September 16, 2025
Community Development
DATE: September 16, 2025
TO: Mayor Martinez and Members of the City Council
FROM:
Lina Velasco, Director of Community Development
Jesus Morales, Housing Manager
Subject:
Contract Amendment No. 1 with Hillmann Development
Advisors, LLC (HDA)
FINANCIAL IMPACT: The proposed $160,000 expenditure is included within the approved fiscal year 2025-2026 budget, Housing
Fund, Successor Housing Agency (Account String:
12831063 - 400201).
PREVIOUS COUNCIL
ACTION:
None.
STATEMENT OF THE
ISSUE:
The Community Development Department is seeking
approval of a contract amendment No. 1 with Hillmann
Development Advisors, LLC (HDA) to increase the
contract amount by $160,000 to provide Owner's
Representation oversight of the City’s Homekey Project, located at 425 24th Street, during the Construction and Post-Construction phases of the project.
RECOMMENDED ACTION:
APPROVE a contract amendment no. 1 with Hillmann
Development Advisors, LLC (HDA), increasing the
contract amount by $160,000, for a total contract amount not to exceed $169,500, to continue providing Owner's
Representation oversight of the City’s Homekey Project, located at 425 24th Street, during the Construction and Post-Construction phases, for a term ending December
31, 2026 – Community Development Department (Lina
Velasco/Jesus Morales 510-620-6706).
AGENDA
REPORT
September 16, 2025
DISCUSSION:
The City of Richmond, in partnership with 425 Civic Center LP, is converting the former Motel 6 at 425 24th Street into the “Civic Center Apartments,” comprising 48 studio units plus a manager’s unit, through California’s Homekey program for the chronically homeless. In mid-August 2024, Richmond was awarded approximately $14.5 million in Homekey funding for this acquisition and rehabilitation project—comprised of about $12 million in capital costs and $2.4 million in operating funds. The City is using these state funds in combination with Community Development Block Grant (CDBG) funds from Contra Costa County (~$1 Million) and contributions from the City itself (~$8.3 Million).
The City entered into an agreement with Hillmann Development Advisors, LLC (HDA) to provide Owner’s Representation services for the City’s Homekey Project at 425 24th Street. HDA is responsible for coordinating with the development team, reviewing project documents, monitoring compliance with funding requirements, and protecting the City’s interests throughout the construction and post-construction phases. With construction now commencing, this contract amendment is needed for continued Owner’s Representation to ensure that the project is delivered on schedule, within budget, and in accordance with all regulatory and funding requirements.
Amendment No. 1 will authorize an increase of $160,000 to HDA’s existing contract to extend their services into the Construction and Post-Construction phases of the project.
This scope includes oversight of construction progress, review of payment draws, and change orders, coordination with the contractor and design professionals, and verification of project close-out deliverables. HDA’s expertise will provide critical support in addressing issues that may arise during construction, while also ensuring accountability and quality control on behalf of the City.
These services are necessary given the complexity and scale of the City’s Homekey Project, as well as the significant public funding commitments associated with its delivery. Expanding HDA’s scope through this amendment will provide the City with consistent, professional representation through project completion, safeguarding the City’s investment and ensuring successful delivery of this much-needed permanent supportive housing development. City staff therefore recommends approval of contract amendment No. 1 with Hillmann Development Advisors, LLC.
SYNERGISTIC POLICIES:
Goal 2 of the Homelessness Strategic Plan is a synergistic policy related to this contract amendment and the City’s Homekey Project. Specifically, Goal 2 is to “Create Temporary Supportive Housing and Expand Permanent Supportive & Affordable Housing”. This policy directly complements the Homekey Project’s mission of converting the former Motel 6 into 48 studio units plus a manager unit, providing permanent supportive affordable housing for individuals experiencing chronic homelessness. The Homekey Project operationalizes this goal by bringing permanent units online quickly through adaptive reuse. The contract amendment to add $160,000 for extended
September 16, 2025
oversight ensures that the City’s investment is protected and that quality and compliance are maintained during both construction and post-construction phases.
DOCUMENTS ATTACHED:
Attachment 1 – Amendment No. 1
Attachment 2 – Executed Contract