Approved as to Form and Legality
___________________________
City Attorney’s Office
OAKLAND CITY COUNCIL
RESOLUTION NO. _______________ C.M.S.
A RESOLUTION AMENDING AND RESTATING RESOLUTION NO.
89975 C.M.S, WHICH AUTHORI ZED ACCEPTANCE OF FUNDS
AWARDED UNDER ROUND THREE OF THE CALIFORNIA
DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT’S
HOMEKEY PROGRAM AND APPROVED AFFORDABLE HOUSING
DEVELOPMENT FUNDING FROM HOMEKEY AND CITY MATCHING
FUNDS FOR IMPERIAL INN (490 WEST MACARTHUR BOULEVARD),
DIGNITY VILLAGE (9418 EDES/606 CLARA STREET), KINGDOM
BUILDERS TRANSITIONAL HOUSING (624 14TH STREET), THE MAYA (4715 TELEGRAPH AVENUE), AND CSH ENTERPRISE HOUSING (8471
ENTERPRISE WAY), TO ALLOCATE HOMEKEY AND CITY FUNDING
TO EACH OF THESE PROJECTS
WHEREAS, the California Department of Housing and Community Development ("California HCD") is authorized to administer the Homekey Program (“Homekey” or “Program”) pursuant to the Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675) of Part 2 of Division 31 of the Health and Safety Code), and Homekey funding allocations are subject to the terms and conditions of the Notice of Funding Availability, the Application, the HCD - approved STD 213, Standard Agreement (“Standard Agreement”), and all other legal requirements of the Homekey Program; and
WHEREAS, Round 3 of the Homekey Program will make available $736 million in grant funding to local public entities, including cities, counties, or other local public entities within California 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; and
WHEREAS, Resolution No. 89379 C.M.S., adopted on July 26, 2022, provided pre- authorization from the City Council for the City Administrator to apply as a local agency partner with developers/operators of potential Homekey projects (“ Qualified Sponsors ”) for up to $200,000,000 in Round 3 of Homekey Program funds from California HCD , allocated up to $21,608,441 in City capital matching funds and up to $13,676,713 in City operating funds to Homekey Round 3 projects, and provided that staff would return to the City Council for approval of specific Homekey projects after submitting Homekey Round 3 applications to California HCD; and
Lesley Casto (Jan 31, 2024 15:23 PST)
Lesley Casto
2 WHEREAS, Resolution No. 89379 C.M.S., waived any City requirements under its Local and S mall Local Business Enterprise (L/SLBE) Program, L ocal Employment P rogram, and Oakland Apprenticeship Program, for Homekey Round 3 Projects; and
WHEREAS, Resolution No. 89503 C.M.S., adopted on December 6, 2022 provided that, if the City does not receive the full amount of the requested funding from the Round 3 Homekey Program, the City will reallocate up to $10,000,000 of the matching capital funds to the Acquisition and Conversion to Affordable Housing (ACAH) program; and
WHEREAS, the City of Oakland Housing & Community Development Department issued a Homekey Request for Proposals ("City Homekey RFP") in October 2022 to solicit Homekey project proposals for the City to jointly apply with Qualified Sponsors for Homekey Round 3 grant funds, as authorized by Resolution No. 89379 C.M.S.; and
WHEREAS, The Department of Housing and Community Development (“Department”) has issued issued a Notice of Funding Availability, dated March 29, 2023 (“NOFA”), for the Homekey Program (“Homekey” or “Program”). The Department has issued the NOFA for Homekey grant funds pursuant to Health and Safety Code section 50675.1.3; and
WHEREAS, five project proposals submitted in response to the City Homekey RFP met the City of Oakland’s Homekey RFP’s threshold scoring and requirements in staff’s evaluation of project proposals, and, based on the these projects selected by the City Administrator through the City Homekey RFP process, the City (as Applicant) and Qualified Sponsors (as Co-Applicants) jointly submitted the following five applications to Californi a HCD in response to the Homekey Round 3 NOFA (together, the “Applications” and each an “Application”): Imperial Inn (490 West MacArthur Boulevard), Dignity Village (9418 Edes/606 Clara Street), Kingdom Builders Transitional Housing (624 14th Street), The Maya (4715 Telegraph Avenue), and CSH Enterprise Housing (8417 Enterprise Way) (together, the “Homekey Round 3 Projects”); and
WHEREAS, Resolution No. 89975 C.M.S., adopted on November, 7, 2023, authorized the City Administrator to jointly apply for, accept, and enter into Standard Agreements as a Local Agency Partner for funds awarded under Round Three of the Homekey Program to the Homekey Round 3 Projects; and
