12/31/2025
1 RiversideCA.gov1
RiversideCA.gov
January 13, 2026City Council AMENDMENT TO HUD FY 2024/2025 ANNUAL ACTION PLAN, HOMEKEY+ STANDARD AGREEMENT, AND LOAN AGREEMENTS FOR THE QUALITY INN MOTEL CONVERSION PROJECT Housing and Human Services RiversideCA.gov2
BACKGROUND•January 9, 2024: City Managerpresents 2024 Book of Work•Envision Riverside 2025, CommunityWell-Being Goal: Activity No. 23Work to respond to and reducehomelessness•Action (f): Pursue Homekey funding forQuality Inn conversion•Project carried into 2025 Book of Work 1 2
12/31/2025
2 RiversideCA.gov3
HOMEKEY+ NOFA•Released on November 26, 2024 by the California Housing andCommunity Development (HCD)•Funded through Proposition 1approved by California votersinMarch 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.
RiversideCA.gov4
HOMEKEY+•Eligible applicants: cities, counties, state and regional and local publicentities and tribal entities•Eligible uses: acquisition and/or rehabilitation of motels, hotels,apartments, assisted living residences, commercial spaces and otherbuildings with existing uses that could be converted to permanentsupportive housing•Projects must be completed within 12 months starting 60 days from thedate of the Award letter 3 4
12/31/2025
3 RiversideCA.gov5
FUNDING AVAILABILITY & PROGRAM REQUIREMENTS•$1.11 billion available for projects serving all eligiblepopulations•Up to $200,000/unit; up to $300,000 with local match•Operating support up to $1,400/unit/month•Eligible uses: acquisition/rehabilitation of hotels, motels, apartments, and commercial buildings•Applications due May 30, 2025; awards began June 2025 RiversideCA.gov6
HOMEKEY GRANT AWARDNo. of UnitsNo. of ProjectsNo. of JurisdictionsHomekeyFunding579107Round 13,1885133Round 26,86311660Round 31,5173226Homekey+12,147209126Total5 6 12/31/2025
4 RiversideCA.gov7
HOMEKEY FUNDED PROJECTS IN RIVERSIDE COUNTYPROJECT DESCRIPTIONNO. OF UNITSHOMEKEY AWARDSPROJECT NAMEAPPLICANTAcquisition of six adjacent properties located on Brockton Avenue, 9th Street and University Avenue for Project Legacy. Tenants live at Project Legacy for up to 24 months, with the goal of transitioning to permanent housing after residents are equipped with skills to become self-sufficient.19$4,000,000 (Round 1)Project Legacy, RiversideCounty of Riverside and TruEvolution(Payee: TruEvolution)Replace mobile homes in a dilapidated mobile home park. 40$7,250,000 (Round 1)Mountain View Estates Phase III, Coachella ValleyCounty of Riverside and Riverside Community Housing CorporationAcquisition and rehabilitation of four (4) single-family homes for the use of transitional housing for the youth homeless population 25$5,250,000 (Round 2)Walden Scattered Site Interim HousingCity of Riverside and Walden (Funds provided to Walden in escrow by the State)Hotel/motel conversion acquisition and rehabilitation for permanent supportive housing40$11,949,900 (Round 2)Vista Dorada, CoronaCounty of Riverside Modular living units and rehabilitation of two of the three existing warehouse buildings for services. 80$19,059,202 (Round 2)The Springs Housing Navigation Campus, Palm SpringsCounty of Riverside RiversideCA.gov8
HOMEKEY FUNDED PROJECTS
Project Legacy
Walden Youth Transitional Housing
Mountain View Estates Phase III
Vista Dorada7
8 12/31/2025
5 RiversideCA.gov9
PERMANENT SUPPORTIVE HOUSING (PSH) •March 13, 2018, City Council approved the Housing FirstStrategy that places a focus on immediate access to PSH•December 2023, City’s Housing Authority completed thedevelopment of 10 PSH units in Ward 1•January 2025, Innovative Housing Opportunities completed32 PSH that serves transitional youth in Ward 1.•Sunrise at Bogart is expected to close on the project’sfinancing in June 2025 and soon start construction of 22PSH units in Ward 7 RiversideCA.gov10
PSH PROJECTS
9 10
12/31/2025
6 RiversideCA.gov11
PSH NEEDSRiverside has 312 unhoused individuals on the Coordinated Entry SystemCommunity Queue waiting for a permanent supportive housing unit•27 unhoused seniors at or over the age of 62•41 unhoused seniors between the ages of 55-61•134 unhoused individuals between the ages of 25-54•17 unhoused transitional aged youth between the ages of 18-24 RiversideCA.gov12
