Agenda Packet — Salinas City Council, March 21, 2023 (part 2 of 2)

ANNUAL PROGRESS REPORT
Presented By:

Rod Powell, Planning Manager
March 21, 2023
Background
Annual Progress Report provides the City’s
accomplishments and programs updates on the
General Plan: 2015-2023 Housing Element
Due April 1 , 2023 to:
 California Department of Housing and Community
Development (HCD)
 Governor’s Office of Planning and Research (OPR)

Regional Housing Needs Allocation (RHNA) Progress
Income
Category
RHNA
Goal 2015 2016 2017 2018 2019 2020 2021 2022
Total
Units to
Date
Total
Remaining
Units
%
Achieved
Very Low 537 21 24 50 42 88 225 312 42%
Low 351 20 16 53 8 1 98 253 28%
Moderate 407 6 1 3 10 397 2%
Above
Moderate 934 142 52 25 71 100 210 189 139 928 6 99%
Total
RHNA 2,229 189 93 78 166 108 210 278 139 1,261 882 57%
2022 Housing Production Summary
Parkside Manor – Senior Housing
ADU Main St
Housing Category Issued Units Approved/Finalized
Housing Development Applications 10 51
Building Permits 137 139
Certificate of Occupancy 82 232
Affordable Housing Projects
Project Details Parkside Manor – Phase I Sun Rose Apartments Catalyst Apartments Fiscal Year 2020-2021 2020-2021 2019-2020
Funding Source HOME, PLHA, Fee Deferral CDBG, HSA CDBG
Funding Awarded $2,108,987 $1,000,000 $500,000
Affordable Units 80
(New Construction)
11 (New Construction)
5 (Rehabilitation)
Status Completed Nov. 2022 In Construction Completed Jan. 2022

Expanding Housing Opportunities
Step Up in Salinas Step Up on Sanborn Step Up on Fairview 101 Units
$9 million
58 Units
$16.3 million
45 Units
$13.2 million
Salinas Homekey Projects

Housing in the Pipeline
Project Units Status Housing Type
John St./Abbott St. 233 Entitlement in Progress Rental / Commercial 467 Market St. 75 Entitlement in Progress Rental (Affordable) Step Up in Salinas (Good Nite Inn) 101 Homekey Project in Progress Motel Conversion Step Up on Sanborn (Sanborn Inn) 58 Plan review  2023 Motel Conversion Step Up on Fairview (Salinas Inn) 45 Construction  2023 Motel Conversion 11 Hill Circle 37 Entitlement in progress Ownership (Affordable) 1540 Constitution Blvd 50 Entitlement in Progress Rental (Affordable) Salinas Outreach
and Response
Team (S.O.R.T)
◦ 517 people reached
◦ 103 people received case
management
◦ 74 referred to shelters
◦ 123 people housed

Emergency Rental
Assistance Program
 1,563 households
assisted
 3,764 payments issued
 $7.6 million spent in
2022
Month/Year Amount
Awarded
Amount
Spent
March 2021
– Dec. 2022 $15.6 M $14.4 M
Neighborhood Blight Elimination
Code Enforcement in 2022
 Cases Opened – 1,349
 Cases Closed – 1,260
Receivership in 2022
 2 cases to remediate
violations and bring
properties into
compliance.

Before After

Innovative
Housing
Solutions:

Pre-Approved
ADU Plans

2018
Salinas Plan - called for
Rental Registration and
Inspection
2019
Alisal Vibrancy Plan – called
for Rental Registration and
Inspection
National Resource Network
Community Feedback
TAC Meeting: Dec
2020
TAC Meetings: Jan, Feb, Mar
Proposal - Rental
Registration only
2021
Program Research
Stakeholder Feedback
TAC Meetings: Apr, May, Jul,
Nov, Dec
2022
City staff developed final
ordinance draft and program
fee structure
2023
Final ordinance draft to City
Council April 4, 2023
Implementation of program
effective July 1, 2023
Rental Registration Program Update
Inclusionary Housing Ordinance
 Current Ordinance adopted June 6, 2017
 Nov. 2022, amended ordinance in Central City
Overlay District
 Summer 2023 re-evaluate ordinance

1. Select Consultant for Nexus Study

2. Establish Technical Advisory Committee

3. Present finding to City Council
Inclusionary Options
Option 1 Option 2 Option 3
Inclusionary
Units 20% 15% 12%
Ownership
Rental Ownership/Rental All Ownership All Rental
Income
Level
Very Low (4%)
Low (8%)
Moderate (4%)
Workforce (4%)
Median (6%)
Moderate (6%)
Workforce (3%)
Very Low (8%)
Low (4%)
Pro-housing Designation Program
• Demonstrate commitment to accelerate the
production of housing
• Benefits – Scoring advantages and grant
application preferences
• Dec. 19th, 2022, application was submitted
• City could receive up to $1.65M in PIP Funds

2022 Awarded Grants
Encampment Resolution Funding
Program
• $4 million
• Provide supportive services
Family Homeless Challenge Grant
• $ 2.6 Million
• Acquisition and rehab of single-family
homes and ADU’s

HOME-ARPA
• $12.6 Million (Homelessness/Housing)
a) CNC operations - $1M
b) Share Center operations - $1M
c) Downtown Streets Team - $600K
d) Salinas Homeless Motel Program - $3M
e) Affordable Housing production fund - $7M

Affordable
Housing Project
855 E. Laurel Dr.
 City and County of
Monterey collaboration
 100 % Affordable
Multifamily Rental
Project.
 132 units low and very
low-income families

Departmental Collaboration
• Housing and Community Development Division team collaborated with:
• Public Works (Engineering Division)
• Library and Community Services
• Police
• Fire
• Community Development
• Current Planning
• Advance Planning and Project Implementation
• Code Enforcement Divisions
CEQA Consideration
• The City of Salinas has determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378).

Strategic Plan Goals & Strategies
Fiscal Impact
• Economic Development
• Housing/Affordable Housing
• Effective and Culturally Responsive Government
• No fiscal impact to the City. Submitting the HE APR Report enables the City to be compliant with HCD and OPR and makes the City eligible for State grants.

Recommended Motion
A motion to approve a Resolution authorizing:
• the submittal of the 2022 HE APR to the California Department of Housing and Community Development (HCD) and the Governor’s Office of Planning and Research (OPR) as required by Government Code Section 65400(b).

Questions & Comments
City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#23-131, Version: 1
Execution of an American Rescue Plan Act (ARPA) Grant Funding Agreement with Eden Housing, Inc. for a Proposed 100% Affordable Multifamily Rental Housing Project at 855 East Laurel Drive Approve a Resolution authorizing a one-time deviation from the City of Salinas Zoning Code to allow the County of Monterey to process entitlements for the Eden Housing, Inc. 100% affordable multifamily housing project at 855 E. Laurel Drive in coordination with the City; and authorize the City Manager or designee to execute an ARPA Grant Agreement with Eden Housing, Inc. in the amount of $500,000 for pre-development costs; and authorize the Community Development Director or Housing Division Planning Manager to approve any future revisions, amendments and/or modifications to the ARPA Grant Funding Agreement provided compliance with the terms and conditions of the ARPA Grant Funding Agreement.

City of Salinas Printed on 3/17/2023Page 1 of 1
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CITY OF SALINAS

COUNCIL STAFF REPORT

DATE: MARCH 21, 2023
DEPARTMENT: COMMUNITY DEVELOPMENT
FROM: MEGAN HUNTER, DIRECTOR

THROUGH ROD POWELL, PLANNING MANAGER
PREPARED BY: LUIS OCHOA, SR. COMMUNITY DEVELOPMENT ANALYST TITLE: EXECUTION OF AN AMERICAN RESCUE PLAN ACT (ARPA)
GRANT FUNDING AGREEMENT WITH EDEN HOUSING, INC.

FOR A PROPOSED 100% AFFORDABLE MULTIFAMILY
RENTAL HOUSING PROJECT AT 855 EAST LAUREL DRIVE

RECOMMENDED MOTION:

A motion to approve a Resolution authorizing:

1. the City Manager or designee to execute an ARPA Grant Agreement with Eden Housing, Inc. in the amount of $500,000 for pre -development cost s of the 100% Affordable Multifamily Rental Housing Project at 855 E. Laurel Drive; and

2. the City Manager or designee to approve any future revisions, amendments and/or modifications to the ARPA Grant Funding Agreement provided Eden Housing, Inc. is, at all times throughout the term thereof, in compliance with the terms and conditions of the ARPA Grant Funding Agreement; and

3. a one -time deviation from the City of Salinas Zoning Code to allow the County of Monterey to process entitlements for the Eden Housing, Inc. 100% affordable multifamily housing project at 855 E. Laurel Drive in coordination with the City and under the determination that this project is proper, in the public interest , and shall not be subject to additional land use approvals, permits, or entitlements.

EXECUTIVE SUMMARY:

On June 22, 2021, the City and County amended an existing Memorandum of Understanding (MOU) outlining roles and responsibilities regarding the development and operation of a shelter and navigation center (SHARE) at 845 E. Laurel and affordable housing project on vacant county property at 855 E. Laurel Drive . After releasing a Request for Qualifications (RFQ) seeking a developer for the development of a 100% Affordable Multifamily Rental Housing Project (Project) at 855 E. Laurel Drive, the City of Salinas (City) and the County of Monterey jointly selected Eden Page | 2
Housing, Inc. (Developer). On February 7, 2023, the Monterey County Board of Supervisors approved the execution of an Exclusive Negotiating Agreement (ENA) between the County and the Developer to allow for the Project to be developed on the County-owned parcel.

The MOU also identified the County as the lead for environmental review. To si mplify the entitlement and permitting process, Eden requested the County take lead. Normally, private development on County land would be processed through the City, but because of the existing MOU and close coordination, it is recommended that City Council authorize a one-time deviation to allow the County to process the entitlements and permits.

BACKGROUND:

In 2017, the City and County commenced informal discussions to jointly plan for the future construction and operation of a permanent Homeless Shelter and a permanent supportive and transitional housing project at 1220 Natividad Road. These discussions became more formalized on March 20, 2018 , when the City Council (Council) and Board of Supervisors (BOS) jointly directed staff to proceed with the execution of a formal agreement to establish and allocate various responsibilities between the two jurisdictions . This agreement was formally executed on September 25, 2018, and subsequently resulted in the construction and jointly funded opera tions of the Salinas Housing Advancement Resources and Education Center (SHARE Center) at 845 E.

Laurel Drive.

Based upon the positive partnership, experience and perspective gained through the development of the SHARE Center, the City and County agreed that a vacant County-owned parcel adjacent to 845 E . Laurel Drive would be a better development opportunity site than the original 1220 Natividad Road location. The address for this new Project location is 855 E. Laurel Drive. On June 22, 2021, the City and County entered into a Memorandum of Understanding (MOU), to formally established and coordinate roles and responsibilities related to the ongoing operations of the SHARE Center and the future development of a 100% affordable multifamily rental housing project at 855 E. Laurel Drive.

On May 6, 2022, as outlined in the MOU, the City and County took an initial step forward on development of the proposed project with the release of a joint -RFQ seeking a highly qualified developer. Following an extensive rating and interview process, the City and County jointly announced the selection of Eden Housing , Inc. as the selected Project Developer on October 4, 2022.

DISCUSSION:

Following the selection of the Developer for the Project, the City, County and Developer commenced active discussion s and negotiations regarding project scope, entitlement processing Page | 3
and potential supportive funding for the pre -development phase of the Project . On February 7, 2023, the Monterey County Board of Supervisors approved the execution of an Exclusive Negotiating Agreement (ENA) between the County and the Developer regarding the use and development of the Project at 855 E. Laurel Drive.

Consistent with the MOU, the City and County agreed to work toge ther to raise funds for the housing project and staff had identified the potential use of the $7 million in American Rescue Plan Act (“ARPA”) funds for predevelopment, acquisition, construction, plans, and studies in the RFP to select a developer for the 845 E. Laurel site. Eden’s response to this RFP included a request for $500,000 in financial support for the initial pre -development phase of the Project . Utilizing ARPA funds for the pre-development costs related to the Project at 855 East Laurel is an appropriate use of these funds and consistent with the City Council’s strategic goal in expanding affordable housing opportunities . It is recommended that Council authorize the execution of a reimbursement-based ARPA Grant Funding Agreement with the Developer in an amount of $500,000 to support costs associated with pre-development phase of the Project.

The Monterey County expressed the desire to process entitlements for the proposed Project since it is located on County-owned property and is willing to follow City zoning as closely as feasible for the Project. Salinas Zoning Code Section 37-10.080 normally requires land owned by Monterey County “to be subject to the regulations contained in this Zoning Code, unless otherwise provided by law .” In support of the County’s ENA and the proposed City’s ARPA Grant Funding Agreement, and t o facilitate and expedite the Project’s entitlement process, the City Council through Zoning Code Section 37-10.180 has the authority to deviate from “development standards contained in this Zoning Code if it can be established that the deviation is necessary in the interest of public health and safety or is required as part of environmental mitigation .” The 100% Affordable Housing Rental Project at 855 E. Laurel Drive is proper and in the public interest and shall not be subject to additional land use approvals, permits, or entitlements from the City. In the approval of this deviation, the County would assume a primary role in the Project ’s entitlement and permitting processes with the continued collaboration, review, and commentary from the City.

CEQA CONSIDERATION:

Not a Project. The City of Salinas has determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378).

STRATEGIC PLAN INITIATIVE:

The coordination with the County on thi s effort and the execution of an ARPA Grant Funding Agreement with the Developer supports the City of Salinas Strategic Plan 2022 -2025 Goals and Strategies of Housing/Affordable Housing.

DEPARTMENT COORDINATION:

This agenda item originates from the City’s C ommunity Development Department (CDD), Housing and Community Development Division under significant, formal collaboration with the County of Monterey and consultation with the City Attorney.

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FISCAL AND SUSTAINABILITY IMPACT:

Funding to support the execution of th e proposed $500,000 ARPA Grant Funding Agreement is appropriated and available in the American Rescue Plan Act (ARPA) fund.

ATTACHMENTS:

Resolution
Draft ARPA Grant Funding Agreement
City/County MOU (Dated June 22, 2021)

1 RESOLUTION NO. _________ (N.C.S.)

RESOLUTION AUTHORIZING EXECUTION OF AN AMERICAN RESCUE PLAN ACT (ARPA) GRANT FUNDING AGREEMENT WITH EDEN HOUSING, INC. FOR A PROPOSED 100% AFFORDABLE MULTIFAMILY RENTAL HOUSING PROJECT AT 855 EAST LAUREL DRIVE
WHEREAS, in 2017, the City of Salinas (City) and the County of Monterey (County) began discussions on planning for the future construction and operation of a year-round Homeless Shelter and permanent supportive housing at 1220 Natividad Road; and WHEREAS, on October 9, 2018, City Council authorized the City Manager to enter into a Memorandum of Understanding (MOU) with the County and City establishing roles and responsibilities related to the development of a permanent Shelter and permanent supportive housing at 855 East Laurel Drive and 1220 Natividad Road respectively; and

WHEREAS, on May 26, 2021, the permanent Shelter with navigation services known as SHARE Center opened and began services; and

WHEREAS, on June 22, 2021, the City and County amended the prior MOU and agreed that the vacant County-owned site at 855 E. Laurel Drive is a preferred location for a future 100% Affordable Multifamily Rental Housing Project due to previously completed site preparation and utility work that would help facilitate the future development; and

WHEREAS, on October 4, 2022, the City and County jointly announced to the City Council and Board of S upervisors, the selection of Eden Housing , Inc. (Developer) as the most qualified and experienced developer to pursue the 100% Affordable Multifamily Rental Housing Project at 855 E. Laurel Drive; and

WHEREAS, on February 7, 2023, the Monterey County Boa rd of Supervisors approved the execution of an Exclusive Negotiating Agreement (ENA) between the County and the Developer; and

WHEREAS, in accordance with the provisions of the established City/County MOU , the City agreed to work with the County to identify federal and state funding for the proposed affordable housing project; and

WHEREAS, the City Council approved Resolution 22250 appropriating $7 million from the American Rescue Plan Act (“ARPA”) to the Affordable Housing Production Fund to be used for predevelopment, acquisition, construction, plans, and studies; and 2 WHEREAS, utilizing ARPA funds for pre -development costs related to the housing project at 8 55 East Laurel is an appropriate use of these funds and consistent with the City of Salinas Strategic Plan 2022-2025 goal to expand affordable housing opportunities; and

WHEREAS, 855 East Laurel Drive is located on County land and the MOU designated the County as the Lead Agency in conducting the environmental review; and

WHEREAS, the County expressed the desire to process entitlements for the proposed project since it is located on County property and is willing to adhere to City zoning regulations to the fullest extent possible; and

WHEREAS, the Salinas Zoning Code under Section 37-10.080 normally requires land owned by Monterey County “to be subject to the regulations contained in this Zoning Code, unless otherwise provided by law”; and

WHEREAS, under Section 37-10.180 of the Zoning Code, City Council has the authority to deviate from “development standards contained in this Zoning Code if it can be established that the deviation is necessary in the interest of public health and safety or is required as part of environmental mitigation .”

NOW, THEREFORE, BE IT RESOLVED that the Salinas City Council hereby authorizes a one -time deviation from the City’s Zoning Code to allow the County to process entitlements for the Eden Housing, Inc. 100% Affordable Multifamily Rental Housing Project at 855 E. Laurel Drive in coordination w ith the City and has determined that this project is proper and in the public interest and shall not be subject to additional land use approvals, permits, or entitlements; and

BE IT FURTHER RESOLVED that the Salinas City Council hereby authorizes the City Manager or designee to execute an ARPA Grant Funding Agreement with Eden Housing, Inc. in the amount of $500,000 for the pre-development cost of the 100% Affordable Multifamily Rental Housing Project at 855 E. Laurel Drive; and

BE IT FURTHER RESOLVED that the Salinas City Council hereby authorizes the City Manager or designee to approve any future revisions, amendments and/or modifications to the ARPA Grant Funding Agreement provided Eden Housing Inc. is, at all times throughout the term thereof, in compliance with the terms and conditions of the ARPA Grant Funding Agreement.

3 PASSED AND APPROVED this 21st day of March 2023, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:

______________________________
Kimbley Craig, Mayor

ATTEST:

____________________________
Patricia M. Barajas, City Clerk

FISCAL YEAR 2022-23

AMERICAN RESCUE PLAN ACT (ARPA)

GRANT FUNDING AGREEMENT

BETWEEN

THE CITY OF SALINAS AND
EDEN HOUSING INC.

This is an official document.

Do not make any changes to this document EXCEPT to modify your signature block on the last page as needed.

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FISCAL YEAR 2022-23

AMERICAN RESCUE PLAN ACT (ARPA) GRANT FUNDING AGREEMENT

BETWEEN

CITY OF SALINAS AND EDEN HOUSING INC.

FOR THE DEVELOPMENT OF AN
100% AFFORDABLE MULTIFAMILY RENTAL HOUSING PROJECT
855 E. LAUREL DRIVE, SALINAS, CA 93905
(APN # 003-851-027-000)

Agreement Number: 2023-ARPA-02
Table of Contents
PART I - AGREEMENT ................................................................................................................ 2 Section 1. Definitions (as used in this Agreement)......................................................................2 Section 2. Term ............................................................................................................................2 Section 3. Scope of Service .........................................................................................................2 Section 4. Funding .......................................................................................................................3 Section 4A. Other Program Requirements...................................................................................5 Section 5. Records and Reports ...................................................................................................6 Section 6: Insurance .....................................................................................................................7 Section 7. Subcontracts ................................................................................................................9 Section 8. Amendment ...............................................................................................................10 Section 9. Assignment ...............................................................................................................10 Section 10. Suspension and Termination ...................................................................................10 Section 11. Terms and Conditions .............................................................................................11 PART II - SUPPLEMENTAL GENERAL CONDITIONS ......................................................... 12 Section 1. Program Income ........................................................................................................12 Section 2. Uniform Administrative Requirements.....................................................................12 Section 3. Title VI of the Civil Rights Act of 1964 ...................................................................12 Section 4. Nondiscrimination.....................................................................................................13 Section 5. Conflict of Interest ....................................................................................................15 Section 6. Lobbying Prohibited .................................................................................................16 Section 7. Audits and Inspections ..............................................................................................16 Section 8. ARPA Requirements .................................................................................................17 Section 9. Prohibition Against Payment of Bonus or Commissions .........................................17 Section 10. Copyrights ...............................................................................................................17 Section 11. Political Activity Prohibited ...................................................................................17 Section 12. Board of Directors...................................................................................................17 Section 13. Notices ....................................................................................................................18 Section 14. Legal Representation ..............................................................................................18 Section 15. Joint Representation ................................................................................................18

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Section 16. Warranty of Authority.............................................................................................18 Section 17. No Waiver of Rights ...............................................................................................18 Section 18. No Third-Party Rights.............................................................................................19 Section 19. Modification ............................................................................................................19 Section 20. Severability .............................................................................................................19 Section 21. Further Assurances ..................................................................................................19 Section 22. Entire Agreement ....................................................................................................19 Section 23. Rights and Obligations ............................................................................................19 Section 24. Attorney Fees ..........................................................................................................19 Section 26. Compliance with Laws ...........................................................................................19 EXHIBIT A PROJECT SCOPE OF WORK ............................................................................... 22 EXHIBIT B PROJECT BUDGET ............................................................................................... 23 EXHIBIT C PROJECT TIMELINE ............................................................................................ 24

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FISCAL YEAR 2022-23

AMERICAN RESCUE PLAN ACT (ARPA) GRANT FUNDING AGREEMENT

BETWEEN

CITY OF SALINAS AND EDEN HOUSING INC.

