Andrew Murray City Manager
Potential Homekey+ Applications in Partnership with Co-ApplicantsMay 19, 2025 Background –Homekey+•Homekey is a program of the California Department of Housing and Community Development (HCD)–Provides funding to public entities and tribes to develop a broad range of affordable housing types–Three rounds of program funding (Round 1 (2020), Round 2 (2021), and Round 3 (2022–2023))•The City of Vallejo received Homekey funding for the Broadway Project Background –Homekey+ (Cont’d)•HCD created related program, Homekey+, focuses on providing permanent supportive housing (PSH) linked with behavioral health support•HCD issued Notice of Funding Availability (NOFA) in November 2024 (amended in January 2025)•Public entities and tribes are eligible applicants–Eligible applicants may apply jointly with a nonprofit or for-profit corporation•Approximately $2.1 billion will be available through Homekey+–$1.033 billion funds for veteran-serving projects–$1.11 billion for projects serving other target populations.
Background –Homekey+ (Cont’d)•Eligible uses of Homekey+ funding:–Acquisition and/or rehabilitation of motels/hotels/apartments that could be converted to PSH–Master leasing of properties for PSH–Conversion of units from nonresidential to residential PSH–New construction of dwelling units–Purchase of affordability covenants and restrictions for units Background –Homekey+ (Cont’d)•Homekey+ program timeline:–Applications Due: May 30, 2025–Award Announcements: Early summer 2025–Standard Agreement Execution: Within 5 months of award–Construction Completion•Acquisition/Rehabilitation: 12 months + 60 days from award•New Construction: 24 months + 60 days from award•Unclear whether there will be additional rounds of Homekey or Homekey+ funding in the future Background –Homekey+ (Cont’d)•The City has been contacted by a number of organizations that would like the City to serve as the Homekey+ applicant for their project (the organizations would be co-applicants)•City staff has responded that the City is not currently in a position to serve as a Homekey+ applicant–Staff is working on completing other affordable housing projects and implementation of the City’s encampment cleanup up process–City has not yet implemented the affordable housing program management recommendations of the recent Broadway Affordable Housing Development Assessment–City already has a Homekey grant for the Broadway Project, which is behind schedule, so application for Homekey+ funding submitted by the City may be assessed negative points Background –Homekey+ (Cont’d)•Recommendations of Broadway Affordable Housing Development Assessment–City should engage a Housing Development Officer–Only use pre-selected affordable housing developers from a competitive Request for Qualifications process–Create an Affordable Housing Development Policy and Procedure Handbook and Underwriting Guide to ensure a structured and effective approach to future projects Background –Homekey+ (Cont’d)•The City can consider serving as an applicant for Homekey+ funding without appropriate review, analysis and underwriting prior to submitting the application–City would need to conduct appropriate review, analysis and underwriting after submitting the application–Rely on co-applicant to create much of the application itself–City could opt to not accept funding award from HCD if the City did not want to pursue project after appropriate review•City staff has not fully assessed the potential penalties for not accepting the funding award Background –Homekey+ (Cont’d)•Were City to accept the funding, the City would have the responsibility along with any co-applicants to ensure that the project is completed–Could create a financial challenge if the project is not fully funded by the Homekey + grant and other funding–Such a challenge could result in a financial liability to the City for the grant amount•City Council called a special meeting for May 19, 2025 to consider whether or not to serve as an applicant for any Homekey+ projects Background –Homekey+ (Cont’d)•City staff recommends that City consider hiring a consulting firm to perform fiscal analysis and underwriting and possibly project management of any project for which the City submits a Homekey+ application–Cost of the analysis, underwriting and project management service is unknown at this time Potential Co-Applicants•City staff has had recent dialog with three potential co-applicants–Ethos Environmental, LLC–Enough Housing–California Supportive Housing Potential Co-Applicants/Projects•Ethos Environmental, LLC–Vista La Terraza (formerly known as The Highlands at Garthe Ranch)–Eucalyptus Drive–54 units for veterans from new construction•Enough Housing–Legacy Village at Maria’s Place–1455 Enterprise Street–55 units from conversion of motel•California Supportive Housing–Admiral Apartments–1000 Admiral Callaghan Lane–85 units from conversion of hotel Potential Project Sites
