On July 13, 2021, the Council approved the Let’s House Hayward (LHH) homelessness reduction strategic plan.1 It creates a strategic framework that better positions the City to address homelessness and seek funding for projects identified and prioritized through this process. The LHH plan outlines several strategies and projects that directly align with the City’s applying for Homekey funding.
On October 20, 2021, the City released a Request for Information (RFI) seeking potential partners and projects for the possible submittal of future funding applications for the State HCD Homekey program. Staff conducted an in-depth assessment of all responses received and identified a suite of preliminary projects for review and discussion by the Homelessness- Housing Task Force (HHTF). On December 16, 2021, staff presented three projects to the HHTF.2 Members of the HHTF unanimously recommended these projects be presented to the full Council for approval and inclusion in the City of Hayward’s Homekey Grant Application, due by January 31, 2022.
Since the December 16th HHTF meeting, staff have continued to meet with development partners and the State to discuss project feasibility and one of the three previously recommended projects was withdrawn to allow more time to identify sufficient operating funds for a future round of Homekey. As a result, staff recommends the following two remaining projects for Council approval and inclusion in the City of Hayward’s Homekey Grant Application:
1. Project Reclamation Regional Scattered Site Program, in partnership with BACS and the Cities of Livermore and Union City; and
2. Tiny Homes Village at South Hayward Parish, in partnership with Firm Foundation Community Housing (FFCH).
BACKGROUND
Homekey Program
HCD created the Homekey program as an opportunity for local public agencies to purchase motels and other housing types to increase their communities’ capacity to respond to the COVID-19 pandemic. The program’s purpose was to expand and diversify housing options for homeless persons at high-risk for serious illness and impacted by COVID-19. Cities, counties, or other local public entities, including housing authorities or federally recognized tribal governments within California, were eligible to apply independently or jointly as the lead applicant with a non-profit or a for-profit corporation. Since the onset of the COVID-19 pandemic, there have been two rounds of Homekey funding; Homekey Round 1 and Homekey Round 2.
1 July 13, 2021 meeting of the Hayward City Council:
https://hayward.legistar.com/LegislationDetail.aspx?ID=5028014&GUID=E5369F11-C504-413E-B317- E2797DF45328&Options=&Search=
2 December 16, 2021 meeting of the Homelessness-Housing Task Force:
https://hayward.legistar.com/LegislationDetail.aspx?ID=5360310&GUID=71CA4C4F-CC27-410E-AEDE- 27F03B400C19&Options=&Search=
On September 9, 2021, HCD announced approximately $1.45 billion in Homekey Round 2 available funds. Homekey Round 2 continues the statewide effort to sustain and rapidly expand housing for persons experiencing homelessness or at risk of homelessness, and who are, thereby, inherently impacted by or at increased risk for medical diseases or conditions due to the COVID-19 pandemic.
Homekey Round 2 presents significant funding and programmatic changes from Homekey Round 1. The complete Notice of Funding Availability (NOFA) can be found online on the HCD website.3 Key elements of the Homekey Round 2 funding available include:
Capital Award and Required Local Match: HCD will award up to $200,000 per unit with no required capital match, unless capital costs exceed the maximum award. Operating Subsidy: HCD will award up to three (3) years of operating subsidy of no more than $1,400/unit/month with a local commitment of four (4) years of operating subsidy, or HCD will award up to two (2) years of operating subsidy of up to $1,400/unit/month with a local commitment of three (3) years of operating subsidy. Timely Submission Bonus: HCD will award an additional $10,000 per unit as a bonus award for each Project with a timely submission of a complete application to the Department by January 31, 2022.
Expedited Occupancy Bonus: HCD will award $10,000 per unit as a conditional bonus amount for projects able to reach full occupancy within eight (8) months of acquisition.
Geographic Funding Allocation: The San Francisco Bay Area (comprised of the counties of Alameda, Contra Costa, Marin, Napa, San Francisco, San Mateo, Santa Clara, Solano, and Sonoma) has a reserved allocation of approximately $199 million.
HCD has established a four-month priority application period from the release date of the Homekey application in late September through January 31, 2022. All applications must be submitted by May 2, 2022. In order to receive the timely submission bonus, staff intends to submit any approved Homekey projects by the January 31, 2022, submission deadline.
Homekey projects must be submitted by the local jurisdiction in which projects are located; it is not possible for nonprofits, hotels, development partners, or others to directly submit projects for Homekey funding.
Let’s House Hayward Strategic Plan for Reducing Homelessness On July 13, 2021, the Council approved the LHH strategic plan.4 The LHH plan synthesizes community, Council, and staff input collected through listening sessions, community forums, focus groups, and interviews conducted from October 2020 through June 2021. The LHH plan begins with a comprehensive system and needs assessment that looks at the scope of homelessness and who experiences homelessness in Hayward, resources and services that are currently available in Hayward, and current gaps in resources and services. It then details
3 https://homekey.hcd.ca.gov/sites/default/files/2021-09/NOFA_Homekey_0.pdf 4 July 13, 2021 meeting of the Hayward City Council:
https://hayward.legistar.com/LegislationDetail.aspx?ID=5028014&GUID=E5369F11-C504-413E-B317- E2797DF45328&Options=&Search=
the overarching goals for reducing homelessness in Hayward and the strategies and action steps required to achieve those goals.