FOR THE DEVELOPMENT OF AN
100% AFFORDABLE MULTIFAMILY RENTAL HOUSING PROJECT
855 E. LAUREL DRIVE, SALINAS, CA 93905
(APN # 003851027000)

Agreement Number: 22ARPA07

This American Rescue Plan Act (ARPA) Grant Funding Agreement ("Agreement"), made and entered into this _____ day of March 2023, by and between the City of Salinas, a charter city and municipal corporation, ("City"), and Eden Housing, Inc., a California Limited Liability Company (hereinafter referred to as "Grantee").

RECITALS
WHEREAS, the City of Salinas will receive a total of $51,567,313, in American Rescue Plan Act (ARPA) funding, in two payments; and
WHEREAS, ARPA funds must be obligated by the City Council by December 31, 2024, and expended by December 31, 2026, with ongoing Finance Department reporting re quirements; and
WHEREAS, City Staff met with the Finance Committee on August 2, 2021, to discuss the ARPA funds and recommendations to the City Council; and WHEREAS, the City Council has reviewed Government Service categories that qualify for receipt of th is money and upcoming expenditures in the areas of Public Facilities, Public Infrastructure, Investments in Water and Sewer, and Homelessness, all as described in the August 24, 2021 Staff Report to Council; and
WHEREAS, on March 20, 2018, the City Council and Board of Supervisors (BOS) directed staff to proceed with an agreement to establishing responsibilities between the two jurisdictions on the development of the permanent supportive/transitional housing project at 1220 Natividad Road and permanent Homeless Shelter at 845 East Laurel Drive; and WHEREAS, on June 22, 2021, the City and County amended the prior MOU and agreed that the vacant County -owned site at 845 E. Laurel Drive is a preferred location for a future affordable housing project due t o the prior completion of site preparation and utility work that would help facilitate future development; and

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WHEREAS, on May 6, 2022, the City and County jointly released a Request for Qualifications seeking a highly qualified developer for the design an d development of a 100% Affordable Multifamily Rental Housing Project for 855 E. Laurel Drive; and WHEREAS, on October 4, 2022, the City and County jointly announced to the City Council and Board of Supervisors, the selection of Eden Housing Inc. as the m ost qualified and experienced Developer to pursue the 100% Affordable Multifamily Rental Housing Project at 855 E. Laurel Drive; and
WHEREAS, on February 7, 2023, the Monterey County Board of Supervisors approved the execution of an Exclusive Negotiating Agreement (ENA) between the County and the Developer; and
WHEREAS, on March 7, 2023, the Grantee was awarded $500,000 ARPA funding by the City of Salinas to reimburse the cost pre-development for the design and development of an 100% Affordable Multifamily Rental Housing Project located at 855 E. Laurel Drive, Salinas, CA 93905 (APN #: 003851027000) to provide affordable housing to the community under this Agreement; and
WHEREAS, the City wishes to engage the Grantee and assist in utilizing such funds; and NOW, THEREFORE, in consideration of mutual covenants and agreements contained herein, the parties hereto agree as follows:

PART I - AGREEMENT
Section 1. Definitions (as used in this Agreement)
Except to the extent modified or supplemented by this Agreement, any term defined in the Final Rule in 31 CFR Part 35 RIN 1505 -AC77 established under the American Rescue Plan Act, shall have the same meaning when used herein.
a) "HUD" means the U.S. Departmen t of Housing and Urban Development, or a person authorized to act on behalf of the Department.
b) “ARPA” means the American Rescue Plan Act
Section 2. Term
This Agreement shall commence on March __, 2023, and shall expire on July 31, 2026, unless City grants a written extension of term set forth in this Section.

Grantee shall submit a Final Report due on July 10 of 2023, 2024, 2025 and 2026. The Final Report will include pre-development accomplishments, expenditures, programmatic, and outcomes in City Data Services (CDS) www.citydataservices.net . The City will review submitted Final Report and collaborate with Grantee to cure any deficiency by July 10 of 2023, 2024, 2025 and 2026.

Section 3. Scope of Service
This Agreement, including attached, Exhibit A , Project Scope of Work, Exhibit B , Project Budget, and Exhibit C, Project Timeline, herein made part of this Agreement, is to be performed

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in accordance with Grantee's FY 2022-23 Grant Funding Agreement, and incorporated herein by this reference.
a. Activities
The Grantee will be responsible for administering and expending ARPA Fiscal Year (FY) 2022-23 funds for the predevelopment of an 100% Affordable Multifamily Rental Housing Project located at 855 E. Laurel Drive, Salinas, CA 93905 in a manner satisfactory to the City and consistent with any standards required as a condition of providing these funds.

Such program will include activities that meet the ARPA eligible activities described in the Interim Final Rule 31 CFR Part 35 RIN 1505-AC77.
b. Levels of Accomplishment - Goals and Performance Measures The levels of accomplishment are referenced in Exhibit B, Project Timeline, and herein made part of this agreement.
c. Performance Monitoring
The City will monitor the performance of the Grantee against the goals and performance standards as stated above. Substandard performance as determined by the City will constitute noncompliance with this Agreement. If action to correct such substandard performance is not taken by the Grantee within a reasonable period of time after being notified by the City, contract suspension or termination procedures will be initiated , and the City may be required to request the Grantee to reimburse funds mismanaged or misspent.

In addition to HUD performance standards, some examples of substandard performance include: a pattern of inadequate staffing levels; inadequate progress towards outcome achievement, deficiency in timeliness of overall reporting, including both activit y and expense reporting. More than (2) two late reports results in a deficiency, with exception for transitions to new reporting tools/system, the consequence of which will be a demerit of points counted against future funding applications; deficiencies in spending down grant funds timely; substandard performance also includes leaving any grant funds unspent at end of grant term.

Section 4. Funding
Purpose:

The funds shall be use used for the pre-development and design of an 100% Affordable Multifamily Rental Housing Project to be located at 855 E. Laurel Drive, Salinas, CA 93905 (APN # 003851027000). The pre -development activities to be undertaken with the ARPA funds may include, but are not limited to architectural design, landscape architecture, engineer ing and environmental consulting and technical studies indicated under Exhibit A.

The funds to be used by the City for the payments to the Grantee hereunder are ARPA funds received under a grant from the U.S. Department of the Treasury. a. Maximum Compensation: It is expressly understood that the total compensation to be paid to Grantee under this Agreement for services rendered shall not exceed $500,000. b. Funding Availability: The availability of said funds is subject to the control of the U.S.

Department of the Treasury and, should said funds be encumbered, withdrawn, or

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otherwise made unavailable to City, whether earned by or promised to Grantee, Grantee shall not be paid said funds until they are available for payment. No other funds owned or controlled by City shall be paid under this Agreement unless specifically permitted by the Council of the City of Salinas.

It is specifically understood and agreed by Grantee that the funds herein authorized for the programs, projects, and services to be under taken and performed pursuant to this Agreement constitute all of the money presently available for the purpose of this Agreement; that future additional funding of any such programs, projects, or services beyond the term of this Agreement, by any new Agreement or amendment or extension of this Agreement, will depend not only upon the satisfactory performance of this Agreement by Grantee, but also upon the availability to City of grant funds allocated for such purposes; that neither City, nor any employee of City, has made any promise or commitment, expressed or implied, that any additional funds will be paid or made available to Grantee for the purpose of this Agreement over and above the funds expressly allocated thereto under the terms herein.

Grantee is advised that because additional funding may not be available beyond the term of this Agreement for the completion of any unfinished project or the continuation of any ongoing program or service, Grantee is expected to structure and conduct each project and program in such manner that it may be readily completed or terminated with the minimum of waste or loss in the event no further funding thereof is available.

Use of ARPA Funds: The Grantee shall administer its program in conformance with the policies and requirements of 31 CFR Part 35 RIN 1505 -AC77 and the Uniform Administrative Requirements 2 CFR Part 200, as applicable. These principles shall be applied for all costs incurred whether charged on a direct or indirect basis. c. Method of Payment: City will provide payment for program costs covered by this Agreement on a monthly basis upon successful electronic submission of “Expense Report” and “Contract Expenditure Request” through the City’s online data management system City Data Services (CDS) (www.citydataservices.net) by Grantee indicating the amount of payment requested and a breakdown of expenditures consistent with Grantee’s project budget included in Exhibit B. All costs shall be supported by properly executed invoices, contracts, or vouchers, or other official documentation evidencing in proper detail the nature and propriety of the charges. All checks, invoices, contracts, vouchers, orders, or other accounting documents pertaining in whole or in part to this Agreement shall be clearly identified and readily accessible upon request by City and the U.S. Department of Treasury, or designated agents thereof.

d. Financial Management and Accounting Standards
Grantee shall request funds only for authorized budget item(s) and the request shall be approved by City's Planning Manager (Housing Division) or designee prior to payment.

Payment requests are due on the tenth (10th) day of each month. Payments shall be reimbursed based upon the prior month's expenditures and appropriate documentation must be submitted electronically. “Expense Report” submitted incorrectly or without the “Activity Report” shall be returned to Grantee by the City. Funding shall only be provided

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for expenses incurred or services provided during the period commencing March __, 2023, and ending July 31, 2026. Payment requests received by City after July 31, 2026, need not be considered for payment.

If any portion of the approved funding is neither expended nor encumbered by July 31, 2026, the allocation shall be correspondingly reduced, and the funds made available for other eligible ARPA activities as approved by City Council and any amendment thereto.

In order to ensure compliance with the regulations concerning timely expenditure the above-mentioned project shall be completed within the timeframes specified in the Section 2 - Term.

The Grantee may request an extension for the completion of the proposed scope of work (Exhibit A). The Extension Request may only be approved on a case-by-case basis and only upon written request by submittal of a Request for Extension Form provided by the City of Salinas. Such form shall be completed on the CDS website at www.citydataservices.net. Upon written request by Subrecipient, the Planning Mana ger may authorize such extension request, provided all ARPA and City requirements are met. e. Budget Modifications: Upon electronic submission of a “Budget Modification Request” by Grantee, City's Planning Manager (Housing Division) may authorize a budget revision.

Any budget revision executed shall not authorize the total compensation to be paid under this Agreement, as so modified, to exceed the amount shown above in Section 4, paragraph b. Such budget modifications shall be completed on the City Data Services (CDS) website at www.citydataservices.net.
f. Unexpended Funds: When a portion of the approved budget amount is not expended or encumbered, as per the approved budget within the Proposal ( Exhibit B), the maximum compensation shall be automatically reduced by any unexpended portion unless otherwise indicated, in writing, by City's Planning Manager (Housing Division). Should an agency be at risk to not complete the obligation of expenditure, the City reserves the right to reassess the grant and possibly de-obligate funding to another agency in order to meet the spending requirements.
g. Improperly Expended Funds: If City has reason to believe th at any funds disbursed to Grantee under this Agreement were not expended in accordance with the terms and conditions hereof, City shall notify Grantee, in writing, of the facts, and shall provide Grantee reasonable opportunity to demonstrate or achieve com pliance with the terms of this Agreement. If Grantee fails to demonstrate such compliance to the satisfaction of City within the time specified, upon request by City, Grantee shall immediately refund to City the amount determined to be improperly expended.

Section 4A. Other Program Requirements
Grantee shall carry out each activity in compliance with all applicable federal laws and regulations as described below:

Monitoring: City will monitor Grantee to ensure that the ARPA funds granted through this Agreement are used in accordance with all program requirements (2 CFR 200.332).

Substandard performance as determined by City will constitute non -compliance with this Agreement. If action to correct such substandard performance is not taken by Grantee within

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a specified period of time after being notified by City, contract suspension or termination procedures will be initiated.

Evaluation: The City reserves the right to survey Grantee’s clients/consultants. If the City elects to survey Grantee’s clients/consultants, the City will deliver questionnaires to the Grantee and the Grantee will distribute those questionnaires to Grantee’s clients/consultants.

Grantee’s clients/consultants may then remit completed questionnaires directly to the City. The method of return to the City would be clarified during the evaluation process. To maintain Grantee’s protection of client confidentiality, City agrees that client surveys will not contain questions requiring the survey-taker to reveal any personally identifying client data. Following receipt of clients’ completed questionnaires, the City shall forward a summary of the results to the Grantee.

Disclosure of Confidential Client Information : City and Grantee will protect the confidentiality of all records pertaining to any individual served under this Agreement and will protect the disclosure of such documents, except as otherwise required under state or federal law or unless written consent is obtained from such person receiving service and, in the case of a minor, that of a responsible parent/guardian. Grantee expressly acknowledges that City is subject to the California Public Records Act and may, therefore, be obligated to disclose records pertaining to Grantee and its activities and services provided pursuant to this Agreement.

Depending on the nature or timing of the request, or future court decisions, records received by City pursuant to this agreement may not remain private and may be publicly disclosed.

Given the nature of the applicable law under the California Public Records Act, City cannot guarantee or warrant that it will be able to keep submitted records confidential. Grantee therefore agrees to defend and indemnify City against any suit brought under the California Public Records act to obtain the records; otherwise, City shall not be obligated to defend such suit and may release the records.

Section 5. Records and Reports
Grantee shall provide to City's Planning Manager (Housing Division) or his/her designee, a Monthly Activity Report, in a form determined by City, so that City may meet its record keeping and reporting requirements to the U.S. Department of the Treasury. These reports shall be due by the tenth day of each month and will reflect the prior month's activities. Such Activity Reports shall be completed on the CDS website at www.citydataservices.net. As required by City and by U.S. Department of the Treasury, Grantee shall maintain adequate records to support the reported statistics regarding beneficiary characteristics and services provided. Such records shall be made available for inspection by the City, U.S. Department of the Treasury, or designated agents thereof upon re quest as specified in 2 CFR 200.1. Grantee shall maintain all records required by the regulations specified in 2 CFR Part 200 Subpart F, and that are pertinent to the activities funded under this agreement; including but not limited to:
a. records demonstrating that funded activities meet one of the ARPA Objectives program; and
b. records required to determine the eligibility of activities; and c. financial records as required by 2 CFR 200.1 and 2 CFR 200.307 agreeing to adhere to the accounting principles and procedures required therein; and

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d. the Annual Program Narrative Report due on July 10 of 2023, 2024, 2025, and 2026 in CDS (incorporating data on prior year's activities).

Grantee shall retain all records specified under this Agreement for a period of f ive (5) years after the termination of the Agreement.

Section 6: Insurance
Grantee shall indemnify, defend and hold City and its officers, employees, agents, and volunteers harmless from and against any and all liability, claims, suits, actions, damages, and causes of action arising out of any personal injury, bodily injury, loss of life, or damage to any property, or any violation of any federal, state, or municipal law or ordinance, or other cause in connection with the negligent or intentional acts or omission o f Subrecipient, its employees, subcontractors, or agents, or on account of the performance or character of the work, or any other matter arising out of or related to this Agreement, except for any claim arising out of the active negligence or willful misconduct of City, its officers, employees, agents or volunteers. It is understood that the duty of Grantee to indemnify and hold harmless includes the duty to defend as set forth in Section 2778 of the California Civil Code, and that Grantee shall at its own expense, upon written request of City, defend any such suit or action brought against City, its officers, agents, or employees.

Acceptance of insurance certificates and endorsements required under this Agreement does not relieve Grantee from liability unde r this indemnification and hold harmless clause. This indemnification and hold harmless clause shall apply whether or not such insurance policies shall have been determined to be applicable to any such damages or claims for damages.

Grantee shall reimburse City for all costs and expenses (including, but not limited to, fees and charges of architects, engineers, attorneys, and other professionals and court costs) incurred by City in enforcing the provisions of this Section.

Grantee shall maintain comprehensi ve general liability and property damage insurance or commercial general liability insurance, covering all operations of the Subrecipient, its agents and employees, performed in connection with the activities conducted under this Agreement, including but not limited to premises and automobiles.

MINIMUM SCOPE AND LIMIT OF INSURANCE
Coverage shall be at least as broad as:

1. Commercial General Liability (“CGL”): Insurance Services Office (“ISO”) Form CG 00 01 covering CGL on an occurrence basis, including products and completed operations, property damage, bodily injury, and personal & advertising injury with limits no less than $2,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location (ISO Form CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit.

2. Automobile Liability: ISO Form CA 0001 covering Code 1 (any auto), with limits no less than $1,000,000 per accident for bodily injury and property damage.

3. Workers’ Compensation: as required by the State of California, with Statutory Limits, and Employers’ Liability insurance with a limit of no less than $1,000,000 per accident for bodily injury or disease.

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4. Grantee and their Contractors’ Pollution Legal Liability and/or Asbestos Legal Liability and/or Errors and Omissions (if project involves environmental hazards): with limits no less than $1,000,000 per occurrence or claim, and $2,000,000 policy aggregate, on an annual basis.

If the Grantee or their Contractor maintains broader coverage and/or higher limits than the minimums shown above, the Grantee or Contractor requires and shall be entitled to the broader coverage and/or higher limits maintained by the Contractor. Any ava ilable insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.
a. Self-Insured Retentions
Self-insured retentions must be declared to and approved by the City. At the option of the City, either: the Grantee or their Contractor shall cause the insurer shall reduce or eliminate such self -insured retentions as respects the City, its officers, offi cials, employees, and volunteers; or the Contractor shall provide a financial guarantee satisfactory to the City guaranteeing payment of losses and related investigations, claim administration, and defense expenses. The policy language shall provide, or be endorsed to provide, that the self-insured retention may be satisfied by either the named insured or City.

Other Insurance Provisions
The insurance policies are to contain, or be endorsed to contain, the following provisions:

1. The City, its officers , officials, employees, and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of the Grantee including materials, parts, or equipment furnished in connection with such work or operations and automobiles owned, leased, hired, or borrowed by or on behalf of the Grantee or Contractor. General liability coverage can be provided in the form of an endorsement to the Grantee or Contractor’s insurance (at least as broad as ISO Form CG 20 10, CG 11 85 or both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37 forms if later revisions used).

2. For any claims related to this project, the Grantee or Contractor’s insurance coverage shall be primary insurance c overage at least as broad as ISO CG 20 01 04 13 as respects the City, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, or volunteers shall be excess of the Contractor’s insurance and shall not contribute with it.

3. Each insurance policy required by this clause shall provide that coverage shall not be canceled, except with notice to the City.

4. A copy of the claims reporting requirements must be submitted by Grantee or Contractor to the City.

5. If the services involve lead -based paint or asbestos identification/remediation, the Contractor’s Pollution Liability policy shall not contain lead -based paint or asbestos exclusions. If the services involve mold identi fication/remediation, the Contractor’s Pollution Liability policy shall not contain a mold exclusion, and the definition of Pollution shall include microbial matter, including mold.

