson, Management Analyst
Chuck Flacks, Homelessness Services Coordinator
SUBJECT: Funding Assistance for Buena Tierra Permanent Supportive Housing Project
RECOMMENDATION:
Authorize the City Manager to enter into a Grant Agreement with the Housing Authority of the County of Santa Barbara for the Buena Tierra Permanent Supportive Housing Project in an amount not to exceed $600,000.
BACKGROUND:
In the summer of 2020, the Housing Authority of the County of Santa Barbara (HASBARCO), with the support of the C ity of Goleta and County of Santa Barbara, pursued State of California inaugural Homekey (1.0) grant funds to convert a hotel/motel in Santa Barbara County into transitional and permanent supportive housing with on-site wrap-around services. While the application to acquire the former Super 8 motel in Old Town was ultimately unsuccessful for that initial funding round, there was optimism among the partners to continue to pursue Homekey funding in the future.
On April 20, 2021, the City Council adopted the City’s first Homelessness Strategic Plan.
The goal of the Homelessness Strategic Plan is to provide important direction and clarity around needs, service gaps, and priorities in order to make effective and strategic funding decisions that serve both the existing homeless population and those at risk of becoming homeless. The Plan helps guide and coordinate efforts to prevent and address homelessness within the City of Goleta, and particularly funding decisions related to homelessness initiatives and grants for non -profit service providers that focus on the homeless. One of the four overarching goals is to increase the supply of Transitional Housing, Permanent Supportive Housing, and Emergency Housing.
In December of 2021, HASBARCO informed the City of Goleta and County of Santa Barbara of its plans to pursue Homekey 2.0 funds for a permanent supportive housing project on the site of the former Super 8 motel in Old Town Goleta. HASBARCO informed City staff that $600,000 was the funding gap contribution that had been identified as part 1 Meeting Date: February 7, 2023
of the Homekey 2.0 application submittal. Due to the timing of other agency actions and the deadline to apply for the grant funds, City staff included the HASBARCO request as part of the American Rescue Plan Act (ARPA) Update and Proposed ARPA Spending Plan workshop scheduled for January 5, 2022.
On January 5, 2022, the City Council authorized the City Manager to submit a letter of acknowledgement and support for HASBARCO’s application for the State of California’s Homekey (2.0) Program. The City’s subsequent letter to the California Department of Housing and Community Development on behalf of HASBARCO provided for a $600,000.00 reservation contingent on the successful application for the Homekey 2.0 Program (Attachment 1).
Similarly, on January 11, 2022, HASBARCO secured a $3,047,501 funding commitment from the County of Santa Barbara for costs associated with the acquisition, construction, and operations of the Project contingent on HASBARCO’s successful application to the State of California Homekey 2.0 Program.
DISCUSSION:
On April 13, 2022, HASBARCO successfully secured over $18 million in funding from the State of California’s Homekey 2.0 Program for costs associa ted with the acquisition, construction, and operations of the former Super 8 motel.
The permanent supportive housing project has since been named “Buena Tierra” (Good Land in Spanish ). It will provide 59 permanent supportive housing units for people experiencing, or at risk of, homelessness, one unit for an onsite property manager, and the five remaining units would be converted to communal spaces that will provide on-site wrap-around supportive services as well as a place to have events for tenants such as community dinners and health clinics. The project began construction in August of 2022 and is expected to be complete by the end of 2023 . The attached agreement formally documents the City Council’s commitment, and if approved, will serve as the mechanism to provide the $600,000.00 in funding to HASBARCO for the Buena Tierra Project (Attachment 2).
GOLETA STRATEGIC PLAN:
City-Wide Strategy : 2—Support Community Vitality and Enhanced Recreational Opportunities.
Strategic Goal : 2.1—Provide community development for neighborhoods and social welfare assistance for those in need.
FISCAL IMPACTS:
No impact. The $600,000.00 commitment to HASBARCO for the Buena Tierra Project has already been included in the FY 2022/23 adopted budget in 423-60-6200-54013 Support to Other Agencies – Other.
