Agenda packet — Visalia City Council, April 17, 2023 (part 2 of 3)

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Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 23-0120 Agenda Date: 4/17/2023 Agenda #: 5.

Agenda Item Wording:

Authorize the appropriation of up to $35,000 for the Rawhide Retaining Wall Repair Project from the General Fund; to complete structural engineering design work, material testing, and for staff time.

Deadline for Action: None
Submitting Department: Administration - CIP Engineering Contact Name and Phone Number:

Jaklin H Rowley, Assistant Engineer, [email protected], (559) 713-4369 Frank Senteno, City Engineer, [email protected], (559) 713-4331 Nick Mascia, Assistant City Manager, [email protected], (559) 713-4323 Department Recommendation:

Authorize the appropriation of up to $35,000 for the Rawhide Retaining Wall Repair Project from the General Fund (001); to complete structural engineering design work, material testing, and for staff time.

Summary:

During the fall 2022 annual site walk with Rawhide, this retaining wall located on the southside of the complex was noted to have separation from the concrete panels located on the top of the concourse.

City Engineering staff conducted a site visit, after this walk, to assess the wall and determine if work would be required to fix the wall. Staff determined that a structural engineer needed to be hired to assess the structural integrity of the wall and determine what steps need to be taken to stabilize/repair the wall. Staff will return to request additional appropriation for construction funds after the assessment of the wall by the structural engineer has completed.

Background Discussion:

The City’sRecreation Park Stadium (also known as Valley Strong Ball Park) houses the Rawhide Baseball team which stands as one of the most historic Minor League teams on the West Coast. The Rawhide Stadium was expanded in 2007 when the right field was improved to include raised grass seating and concourse area. To do this a retaining wall was built to hold the soil infill that created the raised seating/concourse area along and at the end of the first base line.

The retaining wall has since begun to pull away from the backfill creating some visible hairline cracking in the wall, a gap between the concrete pad and the wall, and a visible curve in the once- straight wall. The movement of the wall has also caused the upper concrete pad (concourse) to sink below its original pour line. The concern with the wall pulling away is that the gap continues to expand allowing water to fall between the concrete pad and the wall into the backfilled soil. As the soil becomes saturated the soil pressures applied on the wall increase forcing the retaining wall to pull away at a faster rate.

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File #: 23-0120 Agenda Date: 4/17/2023 Agenda #: 5.

Staff has assessed the wall and does not believe there will be a catastrophic failure of the wall, but with no action, the wall will continue to destabilize over time. Staff recommends the hiring of a structural engineer to assess the extent of the wall’sseparation and structural integrity. The structural engineer will give a recommendation for stabilizing the wall and provide technical plans/specifications for the work to stabilize/repair the retaining wall. Once the engineer completes the Plans, Specification and Estimates, a formal Request for Bid (RFB) will be advertised for the repair work to be done by a licensed contractor.

The Rawhide Stadium will continue to operate and have games during their regular season. As such, the City must schedule the project to construct during the off-season which is from late September through March. Due to the limited work timeframe, the hiring of a structural engineer and subsequent contractor is very time sensitive. The Technical Plans and Specifications must be completed by the end of June at the latest for project construction to begin in late September and finish in early March, prior to the 2024 season. This should be sufficient time to complete the repair work, but if Staff sees another wet winter, as occurredthis year, it will shrink the timeline for construction. With this in mind, staff is working diligently to keep this moving forward and on schedule.

Fiscal Impact:

Staff recommends that the funds for repairing/stabilizing the Rawhide Stadium wall be appropriated from the General Fund (001). There is not currently an established budget for this repair work to be done. Staff requests up to $35,000 for plan development (including structural engineering fees), material testing, and staff time. Staff is estimating that the design work will be less than $25,000 and will include potential method(s) and technical specifications to stabilize the wall. The engineer will also include in the technical specifications the reconstruction of the concourse area (sidewalk), and will also review the wall’sbelow-grade drainage system (located at the base of the wall) to ensure functionality. The project may require additional soil testing to confirm the soil’sstability under the wall; a larger material testing contingency has been added to account for this. Once the Structural Engineer defines the scope of the repairs, and construction costs can be estimated, staff will return to council for the appropriation of additional funds for construction.

Budget Summary: Rawhide Stadium retaining Wall Repair Project Design Cost (Not to Exceed) $25,000
Staff Time (5%) $5,000
Material Testing (5%) $5,000
Estimated Design Cost (Not to Exceed) $35,000
Appropriation Request (General Fund 001) (Not to Exceed)$35,000 Prior Council Action:

None
Alternatives:

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File #: 23-0120 Agenda Date: 4/17/2023 Agenda #: 5.

Recommended Motion (and Alternative Motions if expected):

I move to authorize the appropriation of up to $35,000 from the General Fund for the Rawhide Stadium Retaining Wall Repair Project.

Environmental Assessment Status:

N/A
CEQA Review:

N/A
Attachments:

1. Pictures of Current Condition
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Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 23-0123 Agenda Date: 4/17/2023 Agenda #: 6.

Agenda Item Wording:

Authorization to submit an allocation request in the amount of $411,201 to the California Department of Transportation Low Carbon Transit Operations Program (LCTOP) for operating funds to continue funding V- LINE operations and approve Resolution No. 2023-09 (required).

Deadline for Action: 5/1/2023 - Application deadline.

Submitting Department: Administration - Transit
Contact Name and Phone Number:

Carmen Quevedo, Financial Analyst, [email protected], (559) 713-4592 Angelina DeRossett, Transit Manager, [email protected] (559) 713-4591 Nick Mascia, Assistant City Manager, [email protected], (559) 713-4323 Department Recommendation:

Authorize staff to submit an allocation request in the amount of $411,201 to the California Department of Transportation for Low Carbon Transit Operations Program (LCTOP) funding to be used in the operation of the V-LINE and approve Resolution No. 2023-09.

Background Discussion:

The V-LINE began in November 2015 and provides transit service connecting Visalia to Fresno. This service has been funded with a combination of fares, the Rural Transit & Intercity Bus - FTA Section 5311(f), and LCTOP. Staff is requesting authorization to request funding for an additional year of LCTOP funding to maintain operation. The V-LINE is considered a Fixed Route and an essential service.

The shuttle route includes stops at the Visalia Transit Center, the Visalia Airport, the Fresno Airport, Fresno State University (CSUF), and the Courthouse Park (Fresno). The last stop is a major bus transfer point for Fresno Area Express (FAX) allowing passengers access to other Fresno destinations. V-LINE operates six daily round trips (4am; 6am; 9am; 1pm; 4pm; 6:30pm for Visalia Transit Center departures) seven days per week with a one-way full fare of $10. One-way fares can be purchased on-board V-LINE shuttle buses, as well as at the Visalia Transit Center. Discounted passes are also available for students, military, and disabled riders.

The clear benefits of the V-LINE service include the following:
· Improvement of the Air Quality in the San Joaquin Valley Air Basin. · Increased transportation options for low income, seniors, and disabled passengers. · Meeting multi modal transportation needs with connections to other forms of transportation. · Increased educational opportunities for students seeking higher education. · Increased access to specialized services not readily available in Visalia.

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File #: 23-0123 Agenda Date: 4/17/2023 Agenda #: 6.

V-LINE Funding:

The V-LINE is considered a Fixed Route but was excluded from farebox calculations for the first three years of service. To-date, it has used rider fares, 5311(f), and LCTOP to fund its operation. The V-LINE has been included in the farebox calculation beginning with the current 2019/20 Fiscal Year. With a farebox percentage of 34.2% in FY 2016/17, 42.7% in FY 2017/18, and 29.4% in FY 2018/19. In FY 2019/20, farebox ratio was at 20% since COVID-19 only affected four months of the fiscal year. The farebox ratio declined in FY 2020/21 to

11.4% FY 2021/22 to 13.3 and expected to be 19.0% in FY 2022/23. The farebox ratio requirement of 20% was exempt in FY 2020, FY 2021, FY 2022, and FY 2023 due to the pandemic. On April 8, 2020, Visalia Transit stopped collecting fares and resumed on February 1, 2021.

While the V-LINE service is eligible for state and federal funding that is typically used to operate fixed routes, the priority use of this funding is the Fixed Routes operated within the City of Visalia. For this reason, it is the intention of VT to pursue other funding sources available for this unique service to the greatest extent possible.

The LCTOP which has been used to-date is allocated to all transit agencies for the implementation of new, or expansion of existing transit routes.

A request for an allocation of this funding requires only an LCTOP eligible project. In past years, several other Tulare County transit agencies have had available allocations of LCTOP funding but did not have new service implementation needs. VT has entered into swap agreements with these agencies in the past. VT traded Local Transportation Funds (LTF) for other transit agencies LCTOP allocations with VT earning a 5% administrative fee in consideration for this swap of funding. This 5% premium helped cover the administrative cost of the LCTOP filing and administration of the V-LINE program. This swap arrangement between Tulare County transit agencies increased the total transit funding for our county, as any unclaimed LCTOP is lost.

This does mean that a portion of the V-LINE is funded by this reduction of City of Visalia LTF funding, as shown in Table 1: Summary of V-LINE LTF/LCTOP Swaps, below. The LCTOP amounts fluctuate from year to year. In FY 2022 and going forward, the City of Visalia no longer swapped funding since Tulare County transit agencies had projects for those funds.

FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021
Visalia LCTOP 215,371$ 71,828$ 211,116$ 306,438$ 292,032$ 167,702$ Other Transit Agency LCTOP 238,112 58,461 169,875 229,009 225,677 22,890 Total LCTOP Received 453,483 130,289 380,991 535,447 517,709 190,592 LTF Swap Amount Net LCTOP(226,206) (55,538) (161,381) (217,654) (214,393) (21,746) Net LCTOP 227,277 74,751 219,610 317,793 303,316 168,846 Table 1: Summary of V-LINE LTF/LCTOP Swaps
As shown in Table 2: V-LINE Operational Budget below, the combination of the LCTOP received and fare sales, has covered the operational costs of the V-LINE to-date, with a portion of the current LCTOP allocation available to fund the 2022/23 operational budget. In 2020/21, V-LINE received a one-time Coronavirus Aid Relief, and Economic Security (CARES) Act allocation due to the pandemic which provided a projected positive ending balance in FY 20/21.

FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023* LCTOP Beginning Balance -$ 151,344$ 17,555$ 161,413$ 297,135$ 361,466$ 515,287$ 590,474$ Ticket/Pass Sales 26,488 137490 176,451 210,238 188,322 84,100 98,099 163,500 LCTOP Revenue 453,482 130289 380,991 535,547 517,709 190,592 413,246 411,201 5311(f) - - - 106,012 300,000 300,000 300,000 300,000 5311 (f) CARES - - - - - 318,729 - - Admin Cost (94,232) (46,067) (16,311) (49,320) (50,000) (32,980) (9,172) (4,100) Operations (234,393) (355,501) (397,273) (666,755) (891,700) (706,620) (726,986) (856,200) LCTOP Ending Balance151,345$ 17,555$ 161,413$ 297,135$ 361,466$ 515,287$ 590,474$ 604,875$ Farebox* 8.1% 34.2% 42.7% 29.4% 20.0% 11.4% 13.3% 19.0% *FY 2023 amounts projected based upon YTD actuals
Farebox requirement exemption through FY 2023
Table 2: V-LINE Operational Budget
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File #: 23-0123 Agenda Date: 4/17/2023 Agenda #: 6.

The V-LINE service experienced a ridership growth from year to year up until FY 2020. Prior to the shutdown ordered by Governor Newsom, FY 2020 was projected to achieve a growth rate of 4.2% over the FY 2018/19 ridership and future years. With bulk purchases of tickets by CSUF, Fresno State students account for the majority of riders on the V-LINE. During COVID-19, the temporary shutdown of the CSUF campus undoubtedly affected ridership since the spring 2020 semester. Under normal conditions, peak ridership follows Fresno State class schedules. A second bus was added to some loops to accommodate the demand. VT continues to market the V-LINE for access to the Fresno airport and other destinations. Ridership data for the V-LINE is shown in Table 3: V-LINE Ridership to-date with Projections below, with projected ridership shown highlighted in yellow.

Month FY 2016FY 2017FY 2018FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 July 701 1253 1335 1126 795 586 782
August 1118 1344 2167 1968 742 1120 1751
September 1808 2640 3277 3334 748 2034 2999
October 1838 3041 3707 3729 776 1805 3066
November 67 1636 2664 3177 2932 832 1531 2469
December 369 1048 1609 2178 2126 749 945 1437
January 612 1390 3258 2001 1934 783 524 1601
February 960 1947 2929 2976 2636 445 1414 2539
March 936 2055 2225 3070 1479 463 1982 2775
April 1,143 1,745 2,442 2380 330 495 1477 2068
May 956 1586 1985 1889 500 542 1222 1711
June 767 939 1350 1043 728 559 772 1081
Total 5,810 17,811 26,740 29,200 22,822 7,929 15,412 24,279 *Projectd Ridership highlighted in yellow
Table 3: V-LINE Ridership to-date with Projections
Graph 1: V-LINE Ridership to-date with Projections below.

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File #: 23-0123 Agenda Date: 4/17/2023 Agenda #: 6.

FY 2023 information includes projections based on YTD Actuals Fiscal Impact:

The V-LINE service is currently funded using rider fares, 5311(f), and LCTOP allocations. As the receipt of LCTOP funds for this project are uncertain going forward, the City will continue to pursue other sources of funding for the VLINE. While other funding will be sought for this service, future allocations of LTF are currently expected to be sufficient to supplement its operation as needed Prior Council Action:

April 20th 2015 - Council authorized staff to submit an allocation request in the amount of $167,017.

March 7th 2016 - Council authorized staff to submit an allocation request in the amount of $453,483.

March 20, 2017 - Council authorized staff to submit an allocation request in the amount of $130,289.

March 19, 2018 - Council authorized staff to submit an allocation request in the amount of $380,991.

March 18, 2019 - Council authorized staff to submit an allocation request in the amount of $535,447.

April 6, 2020 - Council authorized staff to submit an allocation request in the amount of $517,709.

April 5, 2021 - Council authorized staff to submit an allocation request in the amount of $190,592 March 21, 2022 - Council authorized staff to submit an allocation request in the amount of $412,246.

Other:

N/A
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File #: 23-0123 Agenda Date: 4/17/2023 Agenda #: 6.

Alternatives:

Do not submit an allocation request and forfeit the funds.

Recommended Motion (and Alternative Motions if expected):

I move to approve Resolution No. 2023-09, authorizing staff to submit a grant application in the amount of $411,201 to the California Department of Transportation Low Carbon Transit Operations Program for V-LINE operations.

Environmental Assessment Status:

N/A
CEQA Review:

N/A
Attachments:

Resolution 2023-XX
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RESOLUTION #2023-__

AUTHORIZATION FOR THE EXECUTION OF THE

CERTIFICATIONS AND ASSURANCES AND AUTHORIZED AGENT FORMS

FOR THE LOW CARBON TRANSIT OPERATIONS PROGRAM (LCTOP)
FOR THE FOLLOWING PROJECT(S):

EXPANSION OF V-LINE SHUTTLE SERVICES IN THE AMOUNT OF $411,201

WHEREAS, the City of Visalia is an eligible project sponsor and may receive state funding from the Low Carbon Transit Operations Program (LCTOP) for transit projects; and

WHEREAS, the statutes related to state-funded transit projects require a local or regional implementing agency to abide by various regulations; and

WHEREAS, Senate Bill 862 (2014) named the Department of Transportation (Department) as the administrative agency for the LCTOP; and

WHEREAS, the Department has developed guidelines for the purpose of administering and distributing LCTOP funds to eligible project sponsors (local agencies); and

WHEREAS, the City of Visalia wishes to delegate authorization to execute these documents and any amendments thereto to Leslie Caviglia, City Manager or her Designee.

WHEREAS, the City of Visalia wishes to implement the following LCTOP project(s) listed above,

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Visalia that the fund recipient agrees to comply with all conditions and requirements set forth in the Certification and Assurances and the Authorized Agent documents and applicable statutes, regulations and guidelines for all LCTOP funded transit projects.

NOW THEREFORE, BE IT FURTHER RESOLVED that Leslie Caviglia, City Manager or her Designee be authorized to execute all required documents of the LCTOP program and any Amendments thereto with the California Department of Transportation.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Visalia that it hereby authorizes the submittal of the following project nomination(s) and allocation request(s) to the Department in

FY 2022-23 LCTOP funds:

List project(s), including the following information:

Project Name: Expansion of V-LINE Shuttle Services
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Amount of LCTOP funds requested: $411,201
Short description of project: V-LINE services for operations from Visalia to Fresno Contributing Sponsors (if applicable): Tulare County Association of Governments

AGENCY BOARD DESIGNEE:

BY: ________________________________

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Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 23-0125 Agenda Date: 4/17/2023 Agenda #: 7.

Agenda Item Wording:

Authorization for the City Manager to enter into an agreement with California Vanpool Authority (CalVans) to provide vanpool service on behalf of Visalia Transit for a subsidy of $300 per vanpool per month not to exceed $300,000 annually for one (1) single year term and authorize a not to exceed amount payment of $45,000 for the past four months.

Deadline for Action: 4/17/2023 - Outstanding invoices that need to be paid.

Submitting Department: Administration - Transit
Contact Name and Phone Number:

Caleb Bowman, Management Analyst, [email protected], (559)713-4794 Angelina DeRossett, Transit Manager, [email protected], (559) 713-4591 Nick Mascia, Assistant City Manager, [email protected], (559) 713-4323 Department Recommendation:

Staff is recommending that City Council authorize the City Manager to enter into an agreement for vanpool service between the City of Visalia and California Vanpool Authority (CalVans) for a subsidy in the amount $300 per vanpool per month not to exceed $300,000 annually for one (1) single year term. Also, staff recommends City Council authorize a not to exceed payment of $45,000 for the past four month’s invoices the City has received.

Summary:

Visalia Transit entered into a five (5) year contract with California Vanpool Authority (CalVans) in 2016 which expired in May 2021. Since 2021, Visalia Transit has been in a month-to-month contract as there were conversations with Tulare County Regional Transit Agency (TCRTA) of a joint procurement. Those conversations have not evolved into any actions on Visalia Transit’sor TCRTA’s side. Meanwhile, Visalia Transit has been operating on the month-to-month contract that needs to cease. While Visalia Transit staff develops a Request for Proposals (RFP) to award a five-year contract, Staff is seeking authorization to enter into a contract with CalVans for a one-year term and authorization to pay services rendered over the past four months.

Background Discussion:

History
CalVans is a Joint Power Authority (JPA) with membership from ten (10) Council of Governments, including Tulare County Association of Governments (TCAG). CalVans offers employers and their employees a reliable, cost-effective, alternative mode of transportation to the single occupant vehicle (SOV) in areas or on routes that are not efficiently served by public transit. Typically, this is for groups of employees that work for the same employer or employer location, and usually travels across city and county lines. CalVans provides the vehicle, maintenance, fuel, and insurance as a turnkey operation. Riders pay a flat fee for an 8, 10 or 12-passenger van; and one, or more, Visalia City Council Printed on 4/14/2023Page 1 of 4
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File #: 23-0125 Agenda Date: 4/17/2023 Agenda #: 7.
employees is certified as the driver.

Fare Structure
Currently, CalVans operates about 22 vanpools originating within Visalia city limits. Under this agreement, the City will reimburse CalVans up to $300 per month per vanpool, up to a maximum incentive of $300,000 per year. This $300 will cover an average of 20% of the cost to the vanpool rider. A typical scenario is a 12-passenger van is provided for $1,500 per month. Split 11 ways (driver goes free) comes to $136 per month per rider. If they work an average of 20 days per month, that equates to $6.82 per day or $3.41 each way. With the proposed subsidy, it would cost the rider about $2.73 per one-way trip, which equates very closely with the $1.75 bus fare on a fixed route bus, given that these vanpool trips are typically at least twice the distance.

Funding and Justification
Funding for this agreement will come from the Transit Local Transportation Funds (LTF); however, it will increase the City’s annual Federal Transit Administration (FTA) funding allocation under the current formula program by more than twice the proposed budgeted amount. Under the current federal allocation formula, derived from the National Transit Database (NTD), the miles driven by each vanpool is reported and used as one of several factors in the distribution of Urbanized Area Formula Funding program (5307) federal transit funds. The 5307 program under 49 U.S.C. Section 5307 makes Federal resources available to urbanized areas and to Governors for transit capital and operating assistance and for transportation related planning in urbanized areas. Visalia’surbanized area (UZA) includes Tulare, Exeter, Farmersville, and Goshen categorizing it as a large UZA with a population of 200,000 or more. For large UZA’s,the formula is based on a combination of revenue vehicle miles and passenger miles as well as population and population density. Visalia Transit’s 5307 apportionment is utilized to pay its Operations & Maintenance contract by covering up to 50% of its operations and 80% of maintenance costs.

Transit agencies located in an UZA receive a 5307 apportionment based on their annual reporting into the NTD system. This reporting includes how far buses travel, how long they spend traveling, how many riders are carried and the cost to provide the service. Generally, the larger the system, the more 5307 funds are received. Transit agencies outside of a UZA, but serving the UZA area, may also report passenger data related to trips that began or ended in the UZA. Vanpool trips are an example of a type of transit trip that may contribute substantial ridership data to a UZA. The reporting of the trips is done by vanpool provided on behalf of the UZA. These 5307 funds generated by the additional reporting stays with the transit agency serving the UZA, it does not return to the agency that reported the passenger data. The reported miles do not impact the 5307 apportionment for two (2) years, i.e. the FY 16/17 miles will count towards the FY 19/20.

CalVans has been reporting these miles on behalf of Visalia Transit for several years, which has resulted in an increase in 5307 federal transit funding. Based on the example provide by CalVans with the 2016 agreement, the Visalia UZA with a total subsidy of $450,000, would receive an additional $1,476,444 in 5307 federal funds annually. Over the last six years, based on the 2016 numbers, Visalia Transit has received an estimated $635,110annually in additional 5307 federal funds with an average annual subsidy paid of $193,573. Much less than the not to exceed amount of $300,000 being requested by staff. Increasing the number of vanpools results in a corresponding increase in 5307 funds. Visalia Transit staff have requested updated numbers and are still waiting to receive them. If they are received prior to the April 17th meeting they will be provided to Council.

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Vanpools in the Visalia area has many other benefits aside from additional federal funding, such as:
· Reducing Air Pollution
· Reducing Traffic Congestion
· Improving Access to Employment
· Increasing Safety
These are many of the same goals of public transit and this allows Visalia Transit to offer this as an additional option to operating an SOV. In addition to the vanpools operated out of Visalia, there are others operated out of the rural areas of Tulare County. These will also be included in the Visalia reported data, as they have nowhere else to be included currently. Staff recommends the City support this effort to increase the number of vanpools operating out of Visalia by entering into this agreement to incentivize that activity.

Fiscal Impact:

The funding for this contracted service is an ongoing operations cost for Transit budgeted under 4551 -55375. This line item is budgeted at $224,400 for Fiscal Year 22/23. Year-to-date, $147,750 remains for this fiscal year so there are sufficient funds available to pay the costs through this fiscal year. Based on the calculation provided by CalVans in 2016, this will have a $984,296 maximum positive fiscal impact resulting from a total subsidy of $300,000. The funding source that is benefited from Visalia Transit participating in this program is the 5307 grant which is used to pay our Operations and Maintenance contract. The more money the City receives for operations dollars means less money spent out at Local Transit Funds (LTF) that can be set aside for other City projects.

Prior Council Action:

April 16, 2016 - City Council approved the 5-year contract with CalVans.

Other:

None.

Alternatives:

Do not enter into an agreement with California Vanpool Authority (CalVans) but allow the payment of outstanding invoices year-to-date and those incurred during the next 60-day, cancelation period required under the contract, not to exceed $80,000. This would cancel the agreement with CalVans creating a lapse in service and mileage reported on Visalia Transit’s behalf, cause a negative impact on funds Visalia Transit receives through Urbanized Area Formula Funding program 5307 apportionment until a new contract is awarded.