UNIVERSITY TERRACE HOMESFebruary 24, 2025, received a proposal received from RiversideHousing Development Corporation to acquire and rehabilitatethe Quality Inn at 1590 University Avenue•Convert 114 motel rooms into studio unitsSmall kitchen, bathroom, and a living area that also functions as abedroom•94 Homekey+ units, permanent supportive housing units at orbelow 30% of area median income (AMI)•20 affordable housing units at or below 50% of AMI•Affordable for a 55-year period11 12 12/31/2025
7 RiversideCA.gov13
UNIVERSITY TERRACE HOMES•18 units reserved for individuals with mobility disabilities and 12units reserved for those with hearing or vision disabilities•Tenants will be required to sign a 12-month lease, which after12 months converts to a month-to-month lease•The property will be gated, have onsite 24/7 security, a socialservice coordinator and four (4) case managers onsite•The property manager and maintenance staff will live onsite RiversideCA.gov14
WHO WILL BE SERVED•20 units will be typical affordable housing rented to households withincomes at or below 50% area median income ($35,900 for a one-person household)•94 units will be permanent supportive housing and rented tohouseholds with incomes at or below 30% of area median income($21,500 for a one-person household)Documented mental health or substance abuse disorder and are unhoused•Case manager will be assigned to residents in a permanentsupportive housing unitAssist residents with achieving self-sufficiency through needs assessments,establishing S.M.A.R.T goals, and referrals to service agencies13 14 12/31/2025
8 RiversideCA.gov15
QUALITY INN
RiversideCA.gov16
UNIVERSITY TERRACE HOMES
15 16
12/31/2025
9 RiversideCA.gov17
QUALITY INN•For sale since 2023•Last major improvement was completed in 2018•1/1/2024 – 4/26/2025, property generated 97 calls for police services thatrequired 222 officers to respond to and 4/27 – 10/31/2025, additional 67 policeservice calls•Lowest nightly bed rate charged at $107-$119 a night•Property’s location is walkable to community-based healthcare services,employment opportunities, retail, banks, local transit and other services•Residents will generate an estimated $1.3 million in annual disposable income•Support local businesses, create jobs and contribute to the long-term viability ofthe Eastside.•Adaptative-reuse of the property is a more economical option and moreenvironmentally friendly alternative•Helps address the ongoing housing shortage RiversideCA.gov18
ZONING MAP
17 18
12/31/2025
10 RiversideCA.gov19
RTA BUS STOPS
RiversideCA.gov20
RESOURCES
19 20
12/31/2025
11 RiversideCA.gov21
RIVERSIDE HOUSING DEVELOPMENT CORPORATION•Founded in 1991, RHDC owns, operates and manages over 1,300 affordable housing units throughout Riverside County•More than $100 million in multi-family housingoEmploys 40+ staffoMain office on Brockton AvenueoOver $4 million in cash reserves deposited in local banks•Renovated distressed neighborhoods with housing projects in Riverside, Moreno Valley, Hemet, Coachella Valley, and Blythe•Member of Riverside Chamber of Commerce RiversideCA.gov22
SAFE PLACE TO CALL HOME
21 22
12/31/2025
12 RiversideCA.gov23
COMMUNITY OUTREACH MEETINGSGROUPDATEIndividuals with lived experienceMarch 28, 2025Lincoln Park Community Group April 3, 2025University Neighborhood AssociationApril 10, 2025Bordwell Park Advisory Committee April 23, 2025University Avenue Business Meeting May 8, 2025 RiversideCA.gov24
CITY MEETINGSMEETINGDATEHousing and Homelessness Committee – Housing Authority project updatesMarch 24, July 28, September 22, and October 27, 2025City Council Recommended: 1) Submitting a joint Homekey+ application;2) Executing all required application documents;3) Approving a MOU with RHDC committing soft funding totaling $6,750,000 in HHAP Round 3 and 4, $1,234,890.09 in CDBG funds and $1,000,000 in HOME funds; and 4) Returning to City Council with due-diligence findings including community engagement updates, increase case management, and sewer infrastructure assessment prior to acceptance of the Homekey+ grant.May 20, 202523 24 12/31/2025
13 RiversideCA.gov25
COMMUNITY ENGAGEMENT OUTREACHMEETINGDATESafety and Security Meeting with Businesses on University from Cranford to IowaJuly 17, 2025August 21, 2025September 18, 2025October 14, 2025November 20, 2025Riverside Chamber of Commerce and Altura Credit UnionOctober 3, 2025Inland SoCal Housing Collective October 15, 2025Business Outreach MeetingNovember 17 and 20, 2025 RiversideCA.gov26