Additional Project Information
Presentations from Project Sponsors/Potential Co-Applicants Next Steps•Council deliberation and decision of whether to adopt resolution(s) authorizing the City to submit application(s) for Homekey+•Council deliberation and direction on hiring a consulting firm to perform fiscal analysis and underwriting and possibly project management•Note: Council action directing staff to submit Homekey+ applications does not constitute Council taking any position or action on behalf of the City regarding any other City approvals the co-applicant organizations or the projects would need, such as land use entitlements
CONTACT(S)
Andrew MurrayCity Manager
THE VISTA LA TERRAZA PROJECTHomekey+Eucalyptus DriveVallejo, CA 94591 Introduction to Ethos Environmental•Family-owned business with 30+ years in Bay Area (Legacy Renovations, Legacy Framers, and Cemcon)•Legacy of helping build tens of thousands of beautiful homes, including high end customs•Ethos Environmental’s mission: provide affordable housing to serve communities and individuals in needImage of Vista La Terraza from Redfin Vista La Terraza Project History•Originally known as The Highlands at Garthe Ranch•Approved by City Council in 2005 for a 105-unit single family residential development•77 homes successfully built and sold•28 lots remain undeveloped Image from Google Maps
The Crisis: Veteran Homelessness•Homekey+ initiative (announced in September 2024 by Governor Newsom): Funding for affordable housing and ongoing supportive services•2024 Point-in-Time Count: 727 unsheltered in Vallejo, 86 veterans in Solano County•27 veterans chronically unsheltered•Urgent need for actionImage from KGUN9 Channel News Images of Vista La Terraza from Google Maps
The Opportunity: Vista La Terraza as Affordable Veteran Housing•Partnership with Habitat for Humanity (global housing expertise) and deep connections with several supportive services providers (Abode, HomeFirst, etc.)•Transform the remaining 28 lots into 54 housing units, with the option of adding an additional 14 junior ADUs•Includes space for recreation center and an office for ongoing services
The Ask: City and County Partnership•City as Lead Applicant or Co-Applicant on Homekey+ NOFA, as well as additional funding sources (i.e., AHSC, VHHP, HHC, etc.)•Provide up 54-68 vouchers for unhoused or underhoused veterans•Contribute financial support in accordance to HCD requirements Image from votersinvallejo.com
PROJECT | LEGACY VILLAGE AT MARIA’S PLACE
Melvin Cowan Founder & CEO, Enough Housing
Confidentiality
The information contained herein is of a
confidential nature and is intended
for the exclusive use of the persons or firm
for whom it was prepared.
Reproduction, publication or dissemination
of all or portions hereof may not
be made without prior approval from
Enough Housing, LLC. Enough Housing
1 Converting motels
SOLUTION: CONVERT MOTELS INTO HOMES
is 60-70% faster
taking 18-24 months instead of 4-7years. This process significantlyincreases the time it takes to buildout affordable units, many of whichare well-designed for this type ofconversion.
Legacy Village, Maria’s Place
2 MEET THE TEAM
Melvin CowanFounder
Secured $4.2 million in ERF
funding to develop and operate
an 86-unit Tiny Home Village in
Alameda County.
Successfully scaled agency
operations from $5 million to
$18 million annually while
serving as Chief Operating
Officer.
Oversaw quality assurance,
compliance, and budgeting
across 15 programs and 100+
staff, supporting more than
4,000 individuals per year.
Created agency-wide
monitoring systems to track
performance outcomes,
housing placements, income
increases, and Medi-
Cal/benefits connections.
Micheal Reynolds--
Oversaw development, asset
management, and compliance
for 100+ affordable housing
properties across Northern
California.
Directly managed Homekey-
funded projects through a Bay
Area municipality, ensuring
regulatory alignment with HCD
standards, Capitalized
Operating Subsidy Reserve
integration, and performance-
based compliance.
Led entitlements, financing,
and project monitoring for both
new construction and
preservation transactions while
supervising development staff
and managing public-private
partnerships.
Trish Beckman--
Brings 23+ years of experience
in architectural design and
development leadership.
Led full-service design teams
for large-scale redevelopment
projects from concept to
construction administration,
including master planning,
entitlement, and adaptive
reuse.
Founder of Alta Sky
Development Consultancy;
former Principal at Field Paoli
Architects.