The LHH plan was developed through best-practices research and community engagement with a lens for racial equity and empowering individuals and families experiencing homelessness. It creates a strategic framework that better positions the City to address homelessness and seek funding for projects identified and prioritized through this process.
Applying for and being awarded Homekey funds will help the City accomplish the several strategies and projects in the LHH plan including:
Strategy 1.2: Develop Funding and Evaluation Strategy Reflecting Community Priorities Identified in this Strategic Plan
Program 1.2a: Conduct further research on different revenue options, including state and federal funding and private philanthropy and apply for funding that aligns with Strategic Plan action steps.
Strategy 3.2: Prioritize the Development of Housing Targeted to People Experiencing Homelessness
Activity 3.2c: Continue leveraging partnerships between non-profit housing developers, County, and regional jurisdictions to support the creation of hotel conversion projects by community-based entities.
Activity 3.2d: Continue to support affordable housing projects that utilize innovative affordable housing strategies (i.e. tiny homes, factory built housing, and other models) and encourage developers to incorporate individuals with lived experience in the process.
Alameda County HOME-ARP funding
On August 25, 2021, ahead of the release of the Homekey Round 2 NOFA, the County released a Request for Proposals (RFP) seeking to identify City-sponsored homeless housing projects that would be eligible to submit to HCD for Homekey funding. Through this RFP, the County has made available approximately $12 million in HOME Investment Partnership funding to act as match for City-sponsored Homekey eligible projects. All cities within the Alameda County HOME Consortium (except for Berkeley and Oakland, which receive their own allocation of federal HOME Investment Partnership funding and are not part of the Consortium) were eligible to apply for these County matching funds.
The City submitted two projects for Alameda County match funding: hotel acquisition and conversion to permanent housing and scattered-site deeply affordable housing. Following submission and results from the City’s RFI for eligible projects, staff determined that only the scattered site project would be appropriate for HOME-ARP funding. During a January 14th, 2021 meeting with City and County staff, the County identified four projects that would be receiving HOME-ARP funds, including the City of Hayward’s scattered site program, discussed in detail below. On January 19, 2021, County HCD staff notified the City that they will be providing a letter of conditional commitment for up to $1,500,000 to provide operating funds at the scattered site locations.
City of Hayward Request for Information (RFI)
On October 20, 2021, the City released a RFI for projects and properties to house people experiencing homelessness through the Homekey program. The City received eleven (11) responses to the RFI: six submissions from hotel owners to sell their properties for the purpose of creating permanent housing, six submissions from potential sponsors proposing acquisition or construction of eight different projects, and one submission from a potential sponsor for development partnership.
After the RFI period closed on November 5, 2021, staff reviewed and evaluated all responses received. Through this initial review, staff determined that applicants with both a developer and property identified were the most competitive for Homekey funding given the accelerated nature of the Homekey 2.0 funding timeline and staff’s limited capacity to manage an acquisition and development project. A complete discussion of the RFI and staff review criteria can be found in the December 16, 2021 Homelessness-Housing Task Force (HHTF) staff report.5
Homelessness-Housing Task Force
Following extensive review and analysis of RFI responses received, staff initially identified four projects for HHTF review and recommendation for Council approval and inclusion in the City of Hayward’s Homekey Grant Application:
1. Apartment complex acquisition project, in partnership with BACS;
2. Project Reclamation Regional Scattered Site Program, in partnership with BACS and the Cities of Livermore and Union City; and
3. Tiny Homes Village at South Hayward Parish, in partnership with Firm Foundation Community Housing (FFCH).
4. Hotel conversion project with re-entry services, in partnership with Creating Restorative Opportunities & Programs (CROP) and BACS.
CROP withdrew the hotel conversion project with re-entry services just prior to the HHTF meeting due to a lack of capital funding required for building improvements on potential Hayward sites.
The HHTF supported moving forward with the other three projects presented on December 16, 2021. Additionally, members of the HHTF directed staff to explore another project for consideration, a Tiny Home Village in partnership with FFCH and California State University East Bay (CSUEB) to build 12 tiny home units at Hayward First Church for CSUEB students at risk of or experiencing homelessness. For a full summary of the HHTF’s feedback, please see Attachment IV.
DISCUSSION
5 December 16, 2021 meeting of the Homelessness Housing Task Force:
https://hayward.legistar.com/LegislationDetail.aspx?ID=5360310&GUID=71CA4C4F-CC27-410E-AEDE- 27F03B400C19&Options=&Search=
Since meeting with the HHTF on December 16, 2021, staff have continued to work with development partners to prepare applications in anticipation of Council approval. One project that received HHTF approval will not be presented to Council and another that was proposed by the HHTF is not being recommended for submission to the current round of Homekey funding as explained further below:
Apartment Complex Acquisition Project in partnership with Bay Area Community Services: Since meeting with the HHTF, BACS has determined that identifying the required operating subsidy was infeasible by the Homekey Round 2 priority deadline. Staff will continue working with BACS to prepare for potential submission for Homekey Round 3 funds.
Tiny Home Village in partnership with FFCH and CSUEB: Staff held several meetings with FFCH, CSUEB, and the State to explore the Tiny Home Village project for CSUEB students experiencing homelessness. Staff recommend applying for Homekey Round 3 funds for this project, as this will provide more time to align the project with Homekey requirements, formalize the partnership with CSUEB, and identify and secure reliable long-term funding sources.
