Agenda-Item-Number-8-SVDP-Gravenstein-Commons-Update-to-Council-3 — Sebastopol City Council, September 1, 2026

Agenda Item Number 8

CITY OF SEBASTOPOL CITY COUNCIL
AGENDA ITEM REPORT FOR MEETING OF: September 1, 2026 - Revised 08/31/2026 at 10:15am changes in red below =============================================================================================== To: Honorable City Councilmembers
From: City Council Liaison to Homeless/City Manager
Presenter: St. Vincents de Paul Lauren Taylor/Jack Tibbetts 8th Wave Robin Stephani, City Consultant
Department: City Administration /City Consultant
Subject: Presentation from St Vincents de Paul on Status of Gravenstein Commons/Status of Community Engagement Meeting and Update on Good Neighbor Policy or Affirmations ============================================================================================== RECOMMENDATION(S): That the City Council receive the informational update and presentation from St.

Vincent de Paul (SVdP) and City Consultant Robin Stephani regarding the Gravenstein Commons project. No action is required.

PROCESS OF AGENDA ITEM:
a. Introduction of agenda item by City staff
b. Presentation by St. Vincent de Paul representatives and City Consultant Robin Stephani c. Questions and discussion from Councilmembers
d. Public comment period
e. Council discussion / receipt of informational item
EXECUTIVE SUMMARY: This informational report provides a current status update on the Gravenstein Commons project, a 22-unit permanent supportive housing (PSH) development located at 845 Gravenstein Highway North in Sebastopol. The project is led by the Society of St. Vincent de Paul of Sonoma County (SVdP) in partnership with the City of Sebastopol and is intended to house highly vulnerable individuals exiting homelessness through a Housing First model with intensive on-site supportive services.

Per SVdP, operations will be provided by the Committee on the Shelterless (COTS), with SVdP retaining overall project responsibility. The City continues to serve as co-applicant under the Homekey award, with SVdP contractually obligated to indemnify the City and fund all City administrative and consultant costs related to the project.

As of the most recent information provided by SVdP (August 2026), construction is approximately 80% complete.

Completion is expected by November 1, 2026, with resident move-in immediately following and a target of 90% occupancy by January 28, 2027. SVdP representatives and the City’s contract consultant (Robin Stephani / 8th Wave) will present updates on construction progress, funding status, operational planning, community engagement, Good Neighbor protocols, and compliance with Homekey requirements.

BACKGROUND: On May 16, 2023, the City Council directed staff to jointly apply with SVdP to the California Department of Housing and Community Development (HCD) for Homekey Round 3 funding to construct 22 deedrestricted, extremely low-income permanent supportive housing units. The application responded to the significant presence of unsheltered individuals on and near Morris Street. The site at 845 Gravenstein Highway North previously hosted the temporary Horizon Shine safe-parking program.

In February 2024, HCD awarded $6,449,235 in Homekey funds. The City is a required co-applicant and therefore carries potential financial liability under the Standard Agreement..

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Following an April 2, 2024 Council decision to withdraw from participation; two Councilmembers requested reconsideration.

On June 18, 2024, the Council reconsidered and ultimately proceeded with the project after additional commitments from SVdP and confirmation of key funding sources. The City and SVdP entered into an agreement to address the risks to the City, under which SVdP: (1) assumes primary responsibility and is in “first position” for any repayment obligations; (2) indemnifies the City against financial liability arising from breach; (3) maintains required capital and operating reserves ($671,215 each); and (4) funds the City’s third-party consultant for ongoing compliance, reporting, and oversight for the full 15-year (or longer) term of the project. Construction has proceeded under extended Homekey performance milestones approved by HCD.

Council has received two related briefings that remain relevant to this item:
• August 5, 2025: Informational presentation by Sonoma County Department of Health Services Director Nolan Sullivan, Fifth District Supervisor Lynda Hopkins, and Michael Gause (County Ending Homelessness / Continuum of Care). That presentation covered County homeless-services structure, Housing First, Coordinated Entry, funding, and the relationship between City and County responsibilities as Gravenstein Commons approached construction.
• October 7, 2025: Informational presentation by HomeFirst, the County Coordinated Entry System operator (Hunter Scott and Kaitlin Johnson-Carney). That presentation explained how people are assessed, placed on the Dynamic Housing Roster, matched to housing, and how project eligibility differs from vulnerability-based prioritization. HomeFirst also identified the City’s opportunity to request a West County / Sebastopol subregional by-names list as an eligibility criterion for Gravenstein Commons.

DISCUSSION:

CURRENT PROJECT STATUS & KEY UPDATES:

Construction Progress
o Construction percentage complete: approximately 80% (as reported by SVdP). o Revised expected completion: November 1, 2026.
o First resident move-in anticipated immediately after certificate of occupancy; target 90% occupancy by January 28, 2027.
o Primary historical delay factors included the 2024 temporary withdrawal from the partnership (which postponed foundation work through a full construction season) and a minor utility-location issue requiring a new Caltrans encroachment permit. Building construction itself continued during resolution of the utility matter.