Oyeyinka Oyelaran--
Managed $1.5 billion in
commercial and multifamily
real estate portfolios, leading
loan restructuring,
underwriting, and capital
improvements.
Oversaw financial reporting
and strategic compliance for
multifamily housing and life
sciences assets, optimizing
value and risk exposure.
Background in development,
acquisition, and structured
finance across multiple asset
classes.
3 MEET THE TEAM
Desmond Jefferies
Developed and implemented
public-sector recruitment
pipelines and stakeholder
strategies in governance,
education, and infrastructure.
Supported interagency
projects involving contracting,
compliance, and equity-driven
planning at San Francisco
International Airport and
through legislative work in
Alameda County.
Holds an MPA and is a
graduate of the USC Ross
Program in Real Estate
Development.
4 OUR PRIORITIES
SOCIAL DETERMINANTS OF HEALTHSocial determinants of health arethe living conditions—like homes,schools, jobs, and friends—thataffect how healthy people are intheir communities.
REHABILITATION NODEA rehabilitation node is a placewhere people get special helpand services to recover andbuild stable lives.
AFFORDABLE PRESCRIPTIVEHOUSINGAffordable prescriptive housing providescost-accessible homes with predeterminedrequirements and integrated support servicesdesigned specifically for populationsrequiring additional assistance.
HUMAN CENTEREDDEVELOPMENT 5
6 Supportive Service
Collaborative Partners
Lead Onsite
Nonprofit Service
Partner
Match to Hire
Caminar
Clinical Behavioral
Health Lead
Workforce Development
Partner
Solano County Continuum of Care
OUR PARTNERS
Fiscal SponsorSolano CommunityFoundation
Solano Community Foundation(SCF 30+ years) is a trustedphilanthropic partner dedicated tostrengthening the health,wellbeing, and resilience of SolanoCounty. As a 501(c)(3) publiccharity, SCF connects donors,nonprofits, and community leadersto build lasting impact throughgrantmaking, capacity building,and collaborative initiatives. With afocus on access, education, health,and economic opportunity, theServes as a catalyst for localchange managing charitable funds,hosting innovative pilot programs,and helping resource community-driven solutions across the county DesignPyatok Architects
With over 40 years of experience indesigning affordable andsupportive housing, Pyatok bringsa deep understanding of equitabledesign principles that fostercommunity well-being. Homekeyexperience.
DevelopmentLuk+Associates
Family-owned MBS/SBE/WBE civil
engineering and surveying firm
located in Hercules. 20+ years
experience in affordable housing
development and documentation.
Homekey experience. (Prospective
Partner)
DevelopmentSwinerton
A nationally recognized firm withover 135 years in construction,including multiple successfulHomekey projects. Their teamprovides expertise in projectexecution, cost efficiency, andnavigating state and localdevelopment requirements. 7 KEY ENTITLEMENT MILESTONES- CONTIGENT ON
HOMEKEY+ AWARD RELEASE
Initial site assessment andappraisal
Initial AppraisalQ4 ‘24 Initiate pre-developmentand communityengagement.
Pre-developmentQ1'25-Q4 ‘25
Construction Ends
Begin constructionQ2 ‘26
8 PermittingQ1'26-Q2‘26 End Construction
Start construction withexpected completion in Q42026.
Q2 ‘27
Occupancy
Q3 ‘27
THE LOCATION
Local Amenities
Navigation Center
Solano County Transit Village
Kaiser Hospital
Accessible Bus Routes 1,2
Wal-Mart and Smart and Final
Grocers
30+ local shops and eateries
9 Walking (Biking reduce by 1/2)
11 minutes
16 minutes
19 minutes
1 minute
15 minutes
Within 15- 20 minutes
10 The Design:
Pyatok
11 12
13 14
View from Enterprise Street and Bike Path
Inside of unit
15 16
17 18
19 View from Enterprise Street and Bike Path
20 Building Legacy Village at Maria’s Place
Swinerton Construction
21 Swinerton
Dignity Moves Alameda County
22 Swinerton - Project Management and
Delivery
Managing the project from start to finish.