Projects for Homekey Application Submission
The following section provides a detailed analysis of the two remaining projects that staff recommend for Homekey submission. Each project was supported by the HHTF and staff recommend that the Council vote to adopt resolutions authorizing the City Manager to apply for Homekey funding for each project.6
Project 1: Project Reclamation Regional Scattered Site Program
Development Partner: BACS
Population Served: Up to 30 chronically homeless individuals
Project Description: BACS proposes to purchase and remodel up to five single-family homes to function as deeply subsidized co-living environments where each resident gets their own bedroom, shared community living spaces, and access to supportive services to meet their unique needs. The BACS Project Reclamation program has been in place since 1973 and received Homekey funding for its Oakland program in Round 1. The program was recognized by the State for its innovative use of Homekey funding. For this project, the City of Hayward would be the lead applicant in a regional application, partnering with the Cities of Livermore, Union City, and Piedmont, to increase the competitiveness of the project by broadening the regional impact and scope of acquisitions.
Location and Outreach: BACS has begun identifying homes that meet program criteria throughout Hayward. Given the target price point of the homes (approximately $900,000), the majority of prospective homes are located between Interstate 880 and Mission Boulevard. As BACS has been operating this program for several years, they have well-established outreach
6 Based on guidance from the State, the resolutions authorizing the City Manager to apply include a not-to-exceed amount that is double the actual estimated cost of the project.
strategies that they will apply to this project and will implement community-specific outreach as properties are identified. In their previous experience, BACS has not encountered opposition from community members as the projects do not include density changes or substantial construction.
Funding: For Project Reclamation, staff anticipates that the Homekey award of $200,000/unit would cover the total cost of acquisition and rehabilitation for up to five homes with no capital funding gap. County HCD has notified staff that the regional scattered-site program will receive a commitment letter for funding of up to $1,500,000 for operating costs. Staff anticipates this amount will cover the costs of operating the program; however, should the County subsidy be less than the up-to amount, the City, BACS, and partner jurisdictions will work together to adjust the number of properties being pursued to match the amount of available operating funds.
Project Strengths: Staff anticipates that the baseline Homekey award will cover the cost of acquisition and rehabilitation of five single-family homes. Therefore, there is no required capital match. Additionally, combining jurisdictions demonstrates a collaborative regional approach to providing housing opportunities and increases the number of individuals who will be served while accounting for fluctuations in the private housing market. Increasing the number of properties acquired allows for some streamlining of operational expenses, creating long-term savings for each city to re-invest in the program.
The project aligns with the City’s LHH Strategic Plan. In addition to aligning with the goals described in the Background section of this report, this project aligns with the LHH Plan’s emphasis on understanding homelessness as both a regional and local issue, providing the option for regional partnership to leverage State and County funding. Additionally, this model may be a successful tool for preventing large corporate purchases of foreclosed homes, which are then rented at market rate and preventing preservation of naturally occurring affordable housing.
Ongoing Pre-Application Items: While the Homekey NOFA includes the scattered site model as an eligible project, there are several requirements that make such projects difficult to apply for. Primarily, the NOFA requires that the applicant be able to demonstrate site control at the time of submission. It also requires that the applicant submit appraisals and physical needs assessments for each property. To meet these requirements, BACS would need to take the significant risk of purchasing the homes in advance before January 31, on the assumption of reimbursement from the State. This is a substantial barrier, both in terms of the costs to the non-profit agency and the timeline of the project. Staff and BACS have worked closely with the State to call attention to this inherent disadvantage to scattered site applications and have submitted an alternative proposal. At the time of this report writing, the State has indicated a willingness to work with BACS and staff are optimistic that a solution will be reached. Staff will not enter into an agreement with the State that requires up front purchasing of homes without a guarantee of reimbursement.
Analysis and Recommendation: The Homekey award would cover estimated capital expenses to purchase up to five single family homes in Hayward. The conditional allocation of
$1,500,000 in HOME-ARP funding from the County will cover operating costs, and staff has contingency plans in place should the County award be lower than anticipated. Staff recommends submitting the multi-jurisdictional Project Reclamation application, using vetted estimates for capital expenses and committing to identify and purchase eligible properties within a timeframe negotiated with the State.
Project 2: Tiny Homes Village at South Hayward Parish
Development Partner: Firm Foundation Community Housing (FFCH)
Population Served: 10 chronically homeless individuals
Project Description: FFCH proposes to build a Tiny Homes Village with ten units on leased property at South Hayward Parish (SHP) on Patrick Avenue. The units will be constructed off site and placed on permanent foundations in currently vacant space at SHP.
Location and Outreach: SHP currently serves as a food distribution site and as a shelter for individuals experiencing homelessness. The site is within a census tract that according to the 2019 PIT count have a medium incidence of homelessness (between 10 and 20 counted individuals). Locating permanent housing at the SHP site would be an extension of current programmatic efforts. SHP is well-established in the community and in the neighborhood and staff do not anticipate community opposition to this project. FFCH will begin preliminary outreach ahead of the January 25, 2022, City Council meeting.
Funding: Staff anticipates that the Homekey award of $200,000 per unit would cover the construction costs at the SHP site. No additional funds would be required for capital costs.
