RTC 23-591
May 2, 2023 Lawrence-Benton Homekey Project
Special City
Council Meeting
RTC 23-591
CITY OF Proposed Homekey Interim
IA Housing Development on
County-Owned Land Located at
1852
Lawrence Expressway and
THE MISSION CIT Benton Street
May 2, 2023
[Reconvened from April 25, 2023]
1 City of
Santa Clara
The Center of What's Possible
Lawrence-Benton Homekey Project
Staff Response to Community and City Council Questions and Concerns in the Following Areas:
• Process Leading up to this Proposal
• Need for "Interim Housing" in Santa Clara
• Project Costs / Proposed Funding Amounts/Sources
• Financial Risk to City as a "Sponsor" and/or Funding Source • CEQA Compliance
• Number and Type of Residents Allowed
• Security and Operations 2
2 POST MEETING MATERIAL
May 2, 2023 Lawrence-Benton Homekey Project
City of
Santa Clara
The Centerof What's Possible
Lawrence-Benton Homekey Project
Process
• City Council directed staff to explore developing a Homekey project with LiteMoves
• Driven by Homekey timeline for Round 3 of Funding
- Homekey applications competitive on a first-come basis (starting 4/24/23) - Round 2 was over-subscribed and borrowed from Round 3 funds - No Homekey Round 4 anticipated per State
• Project modified in response to community input
• Time required to generate new site plan and cost estimates 3 3 City of
Santa Clara
The Centerof What's Possible
Lawrence-Benton Homekey Project
Project Modified in Response to Community Input
124 units - singles and couples 30 units - families
4-stories 3-stories
4 4
2 May 2, 2023 Lawrence-Benton Homekey Project
City of
Santa Clara
Tho Center of What's Possible
Lawrence-Benton Homekey Project
Desire/Need for "Interim Housing" in Santa Clara
• What is Interim Housing? (vs. shelter or permanent supportive housing) • Gap in City's housing options identified by Homelessness Taskforce • Unique project within Santa Clara
• Aligns with purpose of Homekey funding
• Comparison of project to White Oaks Lane proposal
- Financially viable
- Site preference 5
5 City of
Santa Clara
The Center of What's Possible
Demand for Interim Housing for Families
Homeless Population Over Time Distribution by Household 11,000 10,028 10
9,706
9,000 • With Adults Only
7,631 7,394
6,556 137
7,000
• With Adults and
5,000 Children
3,000 539 = Unaccompanied
Children
1,000 478 377 272 326 440
-
-1,000 2013 2015 2017 2019 2022
6 • Santa Clara County • City of Santa Clara
6 3
Lawrence-Benton Homekey Project
SUPPORTIVE HOUSING SYSTEM MAP
IN SANTA CLARA COUNTY
Lawrence-Benton Outreach
Homelessness Prevention
pontino be about Cia Wee howing to run Foun
Homekey Project
and in vehices
•Ads at an accest point for the
and for emergency shete
The Role of "Interim Housing" Affordable Housing Development unben seed to strang • One type of supportive housing
• Fulfills two of the twelve Coordinated
Emergency Shelter
Assessment System
Homelessness Task Force priorities • Acada front door to the comesty housing reutes •Parents lee to step for people coperang • Mushes preple esperanseg homatessess to tre • Provides meal, shower, cler base needs, and connec Sees an asces ponto te Cedrated Animed
• Fills a gap in the services available in
Santa Clara
Permanent Transitional Rapid
Supportive Housing Rehousing
• Resembles an apartment building Housing
with additional services a such ar
• Youth especs, Preing Yours
perranert houng prayan and wadin
з гратис
7 City of
Santa Clara
The Center of What's Possible
Lawrence-Benton Homekey Project
Costs / Proposed Funding for Homekey Application
• Construction: $32.5M
- Sobrato Philanthropies: $5M
- Project Homekey: $22.5M
- County: $6.5M (Up to $9.2M additional can cover construction) • Operation: $3.75M Annual Operating Cost (initial 7 years) - Project Homekey: $4M
- County: $9.2M
- LifeMoves: $7M
- City of Santa Clara: $7M (using $1.5M PLHA + $5.5M special revenue funds) 8 8 4
May 2, 2023 Lawrence-Benton Homekey Project
City of
Santa Clara
The Center of What's Possiblo
Lawrence-Benton Homekey Project
Costs / Proposed Funding
• Costs comparable to other interim housing projects
(Palo Alto: $324,074 per client; Benton: $377,778 per client; Note: fewer larger units) • Cost comparable to other 100% affordable projects in Santa Clara (Benton: $377,777/bedroom; Agrihood: $592,304/bedroom; Mainline:
$483,698/bedroom; Monroe Commons: $471,698/bedroom)
• City contribution lower than for San Jose, Palo Alto, etc. • County contribution (land + housing) higher
• Conclusion: financially a good opportunity if the City seeks to develop an interim housing site 9
9 City of
Santa Clara
The Center of What's Possible
Lawrence-Benton Homekey Project
Financial Risk to City
• Questions/Concerns
- Construction Cost Overruns?
- Operating shortfall during initial seven years?
- Responsibility / liability beyond seven years?
