1 APPROVED AS TO FORM AND LEGALITY
Jordan Flanders
Jordan Flanders (Nov 6, 2024 15:35 PST)
CITY ATTORNEY’S OFFICE
OAKLAND CITY COUNCIL
RESOLUTION NO. C.M.S.
RESOLUTION AUTHORIZING THE CITY ADMINISTRATOR TO:
1. EITHER MAKE A 55 -YEAR CAPITALIZED LOAN AT AN INTEREST RATE NOT TO EXCEED 3% OR, IN THE ALTERNATIVE, AWARD A
GRANT TO MEMAR PROPERTIES, INC AND HOUSING CONSORTIUM
OF THE EAST BAY (HCEB), OR THEIR AFFILIATES, IN AN AMOUNT NOT TO EXCEED $7,000,000, USING STATE OF CALIFORNIA
ENCAMPMENT RESOLUTION FUNDING (ERF), IN ORDER TO
PURCHASE THE EXTENDED STAY AMERICA LOCATED AT 3650
MANDELA PARKWAY (PROPERTY) FOR INTERIM SHELTER FOR
UNHOUSED INDIVIDUALS TO BE CONVERTED TO 125 UNITS OF
PERMANENT SUPPORTIVE HOUSING; AND
2. AWARD A GRANT TO HCEB IN AN AMOUNT NOT TO EXCEED
$5,378,190 USING STATE OF CALIFORNIA PERMANENT LOCAL
HOUSING ALLOCATION FUNDS (PLHA), STATE ERF, AND LOCAL
OPIOID REMEDIATION FUNDING, TO OPERATE AN INTERIM
SHELTER PROGRAM AT THE PROPERTY AND PROVIDE PRE -
PROGRAM OUTREACH AND EXIT RESOURCES FOR UNHOUSED
INDIVIDUALS THROUGH SEPTEMBER 30, 2026;
AND MAKING APPROPRIATE CALIFORNIA ENVIRONMENTAL
QUALITY ACT FINDINGS.
WHEREAS, homelessness is a complex problem requiring many different programmatic interventions and financial resources to address the full scope of the issue; and WHEREAS, the City of Oakland’s (City) Housing and Community Development Department’s racial equity analysis has identified that the creation of housing available for homeless exits should be a priority to address the inequitable proportion of Black residents who are experiencing homelessness in Oakland; and
2 WHEREAS, the City applied for, and was awarded $7,216,307 from the State of California Business, Consumer Services and Housing Agency’s (BCSH) California Interagency Council on Homelessness (Cal ICH) in Encampment Resolution Funding (ERF) in order to provide interim shelter and services to approximately 150 unsheltered individuals living in three encampments in Oakland located at Mosswood Park, Martin Luther King Jr. Way, and East 12th Street; and
WHEREAS, the City Council passed Ordinance No. 13759 C.M.S., declaring a shelter crisis in the City of Oakland and appropriating up to $65,000,000 in State ERF and Homeless Housing, Assistance, and Prevention (HHAP) funding through fiscal year 25/26; and WHEREAS, the City Council passed Resolution No. 89977 C.M.S., authorizing the City Administrator to establish a Rapid Response Homeless Housing (R2H2) program, allocating up to $10,400,740 in capital funds and up to $19,667,562 in operating funds from the State of California Permanent Local Housing Allocation (PLHA) to the R2H2 program, and authorizing the City Administrator to loan or grant funds from the R2H2 program to projects creating housing for people experiencing homelessness, without returning to City Council; and WHEREAS, the City issued a Request for Proposals for Initial Applications, dated November 30, 2023, and a Request for Proposals for Full Applications, dated February 15, 2024 (the RFP) for the R2H2 program; and
WHEREAS, a partnership between Housing Consortium of the East Bay (HCEB) and Memar Properties, Inc. (MPI), or their affiliates (together, Developer), submitted an RFP application to acquire and convert the existing Extended Stay America building located at 3650 Mandela Parkway (ESA Property) into 125 units of permanent supportive housing; and
WHEREAS, the City’s initial application for the ERF identified a hotel option that is no longer viable, and the City amended the application to use $7,000,000 of the ERF grant, in combination with other State and local funding sources, to fund Developer’s acquisition of the ESA Property and to operate the building as an interim shelter f or the first 12 months, with the remaining $216,307 for administrative and City staffing costs; and WHEREAS, pursuant to Resolution No. 89977 and the RFP, the City awarded $4,583,016 in capital funding and $6,035,445 in operating subsidies from PLHA to the Developer in order to assist in the acquisition and rehabilitation of the ESA Property for one year of interim shelter and conversion to permanent supportive housing (the Project); and
WHEREAS, in year one, HCEB will operate a 12 -month temporary interim shelter program out of the ESA Property serving the individuals located in the three encampments subject to the ERF grant, using $4,813,460 of State Permanent Local Housing Allocation (PLHA) funding to operate the building and the program; and