2 Meeting Date: February 7, 2023
ALTERNATIVES:
No other feasible alternatives exist at this time.
Reviewed By: Legal Review By: Approved By:
___________________ ___________________ _________________ Kristine Schmidt Megan Garibaldi Robert Nisbet
Assistant City Manager City Attorney City Manager
ATTACHMENTS:
1. City of Goleta Letter of Acknowledgement and Support for the Housing Authority of the County of Santa Barbara’s Application for the State of California’s Homekey (2.0) Program, Dated January 11, 2022
2. Grant Agreement by and between the City of Goleta and the Housing Authority of the County of Santa Barbara
3 ATTACHMENT 1
City of Goleta Letter of Acknowledgement and Support for the Housing Authority of the County of Santa Barbara’s Application for the State of California’s Homekey (2.0) Program, Dated January 11, 2022 4 CIT Y COUNCI L
Paula Perotte
Mayor
Stuart Kasd in
Mayor Pro Tempore
Roger S. Aceves
Councilmember
James K yriaco
Councilmember
Kyle Richards
Councilmember
CITY M ANAGER
Michelle G reene
January 11, 2022
California Department of
Housing and Community Development
2020 West El Camino Avenue
Sacramento, CA 95833
RE: Housing Authority of the County of Santa Barbara State Homekey Round 2 (Homekey 2.0) Program Application for
Property Acquisition Updated Letter of Acknowledgement— Super 8 Motel, 6021 Hollister Ave.,Goleta, CA. (Project)
To Whom It May Concern:
In a letter of acknowledgement dated August 4, 2020, the City of Goleta made clear its support of a Homekey “Round 1” application for a project at the Super 8 Motel, 6021 Hollister Ave., Goleta, CA . W hile the Housing Authority of the County of Santa Barbara (HASBARCO) was unsuccessful in securing that site in 2020, the opportunity to pursue that site for Homekey 2.0 is again being pursued and HASBARCO currently has the property in escrow.
As was stated in the aforementioned letter, the City of Goleta (City) has a history of regional partnership with HASBARCO. The City also recognizes the regional impacts of homelessness and has worked over the past several years to address homelessness within Goleta and the surrounding region. Because of this, the City continues to support HASBARCO in its attempt to s uccessfully acquire and convert loc al motel/hotel space into transitional and permanent supportive housing through the State of California’s Homekey Program.
The City understands that the most appropriate project to serve the needs of people experiencing homelessness in Santa Barbara County is the conversion of the Super 8 Motel located in the city of Goleta. This property fulfills many critical requirements of the Homekey Program, including but not limited to excellent access to public transportation and elevator access.
DocuSign Envelope ID: E55CBAEF-4FB9-49B8-BC40-F5728C3BE5FF 5 Homekey 2.0 HCD Letter
January 11, 2022
Important to the Cit y is t he fact that this conversion would support a navigation center and access to wrap-around support services such as mental health appointments, minor healthcare, and counseling sessions. The City adopted its first Homelessness Strategic Plan in April o f 2021 , which identifies the need for services for people experiencing homelessness in and around Goleta. This Plan also establishes a goal for a navigation center and permanent supportive housing in Goleta. This project would help fulfill those goals.
The property is located in an area that has been zoned as suitable for an emergency shelter with only a minor conditional use permit. Moreover, and more ap plicably, projects that utilize money from Homekey Round 2 funds, regardless of whether they also utilize other funding sources, may be eligible for the CEQA exemption. (Health & Safety Code, § 50675.1.4.)
As such, based on the CE QA exemption in AB 140 for Home key Round 2 projects, “All Homekey Round 2 projects are eligible for such streamlining and are “d eemed consistent and in conformity with any applicabl e local plan, standard, or requirement, and any applicable coastal plan, local or otherwise, and allowed as a permitted use, within the zone in which the structure is located, and shall not be subject to a conditional use permit, discretionary permit, or a ny other discretionary reviews or approvals.” (Health & Safety Code, § 50675.1.3, subd. (h).)”1
While there are fiscal impacts to the City , the additional services for the region’s homeless population exceed the financial costs to the City and, as such, the City of Goleta would support this project moving forward and is prepared to partner with the regional applicants and service providers.