Homekey / HCD Compliance
o Performance milestones have been extended by HCD:
o Capital Expenditure to 11/30/2026;
o Construction/Rehab to 10/30/2026;
o Occupancy to 01/28/2027.
o Required reports (Fiscal Year Expenditure Report, Annual Report) have been submitted on schedule. o Prevailing-wage labor compliance is tracked monthly and is current. o The City’s consultant continues to coordinate milestone tracking, document review, and HCD communications; all consultant costs are reimbursed by SVdP under the Funding and Reimbursement Agreement.

Funding Status (Capital)
o Homekey award of $6,449,235 remains the primary capital source and is being drawn as eligible costs are incurred.

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o SVdP reports notices of award for $1,000,000 Measure O (Sonoma County Department of Health Services) and $200,000 PLHA (Sonoma County Community Development Commission). Funds have not yet been disbursed; SVdP is utilizing available lines of credit as a temporary backstop to complete construction.
o The previously discussed $3 million commitment from the former Director of the Sonoma County Department of Health Services has not been formalized by the County. SVdP continues discussions with County leadership and District 5 Supervisor regarding alternative or supplemental sources. o Private fundraising and additional NOFA opportunities continue to be pursued. SVdP maintains lines of credit sufficient to bridge remaining capital needs while other awards are finalized. o All construction costs (and total development costs) are going to be paid by SvDP utilizing the sources at hand; identified sources still anticipated and their lines of credit (see progress report). Construction costs (Change Orders) went up for several reasons and are associated with bidding the project too early (at 50% Construction Documents), delays in the project causing material escalation, unexpected amount of environmental (dirt) clean-up, issue with storm tie-in location which was originally designed to connect in front of project; but new pipe to the nearest inlet had to be installed (to the north of the liquor store), trash enclosure redesign and adding an office for service provider.

Operating Funding & Reserves
o The required $671,215 operating reserve remains intact and available for monitoring by the City. o Projected annual operating expenses once fully operational: approximately $478,000. o Operations will be delivered by the Committee on the Shelterless (COTS). Per SVdP, COTS brings established revenue streams and experience operating permanent supportive housing in Sonoma County, reducing reliance on any single voucher source. o SVdP and COTS will continue to pursue Project-Based Vouchers (anticipated NOFO in 2028), other County/State sources, and private support. HCD operating-reserve funds remain available if needed.

Operations Model, Staffing & Supportive Services
o Service provider: Committee on the Shelterless (COTS). From COTS:
 COTS has significant experience operating Permanent Supportive Housing (PSH) programs, managing supportive housing properties, and partnering with property owners and affordable housing developers. COTS currently provides PSH for individuals and families throughout Sonoma County, supported through County, federal, foundations, local governments, and philanthropic funding. Within our existing portfolio of supportive housing, COTS property manages 94 units. In addition to property management, COTS provides supportive services for 189 households residing in PSH. In 2027, COTS is partnering with Burbank Housing to provide supportive services to an additional 70 households, bringing our total to 259. COTS provides supportive services within scattered PSH sites (residential homes and individual apartment units), as well as large PSH developments like Studios at Montero (60 units), Petaluma River Place (15 behavioral health units), Vida Nueva (19 family PSH units), and the Burbank Terraces project currently under development (70 senior- housing PSH units).
 Importantly for the proposed Gravenstein Commons partnership, COTS has extensive experience as a master lessee. COTS leases more than fifteen residential properties throughout Sonoma County, including properties that have been continuously leased for over a decade. Under this model, COTS assumes responsibility for rent payments, routine property oversight, tenant support, inspections, and coordination of non-capital maintenance needs. COTS employes both supportive services staff and maintenance technicians to help residents maintain successful tenancies while protecting the condition of the properties it leases.
o Planned staffing (approximate): 1.0 FTE live-in Property Manager; 1.5 FTE Care Managers; part-time Resident Services Manager / Housing Director oversight; part-time clinician (LCSW/ASW); part-time maintenance; and professional security coverage (currently budgeted ~32 hours/week on weekends). o Services (voluntary): case management, employment readiness, benefits advocacy, tenant dispute resolution, healthcare navigation, behavioral-health groups/individual support, AA groups, Agenda Item Number 8
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transportation assistance, and appointment coordination. Wellness events will be offered only if requested by residents.

Security: on-site staff seven days per week, live-in manager, security cameras throughout the property, and professional security firm coverage during weekend hours when Care Managers are off-site.

Resident selection:
o All placements will be made through the County Coordinated Entry System, consistent with Homekey, fair-housing, and Continuum of Care requirements. Day-to-day selection and placement decisions remain with the operator under Coordinated Entry rules. o As discussed at the October 7, 2025 Council meeting, eligibility (project-specific rules) is distinct from prioritization (vulnerability ranking). The City may provide input on initial referral / eligibility criteria, including whether a West County or Sebastopol subregional by-names list will be used to screen for local unsheltered individuals.
o HomeFirst previously indicated that referrals would begin approximately 30 days before occupancy. Staff recommends confirming the referral start date, the status of any local by-names-list criterion, and whether a City–SVdP–HomeFirst criteria meeting has been scheduled.