Recommended Motion (and Alternative Motions if expected):
.recommendation
I move to authorize the City Manager to enter into an agreement with CalVans in a not to exceed amount of $300,000 for a signal year term and authorize back payments as discussed in this report not to exceed $45,000.

Environmental Assessment Status:

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None.

CEQA Review:

None required.

Attachments:
1) CalVans Agreement - Fully Executed 5.3.16
2) CalVans Amendment to Agreement between COV and CalVans Visalia City Council Printed on 4/14/2023Page 4 of 4
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Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 23-0126 Agenda Date: 4/17/2023 Agenda #: 8.

Agenda Item Wording:

Authorize the City Manager to submit a grant application to the Clean California Local Grant Program.

Deadline for Action: 4/28/2023 - Application submission deadline Submitting Department: Administration - CIP Engineering Contact Name and Phone Number:

Dolores Verduzco, Financial Analyst, [email protected], (559) 713-4540 Diego Corvera, Civil Engineer, [email protected], (559) 713-4209 Frank Senteno, City Engineer, [email protected] (559) 713-4331 Nick Mascia, Assistant City Manager, [email protected], (559) 713-4323 Department Recommendation:

Staff recommends that the City Council authorize the City Manager to submit a grant application to the California Department of Transportation (Caltrans) for the Clean California Local Grant Program, Cycle 2 Call for Projects, for the project below.
· North Visalia Beautification Project ($3,000,000.00, Total Cost Estimate) Background Discussion:

Proposed Project:

To provide the City the best chance and to be competitive in this call for projects, staff recommends submitting a project that focuses on improvements along Court Street and NE 3rd Avenue from State Route 63 (Dinuba Boulevard) to Houston Avenue. The final scope of the project is currently being refined to account for public feedback received on the proposed improvements, but currently the project may include the following:
· Intersection Bulb outs using community supported pavement artwork. · Landscaped Medians or enhanced parkways to beautify the corridors and reduce the heat island affect.
· Street lighting to enhance the public space.
· Improve aesthetics to help transform NE 3rd and Court Streets as entrance gateways from Houston Avenue to State Route 63 (Dinuba Boulevard).
· Annual clean up events to keep the neighborhoods clean and welcoming.

Based on the grant rating metrics, the most competitive projects need to provide a direct benefit to an underserved community, therefore city staff focused the initial project scoping based on the most disadvantaged census tracts identified within the City, which are located in the north Visalia area.

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File #: 23-0126 Agenda Date: 4/17/2023 Agenda #: 8.

Staff reviewed the adopted ATP plan and City General plan to further refine potential project locations to ensure consistency with City growth and goals and this project best fits the criteria established to meet the below identified goals of Clean California Grant.

Grant Program Criteria:

The Clean California Local Grant Program (CCLGP) announced a Call for Projects in February 2023 for Cycle 2 of the grant program. Applications are due by April 28, 2023.

The CCLGP is a competitive statewide program administered by the California Department of Transportation (Caltrans) and is part of the nearly $1.1 billion Clean California initiative to remove litter and beautify public spaces. The grant program was established in 2021 through approval of Assembly Bill 149.

The intent of the CCLGP is to achieve the following goals:
· Reduce the amount of waste and debris within public rights-of-way, pathways, parks, transit centers, and other public spaces.
· Enhance, rehabilitate, restore, or install measures to beautify and improve public spaces and mitigate the urban heat island effect.
· Enhance public health, cultural connections, and community placemaking by improving public spaces for walking and recreation.
· Advance equity for underserved communities.

For the current round of funding available for Cycle 2, approximately $100M is available for award.

Each grant awarded by the CCLGP has a maximum limit of $5M and projects must be completed by June 30, 2026. Applications are due by April 28, 2023, with Caltrans expected to announce the award of funds in August/ September of 2023.

For projects to be considered eligible to submit to the CCLGP, project locations must meet the following conditions: on public property, under the applicant’sjurisdiction, partially or fully located in an underserved community.

In reference to an underserved community, the grant guidelines stipulate that at least 75% of the population surrounding the project site must be underserved. The grant guidelines identify specific online tools to determine if a project site is within an underserved community. This consists of analyzing the census tracts within the project site to determine the area based one of the following methods, average median income, the number of public-school students that are eligible for free or reduced-prime meals, number of environmental impacts per the CalEnviro database or identifying the “health”of the community through the Healthy Places Index online data. The Healthy Places Index and CalEnviro data considers social conditions that drive health such as education, job opportunities, clean air and water, and other indicators that are associated with life expectancy. The average median income metric will be used for our project as it is most representative of the community’s need.

This grant program will not reimburse activities and expenditures that include displacing people experiencing homelessness, acquisition of right-of-way or land, and will not fund purely planning projects.

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File #: 23-0126 Agenda Date: 4/17/2023 Agenda #: 8.

Public Outreach:

Staff conducted a public outreach meeting on April 11th to gather input from the public on the proposed project. The grant guidelines of the program recommend agencies engage with the local public to better develop a project that reflects community priorities. In addition to hearing the public’s thoughts on the proposed projects, Staff hopes to also gather anecdotal data; helpful to articulate the project direct benefit.

Fiscal Impact:

The maximum amount of funds that may be requested per application is $5M. However, applications requesting $3M or less may be more competitive. The total estimated cost of the North Visalia Beautification Project is $3M.

The CCLGP has a local match requirement and ranges from 0% to 50%. The local match percentage is based on the severity of disadvantage of all the census tracts with a ½ mile radius of the perimeter of the project site. The more disadvantaged the underserved community is, the lower the amount of local match contribution.

For the proposed project, the local match requirement is 0% based on the average median incomes within the surrounding community being less than $55,996 (source: Census Track Level Data from the 2017-2021 American Community Survey 5-year Estimates). No additional points will be awarded for local match contributions that exceed the minimum required match.

Following is a summary cost breakdown for the project. Amounts shown below are estimates since project components are still being developed and cost estimates will be further refined. The grant application will request the total cost of the project be fully funded by the grant program.

Clean CA Grant - North Visalia Beautification Project
Funding Source
Clean CA Grant $3,000,000
Total Project Funding $3,000,000
North Visalia Beautification Project - Budget
Design & Project Management $400,000
Construction $2,400,000
Inspection $50,000
Construction Management $100,000
Materials Testing $50,000
Estimated North Visalia Beautification Project Cost$3,000,000 Note that the addition of these new infrastructure elements will require future required maintenance, i.e. added landscaping, streetlights, and public art. See below an approximate annual maintenance cost based on a 20-year project life:

Clean CA Grant - North Visalia Beautification Project - Annual Maintenance Cost North Visalia Beautification Project - Maintenance
Trees and Landscaping (Approximately 140 Trees, 12,000 Sqft for shrubs)$8,400 Pavement Maintenance Reduction (Removal of 27,000 Sqft of AC)($3,480) Striping, signage and Markings $1,000
Art Work $1,000
Sub Total $6,920
Contingency 20% - Material increase - Unforeseen$1,390
Estimated North Visalia Beautification Project Annual Maintenance Cost$8,304 Visalia City Council Printed on 4/14/2023Page 3 of 4
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File #: 23-0126 Agenda Date: 4/17/2023 Agenda #: 8.

Clean CA Grant - North Visalia Beautification Project - Annual Maintenance Cost North Visalia Beautification Project - Maintenance
Trees and Landscaping (Approximately 140 Trees, 12,000 Sqft for shrubs)$8,400 Pavement Maintenance Reduction (Removal of 27,000 Sqft of AC)($3,480) Striping, signage and Markings $1,000
Art Work $1,000
Sub Total $6,920
Contingency 20% - Material increase - Unforeseen$1,390
Estimated North Visalia Beautification Project Annual Maintenance Cost$8,304 Contingent upon grant award, staff will return to Council to request acceptance of the grant and appropriation of grant funds based on the awarded amount.

Prior Council Action:

None.

Alternatives:

Do not submit the North Visalia Beautification project to the Clean California Local Grant Program Call for Projects.

Recommended Motion (and Alternative Motions if expected):

I move to authorize the City Manager to submit a grant application to the Clean California Local Grant Program (CCLGP) Call for Projects for the North Visalia Beautification Project in the amount of $3,000,000.

Environmental Assessment Status:

To be determined during preliminary engineering phase.

CEQA Review:

To be determined during preliminary engineering phase.

Attachments:

Proposed Project Location Map
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City of Visalia ‐ Clean CA Grant Opportunity
Oval
Park
Wittman
Center
Proposed Project Location
Project Routes Identified in City ATP Plan
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Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 23-0130 Agenda Date: 4/17/2023 Agenda #: 9.

Agenda Item Wording:

Authorize the City Manager to enter a contract with Central Cal Waterworks to perform as Chief Plant Operator at the City of Visalia Water Reclamation Facility (WRF). This is a one (1) year contract that may be renewed for four (4) consecutive one (1) year periods upon mutually agreed upon terms, and an annual not to exceed amount of $104,000.

Deadline for Action: 4/17/2023
Submitting Department: Public Works
Contact Name and Phone Number:

Wyndi Ferguson, Public Works Manager, [email protected], 713-4186 Nick Bartsch, Public Works Director, [email protected], 713-4052 Department Recommendation:

Background Discussion:

The City of Visalia Water Reclamation Facility (WRF) is designated by the State Water Resources Control Board as a Grade V Wastewater Treatment Plant (WWTP), and the Chief Plant Operator (CPO) responsible for the overall operation of the WWTP must be a certified WWTP Operator at the same grade level as the Plant.

In March of 2022 the WRF Grade V Supervisor left the employment of the City of Visalia. To remain in compliance with State Water Board regulations, staff requested an emergency purchase order and entered into a temporary agreement with Central Cal Waterworks, Inc. to act as the CPO for the Water Reclamation Facility for $8,345 per month, with a not to exceed amount of $90,000 as staff was hopeful that a Grade V Operator would be hired within the year. Central Cal Waterworks currently contracts with several cities and districts up and down the Central Valley, including the cities of Tulare, Exeter, and Farmersville to act as CPO for their various facilities. The duties include, but are not limited to, ensuring that all Waste Discharge Report samples are taken, all records are maintained, and all required operating reports to the State Water Resources Control Board are submitted.

Under the current contract, Jason Sherrell with Central Cal Waterworks Inc. has become very familiar with the City’sfacility, operations and staff. He holds the required Grade V license and has been responsive to the City’sneeds under this agreement. Due to the size and complexity of the WRF, along with other current staffing shortages, the City has relied on Central Cal Waterworks to Visalia City Council Printed on 4/14/2023Page 1 of 2
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File #: 23-0130 Agenda Date: 4/17/2023 Agenda #: 9.

WRF, along with other current staffing shortages, the City has relied on Central Cal Waterworks to not only monitor operations for compliance with State requirements, but also complete and submit all regulatory reports under the City’s Waste Discharge Requirement (WDR).

Staff is actively recruiting to fill current vacancies and remains hopeful that a Grade V Operator can be hired in the future, however, after several recruitments, staff has been unsuccessful in retaining a Grade V Operator. The current emergency purchase order has reached the $90,000 not to exceed amount, therefore staff is requesting to enter a contract with Central Cal Waterworks, Inc. for a monthly fee of $8,645 per month to act as Chief Plant Operator for the Water Reclamation Facility until which time a Grade V Operator can be hired.

Fiscal Impact:

The contract will be $8,645 per month, with an annual not to exceed amount of $104,000. Funding for these services is available within the Wastewater Treatment Plant Enterprise fund (431) operating budget.

Alternatives:

Without a Grade V Operator, the City would face disciplinary actions and fines from the State Water Board. Approve a short-term temporary contract with Central Cal Waterworks, while a formal Request for Proposals (RFP) is prepared through the City’sPurchasing Department to competitively select a consultant to perform these services.

Recommended Motion (and Alternative Motions if expected):

Authorize the City Manager to enter a contract with Central Cal Waterworks to perform as Chief Plant Operator at the City of Visalia Reclamation Facility (WRF). This is a one (1) year contract that may be renewed for four (4) consecutive one (1) year periods upon mutually agreed upon terms, and an annual not to exceed amount of $104,000.

Attachments:

Central Cal Waterworks, Inc proposal
State Water Boards Wastewater Treatment Plant Classification guidelines Visalia City Council Printed on 4/14/2023Page 2 of 2
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CENTRAL CAL WATERWORKS INC. PROPOSAL

FOR CITY OF VISALIA PUBLIC WORKS

WHEREAS, the City of Visalia, desires to employ a Certified Chief Wastewater Treatment Plant Operator, and proposal

WHEREAS, City of Visalia, currently lacks the ability to perform the duties required of a Certified Chief Wastewater Operator in the State of California; and

WHEREAS, City of Visalia and Central Cal Waterworks Inc. have entered into a Personal Services Agreement for the position of Certified Chief Wastewater Treatment Plant Operator on the following terms and conditions:

1. Central Cal Waterworks Inc. is the holder of SWRQB Grade V Wastewater Treatment Plant Operator Certificate # 28578; AND Contract Operator License CO 0225.

2. The parties hereto agree that Central Cal Waterworks Inc. will be responsible for the duties and responsibilities of Chief Plant Operator for all City of Visalia Wastewater Treatment Facilities, in accordance with the rules and regulations of the California State Water Resources Control Board.

3. Central Cal Waterworks Inc. hereby agrees to act as the Certified Chief Wastewater Treatment Plant Operator for the City of Visalia’s Domestic Wastewater Treatment Facility.

4. It is further agreed that Central Cal Waterworks Inc. is an Independent Contractor in and for the City of Visalia and is not subject to employment policies, provisions, rules, and regulations.

5. It is further agreed that this Agreement shall be effective commencing on 3/1/2023 and shall remain fully operative monthly. Contract may be terminated by either party with 30 days written notice.

6. The parties hereto agree to the terms and conditions set forth in the attached Addendum with respect to the parties’ responsibilities.

7. The parties have agreed to the following compensation for the above-described general services and for the specific services described in the attached Addendum: Monthly Fee of $8645.00.

8. The City of Visalia shall pay Central Cal Waterworks Inc. on or before the tenth (10th) day of each month for the previous month’s services.

9. Emergency calls outside of the regular and agreed upon work schedule, will be charged on a per call basis at Central Cal Waterworks Inc. current rate schedule.

1. Information Regarding Parties Involved:

Community Wastewater and Water Supply Information:

Name of Supply: City of Visalia Industrial and Domestic WWTF System ID #:

City of Visalia
Mailing Address:
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System Contact:

Emergency Contact:

Certified C.S.W.R.C.B Wastewater Treatment Operator
Jason Sherrell: Central Cal Waterworks Inc.

California State Water Resources Control Board
Wastewater Treatment Operator: Grade V Cert # 28579:

Water Treatment Operator Grade T-3 Cert # 29746:

Water Distribution Operator Grade D-2 Cert # 35158
Mailing Address: P.O. Box 1088 Auberry CA 93729
Phone: (559) 575-5627
Email: [email protected]

2. Starting Date of Agreement:

Starting Date: _____March 1, 2023_ _________________________

3. The Duties and Responsibilities of Each Party Involved:

City of Visalia’s Duties and Responsibilities include but are not limited to:

A. Provide materials for correcting any maintenance and/or operational problems.

B. Provide necessary monetary funds to cover the costs of requirements outlined in A.

C. Ensure that all projects requiring construction and operating permits meet State Contractors Board Agency requirements.

D. Provide a spare parts inventory.

E. Must maintain on file for five (5) calendar years all monitoring reports. - including, but not limited to:
- Annual Wastewater Reports
- Discharge Monitoring Reports
- Monthly Operating Reports
F. Maintain copies of all pertinent reports and records at the Treatment Plant or other on-site facility.

Central Cal Waterworks Inc.’s Duties and Responsibilities include but are not limited to:

A. Act as Chief Wastewater Treatment Plant Operator performing the required visits specified in this agreement.

B. Maintain proper records of the specified visits.

C. In addition to the specified visits, the Central Cal Waterworks Inc. must also maintain and ensure availability of a means of communication for regulatory agencies, in the event of routine or emergency operational problems.
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D. Ensure by personal action and by directives to system personnel that system is being operated in a manner that provides for the safe and proper production of Wastewater.

E. Ensure by personal action and by directives to system personnel that all necessary and required routine operational control testing is performed in a competent and timely manner.

F. Issue notices, including notification to the State Water Resources Control Board’s Regional Office, and the local county Public Health Department, per regulatory guidelines.

G. Respond to Agency requests for information, site visits, or any other requested data.

H. Ensure that all WDR permit samples are taken in compliance with the rules and regulations of the California State Water Resources Control Board.

I. Maintain and submit to the State Water Resources Control Board all required operating records and reports, in a timely manner. These records and reports include, but are not limited to:
- Discharge Monitoring Reports
- Monthly Operating Reports
- Annual Wastewater Reports

On Call 24 hours a day 7 days a week for emergency response to any issues related to the Wastewater Treatment Facility

1. Access to Equipment: The customer agrees to permit the agents and representatives of Central Cal Waterworks Inc. to have access to the facilities and equipment at any time during regular working hours for the sole purpose of performing the services.

2. It is understood and agreed by all the parties hereto that the City of Visalia shall not hire or offer employment to any existing or former Central Cal Waterworks Inc. employee having any involvement with the services described in Section 2 of this Agreement. The provisions of this paragraph shall remain in effect for a period of two (2) year following termination of this Agreement.

3. Additional Services or Calls: If the City of Visalia requests Central Cal Waterworks Inc. to perform any services or to provide any materials other than those specified in this Agreement the City of Visalia shall pay Central Cal Waterworks Inc. for such additional services or materials at Central Cal Waterworks Inc.’s then-current rate schedule in addition to the charges provided for in this Agreement.

4. The term of this Agreement shall commence as of the date 1st day of March 2022 and shall continue in full and effect for Monthly until one or both sides of this agreement has terminated this agreement with 30 days written notice to other.

5. Warranty Disclaimer: Under no circumstances shall Central Cal Waterworks Inc. have any warranty obligation, express or implied, including warranty for a particular purpose or merchantability, beyond that which is expressly provided by the manufacturer of the equipment or materials furnished by Central Cal Waterworks Inc. to the City of Visalia. Limitation of Liability: The liability of Central Cal Waterworks Inc. is expressly limited to the amount of 187
compensation paid to Central Cal Waterworks Inc. by the City of Visalia, except in cases of negligence. In no event shall Central Cal Waterworks Inc. be liable for damages other than actual damages.

6. Attorney Fees and Costs: City of Visalia and Central Cal Waterworks Inc. agree that each party shall bear their own costs and expenses, including attorney's fees and legal costs, in connection with any dispute arising out of this Agreement.

7. Venue and Jurisdiction: If any legal proceeding or other legal action relating to this Agreement is brought or otherwise initiated, venue shall be in Tulare County Superior Court, California which shall be deemed a convenient forum. The parties to this Agreement expressly and irrevocable consent and submit to the jurisdiction of the courts of the State of California.

8. Successors and Assigns. This Agreement may not be assigned or delegated by either party without the prior written consent of the other party. The provisions of this Agreement are binding on the parent, subsidiary, and successor companies of the parties.

9. Partial Invalidity: If any provision of this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions will nevertheless continue in full force and effect without being impaired or invalidated in any way.

CENTRAL CAL WATERWORKS INC.

Dated: _________________ By: __________________________________________________ Jason Sherrell, President Central Cal Waterworks Inc.

Authorized Officer: I certify under penalty of perjury under the laws of the State of California that I am fully authorized to execute this Agreement for CENTRAL CAL WATERWORKS INC. in the capacity I have stated, and that such execution is sufficient to bind the same.

CITY OF VISALIA

Dated: _________________ By: __________________________________________________ City Manager
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Approved as to Form

Dated: _________________ By: __________________________________________________ City Attorney

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Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 23-0133 Agenda Date: 4/17/2023 Agenda #: 10.

Agenda Item Wording:

Authorize the City Manager to amend the not to exceed amount of the contract with Denali Water Solutions for the removal and disposal of biosolids produced at the Visalia Water Reclamation Facility from $220,000 to $280,000 and appropriate an additional $83,500 from the Wastewater Fund (431).

Deadline for Action: 4/17/2023
Submitting Department: Public Works
Contact Name and Phone Number:

Wyndi Ferguson, Public Works Manager, [email protected], (559) 713-4186 Nick Bartsch, Public Works Director, [email protected], (559) 713-4052 Department Recommendation:

Background Discussion:

In December of 2022 City Council approved a 6-month extension of the contract with Denali Water Solutions for the annual removal and disposal of the biosolids from the Water Reclamation Facility (WRF) with a not to exceed amount of $220,000 and appropriated $100,000 from the Wastewater Fund to cover the estimated expense.

As stated in the WRF Waste Discharge Requirements (WDR), biosolids can only be kept onsite for a period of 2 years, and the current stockpile had to be removed no later than December 31, 2022.

There is no way to determine the exact tonnage until the material is hauled off and weighed, so staff estimated 2,250 tons based on the average over the last three years, at a cost of $72 per ton.

Denali had removed over 2,000 tons by the end of December, however, a large amount of material remained to be removed. In order to remain in compliance with the WDR, Denali was given the go ahead to continue hauling until which time inclement weather caused the area to become unsafe to operate in. Denali was able to safely return at the end of January and completed the job within 2 weeks. A total of 3,846.94 tons of material were removed.

Fiscal Impact:

This service is budgeted annually and currently has $193,500 available. However, due to the increased tonnage, the budget is estimated to be short approximately $83,500. Staff is requesting to increase the budget in the WRF Bio Solids division (4336-55700) by $83,500 to cover the additional expense.

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File #: 23-0133 Agenda Date: 4/17/2023 Agenda #: 10.

Prior Council Action:

December 5, 2022
Authorize the City Manager to extend the contract with Denali Water Solutions for the removal and disposal of biosolids produced at the Visalia Water Reclamation Facility for a period of six (6) months for an amount no to exceed $220,000 and appropriate an additional $100,000 from the Wastewater Fund.

Recommended Motion (and Alternative Motions if expected):

That City Council authorize the City Manager to amend the not to exceed amount of the contract with Denali Water Solutions for the removal and disposal of biosolids produced at the Visalia Water Reclamation Facility from $220,000 to $280,000 and appropriate an additional $83,500 from the Wastewater Fund (431).

Attachments:

Denali Water Solutions Invoices
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Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 23-0137 Agenda Date: 4/17/2023 Agenda #: 11.

Agenda Item Wording:

Consider confirmation of a letter of support for Tulare Irrigation District’s request for funding for the Seaborn Reservoir Project.

Deadline for Action: N/A
Submitting Department: Administration
Contact Name and Phone Number: Rhett Anderson, 559-713-4530 Department Recommendation:

It is recommended that the City Council endorsement the letter of support for the Tulare Irrigation District (TID) request for community funding for the Seaborn Reservoir Project (Project).

Background Discussion:

A time-sensitive request from Tulare Irrigation District to support the District’s quest to secure funding for the Project was received between Council meetings. There was not time to bring the request to Council prior to the deadline. As with similar previous requests that were consistent with the Council’s legislative platform, staff prepared and the Mayor signed a letter of support. (Copy attached) Should the Council not concur with this action, the letter of support will be withdrawn.

The San Joaquin Valley (Valley) is one of the most productive areas for agriculture in the United States, and as a result of the significant agriculture that occurs here, water plays an essential role in the human, economic, and cultural health of the region.

The wellbeing of the Valley is primarily dependent on the precipitation that occurs in the Sierra Nevada Mountain range, which runs north and south along the eastern boundary of the Valley.

Moisture that collects in this mountain range as snow and rain is released into the many waterways over the course of the year, which supplies water to the Valley floor. One of the primary collection points to the southern portion of the Valley is the Kaweah River, which supplies water to TID, and, on occasion, to the City of Visalia.

The Kaweah River, capable of producing 5,500 cubic feet per second (CFS) of water during peak production, flows from deep within the Sierra Nevada Mountain range, and collects into the Kaweah Reservoir. The location of the reservoir is at McKay Point and is the area in which the Kaweah River leaves the Kaweah Reservoir, commonly known as Lake Kaweah, and is divided into a number of the distributaries of Visalia, TID, and the City of Tulare. The Projects purpose is to capture some of these flows during significantly wet years, and storing water to use during the summer months when surface water supplies are less available.