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b. Acceptability of Insurers
Insurance is to be placed with insurers authorized to conduct business in the state with a current A.M. Best rating of no less than A: VII, unless otherwise acceptable to the City.

c. Waiver of Subrogation
Grantee or their Contractor hereby agrees to waive rights of subrogation which any insurer of Contractor may acquire from Contractor by virtue of the payment of any loss. Grantee agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation. The Workers’ Compensation policy s hall be endorsed with a waiver of subrogation in favor of the City for all work performed by the Subrecipient, its employees, agents, and subcontractors.
d. Grantee shall provide evidence of compliance with the insurance requirements listed above by providin g a certificate of insurance, in a form satisfactory to City's Senior Human Resources Analyst, by certified mail to the City of Salinas Administration Department, 200 Lincoln Avenue, Salinas, CA 93901 and by Grantee uploading the Certificate of Insurance into the CDS website at www.citydataservices.net on behalf of the City of Salinas, concurrently with the submittal of this Agreement. A statement on the insurance certificate which states that the insurance c ompany "will endeavor" to notify the certificate holder, "but failure to mail such notice shall impose no obligation or liability to any kind upon the company, its agents or representatives" does not satisfy the requirement of subsection (e) herein. Grantee shall ensure that the authorized representative of the insurance company strikes the above quoted language from the certificate. The insurance certificate shall also state the unpaid limits of the policy.
e. Grantee shall provide a substitute certificate of insurance no later than ten (10) days prior to the policy expiration date. Failure by Grantee to provide such substitution and extend the policy expiration date shall be considered a default. In the event Grantee is unable to provide a substitute certificate of insurance within the time prescribed in this subsection, Grantee shall provide written confirmation of renewal, in a form satisfactory to the City, to act as proof of insurance only until such time as a cert ificate of insurance has been received by the City.
f. Maintenance of insurance by Grantee as specified in this Agreement shall in no way be interpreted as relieving Grantee of any responsibility whatever, and Grantee may carry, at its own expense, such additional insurance as Grantee deems necessary. g. In lieu of providing proof of insurance as required by Section 9(A) through (G) herein above, Grantee may provide a letter of insurance to City which represents and warrants to City that Grantee is lawfully self-insured with respect to the liabilities which it may incur in the performance of this Agreement and that, to the best of Grantee’s knowledge, Grantee will be in a financial position to meet such potential liabilities when they occur.

Section 7. Subcontracts
Grantee may contract with one or more third parties (subcontractors) to carry out a portion of the services and program described in the Proposal, insofar as Grantee deems such to be proper and efficient.

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Prior to Grantee entering into any agreement for any person or organization to render said services, the Grantee shall obtain written approval from City's Planning Manager (Housing Division). Such subcontracts, together with all other activities by or on behalf of Subrecipient, shall not require payment in excess of City's portion of the total project budget as stated in Part I, Exhibit A of this Agreement. The subcontractor shall be subject to the same terms and conditions that Grantee is subject to under this Agreement and Grantee shall ensure the terms of this Agreement are expressly set forth in any agreements in it may have with any such subcontractors. City shall in no event be liable to any subcontractor or any other creditor of Grantee and shall be liable to Grantee only in accordance with the terms and conditions of this Agreement.

Section 8. Amendment
Where it is determined by the Planning Manager (Housing Division) that there is a need to make any change in the project, fiscal procedures, or the terms and conditions of this Agreement (including a ny changes necessary to comply with changes in Federal, State or local laws or regulations), such change shall be incorporated by written amendment to this Agreement and approved by the Salinas City Council and by Grantee, provided that adjustments in line items within the total approved budget, and minor changes in the nature and scope of services specified in the Agreement, may be approved by the Planning Manager (Housing Division) - any such changes shall be documented in writing.

Section 9. Assignment
There shall be no assignment of rights or obligations under this Agreement without written approval of the Planning Manager (Housing Division). This Agreement restricts the right of the Grantee to assign rights and responsibilities and restricts the right t o modify this Agreement.

Written notification requesting reassignment of modifications to effectuate the assignment and the modification of the rights and responsibilities under the Agreement must be requested along with a current copy of the IRS letter re garding tax status on any possible merges. Any changes of this agreement must be signed by the Board of Directors of the Grantee, if a corporation, or the management if not a corporation, and by the City of Salinas.

Section 10. Suspension and Termination
If Grantee materially fails to comply with any term of this Agreement, City may suspend or terminate the Agreement in whole or in part. City may terminate the Agreement for convenience with the mutual written agreement of Subrecipient. Grantee may terminate the Agreement upon no less than thirty (30) days of receipt of written notice, setting forth the reasons for such termination and the effective date of such termination.

In such event, all finished or unfinished documents, data, studies, surveys, drawings , maps, models, photographs, and reports of the Grantee, become the property of City and Grantee shall be entitled to receive just and equitable compensation for any work satisfactorily completed hereunder, to the date of termination.

In no event shall any payment by City hereunder constitute a waiver by City of any breach of this Agreement or any default, which may then exist on the part of Subrecipient, nor shall such payment impair or prejudice any remedy available to City with respe ct to the breach or default. City expressly reserves the right to demand of Grantee the repayment to the City of any funds disbursed to Grantee under this Agreement, which were not expended in accordance with the terms of this Agreement, and Grantee agrees to promptly refund any such funds upon demand.

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Notwithstanding the above, Grantee shall not be relieved of liability to City for damages sustained by City or others by virtue of any breach of the Agreement by Grantee, and City may withhold any payments to the Grantee for the purpose of set off until such time as the exact amount of damages due City from Grantee is determined.

If Grantee does not move forward with the development of the Property, City will have the right to take over the work product of the design professionals, engineers and other consultants funded by the ARPA Grant Agreement.

Section 11. Terms and Conditions
This Agreement is subject to and incorporates the provisions attached hereto, and by this reference made a part hereof, which provi sions constitute Part II, "Supplemental General Conditions," attached to this Agreement; and/or any written amendment(s) to this Agreement mutually agreed upon by the parties hereto. To the extent that any of the term and conditions of Part I of this Agreement are inconsistent or otherwise in conflict with any of the terms of Part II of this Agreement, the terms and conditions of Part II shall take precedence and apply.

This Agreement and all performance hereunder are subject to the Treasury’s final rule regulations pertaining to the American Rescue Plan Act , and Grantee agrees to comply with all such regulations, which are incorporated herein by reference and made a part hereof, and which are available for inspection at the Housing and Community Development Division.

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PART II - SUPPLEMENTAL GENERAL CONDITIONS
The following conditions take precedence over any conflicting conditions in the Agreement:

Section 1. Program Income
Any income generated by Grantee from the use of ARPA funds must be immediately reported as earned and returned to City.

Section 2. Uniform Administrative Requirements
a. Establishment and Maintenance of Records: Grantee shall comply with the policies, requirements, and standards of the Uniform Administrative Requirements 2 CFR Part 200. 2 CFR Part 200 set forth standards for use by recipients in establishing procedures for the procurement of supplies and other expendable property, equipment, real property, and other services with Federal funds. These standards are furnished to ensure that such materials and services are obtained in an effective manner and in compliance with the provisions of applicable Federal statutes and Executive Orders. No additional procurement standards or requirements shall be imposed upon recipients, unless specifically required by Federal statute or Executive Order or approved by Office of Management and Budget.

Records shall be maintained in accordance with any other requirements prescribed by U.S.

Department of the Treasury or City with respect to all matters covered by this Agreement.

Except as otherwise authorized by U.S. Department of the Treasury or City , such records shall be maintained for a period of f ive years after receipt of the final payment under this Agreement.
b. Documentation of Costs: All costs shall be supported by properly executed payrolls, time records, invoices, contracts, or vouchers, or other official documentation evidencing in proper detail the nature and propriety of the charges. All checks, payro lls, invoices, contracts, vouchers, orders, or other accounting documents pertaining in whole or in part to this Agreement shall be clearly identified and readily accessible to City upon reasonable request.
c. Procurement Standards: Unless specified otherwise within this agreement, the Grantee shall ensure consistency with the standards set forth in the Uniform Guide at of 2 CFR parts 200.317 – 327 as applicable.

Section 3. Title VI of the Civil Rights Act of 1964
No person shall on the grounds of race, color, national origin, or sex be excluded from participation in, be denied the benefits of, or be subjected to discrimination under the performance of this Agreement.

Compliance: The Grantee agrees to comply with 24 CFR Part 570.600 – 615, Title VI of the Civil Rights Act of 1964 as amended, Title VIII of the Civil Rights Act of 1968 as amended, Section 104(b) and Section 109 of Title I of the Housing and Community Development Act of 1974 as amended, Section 504 of the Rehabilitation Act of 1973, the Americans with Disabilities Act of 1990, the Age Discrimination Act of 1975, Executive Order 11063, and Executive Order 11246 as amended by Executive Orders 11375, 11478, 12107, and 12086.

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Grantee shall take reasonable steps to ensure meaningful access to their development and activities by Limited English Proficient (LEP) persons while not imposing undue burdens on the Grantee.

Persons who do not speak English as their primary language and who have a limited ability to read, write, speak, or understand English can be "limited English proficient," or "LEP." Grantee shall assess its extent of its obligation to provide specialized LEP services using the following four factors:
a. The number or proportion of LEP persons eligible to be served or likely to be encountered by the development/project or Grantee;
b. The frequency with which LEP persons come in contact with the development/project; c. The nature and importance of the development/project or activity provided by the Grantee to people's lives; and
d. The resources available to Grantee and costs of modifying existing procedures.

After performing the four -factor analysis, Grantee is encouraged to document the analysis and outcome and to develop a Language Access Plan (LAP). The LAP identifies Grantee’s immediate and longer -term plans for providing language services, which might include identifying LEP individuals who need language assistance, measures by which Grantee’s staff will provide language services, how Grantee will train its staff to implement the LAP, providing public notice of the language services Grantee provides, and self-assessment and monitoring by Grantee of its LAP.

Section 4. Nondiscrimination
No person in the United States shall, on the grounds of race, color, sex, national origin, or religion be excluded from participation in, be denied the benefits of, or be subject to discrimination under any program or activity made possible by or resulting from this Agreement. Additionally, discrimination on the basis of age, under the Age Discrimi nation Act of 1975 [42 U.S.C. 6101 et seq.] or with respect to an otherwise qualified handicapped individual as provided in Section 504 of the Rehabilitation Act of 1973 [29 U.S.C. 794] and the Americans with Disabilities Act of 1990, shall be prohibited u nder the performance of this Agreement. Grantee shall comply with regulations found at Title 24, Code of Federal Regulations and Part 8 that complement Section 504 of the Rehabilitation Act of 1973.

The Grantee agrees to comply with the non -discrimination in employment and contracting opportunities, laws, regulations, and executive orders referenced in 24 CFR 570.607, as revised by Executive Order 13279. The applicable non-discrimination provisions in Section 109 of the HCDA are still applicable.
a. Fair Housing Act [42 U.S.C. 3601 et seq.]. No person shall, on the grounds of race or color, religion, sex, national origin, familial status, or disability be excluded from participation in, be denied the benefits of, or be subject to discrimination under any program or activity made possible by or resulting from this Agreement. b. Age Discrimination Act of 1975 [42 U.S.C. 6101 et seq.]. No person shall, on the basis of age, be excluded from participation in, be denied the benefits of, or be subject to discrimination u nder any program or activity made possible by or resulting from this Agreement.

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c. Section 504 of the Rehabilitation Act of 1973, as amended [29 U.S.C. 794]. No otherwise qualified individual with a disability shall, solely by reason of his or her handicap, be excluded from the participation in, be denied the benefits of, or be subjected to discrimination under any program or activity under this Agreement. (i) A Grantee that employs less than fifteen (15) persons shall:
(a). Take appropriate steps to ensure effective c ommunication with applicants, determine auxiliary aids necessary, adopt and implement procedures to ensure that interested person can obtain information concerning the existence and location of accessible services, activities, and facilities. [24 CFR 8.6]
(b). Evaluate its current policies and practices to determine whether, in whole or in part, they do not or may not meet the requirements of Section 504 and the implementing federal regulations; modify any policies and practices that do not meet the requirements ; take appropriate corrective steps to remedy the discrimination revealed by the self -evaluation; maintain on file for at least three years following completion of the evaluation, make available for public inspection and provide to the responsible civil rights official a list of the interested persons consulted, a description of areas examined and any problems identified, and a description of any modifications made and of any remedial steps taken. [24 CFR 8.51]
(ii) A Grantee that employees fifteen (15) persons or more shall implement (i)(a) and (i)(b) above and in addition:
(a). Designate at least one person to coordinate its efforts to comply with the obligations imposed by Section 504 and the implementing federal regulations. [24 CFR 8.53(a)]
(b). Adopt grievance proced ures that incorporate due process standards that provide for the prompt and equitable resolution of complaints alleging any action prohibited by the obligations imposed by Section 504 and the implementing federal regulations. [24 CFR 8.53(b)]
(c). Take appropri ate initial and continuing steps to notify participants, beneficiaries, applicants, and employees that the Grantee does not discriminate in admission or access to, or treatment or employment in, its federally assisted programs and activities. [24 CFR 8.54] d. Subtitle A of Title II of the Americans with Disabilities Act of 1990 [42 U.S.C. 12131].

No qualified individual with a disability shall, on the basis of disability, be excluded from participation in or be denied the benefits of the services, programs, or activities of a public entity, or be subjected to discrimination by any public entity under this Agreement. (i) A public entity that employs less than fifty (50) persons shall:
(a). Evaluate its current services, policies, and practices, and the effects thereof, and to the extent that such do not or may not meet the requirements of Subtitle A and the implementing federal regulations, shall proceed to make the necessary modifications. [28 CFR 35.105]

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(b). Make available to applicants, participants, beneficiaries, and oth er interested persons information regarding the provisions of Part 35 and its applicability to the services, programs, or activities of the public entity, and make such information available to them in such a manner as the head of the entity finds necessary to apprise such persons of the protections against discrimination assured them by the Americans with Disabilities Act and Part 35. [28 CFR 35.106]
(c). TDD's (telecommunication devices for the deaf) or equally effective telecommunication systems shall be used to communicate by telephone with individuals with impaired hearing or speech. [28 CFR 35.161] (ii) A public entity that employees fifty (50) persons or more shall implement (i)(a), (i)(b) and (i)(c) above and in addition:
(a). Designate at least one employee to coordinate its efforts to comply with and carry out its responsibilities including any investigation of any complaint alleging noncompliance or any actions prohibited by ADA, make information about designated person available to all interested individuals, adopt and publish grievance procedures providing prompt and equitable resolution of complaints alleging any prohibited action. [28 CFR 35.107] (b). Take appropriate steps to ensure communication with applicants, participants, and members of the public with dis abilities are as effective as communications with others, furnish appropriate auxiliary aids and services where necessary to afford an individual with a disability an equal opportunity to participate in, enjoy the benefits of, a service, program or activity, determine what type of auxiliary aid and service is necessary, give primary consideration to the requests of individuals with disabilities. [28 CFR 35.160]
Section 5. Conflict of Interest
a. Interest of Certain Federal Officials: No member of or Delegate to the Congress of the United States, and no resident Commissioner, shall be admitted to any share or part of this Agreement or to any benefit to arise from the same.
b. Interest of Members, Officers, or Employees of City, Members of Local Governing Body, or Other Officials: No member, officer, or employee of the City, or its designees or agents, no member of the governing body of the locality in which the program is situated, and no other public official of such locality or localities who exercises any functio ns or responsibilities with respect to the program during his tenure or for one year thereafter, shall have any interest, direct or indirect, in any contract or subcontract, or the proceeds thereof, for work to be performed in connection with the program a ssisted under the Agreement. Grantee shall incorporate, or cause to be incorporated, in all such contracts or subcontracts a provision prohibiting such interest pursuant to the purpose of this subparagraph.
c. Interest of Members, Officers, or Employees of Grantee and Subcontractors/consultants: No employees, officer or agent of Grantee or any Grantee shall participate in the selection, award or administration of a contract in which Federal

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funds are used, where, to his knowledge, he or his immediate family, p artners, or organization in which he or his immediate family or partner has a financial interest or with whom he is negotiating or has any arrangement concerning prospective employment. The recipients' officers, employees or agents shall neither solicit nor accept gratuities, favors or anything of monetary value from contractors or potential contractors. Any interest on the part of Grantee or his employees must be immediately disclosed to U.S. Department of the Treasury and to City.

Section 6. Lobbying Prohibited
No Federal appropriated funds have been paid or will be paid, by or on behalf of the Subrecipient, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congres s, or an employee of a Member of Congress in connection with this Agreement.

If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Agreement, Grantee shall complete and submit Standard Form LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions.

Grantee shall require that this Section be included in the award documents for all sub-awards at all tiers in connection with this Agreement and that all Subrecipients shall certify and disclose accordingly.

Section 7. Audits and Inspections
Grantee will, at any time during normal business hours and as often as City, or U.S. Department of the Treasury , may deem necessary, make available in accordance with the state, federal, and local law, and to the examination of all of Grantee’s records with respect to all matters covered by this Agreement, excepting in all circumstances any and all records or materials subject to protection pursuant to California Evidence Code §950 et seq. Grantee shall provide citizens with reasonable access to records regarding the p ast use of ARPA funds, consistent with applicable State and local laws regarding privacy, including the attorney -client privilege set forth in California Evidence Code §950 et seq. of confidentiality) and representatives of the Comptroller General to audit, examine and make excerpts, copies or transcripts from such records, and to make audits of all contracts, invoices, materials, payrolls, records of personnel, conditions of employment and other data relating to all matters covered by this Agreement in acc ordance with local, state, and federal laws, but at all times no information otherwise protected from disclosure pursuant to California Evidence Code §950 et seq.

Subrecipients receiving less than $750,000 a year in Federal Grants is exempt from Federal audit requirements, but Subrecipients' records, as may be covered by the attorney client privilege, must be available for review upon request by City, U.S. Department of the Treasury, or representatives of the Comptroller General for examination. Subrecipients receiving $750,000 or more in Federal grants within a fiscal year shall have an audit made in accordance with 2 CFR Part 200.501 Audit Requirements. Subrecipients that expend $750,000 or more during the City’s fiscal year in Federal awards must have a single audit conducted in accordance with §200.514 Scope of audit, except when it elects to have a program-specific audit conducted in accordance with 2 CFR Part 200.501 (d).

Page | 17

Grantee further represents to City that Grantee, as a non -profit 501(c) (3) law firm, represents clients in confidential attorney-client relationships, and therefore neither Subrecipient, nor any of its employees, legal or administrative, are mandatory reporters as described in Welfare & Institutions Code Section 15630 and/or are exempted from reporting pursuant to Welfare and Institutions Code Section 15632(b) and shall maintain at all times the confidentiality of Grantee’s clients.

Section 8. ARPA Requirements
Unearned or other payments under this Agreement may b e suspended or terminated upon refusal to accept any additional conditions that may be imposed by the U.S. Department of the Treasury or City at any time, or if the grant to City under Title I of the Housing and Community Development Act of 1974, as amended from time to time, is suspended or terminated.

Section 9. Prohibition Against Payment of Bonus or Commissions The assistance provided under this Agreement shall not be used in the payment of any bonus or commission for the purpose of obtaining City’s approval of the application for such assistance, or any other approval or concurrence of U.S. Department of the Treasury regulations with respect thereto; provided, however, that reasonable fees for bona fide technical, consultant, managerial or other such services, other than actual solicitation, are not hereby prohibited if otherwise eligible as program costs.

Section 10. Copyrights
If this Agreement or its performance results in a book or other copyrightable material, the author is free to copyright the wor k, but the U. S. Department of the Treasury and City each reserve a royalty free, nonexclusive, and irrevocable license to reproduce, publish, or otherwise use, (and to authorize others to use) all copyrighted material and all material which can be copyrighted.

Section 11. Political Activity Prohibited
None of the funds, materials, property, or services provided directly or indirectly under this Agreement shall be used for any partisan political activity, or to further the election or defeat of any candidate for public office. Grantee shall comply with provisions of the Hatch Act, which limits political activities of employees.

Section 12. Board of Directors
Grantee shall provide City with information regarding any changes in the Board of Directors or the management of Grantee no later than ten (10) days from the official change.

Page | 18

Section 13. Notices
Any notices under this Agreement shall be sent to the parties by personal delivery, by facsimile, or by certified mail, return receipt requested, postage prepared in the United States Postal Service at the addresses set forth below. Notice shall be deemed effective upon delivery or transmission if delivered or sent by facsimile and on the third (3rd) day after mailing. The parties designate the following names, titles, addresses, and telephone numbers:

City:

Planning Manager
City of Salinas
Community Development Department – Housing and Community Development Division 65 W. Alisal Street, 2nd Floor
Salinas, California 93901
Telephone: 831-758-7334
Grantee:

Eden Housing Inc.

Andrea Osgood, Senior Vice President of Real Estate Development 22645 Grand Street, Hayward, CA 94541
(510) 247-8103
Section 14. Legal Representation
Each party affirms that it has been represented by legal counsel of its own choosing regarding the preparation and the negotiation of this Agreement and the matters and claims set forth herein, and that each of them has read this Agreement and is fully aware of its contents and its legal effect.