Community Engagement & Good Neighbor Protocols
o SVdP and COTS plan in-person and mailed outreach to neighboring properties prior to opening. o A citywide community meeting (in-person plus virtual Q&A option) is planned approximately 30–45 days before first move-in. City assistance with listserv and social-media notice is requested. o Protocols for loitering, trespassing, visitor management, and neighborhood impacts will be enforced through lease provisions, on-site staff, security, and coordination with the Sebastopol Police Department. Anonymized incident logs can be shared with the City on a quarterly basis. o An Advisory Council is under consideration; timing is to be determined.

Risk Mitigation for the City
o SVdP remains contractually obligated to indemnify the City and to stand in first position for any repayment of Homekey funds.
o Required capital contingency and operating reserves are maintained and subject to City monitoring (including the right to request dated bank statements). o All City legal, administrative, and consultant costs continue to be funded/reimbursed by SVdP. o The City’s third-party expert (8th Wave) continues to provide specialized Homekey compliance support; the Professional Services Agreement was recently amended to extend through project completion / December 31, 2027 (whichever is earlier), with no net cost to the City.

STAFF ANALYSIS:
o Questions regarding who will be housed at Gravenstein Commons were addressed in detail at the October 7, 2025 HomeFirst briefing. The remaining operational question is whether the City’s requested local / West County eligibility screen has been implemented and when Coordinated Entry referrals will begin.
o The project remains on an extended Homekey schedule, with construction now reported at approximately 80% complete. Capital awards beyond Homekey have been noticed but not yet disbursed; SVdP reports that lines of credit are being used as a bridge. Required reserves remain in place, and SVdP continues to reimburse City administrative and consultant costs.

CITY COUNCIL GOALS/PRIORITIES AND/OR GENERAL PLAN CONSISTENCY: This agenda item represents the City Council goals/priorities as follows:

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Goal 4: HIGH PERFORMANCE ORGANIZATION Restore public trust, improve public communications, and strengthen collaborative partnerships with outside agencies and service providers.

PUBLIC COMMENT: As of the preparation of this staff report, no public comments have been received on this item. Any comments received after distribution of the report will be provided to the City Council as supplemental materials. Public comment will also be accepted during the meeting.

COMMUNITY OUTREACH: This item has been noticed in accordance with the Ralph M. Brown Act and was available for public viewing and review at least 72 hours prior to the scheduled meeting date. Related public briefings occurred on August 5, 2025 and October 7, 2025.

FISCAL IMPACT: There is no direct fiscal impact to the City from receiving this informational presentation. Under the existing Funding and Reimbursement Agreement, SVdP continues to pay all City administrative and consultant costs associated with the project. The City’s potential contingent liability as Homekey co-applicant remains as previously disclosed and is contractually backstopped by SVdP’s indemnification and reserve obligations.

Restated Recommendation: That the City Council receive the informational update and presentation from St.

Vincent de Paul (SVdP) and City Consultant Robin Stephani regarding the Gravenstein Commons project. No action is required.

Council Alternative(s)/Option(s):

1. Receive the informational presentation and provide any direction to staff or the consultant as desired.

2. Request additional written information or a follow-up presentation on specific topics (e.g., detailed financial schedules, confirmation of Coordinated Entry eligibility criteria and referral timing, Good Neighbor Policy draft per County PSH standards, community-meeting logistics).

ATTACHMENT(S):

1. SVdP Responses to City Frequently Asked Questions (FAQs) — current as of August 2026

2. SVDP Council Report Submittal to City Council (1)

3. SVDP Council Report Submittal to City Council (2)

4. Most recent Gravenstein Commons Progress Report/Financial Report

5. HomeFirst Coordinated Entry presentation to City Council (October 7, 2025)

6. COTS SOQ

7. Homekey Award

8. Homekey Recorded Use Restrictions

9. SVDP Project Agreement Dated June 11 2024

10. To be Added Once Received: Measure O Funding: Scope of Work/Gravenstein Commons Permanent Supportive Housing Capital Project (Letter to be provided by September 1, 2026 Per the County)

11. DRAFT PSH Standards Attached The Sonoma County Continuum of Care is still reviewing and will finalize at a future CoC meeting. If finalized prior to this meeting; standards will be attached.