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File #: 23-0137 Agenda Date: 4/17/2023 Agenda #: 11.

The water captured in this reservoir during years of heavy precipitation would be used to mitigate the effects of periodical drought in the western United States, like what was observed in the 2021 water year. The capacity to store additional water resources would be used to supply water for irrigation when state allocations are low, as well as conduct groundwater aquifer recharge when municipal and irrigation demands have been met.

The Project consists of excavating a 260-acre area and supplying it with divergent surface flows from the Kaweah River. The capacity of a reservoir this size is capable of holding approximately 8,000 acre feet, or enough supplies to sustain approximately 12,000 homes in Visalia for one year, based on 2020 water use data. While Visalia is not directly impacted or involved in this project, the calculation provided is an indicator of the magnitude of the project. The Council has been supportive of other projects that would benefit the Kaweah Sub-basin.

The 2021 water year was the driest water years in Tulare County history, with just 8.11 inches of rainfall on average, the second driest water year occurring in the winter of 1976 to 1977, with just

9.12 inches of precipitation. Inversely, 2023 has been one of the wettest years in California recorded history. This project could have been used to store some of the excess water we experienced during the recent flood releases, and additionally held water off of the system during peak surges within the system due to heavy uncontrolled precipitation.

From when the Valley was first settled, groundwater wells have been used to supplement surface water supplies during times of drought. Over time, a dependence grew on groundwater as it was more predictable and reliable than winter precipitation. The preference by many for groundwater over surface water created overdraft in the Valley, accompanied by numerous negative impacts associated with overdraft of the groundwater aquifer. One of the more severe of these impacts is subsidence, which is being experienced by residents throughout the valley in one way or another. In order to combat the negative impacts of overdraft, a key component is to discontinue extracting more from the underground aquifer than can be replaced. This includes practices like groundwater allocations, water trading markets, and increasing surface capacity when excess surface supplies are available.

This Project would, in theory, decrease groundwater dependency within the region, therefore preventing further subsidence, and ultimately move the Southern San Joaquin Valley towards a more sustainable future.

Fiscal Impact:

The fiscal impacts associated with the council approval of this Letter of Support are null.

Prior Council Action: N/A
Other: N/A
Alternatives: N/A
Recommended Motion (and Alternative Motions if expected):

It is the recommendation of City Staff to confirm the letter of support for Tulare Irrigation District’s Seaborn Reservoir Project.

Environmental Assessment Status: N/A
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File #: 23-0137 Agenda Date: 4/17/2023 Agenda #: 11.

CEQA Review: N/A
Attachments: Letter of support
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Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 23-0093 Agenda Date: 4/17/2023 Agenda #: 12.

Agenda Item Wording:

Authorize staff to apply for Homekey Round 3.0 not to exceed $15 million to assist with the development and operation of the Majestic Project to convert the Majestic Motel into permanent supportive rental housing upon the completion of the application by the partner agency to fully comply with the grant and City requirements.

Deadline for Action: 4/17/2023
Submitting Department: Finance and Technology Services
Contact Name and Phone Number: Margie Perez, Housing Specialist, [email protected] <mailto:[email protected]>, (559)713-4460; Melody Murch Assistant Finance Director, [email protected] <mailto:[email protected]>, (559)713-4379; Renee Nagel, Finance Director, [email protected] <mailto:[email protected]>, (559)713-4375 Department Recommendation:

Staff recommends that Council:
· Receive a summary of the funding available for the Homekey Round 3 and authorize staff to apply as a joint application with RHCB Development, LP for the Homekey Round 3 Notice of Funding Available (NOFA) not to exceed $15 million dollars to assist with the development and operation of the Majestic Project to provide permanent supportive housing for people experiencing homelessness;
· Adopt Resolution 23-__ authorizing a joint application with RHCB Development, LP for Homekey 3.0 (round three) program as required by California Department of Housing and Community Development; and
· Authorize the City Manager or their designee to sign Resolution 23-__.

Background Discussion:

Homekey is a statewide effort to sustain and rapidly expand housing for people experiencing homelessness or at risk of homelessness administered by the California Department of Housing and Community Development Department (HCD). Homekey is an opportunity for state, regional, and local public entities to develop a broad range of housing types, including but not limited to hotels, motels, hostels, single-family homes and multifamily apartments, adult residential facilities, and manufactured housing, and to convert commercial properties and other existing buildings to Permanent or Interim Housing for the Target Population.

Homekey is a proven model for state, regional and local public entities to acquire, develop, and rehabilitate a broad range of housing types, including, but not limited to hotels, motels, hostels, single -family homes, multifamily apartments, adult residential facilities, and manufactured housing, and to convert commercial properties and other existing buildings to permanent or interim housing for those most in need.

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File #: 23-0093 Agenda Date: 4/17/2023 Agenda #: 12.

The Majestic Project: On December 20, 2021, Council approved the release of a Request for Proposals (RFP) for $1.8 million in HOME-ARP and $900,000 in Successor Agency Housing (SAH) funds for the development of Permanent Affordable Rental Housing for HOME-ARP Qualifying Populations. Staff released RFP-21-22-28, Development of Permanent Affordable Rental Housing for Qualifying Populations, in the spring of 2022. On July 18, 2022, Council awarded RFP 21-22-28 to the RH Community Builders (RHCB) to develop the Majestic Motel into Permanent Affordable Rental Housing for people experiencing homelessness in accordance with HOME-ARP Qualifying Populations, with the use of $1.8 million in HOME-ARP and $900,000 in SAH funds. RHCB’s proposal indicated plans to apply for Homekey funds as the major source of funding for the Majestic Project. The project has also secured $1,044,000 in Housing and Homelessness Incentive Program (HHIP) funds and $207,691 in Homeless Housing, Assistance, and Prevention (HHAP) funding from the Kings/Tulare Homeless Alliance (KTHA). The secured match funding has been confirmed and verified by City staff. The Majestic Project total budget for acquisition and rehabilitation is approximately $17 million. The project has secured approximately $4 million in grant funding; therefore, has a development gap of $13.4 million, as shown below in Table 1 - Majestic Development Funding. As stated in their proposal, the project seeks to apply for Homekey funds to fund this gap. This project is currently undergoing an environmental review, which is expected to be completed this summer.

Table 1 - Majestic Development Funding
Secured Development Funding Amount
COV HOME-ARP $ 1,800,000
COV Successor Agency Housing 900,000
Homeless Housing, Assistance and Prevention (HHAP) 207,691 Housing and Homelessness Incentives Program (HHIP) 1,044,000 Total Secured Development Funding $ 3,951,691 Total Development Costs 17,398,349
Total Development Gap $ (13,446,658)
RH Community Builders: RH Community Builders (RHCB) will be the co-applicant and has extensive grant management experience with collection of tenant eligibility data, as well as managing several Homekey sites. RHCB will be responsible for completing the full Homekey application subject to review by the City. RHCB has extensive experience in Homekey funding and manages the following six Homekey sites: Crossroads Village Project (165-units) in Fresno, the Hacienda Project (250-units) in Fresno, the Sands Motel (50-units) in Fresno, the Ambassador (56-units) in Fresno, and Sequoia Village (50-units) in Visalia. RHCB upcoming projects include the San Joaquin Hotel (69 -units) in Fresno, the Dakota Project (99-units) in Fresno, the Twelvethirteen Project (90-units) in Merced, the Villa Project (52-units) in Fresno, Madison Gardens (50-units) in Tulare County, and the Majestic Project (42-units) in Visalia. RHCB has the necessary staff capacity, capital, assets, and operational resources to satisfy the obligations in connection with the Majestic Project.

Homekey Round 3 NOFA: The Homekey Round 3 Notice of Funding Availability (NOFA) has been released on March 29, 2023, and attached herein. The Homekey Round 3 NOFA will provide approximately $736 million in Homekey funding statewide and approximately $43 million of that amount will be available to the San Joaquin Valley region to develop or purchase housing for Visalia City Council Printed on 4/14/2023Page 2 of 9
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individuals experiencing homelessness. Due to the previous oversubscriptions of Homekey funds, HCD encourages eligible applicants to submit their application as soon as possible. HCD will release the Homekey application on April 24, 2023, and accept applications April 24, 2023, through July 28, 2023, or until the available funds are exhausted, whichever occurs first. RHCB is ready to prepare the full application and provide assurances for approvals and construction timelines for early submission to HCD to stay competitive with other Homekey Round 3 applications throughout the San Joaquin Valley.

The Homekey Rd 3 application will be approved by City staff for submission after a full review to ensure the project and application are in compliance with Homekey and City requirements. As a joint applicant, the City is responsible for project compliance and could be required to repay grant funds should the funding be mis-spent. This review will ensure that all aspects of the project and application are in order prior to submission. Majority of the information needed to complete the Homekey Round 3 application for the Majestic Project was submitted to the City in RH Community Builders proposal in response to the RFP for the use of HOME-ARP funds. Individual awards will generally be announced within 60 to 90 days of HCD’s receipt of a complete and accurate application.

Eligible Applicants: Eligible Homekey applicants are cities, counties, cities and counties, and all other state, regional and Local Public Entities, including councils of government, metropolitan planning organizations, and regional transportation planning agencies designated in Section 29532.1 of the Government Code, or tribal entities. Local Public Entity includes the duly constituted governing body of an Indian reservation or rancheria; a tribally designated housing entity, as specified; and a housing authority. Each of the foregoing entities may apply independently, or each entity may apply jointly with a nonprofit or for a non-profit corporation, a limited liability company (LLC), and/or a limited partnership (LP) as a Co-Applicant.

Eligible Uses: Awarded funds must be used to provide housing for the Target Population of people experiencing homelessness or at risk of homelessness and who are inherently impacted by or at increased risk for medical diseases or conditions due to the COVID-19 pandemic or other communicable diseases. All tenants of the Majestic will be chronically homeless that have been identified through the Coordinated Entry System (CES) as required by Homekey. The list of eligible uses is as follows:
· Acquisition or Rehabilitation of motels, hotels, hostels, or other sites and assets, including apartments or homes, adult residential facilities, residential care facilities for the elderly, manufactured housing, commercial properties, and other building with existing uses that could be converted to permanent or interim housing.
· Master leasing of properties for non-congregate housing. · Conversion of units from nonresidential to residential. · New construction of dwelling units.
· The purchase of affordability covenants and restrictions for units. · Relocation costs for individuals who are being displaced as a result of the Homekey project. · Capitalized operating subsidies for units purchased, converted, constructed, or altered with funds provided pursuant to HCS section 50675.1.3.

Eligible Projects: HCD welcomes and will consider a variety of innovative housing solutions as Visalia City Council Printed on 4/14/2023Page 3 of 9
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eligible projects. The following list of eligible projects is not exhaustive. · Conversion of nonresidential structures to residential dwelling units. · Conversion of commercially zoned structures, such as office or retail spaces, to residential dwelling units.
· Adult residential facilities, residential care facilities for the elderly, manufactured housing, and other buildings with existing residential uses.
· Multi-family rental housing projects.
· Excess state-owned properties.
· Shared housing or scattered site housing is permitted as long as the resulting housing has common ownership, financing, and property management, and each household signs a lease.

The Majestic Project qualifies under the following eligible Homekey project:
· Conversion of nonresidential structures to residential dwelling units.

Ineligible Projects: The following list of projects are ineligible for the use of Homekey funds:
· Existing Homekey assisted units, previously awarded under the previous round of Homekey funding.
· The Homekey program is intended to support the development of housing units and will not fund congregate shelter.

Program Deadlines: Capital funds must be expended within eight months of the date of award. For projects that involve acquisition and are receiving capital awards, Grantees must expend the funds by the expenditure deadline and the project escrow must be closed by the expenditures deadline.

Additionally, all applicable construction and/or rehabilitation must be complete within 12 months of the date of award. Homekey projects must achieve full occupancy within 90 days of construction and/or rehabilitation completion, or within 15 months of the date of award. Homekey operating funds must be fully expended by June 30, 2026.

The Majestic project already has infrastructure in place and is a rehabilitation project that will include the installation of kitchens. The remodel project is expected to take approximately four months and be completed well within the 12 month deadline for construction and the occupancy deadlines noted above.

Homekey Maximum Capital Grant Amounts and Capital Funding Match: Homekey will fund a maximum grant amount per door, which includes both acquisition and rehabilitation or new construction costs. The award will be the lower of the maximum grant amount, or the sum of the acquisition amount supported by an appraisal, whichever is lower, and any additional construction and rehabilitation expenses.

HCD will contribute a baseline amount per door, as outlined below, in whichever category is higher for the assisted unit. This base line contribution does not require a local match.

Unit Size - Baseline Capital Amounts:
· Studio or one-bedroom units will receive a baseline amount of $150,000 per door; Visalia City Council Printed on 4/14/2023Page 4 of 9
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· Two-bedroom units will receive a baseline amount of $175,000 per door; and · Three-bedroom or larger units will receive a baseline amount of $200,000 per door.

OR
Sub-Populations Served - Baseline Capital Amounts:
· Assisted Units reserved for those experiencing Chronic Homelessness will receive a baseline amount of $200,000 per door.
· Assisted Units for Homeless Youth or Youth at Risk of Homelessness will receive a baseline amount of $175,00 per door.

Additional Homekey Contribution Amount - Local Match
Beyond the applicable baseline amount, the eligible applicant may leverage a 1:1 local match to provide up to $100,000 in additional funds per door. For example, where the applicant shows $100,000 in matching funds, HCD will fund no more than $250,000 for a 1-bedroom assisted unit, $275,000 for a 2-bedroom assisted unit, $300,000 for an assisted unit serving chronic homelessness, and $275,000 per door for an assisted unit serving homeless youth/youth at risk of homelessness.

Table 2- Majestic Project Potential Homekey Capital Funding, below illustrates the maximum potential Homekey capital funding for the Majestic project.

Table 2 - Majestic Potential Homekey Capital Funding
Activity Per Door # of
Doors
Total
Homekey, Manager Unit $ 150,000 1 $ 150,000 Homekey, Chronic Homeless $ 200,000 41 8,200,000 Total Homekey w/o Local Match $
8,350,000
Homekey Match Contribution
3,951,691
Total Potential Homekey Capital Funding $
12,301,691
Homekey Operating Awards and Match
Homekey also provides up to 3-years of operating funding referred to as Capitalized Operating Subsidy Reserve (COSR). COSR refers to funding that is set aside at the beginning of a project to cover potential or projected operating deficits over time. The purpose of a COSR is to ensure that adequate funds are on hand should operating costs such as utilities, management staff salaries, and maintenance exceed the amount available from a project’s income at any time in the project’s operation. Homekey operating funds may pay for a Project’s necessary, recurring operating expenses. Qualifying expenses include utilities, maintenance, management fees, taxes, licenses, and tenant rents and supportive services costs.

Where an operating award is requested, the total amount of the operating award per Assisted Unit is Visalia City Council Printed on 4/14/2023Page 5 of 9
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limited as follows:
· Assisted units reserved for those experiencing chronic homelessness, for homeless youth, or for youth at risk of homelessness shall not exceed $1,400 per month. · All other assisted units shall not exceed $1,000 per month, The total duration of the operating award is tied to the amount of the Applicant’s matching funds, and is limited as follows:
· For projects that demonstrate a commitment of three years of non-Homekey operating funds for assisted units, HCD will provide an operating award size for two years. · For projects that demonstrate a commitment of four or more years of non-Homekey operating funds for assisted units, HCD will provide an operating award size for three years.

The Homekey-funded portion of the operating award must be expended by June 30, 2026, with the Grantee establishing a Capitalized Operating Subsidy Reserve (COSR). No extensions will be granted on the Grantee’s expenditure deadline for the operating award. Projects are required to demonstrate a minimum five-year commitment to provide operating funds for the proposed Project.

The first two years of operating funds may include an award from Homekey. Operating match may be obtained from any source, including federal, state, local, private, or philanthropic source(s). Table 3 - Majestic Potential Homekey COSR Funding illustrates the maximum potential Homekey operating funding.

Table 3 - Majestic Potential Homekey COSR Funding
Activity Per Door # of
Doors
Months Total
Homekey, Chronic Homeless $ 1,400 41 36 $ 2,066,400 Total Potential Homekey COSR Funding $
2,066,400
The Majestic maximum potential Homekey capital funding is $12,301,691 and the maximum potential Homekey operating funding is $2,066,400 for a total of $14,368,091 in Homekey funding plus $3,951,691 in local match contribution that will bring the total permanent sources to $18,319,782, as shown below in Table 4 - Majestic Potential Homekey Funding. However, per HCD’s guidance the City will be rounding up to request $15 million in the event the Homekey award is greater the City’s projection. If the amount listed is not sufficient, it could compromise an award because HCD cannot award more than the Applicant is authorized to apply for or receive.

Table 4 - Majestic Potential Homekey Funding
Potential Homekey Capital Funding $ 12,301,691 Potential Homekey COSR Funding 2,066,400 Total Homekey Potential Funding $ 14,368,091 Local Match Contribution 3,951,691 Total Permanent Sources $ 18,319,782
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Majestic Operating Funds: The Majestic Project has been awarded $290,440 in annual HUD funded Continuum of Care (CoC) Permanent Supportive Housing (PSH) vouchers for 20 units. The grant will continue annually and in perpetuity as long as HUD CoC awards continue. HUD CoC are not expected to terminate and have steadily increasing each year. RHCB will continue to renew their annual grant to have ongoing rental operating subsidy through HUD funded CoC PSH vouchers. The Majestic Project will obtain additional vouchers for the remaining 21 units from Coordinated Entry Services (CES) from the CoC and Housing Choice Vouchers (HCV) from the Housing Authority of Tulare County (HATC). The Majestic Project will also have approximately $921,433 in available Homekey funds to assist in covering operating funds. The Majestic projected permanent sources are $18,319,782 and the total development costs are $17,319,782; therefore, there will be $921,433 in remaining Homekey funds that may be used to provide additional operating funds, as shown below in Table 5 - Majestic Homekey Operating Funds.

Table 5 - Majestic Homekey Operating Funds
Total Permanent Sources $ 18,319,782
Total Development Costs 17,398,349
Homekey Operating Funds $ 921,433
The Majestic’s 5-year operating budget consists of $290,440 per year for a total of $1,452,200 in permanent supportive housing vouchers, and $921,433 in projected Homekey operating funds for a total of $2,373,633 in projected 5-year operating resources. Majestic’s 5-year operating rental expenditures are projected at $682 per unit according to HOME low-rent established by HUD, multiplied by 41 tenant units for 5-years or 60-months for a total of $1,677,720. As a result, there will be an operating balance of $695,913, as shown below in Table 6 - Majestic 5-Year Operating Funding . The operating balance can be used for on-going maintenance, case management, and/or tenant supportive services.

Table 6 - Majestic 5-Year Operating Funding
Operating Resources
Activity Amount Years Total
CoC PSH Vouchers $ 290,440 5 $
1,452,200
Homekey Operating Funds $ 921,433
Total 5-Year Operating Resources $ 2,373,633
Operating Expenditures
Activity HOME Low-Rent# of Doors Months Total
Studio Unit $ 682 41 60 $ 1,677,720 Total 5-Year Rent Expenditures $ 1,677,720
5-Year Operating Balance $ 695,913
If the Majestic Project does not get awarded Homekey funding or only receives partial Homekey funding, RHCB will apply for HHIP and HHAP Round 4 funding. As a permanent housing project, the Visalia City Council Printed on 4/14/2023Page 7 of 9
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Majestic Project also qualifies for other grant funding, such as, HOME Investment Partnerships Program (HOME), Successor Agency Housing (SAH), Permanent Local Allocation Housing (PLHA), and the Multifamily Housing Program (MHP).

Housing First: Homekey projects must follow core components of Housing First, as set forth at Welfare and Institutions Code section 8255, in its property management and tenant selection practices. Projects shall accept tenants regardless of sobriety, participation in services or treatment, history of incarceration, credit history, or history of eviction in accordance with practices permitted pursuant to Housing First practices, including local Coordinated Entry System (CES) prioritization protocols, or other federal or state Project funding sources.

Tenant Selection: Referrals to Homekey Assisted Units must be made through the local Coordinated Entry System (CES) or another comparable prioritization system based on greatest need shall be used. All referral protocols for Homekey Assisted Units must be developed in collaboration with the local CoC and implemented consistent with the requirements set forth in the Homekey NOFA. CoC collaboration in Project and supportive service design is also strongly encouraged to help target and serve greatest need populations.

Affordability Period: Homekey funding requires all Permanent Housing Projects to be encumbered with a 55-year Affordability Covenant, which restricts the use, operating, occupancy, and affordability of the Project in accordance with all applicable requirements of the Homekey Program. The Homekey affordability period is in alignment with City of Visalia Successor Agency Housing (SAH) funds. The city is already committed to perform annual monitoring of the Majestic Project for a 55-year affordability period as required with Successor Agency Housing (SAH) funds. RH Community Builders will pay an annual monitoring fee for actual monitoring fees, which is approximately $5,000 for the life of the affordability period. Staff has confidence in RH Community Builders long term grant management capability to ensure long-term grant compliance.

Fiscal Impact:

If awarded, the Homekey Round 3 funding will generate approximately $15 million toward the development and operation of the Majestic Project to provide permanent supportive housing. No additional funding is requested from City grant sources, and there is no General Fund money budgeted for this project.

Prior Council Action: Click or tap here to enter text.
· December 20, 2021 - HOME-ARP Public Hearing to review and comment on the development of HOME-ARP Allocation Plan.
· July 18, 2022 - Approval of RFP-21-22-28 to RH Community Builders for $1.8 million in HOME -ARP funds and $900,000 in Successor Agency Housing (SAH) funds for the development of the Majestic Motel to Permanent Affordable Rental Housing.

Other: None.

Alternatives: Do not apply for Homekey Round 3 for the Majestic Project.

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Recommended Motion (and Alternative Motions if expected):

I move to:
· Authorize staff to apply for Homekey Round 3 as a joint application with RHCB Development, LP not to exceed $15 million dollars to assist with the development and operation of the Majestic Project to provide permanent supportive housing for people experiencing homelessness;
· Adopt Resolution 23-__ authorizing a joint application with RHCB Development, LP for Homekey 3.0 (round three) program as required by California Department of Housing and Community Development; and
· Authorize the City Manager or their designee to sign Resolution 23-__.

Environmental Assessment Status: Not applicable.

CEQA Review: Not applicable.

Attachments: Click or tap here to enter text.
· Attachment A - Homekey Rd 3 NOFA
· Attachment B - Resolution No. 23-__
· Attachment C - Majestic RFP-21-22-28 Proposal
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ySTATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM,Governor

DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT

DIVISION OF STATE FINANCIAL ASSISTANCE
2020 W. El Camino Avenue, Suite 670
Sacramento, CA 95833
www.hcd.ca.gov
March 29, 2023
MEMORANDUM FOR: All Potential Applicants
FROM: Jennifer Seeger, Deputy Director
Division of State Financial Assistance
SUBJECT: Homekey Program
Notice of Funding Availability, Round 3
The California Department of Housing and Community Development (HCD/Department) is pleased to announce the availability of approximately $736 million of Homekey Program (Homekey) grant funding through this Round 3 Notice of Funding Availability (NOFA). Building on the success of both Project Roomkey and the first two rounds of Homekey, this significant investment continues a statewide effort to sustain and rapidly expand housing for persons experiencing homelessness or At Risk of Homelessness, and who are, thereby, disproportionately impacted by and at increased risk for medical diseases or conditions due to the COVID-19 pandemic or other communicable diseases.