Neither party is relying on any statement of the other party outside the terms set forth in this Agreement as an inducement to enter into this Agreement.

Section 15. Joint Representation
The language of all parts of this Agreement shall in all cases be construed as a whole, according to its fair mean ing, and not strictly for or against any party. No presumptions or rules of interpretation based upon the identity of the party preparing or drafting the Agreement, or any part thereof, shall be applicable or invoked.

Section 16. Warranty of Authority
Each party represents and warrants that it has the right, power, and authority to enter into this Agreement. Each party further represents and warrants that it has given any and all notices, and obtained any and all consents, powers, and authorities, necessary to permit it, and the persons entering into this Agreement for it, to enter into this Agreement.

Section 17. No Waiver of Rights
Waiver of a breach or default under this Agreement shall not constitute a continuing waiver or a waiver of a subsequent breach of the same or any other provision of this Agreement. The failure to provide notice of any breach of this Agreement or failure to comply with any terms of this Agreement shall not constitute a waiver there of. Failure on the part of either party to enforce any provision of this Agreement shall not be construed as a waiver of the right to compel enforcement of such provision or of any other promise. A wavier by City of any one or more of the conditions

Page | 19

of performance within this Agreement shall not be construed as a waiver(s) of any other condition of performance under this Agreement.

Section 18. No Third-Party Rights
The parties do not intend for any third party to obtain a right by virtue of this Agreement.

Section 19. Modification
No amendments to or chan ges to this Agreement may be made, except by a writing expressly authorized and signed by City and Subrecipient.

Section 20. Severability
It is the intent of the parties that in the event that any provision herein is held to be invalid, the remaining provisions shall continue in full force and effect unless enforcement of the Agreement so modified would frustrate the purpose of this Agreement.

Section 21. Further Assurances
Each party agrees to do such further acts and things and do and execute and deliver such additional agreements and instruments as the other may reasonably require consummating, evidence, or confirm the agreements contained herein in a manner contemplated hereby.

Section 22. Entire Agreement
This Agreement constitutes the entire agree ment between City and Grantee and is the final expression of City and Grantee with respect to the included terms and conditions, and as a complete and exclusive statement of the terms and conditions of the agreement. City and Grantee acknowledge that any p rior agreements, promises, negotiations or representations not expressly set forth in this Agreement are of no force and effect. Any amendment to this Agreement shall be of no force and effect unless it is in writing and signed by City and Grantee.

Section 23. Rights and Obligations
By entering into this Agreement, the parties do not intend to create any obligations express or implied other than those set out herein; further, this Agreement shall not create any rights in any party not a signatory hereto.

Section 24. Attorney Fees
In case suit shall be brought to interpret or enforce this Agreement, or because of the breach of any other covenant or provision herein contained, the prevailing party in such action shall be entitled to recover their reasonable attorney fees in addition to such costs as may be allowed by the court.

If awarded, City's attorneys' fees shall be calculated at the market rate.

Section 26. Compliance with Laws
Grantee’s performance under this Agreement shall be in accordance and full com pliance with all applicable federal, state, and local laws and any rules or regulations promulgated thereunder.

EXHIBIT A – Project Scope of Work
EXHIBIT B – Project Budget
EXHIBIT C – Project Timeline

Page | 20

REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

Page | 21

IN WITNESS WHEREOF, as authorized representatives of the CITY OF SALINAS and EDEN HOUSING INC. , a California Limited Liability Company, have executed this Agreement.

City of Salinas Subrecipient:

By: By:

Steven S. Carrigan, City Manager

Andrea Osgood, Senior Vice President of Real
Estate Development

APPROVED AS TO FORM:

By: By:

Christopher A. Callihan, City Attorney [Name], [Title]

Page | 22

EXHIBIT A

PROJECT SCOPE OF WORK

Uses of Funds Predevelopment Period Expenses
Land & Improvements
Legal Acquisition $30,000
Design and Consulting
Architect/Landscape Architect* $1,425,500
Engineering (Civil, Joint Trench, Geotech) * $84,450
Construction Management Services $40,000
Environmental Consulting* $100,000
Indirect Costs
Permit Fees $148,800
Borrower Legal Fees – Organization $6,000
Appraisal $10,000
Market Study $5,500
Soft Costs Contingency $35,000
Finance and Carrying Costs
Predevelopment Loan Interest $233,743
Tax Credits / Syndication Expenses
TCAC Application Fee $2,000
TCAC Allocation / Reservation Fee $21,940
CDLAC Application Fee $600
CDLAC Performance Deposit $100,000
Total $2,243,533
* ARPA funds will be utilized in these pre-development costs.

Page | 23

EXHIBIT B

PROJECT BUDGET

Funding Entity Funding Source Funding Amount
City of Salinas ARPA* $500,000
County of Monterey (Fee Waiver) N/A $26,024
Eden Housing Inc. (Line of Credit) Bank/Financial Entity $1,717,509 Total $2,243,533
*ARPA funds are anticipated to cover the cost of the following scope of work: architectural design, landscape architecture, engineering, and environmental consulting and technical studies.

Page | 24

EXHIBIT C

PROJECT TIMELINE

Task Start Date End Date
Due Diligence February 2023 April 2023
Community Outreach April 2023 July 2023
Preliminary Design February 2023 April 2023
Schematic Design July 2023 September 23
Zoning + Environmental Approvals April 2023 July 2024
Design Development + Contract Documents August 2025 July 2026 Soft Debt Financing Applications July 2024 July 2025
Tax Credit Application February 2026 July 2026
Construction Loan Closing (First Phase) July 2026 January 2027

MEMORANDUM OF UNDERSTANDING RE:

COORDINATION OF RESPONSIBILITIES RELATED TO THE OPERATION OF THE SHARE CENTER
AND DEVELOPMENT OF AFFORDABLE HOUSING AT 845 EAST LAUREL DRIVE IN

SALINAS, CALIFORNIA
This Memorandum of Understanding ("MOU") is entered into as of this 22 day of June 2021 (the "Effective Date"), by and between the City of Salinas, a California charter city and municipal corporation (the “City”) and County of Monterey (the “County”) for the property located at 845 East Laurel Drive Salinas, California 93906 (referred to as “the Property”), presently owned by the County with reference to the following facts:

RECITALS
A. W
HEREAS, in 2017, the City and County began discussions on planning for the future construction and operation of a year-round Homeless Shelter ("Shelter") and permanent supportive/transitional housing ("Housing") at 1220 Natividad Road; and B. WHEREAS, on September 26, 2017 the Salinas City Council ( "Council") and County Board of Supervisors ( "BOS") executed a Memorandum of Understanding ( "MOU") authorizing the opening of the Salinas Winter Warming Shelter (“Warming Shelter”) and agreed to work collaboratively toward the future construction and operation of a Shelter on the Property; and
C. WHEREAS, on March 20, 2018 the Council and BOS directed staff to proceed by formalizing an agreement establishing responsibilities between the two jurisdictions on the development of 1220 Natividad Road (housing site) and 845 East Laurel Drive APN 003-851-043-000 (shelter site); and
D. WHEREAS, on September 25, 2018, the County and City entered into a MOU for the coordination of responsibilities related to the establishment of a Shelter, Housing, and Warming Shelter and agreed to coordinate their staff to expedite the development of a Shelter and Housing and conduct the RFP process for the selection of, and negotiation of agreements with a future operator for the Shelter; and E. WHEREAS, on May 29, 2019, the County was awarded $6,018,100 in funding through the Homeless Emergency Aid Program (“HEAP”) by the Continuum of Care for Monterey and San Benito Counties for the construction of a year-round Shelter at 845 East Laurel Drive; and
F. WHEREAS, on September 15, 2020, after the distribution of a community -wide survey, the County Board of Supervisors and Salinas City Council adopted the name of the Salinas Housing Advancement, Resources & Education Center (“SHARE Center”) for the new Shelter at 845 East Laurel Drive; and
G. WHEREAS, on October 28, 2020, the City released a Request for Proposal ( “RFP”) seeking a qualified service provider to serve as the new SHARE Center operator; and H. WHEREAS, after conducting a rating and ranking process involving a technical panel, Bay Area Community Services (“BACS”) was recommended to be the operator of the 1 of 12
DocuSign Envelope ID: F415BB72-99C9-4EAC-887F-099B022583AC SHARE Center and at a joint meeting of the County Board of Supervisors and Salinas City Council on February 9, 2021, BACS was formally selected; and I. WHEREAS, having learned from experience gained throughout the construction of t he S
HARE Center, the City and County have come to agree that 845 E ast Laurel Drive is the preferred location for future affordable housing especially due to the completion of site preparation and utility work that would help facilitate future development; and J. W
HEREAS, the City and County desire that the proposed affordable housi ng dev
elopment will be sited on the remaining undeveloped areas on the site with the SHARE Center, and further desire that a portion of the property adjacent to the East Laurel Drive pedestrian improvements shall be reserved for potential future recreational uses to the extent feasible without compromising the viability of the affordable housi ng dev
elopment, and delineated in Exhibit A; and
K. W
HEREAS, the City and County desire to extend the MOU and continue coordination of operations for the SHARE Center, facilitate the closure of the Warming Shelter a nd t
ransition occupants to the SHARE Center, and develop affordable housing with a focus on families on the Property.

NOW, THEREFORE BE IT RESOLVED, the purpose of this Agreement is to identify roles and responsibilities between the City and the County for administration of operating the SHARE Center and developing affordable housing with a focus on families (“Housing”) on the Property.

The cost for the operator of the SHARE Center and related services and development of t he Housing not covered by federal or state grants or other private funding will be shared by the City and County, with a final distribution of the costs to be determined at a later date.

ARTICLE 1.

ROLES AND RESPONSIBILITIES
The City and County agree to the following terms and conditions, in order to coordinate their staff to effectively operate the SHARE Center and expedite development of Housing at the Property by conducting an RFP process for the selection of, and negotiation of agreements with, a future developer. The cost for SHARE Center operations and housing not covered by federal and state grants or other private funding will be shared by the City and County, with a final distribution of the costs to be determined at a later date.

Section 1.1 Roles and Responsibilities.

A. County:
a. Subject to funding, the County shall be the Lead Agency in conducting an env
ironmental review of the Property for Housing and the City shall be th e R
esponsible Agency;
b. County shall maintain ownership of the Property;
c. Any future conveyance of the Property must be authorized by the County; d. County shall devote personnel and other resources as may be reasonably required during the RFP process for selection of a future Housing Developer 2 of 12
DocuSign Envelope ID: F415BB72-99C9-4EAC-887F-099B022583AC for the Property and final approval of the RFP.

B. City of Salinas
a. Subject to funding, the City shall provide staff resources to assist and expedite per
mitting of facilities at the Property;
b. Subject to funding, the City shall provide staff resources and shall act as the l
ead project manager and facilitator during the RFP process for the selection of Housing Developer for the Property;
c. City shall devote personnel and other resources as may be reasonably required;

1. City will draft an RFP for the Housing Developer for the Property subject to County approval;

2. City will manage the RFP process;

3. Cit
y will publish and distribute the RFP for Housing Developer for the P
roperty;

4. C
ity will receive RFP bids and determine adequacy and completeness of RFP process;

5. C
ity will document and maintain records associated with the RFP process;

6. Cit
y will work collaboratively with County to respond to any RF P ques
tions, comments or appeals.

C. C
ity and County
a. City and County shall each designate staff who shall regularly meet and coordinate in identifying and applying for funding for SHARE Center Operations, Housing development, and the closure of the Warming Shelter and jointly oversee implementation of the MOU.
b. City and County will work collaboratively to rate and rank RFPs submitted; c. City and County shall ensure that all RFPs are reviewed in a fair and open process. The selection process will be outlined in detail in the RFP and will i
nclude input by County;
d. City and County will make a recommendation for the selection of a Housing Developer to be forwarded to BOS and Council for final approval; e. A f
inal distribution of related costs will be determined at a later date based on f
ederal and state grants and other private funding available for the SHARE Center and Housing;
f. P
roperty and environmental records, reports and studies shall be shared between the County and City as they become available;
g. Project goals will be jointly determined by the City and the County; 3 of 12
DocuSign Envelope ID: F415BB72-99C9-4EAC-887F-099B022583AC h. A c ommunity engagement strategy will be determined by the City with concurrence from the County;
i. City and County staff will continue to work together in drafting contract s for ongoi
ng operations of the SHARE Center;
j. After the approval of the selected developer for Housing by the BOS and C
ouncil, the City shall take the lead, but continue to work with County, as owner of the P roperty, in negotiating and drafting an Exclusive Negotiating Agreement ("ENA") and Ground Lease (“Ground Lease”);
k. T he ENA and Ground Lease must be approved by the BOS prior to entry into those agreements with the selected developer; and
l. The City and County will work together through the Lead Me Home Leadership Council in discussions on SHARE Center, Housing, and federal and state funding, and establishment of a multi -jurisdictional, philanthropic effort to implement the MOU and initiate similar efforts throughout Monterey County.

Section 1.2 Right of Entry.

The City and its consultants shall have full rights to enter upon the identified p roperty during normal business hours to conduct inspections and investigations in accordance with this Agreement. In connection with such entry and investigation, the City shall:
a. repair and restore any damage it may cause;
b. indemnify, defend and hold the County and the BOS, officers, employees and agents harmless from any and all claims, liabilities, damages, losses, expenses, costs and fees (including attorneys’ fees and costs), with th e
ex
ception of any injury or death to City staff or its consultants which may proximately arise out of the County’s or its consultants’ entry upon the Property or the investigation(s) and test(s) which the City may conduct; arising out of the negligent or intentional acts of the County or dangerous conditions on the Property for which the County should know or have known to exist, provided, however, that this indemnity shall not apply to matters arising from the results of the City’s investigations, tests and inspections (e.g., this indemnity shall not apply to any diminution in value or remediatio n
c
osts incurred by the City if the County’s investigations were to discover an env
ironmental condition that required remediation).

A
RTICLE 2.

GENERAL CONDITIONS
Section 2.1 General Compliance.

City and County agree to comply with all applicable federal, State and local laws and regulations governing public agencies, including any necessary environmental reviews and/or CEQA/NEPA analysis. Documentation of such compliance shall be made available for review by the City and County upon request.
4 of 12
DocuSign Envelope ID: F415BB72-99C9-4EAC-887F-099B022583AC Section 2.2 Administrative Amendments.

This MOU may be amended by a written administrative amendment executed by the City Manager on behalf of the City and, County Administrative Officer or Assistant County Administrative Officer on behalf of the County, subject to any required State or federal approval, provided that such administrative amendments do not substantively change the overall purpose of this Agreement.

Section 2.3 Term.

The term of this Agreement (the "Term") shall start as of the Effective D ate and shall terminate when the Ground Lease is entered into between the County and a selected developer or when the Projects are deemed by the County and the City to be complete unless extended by a written amendment approved by the Council and BOS.

Section 2.4 Termination.

This Agreement may be terminated by either the City and County upon a written notice given thirty (30) days in advance.

Section 2.5 Warming Shelter.
a. During the Term of this MOU, the City and County will continue to work together on overseeing operations at the Warming Shelter, located at 111 Wes
t Alisal Street, Salinas, California until the SHARE Center is fully operational (open for business and transition of shelter occupants completed).
b. The parties agree to coordinate on the closure and demolition of th e W
arming Shelter.

ARTICLE 3.

ADMINISTRATIVE REQUIREMENTS
Section 3.1 Documentation and Record-Keeping.
a. Records to be Maintained. The City and County shall maintain all records and such records shall include but not be limited to:
(i) Records providing a full description of each activity undertaken; (ii) Records required to document the solicitation and select ion of a developer and operator.
(iii) Records required by funding agencies related to implementation of the MOU.
b. Retention. The City and County shall retain all records pertinent to services performed and expenditures incurred under this Agreement for a period of one (1) year after the termination of all activities under this Agreement. c. Property Records. The County shall supply the City with any Property related documents for City review.
5 of 12
DocuSign Envelope ID: F415BB72-99C9-4EAC-887F-099B022583AC A
RTICLE 4.

PERSONNEL AND PARTICIPANT CONDITIONS
Section 4.1 Conduct.
a. Assignability. Neither party shall assign or transfer any interest in this Agreement without the prior written consent of the other party, at its sole discretion.
b. Hatch Act. The City and County agree that under this Agreement, no funds shall be provided or personnel employed in any way or to any extent engaged in the conduct of political activities that would violate 5 U.S.C. 15. c. Conflict of Interest. The City and County each agree to abide by t he pr
ovisions of 24 CFR 570.611 with respect to conflicts of interest, and each covenants that it presently has no financial interest and shall not acquire any financial interest, direct or indirect, which would conflict in any manner or degree with the performance of services required under this Agreement.

The City and County each further agrees that in the performance of this Agreement that no person having such a financial interest shall be em
ployed or retained by the City and County. These conflict of interest provisions apply to any person who is an employee, agent, consultant, officer, or elected official or appointed official of the City and County, or of any designated public agencies or entities.

A
RTICLE 5.

ENVIRONMENTAL CONDITIONS
Section 5.1 Environmental Responsibilities Generally.

The County (Lead Agency), with the City’s (Responsible Agency) oversight, will carry out the Phase I and Phase II (if needed) environmental assessments of the Property in compliance with all federal and State laws and regulations, including any necessary environmental reviews and/or CEQA/NEPA analysis not otherwise specifically set forth below.

Section 5.2 Applicable Laws and Regulations.

The County and City agree to comply with the following laws and regulations insofar as they apply to the performance of this Agreement:
a. Clean Air Act, 42 U.S.C. 7401 through 7414
b. Federal Water Pollution Control Act, as amended (33 U.S.C. 1318) relating to inspection, monitoring, entry, reports, and information, as well as other requirements specified in said Section 114 and Section 308, and all regulations and seq.)
.
c. Flood Disaster Protection Act of 1973 (P.L. 93-234) in regard to the sale, lease or other transfer of land acquired, cleared or improved under the 6 of 12
DocuSign Envelope ID: F415BB72-99C9-4EAC-887F-099B022583AC terms of this Agreement, as it may apply to the provisions of this Agreement.
d. Environmental Protection Agency Lead-Based Paint Regulations. e. Historic Preservation requirements set forth in the National Historic Preservation Act of 1966, as amended (16 U.S.C. 470) and the procedures set forth in 36 CFR 800, et seq. In general, this requires concurrence from the State Historic Preservation Officer for all rehabilitation and demolition of historic properties that are fifty (50) years old or older or that are included on a federal, State, or local historic property list.

A
RTICLE 6.

OTHER PROVISIONS
Section 6.1 Entire Agreement.

This Agreement contains all the terms and conditions agreed upon by the parties.

No other understandings, oral or otherwise, regarding the subject matter of this Agreement shall be deemed to exist or to bind any of the parties hereto.

Section 6.2 Notices.

Formal notices, demands and communications (other than day to day routine communications) between the City and the County shall be sufficiently given if, and shall not be deemed given unless: (i) dispatched by certified mail, postage prepaid, return receipt requested, (ii) sent by express delivery or overnight courier service with a delivery receipt, (iii) per
sonally delivered with a delivery receipt, or (iv) sent by electronic mail with a copy delivered by one of the previous three methods, to the office of the parties shown as follows, or such other address as the parties may designate in writing from time to time:

CITY:

City of Salinas With a copy to: City Attorney
Attn: Megan Hunter City of Salinas
65 W. Alisal Street, 2nd Floor 200 Lincoln Avenue
Salinas, CA 93901 Salinas, CA 93901
Email: [email protected] Email: [email protected] CO
UNTY:

County of Monterey
Attn: Nick Chiulos, Assistant County Administrative Officer 168 W. Alisal Street, 3rd Floor
Salinas, CA 93901
Email: [email protected]
7 of 12
DocuSign Envelope ID: F415BB72-99C9-4EAC-887F-099B022583AC Such written notices, demands and communications shall be effective on the date shown on the delivery receipt as the date delivered or the date on which delivery was refused.

Section 6.3 Conformance with Federal and State Regulations.

Should federal or State regulations touching upon this MOU be adopted, amended or revised during the term hereof, this MOU is subject to modification to assure conformance with such federal or State requirements.

Section 6.4 Severability.

If any term of this MOU is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the provisions shall continue in full force and effect.

Section 6.5 Headings and Captions.

Paragraph titles or captions contained herein are inserted as a matter of convenience and for reference, and in no-way define, limit, extend or describe the scope of this MOU or any provision thereof.