APPROVALS:

Department Head Approval: Approval Date: 8-25-2026
CEQA Determination (Planning): Approval Date: 8-25-2026 The City Council finds that this Ordinance is exempt from the requirements of the California Environmental Quality Act (“CEQA”) pursuant to Section 15061(b)(3) of the CEQA Guidelines General Plan Goal (Planning): Approval Date: 8-25-2026
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Administrative Services (Financial) Approval Date: 8-25-2026 Costs authorized in City Approved Budget: ☐Yes ☐No XX N/A Account Code (f applicable) _______________________________ City Attorney Approval: Approval Date: 8-25-2026
City Manager Approval: Approval Date: 8-25-2026
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1. Construction Status and Timeline
• Current Status
o The project is currently at approximately 80% completion. • Primary Causes of Delay
o The most significant delay resulted from reconsideration of the initial approval of the Homekey application. Reconsideration of the decision delayed construction through one summer and a winter construction season (concrete foundations cannot be poured in winter), which per SVdP led to the loss of Continuum of Care (CoC) HUD Permanent Supportive Housing funding.
o A secondary, more limited delay occurred due to inaccurate utility maps. This required excavation of an incorrect section of Gravenstein Highway, discovery of an abandoned pipe, backfilling, and re-excavation under a new CalTrans encroachment permit. Building construction continued during resolution of the utility issue. • Revised Schedule
o Projected completion: November 1, 2026
o First resident move-in: Immediately following completion o Target 90% occupancy: February 2027

2. Funding Status
• Construction Funding
o The project is fully funded for construction; however, two awards remain unpaid:
 $1,000,000 – Department of Health Services (Measure O)  $200,000 – Sonoma County Community Development Commission (PHLA Loan) • Both awards received staff recommendation, review committee approval, and formal notices of award.
• Pending receipt of these funds, SVdP anticipates drawing the full amount of its Line of Credit (LOC) to complete construction—an outcome that will impose significant cost on the organization. • $3 Million County Commitment
o The County has taken the position that the prior $3 million commitment made by former DHS Director Tina Rivera would not be honored. SVdP remains optimistic about forthcoming discussions with leadership of the Sonoma County Community Development Commission and District 5 Supervisor Lynda Hopkins regarding alternative funding sources. • Operating Reserve
o The planned $671,215 operating reserve remains intact. Construction is funded, and the reserve has not been drawn upon.

3. Operations and Supportive Services
• Service Provider and Staffing Model
o Committee on the Shelterless (COTS) will serve as the on-site service provider. Acceptance of supportive services by residents is voluntary. Planned staffing includes:
 1.0 FTE Property Manager (live-in; candidate identified with 10+ years’ experience, Spanish-speaking, community familiarity)
 1.5 FTE Care Managers
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 Part-time Resident Services Manager and Housing Director (oversight)  Part-time clinician (LCSW or ASW)
 Part-time maintenance staff
 Part-time security hours
• Projected Operating Expenses
• Annual operating expenses are projected at $478,000. COTS will utilize multiple revenue streams to support operations. HCD-restricted operating reserve funds may be accessed if needed. SVdP is not currently concerned about operational shortfalls due to the partnership with COTS.

Supportive Services Available from Day One
Services will mirror those provided at other COTS PSH properties and include:
• Case management
• Employment readiness
• Benefit advocacy and applications
• Tenant dispute resolution
• Healthcare navigation
• Behavioral health groups and individual services
• On-site AA groups
• Tenant transportation assistance
• Appointment scheduling and coordination
Wellness fairs will be offered only if requested by tenants; such events are often disruptive during the first six months of tenancy.

4. Security and Neighborhood Impacts
Security Measures (First Six Months)
• Staff on-site seven days per week
• Live-in Property Manager
• Security cameras throughout the property
• Professional security firm: 32 hours per week (12 hours Saturday, 12 hours Sunday, 8 hours overnight Friday)
Addressing Loitering, Safety, and Neighborhood Concerns • Trespassing will be enforced where applicable. Staff will coordinate closely with Sebastopol Police Department. Care Managers will conduct direct person-to-person engagement. Experience at similar sites indicates that once individuals understand that access is available only through Coordinated Entry, unauthorized loitering diminishes rapidly.

Emergency Service Calls and Protocols
• The volume of emergency service calls in the first year is unknown but is not expected to be high.

Tenants receive education on neighborhood etiquette at lease signing. Lease provisions address hoarding, visitor limits, loitering, and other disruptive behaviors. On-site staff and weekend security enforce behavioral rules. Staff receive ongoing training in cultural competency, de-escalation, and crisis intervention.
• Protocols to minimize unnecessary 911 calls include direct engagement, progressive lease enforcement , and incentives for residents to contribute to property maintenance. When 911 response is warranted, COTS staff will initiate the call. Housing individuals currently living on the streets is expected to reduce overall emergency service demand associated with unsheltered homelessness.

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Reimbursement for increased emergency response costs: SVdP will not reimburse the City. Housing individuals via Coordinated Entry is anticipated to reduce calls that would otherwise originate from unsheltered locations.

Incident logs: Anonymized incident logs can be shared with the City on a quarterly basis. Information identifying specific tenants will not be disclosed.