The HHTF supported staff’s recommendation to use a portion of the City’s HOME Investment Partnership Program allocation as Tenant Based Rental Assistance (TBRA) from the Department of Housing and Urban Development (HUD) to provide rental housing subsidies.
With that allocation, the project has an anticipated annual operating gap of approximately $20,000, which SHP has committed to fund.
It is important to note that, by using HOME funds for this project, the City will not be able to support other affordable development projects with HOME funds while providing rental subsidies to the SHP Tiny Home Village.
Project Strengths: Staff anticipates that the baseline Homekey award will cover the cost of construction of the tiny home units at SHP. Therefore, there is no required capital match from the City. FFCH would maintain ownership of the tiny homes while paying to lease the land on each site. Additionally, the project aligns with the City’s LHH plan strategy of supporting affordable housing projects that utilize innovative affordable housing strategies. It also promotes collaboration with the City’s faith-based partners and community service organizations.
Ongoing Pre-Application Items: Staff is working closely with FFCH to finalize the development timeline to ensure it meets the Homekey standards but does not anticipate it
impacting the application submission. Staff are also working on a National Environmental Policy Review (NEPA) that also will not impact application submission. Finally, staff is working with FFCH to establish a memorandum of understanding between the City and FFCH to outline financial obligations, indemnity, and other key implementation components, which will not impact application submission.
Analysis and Recommendation: Staff recommend applying for Homekey funding for the Tiny Home Village at SHP for individuals experiencing chronic homelessness. It is a viable Homekey project with the City’s HOME funds contributed for rental subsidies, SHP providing additional operating funds, and the Homekey award covering all capital costs. The SHP location is well-established within the community as a homeless services location and would act as an extension of existing programs.
ECONOMIC IMPACT
The City and local community have experienced adverse economic impacts related to the COVID-19 crisis, particularly as it relates to homelessness and housing instability. National data indicates increases in risk factors that lead to homelessness, including increased food insecurity and the inability to pay rent or mortgage. There is a positive economic impact from reducing homelessness and severe housing cost burden, which would be achieved through development of the recommended Homekey projects.
FISCAL IMPACT
This item has no General Fund impact. All projects that are being recommended for full Council consideration would not impact the General Fund. The SHP Tiny Home Village site would leverage the HOME special revenue fund from HUD by allocating the majority of the City’s allocation every other year to the Homekey-funded project.
STRATEGIC ROADMAP
This agenda item supports the Strategic Priority of Preserve, Protect & Produce Housing.
Specifically, this item relates to the implementation of the following projects:
2b. Implement the Homelessness Reduction Strategic Plan
8b. Apply for state housing funding to support strategic partnerships and Council priorities
PUBLIC CONTACT
Pursuing Homekey funding to support innovative, dedicated homeless housing projects was identified as a priority project in the LHH plan. The LHH plan was developed through best- practices research and community engagement with a lens for racial equity and empowering individuals and families experiencing homelessness. It creates a strategic framework that better positions the City to address homelessness and seek funding for projects identified and prioritized through this process. The LHH plan was intentionally created to identify a pipeline
of community-informed policies and programs for the City to embark upon, particularly those with expedited timelines.7
Staff are working with both BACS and FFCH to conduct project-specific outreach to the communities that will be impacted by these projects. FFCH is conducting virtual community outreach meetings in January with the SHP neighborhood and BACS will conduct targeted community outreach once properties are identified for Project Reclamation.
Staff presented to the HHTF on December 16th, 2021. During this meeting, two public comments were received. One of the comments was made on behalf of Jake Medcalf, Founder and Principal of FFCH and described FFCH’s qualifications and experience and requesting HHTF support of the Tiny Home Village at SHP project. Another comment was made by Community Services Commissioner Corina Vasaure, asking about dedicated housing for families experiencing homelessness. Neither project moving forward for Council approval this evening are suitable as options for families experiencing homelessness and more suitable for single or coupled adults. Staff will continue to explore housing options for the entire homeless community in Hayward. As part of the award of HOME-ARP funds, there will be as associated public hearing through the County. At the time of this staff report writing, the meeting details have not yet been published.
NEXT STEPS
Upon approval by the Council, staff will submit any approved Homekey applications to HCD by January 31, 2022.
Prepared by: Amy Cole-Bloom, Management Analyst II
Jessica Lobedan, Management Analyst II
Recommended by: Christina Morales, Housing Division Manager Monica Davis, Community Services Manager
Jennifer Ott, Assistant City Manager
Approved by:
__________________________________________
Kelly McAdoo
City Manager
ATTACHMENT II
Hayward City Council
RESOLUTION NO. 22- ______
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HAYWARD
AUTHORIZING JOINT APPLICATION TO AND PARTICIPATION IN THE
HOMEKEY PROGRAM FOR THE PROJECT RECLAMATION REGIONAL
SCATTERED SITE PROGRAM IN A TOTAL NOT -TO-EXCEED AMOUNT OF $28,500,000
WHEREAS, the State of California Department of Housing and Community Development (“Department”) has issued a Notice of Funding Availability, dated September 9, 2021 (“NOFA”), for the Homekey Pro gram (“Homekey” or “Program”). The Department has issued the NOFA for Homekey grant funds pursuant to Health and Safety Code section 50675.1.3 (Assem. Bill No. 140 (2021-2022 Reg. Sess.), § 20.); and
WHEREAS, in response to the “Request for Information for Projects and Properties to House People Experiencing Homelessness Through the Homekey Program” released by the City of Hayward on October 20, 2021, Bay Area Community Services submitted a proposal for the Project Reclamation supportive shared housing program; and
WHEREAS, t he CITY OF HAYWARD (“Lead Applicant”) desires to jointly apply f or Homekey grant funds with BAY AREA COMMUNITY SERVICES (“Corporation”) and with the Cities of Livermore (“ Co-Applicant”), Piedmont ( “Co-Applicant”), and Union City (“ Co- Applicant”). Therefore, Lead-Applicant is joining Corporation and Co -Applicant in the submittal of an application for Homekey funds (“ Application”) to the Department for review and consideration; and
WHEREAS, the Department is authorized to administer Homekey pursuant to the Multifamily Housing Program (Chapter 6.7 (commencing with Sectio n 50675) of Part 2 of Division 31 of the Health and Safety Code). Homekey funding allocations are subject to the terms and conditions of the NOFA, the Application, the Department -approved STD 213, Standard Agreement (“ Standard Agreement ”), and all other le gal requirements of the Homekey Program.
NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Hayward that the City Manager is hereby authorized and directed to submit a joint Application to the Department for Project Reclamation Regional Scattered Site in response to the NOFA, and to jointly apply for Homekey grant funds in a total amount not to exceed $28,500,000.
BE IT FURTHER RESOLVED THAT i f the Application is approved, the City Manager is hereby authorized and directed to execute a Standard Agreement, in a form to be approved by the City Attorney, in a total amount not to exceed $28,500,000, any and all other documents required or deemed necessary or appropriate to secure the Homekey f unds from the
ATTACHMENT II
Department and to participate in the Homekey Program, and all amendments thereto (collectively, the “Homekey Documents”).
BE IT FURTHER RESOLVED THAT Lead Applicant acknowledges and agrees that it shall be subject to the terms and conditions specified in the Standard Agreement, in a form to be approved by the City Attorney, and that the NOFA and Application will be incorporated in the Standard Agreement by reference and made a part thereof. Any and all activities, expenditures, information, and timelines represented in the Application are enforceable through the Standard Agreement. Funds are to be used for the allowable expenditures and activities identified in the Standard Agreement.
BE IT FURTHER RESOLVED THAT City Manager Kelly McAdoo is authorized to execute the Application and the Homekey Documents on behalf of Lead Applicant for participation in the Homekey Program.
BE IT FURTHER RESOLVED THAT the City Manager is authorized to negotiate and develop an agreement with the Co-Applicants and Corporation outlining the roles and responsibilities of each entity if the Application is approved, subject to the review and approval as to form by the City Attorney.
IN COUNCIL, HAYWARD, CALIFORNIA _______________________, 2022
ADOPTED BY THE FOLLOWING VOTE:
AYES: COUNCIL MEMBERS:
MAYOR:
NOES: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
ATTEST: ______________________________________
City Clerk of the City of Hayward
APPROVED AS TO FORM:
_________________________________________
City Attorney of the City of Hayward
ATTACHMENT III
Hayward City Council
RESOLUTION NO. 22- ______
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HAYWARD
AUTHORIZING JOINT APPLICATION TO AND PARTICIPATION IN THE
HOMEKEY PROGRAM FOR CONSTRUCTION AND OPERATIONS OF A TINY HOME VILLAGE IN A TOTAL NOT-TO-EXCEED $6,000,000
WHEREAS, t he State of California Department of Housing and Community Development (“Department”) has issued a Notice of Funding Availability, dated September 9, 2021 (“NOFA”), for the Homekey Pro gram (“Homekey” or “Program”) . The Department has issued the NOFA for Homekey grant funds pursuant to Health and Safety Code section 50675.1.3 (Assem. Bill No. 140 (2021-2022 Reg. Sess.), § 20.); and
WHEREAS, in response to the “Request for Information for Projects and Properties to House People Experiencing Homelessness Through the Homekey Program” released by the City of Hayward on October 20, 2021, Firm Foundations Community Housing submitted a proposal to build new, permanent tiny homes for individuals experiencing homelessness; and
WHEREAS, t he CITY OF HAYWARD (“Co-Applicant” or “City” ) is submitting a joint application with the FIRM FOUNDATION COMMUNITY HOUSING (“Corporation”) for Homekey funds (“Application”) to the Department for review and consideration; and
WHEREAS, t he Department is authorized to administer Homekey pursuant to the Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675) of Part 2 of Division 31 of th e Health and Safety Code). Homekey funding allocations are subject to the terms and conditions of the NOFA, the Application, the Department -approved STD 213, Standard Agreement (“Standard Agreement”), and all other legal requirements of the Homekey Program.
NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Hayward that the City Manager is hereby authorized and directed to submit a joint Application to the Department for construction and operation of a tiny home village at South Hayward Parish in response to the NOFA, and to jointly apply for Homekey grant funds in a total amount not to exceed $6,000,000.
BE IT FURTHER RESOLVED THAT i f the Application is approved, the City Manager is hereby authorized and directed to execute a Standard Agreement, in a form to be approved by the City Attorney, in a total amount not to exceed $6,000,000, and any and all other documents required or deemed necessary or appropriate to secure the Homekey funds from the Department and to participate in the Homekey Program, and all amendments thereto (collectively, the “Homekey Documents”).