Section 6.6 No Third-Party Beneficiaries.

There are no intended third-party beneficiaries to this Agreement.

Section 6.7 Amendments.

This MOU may not be modified, supplemented, or amended unless in writing by the parties. Any modification, supplementation, amendment, or waiver must be signed by both parties.

Section 6.8 Costs and Expenses.

Each party shall be responsible for its own costs and expenses in connection with any activities and negotiations undertaken in connection with this MOU, and the performance of each party’s obligations under this MOU. The City and County will keep track of any costs and may consider these costs a “contribution” to the construction and operation of the Property.

Section 6.9 No Commissions.

Each party represents to the other that is has not retained, and shall not retain, the services of any broker, agent or finder with respect to the Property or in connection with any matters relating to this Agreement , and agrees to hold the other party harmless from and against any claim for commission, fee, or other remuneration by any broker, agent, or finder under any claimed retainer for services with respect thereto.

Section 6.10 Governing Law; Venue.

This Agreement shall be governed by and construed in accordance with the laws of the State of California without reference to choice-of-law principles, and venue for any action 8 of 12
DocuSign Envelope ID: F415BB72-99C9-4EAC-887F-099B022583AC under this Agreement shall be in the Superior Court of the County of Monterey, subject to any motion for transfer of venue.

Section 6.11 Counterparts.

This MOU may be executed in counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same agreement.

Section 6.12 Non-Recourse Agreement.

No member, official, employee, agent, or consultant of any party to this MOU shall be personally liable to any other party, or any successor in interest or person claiming by, through or under any party, in the event of any default or breach, or for or on account of any amount which may be or become due, or in any claim, cause or obligation whatsoever under the terms of this MOU.

Section 6.13 Actions by the City and County.

Whenever this MOU calls for or permits the approval, consent, authorization or waiver of the City or County, the approval, consent, authorization, or waiver of the City Manager of the City , or the Assistant County Administrative Officer o f the County , shall constitute the approval, consent, authorization or waiver of the City /County without further action of the City Council or Board of Supervisors, including amendments to the MOU , subject to any required State or federal approval, provided that such administrative amendments do not substantively change the overall purpose of this MOU. .

SIGNATURES ON FOLLOWING PAGE
9 of 12
DocuSign Envelope ID: F415BB72-99C9-4EAC-887F-099B022583AC IN WITNESS WHEREOF, this Agreement has been executed by the parties as of the Effective Date.

CI
TY:

CI
TY OF SALINAS, a municipal corporation
By:

Steven S. Carrigan, City Manager
APPR
OVED AS TO FORM:

By:

Christopher A. Callihan, Esq. City Attorney
COUNT
Y:

By:

Nicholas C hiulos, Assistant County Administrative Officer APPR
OVED AS TO FORM:

By:

Anne K. Brereton, Deput y County Counsel
10 of 12
DocuSign Envelope ID: F415BB72-99C9-4EAC-887F-099B022583AC

EXHIBIT A
11 of 12
DocuSign Envelope ID: F415BB72-99C9-4EAC-887F-099B022583AC 0 100 200
FEET

COUNTY OF MONTEREY

RESOURCE MANAGEMENT AGENCY

PUBLIC WORKS DEPARTMENT
MAP PREPARED: 6/10/2021
R:\RMA IT\GIS\Mapping DATA\Map_documents\Public Works\Facilities\County_Owned_Property_ELaurel_Zoom.mxd LEGEND
County Property
Boundary
Developed County
Property
Undeveloped/Vacant
County Property
Land leased/sold to City
of Salinas
Area subject to MOU
Assessor's Tax Parcel
1 INCH EQUALS 63 FEET.

MONTEREY COUNTY OWNED PROPERTY
BASEMAP: GOOGLE ORTHOIMAGERY 6IN 2015
COORDINATE SYSTEM:

NAD 1983 STATEPLANE CALIFORNIA IV FIPS 0404 FEET
*SOURCE: MONTEREY COUNTY PW- REAL PROPERTY &FACILITIES.

NOTE: COUNTY-OWNED PROPERTY WITHIN CITY OF SALINAS LIMITS. "
"
"
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VIETNAM VET MEMORIAL

CONVEYED TO
CITY OF SALINAS 5-3-2018
003-851-042-000
003-851-005-000

CITY OF SALINAS

UPPER CARR LAKE
SHARE Center
003-851-043-000

1.87 ACRES
PW E. LAUREL YARD

DEVELOPED AREA

16.24 ACRES

E LAUREL DR

PEDESTRIAN IMPROVEMENTS
(SIDEWALK)
AREA D

AREA E

AREA G

3.7 ACRES
AREA G

10.6 ACRES

AREA A
100 FT BUFFER OF POWER LINE
100 FT BUFFER OF POWER LINE
TOWER
TOWER
TOWER

EARTHEN SWALE
BASIN

POTENTIAL FUTURE RECREATION DEVELOPMENT

1.7 ACRES

VETERANS
W
AY
(COUNTY
DRIVEW
AY)

9.4 ACRES

SOCCER FIELD LEASE AREA A
25 YR LAND LEASE TO CITY OF SALIINAS
003-851-021-000

26.755 ACRES

MONTEREY COUNTY
E. LAUREL YARD FACILITIES & SOCCER COMPLEX
003-851-043-000
N a t iv id a d C ree k
IN VICINITY OF 855 E LAUREL DR, SALINAS CA
12 of 12
DocuSign Envelope ID: F415BB72-99C9-4EAC-887F-099B022583AC City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#23-165, Version: 1
United States Department of Housing and Urban Development HOME Investment Partnership Program American Rescue Plan Act Allocation Plan
Approve a Resolution authorizing the submission of an updated HOME Investment Partnership Program American Rescue Plan (HOME-ARP) Allocation Plan (AP) to the United States Department of Housing and Urban Development; and authorize the City Manager or designee to execute any required Agreements necessary to support the acceptance of funds and implementation; and authorize an increase of up to $2,772,835 to the HOME-ARP fund appropriation and corresponding revenue budget.

City of Salinas Printed on 3/17/2023Page 1 of 1
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CITY OF SALINAS

STAFF REPORT

DATE: MARCH 21, 2023
FROM: MEGAN HUNTER, DIRECTOR
DEPARTMENT: COMMUNITY DEVELOPMENT DEPARTMENT

THROUGH ROD POWELL, PLANNING MANAGER
LUIS OCHOA, SR. COMMUNITY DEVELOPMENT ANALYST

PREPARED BY: HILDA PERALTA, COMMUNITY DEVELOPMENT ANALYST TITLE: UNITED STATES DEPARTMENT OF HOUSING AND URBAN

DEVELOPMENT HOME INVESTMENT PARTNERSHIP

PROGRAM AMERICAN RESCUE PLAN ALLOCATION PLAN

RECOMMENDED MOTION:

A motion to approve a Resolution authorizing:

1. the submission of an updated HOME Investment Partnership Program American Rescue Plan (HOME-ARP) Allocation Plan (AP) to the United States Department of Housing and Urban Development; and

2. the City Manager or designee to execute any required Agreements necessary to support the acceptance of funds and implementation of its HOME-ARP AP; and

3. an increase of up to $2,772,835 to the HOME-ARP fund appropriation and corresponding revenue budget.

EXECUTIVE SUMMARY:

In Fiscal Year 2021 , the City of Salinas (City), as a United States Department of Housing and Urban Development (HUD) entitlement jurisdiction , was allocated $2,918,774 of a one-time HOME American Recovery Plan (HOME-ARP) funding from HUD. HOME-ARP funds must be used to p rimarily benefit individuals or families who meet established qualifying population criteria.

As described in HUD Notice CPD-21-10: Requirements of the Use of Funds in the HOME - American Rescue Plan Program, the four qualifying populations include: 1) families or individuals who are homeless; 2) currently housed and at risk of homelessness; 3) those fleeing or attempting to flee domestic violence, sexual assault victims, stalking or human trafficking populations ; and 4) those at greatest risk of housing instability where providing support services or assistance would prevent homelessness. HOME-ARP funds may be used to fund four key activities: 1) production and preservation of affordable housing ; 2) tenant-based renta l assistance ; 3) provision of supportive services such as homeless prevention and housing counseling ; 4) and the acquisition and development of non-congregate shelter.

BACKGROUND:

In order to receive a HOME-ARP allocation, the City is required to develop an Allocation Plan (AP) derived from solicited community engagement with and input from community service providers, stakeholders, non-profit and for -profit developers, the general public and other organizations serving the four main qualifying populations. In accordance with the HOME-ARP requirements, development of the AP must include a consultation process, a needs assessment, and a gap analysis which is then used to develop a qualified summary of the City’s planned use of funds and an estimate of housing units to be produced and/or created.

On October 4, 2022, the Salinas City Council approved the submission of an initial HOME-ARP AP to HUD. Following this submission, on December 5, 2022, HUD staff requested that the City provide additional perspective and information prior to granting final AP approval. More specifically, HUD staff recommended that the City consider the stipulation of allowable preferences and conduct additional consultation with community stakeholders in order t o fully demonstrate its efforts to obtain input and perspective in support of the proposed AP , incorporate any applicable revisions, and resubmit its plan for final review by the stipulated March 31, 2023 deadline. In consideration of HUD’s recommendati ons, t he City’s updated AP includes an expanded consultation with stakeholders, a complete gap analysis of all qualifying populations, and sets preferences among the qualifying populations to prioritize applicants for HOME -ARP projects or activities. Based upon HUD’s recommendation and the City’s newly incorporated revisions, a second public hearing and accompanying City Councils approval is now required prior to resubmittal.

DISCUSSION:

Consultation, Assessment, and Gap Analysis

As part of its lengthy, required HOME-ARP AP consultation process, City staff diligently connected, engaged, and consult ed with the local CA -506 Continuum of Care (CoC); homeless social services, and domestic violence service providers ; veterans’ groups ; public housing agencies; individuals defined as members of each qualifying population; agencies that address fair housing, civil rights, and the needs of persons with disabilities; other community stakeholders; and members of the general public. To achieve the robust response necessary to formulate a compliant and considerate HOME-ARP AP, staff utilized various methods to gather information and targeted engagement opportunities to inform the community and request input. This included targeted participation in community and regional partnership meetings, one-on-one consultations, email blasts, social media announcements, online surveys, and website postings. These consultations revealed strong support for permanent supportive housing and supportive service activities such as case management, housing counseling, substance abuse treatment, and financial assistance for housing related costs.

Opportunities for public participation and comment on the planning, development, and review of the proposed AP were pu blicized and disseminated in accordance with the City’s Citizen Participation Plan (CPP). Public participation during the development of the AP included a 30-day public comment period, community meetings, an electronic survey, newspaper ads, social media announcements, and two public hearing s. Upon completion of the consultation process and evaluation of community input, it was determined that permanent supportive housing through the rehabilitation of motels or hotels was scored as the highest priority followed by a secondary

priority for supportive service activities supporting mental health and substance abuse treatment, transportation, and financial assistance for housing related costs.

In accordance with HOME-ARP guidance, the City’s AP needs assessment and gap analysis also included an evaluation of the size and demographic composition of each HOME-ARP qualifying population. Data from the 2022 Monterey County Homeless Count, 2020 American Community Survey, 2021 Continuum of Care Housing Inventory Count, and the 2014-2018 Comprehensive Housing Affordability report were each used to analyze and determine the unmet needs of each qualifying populations. This resulted in a determination that t he City currently has fourteen (14) projects with bed inventory (8 emergency shelter, 2 rapid rehousing, 3 transitional housing, and 1 permanent supportive housing) and a resulting total capacity of 501 beds. Based on this analysis, the City has a significant need gap in beds needed for adult households without children.

Determination of Community Need

Locally, the Continuum of Care (C oC) is coordinated by the Coalition of Homeless Services Providers (CHSP) in partnership with the City of Salina s. In 2009, the CoC developed an initial Lead Me Home Plan (LMHP), to serve as a framework to guide local jurisdictions (counties and cities), service providers, and other key stakeholders in maximizing available resources in an effort to strategically impact and reduce homelessness. The most recent update to the LMHP includes a data-focused, milestone-based action plan which establishes measurable goals and targets focused on reducing local homelessness by 50% over the next five years (July 2021 through June 2026).

This plan sets out to align available funding to support the activities identified in each year of the action plan and includes an essential year-one activity of continued investment in acquisition and conversion of motels to affordable, permanent supportive housing units available through the State of California ’s Homekey Program . Additional LMHP goals include the need for increased investment in housing navigation services and housing focused case management. These collaborative efforts are highlighted in the City’s HOME-ARP AP as it serves an important regional framework with specific target goals . Additionally, input obtained from local service providers during the City’s HOME-ARP AP consultation process also revealed a strong need and preference to support outreach, m ental health services , case management, housing and financial counseling, and financial assistance. Each of which is addressed within the permanent supportive nature of the Homekey model.

The City of Salinas, in partnership with Shangri-La Construction, L P. and Step Up on Second Street, Inc., facilitated the acquisition of three Homekey sites to provide a total of 204 new permanent supportive housing units. Each site will offer residents permanent, affordable housing coupled with supportive services including case management, employment assistance, referrals to mental health services, peer support training, and transportation services. Annual costs to provide this necessary supportive housing environment is just under $6,000 per unit per year.

Recommended Plan Allocation

One-time HOME-ARP funding must be spent by 2030. In consideration of the information and data gathered and assessed during the HOME-ARP AP development process s taff are recommending that 15% of the City’s HOME-ARP allocation ($437,816.10) be used for allowable program administration and planning activities and that the allocation’s remaining 85% ($2,480,957.90) be directed toward much needed supportive service funding associated with two of three Homekey permanent supportive ho using sites (Step Up on Sanborn and Step Up on Fairview) as well as other “bed generating ” projects. It is estimated that up to ninety-nine (99)

Homekey units for qualifying populations could be supported with the recommended HOME-ARP Allocation Plan. This recommendation is strongly supported by the robust input provided by local service providers , stakeholders, and other community organizations during the consultation process.

Based on the need and gap analysis and the recommendation of HUD staff, the City also proposes to exercise the allowable identification of preferences among the qualifying populations to prioritize applicants for HOME-ARP projects or activities. More specifically, the City’s AP will prioritize single adults who meet the definition of homeless (as defined in 24 CFR 91.5) for having the greatest need for housing and supportive services. All potential interested and eligible Homekey residents benefitting from this proposed HOME -ARP fund use would be referred through the local CARS and HMIS entry systems administered by the CHSP. Veterans and those fleeing, or attempting to flee domestic violence, or human trafficking are considered to be the second highest priority qualifying population and are also eligible to receive direct refer rals to housing partners.

CEQA CONSIDERATION:

The City of Salinas has determined that authorizing the submittal of the HOME-ARP AP to HUD is not a project as defined by the California Environmental Quality Act (CEQA) Guidelines section 15378 as this matter does not cause a direct or indirect physical change on the environment .

Subsequent discretionary projects resulting from this action will be assessed for CEQA applicability. Activities utilizing federal funds are also subject to the National Environ mental Policy Act (NEPA) and will be evaluated prior to expending any funds.

STRATEGIC PLAN INITIATIVE:

The HOME-ARP Program is intended to assist qualifying populations with permanent housing options and supportive services. Submission of the City’s HOME-ARP AP supports the City of Salinas 2022 -2025 Strategic Plan Strategies and Goals of Housing/Affordable Housing and Effective.

DEPARTMENTAL COORDINATION:

The HOME-ARP AP is administered by the City’s Community Development Department Housing and Community Development Division with coordinat ion and support from the Finance Department and City Attorney.

FISCAL AND SUSTAINABILITY IMPACT:

It is estimated that the City is eligible to receive a total HOME-ARP allocation of $2,918,774 upon approval of its Allocation Plan is approved. Of this amount, the City has previously received and initial, partial amount of $145,938.70 to support development and initial administrative costs associated with the AP. The City’s remaining HOME-ARP allocation balance of $2,772,835 will be appropriated as an increase to the existing HOME-ARP Program fund.

ATTACHMENTS:

Resolution
HOME-ARP Allocation Plan – revised
PPT HOME-ARP Allocation Plan

1 RESOLUTION NO. (N.C.S.)

A RESOLUTION OF THE SALINAS CITY COUNCIL
APPROVING THE CITY’S HOME INVESTMENT PARTNERSHIP PROGRAM-AMERICAN

RESCUE PLAN ALLOCATION PLAN AND AUTHORIZING SUBMITTAL TO THE UNITED

STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

WHEREAS, the United States Department of Housing and Urban Development’s (HUD) HOME Investment Partnerships Program (HOME), provides the City of Salinas (City) with a federal entitlement of HOME funds to finance the preservation and production of affordable housing; and

WHEREAS, the American Rescue Plan (ARP) Act of 2021, awarded the City an allocation of $2,918,774 in HOME American Rescue Plan (HOME-ARP) grant funds to address the need of qualifying populations for housing and supportive services; and

WHEREAS, the City was allocated an initial partial amount of $145,939 for the administration and planning of the HOME-ARP Allocation Plan; and

WHEREAS, as a requirement of receiving HOME -ARP funds, the City is required to develop a HOME-ARP Allocation Plan (AP) comprised of a summary of the consultation and public participation process, a needs assessment and gap analysis, a summary of the planned use of the funds, and an estimate of the number of housing units the City will produce or preserve with the funds; and

WHEREAS, the City, through targeted, robust community engagement and the solicitation of input and data, has prepared a HOME-ARP AP; and

WHEREAS, the HOME -ARP AP proposes to allocate funds towards supportive services as further described and defined in the HOME-ARP AP; and

WHEREAS, in accordance with the City’s Citizen Participation Plan, an initial draft of the HOME-ARP AP was published on September 3, 2022, for a 30-day public comment period and finalized with a public hearing at City Council; and

WHEREAS, on October 4, 2022, City Council held a public hearing to obtain further comment and consider the initial draft HOME-ARP AP and authorized the initial submittal of the HOME-ARP AP to HUD for review and approval; and

WHEREAS, on December 5, 2022, HUD recommended City staff update the City’s HOME-ARP AP to expand areas related to preferences, gap analysis, and consultation for resubmittal by the final deadline of March 31, 2023; and

WHEREAS, staff have updated the City’s HOME -ARP AP to include all of HUD’s recommendations and a draft of the revised HOME-ARP AP was published on February 11, 2022, for a 30-day public comment period; and

WHEREAS, on March 21, 2023, City Council held a second public hearing to obt ain further comment and consider the revised draft HOME -ARP AP and authorized its submittal to HUD for final review and approval; and

2 WHEREAS, following final HUD approval of the HOME -ARP AP, the City will receive the remaining balance of $2,772,835 of its allocated HOME-ARP funds; and

WHEREAS, the City Council desires to allocate $437,816 of its HOME -ARP allocation funds towards program planning and administration and $2,480,958 toward the provision of supportive services under proposed preferences and for all qualifying populations as defined by HUD Notice: CPD -21-10; and

WHEREAS, the Salinas City Council desires to approve the proposed HOME -ARP AP and authorize its submission to HUD for final approval prior to the March 31, 2023 deadline.