5. Resident Selection and Placement
• All residents will be referred through the County’s Coordinated Entry system. Selection criteria will adhere to County permanent supportive housing standards and funder requirements. Priority may be given to West County residents identified on the By-Names List as units become available. Strict adherence to fair housing laws will be maintained.
• The City may partner with COTS in developing initial Coordinated Entry referral criteria and may later request adjustments as the project stabilizes. Once criteria are established, the City will not have approval rights over individual placements, nor will it receive proposed resident lists in advance.

COTS will follow established Coordinated Entry policies and procedures and will protect tenant privacy.
• There is no formal dispute-resolution process for City objections to individual placements after criteria are set. Residents who meet referral criteria and are found eligible under COTS policies will be offered available units.

6. Housing First Model and Sobriety Requirements
• Gravenstein Commons cannot be operated as a sober-living facility. The project was developed with Homekey funding specifically for permanent supportive housing and is subject to fair housing laws and Housing First principles. Requiring sobriety is prohibited. • COTS addresses substance-related issues through behavioral expectations in the lease: housing decisions are based on behavior and lease compliance, not on active substance use itself. • On-site AA groups, behavioral health supports, and substance-use interventions will be available.

7. Financial Transparency, Contingencies, and Long-Term Stewardship Financial Reporting
SVdP understands that the City already receives monthly data on the Line of Credit, capital reserves, and annual audits via the City’s consultant, Robin Stephani, who participates in weekly project meetings and works directly with SVdP’s Finance Manager. Additional project-specific financials can be provided upon request through the consultant.

Treatment of Public Funds in Event of Failure or Sale
• Project-based vouchers would be readministered by the County Housing Authority; Section 8 vouchers follow the individual.
• HCD/Homekey funding ($6.449 million): HCD may demand full repayment but, in practice with other failed projects, typically seeks a successor nonprofit PSH operator and releases the original grantees (SVdP and the City) from obligations. • Any sale would be restricted to another provider that continues the intended use. The regulatory agreement requires 55 years of operation as permanent supportive housing; conversion to market-rate housing is not permitted unless the regulatory agreement is amended.

Exit Strategy and Long-Term Plans
SVdP is not considering any exit strategy (sale, refinance, or conversion) after the five-year HCD monitoring period. The plan is to continue operating the property as permanent supportive housing in partnership with COTS indefinitely, consistent with the missions of both organizations and the terms of the public funding.

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In the unforeseen event an exit were pursued, written notice would be provided to the City and residents, with opportunity for discussion.

8. Community Outreach and Advisory Council
• Advisory Council: Timeline to be determined.
• Neighbor outreach: SVdP and COTS can begin in-person and mailed outreach. A citywide community meeting (in-person plus virtual Q&A) can be held 30–45 days before move-in. City assistance in distributing notice via the City listserv would be appreciated.

9. Biggest Remaining Challenge
The primary remaining challenge is securing the promised County support. Construction can be completed, representing a significant milestone for both SVdP and the City. However, because the County has not delivered any portion of its $3 million commitment, SVdP is being forced to rely on financial sources that will substantially impact the organization.

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The purpose of this report is to provide a general update on the project - Gravenstein Commons.

General Project Information
The Society of St. Vincent de Paul District Council of Sonoma County (SVdP) is the owner and developer of the 22-studio unit Project, also known as Gravenstein Commons, located at 845 Gravenstein Highway North in the City of Sebastopol.

The Project consists of 22 units in total, all studios, 21 to house chronically homeless individuals with one unit set-aside for a resident manager. The Project consists of three 1-story buildings with a common area at the center of the site, a secure bicycle storage area, and an electric car charging station.

The Project will provide permanent supported housing to households with gross income at or below 30% of Area Median Income (AMI). Primary development funding for the Project is $6,449,235 in HomeKey funding from the State of California, Department of Housing and Community Development. All referrals for tenancy will come through the Sonoma County Coordinated Entry Program as required by the HomeKey funding.

Project Financials
1,024,000 Land Acquisition
9,710,000 Construction Costs
10,734,000 Total Project Cost
5,775,520 Home Key 3 Grant
1,000,000 County of Sonoma Measure O
200,000 Sonoma County Community Development Commission (PHLA) 3,758,480 SVDP
10,734,000 Total Funding Sources
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Further details on project financials have been supplied by Robin Stephani, consultant to the City of Sebastopol, throughout the project’s entirety.

Construction Update
Estimated construction completion is on track for November 2026 at which time we will begin the process of moving individuals into the new community. The goal for full occupancy is Spring 2027.

Operational Update
The Society of St. Vincent de Paul District Council of Sonoma County (SVdP) will be partnering with Committee on the Shelterless (COTS) to operate the site. The two organizations have signed an Memorandum of Understanding in which COTS will Master Lease the property for an initial term of 5 years. COTS brings a tremendous depth of knowledge and experience in successfully operating Permanent Supportive Housing (PSH) communities. A Statement of Qualifications is provided with this report.