On January 5, 2022, the City Council of the City of Goleta approved a reservation of $600,000 in funds from, but not limited to, the City’s American Rescue Plan Act of 2021 (ARPA) allocation to the Project. The City’s funding reservation for the Project comprises the City’s local capital match contingent on a n awar d of H omekey 2.0 funding. The funds will be set aside for the Project to allow HASBARCO to complete the submission of documents to State HCD in order to receive the State’s Stand ard Agreement to allow for th e disbursement of State Homekey 2.0 funding for this Project.
HASBARCO will be respo nsible for completing the State’s competitive Homekey 2.0 Project application and securing all necessary supportive service agreements.
Sincerely,
Michelle Greene
City Manager
1 https://homekey.hcd.ca.gov/sites/default/files/2021-09/CEQA%20Exemption%20in%20AB%20140%20- %20Questions%20%26%20Answers.pdf
DocuSign Envelope ID: E55CBAEF-4FB9-49B8-BC40-F5728C3BE5FF 6 ATTACHMENT 2
Grant Agreement by and between the City of Goleta
and the Housing Authority of the County of Santa Barbara 7 GRANT AGREEMENT
BY AND BETWEEN THE CITY OF GOLETA AND
HOUSING AUTHORITY OF THE COUNTY OF SANTA BARBARA
This Grant Agreement (“AGREEMENT”) is mad e as of the ____ day of ________________, 2023, by and between the City of Goleta , a California municipal corporation, hereinafter referred to as “CITY,” and Housing Authority of the County of Santa Barbara, a public body, corporate and politic hereinafter referred to as “HASBARCO.” The CITY and HASBARCO shall, from time to time, be referred to individually as “Party” and collectively as “Parties.”
WHEREAS, HASBARCO is the owner of a former 65- room motel located at 6021 Hollister Avenue in Goleta (“PREMISES”);
WHEREAS, HASBARCO desires to convert the former motel to a permanent supportive housing facility ( “FACILITY”) on the PREMISES to serve individual experiencing or at risk of experiencing homelessness in Goleta and the greater community;
WHEREAS, HASBARCO, on January 11, 2022 secured a $3,047,501 funding commitment from the County of San ta Barbara for costs associated with the acquisition, construction , and operations of the FACILITY contingent on HASBARCO’s successful application to the State of California Homekey Program;
WHEREAS, HASBARCO, in part nership with the County of Santa Barbara and CITY, on April 13, 2022 successfully secu red over $18 million in funding from the State of California’ s Home key 2.0 Program for costs associated with the acquisition, construction, and operations of the FACILITY;
WHEREAS, the FACILITY will provide 59 permanent supportive housing units for people experiencing, or at risk of, homelessness, one unit for an onsite property manager, and the five remaining units would be converted to communal spaces that will provide on- site wrap -around supportive services as well as a pl ace to have events for tenants such as community dinners and health clinics;
WHEREAS, in order to operate the FACILITY , HASBARCO has secured funds to serve its residents;
WHEREAS, the CITY’s adopted Homelessness Strategic Plan identified a lack of com prehensive supportive services, and shortage of permanent supportive housing have led to increasing numbers of chronically homeless individuals at the state and local level, including Goleta, and the FACILITY constitutes significant progress in addressing homelessness in Goleta;
WHEREAS, HASBARCO has secured nearly the entirety of the funds needed to acquire, cons truct, and operate the FACILITY through the S tate of California’ s HomeKey Program and the County of Santa Barbara’s funding commitment; and
DocuSign Envelope ID: 67D1566C-3DFF-49DA-9810-95C7690AB2B1 8 W HEREAS, in late 2021, HASBARCO representatives requested from the City Council financial assistance for the acquisition of the FACILITY; and
WHEREAS, on January 5, 2022, the City Council of the City o f Goleta authorized the City Manager to submit a reservation letter in the amount of $600,000 to HASBARCO contingent on the successful application for the State of California Homekey Program;
WHEREAS, HASBARCO is requesting the $600,000 that the City Council authorized for the FACILITY after its the successf ul application to the State of California Homekey Program.