ATTACHMENT III
BE IT FURTHER RESOLVED THAT Co-Applicant acknowledges and agrees that it shall be subject to the terms and condit ions specified in the Standard Agreement, in a form to be approved by the City attorney, and that the NOFA and Application will be incorporated in the Standard Agreement by reference and made a part thereof. Any and all activities, expenditures, information, and timelines represented in the Application are enforceable through the Standard Agreement. Funds are to be used for the allowable expenditures and activities identified in the Standard Agreement.
BE IT FURTHER RESOLVED THAT City Manager Kelly McAdoo is authorized to execute the Application and the Homekey Documents on behalf of Co-Applicant for participation in the Homekey Program.
IN COUNCIL, HAYWARD, CALIFORNIA _______________________, 2022
ADOPTED BY THE FOLLOWING VOTE:
AYES: COUNCIL MEMBERS:
MAYOR:
NOES: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
ATTEST: ______________________________________
City Clerk of the City of Hayward
APPROVED AS TO FORM:
_________________________________________
City Attorney of the City of Hayward
Attachment IV
Feedback and Questions from Homelessness-Housing Task Force December 16, 2021
HHTF Questions Homekey Application Response
Eligibility: How will eligibility be
determined and what groups will be
served if the programs receive
Homekey funding? Will any programs
serve families with children? How
much flexibility does the City have in
specifying who is eligible?
The target population for each site is single or coupled adults who are at risk of homelessness or experiencing
chronic homelessness. Eligible residents must meet
Homekey eligibility requirements, including having an
income of 30% of the area median income or lower.
Citizenship status is not a criteria for determining
eligibility. All residents must be referred to the program through the coordinated entry system. As the City is
functioning as a pass through agency for the apartment
acquisition and Project Reclamation programs,
eligibility determinations will be primarily made by the agencies operating the programs.
Participation outreach: What type of
outreach will be done to identify
participants for the program?
Staff will work with the provider agencies to use the
coordinated entry system and will work with the
County to establish a form of local preference, if
possible.
Funding sources: What portion of
funding comes from the American
Rescue Plan? What portion of the
City’s revenue will be used?
There is no impact to the City’s General Fund. All capital expenses (i.e., acquisition, renovation, and new
construction) will be covered with the Homekey award.
The City will contribute a portion of its HOME
Investment Partnership grant to operate the Tiny
Homes Village at South Hayward Parish.
Funding availability: What is the
timeline on State funding and what is
the City’s response when funds are no
longer available?
Capital costs are one-time awards, while operating
funds from the state are allocated on a 2:3 or 3:4 ratio.
Staff have identified four years of operating funds for these programs, securing seven years of operating
funds total. Staff will continue to monitor alternative funding sources.
Apartment acquisition project: What is
the nature of the renovations to the
apartment complex and how many
individuals will be served?
After renovations, BACS anticipates being able to serve approximately 120 individuals through a shared
housing model. The units will remain in an apartment
style with bathrooms and kitchens in each unit and
adults co-living in each apartment.
Operations timeline: What is the
timeline for when the programs will
be operating?
The timeline is informed by the Homekey program
requirements. The City will have eight months from the
time of receiving the award from the State to complete
the projects and reach 90% occupancy.
Measuring success: For Project
Reclamation, what is the approach to
measuring success? What type of data
(e.g., education accomplishments) will
be collected on program participants
The program was formally recognized by the State as an
innovative and successful use of Homekey funding.
BACS tracks several demographic indicators, including
education and employment status and
accomplishments. Staff will work with partners to
Attachment IV
HHTF Questions Homekey Application Response
and their accomplishments for long-
term success?
ensure that participants have access to supportive
services and that metrics are established in the contract to track participant outcomes.
Service model: The City should
consider models that include
navigation services with on-site
support and eventual transition to
small home ownership opportunities.
There are separate programs throughout the City that
can be connected. The pieces are not located at one site, but staff are working to connect them more clearly and
will continue to explore this option.
Islander Hotel: Was the Islander Hotel
considered for a Homekey project?
Ownership from the Islander did submit a response to
the RFI for acquisition. Staff have been in
communication with the owner for several months and
have talked with developers who have worked on other
Islander properties in other jurisdictions. Staff
determined that the cost of the acquisition and
corresponding operating needs made the project
infeasible for this round of funding but will continue
conversations regarding the property.
College study housing: Is it possible to
reach out to partners to discuss using
the second Tiny Homes Village project
to provide housing for students
attending Cal State East Bay and
experiencing homelessness?
Staff will engage FFCH and CSUEB staff to get more
information about the potential project and will report back at the January Council meeting.
Housing vouchers: Staff should
continue exploring housing voucher
availability
Staff concurs and will continue conversations with the
Housing Authority of Alameda County and will monitor
availability for future affordable housing development.
CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
File #: RPT 22-006
DATE: January 25, 2022
TO: Mayor and City Council
FROM: Director of Public Works
SUBJECT
Informational Item Regarding Marin Municipal Water District’s Proposal to Transmit Purchased Water Through the City’s Transmission Mains and the Regional Water System Intertie as a Drought Relief Measure
RECOMMENDATION
That the Council receives this report on the Marin Municipal Water District’s (MMWD) proposal to transmit purchased water through the City’s transmission mains and Regional Water System Intertie as a drought relief measure.
