Resolution No.
STOCKTON CITY COUNCIL
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF STOCKTON APPROVING A GRANT TO STAND AND/OR OTHER ELIGIBLE ORGANIZATION FOR PROPERTY ACQUISITION AND DEVELOPMENT OF A MINIMUM OF ONE AFFORDABLE HOUSING UNIT The City receives annual allocations of Community Development Block Grant (CDBG) funds from the U.S. Department of Housing and Urban Development (HUD) for the purpose of providing assistance to low-income residents. CDBG funds are used for a wide variety of activities that benefit low-income residents, including but not limited to the provision of public services, property acquisition for affordable housing purposes, and economic development activities; and In July of 2024, the City of Stockton Economic Development Department (EDD) released a Notice of Funding Availability (NOFA) announcing the availability of approximately $4,551,524 in funding from CDBG and other funds for the purpose of property acquisition leading to the development of affordable housing; and Housing for justice-involved individuals can be difficult to produce. A scattered site approach allows compatible individuals to be housed together, in some cases offering additional peer support benefits. A high percentage of the City’s homeless population face barriers to housing, which often include those with justice involved backgrounds; and Many individuals reentering the community after incarceration struggle to secure housing. Landlords often reject justice-involved applicants due to their lack of credit history, rental history, and the stigma of incarceration. STAND seeks to provide safe and secure housing as well as a stable rental history that formerly incarcerated individuals may build upon in the years following their reentry. Suitable and stable housing for those returning home is often the most critical factor in an individual’s successful reentry. STAND understands that reentry is a lifelong process and that early planning, coupled with intensive case management and stable housing, lead to better outcomes, deceased recidivism, and safer communities; and EDD has remaining CDBG funds that need to be spent to meet its timeliness expenditure threshold and has identified a partnership opportunity with STAND to serve an underserved population – justice-involved individuals – through an affordable housing project; and This project would enable the City to use CDBG resources to meet the expenditure threshold by the April 2025 deadline without facing HUD ramifications if not met; and STAND is a grassroots organization, founded in the late 1980s dedicated to the elimination of drug abuse in the community through various means, including the provision of affordable housing. STAND provides many other services to Southeast Stockton, such as: after school tutoring, youth basketball, and hosting events like National Night Out and holiday events; and STAND has experience providing affordable housing opportunities on a scattered site basis in partnership with local service providers to deliver supportive services of its target population, which often includes homeless individuals. To date, STAND has acquired, rehabilitated, and sold over 365 houses throughout Stockton and San Joaquin County to low-income households. STAND has also since purchased and rehabilitated four apartment buildings that are now available to low and very low-income families; and STAND will purchase an existing single-family home in the City of Stockton and fully furnish the house with appliances, furniture, and living essentials. STAND has identified several potential properties and has the necessary partnerships in place to deliver on this project by the City’s deadlines; and The City’s CDBG investment for the acquisition of property will be secured via a deed of trust and affordable regulatory agreement requirements to ensure the property serves income eligible individuals at or below 80% of the area median income as required by HUD; and Article XXXIV of the California Constitution requires a local election to approve affordable housing projects when the majority of the units are financed in whole or in part by the local government. In November 2010, local voters gave the City Council the authority to approve the development of up to 500 publicly assisted low-income housing units each year for a ten-year period. The Council is being asked to allocate one of the authorized units to this project. The units being proposed by STAND are within the limit approved by the voters; now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF STOCKTON, AS FOLLOWS:
The foregoing recitals are true and correct.
The Council hereby approves the following:
A CDBG grant of up to $800,000 to STAND and/or other eligible organization for property acquisition and development of a minimum of one affordable housing unit.
A grant of up to $40,000 in HHAP Round 4 funding for furnishings and equipment for any property acquired with CDBG funds.
The allocation of one unit of affordable housing for the scattered site project pursuant to Article XXXIV of the California Constitution.
The City Manager or designee is hereby authorized to defund and reallocate awarded funding if the project is unable to meet the underwriting and general City affordable housing requirements. If defunded, the funding is to be reallocated to eligible projects that can meet the funding source agency timelines and general requirements.
The City Manager is hereby authorized to take whatever actions are necessary and appropriate to carry out the purpose and intent of this Resolution.
PASSED, APPROVED, and ADOPTED December 10, 2024 .
KEVIN J. LINCOLN II
Mayor of the City of Stockton
ATTEST:
KATHERINE ROLAND, CMC, CPMC
City Clerk of the City of Stockton