• Responses
- City potential liability depends on if City is a "project sponsor" - HCD Standard Agreement provides for "joint and several" liability - City staff intent to shift as much liability as possible/appropriate to the County, and/or Life Moves
10 5
May 2, 2023 Lawrence-Benton Homekey Project
City of
Santa Clara
The Centerof What's Possible
Lawrence-Benton Homekey Project
3-Party Non-binding Letter of Intent (City, County and LifeMoves) • Defines each party's roles, rights and obligations
• Suggested key terms to negotiate for City's benefit to include:
--Limit City financial obligations to $7 million over 7 years of operations -City prior approval required for any use other than family serving interim housing -City approval and oversight of a Project Operations and Security Plan and add Oversight Committee --Indemnity, Insurance and other Remedies to protect City/neighborhood interests • Final Agreements to implement the Project expected to include:
--Grant Agreement (HCD and Project Sponsors)
--Ground lease (County and LifeMoves)
--Project Construction Agreement (Project Sponsors and Contractor) --Operations and Funding Agreements) (County, LifeMoves and City of Santa Clara) 11 11 City of
Santa Clara
The Center of What's Possible
Lawrence-Benton Homekey Project
CEQA Concerns
• Flood Zone - area of development is outside of
flood plain
• Surrounding urban uses - 75% of bordering uses
meet the definition: "any current or former
residential, commercial, public institutional, transit or transportation passenger facility, or retail use, or any combination of those uses," GC § 65913.4(k)(12)
• Tribal consultation process - occurs later
12 6
May 2, 2023 Lawrence-Benton Homekey Project
City of
Santa Clara
in Centero White Possible
Lawrence-Benton Homekey Project
Number and Type of Allowed Residents
• 30 Identical Units
- Two bedrooms
- One bathroom
- One living room with kitchenette
• 90-120 Residents (30 families)
• Theoretical conversion to singles would result in 90 singles (subject to City approval per proposed LOI)
13 13
City of
Santa Clara
The Center of What's Possible
Lawrence-Benton Homekey Project
Operations and Security
• Dedicated for Family Use
- Screening and verification
- City Council approval required for change in use
- Relationship with Sunnyvale shelter
- Average stay: 4-5 months
14 14
7 May 2, 2023 Lawrence-Benton Homekey Project
City of
Santa Clara
The Center of What's Possible
Lawrence-Benton Homekey Project
Operations and Security
• Operations / LifeMoves
- County oversight
- On-site security 24/7 (minimum of three staff)
- Secure, single-point of entry and security cameras
- hand jogs thrigh in sensitie tra, and various y, de- escalation related to safely operating interim housing shelters
15 15
City of
Santa Clara
Lawrence-Benton Homekey Project
Disposition of Residents (Example from San Jose Family Shelter) Amigos de Guadalupe - Casitas de Esperanza, Exit Destinations Permanent (Rental/Own/Family or
Friends (Permanent tenure)) 49%, 99
Temporary (Emergency Shelter, Hotel,
Family or Friends (Temporary tenure)) 1 40%, 82
Place not meant for habitation/ Other/
Data not collected 11%, 22
Deceased 10%, 1
20 40 60 80 100 120 16
16 8
May 2, 2023 Lawrence-Benton Homekey Project
City of
Santa Clara
The Center of What's Possible
Lawrence-Benton Homekey Project
Disposition of Residents (Example from San Jose Family Shelter) Permanent Exit Destination Temporary Exit Destination
Breakdown (n=99) Breakdown (n=82)
Family/Friends Hotel/Motel
(13) 13% (without ES
Rental by voucher)
client, (16) 19% Emergency
with Shelter,
Rental by./ (36) 44%
client, no subsidy Family/
subsidy, (65) 66% Friends.-
(21) 21% (30), 37%
17 17
City of
Santa Clara
The Center of What's Possible
Lawrence-Benton Homekey Project
Considerations
• Does Council want Interim family housing within Santa Clara? - Community opposition
- Location Pros/cons
- High level staffing model / costs
• Use of Affordable Housing funds?
- $7M total commitment (less than other cities, in line with other City projects) - Significant leverage of State and County money
• Pros/Cons of County and LifeMoves as Project Owners / Developers / Operators 18
18 9
May 2, 2023 Lawrence-Benton Homekey Project
City of
Santa Clara
The Center of What's Possible
Lawrence-Benton Homekey Project
Original Recommendation
1. Authorize the Office of the City Manager to negotiate and execute a three-party letter of intent between LifeMoves, County of Santa Clara, and the City of Santa Clara defining the roles and responsibilities for the financing, operations and construction management for the Homekey application for the property located at Lawrence and Benton Street in a final form approved by the City Attorney. • 2. Adopt a resolution authorizing the Office of the City Manager to apply for, execute, and submit all required documents for California Department Housing and Community Development Homekey Program to participate as a co-applicant. 19 19
City of
Santa Clara
The Center of What's Possible
Lawrence-Benton Homekey Project
Recommendation (continued)
3. Authorize the County of Santa Clara to update the City of Santa Clara's Permanent Local Housing Allocation 5-year plan by adding activity six to the County's PLA plan to assist persons who are experiencing or at risk of homelessness and allocating year 3, 4, and 5 funding, after deducting administrative costs, to the Benton/Lawrence interim housing to help fund operations.
4. Provide direction to return to City Council for approval of a budget amendment appropriating up to $5,500,000 from special revenue funds for operations at the Benton/Lawrence interim housing site.
20 10
May 2, 2023 Lawrence-Benton Homekey Project
City of
Santa Clara
The Center of What's Possible
Lawrence-Benton Homekey Project
Alternatives
A. Commit financial support but defer sponsorship to County • Approve actions 1, 3 and 4 per original recommendation B. Defer Action, but direct staff to return to Council with a draft Letter of Intent defining the roles and responsibilities for the financing, operations and construction management for the Homekey application for the property
C. Refer back to staff with other direction to modify project or pursue other alternatives 21
21 Special City
Council Meeting
SATA CLARA CADA
Public Hearing RTC 23-591
Proposed Homekey Interim
Housing Development on
County-Owned Land Located at
1852 Lawrence Expressway and
THE MISSION CITY 00000000000000 Benton Street
May 2, 2023 [Reconvened
from April 25th City
Council Meeting]
22 11