City of Sacramento
City Council - 2PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2024-00667 4/9/2024 Consent Item 1.
(Housing Authority) Central Sacramento Studios Project - Correction to Resolution File ID: 2024-00667
Location: 1100 H Street and 815 11th Street, Sacramento, District 4, Represented by Councilmember Valenzuela
Recommendation: Adopt a Housing Authority Resolution 1) authorizing the Executive Director of the Sacramento Housing and Redevelopment Agency (SHRA) and Sacramento 11th Street LP to submit a joint application to the California Department of Housing and Community Development (HCD) for the Homekey Program, 2) authorizing and directing that any funds awarded for capital expenditures and operating expenses are spent within eight months of award date, 3) authorizing the Executive Director to execute a Standard Agreement in a total amount of approximately $25,000,000, to participate in the Homekey Program, 4) acknowledging that the Housing Authority shall be subject to the terms and conditions specified in the Standard Agreement, 5) authorizing the Executive Director to execute the Application and the Homekey Documents for participation in the Homekey Program, 6) authorizing an amended to the Housing Authority’s budget to incorporate any Homekey funding up to $25,000,000 for the acquisition, rehabilitation, and/or operation of a motel conversion to permanent supportive housing for unhoused individuals and families, and 7) making related findings.
Contact: Christine Weichert, Director, (916) 440-1353, Sacramento Housing and Redevelopment Agency
Presenters: Not applicable.
Attachments:
1-Description/Analysis
2-Housing Authority Resolution
Description/Analysis
Issue Detail: On October 19, 2021, the Housing Authority Board approved a resolution authorizing the submittal of an application to the California Department of Housing and Community Development (HCD) seeking funding for the Central Sacramento Studios (Project). The application, which was submitted jointly by the Housing Authority and Danco Communities, was successful and received an award of $23,924,598 in January of 2022. The Central Sacramento Studios Project, which is now complete and fully occupied, converted the former Sutter House Motel located at 1100 H Street into
File ID: 2024-00667 4/9/2024 Consent Item 1.
complete and fully occupied, converted the former Sutter House Motel located at 1100 H Street into 92 permanent supportive housing studios for formerly homeless individuals. Each unit includes a bathroom, new kitchenette with a sink, two-burner stove, refrigerator, bed, dresser, and microwave.
The Project, which was developed by Danco Communities and is managed by Danco Property Management, provides 24-hour desk coverage, resident services, and a fitness center. Outdoor community space includes the existing swimming pool and parking lot, a dog park, designated smoking area and sitting areas. Perimeter fencing, automated vehicles, pedestrian gates, upgraded lighting and security camera systems have been installed. Resident Services are provided by Lifesteps.
HCD recently contacted SHRA staff with a request to correct the resolution approved by the Housing Authority for the Project in 2021. When the resolution was approved it listed the name of the applicant as “DancoCommunities.”Subsequently, Danco formed a limited partnership for the Project known as “Sacramento11th Street LP”which is now the legal owner of the property. HCD is requiring the resolution be updated to reflect the current legal entity that owns the property. No other changes to the resolution or Project are requested.
Policy Considerations: No new policy changes are recommended in this report.
Economic Impacts: None.
Environmental Considerations: California Environmental Quality Act (CEQA): The project has been analyzed in accordance with CEQA and has been determined to be exempt pursuant to CEQA Guidelines §15301. National Environmental Policy Act (NEPA): Pursuant to the provisions of NEPA, an Environmental Assessment was prepared for the project, and it was determined that the project will not result in a significant impact on the quality of the human environment.
Sustainability: Not applicable.
Commission/Committee Action: Not applicable.
Rationale for Recommendation: This report recommends that the Housing Authority Board adopt a new resolution to correct the ownership entity information in the previous resolution as requested by HCD.
Financial Considerations: Not applicable.
Local Business Enterprise (LBE): Not applicable.
RESOLUTION NO. 2024 -
Adopted by the Housing Authority of the City of Sacramento April 9, 2024
A Resolution of the Board of the Housing Authority of the City of Sacramento Authorizing Joint Application to the Homekey Program
BACKGROUND
A. The Department of Housing and Community Development (Department) issued a Notice of Funding Availability (NOFA), dated September 9, 2021, for the Homekey Program (Homekey or Homekey Program). The Department has issued the NOFA for Homekey grant funds pursu ant to Health and Safety Code section 50675.1.1 (Assem. Bill No. 83 (2019-2020 Reg. Sess.), § 21.)
