DATE: December 6, 2022
TO: Mayor and City Council
FROM: City Manager
SUBJECT: Adopt a Resolution Authorizing the City Manager to (1) Negotiate and Execute an Agreement with Eden Health District (EHD) for the Award of $250,000 to the City for the Acquisition of the St. Regis Retirement Center; (2) Accept and Appropriate the Funds Awarded by EHD; and (3) Negotiate and Execute an Agreement for Transfer of the $250,000 in Funds from the City to Bay Area Community Services for Down Payment Assistance to Acquire the St. Regis Retirement Center
RECOMMENDATION
That the Council adopts a resolution (Attachment II) authorizing the City Manager to: (1) negotiate and execute an agreement with EHD for the award of $250,000 to the City for assistance to acquire the St. Regis Retirement Center; (2) accept and appropriate the funds awarded by EHD; and (3) negotiate and execute an agreement for transfer of the $250,000 in funds from the City to Bay Area Community Services (BACS) for down payment assistance to acquire St. Regis Retirement Center
SUMMARY
In January 2022, the California Department of Health Care Services (DHCS) and the California Department of Social Services (CDSS) announced a joint Request for Applications (RFA) to expand the State’s behavioral health infrastructure and address historic gaps in the long-term care continuum serving seniors, people with disabilities, and people with behavioral health needs.
Through the joint RFA, BACS applied for Behavioral Health Continuum Infrastructure Program (BHCIP) and Community Care Expansion Program (CCE) funding to acquire the St. Regis Retirement Center and develop a holistic campus of behavioral health treatment, crisis services, and supportive housing. While BACS was awarded a $19.41 million grant through CCE, they were not awarded BHCIP funding for this program. However, BACS intends to apply for BHCIP Round 5 funding.
As BACS did not receive BHCIP funding for this project, there was a gap of $8.45 million needed to cover the full acquisition and rehabilitation costs for the St. Regis property. In August 2022, the Council authorized $627,544 in Community Development Block Grant (CDBG) funds to BACS to support closing costs, and additionally approved a $2 million loan to support BACS while they wait for the State to allocate the awarded CCE funds. BACS will repay this loan by March 1st, 2023. Additionally, the County of Alameda committed $7.5 million to support the project’s closing gap.
In addition to City and County support of the St. Regis project, staff worked with EHD to allocate a $250,000 grant towards BACS’ closing gap. Staff and BACS presented to the EHD Board of Directors on November 16th, 2022 and the EHD Board approved awarding the City a $250,000 grant for the St. Regis project to be passed through to BACS via the City.
BACKGROUND AND DISCUSSION
In January 2022, DHCS and CDSS announced a joint RFA to expand the State’s behavioral health infrastructure and address historic gaps in the long-term care continuum serving seniors, people with disabilities, and people with behavioral health needs. Under this joint RFA, the State made available just over $1 billion through the BHCIP and CCE. Additional information on these funding opportunities can be found in the August 9th, 2022 Council report.
BACS applied for both BHCIP and CCE funding to acquire the St. Regis Retirement Center and develop a holistic campus of behavioral health treatment, crisis services, and supportive housing. While BACS was awarded a $19.41 million grant through CCE, they were not awarded BHCIP funding for this program. As a result, BACS will apply for BHCIP Round 5 funding.
This St. Regis project supports and aligns with existing programs and infrastructure in Hayward as well as recommendations in the Let’s House Hayward! Homelessness reduction strategic plan. The project will increase the Countywide inventory of behavioral health services, including potential drop-off crisis services for the Hayward Police Department and Hayward Fire Department. Additionally, the St. Regis project will increase the inventory of Permanent Supportive Housing (PSH) beds in Alameda County for medically fragile and aging individuals.
As BACS did not receive BHCIP funding for this project, there was a gap of $8.45 million needed to acquire the St. Regis property. In August 2022, the Council authorized a CDBG award of $630,000 to BACS to support rehabilitation costs and also approved a $2 million loan to support BACS while they wait for the State to allocate the awarded CCE funds. BACS will repay the City’s loan by March 1st, 2023. The County of Alameda also committed $7.5 million to support the project’s closing gap.