Of the $736 million in Homekey funding, $435 million is derived from the Coronavirus State Fiscal Recovery Fund (CSFRF) established by the federal American Rescue Plan Act of 2021 (ARPA) (Public Law 117-2) and $301 million is State General Fund. The $301 million in State General Fund money is intended to supplement the acquisition of, and to provide initial operating subsidies for, Homekey sites to promote Project feasibility. This NOFA will be supplemented by a separate Homekey NOFA for approximately $75 million for tribes, targeted for release later in 2023. Projects receiving an award from the state's direct allocation of the federal ARPA must expend the funds within eight months of the date of award, pursuant to NOFA Section 204. The portion of a Project's award associated with State General Fund must be expended by June 30, 2026, pursuant to NOFA Section 204.

Due to the potential for program oversubscription, Eligible Applicants are encouraged to submit their completed application as soon as possible. The Department will be accepting the applications on a continuous, over-the-counter (OTC) basis from the release of the Homekey application on April 24, 2023 through July 28, 2023, or until the available funds are exhausted, whichever occurs first. Applicants must submit a complete application available on the Homekey website.
224

To receive information on the upcoming Homekey NOFA webinar and other updates, please subscribe to the Department’s Homelessness Prevention Programs listserv at https://www.hcd.ca.gov/contact-us/email-signup.

If you have any questions, please submit them to [email protected]. 225
Homekey Program
Notice of Funding Availability, Round 3
Lourdes M. Castro Ramírez, Secretary
Business, Consumer Services and Housing Agency
Gustavo Velasquez, Director
California Department of Housing and Community Development 2020 West El Camino Avenue, Sacramento, CA 95833
Telephone: (916) 263-2771
Website: https://www.hcd.ca.gov/grants-and-funding/homekey Homekey Program Email: [email protected]
March 29, 2023
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4 Table of Contents

Article I – Program Overview ........................................................................................... 1 Section 100. Notice of Funding Availability (NOFA) ..................................................... 1 Section 101. Authorizing Legislation and Applicable Law ............................................. 1 Section 102. Program Timeline .................................................................................... 2 Article II – Program Requirements .................................................................................. 3 Section 200. Eligible Applicants ................................................................................... 3 Section 201. Eligible Uses ............................................................................................ 4 Section 202. Eligible Projects ....................................................................................... 5 Section 203. Geographic Distribution and Allocations .................................................. 5 Section 204. Program Deadlines .................................................................................. 9 Section 205. Maximum Grant Amounts and Capital Funding Match ............................. 9 Section 206. Operating Awards and Match ................................................................ 11 Section 207. Funding Limits ....................................................................................... 12 Section 208. Affordability Covenant ............................................................................ 13 Article III – Threshold and Scoring Criteria .................................................................... 14 Section 300. Threshold Requirements ........................................................................ 14 Section 301. Interim Housing Requirements ............................................................... 24 Section 302. Single-Family Scattered Site Housing Requirements ............................ 26 Section 303. Other Requirements .............................................................................. 26 Section 304. Application Scoring Criteria .................................................................... 27 Article IV. Application Submission, Review, and Award Process .................................. 34 Section 400. Application Process and Submission ..................................................... 34 Section 401. Pre-Application Consultation and Technical Assistance ......................... 36 Section 402. Award Process ...................................................................................... 36 Section 403. Appeals .................................................................................................. 36 Article V – Other Program Requirements ....................................................................... 37 Section 500. Article XXXIV ......................................................................................... 37 Section 501. Housing First ......................................................................................... 38 Section 502. Tenant and Participant Selection ............................................................ 38 Section 503. Participation in Statewide HDIS/HMIS .................................................. 38 Section 504. Relocation .............................................................................................. 38 Section 505. Accessibility and Non-Discrimination ..................................................... 39 227
5 Section 506. Prevailing Wages ................................................................................... 39 Section 507. Environmental Clearances ..................................................................... 40 Section 508. Land Use ............................................................................................... 41 Section 509. State Requirements .............................................................................. 41 Section 510. Grantee Liability .................................................................................... 41 Article VI – Program Operations .................................................................................... 41 Section 600. Program Oversight ................................................................................. 41 Section 601. Reporting ............................................................................................... 42 Section 602. Disbursement of Grant Funds ................................................................ 43 Section 603. Legal Documents ................................................................................... 43 Section 604. Sales, Transfers, and Encumbrances .................................................... 44 Section 605. Defaults and Grant Cancellations .......................................................... 44 Article VII – Definitions .................................................................................................. 45 Article VIII – Insurance Requirements ........................................................................... 52 Section 800. Insurance Requirements ........................................................................ 52 APPENDIX A: Capital Contributions to Projects* .......................................................... 55

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California Department of Housing and Community Development 2023 Homekey NOFA 1
Article I – Program Overview

Section 100. Notice of Funding Availability (NOFA)

The California Department of Housing and Community Development (Department) is pleased to announce the availability of approximately $736 million in Homekey funding to sustain and rapidly expand the inventory of housing for people experiencing homelessness or At Risk of Homelessness and who are, thereby, inherently impacted by or at increased risk for medical diseases or conditions due to the COVID-19 pandemic or other communicable diseases. Before the COVID-19 pandemic, homelessness data showed Black, Indigenous, and People of Color (BIPOC) were overrepresented in the homelessness system. The pandemic made racial disparities more apparent, and communities are dealing with the additional disproportionate impact of illness and death among people experiencing homelessness. Homekey recognizes these impacts and encourages Eligible Applicants to examine disproportionate impacts in their own communities and to develop strategies to address these impacts.

Homekey is an opportunity for state, regional, and Local Public Entities to develop a broad range of housing types, including but not limited to hotels, motels, hostels, single- family homes and multifamily apartments, adult residential facilities, manufactured housing, and to convert commercial properties and other existing buildings to Permanent or Interim Housing for the Target Population.

Of the $736 million in Homekey grant funds, $435 million is derived from the state's direct allocation of the federal Coronavirus State Fiscal Recovery Fund (CSFRF), which was established by the American Rescue Plan Act of 2021 (ARPA) (Pub.L. No. 117-2).

In addition, $301 million is derived from the state's General Fund to supplement the acquisition of, and to provide initial operating subsidies for, Homekey sites.

Section 101. Authorizing Legislation and Applicable Law

Assembly Bill No.140 (2021-2022 Reg. Sess.) provided the statutory basis for Round 3 of the Homekey Program by adding section 50675.1.3 to the Health and Safety Code (HSC), and it exempted certain Round 3 Homekey Projects from the California Environmental Quality Act (CEQA) by adding section 50675.1.4 to the HSC. The statutory scheme includes new construction of dwelling units as an eligible use and establishes an allocation of funds for Projects serving Homeless Youth and Youth at Risk of Homelessness.

HSC section 50675.1.3, subdivision (e) states, “The Department of Housing and Community Development may adopt guidelines for the expenditure of the funds appropriated to the Department, and for the administration of this program. The guidelines shall not be subject to the requirements of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.”

This NOFA serves as the Department’s guidelines for the expenditure of Homekey funds and the administration of the Homekey Program. As such, this NOFA establishes the terms, conditions, forms, procedures, and other mechanisms that the Department deems necessary to exercise its powers and to perform its duties pursuant to the Homekey Program. The matters set forth herein are regulatory mandates and are 229
California Department of Housing and Community Development 2023 Homekey NOFA 2
adopted as regulations that have the dignity of statutes. (Ramirez v. Yosemite Water Company, Inc. (1999) 20 Cal. 4th 785, 799 [85 Cal.Rptr.2d 844].)

The Multifamily Housing Program (MHP) (Chapter 6.7 (commencing with Section 50675) of Part 2 of Division 31 of the HSC), and as subsequently amended, is hereby incorporated by reference. In accordance with HSC section 50675.1.3, subdivision (d), in the event of a conflict between this NOFA and the MHP, the provisions of this NOFA are controlling.

The MHP Final Guidelines (MHP Guidelines), effective March 30, 2022, and as subsequently amended, are hereby incorporated by reference. In the event of a conflict between any of this NOFA and the MHP Guidelines, the provisions of this NOFA are controlling.

The Uniform Multifamily Regulations (UMR) (Cal. Code Regs., tit. 25, § 8300 et seq.), effective November 15, 2017, and as subsequently amended, are hereby incorporated by reference, except to the extent that any UMR provision would be inconsistent with the provisions of this NOFA.

The Department will only amend this NOFA as necessary and in accordance with the Department's guideline authority pursuant to HSC section 50675.1.3, subdivision (e).

All other criteria and matters set forth within the NOFA shall also govern Tribal Entity applications submitted under this NOFA, unless and except to the extent expressly provided to the contrary by terms set forth within this NOFA and subject to any potential modification or waiver under or pursuant to Assembly Bill No. 1010 (Stats.2019, c. 660), which is set forth in HSC section 50406, subdivision (p).

Section 102. Program Timeline

Homekey funds will be available to Eligible Applicants on a continuous, OTC basis, rather than on a competitive basis. The following table summarizes the anticipated Homekey Program timeline.

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California Department of Housing and Community Development 2023 Homekey NOFA 3
Table 1: Anticipated Timeline for Homekey Applications
NOFA release March 29, 2023
Application release April 24, 2023
Stakeholder webinar mid-April, 2023
Final application due date
July 28, 2023, or until funds
are exhausted, whichever
occurs first
Award announcements
Continuous, with individual awards
generally announced within 60 to 90
days of the Department’s receipt of a
complete and accurate application
and all required supplemental
documentation
Standard Agreements issued
Continuous, after award
announcement and the
Department’s receipt of required
information and documentation
needed to execute the Standard
Agreement
Disbursement of funds
Continuous after Standard
Agreement execution, satisfaction of
all conditions precedent to
disbursement, and completion of a
request for funds form.

Grantee Expenditure and
Program Report due, annually
for five years subsequent to
contract execution
Annually by January 31
The Department reserves the right to modify the projected timeline at any time.

Article II – Program Requirements
Section 200. Eligible Applicants
i. Cities, counties, cities and counties, and all other state, regional, and Local Public Entities, including councils of government, metropolitan planning organizations, and regional transportation planning agencies designated in Section 29532.1 of the Government Code; or
ii. Tribal Entities.

Tribal Entities are encouraged to apply for Homekey via a forthcoming Homekey Tribal Entity NOFA of approximately $75 million, to be released under separate cover later in 2023, that will be developed exclusively for and in consultation with tribes.

Each of the foregoing entities may apply independently, or each entity may apply jointly 231
California Department of Housing and Community Development 2023 Homekey NOFA 4
with a nonprofit or for-profit corporation, a limited liability company (LLC), and/or a limited partnership (LP) as a Co-Applicant.

A special purpose entity may only have an ownership interest in a Homekey Project if it applied for that Project’s Homekey funding as a Co-Applicant. Section 8313.2 of the UMRs is applicable to special purpose entities that participate in the Homekey program.

The requirements set forth in this NOFA are subject to AB 1010 (Stats.2019, c. 660), which is set forth in HSC section 50406, subdivision (p). Accordingly, and pursuant to HSC section 50406, subdivision (p), (a) where the provisions of tribal law, tribal governance, tribal charter, or difference in Tribal Entity or legal structure would cause a violation or not satisfy the requirements of this NOFA, said requirements may be modified as necessary to ensure program compatibility; and (b) where provisions of tribal law, tribal governance, tribal charter, or difference in Tribal Entity legal structure or agency create minor inconsistencies (as determined by the Director of the Department or a duly authorized designee thereof) with the requirements set forth in this NOFA, the Department may waive said requirements, as deemed necessary, to avoid an unnecessary administrative burden. Matters set forth or otherwise provided for in this NOFA that may be modified or waived include, without limitation, threshold scoring requirements and any other matters set forth in HSC section 50406, subdivision (p)(2). tribal Applicants are accordingly encouraged to discuss any such potential modifications or waivers and their options in that regard at the pre-application consultation.

Section 201. Eligible Uses

Awarded funds must be used to provide housing for the Target Population of individuals and families experiencing Homelessness or who are At Risk of Homelessness and who are inherently impacted by or at increased risk for medical diseases or conditions due to the COVID-19 pandemic or other communicable diseases. For Grantees utilizing HOME-ARP funds as match, the Target Population also includes individuals and families who are “Fleeing, or Attempting to Flee, Domestic Violence, Dating Violence, Sexual Assault, Stalking, or Human Trafficking” and “Other Populations” as defined in HUD Community Planning and Development (CPD) Notice 21-10. With respect to the list of eligible uses below, an Eligible Applicant may choose to target Project Roomkey properties, or other, non-Project Roomkey properties. The list of eligible uses is as follows:

i. Acquisition or Rehabilitation, or acquisition and Rehabilitation, of motels, hotels, hostels, or other sites and assets, including apartments or homes, adult residential facilities, residential care facilities for the elderly, manufactured housing, commercial properties, and other buildings with existing uses that could be converted to Permanent Housing or Interim Housing, subject to any limitations set forth in this NOFA, including those provided in Section 301.

ii. Master leasing of properties for non-congregate housing.

iii. Conversion of units from nonresidential to residential.

iv. New construction of dwelling units.

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v. The purchase of affordability covenants and restrictions for units.

vi. Relocation costs for individuals who are being displaced as a result of the Homekey Project.

vii. Capitalized operating subsidies for units purchased, converted, constructed, or altered with funds provided pursuant to HSC section 50675.1.3.

Section 202. Eligible Projects

The Department welcomes and will consider a variety of innovative housing solutions as eligible Projects. The following list of eligible Projects is not exhaustive.

i. Conversion of nonresidential structures to residential dwelling units.

ii. Conversion of commercially zoned structures, such as office or retail spaces, to residential dwelling units.

iii. Adult residential facilities, residential care facilities for the elderly, manufactured housing, and other buildings with existing residential uses.

iv. Multifamily rental housing Projects.

v. Excess state-owned properties.

vi. Scattered site housing on multiple contiguous or non-contiguous sites is permitted as long as the resulting housing has common ownership, financing, and property management.

vii. Shared housing in a structure shared by two or more households, where each household is in a separate private bedroom that can be locked.

viii. Existing Homekey Assisted Units, previously awarded under Rounds 1 and 2 of Homekey funding, are ineligible for funding under this NOFA.

ix. The Homekey program is intended to support the development of housing units and will not fund congregate shelter. Other funding sources should be considered for congregate shelter types of Interim Housing.

Section 203. Geographic Distribution and Allocations

COVID-19 disproportionately impacts people who are experiencing or who are At Risk of Homelessness throughout California. As such, the Department would like to ensure jurisdictions throughout the state have an equitable opportunity to apply for Homekey funds to protect the health and safety of their most vulnerable residents.

To this end, the Department has divided the state into eight regions, as outlined in Table 2, below. The regions are largely aligned with the various Councils of Government 233
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(COGs). As detailed in Table 3 below, each region has funding reserved. Each region's share of the Homekey allocation is calculated based on its proportionate share of persons experiencing homelessness as indicated by the sheltered and unsheltered 2021 Homeless Point-in-Time Counts (PIT), plus its proportionate share of Extremely Low Income (ELI) renter households that are paying more than 50 percent of their income for rent.

The Department will deploy unused funds from any undersubscribed region(s) to fund applications in the manner described in the Discretionary Reserve. The Department will also redeploy undersubscribed and unused funds, as specified at Section 400 of this NOFA.

Table 2: Homekey Geographic Distribution

Counties by Region
Los Angeles County San Joaquin
Valley Central Coast Balance of
State (Cont.)
Bay Area Fresno Monterey Lassen
Alameda Kern San Benito Mariposa
Contra Costa Kings San Luis
Obispo Mendocino
Marin Madera Santa Barbara Modoc
Napa Merced Santa Cruz Mono
San Francisco San Joaquin Balance of
State Nevada
San Mateo Stanislaus Alpine Plumas
Santa Clara Tulare Amador Shasta
Solano San Diego
County Butte Sierra
Sonoma Sacramento
Area Calaveras Siskiyou
Southern California El Dorado Colusa Tehama
Imperial Placer Del Norte Trinity
Orange Sacramento Glenn Tuolumne
Riverside Sutter Humboldt
San Bernardino Yolo Inyo
Ventura Yuba Lake
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Table 3: Estimated Homekey Geographic Allocations

Region Severely
Rent-
Burdened
ELI
2022 PIT
Count
Round 3
Allocation
Los Angeles
County
415,350 69,144 $211,813,531
Bay Area 199,165 38,118 $111,112,027
Southern CA 203,610 15,672 $68,783,638
San Joaquin
Valley
105,430 12,085 $43,252,159
Central Coast 37,165 8,113 $22,657,376
Sacramento
Area
70,340 12,379 $37,158,338
San Diego 95,570 8,427 $34,345,268
Balance of
State 32,265 7,583 $20,708,081
Totals 1,158,895 171,521 $549,830,418

Allocations

The $736 million in Homekey funds are allocated as follows:

Table 4: Homekey Funding Allocations

Total Homekey Round 3 NOFA $735,988,501
Total Geographic Allocation $549,830,418
Homeless Youth Allocation - 10% of NOFA $75,759,808
Discretionary Reserve - 10% of NOFA $73,598,850
Rural Target Allocation - 5% of NOFA $36,799,425

Homeless Youth Allocation

Pursuant to HSC section 50675.1.3, subdivision (c), the Department shall allocate not less than eight percent (8%) of the total Homekey funding appropriated for Projects serving Homeless Youth, or Youth at Risk of Homelessness, as defined in 24 Code of Federal Regulations (CFR) part 578.3. This NOFA allocates ten percent (10%) of the funding available in Round 3 to Homeless Youth Projects as set forth in Table 4.

Unless otherwise indicated, all scoring criteria and other NOFA provisions shall govern the allocation awards provided under this NOFA. Homekey Projects are not required to serve only Homeless Youth, or Youth at Risk of Homelessness. Homekey Projects proposing to serve Homeless Youth, or Youth at Risk of Homelessness, may also serve other qualifying members of the Target Population. At the close of the application period, any unused funds from this allocation shall be reallocated to the Discretionary Reserve and shall be subject to the prioritization methods therein.

Projects that meet the threshold requirements of Article III, as well as the following criteria, will be prioritized for Homeless Youth allocation funds:

• Have at least 25 percent (25%) of Assisted Units reserved for Homeless Youth or 235
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Youth at Risk of Homelessness; (See Section 304, 3a for points awarded)

• Have jointly applied and/or partnered with a nonprofit corporation(s), including community-based organization(s), with at least three years of experience serving current or former Foster Youth, Homeless Youth, or Youth at Risk of Homelessness; and (see Section 304, 2a-c for points awarded)

• Provide Supportive Services for Youth Assisted Units using a Positive Youth Development (PYD) model and trauma- informed care. Services may include, but are not limited to, case management, income supports, educational and employment counseling, life skills, legal assistance, health and wellness, and family connection services.

The Department will also award up to two (2) additional points in the application scoring to Projects that meet the following criteria:

• Site is within a one-mile radius of youth-centered amenities, such as community colleges, universities, trade schools, apprenticeship programs, employment programs, childcare centers for parenting youth, and community centers for youth (e.g., LGBTQ+ centers, drop-in youth centers). (See Section 304, 3e (viii) for potential points)

Rural Target Allocation

The Department will allocate five percent (5%) of the available Homekey Round 3 funding for Projects in Rural Area jurisdictions as set forth in HSC Section 50199.21. At the close of the application period, any unused funds from this allocation shall be reallocated to the Discretionary Reserve and shall be subject to the prioritization methods therein.

Discretionary Reserve

The Department will allocate ten percent (10%) of available funds for a Discretionary Reserve to address the following:

• Covering overages from other allocations, where there are funds available, but the funds are insufficient to fully fund the next eligible Project in the region or allocation. The Department may award up to $30 million in aggregate for this purpose at any point during the open application period.

• Funding single family home-scattered site Projects with a limit of four Projects in this Project type, up to $10 million each. The Department may make these awards at any point during the open application period. The $40 million will remain available for this purpose for any application submitted by June 30, 2023.

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• Funding high scoring Projects from oversubscribed regions. These awards will not be made until after the application period closes, to the extent funds are available.

Section 204. Program Deadlines

Homekey capital funds must be expended within eight months of the date of award. “Date of award” means the date on the award letter issued from the Department to the awardee. In order to account for the time between the award letter and fund disbursement, and the fact that Grantee payments to contractors are made in arrears, the Department may extend the eight (8) month expenditure deadline by up to seven (7) months, upon the request of the awardee. The request shall be submitted in electronic format on a form provided by the Department.

Awardees will be subject to the following deadlines:

1. Acquisition, Rehabilitation, and/or construction must be completed 12 months from the date of award letter;

2. Capital expenditure must be completed within eight (8) months, or up to 15 months from the date of award if requesting an expenditure deadline extension; and

3. Full occupancy must be achieved by 15 months from date of award letter.

The Department may, in its sole and absolute discretion, approve an extension of the acquisition, Rehabilitation, construction, and/or occupancy deadlines if the Grantee demonstrates, to the Department’s satisfaction, that the relevant delay is caused by reasonably unforeseeable events, conditions, or circumstances. Construction labor shortages and supply chain issues do not constitute reasonably unforeseeable events, conditions, or circumstances for purposes of an extension request.

Pursuant to 31 CFR part 35.5, the Department may reimburse eligible costs incurred beginning on March 3, 2021. Applicants are encouraged to discuss their options at the pre-application consultation.

All operating funds must be fully disbursed by the Department by June 30, 2025, and fully expended by the Grantee by no later than June 30, 2026.

Section 205. Maximum Grant Amounts and Capital Funding Match

Homekey will fund a maximum grant amount per door, pursuant to the conditions of this section, which includes both the acquisition cost and any needed Rehabilitation or new construction. The award will be the lower of the following: (1) the maximum grant amount; or (2) the sum of the acquisition amount and any additional construction or Rehabilitation expenses, as supported by an appraisal and such other reasonable documentation required by the Department. "Door" refers to units at the time of the acquisition, which may differ from the number of units that are available after a conversion 237
California Department of Housing and Community Development 2023 Homekey NOFA 10
of the property. For those Projects that undergo a conversion, the number of units may need to be reduced in order to accommodate kitchenettes, additional bedrooms, space for Supportive Services and other amenities. For new construction and conversion of office, commercial, or other non- residential structures into residential dwelling units, Homekey will fund a maximum grant amount per completed Assisted Unit serving the Target Population, or an amount as supported by an appraisal, whichever is lower. “Assisted Unit” refers to units that are available after the construction or conversion of the property.

The Department will contribute a baseline amount per door, as outlined below, in whichever category is higher for the Assisted Unit. This baseline contribution does not require a local match.

Unit Size -- Baseline Capital Amounts:

i. Studio or one-bedroom units will receive a baseline amount of $150,000 per door;

ii. Two-bedroom units will receive a baseline amount of $175,000 per door; and

iii. Three-bedroom or larger units will receive a baseline amount of $200,000 per door.

Note that Homekey will fund “doors” based upon the number of units and unit size at the time of acquisition. In situations where units are combined to make larger units, awards will default to the number of doors and size of units at acquisition. In situations where multi- bedroom (two or more bedrooms) units at acquisition are divided into smaller unit sizes, awards will default to the number of doors and size of units with the lower baseline amount per door.

Sub-Populations Served -- Baseline Capital Amounts:

i. Assisted Units reserved for those experiencing Chronic Homelessness will receive a baseline amount of $200,000 per door.

ii. Assisted Units reserved for Homeless Youth or Youth at Risk of Homelessness will receive a baseline amount of $175,000 per door.

Additional Contribution Amount – Local Match

Beyond the applicable baseline amount, the Eligible Applicant may leverage a 1:1 local match to provide up to $100,000 in additional funds per door. For example, where the Applicant shows $100,000 in matching funds, the Department will fund no more than $250,000 for a 1-bedroom Assisted Unit, $275,000 for a 2-bedroom Assisted Unit, $300,000 for a 3+ bedroom Assisted Unit, $300,000 for an Assisted Unit serving those experiencing Chronic Homelessness, and $275,000 per door for an Assisted Unit serving Homeless Youth/Youth at Risk of Homelessness.

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Appendix A shows how maximum funding awards from Homekey vary with different per- door costs, unit types, and Applicant contribution levels.

For relocation costs, the Department will pay for one-half of the relocation cost per door in addition to the capital award. For example, if a Project includes $15,000 in relocation costs, then the Department will pay for $7,500 of that relocation cost.

