SAW:GAR:CEG
T-39584.005.002.001.003 / 2315887_3 1
Council Agenda: 06-23-2026
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 TO 1) AUTHORIZE THE CITY MANAGER OR HER
DESIGNEE TO NEGOTIATE AND EXECUTE AN
AMENDMENT TO THE STANDARD AGREEMENT WITH THE
STATE DEPARTMENT OF HOUSING AND COMMUNITY
DEVELOPMENT TO REMOVE LIFEMOVES AS CO -
APPLICANT, CO -GRANTEE, OPERATOR, DESIGNATED
PAYEE, AND/OR OTHER RESPONSIBLE PARTY
IDENTIFIED IN THE STANDARD AGREEMENT AND
RELATED HOMEKEY DOCUMENTS FOR THE BRANHAM
LANE INTERIM HOUSING COMMUNITY, AND TO IDENTIFY
THE CITY AS THE SOLE GRANTEE AND RESPONSIBLE
PARTY UNDER THE STANDARD AGREEMENT; 2)
AUTHROIZE THE CITY MANAGER OR HER DESIGNEE TO
NEGOTIATE AND EXECUTE ALL DOCUMENTS
NECESSARY TO REMOVE LIFEMOVES AS THE
OPERATOR, CO -APPLICANT, CO -GRANTEE,
DESIGNATED PAYEE, AND/OR OTHER RESPONSIBLE
PARTY IDENTIFIED IN THE HOMEKEY PROGRAM
STANDARD AGREEMENT AND RELATED PROJECT
DOCUMENTS, INCLUDING ANY AMENDMENTS,
ASSIGNMENTS, TERMINATIONS, RELEASES, OR OTHE R
DOCUMENTS REQUIRED BY THE CALIFORNIA
DEPARTMENT OF HOUSING AND COMMUNITY
DEVELOPMENT, LENDERS, REGULATORY AGENCIES,
OR OTHER PROJECT PARTIES , AND TO REC OUP ALL
PROGRAM FUNDING PREPAID TO LIFEMOVES ; AND 3)
AUTHORIZE THE HOUSING DIRECTOR OR HIS DESIGNEE
TO NEGOTIATE AND EXECUTE DOCUMENTS
NECESSARY TO UNWIND, TERMINATE, OR AMEND
PROJECT AGREEMENTS WITH LIFEMOVES, INCLUDING
THE GROUND LEASE, THE ACQUISITION AND
REHABILITATION GRANT AGREEMENT, OPERATING
AGREEMENTS, GRANT AGREEMENTS, OR OTHER
RELATED AGREEMENTS
WHEREAS, in 2022, the City of San José and LifeMoves jointly applied for and were awarded approximately $51.6 million in Homekey funding from the state Department of Housing and Community Development (“HCD”) and the Homekey Standard Agreement identified the City and LifeMoves as co-grantees, with LifeMoves designated as the payee of the Homekey funds; and
SAW:GAR:CEG
T-39584.005.002.001.003 / 2315887_3 2
Council Agenda: 06-23-2026
Item No.: 8.2
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
WHEREAS, the Branham Lane Interim Housing Community was developed under the State of California Homekey Program Round 2 to provide interim housing for individuals and families experiencing homelessness or at risk for homelessness; and
WHEREAS, the Branham Lane Interim Housing Community is located on City-owned property and represents significant public investment by the City and State; and
WHEREAS, the project consists of 204 interim housing units located on City-owned property at Branham Lane and Monterey Road; and
WHEREAS, the project was designed as a modular interim housing community with supportive services, case management, behavioral health services, employment services, and housing navigation services for residents; and
WHEREAS, the project also included accessibility commitments, housing-first operations, and long-term affordability restrictions required under the Homekey program; and
WHEREAS, the project is governed by several interrelated agreements. The City owns the underlying land and ground leased the project premises to LifeMoves for purposes of developing and operating the Branham Lane Interim Housing Community; and
WHEREAS, the City also entered into a Conditional Acquisition and Rehabilitation Grant Agreement with LifeMoves to fund construction and site improvements, including the modular development of the interim housing community; and
WHEREAS, in addition, the City and LifeMoves have entered into operating agreements governing LifeMoves’ operation of the site and provision of services to residents; and
SAW:GAR:CEG
T-39584.005.002.001.003 / 2315887_3 3
Council Agenda: 06-23-2026
Item No.: 8.2
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
WHEREAS, since the site became operational, the City has continued evaluating the long-term operational structure for the site; and
WHEREAS, staff identified ongoing operational challenges related to site management, service delivery coordination, responsiveness, and implementation of operational standards and expectations; and