Project timeline + key milestones
Coordination between developer, contractor, architect, and city Lessons learned from other projects to ensure smooth delivery 135 Years - Trusted Builders of Dignified Housing
23 Budget
HIGH LEVEL BUDGET
Total Development Cost
Hard Cost and Soft Costs $28,410,500
Acquistion $10,520,000
Pre-Development (post-
acq) $1,280,500
Construction/Renovation $12,000,000
Community Hub - Not
included in Homekey+
Funding request
$2.7M
Developer Fee (per HCD
max, 15% of eligible
costs)
$1.91M
Thank you for your support!
Building Connected Communities of Belonging.
Let’s Build!
MELVIN COWANPRINCIPAL | ENOUGH [email protected]: 707.563.1554 | WWW.ENOUGHHOUSING.COM 25 Permanent Affordable Housing Solution for Homelessness Admiral Apartments
● $20.4M Homekey Award for biggest site, largest award in Bay Area.
Press conference and tour by Governor Newsom prior to rehabilitation. ● CSH Development Team has completed multiple homekey projects that were awarded in Round 1-3. Successful submission for Homekey+ for a 122 unit hotel conversion!!!
● Partnership with Providers with 30+ yrs of experience - Service Provider & Property Manager - Abode, Architecture Design Firm (BantaDesign), Contractor (Roebbelen), Real Estate Attorney (Goldfarb Lipman) ● Director of Development: 35+ yrs of experience with 25+ projects, 1200+ units. Homekey Lead: 20+ years of experience & building 1000+ units in California. Director of Operations: 25+ yrs of experience, completed construction of HK 240 modular units.
● Project Dev and Mgmt. by highly experienced affordable housing team (10+ years avg exp.)
California Supportive Housing - Team with
Extensive Homekey & End-to-End Experience
2 1
2 5
1 3
4 2
3 ● A well maintained hotel on 2.48 acre with large
number of units, common space - ability to merge,
have private case manager offices & common area
● Access to multiple bus lines (7A, 7B, 38)
● Site control for Homekey+ duration (9 + 6 months)
● Near Gateway Plaza Shopping Mall (0.2 m).
Providing ample job opportunities and access to
multiple retail shops, restaurants and supermarkets
● Health Services - CVS Pharmacy (~0.4 m), Sutter
Solano Medical Center 2.3 m, Solano County Health
Services 2.9 m, Vallejo Family Health Services
Center 2.8 m
● Secured Hotel - one side concrete 12’+ fencing, other side Admiral Callaghan/Freeway that will be fenced
Admiral Apartments - an opportunity to develop
85 unit PSH
Admiral Apartments - Building/Unit Layout and
Design
Aerial View
Elevation
Conceptual Layout of Units
Unit + Building Layout
12’
15’
● Project is fully ready
○ Fully underwritten project; Capital expenses and Operating spend optimized for HK+ ○ No funds from the City or County; No additional staff effort required ○ HCD pre-app meeting setup in progress - was already scheduled for 5/19 1 pm with County ○ CSH will create and upload all application documents and only need resolution ● Far Exceeding the HCD Scoring Threshold requirement of 100 points ● Received support from Department of Behavioral Health - a HCD application requirement ● Received Project Based Vouchers Award confirming Project and Team readiness and ensures longer term financial viability
●
Admiral Apartments - fully planned out project
● Seeking Philanthropic
resources for additional
operating subsidy
Project and Team Meets and Exceeds all
Homekey+ Requirements
Homekey+ Requirement Project Readiness
Prior PSH experience by Developer and Team ✅
HK3 Awardee, completed several HK and Affordable housing projects Financial soundness of entities and project ✅
CSH with substantial net assets. Robust Capital, Operating and Cash Flow developed by team/approved by Financial consultants Detailed Development, Rehabilitation plan and
Committed resources
✅
Robust plan with 9+ resources across CSH, SP/Prop Mgmt, Arch, Engg etc. to achieve construction within 12 month
Collaboration with Department of Behavioral Health/VA ✅ Initiated support from Department of Behavioral Health
Services Provider and Property Manager partnerships ✅
Defined Support Services and Property Management plan; Engaged on multiple projects with LSS and Abode
Mandatory threshold (41 requirements) ✅
Meets or Exceeds all 41 requirements
Scoring requirement (100+ scoring) ✅
Very strong score with substantially higher than 100 point threshold Required pre-app meeting ✅
Build upon the already held pre-meeting to schedule a meeting this week Large number of documents required ✅
Able to leverage 50%+ of 66 docs of the recent HK+ submission Thank you!