For the purchase of affordability covenants and restrictions, and for master-leasing, the Department may size the award per door based on a recent market study within the past year which conforms to guidelines adopted by the Tax Credit Allocation Committee (TCAC), and/or a rent roll, and/or other supporting documentation. For these uses, the maximum Homekey contribution per door shall not exceed the maximum amounts referenced in this section for acquisition, Rehabilitation, and new construction.

Section 206. Operating Awards and Match

i. Where an operating award is requested, the total amount of operating award per Assisted Unit is limited as follows:

a. Assisted Units reserved for those experiencing Chronic Homelessness, for Homeless Youth, or for Youth at Risk of Homelessness shall not exceed $1,400 per month; and

b. All other Assisted Units shall not exceed $1,000 per month.

ii. The total duration of the operating award (as described in i. above) is tied to the amount of the Applicant’s matching funds, and is limited as follows:

a. If Projects can demonstrate a commitment of three years of non- Homekey operating funds for Assisted Units, the Department will provide an operating award sized for two years.

b. If Projects can demonstrate a commitment of four or more years of non-Homekey operating funds for Assisted Units, the
Department will provide an operating award sized for three years.

iii. Operating awards are determined based on need, exclusive of any debt service. The amounts and durations referenced in (i) and (ii) above represent maximums.

iv. Operating awards may pay for a Project’s necessary, recurring Operating Expenses in an amount approved by the Department.

Qualifying expenses include utilities, maintenance, management fees, taxes, licenses, and Supportive Services costs, but not debt service or required reserve account deposits. Operating Expenses should be included in the Project’s submitted budget.

v. If requesting an operating award for a Permanent Housing Project, the Eligible Applicant must submit a letter of support from the applicable housing authority confirming the need for an operating award and 239
California Department of Housing and Community Development 2023 Homekey NOFA 12
evidencing why other subsidies, such as Project-based vouchers (PBVs), are not available. A letter template and a list of potential Homekey complementary funding can be found on the Homekey webpage.

vi. The Homekey-funded portion of the operating award must be disbursed by the Department by June 30, 2025 and expended by the Grantee by June 30, 2026, with the Grantee establishing a capitalized operating subsidy reserve and disbursing the funds as outlined in this NOFA. No extensions will be granted on the Grantee’s expenditure deadline for the operating award.

vii. Eligible Applicants are required to demonstrate a minimum five-year commitment to provide operating funds for the proposed Project. The first two years of operating funds may include an award from Homekey.

Operating match may be obtained from any source, including any federal, state, local, private, or philanthropic source. Applicants are encouraged to consider Project-based vouchers; Veterans Affairs Supportive Housing (HUD-VASH) Vouchers; Faircloth to Rental Assistance Demonstration (RAD) conversions; Homeless Housing Assistance and Prevention Program (HHAP) funding; Permanent Local Housing Allocation (PLHA) funding; and HOME-ARP funding. The preceding list of potential match sources is not exhaustive. Eligible Applicants will have an opportunity to discuss the match requirements and potential match sources during the pre-application consultation.

Additionally, the following requirements apply to operating match contributions:

viii. The Eligible Applicant must ensure the laws governing any funds to be used as matching contributions do not prohibit those funds from being used to match Homekey funds; and

ix. If the State General Funds are used to satisfy the matching requirements of another program, then funding from that program may not be used to fulfill the matching requirements of the Homekey program.

Section 207. Funding Limits

1. In addition to the capital funding limits and match requirements described in Section 205, and the Homekey operating award funding limits and match requirements described in Section 206, Round 3 will implement additional funding limits as follows:

a. Per Project Funding Limit: No more than $35 million in total Department sources may be used per Project. This per Project cap applies to Homekey Round 3 capital and operating funds, and to all Department sources of permanent loans for onsite development costs and operating costs. Grants from other Department programs are excluded from this per Project cap.

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i. At the sole discretion of the Director of the Department or the Director’s designee, per Project Funding Limit requests in excess of $35 million may be approved as an exemption to the Project funding limits, if the Projects uniquely advance state policy priorities, are high scoring, are located in high or highest resource areas as identified in the 2023 Opportunity Maps – Adopted January 2023, and/or are located in high-cost regions. Applicants asserting the Project is in a high-cost area shall provide data from HUD, the United States Census Bureau, or another authoritative source to validate the assertion. All exemption requests shall not exceed ten percent (10%) above the per Project Funding Limit.

To request an exemption, Applicants must submit justification at the time of application. The justification will be reviewed with the application package in accordance with Section 400. A form to request an exemption is available on the Homekey website.

If this exemption is approved, Applicants must submit
documentation of Department approval with any subsequent applications for other Department funding, when requested.

b. For single family home scattered-site Projects, the per Project funding limit is $10 million total. The Department will fund up to four (4) Projects in this Project type in the manner described in Section 302.

2. The Department’s Repeal of Stacking Prohibition of Multiple Department Funding Sources memo (Administrative Notice Number: 21-06), dated August 20, 2021, is hereby incorporated by this reference as if set forth in full herein, and it shall be applicable. Applicants must ensure that all Department funding sources in the Project are represented pursuant to the memo. Homekey awards shall not be layered with other Department funding sources in a manner that causes either the per unit or total Project funding to exceed the total development cost.

Section 208. Affordability Covenant

The Grantee shall duly encumber all Interim Housing Projects with a 30-year Affordability Covenant that (a) is recorded in first position against the Project real property for the benefit of the Department, (b) restricts the use, operation, occupancy, and affordability of the Project in accordance with all applicable requirements of this NOFA and all other Homekey Program Requirements, (c) incorporates the Homekey Program Requirements by reference, and (d) is otherwise in form and substance acceptable to the Department.

The Grantee shall duly encumber all Permanent Housing Projects with a 55-year Affordability Covenant that (a) is recorded in first position against the Project real property for the benefit of the state, regional, local, or tribal Grantee, (b) restricts the use, operation, occupancy, and affordability of the Project in accordance with all applicable requirements of this NOFA and all other Homekey Program 241
California Department of Housing and Community Development 2023 Homekey NOFA 14
Requirements, (c) duly names the Department as a third party beneficiary with the right and privilege, but not the obligation, of enforcement thereof, (d) incorporates the Homekey Program Requirements by reference, and (e) is otherwise in form and substance acceptable to the Department. Permanent Housing Projects located on tribal trust land shall be duly encumbered with Affordability Covenants containing all of the terms listed above excepting that they shall have an initial term of 50 years to match the period of affordability restrictions under the Low- Income Housing Tax Credit (LIHTC) program, commencing with the date of recordation of the Department’s Affordability Covenant.

Upon its execution, the Affordability Covenant shall be binding, effective, and enforceable against all successors, transferees, and assignees, and it shall continue in full force and effect for a period of not less than 55 years for Permanent Housing Projects (or 30 years for Interim Housing Projects) after a certificate of occupancy or its equivalent has been issued for the Project, or if no such certificate is issued, from the date of initial occupancy of the Project.

Article III – Threshold and Scoring Criteria

Section 300. Threshold Requirements

To be eligible to receive funding, all applications must meet the following requirements:

i. Applications may be submitted independently by an Eligible Applicant, as defined in Section 200 and Article VII. Alternatively, each of the foregoing Eligible Applicants may apply jointly with a Co-Applicant, as specified. No additions of Co-Applicants or special purpose entities will be considered subsequent to the date of application.

ii. Projects must serve persons qualifying as members of the Target Population.

iii. Applications must include a Project-specific Supportive Services plan, that shall be consistent with any representations made in the application, and it shall meet the program requirements. The Department in its sole discretion shall make the determination (1) if the Supportive Services plan is sufficiently complete to pass threshold and (2) if the Supportive Services plan and property management plan is compliant with Housing First and other evidence-based practices. Applications must include:

a. A description of the services to be offered, how frequently each service will be offered or provided depending on the nature of the service, who is anticipated to be providing the services, and the location, whether on or off-site, and general hours of availability of the services. Applicants must ensure that the Supportive Services are made available to Homekey tenants and participants in a manner that is voluntary, flexible and individualized, so Homekey tenants and participants may continue to engage with Supportive Services providers, even as the 242
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intensity of services needed may change. Furthermore, access to or continued occupancy in housing cannot be conditioned on participation in services or on sobriety. Adaptability in the level of services should support tenant and participant engagement and housing retention.

i. The following Supportive Services shall be made available to Homekey tenants and participants based on tenant/participant need.

The lead service provider for the Project shall coordinate the provision of or referral to services needed by individual tenants and participants. The following required services can be provided onsite at the Project or offsite at another location easily accessible to tenants and participants:

1. Case management performed by a Case Manager, as defined in Article VIII. Definition below;

2. Peer support activities, including 24/7 telephone, online, or in- person support;

3. Mental health care, such as assessment, crisis counseling, individual and group therapy, and peer support groups;

4. Substance use services, such as treatment, relapse prevention, and peer support groups;

5. Support in linking to physical health care, including access to routine and preventive health and dental care, medication management, and wellness services;

6. Benefits counseling and advocacy, including assistance in accessing SSI/SSP, enrolling in Medi-Cal; and

7. Basic housing retention skills (such as unit maintenance and upkeep, cooking, laundry, and money management).

ii. The following Supportive Services are not required to be made available but are encouraged to be part of the Applicant’s Supportive Services plan.

1. Supportive Services for persons with co-occurring mental and physical disabilities or co-occurring mental and substance use disorders not listed above;

2. Recreational and social activities, including peer-led groups and events;

3. Educational services, including assessment, GED, school enrollment, assistance accessing higher education benefits and grants, and assistance in obtaining reasonable
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accommodations in the education process;

4. Employment services, such as supported employment, job readiness, job skills training, job placement, and retention services, or programs promoting volunteer opportunities for those unable to work, and

5. Obtaining access to other needed services, such as civil legal services, or access to food and clothing.

b. Description of the Target Population to be served, and identification of any additional subpopulation target or occupancy preference for the Homekey Project that the Applicant wishes to undertake beyond what is permitted under the Target Population requirements;

c. A tenant and participant engagement plan (i.e., plan to encourage voluntary tenant and participant participation in services as well as in community building, such as resident councils or similar forums) including a description of tenant/participant outreach, engagement and retention strategies to be used;

d. For services provided off-site, the plan must describe what public or private transportation options will be available to tenants and participants in order to provide them reasonable access to these services. Reasonable access is access that does not require walking more than one-half mile;

e. Description of how the Supportive Services will be culturally and linguistically competent for persons of different races, ethnicities, sexual orientations, gender identities, and gender expressions. This includes explaining how services will be provided to Homekey tenants and participants who do not speak English, or have other communication barriers, including sensory disabilities, and how communication among the services providers, the property manager and these tenants and participants will be facilitated;

f. A staffing plan with staffing levels sufficient to meet the needs of the Target Population. Where one or more of the Restricted Units are limited under Department Regulatory Agreements to occupancy by Chronically Homeless, services must be provided with a household to staffing ratio not exceeding 20 to 1. Where one or more of the Restricted Units are limited under Department Regulatory Agreements to occupancy by Homeless Youth, or Youth at Risk of Homelessness, services must be provided with a household to staffing ratio not exceeding 15 to 1. Where one or more of the Restricted Units are limited under Department Regulatory Agreements to occupancy by Homeless persons with disabilities, services must be provided with a household to staffing ratio not exceeding 25 to 1. Where one or more of the Restricted Units are limited under Department Regulatory 244
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Agreements to occupancy by other special needs populations, services must be provided with a household to staffing ratio not exceeding 40 to 1.

g. Estimated itemized budget, and sources of funding for services;

h. Identification of outcome measures to be tracked, description of the data to be collected for each measure, and explanation of the methods for data collection and entry. Sample forms may be requested by the Department; and

i. Other information needed by the Department to evaluate the Supportive Services to be offered consistent with the Program.

j. If a service provider has been selected, Commitment letter(s) or MOU(s) documenting how the complete development and
management team (which may include the Applicant, developer, property manager, lead service provider, etc.) are connected and will work together on the Project. (See Section 304, 2.c. for potential points)

k. Property management and tenant and participant selection policies submitted with the Homekey application will be evaluated for the following consistent with state Housing First requirements. These documents must identify, describe, and utilize Housing First and low-barrier tenant/participant selection processes that prioritizes those with the highest needs for available housing. The descriptions of the use of Housing First and tenant/participant selection in this Supportive Services plan must be consistent with the property management and
tenant/participant selection policies. Applicants should review the recently passed Assembly Bill No. 1991 (Chapter 645, Statutes of 2022) to inform the Project’s property management and tenant/participant selection policies. The property management and tenant/participant selection policies should address the following and be consistent with state Housing First
requirements, as well as other Homekey Program Requirements:

ii. Applicant eligibility and screening standards

iii. Confidentiality

iv. Substance abuse policy

v. Communication between property manager and Supportive Services staff

vi. Eviction policies and eviction prevention procedures

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vii. Process for assisting tenants and participants to apply for different forms of cash and non-cash benefits to aid the household in retaining their housing, if needed

viii. How potential tenants and participants and in place tenants and participants will be assisted in making reasonable
accommodation requests, in coordination with the services provider and persuasive to outside entities, such as Housing Authorities, to ensure that persons with disabilities have access to and can maintain housing

ix. Policies and practices to facilitate voluntary moving on strategies

x. Appeal and Grievance Procedures

iv. Applicants shall provide a written non-discrimination policy that complies with the requirements in Section 505.

v. Applications must include an overview of the plan and timeline for any required entitlements, permits, and environmental clearances. Eligible Applicants will have an opportunity to discuss their land use and environmental clearance plans, and related statutory authorities during the pre-application consultation.

vi. Applications must answer the following question: what specific actions will the Applicant take to ensure equitable access to housing and services for groups that are overrepresented among residents experiencing homelessness in its jurisdiction, including racial, ethnic and LGBTQ+ groups? The response shall reference the latest Continuum of Care (CoC) HMIS demographics data to explain.

vii. Applications must provide a concise and reasonably detailed answer to the following question: how did the Applicant engage or will engage with the Target Population to inform the design of the Project operations and Supportive Services?

viii. The Grantee shall have site control of the property at the time of application, and such control shall not be contingent on the approval of any other party. The status and nature of the Grantee's title and interest in the property shall be subject to the Department's approval. Site control may be evidenced by one of the following:

a. Fee title, evidenced by a current title report (within 90 days of application) showing the Applicant holds fee title, or for tribal trust land, a title status report (TSR) or an attorney’s opinion regarding chain of title and current title status;

b. A leasehold interest on the property with provisions that enable the lessee to make improvements on and encumber the property provided 246
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that the terms and conditions of any proposed lease shall permit compliance with all program requirements;

c. A leasehold estate held by a Tribal Entity in federal tribal trust lands property, or a valid sublease thereof that has been or will be approved by the Bureau of Indian Affairs;

d. An executed disposition and development agreement, or irrevocable offer of dedication to a public agency;

e. A sales contract, or other enforceable agreement for the acquisition of the property;

f. A letter of intent, executed by a sufficiently authorized signatory of the Eligible Applicant, that expressly represents to the Department, without condition or reservation, that, upon successful application, the Eligible Applicant shall purchase or otherwise acquire a sufficient legal interest in the property to accomplish the purpose of the award. The letter of intent must also be acknowledged by the party selling or otherwise conveying an interest in the subject property to the Eligible Applicant. If this form of evidence is relied upon at the time of application, the Department may impose additional milestones, in the Standard Agreement, regarding increased evidence of eventual site control closer to the likely close of escrow; or

g. Other forms of site control that give the Department assurance (equivalent to items a. through f. above) that the Applicant will be able to complete the Project in a timely manner and in accordance with all the Program's objectives and requirements.

h. For Applicants proposing sites that will require a use change for permanent housing, there should be a commitment and plan to facilitate or expedite those processes, so as to not delay expenditure and occupancy requirements.

ix. A preliminary title report for each site, dated within 15 days of the application submittal.

x. The Eligible Applicant or Co-Applicant applying for the Homekey funding is the entity that the Department relies upon for experience and capacity, and will control the Project during acquisition, development, and occupancy.

xi. A detailed development plan that supports acquisition of a site, completion of Rehabilitation or construction, occupancy, and fund expenditure before all program deadlines, factoring in entitlements, permits, procurement, potential construction delays and supply chain issues, and demonstrates evidence of strong organizational and financial capacity to develop the Project.

xii. Assisted Units and other units of the Project must meet all applicable state 247
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and local building standards pertaining to rental housing and manufactured housing, including but not limited to requirements for minimum square footage, and requirements related to maintaining the Project in a safe and sanitary condition.

xiii. Applicants and Co-Applicants must be in good standing with the State of California and all agencies and departments thereof. By way of example and not limitation, an Applicant and Co-Applicant must be qualified to do business in the State of California and must be in good standing with the California Secretary of State and the California Franchise Tax Board.

Applicants that are delinquent in meeting the material requirements of previous Department awards may, in the Department’s reasonable discretion, fail threshold review.

xiv. The Department will require Eligible Applicants to submit a complete application with all required documents. The Department reserves the right to request clarification of unclear or ambiguous statements made in an application and other supporting documents. The following items must be submitted with the application:

a. Completed application workbook with all worksheets and supplemental information completed;

b. Required documents from each Eligible Applicant and Co-Applicant as applicable, including but not limited to:

i. Executed resolutions attested to by a person other that the person identified as the authorized signatory. If there is more than one authorized signatory identified, state whether one or all signatories are required to submit and execute program documents. If the application is being signed by a designee of the authorized signatory, the Applicant must also submit a designee letter or other proof of signing authority;

ii. Payee Data Record or Taxpayer Identification Number (TIN) form;

iii. Evidence of tax-exempt status from the Internal Revenue Service (IRS) or Franchise Tax Board, if applicable;

iv. Signature block uploaded in Microsoft Word format;

v. Organizational chart that depicts the organizational structure of the entities in relation to the Applicants; and

vi. Organizational documents supporting the resolutions submitted with the application. The Department reserves the right to request additional documentation at any point to verify an entity’s authority and/or organizational structure.

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xv. Appraisal for all conversion, acquisition, and new construction uses as defined in Section 201. The appraisal must be in compliance with the Homekey requirements outlined in the Homekey Appraisal Guidance document on the Homekey website: Homekey 3.0 Appraisal Guidance.

xvi. All Projects seeking funding for Rehabilitation must submit the following:

a. Rehabilitation narrative of current condition of structure(s) and overall scope of work; and

b. Physical Needs Assessment (PNA) prepared by a qualified independent third-party contractor;

xvii. For Projects seeking funding for master leasing and purchase of affordability covenants, a market study prepared within the last year which conforms to TCAC guidelines, and/or a rent roll, and/or other supporting documentation noted in Section 205;

xviii. All Projects seeking funding for Rehabilitation and new construction are required to submit a Phase I Environmental Site Assessment (ESA) which was prepared no earlier than 12 months prior to the application due date;

xix. Relocation Assistance Narrative. Applicant shall submit a concise, sufficiently detailed narrative to demonstrate its consideration of, and early engagement with, applicable relocation assistance laws and requirements.

This Relocation Assistance Narrative will be evaluated by the Department to determine whether a relocation plan is required by law or whether a certificate of no-relocation can be issued. The Relocation Assistance Narrative does not take the place of these two documents. Grantee shall submit either a relocation plan or a certificate of no-relocation as a condition of disbursement. See Section 504 for more information.

Applicant’s Relocation Assistance Narrative shall include or identify the following:

a. A diagrammatic sketch of the Project site.

b. Clear, high-resolution photographs of the Project site and all improvements thereon (e.g., buildings, parking lots, billboards).

c. The projected dates of any Homekey-funded acquisition, construction, Rehabilitation, demolition, or similar development activities at the Project site.

d. A description of any persons, businesses, or farm operations that will or may be displaced from the Project site by the foregoing development activities. Applicant shall specify whether any such displacement will be permanent or temporary.

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i. If no such displacement will occur, Applicant shall conclude the narrative by expressly confirming that Applicant’s eligible use(s) of the funds will not result in the displacement of any persons, businesses, or farm operations from the Project site.

ii. If such displacement will occur, Applicant shall further develop the narrative by including the additional elements set forth at (e) – (i) below.

e. A description and evidence of attempts made to maintain the tenure of existing residents that may qualify under the criteria for the Target Population.

f. A description of the aggregate relocation needs of the persons, businesses, or farm operations that will or may be displaced by the Homekey-funded activities.

g. A brief description of how those relocation needs will be met, as well as the Applicant’s projected timeline for fully meeting those needs, including the dates of planned notices to displaced persons, businesses, or farm operations.

h. An identification of the Applicant’s relocation consultant and/or relocation services provider in connection with the Project site.

Applicant shall also submit legible copies of its services contract or letter of intent with or to the relocation consultant and/or relocation services provider.

i. Applicant’s cost estimate (and associated funding strategy) for providing relocation assistance and benefits to the persons, businesses, or farm operations that will or may be displaced by the Homekey-funded activities.

xx. Enforceable Funding Commitments to cover operations and service costs with specific funding sources, including federal, state, local, private, or philanthropic sources, for the proposed Project for the first five (5) years, and a funding plan covering operations and services costs for ten (10) years thereafter, for a total operating budget of fifteen (15) years from the recordation of the Affordability Covenant. (See Section 304 1 (b) for potential points)

xxi. The Eligible Applicant or Co-Applicant shall demonstrate the following minimum experience and capacity requirements:

a. Development, ownership, or operation of a Project similar in scope and size to the proposed Project; or development, ownership, or operation of at least two affordable rental housing Projects in the last 10 years, with at least one of those Projects containing at least one unit housing 250
California Department of Housing and Community Development 2023 Homekey NOFA 23
a tenant or participant who qualifies as a member of the Target Population.

b. The property manager and Supportive Services provider shall have three or more years of experience serving persons of the Target Population. If a property manager or Supportive Services provider is not yet selected for the proposed Project, the Eligible Applicant shall certify that this requirement will be reflected in any future solicitation or memorandum of understanding.

c. Experience administering a Project in accordance with the core components of Housing First (Welfare & Institutions Code § 8255).

d. Current capacity to develop, own, and operate the proposed Project.

For purposes of satisfying this requirement, an Applicant has “capacity” if it has adequate staff, capital, assets, and other resources to efficiently meet the operational needs of the Project; to maintain the fiscal integrity of the Project; and to satisfy all legal requirements and obligations in connection with the Project. Evidence of capacity must be reasonably acceptable to the Department in form and substance.

xxii. One-for-one replacement of assisted housing

a. If the acquired housing or site is to be redeveloped/repositioned as part of the Local Public Entity's overall goal to address the needs of the Target Population and the community, the Applicant shall provide as part of the application a commitment to ensure one-for-one replacement of units.

b. If acquired units will be subsequently combined to add kitchens, create larger units, and/or create units with additional bedrooms, the Applicant will provide such information in the application and ensure an approximate equivalence of square footage available for the benefit of Project residents and participants.

c. If the target site is going to be demolished before any occupancy by the Target Population, no one-for-one replacement commitment needs to be provided. The unit mix will be evaluated based on the Project proposal.

d. The application shall include a site map indicating the original target housing location and all proposed housing location(s). If all proposed housing will be located within the neighborhood, no additional documentation is necessary. If replacement housing is proposed outside the target neighborhood, the application must also include a justification explaining why it is necessary to locate this replacement 251
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housing outside the target neighborhood (i.e., offsite) and how doing so supports and enables the Target Population to maintain housing.

Section 301. Interim Housing Requirements

1. The Department will only consider an Interim Housing Project application if the Applicant demonstrates a need for Interim Housing in its Homekey application. The Department in its sole discretion may fail on threshold any Interim Housing Project application that does not sufficiently demonstrate a need, as described in this Section 301.

