NVF:HAH:CEG
2/24/2023
T-39584.005.002 / 2001307_2 1
Council Agenda: 02/28/2023
Item No.: 8.2
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
RESOLUTION NO. ______________
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN
JOSE (1) AUTHORIZING THE DIRECTOR OF HOUSING TO
RENEGOTIATE THE TERMS OF AN AGREEMENT WITH
LIFEMOVES TO ACCEPT AND RECEIVE AN AWARD OF
APPROXIMATELY $51,552,000 IN HOMEKEY PROGRAM
ROUND 2 FUNDS FROM THE CALIFORNIA DEPARTMENT
OF HOUSING AND COMMUNITY DEVELOPMENT TO
ADDRESS THE HOUSING NEEDS OF INDIVIDUALS AND
FAMILIES EXPERIENCING HOMELESSNESS OR AT RISK
OF EXPERIENCING HOME LESSNESS THROUGH THE
CONSTRUCTION AND OPERAT ION OF AN INTERIM
HOUSING COMMUNITY ON CITY-OWNED PROPERTY
LOCATED AT BRANHAM LANE AND MONTEREY ROAD;
(2) AUTHORIZING AN INCREASE TO THE EXISTING CITY
COUNCIL-APPROVED GRANT COMMITMENT TO
LIFEMOVES BY $2,000,000; AND (3) AUTHORIZING THE
EXISTING CITY COUNCIL- APPROVED GRANT OF
$10,000,000 FOR THE IN STALLATION OF
KITCHENETTES TO BE ALLOCATED TOWARDS
GENERAL CONSTRUCTION COSTS OF THE PROJECT
INCLUDING, BUT NOT LIMITED TO, THE CONSTRUCTION
OF KITCHENETTES IN EACH UNIT
WHEREAS, the City Council approved a previous action that indicated the City would receive the $51.6 million in Housing and Community Development (HCD) grant funding; and
WHEREAS, the Homekey award and City grant will fund the construction of an interim housing community providing 204 new interim housing units located at Branham Lane and Monterey Road and support the operations of the facility to serve extremely low- income unhoused individuals; and
WHEREAS, the grant application to HCD names the City and LifeMoves as co- grantees; and
NVF:HAH:CEG
2/24/2023
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Council Agenda: 02/28/2023
Item No.: 8.2
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
WHEREAS, when the state released the Standard Agreement, only one entity could receive the funds and be Designated as the Payee; and
WHEREAS, naming LifeMoves as the Designated Payee allows LifeMoves to directly receive HCD funds, but causes a discrepancy with what had been disclosed and approved by the City Council on November 1, 2022, which had designated the City as the recipient of HCD funds; and
WHEREAS, staff recommends that City Council formally authorize LifeMoves to be the Designated Payee to the Standard Agreement and to authorize the Director of Housing to negotiate and execute new modified terms with LifeMoves; and
WHEREAS, City Council approval of these actions will allow LifeMoves to accept $51.6 million in HCD grant funding directly; and
WHEREAS, this City Council approval will also increase the total City grant from $10.0 million to a total of $12.0 million in order to cover reasonable and necessary cost overruns for the Project; and
WHEREAS, upon receipt of funds from HCD, LifeMoves will deposit $22.7 million into a LifeMoves Homekey Account in Bank of America for capital expenditures and construction; and
WHEREAS, LifeMoves will set up a separate reserve account entitled the “Homekey Reserve Account” at Bank of America in the amount of $18 million where LifeMoves will have access to these funds after July 1, 2023; and
WHEREAS, LifeMoves will wire $10,852,800 back to the City to be held as operating funds, which will not be released back to LifeMoves until the site receives a Certificate NVF:HAH:CEG
2/24/2023
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Council Agenda: 02/28/2023
Item No.: 8.2
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
of Occupancy and an operations agreement has been executed by LifeMoves and the City.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF SAN JOSE THAT:
a. The Director of Housing, is hereby aut horized, to renegotiate the terms of an agreement with LifeMoves, so that LifeMoves, as designated payee under the Homekey Standard Agreement for the Project, will directly accept and receive an award of approximately $51,552,000 in Homekey Program Round 2 funds from the Department of Housing and Community Development to address the housing needs of individuals and families experiencing homelessness or at risk of experiencing homelessness through the construction and operation of an interim housing community on City-owned property located at Branham Lane and Monterey Road;
b. An increase to the existing Cit y Council-approved grant commitment by $2,000,000 to LifeMoves in order to cover reasonable and necessary cost overruns for the Project is hereby authorized;
c. The existing City Council-approved gr ant of $10,000,000 previously authorized for the installation of kitchenettes to be allocated is hereby authorized to be used towards all general construction costs of the Project, including, but not limited to, the construction of kitchenettes in each unit.
NVF:HAH:CEG
2/24/2023
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Council Agenda: 02/28/2023
Item No.: 8.2
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
ADOPTED this _____ day of ___________, 2023, by the following vote:
AYES:
NOES:
ABSENT:
DISQUALIFIED:
MATT MAHAN
Mayor
ATTEST:
TONI J. TABER, CMC
Cit
y Clerk