WHEREAS, pursuant to Resolution No. 89975 C.M.S ., the City , along with its Co - applicant, submitted a joint Application to California HCD in response to the NOFA for Homekey grant funds for the Imperial Inn in a total amount not to exceed $17,070,000; and
WHEREAS, pursuant to Resolution No. 89975 C.M.S ., the City , along with its Co - applicant, submitted a joint Application to California HCD in response to the NOFA for Homekey grant funds for Dignity Village in a total amount not to exceed $15,700,000; and
WHEREAS, pursuant to Resolution No. 89975 C.M.S ., the City, along with its Co - applicant, submitted a joint Application to California HCD in response to the NOFA for Homekey grant funds for Kingdom Builders Transitional Housing in a total amount not to exceed $12,340,000; and
3 WHEREAS, pursuant t o Resolution No. 89975 C.M.S., the City, along with its Co - applicant, submitted a joint Application to California HCD in response to the NOFA for Homekey grant funds for The Maya in a total amount not to exceed $7,471,000; and
WHEREAS, pursuant to Resolut ion No. 89975 C.M.S ., the City, along with its Co - applicant, submitted a joint Application to California HCD in response to the NOFA for Homekey grant funds for CSH Enterprise Housing in a total amount not to exceed $22,280,000; and
WHEREAS, these projects have the potential to bring 209 new deeply-affordable units and 57 units of transitional housing to Oakland; and
WHEREAS, should an Application be awarded funds, any future loan or grant agreement shall require that any contracts entered into by Qualified Sponsors for the construction, rehabilitation, or alteration of the Homekey projects must include enforceable requirements that the contractor and all subcontractors pay prevailing wages in accordance wi th California Labor Code Section 1720 et seq.; and
WHEREAS, such loan or grant agreements shall require that a use restriction be recorded on the property that restricts occupancy to individuals experiencing homelessness or at risk of homelessness meeting the definition in 24 Code of Federal Regulations section 578.3, for at least 30 years for interim housing and 55 years for permanent housing; and WHEREAS, Homekey funding allocations shall be subject to the terms and conditions of the NOFA, the Applications, the Department-approved STD 213 Standard Agreement, and all other legal requirements of Homekey; and
WHEREAS, on October 1, 2019, the City adopted Ordinance No. 13564 C.M.S., an Emergency Ordinance Declaring a Shelter Crisis in the City of Oakland, with provisions to suspend State or local regulatory statues, regulations, and ordinances that could prevent timely delivery of housing and shelter solutions for the City’s homeless residents, which Homekey projects could address with the support of exemptions from local City contract compliance requirements; and
WHEREAS, the City is the Lead Agency for this action for purposes of environmental review under the California Environmental Quality Act of 1970 ("CEQA"); and WHEREAS, California Health and Safety Code section 50675.1.4 establishes a statutory exemption from CEQA for projects using Homekey grant funds and other public funds that (a) provide safe and sanitary units restricted to individuals and families experiencing homelessness or at risk of homelessness for at least 55 years, (b) include commitments requiring all contractors performing construction work to be paid prevailing wage and use a skilled and trained workforce in accordance with California Public Contract Code s ection 2600 et seq., and (c) do not increase the footprint of the building by more than 10 percent; and WHEREAS, each as a separate and independent basis, the Homekey Round 3 Projects as authorized herein satisfy the conditions of Health and Safety Code section 50675.1.4 and are 4 exempt from CEQA review thereunder, and are also exempt from CEQA pursuant to CEQA Guidelines sections 15301 (existing facilities) and 15326 (acquisition of housing); and WHEREAS, excess Oakland Redevelopment Successor Agency (ORSA) bond funds have been identified in the Central District project area, which project area will be benefited by affordable housing projects throughout the City of Oakland; and
