Housing and Homelessness Committee
April 28, 2025

4/16/2025
1 RiversideCA.gov1
RiversideCA.gov
Housing and Homelessness CommitteeApril 28, 2025RESOLUTION TO APPLY FOR HOMEKEY+ FUNDING AND CONVERSION OF QUALITY INN MOTEL FOR HOUSINGHOUSING AND HUMAN SERVICES RiversideCA.gov2
HOMEKEY+November 26, 2024, the California Housing and Community Development(HCD) released the Homekey + Notice of Funding Availability (NOFA)• Funded through Proposition 1 that was approved by California voters inMarch 2024• Proposition 1 includes the Behavioral Health Services Act (BHSA) andthe Behavioral Health Infrastructure Bond Act (BHIBA). Homekey+ isthe Permanent Supportive Housing component of the BHIBA.• $1.033 billion is being made available for veteran-serving projects andall other target population projects will have $1.11 billion available 1 2
4/16/2025
2 RiversideCA.gov3
HOMEKEY+• Eligible applicants include cities, counties, state and regional and local publicentities and tribal entities• Eligible uses include acquisition and/or rehabilitation of motels, hotels,apartments, assisted living residences, commercial spaces and other buildingswith existing uses that could be converted to permanent supportive housing• Projects must be completed within 12 months from the date of the grant awardletter• Applications are due by May 30, 2025, and awards announcements will start inJune 2025• Riverside has 249 unhoused individuals on the Coordinated Entry SystemCommunity Queue waiting for a permanent supportive housing unit RiversideCA.gov4
PROPOSED PROJECTFebruary 24, 2025, received a proposal received from RiversideHousing Development Corporation to acquire and rehabilitate theQuality Inn at 1590 University Avenue• Convert 114 motel rooms into studio units• 94 Homekey+ units, permanent supportive housing units at or below30% of area median income (AMI)• 20 affordable housing units at or below 50% of AMI• These units will remain affordable for a 55-year period.3 4 4/16/2025
3 RiversideCA.gov5
PROPOSED PROJECT• Ten (10) units will be reserved for veterans and 18 units reserved forindividuals with mobility disabilities• Tenants will be required to sign a 12-month lease• The property will be gated, have onsite security, a social servicecoordinated and four (4) case managers• The property manager and maintenance staff will live onsite RiversideCA.gov6
PROJECT COSTS• Appraisal was ordered to determine the Fair Market Value of theproperty, which was due on March 29, 2025, and the deadline wasextended to April 7, 2025• At the time this staff report was written and submitted, Real PropertyServices had not yet received the appraisal• RHDC’s estimated total development costs is $26,700,0005 6 4/16/2025
4 RiversideCA.gov7
FUNDING REQUESTSAMOUNTSOURCE$35,000,000.00Homekey+$ 2,496,927.94Homeless Housing, Assistance and Prevention (HHAP) Round 3$ 4,253,072.06HHAP Round 4$ 1,000,000.00HOME Investment Partnerships (HOME) Program$ 1,234,890.09Community Development Block Grant (CDBG) RiversideCA.gov8
COMMUNITY MEETINGSGROUPDA TEIndividuals with lived experienceMarch 28, 2025Lincoln Park Community Group April 3, 2025University Neighborhood AssociationApril 10, 2025Bordwell Park Advisory Committee April 23, 20257 8 4/16/2025
5 RiversideCA.gov9
STRATEGIC PLAN ALIGNMENTEnvision Riverside 2025 Strategic Plan PrioritiesCross-Cutting Threads#2 Community Well-Being, Goal No. 2.1 and 2.2Community TrustEquityFiscal ResponsibilityInnovationSustainability & Resiliency RiversideCA.gov10
RECOMMENDATIONSThat the Housing and Homelessness Committee:1. Conceptually approve a Resolution authorizing the City Manager, or designee, tosubmit a joint application between the City of Riverside and Riverside HousingDevelopment Corporation to the State of California Department of Housing andCommunity Development for up to $35,000,000.00 of Homekey+ Program funds forthe acquisition and conversion of 114 rooms into studio units located at 1590University Avenue; and2. Direct the City Attorney’s Office to draft a Memorandum of Understanding withRiverside Housing Development Corporation for soft commitments of$6,750,000.00 of HHAP Round 3 and 4 for the Homeless Housing, Assistance andPrevention Program Round 3 and 4 grant funds, $1,234,890.09 of CommunityDevelopment Block Grant funds, and $1,000,000.00 of HOME InvestmentPartnerships Program grant funds to carry out the project.9 10