B. The Housing Authority of the City of Sacramento (Co -Applicant) desires to jointly apply for Homekey grant funds with Sacramento 11 th Street LP. Towards that end, Co-Applicant is joining Sacramento 11th Street LP in the submittal of an application for Homekey funds (Application) to the Department for review and consideration.
C. The Department is authorized to administer Homekey 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). Homekey funding allocations are subject to the terms and conditions of the NOFA, the Application, the Departm ent- approved STD 213, Standard Agreement (Standard Agreement), and all other legal requirements of the Homekey Program.
D. The project has been analyzed in accordance with the California Environmental Quality Act (CEQA) and has been determined to be exempt p ursuant to CEQA Guidelines §15301.
The project has been analyzed in accordance with the National Environmental Policy Act. An Environmental Assessment was prepared for the project, and it was determined that the project will not result in a significant im pact on the quality of the human environment.
BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE HOUSING AUTHORITY OF THE CITY RESOLVES AS FOLLOWS:
SECTION 1.
All evidence presented having been duly considered, the findings, including environmental findings regarding this action, as stated above, are found to be true and accurate and are hereby approved and adopted.
SECTION 2.
Co-Applicant is hereby authorized and directed to submit a joint Application with Sacramento 11 th Street LP to the Department in response to the NOFA, dated September 9, 2021, and to jointly apply with Sacramento 11 th Street LP for up to $25,000,000 for capital expenditures (as allowed under Health and Saf. Code, § 50675.1.1, subd. (a)(1)-(6)).
SECTION 3.
If the App lication is approved, Co -Applicant is hereby authorized and directed to ensure that any funds awarded for capital expenditures are spent within eight months of award date and also to ensure that any funds awarded for capitalized operating subsidies are spent within eight months of award date.
SECTION 4.
If the Application is approved, Co -Applicant is hereby authorized and directed to: (i) negotiate, enter into, execute, deliver, and amend if necessary, a Standard Agreement in a total amount of approximately $ 25,000,000, any and all other documents required or deemed necessary or appropriate to secure the Homekey funds from the Department and to participate in the Homekey Program (collectively, the Homekey Documents); or (ii) direct Sacramento 11th Street LP to do the above as the other co- applicant.
SECTION 5.
Co-Applicant acknowledges and agrees that it shall be subject to the terms and conditions specified in the Standard Agreement, and that the NOFA and Application will be incorporated in the Standard Agreement by reference and made a part thereof. Any and all activities, expenditures, information, and timelines represented in the Application are enforceable through the Standard Agreement. Funds are to be used for the allowable expenditures and activities identified in the Standard Agreement.
SECTION 5.
La Shelle Dozier, Executive Director of Co-Applicant, or her designee, is authorized to execute the Application and the Homekey Documents on behalf of Co -Applicant for participation in the Homekey Program.
SECTION 6.
If the Application for funding is ap proved, the Housing Authority’s budget is hereby amended to incorporate any Homekey funding up to $25,000,000 for the acquisition, rehabilitation, and/or operation of a motel conversion to permanent supportive housing for unhoused individuals and families.
PASSED AND ADOPTED at a regular meeting of the Board of the Housing Authority of the City of Sacramento this 9th day of April 2024 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Approving Officer:
Signature
Name: Darrell Steinberg
Title: Chair of Housing Authority Board
CERTIFICATE OF THE ATTESTING OFFICER
The undersigned, Mindy Cuppy of Co- Applicant does hereby attest and certify that the foregoing Resolution is a true, full and correct copy of a resolution duly adopted at a meeting of the Board of the Housing Authority of the City of Sacramento, California, which was duly convened and held on the date stated thereon, and that said document has not been amended, modified, repealed or rescinded since its date of adoption and is in full force and effect as of the date hereof.
ATTEST:
(Signature of Attesting Officer) Name:
Mindy Cuppy
Title : City Clerk