NOW, THEREFORE, BE IT RESOLVED that the Salinas City Council hereby authorizes the submission of an updated HOME-ARP AP to HUD for final review and approval; and

BE IF FURTHER RESOLVED that the Salinas City Council authorizes the City Manager or designee to execute any required Agreements necessary to support the acceptance of funds and implementation of its HOME-ARP AP; and

BE IF FURTHER RESOLVED that the Salinas City Council authorizes an increase of $2,772,835 to the HOME-ARP fund appropriation and corresponding revenue budget; and

PASSED AND APPROVED this March 21, 2023, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

APPROVED:

______________________________
Kimbley Craig, Mayor

ATTEST:

_________________________
Patricia M. Barajas, City Clerk

CITY OF SALINAS

HOME-ARP ALLOCATION PLAN
Community Development Department-Housing Division
65 W. Alisal
Salinas, CA 93901
(831) 758-7334

February 11, 2023

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DRAFT

HOME-ARP ALLOCATION PLAN

HOME Investment Partnerships (HOME) Program
American Rescue Plan

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CITY COUNCIL

Kimbley Craig
Mayor

Carla Viviana González
Councilmember

Tony Barrera
Councilmember

Steve McShane
Councilmember

Orlando Osornio
Councilmember

Andrew Sandoval
Councilmember

Anthony Rocha
Councilmember

PUBLIC CONTACT INFORMATION
City of Salinas
Housing & Community Development Department
Attn: Megan Hunter, Director
65 W. Alisal Street, 2nd Floor
Salinas, CA 93901
(831) 758-7206

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Table of Contents
Executive Summary .................................................................................................................... - 4 - Introduction ................................................................................................................................. - 4 - HOME-ARP Eligible Qualifying Populations and Activities .................................................... - 5 - Stakeholder Consultation and Public Participation .................................................................... - 5 - Consultation Survey .................................................................................................................... - 9 - Summary of Feedback Received from Consulted Organizations ............................................. - 16 - Public Participation ................................................................................................................... - 16 - Summary of Feedback Received from Public .......................................................................... - 23 - Needs Assessment and Gap Analysis ....................................................................................... - 23 - Size and Demographic Composition of HOME-ARP Qualifying Populations ........................ - 24 - Unmet Housing and Service Needs of Qualifying Populations ................................................ - 32 - HOME-ARP Activities ............................................................................................................. - 32 - HOME-ARP Production Housing Goals .................................................................................. - 34 - Preferences ................................................................................................................................ - 34 - HOME-ARP Refinancing Guidelines ....................................................................................... - 35 - Appendix A Certifications and SF-424, SF-424B, and SF-424D ............................................ - 36 -

Figures
Figure 1 – Populations Serviced ............................................................................................... - 10 - Figure 2 – Eligible Populations Ranked from Highest to Lowest Priority ............................... - 11 - Figure 3 – Rank Supportive Services Based on the Highest to Lowest Priority ...................... - 12 - Figure 4 – Rank Needs for Housing Based on Highest Priority to Lowest Priority ................. - 13 - Figure 5 – Comments on Other Eligible Uses .......................................................................... - 14 - Figure 6 – Salinas Resident Verification .................................................................................. - 18 - Figure 7 – Eligible Activities Ranked from Highest to Lowest Priority .................................. - 19 - Figure 8 – Eligible Populations Ranked from Highest to Lowest Priority ............................... - 20 - Figure 9 – Supportive Services Ranked from Highest to Lowest Priority ............................... - 21 - Figure 10 - Other Comments .................................................................................................... - 22 - Tables
Table 1 Housing Inventory and Gap Analysis .......................................................................... - 25 - Table 2 Census Demographics for Veterans ............................................................................. - 27 - Table 3 Non-Homeless Housing Inventory and Gap Analysis ................................................. - 30 - Table 4 HOME-ARP Funding Activities.................................................................................. - 32 -

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EXECUTIVE SUMMARY
The City of Salinas was allocated $ 2,918,774 of HOME American Recovery Plan Act (HOME - ARP) funding from the U .S. Department of Housing and Urban Development (HUD) in Fiscal Year 2021. HOME-ARP funds will be used to assist all the qualifying populations described in the Notice CPD -21-10: Requirements of the Use of Funds in the HOME -American Rescue Plan Program. Funding is earmarked to perform four key activities: (1) development and support of affordable housing, (2) tenant -based rental assistance (TBRA), (3) provision of supportive services; and (4) acquisition and development of non-congregate shelter units.

To receive the HOME -ARP allocation, the City of Salinas consulted with agencies and service providers to identify the unmet needs and gaps in housing and service delivery systems for all qualifying populations . The Allocation Pla n (AP) set forth describes how the City of Salinas intends to expend HOME-ARP funds to address the needs of all qualifying populations. The final AP will be submitted to HUD as a substantial amendment to its Fiscal Year 2021 Annual Action Plan, and includes the following required elements:

1. A summary of the consultation process including methods used and feedback received.

2. A summary of the public participation process including methods used and feedback received.

3. A needs assessment of all the qualifying populations including demographic composition.

4. A gap analysis of the unmet housing and service needs of each qualifying population.

5. A table including HOME-ARP funding distribution for each eligible project or activity.

6. An estimate of affordable housing units that will be produced or preserved.

7. A description of preferences.

8. HOME-ARP Refinancing Guidelines.

9. Certifications and SF-424, SF-424B and SF-424D Forms.

INTRODUCTION
The local CA-506 Monterey and San Benito County Continuum of Care (CoC) is coordinated by the Coalition of Homeless Services Providers (CHSP), in partnership with the City of Salinas, the County of Monterey Department of Social Services, the County of Monterey Health Department, and the County of San Benito Health and Human Services Department. In 2009, the CoC developed a framework to guide jurisdictions (counties and cities), providers, and other key stakeholders to maximize the impact on reducing homelessness.

The Lead Me Home action plan establishes measurable goals and targets to reduce homelessness by 50% over the next five years from July 2021 through June 2026. This 50% reduction will be achieved through three key strategies (1) increase participation in homeless solutions by leaders and key stakeholders from across the region, (2) improve the performance of the homelessness response system, (3) expand service-oriented responses to unsheltered homelessness.

This plan sets out to align available funding to support the activities identified in each year’s action plan. Year one of the action plan will cover fiscal year starting July 2021 to June 2022. An essential activity for year one is to continue investing in acquisition and conversion of motels by applying

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to Homekey program funds, available through the State of California, for projects in Salinas which will provide permanent housing for people experiencing homelessness. Another important action is to increase investment in rapid rehousing, navigation services, and housing focused case management to improve the ability to secure housing for participants exiting an emergency shelter.

These collaborative efforts are highlighted in the allocation plan as it serves an important regional framework with specific target goals.

HOME-ARP ELIGIBLE QUALIFYING POPULATIONS AND ACTIVITIES CPD Notice 21 -10 Requirements for the Use of Funds in the HOME -American Rescue Plan Program outlines the requirements for funds appropriated under the American Rescue Plan Act of 2021 for the HOME Partnership Program (HOME) to provide homelessness assistance and supportive services. The American Rescue Plan Act defines qualifying individuals or families as:
• Homeless, as defined in section 24 CFR 91.5;
• At risk of homelessness, as defined in section 24 CFR 91.5; • Fleeing or attempting to flee domestic violence, dating violence, sexual assault, stalking, or human trafficking, as defined by HUD in 24 CFR 5.2003; • Other populations (i.e., individuals and families) as defined in 24 CFR 91.5, where providing supportive services or assistance would:
o Prevent a family’s homelessness;
o Serve those with the greatest risk of housing instability. • At greatest risk of housing instability as defined in 24 CFR 91.5.

HOME-ARP funds can be used to benefit qualifying populations through:

1. Tenant-Based Rental Assistance (TBRA)

2. Development and support of affordable housing

3. Supportive services provisions

4. Acquisition and development of non-congregate shelter

5. Nonprofit capacity building and operating assistance

6. Program planning and administration

STAKEHOLDER CONSULTATION AND PUBLIC PARTICIPATION
The City of Salinas consulted with service providers from multiple agencies in preparing this HOME-ARP Allocation Plan. The agencies that were consulted provide services to all qualifying populations and include the Continuum of Care, homeless and domestic violence service providers, veteran groups, public housing agencies, and other private agencies that address fair housing, civil rights, and the needs of persons with disabilities. The consultation process was coordinated by Housing Division staff through various methods including regional partnership meetings, email blast s, an online survey, social media posts, website an nouncement, and community meetings.

Agencies and service providers received an electronic survey link through email which requested information about the qualifying populations they service, including an estimated number of

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participants they service each year. The s urvey allowed participants to rank eligible activities, qualifying populations, and supportive services from highest priority to lowest priority.

Furthermore, the HOME -ARP survey was emailed to the city’s housing distribution group with over 170 partners ranging from private and public entities that service all qualifying populations.

Survey participants were also given the opportunity to schedule a 1 -on-1 consultation to discuss their feedback. The following table summarizes the names and types of organizations who were targeted during the consultation process, a summary of their feedback, and the methods by which they were contacted:

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Organizations Consulted by
= VIRTUAL

SESSION

= EMAIL = SURVEY

= MEETING
Type and Method of Consultation

QP1 = Homeless QP2 = At risk of Homeless
QP3 = Domestic Violence QP4 = Other Population

Organization Organization
Type
Qualifying
Population
Consultation
Method Feedback Summary

1. Bay Area Community
Services
Nonprofit
Service Provider QP1 QP2

None Received

2. YWCA Monterey
County
Nonprofit
Service Provider QP3
SURVEY COMPLETED |
ADDITIONAL COMMENTS: I would like to
add victims of human trafficking.

3. Step Up on Second
Street (Step-Up)
Nonprofit
Service Provider QP1 QP2

SURVEY COMPLETED |
ADDITIONAL COMMENTS: Move-in
assistance and eviction protection assistance

4. Housing Authority
of the County of
Monterey
Nonprofit
Public Housing
Agency
QP1 QP2
QP3 QP4

SURVEY COMPLETED |
ADDITIONAL COMMENTS: Legal mitigation
funds

5. Coalition of Homeless
Services Providers
Nonprofit
Service Provider QP1 QP2

SURVEY COMPLETED |
ADDITIONAL COMMENTS: Legal mitigation
funds

6. Mid Pen Housing Nonprofit
Service Provider
QP1 QP2
QP3 QP4
None Received

7. First Community
Housing
Nonprofit
Fair Housing
QP1 QP2
QP3 QP4
SURVEY COMPLETED |
ADDITIONAL COMMENTS: None Received

8. Interim, Inc Nonprofit
Service Provider QP1 QP2

SURVEY COMPLETED |
ADDITIONAL COMMENTS: Development of
affordable housing and rent subsidies

9. Downtown Streets
Team
Nonprofit
service Provider QP1 QP2
SURVEY COMPLETED |
ADDITIONAL COMMENTS: None Received

10. University
Corporation at
Monterey Bay RRH
Program
Nonprofit
Service Provider
QP1 QP2
QP3 QP4
None Received

11. Community Homeless
Solutions
Nonprofit
Service Provider QP1 QP3
SURVEY COMPLETED |
ADDITIONAL COMMENTS: None Received

12. Central Coast
Center for
Independent Living
(CCCIL)
Nonprofit
Service Provider QP1 QP2
SURVEY COMPLETED |
ADDITIONAL COMMENTS: Legal fees

13. Shangri La For profit
Developer QP1 QP3

None Received

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Organization
Organization
Type
Qualifying
Population
Consultation
Method Feedback Summary

14. Housing Resource
Center Nonprofit QP1 QP2
QP3 QP4 None Received

15. CHISPA
Nonprofit
Fair Housing

QP1 QP2
QP3 QP4

None Received

16. Watsonville Law
Center
Nonprofit
Civil Rights
QP2 QP3
QP4 None Received

17. Monterey County
Rape Crisis Center
Nonprofit
Service Provider QP3 None Received

18. Monterey and San
Benito County Military
and Veterans Affairs
Office
Public Agency
Service Provider QP4

SURVEY COMPLETED |
ADDITIONAL COMMENTS: None Received

19. Eden Council for
Hope and Opportunity
(ECHO)
Nonprofit
Service Provider
QP1 QP2
QP3 QP4
SURVEY COMPLETED |
ADDITIONAL COMMENTS: None Received

20. Sun Street Centers Nonprofit
Service Provider
QP1 QP2
QP3 QP4
SURVEY COMPLETED |
ADDITIONAL COMMENTS: None Received

21. Community
Human Services
Nonprofit
Service Provider
QP1 QP2
QP3 QP4
SURVEY COMPLETED |
ADDITIONAL COMMENTS: None Received

22. Eden Housing Nonprofit
Service Provider
QP1 QP2
QP3 QP4
SURVEY COMPLETED |
ADDITIONAL COMMENTS: Legal fees

23. Homeless Services
(Independent Contractor)
Private
For profit
Consultant

QP1 QP2 None Received

24. Salinas Outreach and
Support Team
Public
Government
Agency
QP1 QP2
QP3 QP4
SURVEY COMPLETED |
ADDITIONAL COMMENTS: Attached

25. Francisan Workers
of Junipero Serra, dba
Dorothy’s Place
Nonprofit
organization QP1 QP2
SURVEY COMPLETED |
ADDITIONAL COMMENTS: Move-in
assistance and eviction protection

26. Monterey County
Rape Crisis Center
Nonprofit
organization
QP1 QP2
QP3 QP4

SURVEY COMPLETED |
ADDITIONAL COMMENTS: Attached

27. CSUMB CHE
Nonprofit
organization
QP1 QP2
QP3 QP4

SURVEY COMPLETED |
ADDITIONAL COMMENTS: Attached

=SESSION

= EMAIL = SURVEY

= MEETING
QP1 = Homeless QP2 = At risk of Homeless
QP3 = Domestic Violence QP4 = Other Population

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CONSULTATION SURVEY
The City of Salinas identified twenty -seven community partner agencies who service the qualifying populations as defined by the HOME American Rescue Plan notice CPD-21-10 issued on September 12, 2021. A point-of-contact was identified for each agency and email notifications were sent periodically during to request feedback through an electronic survey , and during reoccurring meetings. Participants were provided a program description and the funding amount allocated to the City of Salinas for further consideration. Survey respondents reported serving more than 66,500 individuals per year collectively and t he following information summarizes the feedback received from service providers.

Figure 1 outlines the populations serviced by respondents. A total of 88.24% of survey respondents indicated providing services to individuals, family experiencing homelessness, and individuals with disabilities. An additional 58.82% of survey respondents indicate d providing services to individuals or families fleeing, or attempting to flee, domestic violence, dating violence, sexual assault, stalking, or human trafficking. Another 58.82% of survey respondents indicated providing services to veterans or families th at include a veteran family member. The following responses were accepted as “other” populations serviced: justice-involved veterans, survivors, transitioning service members, seniors, tenants, landlords, victims of housing discrimination, people with psychiatric disabilities, chronically unsheltered unaccompanied adults, homeless transition -age youth, and individuals or families needing help with substance abuse. All responses were accepted and included in the summary of feedback received.

Figure 2 summarizes the eligible populations respondents ranked from highest to lowest priority .

The results indicate that “individuals or famil ies experiencing homelessness” was ranked the highest priority. Individuals or families fleeing, or attempting to flee, dome stic violence, dating violence, sexual assault, stalking, or human trafficking were ranked second. Individuals or families at risk of homelessness or experiencing housing instability was ranked third. Individuals with disabilities were ranked fourth, and veterans or families that include a veteran family member were ranked last. All responses were accepted and included in the summary of feedback received.

Figure 3 summarizes the feedback received from respondents on the need for supportive services in the City of Salinas by ranking each category from highest to lowest priority. Most respondents indicated that “case management” and “housing search and counseling” were the top two choices.

The third choice for supportive services was for “mental health and substance abuse treatment” and “financial assistance costs and rental assistance”. Based on the responses, “landlord/tenant services” and “transportation” were ranked the lowest among survey participants. All responses were accepted and included in the summary of feedback received.

Figure 4 lists the responses for eligible activities ranked from highest to lowest priority and summarizes the results. Based on the feedback received, “ rehabilitating existing structures to be used as permanent affordable housing” obtained the highest score. The second highest priority was the need for “supportive services for rental housing counseling and/or direct homeless prevention

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services”. The third choice was “acquisition of land and new affordable housing construction”. A total of seventeen (17) providers provided feedback to determine the highest priority. All responses were accepted and included in the summary of feedback received.

Figure 5 demonstrate other responses received from survey respondents on other eligible uses that could potentially receive funding but were not mentioned . A total of twelve (12) respondents provided additional comments and these have been outlined in Figure 5 with a summary of the feedback received. All comments were accepted and included as part of the consultation process.

Figure 6 demonstrates the bilingual website announcement to promote the survey with service providers as part of the consultation process.

Figure 1- Populations Serviced

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Figure 2 – Eligible Populations Ranked from Highest to Lowest Priority

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Figure 3 - Rank Supportive Services Based on the Highest to Lowest Priority

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Figure 4 - Rank Needs for Housing Based on Highest Priority to Lowest Priority

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Figure 5 - Comments on Other Eligible Uses

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Figure 6 - Website Notice

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SUMMARY OF FEEDBACK RECEIVED FROM CONSULTED ORGANIZATIONS The consultation revealed strong support for the need of additional affordable housing, specifically permanent supportive housing. Those who responded to the survey also agreed that providing support to individuals or families experiencing homelessness or experiencing housing instability had the highest need for services and should be prioritized. Many participants mentioned the need for housing through the rehabilitation of existing structures such as motels, hotels, or other facilities.

The activities with the highest rankings were case management , housing search and counseling, mental health and substance abuse treatment, and financial assistance for housing related costs (Figure 2) . Respondents were asked if they believed there was a need for nonprofit capacity building and operating assistance, yet responses ranked this option last (Figure 3). Supportive services for landlord and tenant services, including transportation, were also ranked among the lowest. The responses inform their recommendation for:

1. Individuals or families experiencing homelessness;

2. Rehabilitation of structures such as motels and hotels;

3. Supportive service s for case management, housing counseling, mental health, and substance abuse treatment services.

Public Comments and Recommendations Not Accepted and Reasons Why All comments were accepted and included in the summary of comments and recommendations.

PUBLIC PARTICIPATION
The City of Salinas staff conducted a robust public participation process during the development of the allocation plan. Public participation included a 30-day public comment period, community meetings, an electronic survey, social media announcements, and one public hearing. A detailed breakdown of the comments and recommendations received through the public participation process either in writing, or orally at our public hearing meeting are included as part of the allocation plan.

Public Participation Process: Information about the public hearing and open comment period (starting on September 4 to October 4, 2022 ) was published in two local newspapers ( The Californian in English and El Sol in Spanish). A public survey was also open to all members of the community and it was promoted on the City’s website and social media platforms.

Community Meeting
Date: June 16, 2022
Location: Sherwood Hall 940 N Main St. Salinas, CA 93906 Time: 6pm-8pm

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Description: Provided participants a summary of the program and a QR code to complete the survey.

Public Comments
Date: February 11, 2023, to March 13, 2023
Description: A public notice following the City’s Citizen Participation Plan, special accommodations will be made for people with special needs. No comments were received.

Public Hearing
Date: October 4, 2022, and March 21, 2023
Location: 200 Lincoln Ave Salinas, CA 93901
Time: Approximately 4:00pm
Description: The Salinas City Council will hold a public hearing to consider and discuss the proposed Allocation Plan and accept public comments. No comments were received.

Housing and Land Use Committee
Date: September 27, 2022, and March 14, 2023
Location: 200 Lincoln Ave Salinas, CA 93901
Time: Approximately 3:30pm
Description: The Housing and Land Use Committee will hold a public hearing to consider and discuss the proposed Allocation Plan and accept public comments. This meeting was cancelled due to lack of quorum.

Efforts to Broaden Public Participation: Opportunities for public participation to comment on the planning, development, and review of th e proposed allocation plan were publicized and disseminated in accordance with the City’s Citizen Participation Plan (CPP). Hearings were held in the afternoon and disability-related accommodations were available per request. The City made accommodations available for those who required translation services. In addition to these efforts, all public engagement material was also made available in Spanish. Lastly, the community meetings provided food, translation, and childcare. The City is committed in keeping all interested groups and individuals informed of activities being proposed under HUD entitlement programs.

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Figure 6 - Salinas Resident Verification

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Figure 7 – Eligible Activities Ranked from Highest to Lowest Priority

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Figure 8 – Eligible Populations Ranked from Highest to Lowest Priority

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Figure 9 - Supportive Services Ranked from Highest to Lowest Priority

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Figure 10 - Other Comments

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SUMMARY OF FEEDBACK RECEIVED FROM PUBLIC
Permanent supportive housing through the rehabilitation of motels or hotels was scored as the highest priority based on Figure 7 of the survey results . Acquisition of land and new affordable housing con struction was ranked second in terms of highest priority. Figure 8 indicates that families experiencing homelessness was identified as the highest need for services. Individuals or families fleeing from domestic violence, dating violence, sexual assault, stalking, or human trafficking was ranked second.

Supportive service provisions like case management, fair housing, mental health services, housing counseling, substance abuse services, and legal services were included in the survey. Respondents were asked to rank what they believed is the highest need for eligible services under HOME-ARP (Figure 9). The activities with the highest rank were mental health and substance abuse treatment, transportation, and financial assistance for housing related costs.

Respondents were asked if they believed there was a need for non profit capacity building and operating assistance. Of the responses received, this option was cumulatively ranked last.

Supportive services for legal services, housing search, and counseling services were also ranked among the lowest. The responses inform their recommendation for:

1. Individuals or families experiencing homelessness;

2. Rehabilitation of structures such as motels and hotels;

3. Supportive services for mental health and substance abuse treatment services.

Public Comments and Recommendations Not Accepted and Reasons Why The public survey verified respondents were City of Salinas residents with two questions. The first question asked whether the participant was a city resident and the second asked for their zip code.

