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DATE: APRIL 9, 2024
DEPARTMENT: COMMUNITY DEVELOPMENT
FROM: LISA BRINTON, DIRECTOR
BY: FRANCISCO BRAMBILA, ACTING PLANNING MANAGER
TITLE: BEHAVIORAL HEALTH BRIDGE HOUSING PROGRAM - STRATEGIC ENHANCEMENTS GRANT APPLICATION RECOMMENDED MOTION:
A motion to approve a Resolution:
Authorizing the Mayor to submit a letter of support for the County of Monterey Behavioral Health Department’s Behavioral Health Bridge Housing Program - Strategic Enhancements grant application; and Should grant funds be awarded, directing staff to return to the City Council with City/County partnership agreements for consideration.
EXECUTIVE SUMMARY:
In March 2024 the City became the owner of El Rey Motel, located at 443 W. Market Street (Property). The America Rescue Plan Act (ARPA) program funded the purchase with the aim of converting Property’s 26 units into permanent supportive housing. During the escrow period, the County of Monterey (County) approached the City with the opportunity to partner on an application to the California Department of Health Care Services (DHCS) for the Behavioral Health Bridge Housing (BHBH) – Strategic Enhancement (Round 3) Program. BHBH program’s objective is to provide supportive services and housing navigation to assist people who have serious behavioral health conditions and are experiencing homelessness. Successful applications can receive up to $2,000,000 for site renovation and up to $5,000,000 for two years of program operations, including supportive services. El Rey Motel has been identified as a potential program site. If awarded, the City would utilize grant fund to renovate El Rey Motel to provide up to 26 non-congregate interim housing units. Through an agreement, the County Behavioral Health Department would use grant operating grant funds for program operations and the provision of supportive services including mental health, substance abuse treatment and housing navigation.
BACKGROUND:
Over the past several years, the City of Salinas has prioritized expanding the supply of non-congregate housing to meet the needs of people who are unhoused in our community. This includes the SHARE Center, Chinatown Navigation Center Sprung Shelter, and the Emergency Motel Program. However, long wait lists attest to the community needs for additional emergency, transitional and affordable permanent housing. The City acquired El Rey Motel with the objective of converting it into permanent housing. A site inspection assessment determined that the Property requires substantial renovation to achieve this conversion. The City’s consultant, CSG estimates a cost of $125,000 per unit.
During the escrow period the County’s Behavioral Health Department approached the City with the opportunity to partner on an application to the DHCS for the BHBH - Round 3 Program. The Program can provide up to $2,000,000 for site renovations and an additional $5,000,000 for two years of program operations to provide non-congregate interim housing for individuals experiencing homelessness who have behavioral health conditions.
City and County staff are exploring a partnership in which the City would receive grant funds for site renovations. The City would be responsible for renovating the 26 units and site improvements. The renovated Property would then be leased to the County to contract the operation of a non-congregate interim housing program for a period of two years.
The timeline for application submission and award notification is as follows:
Event
Date
Application open
February 2, 2024
Application due
April 10, 2024
Conditional awards announced
July 2024
Contracts execution
Within 60 days of receipt
The submission of letter of support will demonstrate the City’s interest in a partnership with the County and its endorsement of the application. Further negotiations and collaboration between the City and County will be necessary to finalize a formal agreement, which will then be presented to the City Council for final consideration and approval, should the grant funds be awarded.
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). In addition, CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Because the proposed action and this matter have no potential to cause any effect on the environment, or because it falls within a category of activities excluded as projects pursuant to CEQA Guidelines section 15378, this matter is not a project. Because the matter does not cause a direct or foreseeable indirect physical change on or in the environment, this matter is not a project. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability.
STRATEGIC PLAN INITIATIVE:
BHBH - Round 3 Program grant aligns with the City of Salinas’ Strategic Plan 2022-2025 goals and strategies for Housing and Affordable Housing. Grant funds received by the City would support the renovation of 26 units for non-congregate interim housing, supportive services, and housing navigation to assist people who have serious behavioral health conditions and are experiencing homelessness.
DEPARTMENTAL COORDINATION:
The Housing and Community Development Division of the Community Development Department has led discussions with the County and prepared this time. Should the grant be awarded, support from the Legal and Finance Departments will be required to review and develop partnership agreements between the City and County, and to set up financial accounting for a new grant.
FISCAL AND SUSTAINABILITY IMPACT:
There will be no immediate impact to the General Fund by supporting the submission of an application for the BHBH - Round 3 Program grant. Staff is working with CSG Consultants to refine cost estimates for Property renovation. If awarded, up to $2,000,000 in grant funds could help offset renovation costs and conversion of the Property from its former motel use to interim non-congregate housing. However, full renovation costs are yet to be determined.
ATTACHMENTS:
Resolution
Draft Letter of Support
Request for Application
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