TERMS OF AGREEMNT
In consideration of the mutual covenants and conditions set forth herein, the Parties agree as follows:
1. AMOUNT: CITY will deliver $600,000 (“FUNDS”) to the HASBARCO within 15 days of HASBARCO’s written request.
2. U SE OF FUNDS : F UNDS remitted to HASBARCO by CITY in accordance with this AGREE MENT must be u sed exclusively for the acquisition costs related to the FACILITY for the provision of permanent supportive housing for individuals experiencing or at risk of experiencing homelessness within Goleta and the larger community.
3. INDEMNIFICATION: HASBARCO agrees to defend, indemnify and hold harmless CITY, its officers, a gents, and employees from and against loss, personal injury, prop erty damages, claims, suits, proceedings (including reasonable attorney’s fees), judgments or liabilities arising from negligent or willful acts or omissions of HASBARCO , its offic ers, agents, employees, and contractors occasioned by or in connection with the use of the FUNDS or the PREMISES, whether such loss, perso nal injury, or property damage is sustained by HASBARCO , its officers, agents, or employees, or any other person.
4. VERIFICATION OF EXPENDITURES : HASBARCO agrees to provide to CITY, upon request, a detailed accounting of the expenditure of the FUNDS.
5. NOTICES: All notices must be in writing and are deemed to have been given on the date delivered, if personally delivered, or if mailed, then on the second business day following the date on which it is mailed, by certified or registered mail, postage prepaid to the address specified below, or t o such other address designated by the Party in writing:
To CITY: City Manager
City of Goleta
1 30 Cremona Dr, Ste B
Goleta, CA 93117
DocuSign Envelope ID: 67D1566C-3DFF-49DA-9810-95C7690AB2B1 9 To HASBARCO: Executive Director
Housing Authority of the County of Santa Barbara
815 West Ocean Avenue
Lompoc, CA 93436
6. COMPLIANCE WITH THE LAW : HASBARCO must comply with all laws, rules, and regulations relating to the use of the PREMISES and use of the FUNDS.
7. ASSIGMENT: HASBARCO must not assign this AGREEMENT or any interest, or any part thereof, or any right, or privilege appurtenant thereto without the written consent of CITY. Any attempt to assign this AGREEMENT without prior written approval by CITY must be void and without legal effect.
8. AMENDMENTS: The Parties acknowledge that circumstances may arise which may call for or require mutual good faith negotiations for the amendment of this AGREEMENT. Without limitati on due to enumeration, the Parties agree to meet and confer regarding the possible mutual amendment of this AGR EEMENT within thirty (30) calendar days of the written notice by one party to the other party that an amendment is desired.
9. COUNTERPARTS AND ELECTRONIC/FACSIMILE SIGNATURE S: This Agreement may be executed in several counterparts, which may be facsimile or electronic copies. Each counterpart is fully effective as an original, and together constitutes one and the same instrument.
IN WITNESS WHEREOF, HASBARCO and CITY have executed this AGREEMENT by the respective authorized officers as set forth below.
THE CITY OF GOLETA
By:______________________________ Date:____________________ Robert Nisbet
City Manager
ATTEST:
_______________________________ Date:____________________ Deborah Lopez
City Clerk
DocuSign Envelope ID: 67D1566C-3DFF-49DA-9810-95C7690AB2B1 10 APPROVED AS TO FORM:
MEGAN GARIBALDI, CITY ATTORNEY
_______________________________ Date:____________________ Winnie Cai, Assistant City Attorney
HOUSING AUTHORITY OF THE COUNTY OF SANTA BARBARA:
By:______________________________ Date:____________________ Robert P. Havlicek Jr., Executive Director
DocuSign Envelope ID: 67D1566C-3DFF-49DA-9810-95C7690AB2B1 1/30/2023
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