In addition to Section 300, Interim Housing Projects will also be evaluated on a demonstration of need for Interim Housing based on the following requirements:

i. The Eligible Applicant shall provide the following data:

a. The number of available shelter beds in Applicant’s jurisdiction.

b. The number of people experiencing unsheltered homelessness in the homeless PIT.

c. Shelter vacancy rate in the summer and winter months.

d. Percentage of exits from emergency shelters to Permanent Housing.

e. A plan to connect participants to Permanent Housing, describing the number and type of Permanent Housing opportunities, how the Project will leverage Supportive Services staff to navigate to Permanent Housing, and the funding plan to make connections to Permanent Housing.

ii. If the Eligible Applicant is entitled to apply directly to the HHAP program, then the Eligible Applicant shall provide a description of how the proposed Homekey Interim Housing Project aligns with the Local Homelessness Action Plan it submitted pursuant to HHAP Round 4, including the extent to which HHAP funding does not fully meet the need for Interim Housing.

iii. If the Eligible Applicant did not receive a direct funding allocation under HHAP, the Eligible Applicant shall describe how it has worked with HHAP recipients in the region and the Continuum of Care (CoC) to coordinate and align the proposed Homekey Project with the Local Homelessness Action Plan goals and strategies.

iv. If the Eligible Applicant is entitled to apply directly to the HHAP program, the Homekey application must also include the Eligible Applicant’s approved Local Homelessness Action Plan pursuant to HHAP Round 4, which clearly states the need for Interim Housing.
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2. Interim Housing Projects awarded Homekey funding pursuant to this NOFA may apply to convert to Permanent Housing in accordance with this section.

Approval to convert an Interim Housing Project to a Permanent Housing Project shall be within the Department’s sole and reasonable discretion.

Grantees shall meet the following requirements in order to convert Interim Housing Projects to Permanent Housing Projects:

i. The Project shall operate as an Interim Housing Project for a minimum of five (5) full years following the recordation of the Affordability Covenant referenced in Section 208 of this NOFA and prior to relocating participants to begin conversion to Permanent Housing.

ii. Any new special purpose entity with a proposed ownership interest in the converted Homekey Project must be already formed and approved by the Department.

iii. Submission of a Department-approved conversion plan, which must include the following:

a. Brief overview of conversion strategy, including the details of the Rehabilitation or construction (e.g., whether the conversion will involve an occupied Rehabilitation or a phased conversion),

b. Timeline for conversion, including estimated start and completion dates,

c. An identification of the supplemental sources of funding being used to complete the Rehabilitation or construction,

d. An identification of the Target Population to be served. If the Project was awarded additional points to serve specific subsets of the Target Population (such as Chronically Homeless, Homeless, Homeless Youth, or Youth at Risk of Homelessness), then the specific Target Population and count must be maintained unless otherwise approved by the Department.

e. Planned number of units and amenities after conversion.

1. The number of post-conversion units must be greater than or equal to the number of pre-conversion units, or the post- conversion living space square footage must be greater than or equal to the pre-conversion living space square footage.

2. Post-conversion amenities must be greater than or equal to pre-conversion amenities (both in quality and in number).

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f. An acknowledgement of all applicable federal, state, and local relocation law.

Section 302. Single-Family Scattered Site Housing Requirements

As described in Section 203 and Section 207(1)(c), the Department may conditionally award up to four (4) single-family home scattered site housing Projects up to $10 million each to a single Applicant. Applicants for this Project type must meet all requirements identified in Section 300, and submit all documents required in the Application Upload Checklist with the following exceptions:

i. Eligible Projects under this Project type must meet the following threshold requirement, sixty (60) days from the date of the conditional award. Failure to meet this requirement will rescind the conditional award.

a. Evidence of site control, as defined in Section 300.

ii. Eligible Projects under this Project type must meet the following threshold requirements, ninety (90) days from the date of the conditional award.

Failure to meet these requirements will rescind the conditional award.

a. Relocation narrative, as defined in Section 300;

b. Appraisal, as noted in the Application Upload Checklist;

c. PNA or equivalent evidence of Rehabilitation costs, as noted in the Application Upload Checklist; and

d. Phase 1 ESA or equivalent, as noted in the Application Upload Checklist.

Section 303. Other Requirements

i. Homekey may fund all units in a Project or a portion of the units. If seeking Homekey funding for a portion of the units in a given Project, Applicants must identify committed sources for the non-Homekey units. The non-Homekey units are not required to serve the Homekey Target Population and may therefore be restricted at higher AMI levels, which may help promote Project feasibility.

a. If, at the time of acquisition, an existing tenant’s household income is at or below 50 percent AMI, but the tenant does not qualify as a member of the Target Population, the tenant may remain in place and the unit may still be funded by Homekey.

When, in the course of normal tenant turnover, the ineligible household moves from the unit, the unit shall thereafter be occupied by the Target Population. There should be no more than 49 percent of the Assisted Units that do not meet the Target Population at the time of acquisition. An existing 254
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household who meets the Target Population definition or was a member of the Target Population at the time they moved into the property will not be counted towards the 49 percent cap.

Evidence confirming that existing tenants qualify as either at or below 50 percent AMI or Target Population will be required of the Applicant.

ii. At year 15 from the recordation of the Affordability Covenant, in circumstances where the Grantee has exhausted available operating funding and demonstrated to the Department that the Project is no longer feasible, the Department may approve an increase in income levels, to the minimum extent required for fiscal integrity, in five percent increments of Assisted Units up to 50 percent AMI.

iii. The Department reserves the right to set restrictions on the unit mix, rent levels, and other factors deemed necessary. To the maximum extent possible, these changes shall minimize the impact on the lowest income Project residents and shall be phased in as gradually as possible. If, following any increase in rents and income limits, or modification of Target Population occupancy requirements, new resources become available, or market demand changes, allowing reversion to the former income and rent limits or Target Population occupancy requirements, the Department may re- impose these income limits and rent limits or Target Population occupancy requirements, in whole or in part, subject to an analysis of Project feasibility.

iv. In addition to Section 300 above, Applicants purchasing affordability covenants and restrictions will also be evaluated on the following requirements:

a. The Grantees that purchase affordability covenants and restrictions for existing residential units shall restrict those units to individuals and families who are Homeless or who are At Risk of Homelessness, as defined in 24 CFR part 578.3. Such restriction shall run for 55 years.

v. In addition to Section 300 above, master leasing Projects will also be evaluated on the following requirements:

a. The Grantee shall provide a 15-year plan from the recordation of the Affordability Covenant to cover operations and service costs for the Project with specific funding sources
(government/philanthropic/private).

vi. The Grantee shall not, for the duration of this Agreement, sell, assign, transfer, or convey the Project, or any interest therein or portion thereof, without the express prior written approval of the Department.

Section 304. Application Scoring Criteria

In addition to meeting the other minimum program requirements outlined in Article III, 255
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Applicants must score a minimum of 100 points to be eligible for funding. Scores will be based on the following:

Table 5: Homekey Application Scoring Criteria

Categories and
Maximum Point
Scores
Evaluation Criteria

1. Ability to secure
site and
demonstration of
sustained
operating
leverage

(Up to 70 Points)
a. Identification of the site suitable for development and evidence of site control, or a plan and timeline for obtaining site control along with other supporting evidence (e.g., letter of intent, an exclusive negotiating agreement, ground lease, etc.). NOTE: Sections 300- 303 of this NOFA further outline site control requirements related to specific Project type. (up to 20 points)

- Fee title/leasehold (20 points)
- Option agreement/sales contract (20 points)
- Exclusive negotiating agreement (15 points)
- Letter of intent (15 points)

b. Documented commitment of non-Homekey rental or operating subsidies that will be used to maintain the ongoing affordability of the Project. (up to 40 Points)

i. Applicant contribution of non-Homekey Enforceable Funding Commitments for operating subsidies, including, but not limited to, Project-based vouchers, VASH vouchers, Faircloth to RAD conversions, tenant-based vouchers, or locally funded rental assistance.

- One point five (1.5) points for each 5 percent increment of non-Homekey operating subsidies covering Operating
Expenses in the first 5 years of Project operations. (up to 30 points)

ii. The length and strength of non-Homekey operating funding leveraged to cover operating costs committed beyond the required five years of initial Project operations. Score is based on weighted commitment type, percentage of costs covered, and length of commitment.

- One (1) point for each year beyond the first five (5) years through year fifteen (15) of Project operations. (up to 10 points)

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Categories and
Maximum Point
Scores
Evaluation Criteria

Weighted Point Value by Type
Sustained source 1
Subsidy carried by the tenant or participant 0.5
Intent to pursue funding 0.25

c. For any Project where the average total cost per Assisted Unit is below the minimum baseline per door, one (1) point will be assigned for every $10,000 under the baseline amount. (up to 10 points)

This section is intentionally blank.
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Categories and
Maximum Point
Scores
Evaluation Criteria

2. Experience and
Coordination
(Up to 40 points)
a. Demonstration of Applicant or member(s) of development team’s experience in development, ownership, or operation of a Project(s) similar in scope and size to the proposed Project.

NOTE: Sections 300-303 of this NOFA further outline threshold experience requirements.

- Five (5) points awarded for each additional Project
beyond the base threshold requirement (development,
ownership, or operation of affordable rental housing or interim Projects in the last ten (10) years serving at least one member of the Target Population). (up to 15 points)

b. Demonstration of service provider’s experience helping persons address barriers to housing stability and providing other support services, not necessarily within a housing Project. Service provider may be Applicant, or a member of the development team described in Applicant’s response to point category 2.c., below.

Service provider experience must be with the specific
population(s) housed within the Homekey units to count toward points in this section (e.g., families, singles, Homeless Youth, Chronically Homeless) and must describe how the Supportive Services are culturally and linguistically competent for persons of different races, ethnicities, sexual orientations, gender identities, and gender expressions. NOTE: Sections 300-303 of this NOFA further outline threshold experience requirements.

- 1 point awarded for each year of service experience, after 3 years. (up to 10 points)

c. Commitment letter(s) or MOU(s) documenting how the complete development and management team (which may include
Applicant, developer, property manager, lead service provider, etc.) are connected and will work together on the Project.

Applicants are encouraged to complete due diligence checklists to ensure all members of the team are aware of roles and
responsibilities. (up to 15 Points)

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Categories and
Maximum Point
Scores
Evaluation Criteria

3. Community
impact and site
selection
(Up to 76 points)
a. The Project serves specific sub-populations (20 points) - 25% or more of Assisted Units are reserved for those
experiencing Chronic Homelessness (20 points); OR
- 50% or more of Assisted Units are reserved for those
experiencing Homelessness (20 points); OR
- 25% or more of Assisted Units are reserved for Homeless Youth or Youth at Risk of Homelessness (20 points);

b. Assisted Units include units for large family housing types (10 points)

- At least twenty-five percent (25%) of the Assisted Units in the Project shall be three-bedroom or larger units, AND
- At least an additional twenty-five percent (25%) of the Assisted Units in the Project shall be two-bedroom or larger units, consistent with TCAC Regulations (4 CCR § 10325(g)(1)(A-I)), (10 points)

c. If proposed Project is Permanent, Applicant waives any potential accommodation by the Department to increase income limits at year 15 from the recordation of the Affordability Covenant, as described in Section 303 (ii). (up to 20 points)

- At least 25% of Assisted Units restricted (3 points)
- At least 50% of Assisted Units restricted (5 points)
- At least 75% of Assisted Units restricted (10 points) - 100% of Assisted Units restricted (20 points)

d. The extent to which the Project commits to being accessible to persons with disabilities. (up to 10 points)

- Exceeds the state and federal accessibility requirements set forth in Section 505, specifically providing a minimum of 15 percent of units with features accessible to persons with mobility disabilities, as defined in 24 C.F.R. Section 8.22 and the parallel ADAAG 2010 and CBC provisions; (5 points)

- A minimum of 10 percent of units with features accessible to persons with hearing or vision disabilities, as defined in 24 CFR Part 8.22 and the parallel ADAAG 2010 and CBC
Chapter 11B provisions. (5 points)

e. Site Selection (Up to 12 points; Up to 16 points for Rural Projects; Up to 15 Points for Youth Projects)

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Categories and
Maximum Point
Scores
Evaluation Criteria
i. The Project site is located within 1/2 mile of a bus rapid transit station, light rail station, commuter rail station, ferry terminal, bus station, or public bus stop OR the Project includes an alternative transportation service for residents (e.g., van or dial-a-ride service), if costs of obtaining and maintaining the van and its service are included in the budget and the
operating schedule is either on demand by tenants and
participants or a regular schedule is provided. (4 points)

The Project site is in proximity to essential services:

ii. Grocery store – a full-scale grocery store/supermarket where staples, fresh meat, and fresh produce are sold. (up to 2 points)

- within 1/2-mile radius of Project (2 points)
- within 1 mile radius of Project (1 point)
- within 1 mile radius for Projects in Rural Areas (2 points) - within 2 miles radius for Projects in Rural Areas (1 point)

NOTE: If applying for TCAC, it is advisable that the grocery store be at least 25,000 gross interior square feet.

iii. Health facility – a medical clinic with a physician, physician’s assistant, or nurse practitioner on-site for a minimum of 40 hours each week, or hospital (not merely a private doctor’s office). (up to 1 point)

- within 1/2-mile radius of Project (1 point)
- within 1 mile radius of Project (1/2 point)
- within 1 mile radius for Projects in Rural Areas (1 point) - within 2 miles radius for Projects in Rural Areas (1/2 point)

A qualifying medical clinic must accept Medi-Cal payments, or Medicare payments, or Health Care for the Homeless, or have an equally comprehensive subsidy program for low-income patients;

iv. Library – a book-lending public library. (up to 1 point) - within 1/2-mile radius of Project (1 point)
- within 1 mile radius of Project (1/2 point)
- within 1 mile radius for Projects in Rural Areas (1 point) - within 2 miles radius for Projects in Rural Areas (1/2 point)

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Categories and
Maximum Point
Scores
Evaluation Criteria
v. Pharmacy – may be included in a grocery store or health facility. (up to 2 points)

- within 1/2-mile radius of Project (2 points)
- within 1 mile radius of Project (1 point)
- within 1 mile radius for Projects in Rural Areas (2 points)
- within 2 miles radius for Projects in Rural Areas (1 point)

vi. A public park or a community center accessible to the general public. (up to 1 point)

vii. High speed internet service, with a minimum average download speed of 25 megabits/second must be made
available to each Unit for a minimum of 15 years, free of charge to the tenants and participants, and available within six months of the Project’s placed-in-service date. Documentation of internet availability must be included in the application. (up to 2 points)

- 2 point
- 3 points for rural Projects

viii. For Projects with units serving Homeless Youth: community colleges, universities, trade schools, apprenticeship programs, employment programs, childcare centers for parenting youth, and/or community centers for youth (e.g., LGBTQ+ centers, drop-in youth centers). (up to 2 points)

- at least two amenities located within 1 mile radius of Project (2 points)

4. Relocation
Impacts
(Up to -20
points)
a. For any Project resulting in the permanent displacement of residents (not businesses or farm operations), as outlined below:

- The Project permanently displaces existing residents in 5% of total units. (- 5 points)
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In the event of program oversubscription, where Applicants have the same score and the same date and time stamp, the Department may consider additional criteria as a tiebreaker, including, but not limited to, cost-effectiveness, community impact, affirmatively furthering fair housing, innovative housing types, tenant and participant stability and proximity to transit, and services and amenities.

Negative Points Policy

The Department’s Negative Points Policy (Administrative Notice Number 2022-01), dated March 30, 2022 or as amended and in effect prior to the established application due date as published on the Department’s website and as updated herein, is hereby incorporated by this reference to the Homekey Round 3 NOFA as if set forth in full herein, and shall apply with equal force as all other provisions set forth herein. The Department shall implement the Negative Points Policy with reasonable and necessary discretion to advance Homekey policy and funding goals.

As a reminder, if an Applicant receives points in any of the scoring categories and subsequently fails to meet the deliverable, the Applicant may be subject to future negative points.

If the Applicant is subject to a negative points assessment based on the criteria outlined in the Department’s Negative Points Policy, the Department shall notify the Applicant in writing in an initial point score letter, and will provide an opportunity to appeal that negative points assessment pursuant to the appeals process as set forth in this NOFA.

Article IV. Application Submission, Review, and Award Process

Section 400. Application Process and Submission

For OTC funding, applications will be accepted and evaluated on a first-come, first- served basis at any time from the release of the application until July 28, 2023, or until the available funds are exhausted, whichever occurs first. Funds are awarded to those Applicants that meet the minimum threshold criteria, including the minimum point score.

Homekey Round 3 application materials must be submitted electronically to the Department’s website.

Electronic Submission - Requirements for uploading the Homekey Round 3 application and required supporting documentation, including naming conventions, are described in Categories and
Maximum Point
Scores
Evaluation Criteria
- Applicants lose one point (up to an additional 15 points) for each additional percentage point of households
displaced out of total units.

5. Negative
Points
a. Negative Points assessed by the Department to the Applicant 262
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the Homekey Round 3 application instructions/checklist tab. Applicants must upload all complete application materials to the Department’s website no later than 5:00 p.m.

Pacific Daylight Time on Friday July 28, 2023, to the extent that funds remain available at that time.

Application packages that are incomplete or that do not meet the filing requirements will not be considered for funding but may be amended and resubmitted. Applications must be on the Department’s forms and forms cannot be altered or modified by the Applicant.

Excel forms must be submitted in Excel format, not as a PDF document.

i. Applications will be prioritized as described in Section 203.

ii. The Department will evaluate applications for compliance with the minimum program requirements set forth in this NOFA.

iii. After each Applicant has been certified to meet the minimum program requirements, each Project must receive a minimum overall score of 100 points, as outlined in Section 304, to be considered for a funding award.

iv. Each Applicant and Co-Applicant shall submit an authorizing resolution that, in the Department’s reasonable determination, materially comports with the Program’s requirements and is legally sufficient. In addition, each Co-Applicant shall submit a complete set of its organizational documents (including any amendments thereto). The Department will not execute the Standard Agreement until it receives the foregoing documentation, as specified.

v. Applicant shall provide documentation of its ability to obtain the insurance coverages outlined in Article VIII of this NOFA.

vi. The application is a public record, which is available for public review pursuant to the California Public Records Act (CPRA) (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code).

After final Homekey awards have been issued, the Department may disclose any materials provided by the Applicant to any person making a request under the CPRA. The Department cautions Applicants to use discretion in providing information not specifically requested, including but not limited to, bank account numbers, personal phone numbers, and home addresses. By providing this information to the Department, the Applicant is waiving any claim of confidentiality and consents to the disclosure of submitted material upon request.

vii. The Department reserves the right to do the following:

a. Score an application as submitted even if information is missing from the application;

b. Request clarification of unclear or ambiguous statements made in an application or request additional clarifying documentation or information; and

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c. Upon the final application due date or the date when funds are exhausted, whichever is earlier, deploy unused funds from an undersubscribed allocation to fund other Eligible Applicants for other subsets of the Target Population.

viii. The Department will review, and score based on information provided in the application. If there is a significant departure from the application after a Project has been awarded, the Department may re-evaluate the Project’s score, reduce the grant amount, or assign negative points to the Applicant.

Section 401. Pre-Application Consultation and Technical Assistance

The Department requires all Applicants to engage in a pre-application Project survey prior to applying. The survey will allow the prospective Applicant to provide basic information about the proposed Project, along with other applicable programmatic considerations, including those related to site acquisition; the CEQA, land use and land entitlements; CoC coordination and services partnerships; and long-term financing approaches. Based on the information provided in the pre-application survey, the Department may require a pre-application consultation to further discuss the details of the Project. Applicants will also be able to request a pre-application consultation using the pre-application survey if they would like to meet with Homekey program staff to consult prior to applying. Information on when pre-application consultations will be available will be posted on the Homekey website.

Section 402. Award Process

The Department will send an award letter to the successful Applicant. Funds will be disbursed after the Standard Agreement has been fully executed and approved by the Department unless the Standard Agreement specifies conditions precedent to disbursement.

Please see Section 102 for further details on Standard Agreement and fund disbursement timelines.

The Department may issue Homekey acquisition funds directly to an escrow company that has been approved by the Department if the full award is toward acquisition. The Applicant shall identify the name and address of the escrow company, the name of the escrow officer, the escrow number, and any other information requested by the Department.

Section 403. Appeals

1. Basis of Appeals.
i. Applicants may appeal the Department’s written determination that an application is incomplete, has failed threshold review, or has otherwise been determined to provide an insufficient basis for an award.

ii. No Applicant shall have the right to appeal a decision of the Department 264
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relating to another Applicant’s application (e.g., eligibility, award).

iii. Any request to appeal the Department’s decision regarding an application shall be reviewed for compliance with this NOFA. All decisions rendered shall be made by the Director or his/her designee.

The decision shall be final, binding, and conclusive, and shall constitute the final action of the Department.

iv. The appeal process provided herein applies solely to decisions of the Department made pursuant to this NOFA.

2. Appeal Process and Deadlines.

i. Process: To file an appeal, Applicants must submit to the Department, by the deadline set forth below, a written appeal which states all relevant facts, arguments, and evidence upon which the appeal is based. Furthermore, the Applicant must provide a detailed reference to the area or areas of the application that provide clarification and substantiation for the basis of the appeal. No new or additional information will be considered if this information would result in a competitive advantage to an Applicant. Once the written appeal is submitted to the Department, no further information or materials will be accepted or considered thereafter. Appeals are to be submitted to the Department at [email protected] according to the deadline set forth in the Department’s review letter.

ii. Filing Deadline: Appeals must be received by the Department no later than five (5) business days from the date of the Department’s threshold review, or initial score letter, as applicable, representing the Department’s decision in response to the application.

3. Decision.

Any request to appeal the Department’s decision regarding an application shall be reviewed for compliance with this NOFA. All decisions rendered shall be final, binding, and conclusive, and shall constitute the final action of the Department.

Article V – Other Program Requirements

Section 500. Article XXXIV

Per HSC Section 37001, subdivision (h)(5), article XXXIV, section 1 of the California Constitution (Article XXXIV) is not applicable to development that consists of the acquisition, Rehabilitation, reconstruction, alterations work, new construction, or any combination thereof, of lodging facilities or dwelling units using moneys received from the CSFRF established by the federal American Rescue Plan Act of 2021 (ARPA) (Public Law 117-2). As such, Article XXXIV is not applicable to Homekey-funded development.

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Section 501. Housing First

The Eligible Applicant shall certify to employ the core components of Housing First, as set forth at Welfare and Institutions Code section 8255, subdivision (b), in its property management and tenant and participant selection practices. Projects shall accept tenants and participants regardless of sobriety, participation in services or treatment, history of incarceration, credit history, or history of eviction in accordance with practices permitted pursuant to Housing First practices, including local Coordinated Entry System prioritization protocols, or other federal or state Project funding sources.

Section 502. Tenant and Participant Selection

Referrals to Homekey Assisted Units shall be made through the local Coordinated Entry System (CES) or another comparable prioritization system based on greatest need. All referral protocols for Homekey Assisted Units must be developed in collaboration with the local CoC and implemented consistent with the requirements set forth in this NOFA.

CoC collaboration in Project and Supportive Services design is also strongly encouraged to help target and serve greatest need populations. If referrals will be made using a prioritization system other than CES, the Applicant must describe the plan for tenant and participant selection, and it shall be reasonably detailed and comprehensive, as determined by the Department in its sole and absolute discretion. For Grantees utilizing HOME-ARP funds as match, this includes descriptions of any systems that are consistent with HOME-ARP referral methods as described in HUD Community Planning and Development (CPD) Notice 21-10.

Section 503. Participation in Statewide HDIS/HMIS

Pursuant to Assembly Bill 977 (Statutes of 2021-22), Grantees who have been awarded Department funding under the Homekey program must enter Universal and Common Data Elements as defined by HUD on the individuals and families served into the Homeless Management Information System (HMIS), for Projects that will have completed permanent conversion of Department funds effective January 1, 2023, and later.

Section 504. Relocation

In addition to the Relocation Assistance Narrative required in Section 300 xiii. submitted at the time of application, before the Homekey award will be disbursed, Grantee must submit either:

a. A Department-approved relocation plan; or

b. A Department-issued Certification Regarding Non-Application of Relocation Benefits and Indemnification Agreement (certificate of no-relocation), which has been duly executed and approved by the Department.