WHEREAS, for those Homekey Round 3 P rojects receiving federal funds, execution of loan documents or other documents legally committing the City to fund the projects shall be expressly conditioned on compliance with the requirements of the National Environmental Protection Act ("NEPA"), as certified by the City Administrator; and
WHEREAS, Resolution No. 89975 C.M.S., should be amended and restated to include specific allocations of Homekey funds and matching City funds for each of the Homekey Round 3 Projects; now, therefore, be it
RESOLVED: That the foregoing recitals are true and correct, and the City Council hereby makes them part of this Resolution; and be it
FURTHER RESOLVED: That Resolution No. 89975 C.M.S., is hereby amended, restated. and replaced in its entirety with this Resolution; and be it
FURTHER RESOLVED: That the City Council hereby approves the Homekey Round 3 Projects, and approves and allocates Homekey funding and City matching funding for operating and capital expenses to each of the Homekey Round 3 Projects in amounts not to exceed the following:
Project Name Homekey City
Kingdom
Builders
$12,340,000 $207,500
Imperial Inn $17,070,000 $8,792,081
The Maya $7,471,000 $7,034,621
CSH Enterprise
Housing
$22,280,000 $0
Dignity Village $15,700,000 $6,317,0514
and be it
FURTHER RESOLVED: That , if an Application for a Homekey Round 3 Project is approved, the City Administrator or their successor as City Administrator, is authorized to enter into, execute, and deliver a Standard Agreement for the total amount awarded and any and all other documents required or deemed necessary or appropriate to secure the Homekey funds from California HCD, and all amendments thereto (collectively, “the Homekey Documents”), on behalf of the City as a local agency partner, and to participate in the Homekey Program; and be it
FURTHER RESOLVED: That the City acknowledges and agrees that it shall be subject to the terms and conditions specified in the Standard Agreements, that the NOFA and Applications 5 will be incorporated in the Standard Agreements by reference and made a part thereof, that any and all activities, expenditures, information, and timelines represented in the Application s are enforceable through the Standard Agreements, and that funds are to be used for the allowable expenditures and activities identified in the Standard Agreements; and be it
FURTHER RESOLVED: That the City Council finds that it is in the best interest of the City to use the allocated Central District excess ORSA bond proceeds as a local City match for the Homekey Round 3 Projects because affordable housing anywhere in the City of Oakland is a benefit to the Central District project area; and be it
FURTHER RESOLVED: That, contingent upon the award of Homekey funds for Homekey Round 3 Projects, the City Administrator is hereby authorized to enter into grant or loan agreements with the Qualified Sponsors, or affiliated entities, for these Homekey Round 3 Projects in amounts not to exceed the amounts approved and allocated under this Resolution, for the purposes and with the restrictions described in this Resolution; and be it
FURTHER RESOLVED: That the above agreements shall be reviewed and approved by the Office of the City Attorney for form and legality and placed on file in the Office of the City Clerk; and be it
FURTHER RESOLVED: That the City Council hereby determines that the actions authorized by this Resolution are exempt from CEQA pursuant to Health and Safety Code section 50675.1.4 and CEQA Guidelines 15301 and 15326, and the City Administrator is hereby directed to file a notice of exemption with the Office of the Alameda County Recorder and the State Office of Planning and Research; and be it
FURTHER RESOLVED: That the execution of loan or grant documents or other documents legally committing the City to fund a project with federal funds will be expressly conditioned on compliance with the requirements of NEPA, as certified by the City Administrator; and be it
6 FURTHER RESOLVED: That the City Council hereby authorizes the City Administrator to conduct negotiations, draft and execute documents, administer loans or grants, extend or modify the repayment terms, and take any other action with respect to the Homekey Program and the Homekey Round 3 Projects consistent with this Resolution and its basic purpose.
IN COUNCIL, OAKLAND, CALIFORNIA,
PASSED BY THE FOLLOWING VOTE:
AYES -
FIFE, GALLO, JENKINS, KALB, KAPLAN, RAMACHANDRAN, REID, AND
PRESIDENT FORTUNATO BAS
NOES –
ABSENT –
ABSTENTION –
ATTEST:
ASHA REED
City Clerk and Clerk of the Council of the
City of Oakland, California