Notable Mentions
COTS, as lessee, would assume all operational duties including leasing to eligible households, property management functions, and the delivery of supportive services to residents. SVdP, as lessor, would retain responsibility for capital repairs and improvements and for meeting reporting requirements with the State of California, the City of Sebastopol, and any other public agency, as required.

Delivery of Supportive Services: Resident support services will be offered by COTS and acceptance of those services by residents is voluntary. The array of services offered by COTS will be essentially the same as other permanent supported housing (PSH) properties supported by COTS. As of entering the MOU, COTS provides supportive services at 188 PSH units located throughout Sonoma County including Petaluma, Rohnert Park, Cotati, Santa Rosa, and Sebastopol. Supportive services provided by COTS include case management, behavioral health services, substance use disorder group sessions, resident wellness events, housing retention counseling, and crisis intervention services.

Resident Eligibility: As required by HomeKey funding, all Project referrals for tenancy will come from the Sonoma County Coordinated Entry (CE) system which prioritizes homeless individuals and households by assessed vulnerability factors. Transfers from existing or newly developed PSH properties will be accepted provided they go through the CE system. Per the HomeKey funding program requirements, all residents must be chronically homeless households with gross income at or below 30% of Area Median Income (AMI).

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COTS intended staffing model will look as follows:
➢ Property Manager 1.0 FTE (this person will live on-site) ➢ Case Manager 1.5 FTE
➢ Resident Services Manager .2 FTE
➢ Maintenance Tech .2 FTE
Staff will be onsite 7 days per week, with a property manager living onsite. COTS has a Good Neighbor policy that they abide by that includes regular property cleanup, mandated response times, and expectations around noise and loitering for our tenants. Additionally, staff receive ongoing training in areas such as cultural competency, de-escalation, and crisis intervention.

Security cameras will be installed throughout the property, and a professional security firm will be onsite based on funding availability.

Tenants are educated about neighborhood etiquette upon signing a lease. There are provisions in COTS leases that also discuss expectations regarding hoarding behaviors, limiting visitors, loitering of visitors, and other disruptive behaviors on property. The onsite property manager and Care Managers work together to address lease violations and disruptive behaviors. If calls to 9-1-1 are warranted, COTS staff will call 9-1-1.

Reasoning For COTS Assuming Operational Responsibility
The project does not currently have Project Based Vouchers, a source of funding that allows for operational sustainability. According to the Sonoma County Housing Authority, the next anticipated Notice of Funding Availability (NOFA) for Project Based Vouchers is not anticipated to occur until 2028, at the earliest.

Simply put, without vouchers, the financial feasibility of operating a Permanent Supportive Housing Community is challenging. Throughout the construction period, SVdP has been exploring funding possibilities - namely the potential availability of Project Based Vouchers. The current administration has made very significant cuts to funding that have negatively impacted the supply of vouchers.

COTS will be utilizing funding that SVdP, and most other homeless services agencies, do not have including HUD Continuum of Care (CoC) funds, CoC Consolidated NOFO funds and CalAIM. The combination of these funds will allow COTS to sustainably operate the site and best serve the individuals and the community.

This partnership with COTS also allows for the project to meet the deadlines agreed upon with HCD, which if not met, could present additional challenges and financial impacts.

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Conclusion
The board of directors, leadership and staff at both SVdP and COTS are very enthusiastic about this partnership. We share confidence that this is the best path forward for both organizations, the individuals who will call Gravenstein Commons home and the community as a whole.

Council and Sebastopol constituents can be assured that the project will be completed with no direct financial investment from or impact by the City of Sebastopol. The project has over a halfmillion dollars in permit related fees; we would welcome the opportunity to discuss how we might embody true partnership by way of discussing potential deferment of those fees.

Additional Mentions
On October 7th, 2025, leadership staff from HomeFirst, the County’s operator of the Coordinated Entry System gave a presentation to the Council. The presentation covered the eligibility and referral process related to permanent supportive housing. The slide deck is included, again, for reference at the end of this report.

Future residents of Gravenstein Commons will come via referrals from the West County ByNames-List and cross-referenced with the Coordinated Entry List. Some of the residents that COTS will be placing there will come from other PSH “scattered housing” sites - original referrals were made via Coordinated Entry and thus eligibility and regulatory requirements will be met.

Contact Information
Further questions or comments can be addressed to:

Chris Cabral
CEO of COTS
[email protected]
and/or
Lauren Taylor
Executive Director of St. Vincent de Paul District Council of Sonoma County [email protected]
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The purpose of this report is to provide a general update on the project - Gravenstein Commons.

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Further details on project financials have been supplied by Robin Stephani, consultant to the City of Sebastopol, throughout the project’s entirety.

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Security cameras will be installed throughout the property, and a professional security firm will be onsite based on funding availability.

This partnership with COTS also allows for the project to meet the deadlines agreed upon with HCD, which if not met, could present additional challenges and financial impacts.