DUE-DILIGENCE•Provide six full time case mangers•Sewer Infrastructure AssessmentUpsize 6” sanitary sewer line to an 8” with an 8” clean out at University Ave.•Updated project budgetNo. of Affordable UnitsAmountFunding Source94 units at 30% of AMI$20,137,410.00Homekey+ 36 units at 30% of AMI and 20 units at 80% of AMI $ 7,569,272.25HHAP Round 3 and 4 11 units at 50% of AMI (layered with HHAP units)$1,000,000.00HOME30 units at 50% of AMI (layered with HHAP units)$ 965,617.75CDBG$29,672,300Total 25 26
12/31/2025
14 RiversideCA.gov27
PROJECT FINANCING•CDBG loan, 0% interest, forgiven over 55-year termFunds must be expended by mid-April 2026 to meet HUD’s timeliness requirement•HHAP and HOME loans, 3% simple interest, residual receipt payments throughout the 55-year affordability period. HHAP Round 3 funds must be expended by June 30, 2026•November 17, 2025, received letter from HCD regarding award of $20,137,410 in Homekey+ Grant funds•Affordable housing units restricted under City loan agreements total 56 units, representing 48% of the total housing units RiversideCA.gov28
PROJECT FINANCING•Program Acceptance of Terms and Conditions of Conditional Award Letter must be signed and returned within 10 calendar daysHCD provided extension to January 16, 2026•September 3, 2025, RHDC awarded 94 Section 8 Project Based Vouchers27 28 12/31/2025
15 RiversideCA.gov29
BLOOMBERG CITIES IDEA EXCHANGE•No-cost initiative connecting cities worldwide to share and scale innovative urban solutions•Project aligns with Social Housing Retrofit category•March 2025, Riverside was selected to advance to the next phase by submitting a formal project summary and action plan. •Project aligns with Bloomberg’s timelines, which require implementation by June 2027•If selected, City could receive local consultancy support of $30,000 RiversideCA.gov30
ARTICLE XXXIV•California Constitution requires voter approval for certain affordable housing projects developed, constructed, or acquired by public entities. •Homekey+ program exempt from these requirements categoryHCD’s review is governed by HSC Section 37001HSC Section 37001(h)(3) clarifies that the term “low-rent housing projects”do not include projects funded with monies appropriated and disbursed by the Business, Consumer Services and Housing Agency (BCSH), HCD, or the California Housing Finance Agency.Senate Bill 469, which affirmed that the use of state affordable-housing funds does not trigger Article 34 voter-approval requirements. 29 30 12/31/2025
16 RiversideCA.gov31
RECOMMENDATIONSThat the City Council:1. Approve an amendment to the City of Riverside Fiscal Year 2024/2025United States Department of Housing and Urban Development AnnualAction Plan to allocate $965,617.75 in Community Development BlockGrant unprogrammed funds for the acquisition and rehabilitation of theQuality Inn Motel located at 1590 University Avenue coveting 30affordable housing units;2. Approve the Homekey+ Program Notice of Funding AvailabilityAcceptance of Terms and Conditions of Conditional Award with theCalifornia Department of Housing and Community Development andRiverside Housing Development Corporation and any other grantrelated documents to implement the grant for an award of up to$20,137,410 of Homekey+ grant funds; RiversideCA.gov32
RECOMMENDATIONS3. Approve the following loan agreements with Riverside Housing Development Corporation for the University Terrace Homes project:a. Community Development Block Grant: $965,617.75,b. HOME Investment Partnerships Program: $1,000,000, andc. Homeless Housing, Assistance and Prevention Round 3 and 4: $7,569,272.25; and31 32 12/31/2025
17 RiversideCA.gov33
RECOMMENDATIONS4. Authorize the City Manager, or designee, to execute the following agreements with Riverside Housing Development Corporation and grant related documents to implement the grant including making minor and non-substantive changes and to revise each Regulatory Agreement attached to the Loan Agreement to identify the specific units that the City will be requiring to be affordable, as further described herein. a. Homekey+ Program Notice of Funding Availability Acceptance of Terms and Conditions of Conditional Award;b. Community Development Block Grant Loan Agreement;c. HOME Investment Partnerships Program Loan Agreement; and d. Homeless Housing, Assistance and Prevention Round 3 and 4 Loan Agreement.33