SUMMARY
Faced with a critical water shortage condition due to the previous years’ drought, MMWD reached out to Hayward staff in October 2021 regarding participation in MMWD’s proposed project to obtain water from a third party due to a drought emergency and transmit the water to the District’s services area. Of the four scenarios that MMWD is considering for conveyance of the imported water, the priority scenario involves use of the Regional Water System Intertie (Hayward Regional Intertie), operated by Hayward, and owned by the San Francisco Public Utility Commission (SFPUC) and East Bay Municipal Utility District (EBMUD). Under this priority scenario, water would be routed to Hayward for transfer to the EBMUD system, which would then convey the water to MMWD. Hayward staff are participating in meetings to ensure that the City’s interests are protected.
Staff have initially identified three principles under which Hayward could potentially participate in this effort:
1. Water quality would remain the same as that delivered to all SFPUC wholesale customers.
2. Water would flow in one direction only, north to EBMUD. If managed carefully, delivering water to EBMUD can be accomplished with minimal pumping and less impact on Hayward’s water distribution system.
3. Use of Hayward’s water conveyance system would not interrupt deliveries to its customers If this project is implemented, there would be no fiscal or economic impact on Hayward. All costs would CITY OF HAYWARD Printed on 1/21/2022Page 1 of 2
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File #:RPT 22-006
be borne by MMWD, including reimbursement to Hayward for costs incurred to prepare and operate the Hayward Regional Intertie.
Given the prospects of a severe drought, MMWD had not prepared an environmental review and instead relied on an exception due to the drought emergency. However, with a positive start to the water year and improved water supply storage, a drought emergency no longer exists, and the MMWD Board has determined that it is necessary to conduct a full environmental review of the project. That said, MMWD remains committed to this effort, and staff has prepared this report to update Council, particularly with regard to impacts on Hayward customers.
ATTACHMENTS
Attachment I Staff Report
CITY OF HAYWARD Printed on 1/21/2022Page 2 of 2
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DATE: January 25, 2022
TO: Mayor and City Council
FROM: Director of Public Works
SUBJECT: Informational Item Regarding Marin Municipal Water District’s Proposal to Transmit Purchased Water Through the City’s Transmission Mains and the Regional Water System Intertie as a Drought Relief Measure
RECOMMENDATION
That the Council receives this report on the Marin Municipal Water District’s (MMWD) proposal to transmit purchased water through the City’s transmission mains and Regional Water System Intertie as a drought relief measure.
SUMMARY
Faced with a critical water shortage condition due to the previous years’ drought, MMWD reached out to Hayward staff in October 2021 regarding participation in MMWD’s proposed project to obtain water from a third party due to a drought emergency and transmit the water to the District’s services area. Of the four scenarios that MMWD is considering for conveyance of the imported water, the priority scenario involves use of the Regional Water System Intertie (Hayward Regional Intertie), operated by Hayward, and owned by the San Francisco Public Utility Commission (SFPUC) and East Bay Municipal Utility District (EBMUD). Under this priority scenario, water would be routed to Hayward for transfer to the EBMUD system, which would then convey the water to MMWD. Hayward staff are participating in meetings to ensure that the City’s interests are protected.
Staff have initially identified three principles under which Hayward could potentially participate in this effort:
1. Water quality would remain the same as that delivered to all SFPUC wholesale customers.
2. Water would flow in one direction only, north to EBMUD. If managed carefully, delivering water to EBMUD can be accomplished with minimal pumping and less impact on Hayward’s water distribution system.
3. Use of Hayward’s water conveyance system would not interrupt deliveries to its customers
If this project is implemented, there would be no fiscal or economic impact on Hayward. All costs would be borne by MMWD, including reimbursement to Hayward for costs incurred to prepare and operate the Hayward Regional Intertie.
Given the prospects of a severe drought, MMWD had not prepared an environmental review and instead relied on an exception due to the drought emergency. However, with a positive start to the water year and improved water supply storage, a drought emergency no longer exists, and the MMWD Board has determined that it is necessary to conduct a full environmental review of the project. That said, MMWD remains committed to this effort, and staff has prepared this report to update Council, particularly with regard to impacts on Hayward customers.
BACKGROUND
The Hayward Regional Intertie, located in Hayward, connects the EBMUD water system and the SFPUC’s Regional Water System through Hayward. The Intertie is owned by EBMUD and SFPUC, and operated by Hayward. It was constructed to facilitate delivery of water in the event of water supply interruptions due to emergency events or planned maintenance that cause interruptions in water supply. Water could be delivered through the Hayward Regional Intertie in either direction, should the situation necessitate.
MMWD serves 191,000 customers in Marin County. While recent precipitation has resulted in additional water supply storage and increased optimism, in the fall of last year, MMWD was in a severe drought after two years of extremely dry conditions. Given the impact of drought conditions on MMWD, the MMWD started pursuing a project to bring imported water purchased from a third party into the MMWD’s service area under emergency drought conditions. The key element of the project is construction of an emergency 24-inch pipeline mounted under the upper deck of the Richmond-San Rafael Bridge that would convey water from EBMUD’s system to MMWD. To complete this project, and depending on the water conveyance scenario, MMWD will need to coordinate with multiple agencies and stakeholders, including, but not limited to: Hayward, EBMUD, SFPUC, the City of Richmond, Contra Costa Water District, Alameda County Water District, a third-party water purveyor, and the California Department of Water Resources.