One respondent indicated they were not a resident and consequently, this survey was removed. All other comments were accepted and included in the summary of comments and recommendations.

NEEDS ASSESSMENT AND GAP ANALYSIS

A required part of the allocation plan is to reference available data to complete a gap analysis for current shelter and housing inventory , including the service delivery system. To accomplish this requirement, the needs assessment and gap analysis set forth evaluated the 1) size and demographic composition of HOME-ARP qualifying populations, and the 2) unmet needs of HOME-ARP qualifying populations. This needs assessment and gap analysis focuses on the following:

1. Experiencing homeless

2. At-risk of homelessness

3. Fleeing or attempting to flee, domestic violence, dating violence, sexual assault, stalking, or human trafficking

4. Other (families requiring housing assistance/housing instability and veterans)

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SIZE AND DEMOGRAPHIC COMPOSITION OF HOME-ARP QUALIFYING

POPULATIONS

To determine the unmet needs of HOME-ARP qualifying populations, the following regional and city specific data resources were used:

• 2014-2018 Comprehensive Housing Affordability Data (CHAS) • 2019 Monterey County Homeless Count and Survey
• 2020 American Community Survey (ACS)
• 2021-2026 Lead Me Home Plan
• 2021 Continuum of Care Housing Inventory Count Report (HIC) • 2022 Monterey County Homeless Count and Survey
• 2022 United States Census Bureau

Homeless as defined in 24 CFR 91.5

The most recent complete homeless point-in-time (PIT) count for unsheltered and sheltered individuals experiencing homelessness was completed on January 27th and 28th of 2022. The 2022 Monterey County Homeless County and Survey was performed using HUD recommended practices for counting and surveying the homeless population . Results for unsheltered and sheltered individuals experiencing homelessness provided valuable insights about the unique and diverse experiences of homelessness who are sheltered or unsheltered in the City of Salinas.

Limitation

Outreach efforts were impacted by the COVID-19 surge; therefore, the PIT count was conducted to prioritize the participant’s health and safety. It should be noted that annual PIT counts measure the scope of homelessness on a single night, and it does not represent every person who will experience homelessness throughout the year.

Unsheltered Homelessness in Salinas
In 2022, a total of 72% (777) of all individuals experiencing homelessness were unsheltered during the PIT count in the City of Salinas. Unsheltered individuals in this report were found sleeping on the streets, in abandoned buildings, vehicles, encampment areas, and in other places deemed unfit for human habitation on the days the count was completed. The City of Salinas has a significant number of unsheltered individuals which is an urgent and growing problem that is also exacerbated by the lack of permanent supportive housing . Without supportive servi ces such as financial assistance or affordable units, the likelihood of these unsheltered homeless individuals finding permanent housing is almost non-existent.

Sheltered Homelessness in Salinas

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In 2022, 27% (288) of individuals experiencing homelessness were sheltered during the PIT count in the City of Salinas. A total of 14 projects with bed inventory are available in Salinas. This bed inventory includes 8 emergency shelter s, 2 rapid rehousing, 3 transitional housing, and 1 permanent supportive housing with a total bed capacity of 501.

Monterey County Demographics

The 2022 Monterey County Homeless County and Survey identified characteristics of individuals experiencing homelessness such as age, gender, and racial identity. It is important to note that the survey report quantifies demogra phics for Monterey County which includes the City of Salinas .

According to this report, about 74% of homeless individuals were male, 26% were female, and less than 1% were transgender. Fifty -four percent 54% identified as Hispanic/Latino, 64% identified as White, 13% identified as Black/African American, and 6% identified as multi - race/other, or American Indian. In relation to age, 3% of survey respondents were between 18-24 years of age, thirty-six percent 36% were between the ages of 25 and 40, and 61% were 41 years or older.

In summary, the 2022 Monterey County Homeless Count and S urvey provides insight into the barriers homeless individuals face in obtaining permanent housing. According to the survey responses in this report, the biggest obstacle to obtaining permanent housing is inability to afford rent (71%), lack of a job/income (56%), and lack of money for moving costs (35%). These barriers range from housing affordability and offer valuable insight to inform policy decision-making and funding activity by local jurisdictions.

Table 1 Housing Inventory and Gap Analysis
Housing Inventory and Gap Analysis
HUD 2021 CoC Housing Inventory Count 2022 Monterey County Homeless Count Gap Analysis HH w/
Children
Adults
Only Vets Domestic
Violence
Family
HH (at
least 1
child)
Adult HH
(w/o
child)
Vets
Domesti
c
Violence
Family Adults
Only
Vets Domestic
Violence
# of
Beds # of Beds # of Beds # of Beds # of Beds # of Beds # of Beds # of Beds Emergency
Shelter 185 177 0 8
Transitional
Housing 42 24 20 24
Permanent
Supportive
Housing

0 61

383¹ 0

Other:

Rapid Re-
Housing
5 7 35 10

Sheltered
Homeless 113 288 75 41

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Unsheltered
Homeless 3 777 79 13
Total 232 269 438 42 116 1,065 154¹ 54
Gap
Analysis
(116)

796

(284¹)

12 Data Source: 1) HUD 2021 Continuum of Care Housing Inventory Count; 2 ) 2022 Monterey County Homeless County and Survey.

Limitation: Only the regional number of beds was available for veterans ¹. Additionally, data for victims of D omestic Violence was provided by YWCA for sites in Salinas and contains bed inventory based on capacity for individuals and children.

Methodology: Calculate the bed inventory for families, adults, domestic violence victims, and veterans using data from the HUD 2021 Housing Inventory Count Report. Subtract the number of families, adults, veterans, and victims of domestic violence using the 2022 Monterey County Homeless County a nd Survey . Complete the gap analysis using the difference between the inventory and the point-in-time count.

Gap Analysis: The 2021 Continuum of Care Housing Inventory Count Report (HIC) quantifies the number of beds and units available to adults, families with children, veterans, and victims of domestic violence in the City of Salinas . Currently, the City of Salinas has 14 projects with bed inventory (8 emergency shelter, 2 rapid rehousing, 3 transitional housing, and 1 p ermanent supportive housing) with a total capacity of 501 beds. Based on the comparison between bed inventory and the homeless count, the gap within the current shelter for adult beds is equivalent to 796. The gap for families with children within the current shelter and housing inventory has a surplus of 116. Furthermore, domestic violence survivors have a gap of 12 beds in the current shelter and housing inventory . The City recognized the surplus of veteran beds in the amount of 284 as a county-wide count, that is not specific to Salinas, yet should be included for purposes of completing this needs assessment.

Veteran Experiencing Homelessness and Families that Include a Veteran Family Member

Data from the 2022 Monterey County Homeless Count reported that one hundred and fifty -four (154) veterans are experiencing homelessness. From the reported 154 veterans, 51% were unsheltered and 49% were sheltered. Based on the survey results, the top four responses for the primary cause of homelessness among veterans is 1) financial issues; 2) mental health issue s; 3) incarceration; and 4) legal issues. Race demographic for veterans was not made available in the 2022 point-in-time count. Therefore, data from the 2019 Monterey County Homeless Count will be used to provide additional demographic information. According to th is report, the majority (90%) of veterans experiencing homelessness identified as male. In terms of racial identity, 21%

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identified as Hispanic or Latinx . In terms of race, 43% identified as White, 26% identified as Black/African American, 2% identifies as Asian, and 28% identified as multi-race or other.

Table 2 Census Demographics for Veterans
Demographics Estimate
Total Veteran population in Salinas 113,411
Gender
Male 57,266
Female 56,145
Age
18-34 39,829
35-54 41,723
55-64 10,161
75 years and over 7,714
Race
White 18,281
Black or African American 0
American Indian and Alaska Native 0
Hispanic or Latino 93,939
Income
Income in the past 12 months below poverty 13,116
With any disability 9,825

Data Source: 1) 2022 United States Census Bureau ; 2) 2019 Monterey County Homeless Count and Survey; 3) 2022 Monterey County Homeless Count and Survey ; and 3) U.S Department of Veterans Affairs

Limitation: Census data reflects the number of veterans living below the poverty limit but is not a direct indicator of homelessness. Point-in-time counts for veterans represents county-wide data that is not specific to Salinas, CA.

Methodology: Combine census data and two years of point-in-time count data to determine the average size and demographic composition of veterans experiencing homelessness in Monterey County which includes Salinas, CA.

Gap Analysis: Veterans who experience homelessness are more likely to live on the street than in shelters, and often remain on the street for extended periods of time. Veterans may also experience higher rates of Post - Traumatic Stress Disorder (PTSD), Traumatic Brain Injury (TBI), sexual assault, and substance abuse (2019 Monterey County Homeless Count and Survey). Veterans have a wide range of services within the service delivery system. The U.S. Department of Veterans Affairs (VA) provides a broad range of benefits and services to veterans. These benefits involve

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different forms of financial assistance such as monthly cash payments to disabled veterans, health care, education, and housing benefits. Needs for this qualifying population are reflected in the need for additional single beds for adults despite the surplus of shelter and housing inventory identified in the needs assessment.

Fleeing, or Attempting to Flee, Domestic Violence, Dating Violence, Sexual Assault, Stalking, or Human Trafficking, as defined by HUD in the Notice

Victims o f domestic violence , sexual assault, stalking or human trafficking are a qualifying population with a need for transitional housing and other supportive services such as legal services, counseling, affordable childcare, and employment training. The Community Human Services (CHS) offers the Salinas Warming Shelter (emergency shelter), and the YWCA of Monterey County provides the Lawson Safehouse (a confidential safe house for women and children), legal advocacy services, and a school -based program for children (K -5) of domestic violence victims.

Both agencies provide street outreach, domestic violence intervention, substance abuse and mental health counselling and recovery services to low-and moderate-income households. These two non- profit agencies offer services to meet the needs of domestic violence survivors in Salinas.

Additionally, t he Domestic Violence Coordin ating Council of Monterey County is focused on improving coordination between agencies , and departments to better service domestic violence victims.

The 2022 Monterey County Homeless Count and Survey reported thirty-three percent (33%) of the two hundre d and forty -three (N=243) survey respondents having experienced physical, emotional, or sexual abuse by a relative or another person they had stayed with (spouse, partner sibling, parent) in their lifetime. Ten percent ( 10%) of survey respondents reported currently experiencing domestic/partner violence or abuse. According to Kidsdata.org, there were five hundred and fifty -four (554) domestic violence calls made for the City of Salinas in 2020, compared to six hundred and thirty-seven (637) calls in 2019. The decline in phone calls made to law enforcement organizations are consistent with the decline in point-in-time numbers.

Gap Analysis: The needs assessment for individual or families fleeing, attempting to flee, domestic violence, dating violence sexual assault, stalking or human trafficking was limited to the data sources available. The current shelter and housing inventory for this particular qualifying population indicated a gap of approximately twelve beds . Services identified for this qualifyi ng population revealed a range of supportive services as described in the needs assessment portion of this report. Based on this information, this qualifying population currently has an unmet need for additional beds for shelter or transitional housing previously quantified in Table 1.

Data Source: 1) 2019 Monterey County Homeless Count and Survey; 2) 2022 Monterey County Homeless Count and Survey; and 3) KidsData.Org

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Limitation: Demographic information for this qualifying population is confidential. There was insufficient data available for race and ethnicity of this population. The count for sheltered and unsheltered domestic violence survivors does not include children.

Methodology: Analyze the available data sources to compile a needs assessment and gap analysis.

Individuals and Families at Risk of Homelessness (24 CFR 91.5)

Households at risk of homelessness are individuals and/or families who have an income below 30% of the Area Median Income (AMI) who lack sufficient resources or support networks to prevent them from becoming homeless. This criteria includes those who have moved two or more times during the last 60 days due to economic reasons, live in an overcrowded household, or face housing instability. According to HUD, housing needs within a community are assessed using the following criteria: (1) the number of households that are paying too much for housing; (2) the number of households living in overcrowded units; and (3) the number of households livi ng in substandard housing conditions.

Cost burden is an important housing issue because paying too much for housing leaves less available money for basic needs such as food, living expenses, and emergency expenditures.

According to the federal government, any housing condition where a household spends more than 30 percent of income on housing is considered cost burdened. A cost burden of 30 to 50 percent is considered moderate; payment more than 50 percent of income is considered a severe cost burden.

In Salinas, 34 percent of low and moderate -income households were affected by a housing cost burden, of which 40 percent were paying at least 50 percent of their income towards housing.

Other Populations

As defined by HOME-ARP, other populations include individuals and families who:

1. Have incomes at or below 30% HUD area median family income (HAMFI) and are experiencing severe housing cost burden; and

2. At risk of homelessness and have incomes between 30% and 50% AMI.

The 2014-2018 HUD CHAS data indicates there are 2,965 (25%) renter households with an annual income at or below 30% HUD Area Median Family Income (HAMFI) with a moderate cost burden of less than 30%. A total of 2,440 (44%) renter households with an annual income between 30% to less-than or equal to 50% HAMFI with a severe cost burden. Households experiencing moderate to severe cost burden is an important housing issue because paying too much for housing leaves less money available for basics such as food and living expenses as well as for emerg ency expenditures that are at greatest risk of housing instability.

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Gap Analysis: Individuals and families at risk of homelessness were assessed using the 2014 - 2018 Comprehensive Housing Affordability Strategy (CHAS) data. According to this data, the City of Salinas has a total of 3,655 rental units affordable to households at or below 30% AMI with 3,040 having at least 1 of 4 housing problems. A total of 8,225 households between 0% - 50% AMI and 88% percent are experiencing 1 or more severe housing problems. The CHAS report also indicates the four severe housing problems may include an: incomplete kitchen, incomplete plumbing, more than 1.5 persons per room, and a cost burden greater than 50%. In addition, Salinas has 4,570 renter households between 30% and 50% AMI, with 4,200 of these having one or more housing problems. The following table provides details on the number of these households. Based on this information, the current gap in housing inventory for this population is estimated to be nine hundred and eighty-five. HUD’s 2014-2018 CHAS data for the City of Salinas provided helpful context regarding income cost burden and housing problems that negatively impact households.

The service delivery system for individuals and families at -risk of homelessness was analyzed to identify gaps in services. Eden Council for Hope and Opportunity (ECHO ) educates the community regarding housing protection rights. In addition, ECHO responds to fair housing complains, conducts audits, and provides conciliation and mediation services. The City of Salinas Housing Information and Referral Services provide housing information, education, and referral services to Salinas residents through the Emergency Rental Assistance Program (ERAP), created in response to the Covid -19 Pandemic. As of June 2022, the City of Salinas has assisted 1,204 households through the ERAP Program.

Table 3 Non-Homeless Housing Inventory and Gap Analysis Non-Homeless Housing Inventory and Gap Analysis
Current
Inventory Level of Need Gap Analysis
# of Units # of Households # of Households
Total Rental Units 22,480
Rental Units Affordable to HH at
0%-30% AMI (At-Risk of
Homelessness)
3,655
Rental Units Affordable to HH at
30%-50% AMI (Other Populations) 4,570
0%-30% AMI Renter HH w/ 1 or
more severe housing problems
(At-Risk of Homelessness)
3,040
30%-50% AMI Renter HH w/ 1 or
more severe housing problems
(Other Populations)
4,200
Current Gaps 8,225 7,240 88%

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Data Sources: 2014-2018 Comprehensive Housing Affordability Strategy (CHAS)

Limitation: Race and ethnicity for this population was not available.

Methodology: Calculate the inventory units available for renters using 2014-2018 CHAS data for the City of Salinas. Then calculate the inventory for rental units affordable to households at 0%- 30% AMI (At-Risk of Homelessness) and rental units affordable to households at 30%-50% AMI (Other Populations) . Determine the level of need for each group to determine the number of households experiencing 1 or more severe housing problem using the same data sourc e. by quantifying the number of households. Complete the gap analysis using the difference between the current rental unit inventory and the number of households experiencing 1 or more severe housing problems.

Other Current Resources Available to Assist Qualifying Populations

In 2021, Project Roomkey (PRK) initiatives under the California Department of Social Services (CDSS) were created to provide non -congregate shelter options (e.g., hotels, motels, trailers) to individuals experiencing homelessness with specific prioritization to those who are COVID - positive or known to have been exposed to COVID -19. To support emerging and ong oing emergency shelter opportunities for homeless residents, the City currently funds a small -scale scattered site emergency shelter motel program collaboratively serviced and operated by the Central Coast Center for Independent Living (CCCIL) and Californ ia State University Monterey Bay’s Community Health Engagement Team (CSUMB CHE). This program serves as a pipeline for chronically homeless individuals who are interested in other City housing opportunities, such as the permanent, and supportive housing Project Homekey program.

Monterey County and Coalition of Homeless Services Providers (CHSP) successfully operate two PRK programs. The PRK service model seeks to go beyond the necessary provision of safe housing to include:
• A coordinated intake process,
• On-site offices and staffing that provide intensive case management and ‘wrap around services’ to develop, execute, and support individual housing navigation plans with a focus on permanent housing placements,
• Enforcement of program guidelines, and
• Regular ongoing reporting to enable access and support County FEMA reimbursement.

Case management services involving engagement, housing preparation, stabilization, and crisis planning are provided by CSUMB CHE staff and will compliment and support the s ite management and navigation to permanent housing activities provided by CCCIL. The City of Salinas PRK Motel Program is instrumental in providing immediate, safe housing opportunities for those most in need while also providing strong support for the be st practices “housing first” model. This Program also represents an opportunity to leverage multiple funding sources effectively and creatively and to collaborate with local service providers and neighboring - 32 - | P a g e
jurisdictions to provide much neede d services to the City and County’s most vulnerable population.

The City of Salinas has three (3) Homekey sites, also known as: Step Up in Salinas, Step Up on Fairview, and Step Up on Sanborn. All three sites offer permanent housing with supportive services including case management, employment assistance, referrals to mental health services, peer
support training, and transportation services. The Step Up in Salinas site consists of 103 rooms and is equipped to provide 101 homeless and chronically homeless individuals earning less than 30% of the Area Median Income with interim housing. Two of the existing units are dedicated to on-site property managers. The Step Up in Fairview site will be converted into forty-five (45) micro studios, and the Step Up on Sandborn site will be converted into fifty-eight (58) micro studios by 2023.

UNMET HOUSING AND SERVICE NEEDS OF QUALIFYING POPULATIONS Based on the consultation with service providers in the City and the gap analysis completed for qualifying population, the greatest unmet service needs of qualifying populations, including sheltered and unsheltered homeless populations, currently housing populations at risk of homelessness, other families requiring service or assistance to prevent homelessness, and those at greatest risk of housing instability or in unstable housing situations are supportive services:
• Mental health services
• Transportation
• Case management services
• Housing search/counseling services
• Financial assistance
• Substance abuse treatment services
The greatest unmet housing need of qualifying populations is the availability of beds for adult households without children. According to the reported number of beds for Sa linas and the 2022 homeless count, there is a gap of seven hundred and ninety-six beds. Salinas has a total of fourteen projects with bed inventory: 8 emergency shelter, 2 rapid rehousing, 3 transitional housing, and 1 permanent supportive housing. The total bed capacity of beds is five hundred and one with a bed utilization rate of 88% according to the 2022 Monterey County Homeless Point-In-Time Count.

HOME-ARP ACTIVITIES
Table 4 HOME-ARP Funding Activities
HOME-ARP Funding Activities
Activity Funding Amount Percent of
Allocation
Statutory
Limit
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Supportive Services $ 2,480,957.90 85% N/A
Acquisition and Development of Non-
Congregate Shelters
Tenant Based Rental Assistance (TBRA)
Development of Affordable Rental
Housing
Non-Profit Operating
Non-Profit Capacity Building
Administration and Planning $ 437,816.10 15% 15%
Total HOME ARP Allocation $2,918,774.00
Rationale for Uses of HOME-ARP Funding
The need for supportive services and additional beds is a growing need throughout the City of Salinas that will be addressed with HOME-ARP funding. While assessing the needs for services and housing for the qualifying populations, findings revealed there is a particularly high need for adult beds. The consultation process also revealed a high need for housing with supportive services based on the feedback from respondents. Therefore, the City is proposing to allocate 85% of the funding or $2,480,957 dollars towards supportive services. HOME-ARP funding will be self- directed funding for service providers and subrecipients. Additionally, the grantee will administer supportive services directly.