WHEREAS, the City began receiving opioid settlement funding in 2022 and anticipates receiving between $9 million and $20 million for opioid abatement from various national opioid settlements and bankruptcies through 2039; and
3 WHEREAS, the City has already received approximately $4.4 million, which was appropriated in the midcycle budget (Resolution Nos. 88980 C.M.S, 89534 C.M.S, and 89609 C.M.S.); and
WHEREAS, the City Administrator, through the Medical Services Division of the Oakland Fire Department or as otherwise designated, oversees the appropriate use of the Opioid Remediation Funds consistent with the terms of the settlement and bankruptcy agreements and may administratively transfer such funds to other programs; and
WHEREAS, the residents of the three encampments selected to shift to interim housing currently reside on public rights-of-way and experience increased crime, mental health, and high levels of substance use disorder; and
WHEREAS, to address the high numbers of co-occurring conditions of mental health and substance abuse, and for the purpose of providing comprehensive services to this community, staff propose granting $564,730 of Opioid Remediation Funds to provide encampment residents a warm hand-off to interim housing and psychosocial services during their stay, plus provide critical exit tenancy supports in the form of ongoing housing navigation and tenancy rental subsidies for six months post exit from the ESA Property; and
WHEREAS, funds in the amount of $5,378,190 are available for the grant to HCEB as shown in Table 1 below:
Table 1
Grantee Funding Source $ Amount Grant Term Funding Source HCEB PLHA $4,813,460.00 July 1, 2024 –
Opioid Remediation $564,730.00 September 30, Fund (TBD), Project Funds 2026 (TBD), Community
Housing Services
Organization (78411),
and the Homeless
Services & Support
Program (NB41)
; and
WHEREAS, the acquisition and conversion of an existing building to interim shelter and permanent supportive housing is exempt from further environmental review under California Environmental Quality Act (CEQA) guidelines sections 15301 (Existing Facilities); 15302 (Minor Alterations); 15326 (Acquisition of Housing); and the statutory exemption contained within Government Code Section 8698.4; now therefore be it
RESOLVED: That the foregoing recitals are true and correct, and City Council hereby makes them part of this Resolution; and be it
FURTHER RESOLVED: That the City Council independently determines that the actions authorized by this Resolution are exempt from CEQA pursuant to CEQA Guidelines 15301, 15302, 15326, and Government Code section 8698.4; and be it 4 FURTHER RESOLVED: That the City Council authorizes the City Administrator to either (1) make a 55 -year capitalized loan to Developer, or affiliates of HCEB and/or MPI, in an amount not to exceed $7,000,000 at an interest rate determined by the City Administrator and not to exceed 3%, or (2) enter into a Grant agreement in an amount not to exceed $7,000,000 with Developer, in combination with other previously approved funding sources, in order to acquire the Property for an interim shelter and conversion to permanent supportive housing; and be it
FURTHER RESOLVED: That the City Council awards a grant and authorizes the City Administrator to enter into a Grant agreement with HCEB in an amount not to exceed $5,378,190 from July 1, 2024 through September 30, 2026 to operate the ESA Property and the interim shelter program, and to provide pre-program outreach and wrap-around resources to individuals existing the interim shelter program, using appropriated Opioid Remediation Funding, any remaining or additional appropriated ERF funding, and State PLHA funding, subject to any applicable funding regulations and requirements; and
FURTHER RESOLVED: That if additional funding becomes available from the State of California for the same purposes within the grant term, including ERF or HHAP funding, the City Council hereby accepts and appropriates those funds for the purposes set forth in this Resolution; and be it
FURTHER RESOLVED: That the City Administrator is authorized to amend the loan and/or grant agreements to increase the amounts, substitute funding sources, or extend the terms, so long as the total amounts do not exceed the total amount of funds accepted and appropriated for the purposes set forth in this Resolution; and be it
FURTHER RESOLVED: That prior to execution, all agreements and amendments shall be reviewed and approved as to form and legality by the City Attorney, and executed copies shall be filed with the City Clerk.
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