MMWD has developed four potential scenarios for the delivery of water from the seller (third party water purveyor) to MMWD’s service area with the priority and more likely scenario involving use of the Hayward Regional Intertie. Given that the project would have a direct impact on Hayward customers, staff has prepared this report to update Council.
DISCUSSION
Hayward staff have participated in two exploratory meetings with MMWD, and other potential partner agencies on this project to fully understand the options for transferring water through the Hayward Regional Intertie, and to ensure that Hayward’s interests are protected. To provide context and structure to the City’s discussions with MMWD and
other partner agencies, staff identified three criteria under which Hayward could participate in this project without impacts on its customers:
1. Water quality would remain the same as that delivered to all SFPUC wholesale customers.
2. Water would flow in one direction only, north to EBMUD. If managed carefully, delivering water to EBMUD can be accomplished with minimal pumping and impact on Hayward’s water pressure. Therefore, it is critical that no water be returned to Hayward, which has the potential for water pressure changes and significant impacts to customers.
3. Use of Hayward’s water conveyance system would not adversely impact deliveries to its customers. Under no circumstances would Hayward prioritize or accept service interruptions to City water customers in order to facilitate the water transfer.
Under these conditions, Hayward could potentially participate as a partner agency for the MMWD water transfer project through use of the Hayward Regional Intertie under emergency drought conditions, while maintaining water quality and delivery service to its customers.
Conveyance of Transferred Water and Water Quality Impacts MMWD has prioritized the scenario which utilizes the Hayward Regional Intertie as the preferred method of conveyance. While the actual routing of the water is still to be determined, the options being considered at this time result in transferred water anticipated to be 8 million gallons per day, going into the SFPUC Regional Water System to be blended with other SFPUC supplies. SFPUC has indicated a strong willingness to participate in this project in the spirit of regional water supply reliability and partnership.
The transfer could result in some water quality impacts on the water supply to SFPUC wholesale customers including to Hayward; however, the extent and nature of those impacts are unknown. There are several factors that will determine the impacts, including the source of the transferred water, the time of year and the quantity. It is important to note, however, that staff has been assured by SFPUC staff that Hayward will not receive a different quality of water than other SFPUC customers. Staff will continue to participate in discussions to ensure that Hayward is not disproportionately affected.
Environmental Issues and Current Project Status
At this time, Hayward is not involved in environmental review for this project. Staff is providing the following information to update Council on the status of California Environmental Quality Act (CEQA) review and the project in general. MMWD had filed a Notice of Exemption from CEQA review on the basis that the project is needed to prevent or mitigate an emergency. At the time of the October 2021 filing, MMWD’s water supply was critically low, and the agency determined that the amount of water in storage and reduced availability of water from its supplier, Sonoma County Water Agency, constituted an
emergency situation and thus a statutory exemption from CEQA. This determination was legally challenged by the North Coast Rivers Alliance on the basis that the project does not meet the definition of “emergency” under CEQA and further review of environmental impacts on endanger species is warranted.
The City Richmond has also expressed concern about the project, particularly related to noise and air pollution impacts on residential communities in Richmond from both construction and operation of the pump station and diesel generators in Richmond if the facilities are located as currently planned. EBMUD has identified engagement by MMWD with affected communities within EBMUD’s service area and resolution of outstanding issues as a principle which must be met in order to participate in the project.
At its January 4, 2022 meeting, the MMWD Board directed its staff to continue to develop the project with a full (non-emergency) environmental review. This will allow time to address environmental impacts and review all issues regarding this complex project.
Hayward staff will remain engaged to ensure that the City’s interests are protected and that Hayward customers will not be negatively impacted.
ECONOMIC IMPACT
There will be no economic impact on Hayward customers from the MMWD water transfer project as all costs will be paid by MMWD, including reimbursement for staff time needed to prepare and operate the Hayward Regional Intertie, as well as legal reviews.
FISCAL IMPACT
There would likewise be no fiscal impact on Hayward associated with this project. All costs will be reimbursed by the MMWD.
STRATEGIC ROADMAP
This agenda item does not address a Strategic Roadmap priority.
SUSTAINABILITY FEATURES
Hayward’s participation in this project could support Bay Area regional water reliability under emergency drought conditions.
PUBLIC CONTACT
At this time, no specific outreach to Hayward customers has been implemented. If the project moves forward, staff may conduct public outreach activities to inform the community and provide assurance regarding water quality and service reliability.
NEXT STEPS
Staff plans to continue to participate in discussions related to the MMWD water transfer project to support Bay Area regional water reliability, while protecting Hayward’s interests. At this time, two agreements are anticipated if the project goes forward: 1) a water transmission agreement between Hayward and MMWD to use Hayward’s water conveyance system; and 2) an amendment to the Hayward Regional Intertie Operating Agreement between Hayward, EBMUD and SFPUC to operate the Intertie for this purpose.
Staff and legal counsel will evaluate and draft the changes that may be needed to the Operating Agreement to ensure that operating the Regional Intertie to convey water for MMWD’s use is consistent with the intended purpose of the facilities. Staff will return to Council with updates and consideration of the agreements at the appropriate time.
Prepared by: Cheryl Muñoz, Water Resources Manager
Recommended by: Alex Ameri, Director of Public Works
Approved by:
_________________________________
Kelly McAdoo, City Manager