RESOLUTION NO. (N.C.S.)
AUTHORIZATION TO SUBMIT A JOINT APPLICATION TO THE CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT (HCD) FOR HOMEKEY ROUND 2 FOR SCATTERED SITE FAMILY HOUSING WHEREAS, The California Department of Housing and Community Development released a Notice of Funding Availability on September 9, 2021, announcing the availability of approximately $1.45 billion in Homekey Program Round 2 funding to build upon the success of the first round of Homekey to continue statewide efforts to rapidly expand affordable housing options for persons experiencing homelessness or at risk of homelessness and who are impacted by COVID-19; and WHEREAS, there continues to be a demonstrated need within the City for housing for the families experiencing chronic homelessness as demonstrated by the over one hundred and fourteen (114) families currently on the waitlist for the SHARE Center; and WHEREAS, affordable family housing is one of the most expensive housing types to provide and the Homekey Program provides a unique funding opportunity to address the gap in financing this type of housing; and WHEREAS, the Homekey Program is a tailored opportunity for local public agencies to acquire a broad range of housing types to quickly increase their community's capacity to respond to homelessness and the current COVID-19 pandemic; and WHEREAS, the City has identified existing, local shelter operator and experienced Homekey Round 1 awardee, Bay Area Community Services Housing Corporation, as its application partners for a Homekey Program Round 2 application; and WHEREAS, the City seeks to submit a timely application to the HCD for the Homekey Program Round 2 funding to purchase ten (10) residential properties throughout the City of Salinas, County of Monterey for immediate family housing for those experiencing chronic homelessness; and WHEREAS, on December 1, 2021, the City and its Homekey partner participated in the required Homekey 2.0 Pre-Application Consultation with HCD staff and are continuing to work directly with an assigned Homekey Program Ambassador and HCD Technical Assistance consultant to formulate and submit an innovative, competitive application as soon as possible; and WHEREAS, the governing entity of Bay Area Community Services Housing Corporation approved the HCD Co-Applicant Resolution and will facilitate required due diligence items including the appraisals, physical needs assessments, any required environmental reports, and title reports of properties to be acquired and would own and operate the Property; and WHEREAS, the City of Salinas has determined that the proposed projects, if funded through Homekey Round 2, would be statutorily exempt from CEQA under the Health and Safety Code Section 50675.1.4; and WHEREAS, to maximize the operational subsidy from the Homekey Round 2 Program, local jurisdictions must provide four (4) years of subsidy as a local match; and WHEREAS, a local match of up to $1.6 million has been identified including HUD HOME American Rescue Plan (HOME ARP), Permanent Local Housing Allocation (PLHA), and City CIP 9021 Housing Production funds; and NOW, THEREFORE, BE IT RESOLVED, that the Salinas City Council does hereby authorize and direct City staff to submit an application to the HCD for the Homekey Program Round 2 for a scattered site family housing project including: 1) authorizing the City Manager or designee to finalize a Memorandum of Understanding with Bay Area Community Services to be executed by the Mayor and 2) approving a local match of up to $1.6 million consisting of HOME ARP, PLHA, and City CIP 9021 funds.
BE IT FURTHER RESOLVED, that the Salinas City Council does hereby approve a HCD Authorizing Resolutions authorizing a Joint Application to and Participation in the Homekey Program for the acquisition of ten (10) residential properties located throughout the City to serve as immediate housing for families experiencing chronic homelessness in the amount not to exceed $27,800,000.
PASSED AND APPROVED this 8th day of March 2022, by the following vote:
AYES: NOES: ABSTAIN:
ABSENT: APPROVED:
Kimbley Craig, Mayor
ATTEST:
Patricia M. Barajas, City Clerk