Grantee must comply with all applicable federal, state, and local relocation law.

Pursuant to relocation law, a Grantee must have a relocation plan prior to proceeding with any phase of a Project or other activity that will result in the displacement of persons, businesses, or farm operations. To ensure that displaced persons and entities 266
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do not suffer a disproportionate impact as a result of Projects which benefit the public, all notices to vacate and relocation services must be provided to them in accordance with applicable law.

The Department will identify its form, substance, and submittal requirements for these relocation documents in the Homekey application materials. Where the Grantee’s activities will or may result in displacement, the Grantee’s development budget shall include enough funds to pay all costs of relocation benefits and assistance. Any modifications to the foregoing process requirements must be approved in advance by the Department in writing.

Section 505. Accessibility and Non-Discrimination

All developments shall adhere to the accessibility requirements set forth in California Building Code Chapter 11A and 11B and the Americans with Disabilities Act, Title II. In addition, developments shall adhere to either the Uniform Federal Accessibility Standards (UFAS), 24 C.F.R. Part 8, or HUD's modified version of the 2010 ADA Standards for Accessible Design (Alternative 2010 ADAS), HUD-2014-0042-0001, 79 F.R. 29671 (5/27/14) (commonly referred to as "the Alternative Standards" or "HUD Deeming Memo"). Accessible units shall, to the maximum extent feasible and subject to reasonable health and safety requirements, be distributed throughout the Project and be available in a sufficient range of sizes and amenities consistent with 24 CFR part 8.26.

Grantees shall adopt a written non-discrimination policy requiring that no person shall, on the grounds of race, color, religion, sex, gender, gender identity, gender expression, sexual orientation, marital status, national origin, ancestry, familial status, source of income, disability, age, medical condition, genetic information, citizenship, primary language, immigration status (except where explicitly prohibited by federal law), arbitrary characteristics, and all other classes of individuals protected from discrimination under federal or state fair housing laws, individuals perceived to be a member of any of the preceding classes, or any individual or person associated with any of the preceding classes be excluded from participation in, be denied the benefits of, or be subjected to discrimination under, any program or activity funded in whole or in part with program funds made available pursuant to this NOFA.

Grantees shall comply with the requirements of the Americans with Disabilities Act of 1990, the Fair Housing Amendments Act, the California Fair Employment and Housing Act, the Unruh Civil Rights Act, Government Code section 11135, Section 504 of the Rehabilitation Act of 1973, and all regulations promulgated pursuant to those statutes, including 24 CFR Part 100, 24 CFR Part 8, and 28 CFR Part 35.

Section 506. Prevailing Wages

Applicant's contemplated use of Homekey funds is subject to California's prevailing wage law (Lab. Code, § 1720 et seq.). Applicant is urged to seek professional legal advice about the law's requirements. Prior to disbursing the Homekey funds, the Department will require a certification of compliance with California's prevailing wage law, as well as all applicable federal prevailing wage law. The certification must verify that prevailing wages have been or will be paid, and that labor records will be maintained and made available to any enforcement agency upon request. The certification must be signed by 267
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the general contractor(s) and the Grantee.

Section 507. Environmental Clearances

The Department encourages Eligible Applicants to fully engage with the Department’s technical assistance and to consider the CEQA exemption set forth at HSC section 50675.1.4 and the provision for land use consistency and conformity set forth at HSC section 50675.1.3, subdivision (i).

Applicants should consult with their counsel for legal advice in construing application of the foregoing exemptions to their Project. It is entirely within an Applicant’s discretion to determine whether to use the statutory CEQA exemption, whether the exemption applies to the Applicant’s proposed activity, or whether some other mechanism applies and could be used to satisfy obligations under CEQA.

Applicants must provide National Environmental Clearance Act (NEPA) clearance, as applicable. According to the National Environmental Policy Act (NEPA), Grantees must consider environmental impacts early in the planning process before decisions are made, and actions are taken. The Project must assess environmental impacts if a Project has applied for HUD assistance (HOME, CDBG, PBVs, Choice Neighborhoods Grant, ShelterCare Plus, etc.). HUD’s regulations prohibit grant recipients and their partners/contractors from committing or spending HUD or non-HUD funds on an activity that could limit the choice of reasonable alternatives before completing the environmental review process. The prohibition of choice-limiting actions does not apply to commitments of non-federal funds before the Project has applied for HUD funding.

When an application is submitted for a federal grant/loan, all activity must stop until the environmental review process is complete.

There is no flexibility or waiver of NEPA environmental review requirements. The Project must receive an Authority to Use Grant Funds (AUGF) before the Project proceeds with the acquisition or physical activities, including non-HUD-funded activities.

A choice-limiting action can result in a violation that jeopardizes HUD funding for the Project.

The prohibition on choice-limiting actions prohibits physical activity, including acquisition, Rehabilitation, and construction, as well as contracting for or committing to any of these actions before completion of the environmental review. Some examples of choice-limiting actions are:

• Acquisition
• Rehabilitation
• Demolition
• Site improvements (including site clearance/grubbing) • Leases or Transfers
• Entering into contracts such as construction bidding
• A change in Project conditions or unexpected conditions arise

Choice-Limiting Actions are not:

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• Plans or designs
• Activities necessary to support an application for federal, state, tribal, or local permits
• Option agreement on a proposed property (make sure that the contract is contingent on environmental review clearance and don’t close escrow before the review process is complete)

The Department does not determine which Projects will require NEPA clearance.

Applicants shall provide the Department a status of any required NEPA review at the time of application.

For more information, visit the HUD Exchange, review the Department’s CDBG-DR Environmental Review guidance, or contact the Department’s Environmental Services Team at [email protected].

Section 508. Land Use

Pursuant to HSC section 50675.1.3, subdivision (i), Homekey Projects “shall be deemed consistent and in conformity with any applicable local plan, standard, or requirement, and any applicable coastal plan, local or otherwise, and allowed as a permitted use, within the zone in which the structure is located, and shall not be subject to a conditional use permit, discretionary permit, or any other discretionary reviews or approvals.”

Section 509. State Requirements

All Assisted Units and other Units of the Projects must meet all applicable state and local requirements pertaining to rental housing, including but not limited to, requirements for minimum square footage, and requirements related to maintaining the property in a safe and sanitary condition.

Section 510. Grantee Liability

All entities in the Grantee structure (to include the Eligible Applicant, any Co-Applicants, and any other entities added to the ownership structure of the Project pursuant to [Section 303 vi.] of this NOFA) shall be bound by the Homekey Program Requirements; and shall remain jointly and severally liable to the Department for performance under the Standard Agreement and for compliance with all Homekey Program Requirements.

This provision shall remain applicable notwithstanding any Department-approved transfer or assignment of interest, or any designation of a third party for the undertaking of all or any part of the Scope of Work in the Standard Agreement.

Article VI – Program Operations

Section 600. Program Oversight

As specified by the Department and upon request, Grantees shall provide progress reports in connection with the development plan and any updates to the timeline for completion of the Project. The development plan should include the Project's completion milestones and any updates or substantial changes.
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Grantees shall promptly notify the Department upon any changes in Grantee organization, authorization, or capacity.

Section 601. Reporting

Grantees shall submit an annual Homekey program and expenditure report to the Department for five years following Standard Agreement execution. The report will be due no later than January 31 for the prior calendar year of January 1 to December 31.

The report shall be in such form and contain such information as required by the Department in its sole and absolute discretion. At minimum, the report shall include the following data:

i. The amount of funds expended for the Project.

ii. The location of any properties for which the funds are used.

iii. The number and bed size of habitable housing units produced, or planned to be produced, using the funds.

iv. The number and demographics of individuals housed, or likely to be housed, using the funds.

v. The racial and ethnic composition of the tenants and participants assisted.

vi. The number of units, and the location of those units, for which operating subsidies have been, or are planned to be, capitalized using the funds.

vii. Detail of Supportive Services offered to tenants and participants.

viii. The number and demographics of tenants and participants who moved out of the Project and whether the move was voluntary or involuntary. The data shall detail the reason for the move and include returns to homelessness and engagement with voluntary moving on strategies.

ix. Any lessons learned from the use of the funds.

x. The proposed development vision that identifies the financial and regulatory mechanisms to be used to maintain the long-term affordability of the Project.

xi. The progress and status in securing any required entitlements, permits, environmental clearances.

xii. The proposed timeline for the completion of the Project.

If a Project received an operating award, Grantees shall also report their operating expenditures in the annual report.

In addition to the foregoing, the Grantee shall submit to the Department such periodic 270
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reports, updates, and information as deem necessary by the Department to monitor compliance and/or perform program evaluation. Any requested data or information shall be submitted in electronic format on a form provided by the Department.

The Grantee shall ensure that the expenditure of Homekey funds is consistent with the requirements of the Program. The Department shall monitor the expenditures to ensure that those expenditures comply with this NOFA.

The Department may request the repayment of funds or pursue any other remedies available, at law or in equity, for failure to comply with Program requirements.

Section 602. Disbursement of Grant Funds

Pursuant to 31 CFR part 35.5, the Department may disburse funds to cover Homekey- critical expenditures that were incurred beginning March 3, 2021. Homekey program funds will be disbursed to the Grantee after the Department has approved the relocation plan or issued a certificate of no-relocation, received a request for funds from the Grantee and a Standard Agreement between the Grantee and the Department is fully executed. The Standard Agreement will set forth the general conditions of disbursement, any conditions precedent to disbursements (e.g., documentation requirements for pre-Standard Agreement expenditures or conditional performance measures), and the Department’s remedies upon an event of default. The Standard Agreement will also identify the payee.

Where Co-Grantees wish to receive the grant award outside of escrow, they must identify, and memorialize in the Standard Agreement, which Grantee will serve as the designated payee for all award amounts. Homekey funds awarded to an Applicant may not be transferred to another entity to expend on an eligible use unless that other entity is a signatory on the Standard Agreement.

To avoid any disbursement delays, funds may be issued directly to an escrow company after the transaction has been approved by the Department, for the portion of the grant awarded acquisition. The Applicant shall identify the name and address of the escrow company, the name of the escrow officer, the escrow number, and any other information requested by the Department.

Section 603. Legal Documents

Upon the award of Homekey funds to a Project, the Department shall enter into one or more agreements with the Grantee, including a Standard Agreement, which shall encumber funds from the Homekey program, subject to specified conditions. The agreement or agreements shall include, but not be limited to:

i. A description of the approved Project and the permitted uses of funds;

ii. The amount and terms of the program grant;

iii. The use, income, occupancy, and rent restrictions to be imposed on the Project through the Affordability Covenant;

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iv. Performance milestones, and other progress metrics, governing the completion of the Project, along with the remedies available to the Department in the event of a failure to meet such milestones or metrics;

v. Provisions governing the manner, timing, and conditions of the disbursement of the program grant;

vi. Special conditions imposed as part of the Department's approval of the Project;

vii. Terms and conditions required by federal and state law;

viii. Requirements for reporting to the Department;

ix. Remedies available to the Department in the event of a violation, breach, or default of the agreement; and

x. Provisions regarding Grantee liability. Specifically, the Grantee will remain liable to the Department for compliance with and the performance of all Program requirements regardless of any Department-approved transfer or assignment of interest. Likewise, each co-Grantee will remain jointly and severally liable to the Department for compliance with and the performance of all Program requirements regardless of any Department- approved transfer or assignment of interest, and notwithstanding the co- Grantees' identification of a designated payee.

The agreement will also include such other provisions as are necessary to ensure adherence to the objectives and requirements of the program.

Section 604. Sales, Transfers, and Encumbrances

An Applicant(s) shall not sell, assign, transfer, or convey the awarded Project, or any interest therein or portion thereof, without the express prior written approval of the Department, which may be granted, delayed, or withheld in the Department’s sole and absolute discretion. All Applicants and Co-Applicants must be signatories on the Standard Agreement and may not be removed, even upon an approved transfer to another entity.

Section 605. Defaults and Grant Cancellations

Funding commitments may be canceled by the Department under any of the following conditions:

i. The objectives and requirements of the Homekey program cannot be met, and the implementation of the Project cannot proceed in a timely fashion in accordance with the timeframes established in the Standard Agreement or the regulatory agreement.

ii. In the event of a breach or violation by the Grantee, the Department may give written notice to the Grantee to cure the breach or violation. If the 272
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breach or violation is not cured to the satisfaction of the Department within a reasonable time period, the Department, at its option, may declare a default under the relevant document and may seek legal remedies for the default including the following:

a. The Department may seek, in a court of competent jurisdiction, an order for specific performance of the defaulted obligation or the appointment of a receiver to complete the Project in accordance with Homekey Program Requirements; and

b. The Department may seek such other remedies as may be available under the relevant agreement or at law, or in equity.

Article VII – Definitions

Below are the definitions for purposes of the Homekey program:

i. “Affordability Covenant” means the legally binding instrument which (a) is recorded in first position against Project real property in consideration for the Homekey Program Award to the Grantee; (b) imposes use, operation, occupancy, and affordability restrictions on the real property and improvements; and (c) incorporates the Homekey Program Requirements by reference. Upon its execution, the Affordability Covenant shall be binding, effective, and enforceable against all successors, transferees, and assignees, in accordance with Section 208 of this NOFA, after a certificate of occupancy or its equivalent has been issued for the Project, or if no such certificate is issued, from the date of initial occupancy of the Project.

ii. "Applicant" means the “Eligible Applicant,” as that term is defined in this NOFA, as well as the Eligible Applicant’s Co-Applicant(s), if applicable. As allowed or required by context, the term “Applicant” shall refer to all such entities in their individual and/or collective capacity.

iii. “Application Upload Checklist” is a form in the application to be completed by the Applicant prior to submission to verify that required documents are submitted pursuant to this NOFA.

iv. "Area Median Income" or "AMI" means the most recent applicable county median family income published by the California Tax Credit Allocation Committee (TCAC) or the Department.

v. "Assisted Unit" means a Homekey-funded residential dwelling unit that is subject to rent, income, occupancy, or other restrictions associated with Homekey requirements. See also “Youth Assisted Unit.”

vi. "At Risk of Homelessness" has the same meaning as defined in Title 24 CFR Part 578.3.

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vii. “Case Manager” is a social worker or other qualified person who assists in individualized service planning, and the assessment, coordination, monitoring, referral, and advocacy of services to meet tenants’ and participants’ Supportive Services needs, including, but not limited to, access to medical and mental health services, substance abuse services, vocational training, employment, home and community-based services and crisis management and interventions. Resident service coordinators are not Case Managers.

viii. "Chronic Homelessness" means a person who is chronically homeless, as defined in Title 24 CFR Part 578.3.

ix. "City" means a city or city and county that is legally incorporated to provide local government services to its population. A city can be organized either under the general laws of this state or under a charter adopted by the local voters.

x. “Co-Applicant” means the nonprofit corporation, for-profit corporation, limited liability company (LLC), and/or limited partnership (LP) that is jointly applying for Homekey funds with a state, regional, or Local Public Entity, or with a Tribal Entity.

xi. "Continuum of Care" means the same as defined by Title 24 CFR Part 578.3.

xii. "Department" means the California Department of Housing and Community Development.

xiii. “Eligible Applicant” means a city; county; a city and county; any other state, regional, and Local Public Entity, including a council of government, metropolitan planning organization, and regional transportation planning agency designated in Section 29532.1 of the Government Code; or a Tribal Entity(ies) as defined in this NOFA. For purposes of this definition, a “Local Public Entity” is further defined in accordance with HSC section 50079. As allowed or required by context, “Applicant” shall be interpreted to include any of the foregoing entities, as well as that entity’s Co- Applicant. Upon receiving an award of Homekey funds, the Eligible Applicant and any Co-Applicant(s) will, both individually and collectively, be referred to as the “Grantee” for purposes of this NOFA.

xiv. “Enforceable Funding Commitment” (EFC) means a letter or other document, in form and substance satisfactory to the Department, which evidences an enforceable commitment of funds or a reservation of funds by a Project funding source, and which contains the following:

a. The name of the Applicant;

b. The Project name;

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c. The Project site address, assessor’s parcel number, or legal description; and

d. The amount, interest rate (if any), and terms of the funding source.

The Enforceable Funding Commitment may be conditioned on certain standard underwriting criteria, such as appraisals, but may not be generally conditional. Examples of unacceptable general conditions include phrases such as “subject to senior management approval,” or a statement that omits the word “commitment,” but instead indicates the lender’s “willingness to process an application” or indicates that financing is subject to loan committee approval of the Project.

Contingencies in commitment documents based upon the receipt of tax- exempt bonds or low-income housing tax credits will not disqualify a source from being counted as committed.

Where local sources may be dependent upon future budget allocations or are in the process of being allocated, Applicants can demonstrate funding commitments by submitting one of the following:

i. An executed authorizing resolution from the governing body of the Local Public Entity describing the intent to commit the funds to the Eligible Project (by name) upon allocation approval, or

ii. A formal letter, on official letterhead, from the Local Public Entity’s governing body or from an official with authority, that demonstrates the Local Public Entity’s intent to commit funds to the Eligible Project (by name) upon allocation approval. These funding commitments will be noted in the Homekey Standard Agreement.

xv. “Extremely Low Income” or “ELI” has the same meaning as in Title 24 CFR Part 93.2.

xvi. “Fleeing, or Attempting to Flee, Domestic Violence, Dating Violence, Sexual Assault, Stalking, or Human Trafficking” has the same meaning as defined in HUD Community Planning and Development Notice 21-10, issued September 13, 2021.

xvii. “Foster Youth” means a child or nonminor dependent, as defined by Section 475 of Title IV-E of the Social Security Act (42 U.S.C. Sec. 675(8)) and subdivision (v) of Section 11400 of the Welfare and Institutions Code, who has been removed from the custody of their parent, legal guardian, or Indian custodian pursuant to Section 361 or 726 of the Welfare and Institutions Code, and who has been ordered into any placement described in paragraphs (2) to (9), inclusive, of subdivision (e) of Section 361.2 of, or paragraph (4) of subdivision (a) of Section 727 of, the Welfare and Institutions Code.

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xviii. "Grantee" means the Eligible Applicant (and, if applicable, the Co- Applicant) that has been awarded funds under Homekey, and that will be held responsible for compliance with and performance of all Homekey Program Requirements. The Grantee may comprise one or more entities, so long as the Grantee structure includes an “Eligible Applicant,” as that term is defined in this NOFA. All such entities shall, in their individual and collective capacity as the “Grantee,” be bound by the Homekey Standard Agreement and each and every one of the Homekey program terms, conditions, and requirements.

xix. “HDIS” means the statewide Homeless Data Integration System.

xx. “Homekey Program Requirements” means the following, all as amended and in effect from time to time:

a. the Homekey Program Notice of Funding Availability and Guidelines, Round 3;

b. Chapter 6.7 (commencing with Section 50675) of Part 2 of Division 31 of the Health and Safety Code;

c. ARPA and related federal guidance;

d. the Grantee’s application for Homekey Round 3 funding;

e. the Project report prepared by the Department in reliance on the representations and descriptions included in the Grantee’s application for Homekey Round 3 funding;

f. the award letter issued by the Department to the Grantee;

g. the relevant STD 213, Standard Agreement for the Homekey Round 3 funding; and

h. all other applicable law.

xxi. "Homeless" has the same meaning as defined in Title 24 CFR Part 578.3.

xxii. “Homeless Youth” means a child, youth, or current or former Foster Youth through the age of 25 who qualifies as “Homeless” under any of the relevant definitions set forth or identified in Title 24 CFR Part 578.3.

xxiii. "Housing First" has the same meaning as in Welfare and Institutions Code section 8255, including all of the core components listed therein.

xxiv. "HUD" means the U.S. Department of Housing and Urban Development.

xxv. "Interim Housing" means any facility whose primary purpose is to provide a temporary shelter for the Homeless in general or for specific populations 276
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identified in this NOFA and which does not require occupants to sign leases or occupancy agreements.

xxvi. “Local Public Entity” is defined in accordance with HSC section 50079, and means any county, city, city and county, the duly constituted governing body of an Indian reservation or rancheria, tribally designated housing entity as defined in Section 4103 of Title 25 of the United States Code and Section 50104.6.5, redevelopment agency organized pursuant to Part 1 (commencing with Section 33000) of Division 24, or housing authority organized pursuant to Part 2 (commencing with Section 34200) of Division 24, and also includes any state agency, public district, or other political subdivision of the state, and any instrumentality thereof, that is authorized to engage in or assist in the development or operation of housing for persons and families of low or moderate income. “Local Public Entity” also includes two or more Local Public Entities acting jointly.

xxvii. "NOFA" means a Notice of Funding Availability.

xxviii. "Operating Expenses" means the amount approved by the Department that is necessary to pay for the recurring expenses of the Project, such as utilities, maintenance, management fees, taxes, licenses, and Supportive Services costs, but not including debt service or required reserve account deposits.

xxix. “Other Populations” has the same meaning as defined in HUD Community Planning and Development Notice 21-10, issued September 13, 2021.

xxx. "Permanent Housing" means a housing unit where the landlord does not limit length of stay in the housing unit, the landlord does not restrict the movements of the tenant, and the tenant has a lease and is subject to the rights and responsibilities of tenancy.

xxxi. "Permanent Supportive Housing" means housing with no limit on length of stay, that is occupied by the Target Population, and that is linked to onsite or offsite services that assist the supportive housing resident in retaining the housing, improving their health status, and maximizing their ability to live and, when possible, work in the community, as defined at HSC section 50675.14, subdivision (b)(2), except that "Permanent Supportive Housing" shall include associated facilities if used to provide services to housing residents.

xxxii. "Point-in-Time Count" or “PIT” means a count of sheltered and unsheltered Homeless persons on a single night conducted by Continuums of Care as prescribed by HUD.

xxxiii. “Positive Youth Development (PYD)” is an intentional, prosocial approach that engages youth within their communities, schools, organizations, peer groups, and families in a manner that is productive and constructive; recognizes, utilizes, and enhances young people’s strengths; and 277
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promotes positive outcomes for young people by providing opportunities, fostering positive relationships, and furnishing the support needed to build on their leadership strengths.

xxxiv. "Program Award" means the portion of program funds available for a Grantee to expend toward eligible program uses.

xxxv. "Project" means a structure or set of structures providing housing or shelter with common financing, ownership, and management.

xxxvi. "Rehabilitation" means repairs and improvements to a substandard residential structure necessary to make it meet Rehabilitation standards.

As used in this section, “substandard residential structure” has the same meaning as the term “substandard building,” as defined in HSC Section 17920.3. “Rehabilitation” also includes improvements and repairs made to a residential structure acquired for the purpose of preserving its affordability and use by the Target Population.

xxxvii. “Rural Area” in accordance with HSC Section 50199.21, means an area, which, on January 1 of any calendar year satisfies any of the following criteria:

a. The area is eligible for financing under the Section 515 program, or successor program, of the Rural Development Administration of the United States Department of Agriculture;

b. The area is located in a nonmetropolitan area as defined in HSC Section 50090; or

c. The area is either:

i. An incorporated city having a population of 40,000 or less as identified in the most recent Report E-1 published by the Demographic Research Unit of the Department of Finance; or

ii. An unincorporated area which adjoins a city having a population of 40,000 or less, provided that the city and its adjoining unincorporated area are not located within a census tract designated as an urbanized area by the United States Census Bureau. The Department shall assist in determinations of eligibility pursuant to this subdivision upon request. With respect to areas eligible under subdivision (b) and this subdivision, the committee may rely upon the recommendations made by the Department. Any inconsistencies between areas eligible under subdivisions (a) and (b), and this subdivision, shall be resolved in favor of considering the area a Rural Area. Eligible and ineligible areas need not be established by regulation.

xxxviii. “Standard Agreement” means the STD 213, Standard Agreement, and all exhibits thereto.