In addition to City and County support of the St. Regis project, staff worked with EHD to allocate a $250,000 grant towards the closing gap. Staff and BACS presented to the EHD Board of Directors on November 16th, 2022, and the Board approved awarding the St. Regis project a $250,000 grant for the St. Regis project to be passed through to BACS via the City. Table 1 below summarizes the current funding sources used for acquisition and rehabilitation of the St. Regis property, excluding potential BHCIP funds that BACS will apply for in the next round of funding.
Table 1. St. Regis Acquisition and Rehabilitation Funding Sources Funding Source
Funding Agency
Funding Amount
CCE Award
State CDSS
$19,410,000
CDBG Award
City of Hayward
$627,544
EHD Award
Eden Health District
$250,000
County Award
County of Alameda
$7,500,000
Total Funding
$27,787,544
Staff recommends that the Council adopt a resolution authorizing the City Manager to:
Negotiate and execute an agreement with EHD for the award of $250,000 for the St. Regis project; Accept and appropriate funds awarded by EHD in an amount up to $250,000; and Negotiate and execute an agreement for transfer of the $250,000 in funds from the City to BACS for down payment assistance to acquire St. Regis Retirement Center.
Additionally, BACS intends to reapply for the next round of BHCIP funding to develop a Mental Health Rehabilitation Center, Adult Residential Transitional Housing, and potentially a crisis stabilization unit in a separate facility on the property. The CCE funding that was already awarded to BACS, along with the other funding listed in Table 1, allows BACS to demonstrate site control on its upcoming BHCIP application. Based on an analysis of projects awarded BHCIP funding in the previous round, staff and BACS anticipate that demonstrating site control of the St. Regis property will likely make BACS more competitive for the next round of BHCIP funding.
Economic Impact
There is a positive economic impact associated with providing services for low-income individuals with complex behavioral, medical, and social needs. Creating long-term housing options with targeted supportive services can reduce the prevalence of “high utilizers” of emergency services, ultimately reducing local crisis response costs. Furthermore, upgrading and expanding the use of the current facility will create additional job opportunities for individuals with a wide range of certifications and experience.
Fiscal impact
This item has no impact on the General Fund.
Strategic Roadmap
This item supports Strategic Roadmap item H2, to implement the Let’s House Hayward! Homelessness reduction strategic plan. Within the Let’s House Hayward! Plan, this item supports:
Strategy 2.4: Increase Diversity and Availability of Holistic Supportive Services Strategy 3.2: Prioritize the Development of Housing Targeted to People Experiencing Homelessness Public Contact
This item is related to the Let’s House Hayward (LHH) Strategic Plan, under Strategy 2.1, to Expand Housing-Focused Shelter Capacity through continued oversight and management of the Hayward Navigation Center. Through the LHH process, Homebase, City staff, and partners throughout the Hayward community worked together to engage a diverse set of stakeholders to inform the plan's goals, strategies, and specific activities for achieving its goals.
Prepared by: Jessica Lobedan, Community Services Manager Amy Cole-Bloom, Management Analyst II
Recommended by: Jennifer Ott, Assistant City Manager
Approved by:
_________________________________
Kelly McAdoo, City Manager
Meeting materials of the August 9th, 2022 Hayward City Council meeting https://hayward.legistar.com/LegislationDetail.aspx?ID=5749367&GUID=8C5E6C88-47DD-4226-8472-DFEA8CC27167&Options=&Search= Meeting materials of the August 9th, 2022 Hayward City Council meeting https://hayward.legistar.com/LegislationDetail.aspx?ID=5749367&GUID=8C5E6C88-47DD-4226-8472-DFEA8CC27167&Options=&Search= Anticipating delays in receipt of CDSS funds, BACS requested a $2M loan from the City of Hayward to cover up front acquisition costs incurred before the State could allocate the awarded CCE funds; therefore, that loan is not reflected in the funding summary table. BACS will repay this loan by March 1, 2023.
For more information on the Let’s House Hayward! Strategic Plan process, please visit https://www.haywardca.gov/lets-house-hayward