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Contact Information
Further questions or comments can be addressed to:

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History
Founded in 1988, Committee on the Shelterless (COTS) is one of Sonoma County’s largest and longest-standing providers of housing and services for people experiencing homelessness. COTS began as a grassroots response lead by local residents who mobilized volunteers, fait communities, and private supporters to provide short-term shelter and food to adults and families living outdoors.

Over the past 38 years, COTS has grown from a volunteer effort into a large, comprehensive housing and supportive services organization serving individuals and families throughout Sonoma County.

COTS’ mission is to assist those experiencing homelessness to find and keep housing, increase self-sufficiency and improve well-being. We envision a community where everyone has a place to call home.

Experience
COTS annual revenue is approximately $19M, with multiple departments supporting the success of the organization. COTS has 72 full-time employees, four part-time employees, and utilizes over 200 volunteers annually. Our team is supported by an experienced group of professionals who oversee the following departments: Finance; Compliance; Grants; Development; Facilities; Shelter Services; Housing, and Homelessness Services.

COTS has significant experience operating Permanent Supportive Housing (PSH) programs, managing supportive housing properties, and partnering with property owners and affordable housing developers. COTS currently provides PSH for individuals and families throughout Sonoma County, supported through County, federal, foundations, local governments, and philanthropic funding.

COTS provides supportive services within scattered PSH sites (residential homes and individual apartment units), as well as large PSH developments like Studios at Montero (60 units), Petaluma River Place (15 behavioral health units), Vida Nueva (19 family PSH units), and the Burbank Terraces project currently under development (70 senior-housing PSH units).

Importantly for the proposed Gravenstein Commons partnership, COTS has extensive experience as a master lessee. COTS leases more than fifteen residential properties throughout Sonoma County, including properties that have been continuously leased for over a decade. Under this model, COTS assumes responsibility for rent payments, routine property oversight, tenant support, inspections, and coordination of non-capital maintenance needs. COTS employes both supportive services staff and maintenance Agenda Item Number 8
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technicians to help residents maintain successful tenancies while protecting the condition of the properties it leases.

Experience with Complex Program Funding
COTS has extensive experience administering programs supported by federal, state, and local governments. COTS also has extensive Medi-Cal billing experience and manages a robust portfolio of Medi-Cal services for those we serve. Our organization braids and blends funding to meet the needs of our clients, while maintaining a strong financial position and ensuring full compliance with funder requirements.

COTS operates a comprehensive suite of programs including emergency shelter for adults and families, recuperative care shelters, transitional housing, rapid rehousing, homelessness prevention, permanent supportive housing, affordable housing, and clinical services.

COTS has strong relationships with local governments and the County of Sonoma. COTS also works closely with complex healthcare systems, affordable housing developers, behavioral health providers, and other nonprofit organizations. These partnerships allow COTS to coordinate housing with the healthcare, behavioral health, benefits, and community-based services that tenants may need to remain successfully housed.

Reputation
COTS has built a strong reputation as a stable and collaborative community partner. Its relationships with public agencies, healthcare organizations, higher education institutions, housing providers, donors, and community-based providers have allowed the organization to expand substantially while remaining rooted here in Sonoma County.

COTS places particular emphasis on reliability, accountability, collaboration, and measurable outcomes. Our values include integrity, respect, collaboration, and outcomes— including a strong commitment to data-driven and client-centered services. We maintain a stable financial position through continued process improvement, strong leadership, and a commitment to organizational innovation and strategic growth. COTS also strongly values the input of individuals with lived experience. We have an active Lived Experience Advisory Committee that meets quarterly to provide recommendations on policies and program development.

COTS is approaching this Gravenstein Commons master lease partnership with the same focus on long-standing partnerships and effective financial stewardship. COTS would bring decades of homelessness services experience, established PSH infrastructure, experience staff, and a demonstrated history of strong collaboration with the community. Our goal is to ensure the project is successfully occupied and remains a well-managed, stable community in which residents have the support necessary to maintain their housing, while also remaining a good neighbor to others who call Sebastopol home.

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Agenda Item Number 8
Coordinated Entry
System Overview
October 7, 2025
Hunter Scott
Kaitlin Johnson-Carney
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Agenda