In accordance with the regional Lead Me Home Plan by the Collation of Homeless Service Providers which mains goal is to reduce homelessness by 50% over the next five years (July 2021 to June 2026), the City aims to align HOME-ARP funding with this regional framework to leverage resources and expand service-oriented responses for eligible qualifying populations. Funding for supportive services will also support two Homekey Projects in the City of Salinas that will offer 99 new permanent supportive housing units. The proposed funding activities align with the feedback received during the consultation process to rehabilitate existing structures such as hotels to provide new permanent supportive housing unitsto qualifying populations. The two Homekey Projects have a funding gap to provide supportive services to 99 new households and it is the City’s intent to fulfill this gap with HOME-ARP funds.

One essential activity for year one of the Lead Me Home Plan is to continue investing in acquisition and conversion of motels by applying to Homekey program funds for projects in Salinas which will provide permanent housing for qualifying populations. Another important action is to increase investment in rapid rehousing, navigation services, and housing focused case management to improve the ability to secure housing for participants exiting an emergency shelter. The Step Up in Fairview (Homekey Project in Salinas) will be converted into forty-five (45) micro studios and Step Up on Sandborn (Homekey Project in Salinas) site will be converted into fifty-eight (5 8)
micro studios. Both Homekey projects are projected to include the following: a community room, computer center, and an onsite property management office. These permanent housing projects - 34 - | P a g e
will include supportive services like case management, employment assistance, referrals to mental health services, peer support training, and transportation services. Funding for supportive services will allow the City to expand services to the qualifying populations based on the gap analysis and needs assessment for qualifying populations.

HOME-ARP PRODUCTION HOUSING GOALS
The City of Salinas e stimates that ninety-nine (99) affordable rental housing units for qualifying populations will be produced or supported with its HOME-ARP allocation. Funding for supportive services is projected to last until 2030 or equivalent to 84 months.

PREFERENCES
The City of Salinas will prioritize single adults who meet the definition of homeless (as defined in 24 CFR 91.5) for having the greatest need for housing and supportive services. Veterans and individuals fleeing, attempting to flee, domestic violence or human trafficking will also be considered. Local prioritization will comply with all requirements of 24 CFR 5.105( a). The Coalition of Homeless Services Providers (CHSP) of Monterey and San Benito counties operate the Coordinated Entry System ( CARS) and the Homeless Management Information System (HMIS). All p otential clients interested and eligible for Coordinated Entry , who are seeking assistance, will referred through the CARS and HMIS entry systems. An initial access and assessment will be completed in accordance with the “any door” model of access. Clients will be provided with supportive services and additional referrals to help them remain stably housed.

The gap analysis revealed the greatest need and the least number of supportive service resources were dedicated to single adults, specifically to those who are considered chronically homeless, and in need of permanent supportive housing . By prioritizing individuals with the highest need and creating housing for them, HOME-ARP will address the unmet need for single adults experiencing homelessness. This qualifying population will be served through the Co ordinated Entry System administer locally by the Coalition of Homeless Services Providers (CHSP) of Monterey and San Benito counties. Veterans and t hose fleeing, or attempting to flee domestic violence , or human trafficking may receive direct referrals to housing partners and will be considered a second highest priority.

The City of Salinas will utilize the coordinated entry system for all clients who are identified as homeless. Clients who are fleeing attempting to flee domestic violence or human trafficking can also be assessed by Coordinated Entry System or by outside providers. In addition, local service providers will be kept appraised of the availability of housing by City of Salinas staff. Other qualifying populations will be served s hould chronically homeless , veterans, or those fleeing domestic violence or human trafficking , not utilize all of the City of Salinas funding. The Coordinated Entry System operated through CHSP for the homeless population will be utilized for referrals to HOME-ARP projects. The Coordinated Entry System covers the entire geographical area of the City of Salinas and accepts referrals for all of the HOME -ARP qualifying populations including veterans, domestic violence and human trafficking. Clients can be assessed directly by

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local service providers. The City of Salinas will ensure compliance with Section IV.C.2 of CPD - 21-10.

HOME-ARP REFINANCING GUIDELINES
The City of Salinas does not intend to utilize HOME-ARP funds to refinance existing debt.

Therefore, refinancing guidelines pursuant to 24 CFR 92.206(b) are not applicable to this HOME-ARP Allocation Plan.

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APPENDIX A
CERTIFICATIONS AND SF-424, SF-424B, and SF-424D

HUD HOME-American Rescue Plan
Allocation Plan
Rod Powell, Planning Manager
Community Development Department
March 21, 2023
Executive Summary
 HUD one-time allocation of $2,918,774
 $145,938 for administrative & planning costs
 Submission deadline - March 31, 2023
 HUD recommended revision to include preferences
and expand consultation
 Expenditure Deadline: September 30, 2030

Qualifying Populations
HOME-ARP qualifying populations:

1. Homeless

2. At-risk of homelessness

3. Fleeing or attempting to flee domestic violence, dating violence, sexual assault, stalking, or human trafficking

4. Others at greatest risk of housing instability where providing supportive services or assistance would:
 prevent homelessness
 serve those with greatest risk of housing instability Eligible Activities
Eligible HOME-ARP activities:

1. Affordable housing development and support

2. Tenant-based rental assistance

3. Supportive services

4. Non-congregate shelter acquisition and development
Allocation Plan Development
Consultation
&
Public
Participation
Needs
AssessmentPreferences
Eligible
Activities

HOME-AMERICAN RESCUE

PLAN REQUIREMENTS
Required Consultation
Service
Providers
&
Public
Participation
Survey
Website
&
Email blast
Social
Media
Newspaper
Community
Meetings
Public
Hearing
Consultation Feedback & Input
Service Providers:
 27 organizations consulted
 Eligible Activities
o Strong support to rehabilitate existing structures (hotels/motels) o Supportive services
 Qualifying Populations
o Homeless individuals and families ranked highest priority  Supportive services
o Case management
o Housing search counseling
o mental health services or substance abuse treatment.

Public/Community Input:
 30 responses
 Eligible Activities:
o Strong support for rehabilitation of existing structures and new construction for affordable housing
 Qualifying Populations:
o Homeless individuals and families ranked as highest priority  Supportive services
o Mental health treatment
o Transportation
o Financial assistance
Consultation Feedback & Input
Needs Assessment
Overview:
 Review demographics for all qualifying populations
 Determine gaps in services based on data available & consultation feedback Data Sources:
 2022 Monterey County Homeless Count
 2020 American Community Survey (ACS)
 2021 Continuum of Care Housing Inventory Count Report (HIC)  2021-2026 Lead Me Home Plan (LMHP)
 2019 Monterey County Point-in-Time Count (PIT)
 2014-2018 Comprehensive Housing Affordability Data (CHAS) Gap Analysis
Key Findings:
 2022 Point in Time Count (Salinas)
o 1065 homeless individuals
 777 unsheltered / 288 sheltered
 Gap / Need
o Beds for adult households without children
 Current Resources = 501 ‘bed capacity’
o 14 currently funded projects/initiatives
o 8 Emergency Shelters
o 2 Rapid Rehousing programs
o 3 Transitional Housing programs
o 1 Permanent Supportive Housing program
Proposed Activities & Projects
 Permanent Supportive Housing (HomeKey):
 Step Up on Fairview
 Step Up on Sanborn
 Supportive Services:
 Case management
 Employment assistance
 Referrals for benefits/services
 Peer support training
 Transportation services
 Other:
 Community room
 Computer Center
 Onsite Property Manager & Service Coordinator
Step Up in Sanborn
180 S Sanborn Rd.

Step Up in Fairview
1030 Fairview Ave.

HOME-ARP Allocation Plan
HOME-ARP Funding Activities
Activity Funding Amount Percent of
Allocation
Statutory
Limit
Supportive Services $ 2,480,957.90 85% N/A
Acquisition and Development of Non-
Congregate Shelters
Tenant Based Rental Assistance (TBRA)
Development of Affordable Rental
Housing
Non-Profit Operating
Non-Profit Capacity Building
Administration and Planning $ 437,816.10 15% 15%
Total HOME ARP Allocation $2,918,774.00
CEQA Consideration
The City of Salinas has determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378).  Housing/Affordable Housing
 Eligible for allocation of $2,918,774
 No General Fund Impact
Strategic Plan Goals & Strategies
Fiscal Impact
Recommended Motion
A motion to approve a Resolution authorizing:

1. the submission of an updated HOME Investment Partnership Program American Rescue Plan (HOME-ARP) Allocation Plan (AP) to the United States Department of Housing and Urban Development; and

2. the City Manager or designee to execute any required Agreements necessary to support the acceptance of funds and implementation of its HOME-ARP AP; and

3. an increase of up to $2,772,835 to the HOME-ARP fund appropriation and corresponding revenue budget.

Questions & Comments
City of Salinas
Legislation Text
200 Lincoln Ave., Salinas,
CA 93901
www.cityofsalinas.org
File #: ID#23-186, Version: 1
Fiscal Year 2024 Community Budget Survey
No action required. This report presents information to the City Council regarding the FY 2024 Community Budget Survey results.

City of Salinas Printed on 3/17/2023Page 1 of 1
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CITY OF SALINAS

COUNCIL STAFF REPORT

DATE: MARCH 21, 2023
DEPARTMENT: FINANCE
FROM: MARK ROBERTS, DIRECTOR OF FINANCE
TITLE: FISCAL YEAR 2024 COMMUNITY BUDGET SURVEY

RECOMMENDED MOTION:

No action is required. This report is for informational purposes only.

EXECUTIVE SUMMARY:

The budget process is designed to efficiently and effectively receive and incorporate community input, allow staff to prepare and present a proposed budget, and allow the City Council time to review and direct staff on the budget prior to adoption. For this administrative report, the Director of Finance will provide an overview of the results of the community budget survey, budget priority “pop-ups,” community budget meetings, and information regarding additional opportunities for the public may provide input on budget priorities and be engaged in the budget process.

BACKGROUND:

Although, internally, development of t he Fiscal Year 2023 budget began in February, City staff released a community budget survey in December 2022 and conducted forty “pop-ups” at various locations throughout the city, which, combined, obtained more than 4,300 responses from the public. In addition, staff conducted four community budget meetings in January and February 2023, with overall attendance totaling over 180.

Below are the opportunities staff affords the community to communicate their priorities and be engaged in the budget process:
▪ December 2022 – Online budget survey released
▪ January 25 – February 16, 2023 – Community budget meetings ▫ January 25, 2023, 6:00 – 8:00 PM Community Budget Meeting #1 (Salvation Army) ▫ January 31, 2023, 6:00 – 8:00 PM Community Budget Meeting #2 (City Hall) ▫ February 4, 2023, 10:00 AM – 12:00 PM Community Budget Meeting #3 (Zoom) ▫ February 16, 2023, 6:00 – 8:00 PM Community Budget Meeting #4 (Bread Box) ▪ April 20, 2023 – Measure E Oversight Committee (Department highlight presentation) ▪ April 20, 2023 – Measure G Oversight Committee (Department highlight presentation) ▪ May 2, 2023 (Regular City Council meeting, 4-6 pm) – Introduce Preliminary CIP Budget; Study Session (Department highlight presentation)
Page | 2
▪ May 23, 2023 (Regular City Council meeting, 4-6 pm) – Introduce Preliminary Operating Budget; Study Session (Department highlight presentation) ▪ June 13, 2023 (Regular City Council meeting) – Adopt CIP & operating budgets

CEQA CONSIDERATION:

Not a Project. The City of Salinas has determined the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378).

STRATEGIC PLAN INITIATIVE:

This administrative report achieves the Council 2022-2025 Strategic G oal of Effective & Culturally Responsive Government.

DEPARTMENTAL COORDINATION:

The online survey, “pop-ups,” community budget meetings, and preparation of this report were a collaborative effort of all City departments.

FISCAL AND SUSTAINABILITY IMPACT:

The information referenced in this report represents no fiscal impact upon the City.

ATTACHMENTS:

Fiscal Year 2024 Community Budget Survey Results (Presentation)

C I T Y O F S A L I N A S

Budget Development Calendar &
Opportunities for Public Input

1. December 6, 2022 – Budget process & timeline presented to City Finance Committee

2. January 25 – February 16, 2023 – Community budget meetings (online survey released Dec. 2022) ▪ January 25, 2023, 6:00 – 8:00 PM – Community Budget Meeting #1 (Salvation Army) ▪ January 31, 2023, 6:00 – 8:00 PM – Community Budget Meeting #2 (City Hall) ▪ February 4, 2023, 10:00 AM – 12:00 PM – Community Budget Meeting #3 (Zoom) ▪ February 16, 2023, 6:00 – 8:00 PM – Community Budget Meeting #4 (Bread Box)

3. March 21, 2023 (Regular City Council meeting) – Online survey results delivered to Council

4. April 20, 2023 – Measure E Oversight Committee (Department highlight presentation)

5. April 20, 2023 – Measure G Oversight Committee (Department highlight presentation)

6. May 2, 2023 (Regular City Council meeting) – Introduce Preliminary CIP Budget; Study Session (Department highlight presentation)

7. May 23, 2023 (Regular City Council meeting, 4-6 pm) – Introduce Preliminary Operating Budget; Study Session (Department highlight presentation)

8. June 13, 2023 (Regular City Council meeting) – Adopt operating & CIP budgets 4 Question 1: What City Council District do you live in? * 6 District 1 -
Carla
Viviana
Gonzalez
District 2 -
Tony Barrera
District 3 -
Steve
McShane
District 4 -
Orlando
Osornio
District 5 -
Andrew
Sandoval
District 6 -
Anthony
Rocha
None of the
above

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%
What City Council District do you live in?
Responses
District 1 - Carla Viviana Gonzalez 18.07% 490
District 2 - Tony Barrera 12.91% 350
District 3 - Steve McShane 24.97% 677
District 4 - Orlando Osornio 9.04% 245
District 5 - Andrew Sandoval 7.89% 214
District 6 - Anthony Rocha 14.05% 381
None of the above 13.06% 354
Question 2: About Me *
7 None of the
above
I am a resident of
Salinas
I work in Salinas I am a business
owner/property
owner in Salinas
I am a student in
Salinas
I visit/have family
in Salinas

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%
About Me (Select all that apply)
Responses
None of the above 0.89% 24
I am a resident of Salinas 81.96% 2222
I work in Salinas 39.10% 1060
I am a business owner/property owner in Salinas 16.82% 456 I am a student in Salinas 21.21% 575
I visit/have family in Salinas 27.78% 753
Question 3: Which Category Below Includes Your Age? *
8 17 or
younger
18-24 25-34 35-44 45-54 55-64 65 and over

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%
Which category below includes your age?
Responses
17 or younger 15.79% 427
18-24 9.24% 250
25-34 19.37% 524
35-44 18.82% 509
45-54 14.01% 379
55-64 10.98% 297
65 and over 11.79% 319
Question 4: Economic Prosperity , Equity , & Diversity 9 Business Attraction &
Job Creation
Image, Beautification
& Tourism
Small Business
Support
Agriculture Technology
& Innovation

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%
Economic Prosperity, Equity and Diversity
- Select your top 2 priorities.

Responses
Business Attraction & Job Creation 64.17% 1596
Image, Beautification & Tourism 48.01% 1194
Small Business Support 48.57% 1208
Agriculture Technology & Innovation 39.24% 976
Economic Prosperity, Equity and Diversity - A City where all persons have equitable access to prosperity through a diversified economy, jobs and educational/training opportunities (small business support, grants, workforce development).

Question 5: Housing Opportunities for All
10 Tenant & Landlord
Education & Support
Homeless Outreach &
Support
Homeownership
Promotion & Support
Incentivize & Facilitate
Housing Production
(ADUs, Fee Deferrals,
etc.)

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%
Housing Opportunities for All - Select
your top 2 priorities.

Responses
Tenant & Landlord Education & Support 41.38% 1029
Homeless Outreach & Support 54.08% 1345
Homeownership Promotion & Support 63.01% 1567
Incentivize & Facilitate Housing Production (ADUs, Fee
Deferrals, etc.) 41.54% 1033
Housing Opportunities for All - A City with a diversity of housing types and affordability levels for its residents (rental assistance, affordable, tenant’s rights and first-time homebuyer education, homeless outreach/support).

Question 6: Healthy & Safe Community
11 Police Patrol & Traffic
Enforcement
Community
Engagement &
Violence Prevention
Fire/Inspection
Services
Improve Response
Times

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%
Healthy and Safe Community - Select
your top 2 priorities.

Responses
Police Patrol & Traffic Enforcement 67.11% 1669
Community Engagement & Violence
Prevention 71.25% 1772
Fire/Inspection Services 20.99% 522
Improve Response Times 40.65% 1011
Healthy and Safe Community - A City which strives to protect and improve the personal safety, health and welfare of the people who live, work, and visit (parks, recreation, open space, lighting, youth programs, neighborhood cleanups, police services, fire services, farmer’s markets).

Question 7: Youth are the Future
12 Sports & Recreation Neighborhood
Services, Volunteerism
& Community
Engagement
Parks Learning & Literacy

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%
Youth are the Future - Select your top 2
priorities.

Responses
Sports & Recreation 61.97% 1540
Neighborhood Services, Volunteerism & Community
Engagement 48.09% 1195
Parks 43.22% 1074
Learning & Literacy 46.72% 1161
Youth are the Future - A City where youth flourish and have equitable access to education, recreation and a healthy urban environment (sports and recreation, parks, youth enrichment programs, music and art).

Question 8: Livable & Sustainable Community
13 Trees Maintenance of City
Facilities (Recreation
Centers, Libraries,
etc.)
Green Infrastructure
(Green Areas Across
the City)
Stormwater (Flood
Control)

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%
Livable and Sustainable Community -
Select your top 2 priorities.

Responses
Trees 44.15% 1098
Maintenance of City Facilities (Recreation Centers, Libraries, etc.) 67.31% 1674
Green Infrastructure (Green Areas Across the City) 52.39% 1303 Stormwater (Flood Control) 36.15% 899
Livable and Sustainable Community - A well-planned City with a thriving community core and commercial corridors, excellent infrastructure (streets, sidewalks, sewer, lighting, parks, trees and open spaces, libraries, and community facilities, etc.) that meet the unique and changing needs of the community.

Question 9: Connectivity, Access, & Mobility
14 Streets Pedestrian Safety &
Sidewalks
Bikeways, Greenways
& Trails
Lighting

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%
Connectivity, Access and Mobility - Select
your top 2 priorities.

Responses
Streets 76.04% 1891
Pedestrian Safety & Sidewalks 59.63% 1483
Bikeways, Greenways & Trails 24.09% 599
Lighting 40.25% 1001
Connectivity, Access and Mobility - An active City with a well-connected, eco-friendly network of multi-modal streets, bikeways, greenways and trails, and effective public transportation options.

Question 10: A Community to Celebrate
15 Public Art Art & Cultural
Programs
Community Events Community Spaces

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%
A Community to Celebrate - Select your
top 2 priorities.

Responses
Public Art 27.10% 674
Art & Cultural Programs 52.23% 1299
Community Events 74.55% 1854
Community Spaces 46.12% 1147
A Community to Celebrate - A City that celebrates, promotes, preserves and honors the diversity, history, art, and culture of its community (plaza, public art, art and cultural programs, community events).

Question 11: How do you want to stay engaged?
16 Social Media Texts Email Mail

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%
How do you want to stay engaged?
Responses
Social Media 53.59% 1218
Texts 10.34% 235
Email 30.40% 691
Mail 5.68% 129
“Salinas Bucks” Exercise
17 Guiding Principles 1/25/23 1/31/23 2/16/23 Total
Economic Prosperity, Equity, & Diversity $ 2,400 $ 1,900 $ 6,800 $ 11,100 Housing Opportunities for All $ 3,700 $ 8,800 $ 12,300 $ 24,800 Healthy & Safe Community $ 3,400 $ 2,700 $ 5,100 $ 11,200 Youth are the Future $ 2,200 $ 4,200 $ 5,200 $ 11,600 Livable & Sustainable Community $ 3,000 $ 2,600 $ 3,600 $ 9,200 Connectivity, Access, & Mobility $ 3,200 $ 7,000 $ 12,700 $ 22,900 A Community to Celebrate $ 1,900 $ 2,100 $ 3,800 $ 7,800 $-
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
Economic Prosperity,
Equity, & Diversity
Housing Opportunities
for All
Healthy & Safe
Community
Youth are the Future Livable & Sustainable
Community
Connectivity, Access, &
Mobility
A Community to
Celebrate
In Person Meetings - Salinas Bucks Activity
1/25/2023 1/31/2023 2/16/2023 TOTAL

Salinas City CouncilMarch 21, 2023

Salinas City Council
March 21, 2023