WHEREAS, staff has determined that direct City oversight and compliance responsibility for the site would provide a more consistent management structure, strengthen accountability, improve operational responsiveness, and better align site operations with City operational standards, while improving coordination related to compliance obligations, resident services, and long-term site management; and
WHEREAS, the recommended transition would provide several benefits, including enhanced oversight for site operations, financial management and regulatory compliance in order to support long-term operational stability while protecting the City’s public investment in the facility; and
WHEREAS, as part of the original project approval, the City Council expressed interest in preserving the long-term flexibility of the site, including the potential future conversion of the facility from interim housing to permanent housing; and
WHEREAS, the proposed changes would also provide greater flexibility for the City to evaluate and implement a future conversion of the site from interim housing to permanent housing; and
WHEREAS, the proposed action would not alter the public purpose of the project, the site would continue to be operated in accordance with Homekey Program requirements and all applicable regulatory obligations; and
SAW:GAR:CEG
T-39584.005.002.001.003 / 2315887_3 4
Council Agenda: 06-23-2026
Item No.: 8.2
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
WHEREAS, staff anticipates coordinating closely with HCD regarding all required amendments to the Homekey Standard Agreement and any associated documents necessary to remove LifeMoves as co-applicant, co-grantee, designated payee, and operator; and
WHEREAS, in addition to the amendment to the HCD Standard Agreement the City will be required to amend, terminate, rescind, assign, or otherwise unwind related project documents, as appropriate to fully disentangle LifeMoves from the project structure while preserving continuity of the operations and compliance with HomeKey requirements; and
WHEREAS, notwithstanding the transition, staff anticipates no interruption to ongoing resident services or operations during the transition process;
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF SAN JOSE THAT:
(1) The City Manager or her designee is hereby authorized to negotiate and execute an amendment to the Homekey Program Standard Agreement with the California Department of Housing and Community Development to remove LifeMoves as co-applicant, co-grantee, operator, designated payee, and/or other responsible party identified in the Standard Agreement and related Homekey documents for the Branham Lane Interim Housing Community, and to identify the City as the sole grantee and responsible party under the Standard Agreement.
(2) The City Manager or her designee is hereby authorized to negotiate and execute all documents necessary to remove LifeMoves as the operator, co-applicant, co- grantee, designated payee, and/or other responsible party identified in the Homekey Program Standard Agreement and related project documents, including amendments, assignments, terminations, releases, or other documents required by HCD, lenders, regulatory agencies, or other project parties.
SAW:GAR:CEG
T-39584.005.002.001.003 / 2315887_3 5
Council Agenda: 06-23-2026
Item No.: 8.2
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
(3) The Housing Director or his designee is hereby authorized to negotiate and execute documents necessary to unwind, terminate, or amend project agreements with LifeMoves, including the ground lease, the Acquisition and Rehabilitation Grant Agreement, operating agreements, grant agreements, or other related agreements.
ADOPTED this _____ day of ___________, 2026, by the following vote:
AYES:
NOES:
ABSENT:
DISQUALIFIED:
MATT MAHAN
Mayor
ATTEST:
TONI J. TABER, CMC
City Clerk