1. What is the Coordinated Entry System

2. The Scope of the Coordinated Entry System

3. Prioritization vs Eligibility

4. Housing Match Referral

5. New Housing Providers

6. Contact the CES Team
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Coordinated Entry Vision
Agenda Item Number 8
The vision of the CES is to provide assessment,
prioritization, and matching of people
experiencing homelessness to housing and
supportive services in the most transparent,
person-centered, equitable, and traumainformed way possible. 31 CES Access Point Partners
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Role of HomeFirst as the CES Operator
• CES communications (includes
housing packet and newsletter)
• Partnerships development
• Robust CES Case Conference
process
• Manage By-Name-List
• CES Data Quality oversight
• HMIS CES Referrals
• CE System Performance
Evaluation
• CoC strategic planning
engagement
• System-wide training and
technical assistance
• CES Grievances, Reasonable
Accommodations, and Appeals
• Does not refer to shelter
• Does not provide
homelessness prevention
• Does not have control over
housing opportunity inflow
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CES Training– 50 attendees on average
Basic CES Trainings:
• CES Access Point Training- in person
• Enhanced Assessment
• CES Overview
• CES Housing Provider
Sample Monthly Training Series Topics:
• Trauma Informed Care
• Harm Reduction
• Mainstream Services
• Housing Problem Solving/Diversion
• Person-Centered Assessment
• Sonoma County Behavioral Health Access
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CES Case Conference – on average, weekly 74
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participants from 44 agencies
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Prioritization vs
Eligibility
Prioritization- the order that households are ranked in to be matched with housing interventions
Eligibility- the criteria each individual housing project sets to screen in prioritized households
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Prioritization vs
Eligibility
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Prioritization
Ranks households based on urgency and vulnerability to allocate housing resources
Current Coordinated Entry Vulnerability Factors:

Length of time homeless
Increased risk of death/ severe health conditions
Increased risk of victimization
Institutional utilization
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Eligibility
Each housing provider has their own list of eligibility criteria based on:
• Chronic Homelessness requirement- required eligibility for PSH, the highest level of housing intervention within the system. • Property management criteria- background check status, income limits • Funding stream contract criteria- certain projects have eligibility criteria above and beyond. This could be local funding that requires that all referred matches are high emergency service utilizers, or are enrolled in Sonoma County Behavioral Health services.
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2 At CES Case Conference the proposed referral is reviewed and Housing confirmed based on prioritization and known eligibility.

Providers, including clinicians, present at meeting support with Match assigning staff for eligibility coordination.

Prospective referral rejections will be reviewed for approval.

Referrals
CE staff send referral to housing provider
in HMIS.

CE staff send referral connection email,
connecting all staff assigned with
housing provider.

Housing providers contact staff
assigned and participant to
offer opportunity and collect
remaining eligibility
documentation.

If participant is found
eligible, referral is in HMIS
and participant moves in.

If participant is found
ineligible or any other
challenge with referralhousing provider brings it
back to Case Conference to
problem-solve.

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New
Housing
Providers
• CES and HMIS Training,
sometimes Chronic Homelessness
training
• CES Housing Provider Checklist
• Housing Packet
• Lease up support
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Gravenstein Commons
3-6 months before lease-up:
• CES assists housing provider to complete Housing Checklist steps • SVDP sends eligibility criteria and details on units being filled • CES creates Housing Packet entry
• CES contacted to start identifying potential housing match referrals 1-3 months before lease-up:
• CES collects preference and contact information for each identified referral • CES identifies staff assigned to coordinate each household matched to collect documents
• CES starts sending housing match referrals
• CES assists with problem solving referrals not working out • CES replaces ineligible referrals
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Contact the CES Team
Agenda Item Number 8
Coordinated Entry Director
Kaitlin
Johnson- Carney
Kaitlin.carney@homefirstscc.
org
408-655- 6915
CE Data Analyst and
System Administrator Manny Galvan Manny.galvan@homefirstscc .org
707-890- 0290
CE Training Coordinator Claud Rios [email protected] 707-787- 0919 Housing Systems Coordinator Janae Capeto Janae.capeto@homefirstscc. org
707-298- 8557
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Agenda Item Number 8

DATE: August 21, 2026
TO: Mary Gourley| City Manager
City of Sebastopol | 7120 Bodega Avenue | Sebastopol, CA 95472 Email: [email protected]
SUBJECT: Gravenstein Commons Progress Report

PROJECT SCHEDULE UPDATE
• Construction percentage complete: 87%
• Paint, cabinetry, concrete flatwork and landscaping underway • Community update at City Council scheduled for Sept 1, 2026

HOMEKEY COMPLIANCE (HCD) UPDATE
• Labor compliance ongoing
• HCD Fiscal Year Expenditure Report submitted on 7/30/2026

PROJECT FINANCIALS
Construction Contract: $7,888,119
Current Pay Application: $833,767
Balance of contract remaining: $1,325,705
Measure O Funding pending: $1,000,000
PLHA Funding pending: $200,000
Lines of Credit available as backstop while other funding is secured: $2,128,079 Other funding requests underway: $1,954,697

PROGRESS PHOTO
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Coordinated Entry
System Overview
October 7, 2025
Hunter Scott
Kaitlin Johnson-Carney
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Agenda

1. What is the Coordinated Entry System

2. The Scope of the Coordinated Entry System

3. Prioritization vs Eligibility

4. Housing Match Referral

5. New Housing Providers

6. Contact the CES Team
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CES Case Conference – on average, weekly 74
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participants from 44 agencies
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Prioritization vs
Eligibility
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Prioritization
Ranks households based on urgency and vulnerability to allocate housing resources
Current Coordinated Entry Vulnerability Factors:

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