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xxxix. “Supportive Services” means social, health, educational, income support, employment, and housing stability services and benefits; coordination of community building and educational activities; individualized needs assessment and case management; and individualized assistance with obtaining services and benefits.

xl. "Target Population" means individuals and families who are experiencing homelessness or who are At Risk of Homelessness, as defined at HSC section 50675.1.3, subdivision (l), and who are inherently impacted by or at increased risk for medical diseases or conditions due to the COVID-19 pandemic or other communicable diseases. For Grantees utilizing HOME-ARP funding as match, the “Target Population” also includes individuals and families who are “Fleeing, or Attempting to Flee, Domestic Violence, Dating Violence, Sexual Assault, Stalking, or Human Trafficking” and “Other Populations” as defined in HUD Community Planning and Development (CPD) Notice 21-10.

xli. “Tribal Entity(ies)” means an Applicant that is any of the following:
a. Applicant meets the definition of Indian tribe under Section 4103(13)(B) of Title 25 of the United State Code;

b. Applicant meets the definition of Tribally Designated Housing Entity under 25 USC 4103(22);

c. If not a federally recognized tribe, either:

i. Applicant is listed in the Bureau of Indian Affairs Office of Federal Acknowledgement petitioner list pursuant to Section 82.1 of Title 25 of the Federal Code of Regulations.

ii. Applicant is an Indian tribe located in California that is on the contact list maintained by the Native American Heritage Commission for the purposes of consultation pursuant to Section 65352.3 of the Government Code.

xlii. "Unit" means a residential unit that is used as a primary residence by its occupants, including individual units within the Project.

xliii. “Youth Assisted Unit” means an Assisted Unit serving Homeless Youth, or Youth at Risk of Homelessness, as defined in Title 24 CFR Part 578.3.

Pursuant to Section 203, Youth Assisted Units may also serve current and former Foster Youth through the age of 25.

xliv. “Youth at Risk of Homelessness” means a child, youth, or current or former Foster Youth through the age of 25 who qualifies as “At Risk of Homelessness” or “Homeless” under any of the relevant definitions set forth or identified at Part 578.3 of Title 24 of the Code of Federal Regulations.

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Article VIII – Insurance Requirements

Section 800. Insurance Requirements

i. Commercial General Liability

Applicants shall maintain general liability on an occurrence form with limits not less than $1,000,000 per occurrence and $2,000,000 aggregate for bodily injury and property damage liability. The policy shall include coverage for liabilities arising out of premises, operations, independent contractors, products, completed operations, personal and advertising injury, and liability assumed under an insured agreement. This insurance shall apply separately to each insured against which claim is made, or suit is brought subject to the Applicant's limit of liability. The policy must name the State of California and the California Department of Housing and Community Development, as well as the respective appointees, officers, agents, and employees of each, as additional insureds, but only with respect to work performed under the contract.

If available in the open market at a reasonable cost, the policy shall also include an endorsement for physical abuse and child/sexual molestation coverage. Coverage shall include actual or threatened physical abuse, mental injury, sexual molestation, negligent hiring, employment, supervision, investigation, reporting to proper authorities, and retention of any person for whom the Applicant is responsible. This insurance shall apply separately to each insured against which claim is made, or suit is brought subject to the Applicant's limit of liability. Coverage shall include the cost of defense and the cost of defense shall be provided outside the coverage limit.

If available in the open market at a reasonable cost, the policy shall also include an endorsement for assault and battery.

ii. Automobile Liability

Applicant shall maintain motor vehicle liability with limits not less than $1,000,000 combined single limit per accident. Such insurance shall cover liability arising out of a motor vehicle including owned, hired, and non- owned motor vehicles. The policy must name the “State of California and the California Department of Housing and Community Development”, as well as the respective appointees, officers, agents, and employees of each, as additional insureds, but only with respect to work performed under the contract.

If Applicant will not have or use any commercially owned vehicles during the term of the Standard Agreement, by signing the Standard Agreement, the Applicant certifies that the Applicant and any appointees, employees, subcontractors, or servants possess valid automobile coverage in accordance with California Vehicle Code sections 16450 to 16457, 280
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inclusive. The Department reserves the right to request proof at any time.

iii. Workers’ Compensation and Employer’s Liability

Applicant shall maintain statutory worker’s compensation and employer’s liability coverage for all its employees who will be engaged in the performance of the contract. In addition, employer’s liability limits of $1,000,000 are required. By signing the Standard Agreement, Applicant acknowledges compliance with these regulations. A Waiver of Subrogation or Right to Recover endorsement in favor of the State of California and the California Department of Housing and Community Development must be attached to the certificate.

iv. Builder's Risk/Installation Floater

If there is installation or construction of property/materials on or within the facility at any time during the term of the Standard Agreement, the Applicant shall maintain in force, at its own expense, Builders Risk/Installation Floater covering the labor, materials, and equipment to be used for completion of the work performed under this contract against all risks of direct physical loss, excluding earthquake and flood, for an amount not less than the full amount of the property and/or materials being installed and/or constructed on or within the facility. The Applicant agrees as a provision of the contract to waive all rights of recovery against the state.

v. Property Insurance

The Applicant shall maintain fire, lightning and extended coverage insurance on the facility which shall be in a form of a commercial property policy, in an amount equal to one hundred percent (100%) of the then current replacement cost of the facility, excluding the replacement cost of the unimproved real property constituting the site. The extended coverage endorsement shall, as nearly as practicable, include but not be limited to loss or damage by an explosion, windstorm, riot, aircraft, vehicle damage, smoke, vandalism, and malicious mischief and such other hazards as are normally covered by such endorsement.

vi. Self-Insured

If a state, regional, or Local Public Entity is the sole Applicant, and if that entity is self-insured in whole or in part as to any of the above-described types and levels of coverage, then that entity shall provide the Department with a written acknowledgment of this fact before execution of the Standard Agreement. If, at any time after the execution of the Standard Agreement, the state, regional, or Local Public Entity abandons its self- insured status, that entity shall immediately notify the Department of this fact and shall comply with all of the terms and conditions of this Section pertaining to insurance requirements. The Department may accept 281
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evidence of self-insurance from other Eligible Applicants in its sole and absolute discretion.

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APPENDIX A: Capital Contributions to Projects*

Assisted Unit,
1:1 Match
Homekey Capital Contributions
Total Cost
Per Door *
Maximum
Homekey
Contribution
Applicant
Contribution

Up to 1 Bedroom
$140,000 $140,000 $0
$150,000 $150,000 $0
$160,000 $155,000 $5,000
$180,000 $165,000 $15,000
$200,000 $175,000 $25,000
$220,000 $185,000 $35,000
$240,000 $195,000 $45,000
$260,000 $205,000 $55,000
$280,000 $215,000 $65,000
$300,000 $225,000 $75,000
$320,000 $235,000 $85,000
$340,000 $245,000 $95,000
$350,000+ $250,000 $100,000+

Two Bedrooms
$155,000 $155,000 $0
$175,000 $175,000 $0
$195,000 $185,000 $10,000
$215,000 $195,000 $20,000
$235,000 $205,000 $30,000
$255,000 $215,000 $40,000
$275,000 $225,000 $50,000
$295,000 $235,000 $60,000
$315,000 $245,000 $70,000
$335,000 $255,000 $80,000
$355,000 $265,000 $90,000
$375,000+ $275,000 $100,000+

Three or More Bedrooms
$180,000 $180,000 $0
$190,000 $190,000 $0
$200,000 $200,000 $0
$220,000 $210,000 $10,000
$240,000 $220,000 $20,000
$260,000 $230,000 $30,000
$280,000 $240,000 $40,000
$300,000 $250,000 $50,000
$320,000 $260,000 $60,000
$340,000 $270,000 $70,000
$360,000 $280,000 $80,000
$380,000 $290,000 $90,000
$400,000+ $300,000 $100,000+
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Assisted Unit,
1:1 Match
Homekey Capital Contributions
Total Cost
Per Door *
Maximum
Homekey
Contribution
Applicant
Contribution

Experiencing Chronic
Homelessness
$180,000 $180,000 $0
$190,000 $190,000 $0
$200,000 $200,000 $0
$220,000 $210,000 $10,000
$240,000 $220,000 $20,000
$260,000 $230,000 $30,000
$280,000 $240,000 $40,000
$300,000 $250,000 $50,000
$320,000 $260,000 $60,000
$340,000 $270,000 $70,000
$360,000 $280,000 $80,000
$380,000 $290,000 $90,000
$400,000+ $300,000 $100,000+

Homeless Youth or Youth At
Risk of Homelessness
$155,000 $155,000 $0
$175,000 $175,000 $0
$195,000 $185,000 $10,000
$215,000 $195,000 $20,000
$235,000 $205,000 $30,000
$255,000 $215,000 $40,000
$275,000 $225,000 $50,000
$295,000 $235,000 $60,000
$315,000 $245,000 $70,000
$335,000 $255,000 $80,000
$355,000 $265,000 $90,000
$375,000+ $275,000 $100,000+

* The total cost per door referenced in the table above includes all eligible capital expenses, including acquisition, Rehabilitation, and new construction costs. 284

AUTHORIZING RESOLUTION
RESOLUTION NO. 23-__

A RESOLUTION OF THE GOVERNING BODY OF CITY OF VISALIA AUTHORIZING

JOINT APPLICATION TO AND PARTICIPATION IN THE HOMEKEY PROGRAM

WHEREAS:

A. The Department of Housing and Community Development (“Department”) has issued a Notice of Funding Availability, dated March 29, 2023 (“NOFA”), for the Homekey Program (“Homekey” or “Program”). The Department has issued the NOFA for Homekey grant funds pursuant to Health and Safety Code section 50675.1.3 (Assem. Bill No. 140 (2021-2022 Reg. Sess.), § 20.).

B. CITY OF VISALIA (“Co-Applicant”) desires to jointly apply for Homekey grant funds with RHCB DEVELOPMENT, LP (“Corporation”). Therefore, Co- Applicant is joining Corporation in the submittal of an application for Homekey funds (“Application”) to the Department for review and consideration.

C. The Department is authorized to administer Homekey pursuant to the Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675) of Part 2 of Division 31 of the Health and Safety Code). Homekey funding allocations are subject to the terms and conditions of the NOFA, the Application, the Department -approved STD 213, Standard Agreement (“Standard Agreement ”), and all other legal requirements of th e Homekey Program.

THEREFORE, IT IS RESOLVED THAT:

1. Co-Applicant is hereby authorized and directed to submit a joint Application to the Department in response to the NOFA, and to jointly apply for Homekey grant funds in a total amount not to exceed $15,000,000.

2. If the Application is approved, Co-Applicant is hereby authorized and directed to enter into, execute, and deliver a Standard Agreement in a total amount not to exceed $15,000,000, any and all other documents required or deemed necessary or appropriate to secure the Homekey funds from the Department and to participate in the Homekey Program, and all amendments thereto (collectively, the “Homekey Documents”).

3. Co-Applicant acknowledges and agrees that it shall be subject to the terms and conditions specified in the Standard Agreement, and that the NOFA and Application will be incorporated in the Standard Agreement by reference and made a part thereof. Any and all a ctivities, expenditures, information, and timelines represented in the Application are enforceable through the Standard Agreement. Funds are to be used for the allowable expenditures and activities identified in the Standard Agreement.

4. City Manager, or his or her designee , is authorized to execute the 285
Application and the Homekey Documents on behalf of Co-Applicant for participation in the Homekey Program.

PASSED AND ADOPTED this 17th day of April, 2023, by the following vote:

AYES: ___ NAYES: ___ ABSTAIN: ___ ABSENT: ____

The undersigned, Leslie Caviglia, City Manager of Co-Applicant, does hereby attest and certify that the foregoing is a true and full copy of a resolution of the governing body adopted at a duly convened meeting on the date above-mentioned, and that the resolution has not been altered, amended, or repealed.

SIGNATURE: ________________________ DATE: _____________________

NAME: _____________________________ TITLE: _____________________

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Cover/Summary
287
April 20, 2022
City of Visalia – Purchasing Division
707 W. Acequia Avenue
Visalia, CA 93291
Property: RFP 21-22-28
Dear Review Committee:

RH Community Builders (RHCB) is pleased to submit this proposal for the Development of Permanent Affordable Rental Housing for Qualifying Populations in response to the City of Visalia’s Request for Proposal No. 21 -22-28. The Majestic, located at 4545 W. Noble in Visalia, will be a 42 -unit integrated supportive housing development for people experiencing homelessness.

RH Community Builders is committed to providing high quality, affordable housing coupled with robust wrap- around services designed to meet the needs of the most vulnerable in the community. Recent projects include Sequoia Village, a 50-unit motel conversion on Mooney Boulevard in Visalia and Crossroads Village, a 143-unit motel conversion in Fresno. Onsite supportive services, focused on housing tenancy and stabilization, are available at all properties and ensure that residents have the support they need to increase self-reliance.

The following individuals are authorized to negotiate on behalf of RH Community Builders:

Wayne Rutledge, CEO
352 W. Bedford Ave, Ste 110
Fresno, CA 93711
[email protected]
(559) 213-7373
As an industry leader with significant expertise in development, property management, and client -centered services, RHCB is confident that we can provide exceptional housing and services to some of the most vulnerable Visalians.

Respectfully,
Wayne Rutledge
CEO
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Contents
Cover/Summary ..................................................................................................................................... 1 Experience & Qualifications of the Organization .................................................................................. 4 Experience & Qualifications of Personnel ........................................................................................... 45 Project Approach .................................................................................................................................. 61 Proposed Location ................................................................................................................................ 70 Exceptions ............................................................................................................................................. 71 Additional Information ........................................................................................................................ 72 Forms .................................................................................................................................................... 73 Section E Information ........................................................................................................................... 86 City of Visalia, RFP No. 21-22-28
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Experience & Qualifications of the Organization

1. Organization Information

RH Community Builders
2550 W. Clinton Avenue, Suite 142
Fresno, CA 93705
Phone: (559) 492-1393
Fax: (559) 223-2898
[email protected]

2. Main Contact

Machael Smith, Community Development Director
(559) 515-3467
[email protected]

3. Type of Organization

RH Community Builders is a limited partnership developer and service provider.

4. Summary Project Information

The Majestic, located at 4545 W. Noble in Visalia, will be a 42-unit integrated supportive housing development for people experiencing homelessness. RH Community Builders will acquire, develop, and operate The Majestic. Referrals will be made through the local Coordinated Entry System, targeting those with the highest acuity.

RH Community Builders brings extensive experience in acquiring and rehabilitating projects in the Central Valley. The Hacienda, a 280-door property, was rehabilitated and occupied within fifteen months. The campus is now home to multiple service providers and houses hundreds of people in a combination of emergency shelter, permanent supportive housing, rapid rehousing, and low-income permanent housing. RH was awarded two other Homekey projects in the inaugural funding round, which led to housing for more than 200 people experiencing or at-risk of homelessness. RH also has a proven-track record of successfully operating non-congregate shelters, including special initiatives such as Project Roomkey. Additionally, RHCB operates a number of community-based programs that serve similar populations such as TANF homeless assistance projects.

All units will be targeted to homeless individuals, and many will also be living with disabilities including mental illness, substance use issues, physical disabilities, HIV/AIDS and other chronic health conditions. Twenty-five percent (25%) of the units will be reserved for households that meet HUD’s definition of chronic homelessness. The project will feature a community space with adjacent offices that will be used for onsite services.

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The Majestic will undergo significant rehabilitation to convert all units to meet Housing Quality Standards. Fire, life, and safety items such as fire sprinklers and accessibility will be addressed. Units will be completely renovated with a new configuration to accommodate a kitchenette. Each of the units will have new flooring, paint, blinds, doors, cabinets, and other repairs/replacements as needed. Exterior improvements will include items such as paint, concrete, fencing, stair rails, signage, lighting, trash enclosure, gutters, asphalt, landscaping, and a security system.

The project will begin predevelopment activities upon announcement of award, anticipated to be summer 2022. Construction will begin Q1 2023 and will be ready for occupancy by Q1 2024. RHCB’s leadership team will oversee all compliance with state and local agencies to ensure that the units are providing high-quality housing to the identified target population and that all services are accessible to residents.

Project Eligibility Information

The Majestic is an eligible project for HOME-ARP funds under HUD notice CPD-21-10, HOME-ARP Rental Housing:

HOME-ARP funds may be used to acquire, rehabilitate, or construct affordable rental housing primarily for occupancy by households of individuals and families that meet the definition of one or more of the qualifying populations described in Section IV.A of this Notice (“qualifying households”).

Unlike the regular HOME Program, which targets HOME-assisted rental units based on tenant income, 70 percent of all HOME-ARP units will admit households based only upon their status as qualifying households. This complicates the underwriting and operation of projects that include HOME-ARP units. As a result, the requirements for HOME-ARP rental housing provide significant flexibilities to enable HOME-ARP rental projects to remain 21 financially viable and affordable for the qualifying populations throughout the minimum compliance period. Eligible HOME-ARP rental housing includes “housing” as defined at 24 CFR 92.2, including but not limited to manufactured housing, single room occupancy (SRO) units, and permanent supportive housing. Emergency shelters, hotels, and motels (including those currently operating as non-congregate shelter), facilities such as nursing homes, residential treatment facilities, correctional facilities, halfway houses, and housing for students or dormitories do not constitute housing in the HOME-ARP program. However, HOME-ARP funds may be used to acquire and rehabilitate such structures into HOME-ARP rental housing.

The Majestic is an eligible project for Successor Agency (SA) Housing funds under §34176.1(2) of the California Health and Safety code:

(2) Notwithstanding Section 33334.2, if the housing successor has fulfilled all obligations pursuant to Sections 33413 and 33418, the housing successor may expend up to two hundred fifty thousand dollars ($250,000) per fiscal year for homeless prevention and rapid rehousing services for individuals and families who are homeless or would be homeless but for this assistance, including the provision of short-term or medium-term rental assistance, contributions toward the construction of local or regional homeless shelters, housing relocation and stabilization services including housing search, mediation, or outreach to property owners, credit repair, security or utility deposits, utility payments, rental assistance for a final month at a location, moving cost assistance, and case management, or other appropriate activities for homelessness prevention and rapid rehousing of persons who have become homeless.

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(3) (A) The housing successor shall expend all funds remaining in the Low and Moderate Income Housing Asset Fund after the expenditures allowed pursuant to paragraphs (1) and (2) for the development of housing affordable to and occupied by households earning 80 percent or less of the area median income, with at least 30 percent of these remaining funds expended for the development of rental housing affordable to and occupied by households earning 30 percent or less of the area median income and no more than 20 percent of these remaining funds expended for the development of housing affordable to and occupied by households earning between 60 percent and 80 percent of the area median income. A housing successor shall demonstrate in the annual report described in subdivision (f), for 2019, and every five years thereafter, that the housing successor’s expenditures from January 1, 2014, through the end of the latest fiscal year covered in the report comply with the requirements of this subparagraph.

Additional Required Documents

1. CoC Membership
RH Community Builders is a current member of the Kings Tulare Homeless Alliance.

2. Business License
RH Community Builders will obtain a business license upon commencement of business in Visalia.

Please note that our Sequoia Village project is owned by a single purpose LP which has a valid City of Visalia business license.

3. Tax Identification Number
EIN #84-2737051 (attached)

4. Articles of Incorporation
RH Community Builders is a limited partnership and is not subject to Articles of Incorporation or Bylaws. Attached is the Secretary of State Certificate of Limited Partnership and Limited Partnership Agreement.

5. 501c3 Non-profit Status
Not applicable, RH Community Builders is a developer and not a non-profit organization.

6. State and Federal Tax Exemption Determination Letters Not applicable, RH Community Builders is a developer and not a non-profit organization.

7. DUNS and/or UEI
UEI #TL76CEX1M3C5

8. Board of Directors
Not applicable, RH Community Builders is not a corporation and, as such, does not have a board of directors.

9. Authorization to Request Funds
Resolution attached.

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10. Designation of Authorized Official(s)
Wayne Rutledge and Brad Hardie authorized to negotiate and/or execute agreements on behalf of RH Community Builders pursuant to the resolution dated April 20, 2022.

11. Organizational Chart
Organizational chart attached herein.

12. Resumes of CEO, CFO, and Project Manager(s)
Resumes attached herein.

13. Organizational Mission Statement
RH Community Builders is focused on building a multi-faceted approach to ending homelessness in the Central Valley. By assisting community members in accessing needed services and increasing the inventory of affordable housing, RHCB is ending homelessness, one family at a time.

14. Current Insurance Coverages
Certificate of insurance attached herein.

15. Financial Statements and Current Audit
RH Community Builder’s first audit is underway and should be complete by the fall of 2022. Once completed, financial statements and audit will be available upon request.

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AUTHORIZING RESOLUTION
RESOLUTION NO. 2022-1

A RESOLUTION OF THE PARTNERS OF RH COMMUNITY BUILDERS LP AUTHORIZING APPLICATION TO CITY OF VISALIA RFP NO. 21-22-28

WHEREAS:

A. The City of Visalia (“City”) has issued a Request for Proposal, dated February 22, 2022 (“RFP”), for the Development of Permanent Affordable Rental Housing for Qualifying Populations (“Program”).

B. RH Community Builders LP, a California limited partnership (“Applicant”), desires to apply for the Program through RFP No. 21-22-28.

THEREFORE, IT IS RESOLVED THAT:

1. Applicant is hereby authorized and directed to submit an application to the City in response to the RFP in a total amount not to exceed $5,000,000.

2. If the a pplication is approved, Applicant is hereby authorized and directed to enter into, execute, and deliver an agreement in a total amount not to exceed $5 ,000,000, any and all other documents required or deemed necessary or appropriate to secure the Program funds from the City.

3. Wayne Rutledge, CEO of RH Community Builders LP, is authorized to execute the application and any Program documents on behalf of Applicant for participation in the Program.

PASSED AND ADOPTED this 20
th day of April, 2022, by the following vote of the Partners:

AYES: [ 3_] NAYES: [ 0_] ABSTAIN: [ 0_] ABSENT: [ 0_]

The undersigned, Wayne Rutledge, Manager of General Partner, does hereby attest and certify that the foregoing is a true and full copy of a resolution of the Partnership’s governing body adopted at a duly convened meeting on the date above-mentioned, and that the resolution has not been altered, amended, or repealed.

RH Community Builders LP,
a California limited Partnership

By: WRBH, LLC,
a California limited liability company
Its: General Partner

By: ___________________________
Wayne Rutledge, Manager

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Brad Hardie
Role: President
Katie Wilbur
Role: Executive Director
Ana Cisneros
Role: Director
Preet Grewal
Role: Program Manager
The Lodge
Naomi Soriano
Role: Community Manager
Crossroads Village
Apartments
Angela Corona
Role: Program Manager
Landlord
Engagement
Abbie Velasco
Role: Housing Director
Mandi Johal
Role: Program Manager
ERAP
Daisy Zamora, ASW
Role: ECM Program
Director
David Bethea
Role: Program Manager
Crossroads Village
RRH
Heather Ferrante
Role: Bookkeeping
Manager
Jessica Fain
Role: Financial Analyst
Bernardo Canal
Role: Financial Analyst
Tiffany Lanni
Role: Executive Assistant
Nicole Harp
Role: Operations
Coordinator
Delores Baker
Role: Property Supervisor
Master Lease
Monica Sanchez
Role: Assistant Manager
The Flats
Wayne Rutledge
Role: CEO
Machael Smith
Role: Community
Development
Director
Julian Estrada
Role: Project Coordinator
RH Community Builders
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Wayne Rutledge
352 W. Bedford Ave #110 Fresno, CA 93711
(559)213-7373
[email protected]

ELEVATE COMMUNITY SERVICES - FRESNO, CA
Chief Executive Officer

● Provide executive leadership to limited partnership conducting social services and development
● Oversee development and new business procurement
● Support team in unit acquisition
● Manage corporate financial performance
● Oversee property management services for more than 750 units

2021-Present

RH COMMUNITY BUILDERS- FRESNO, CA
Chief Executive Officer

2019-Present

UNCLE HARRY’S NEW YORK BAGELRY- FRESNO, CA
Owner

● Own and operate four restaurants
● Grew business from 5 employees to more than 70 employees ● 2019 recipient of Fresno Bee’s People’s Choice Award: Food and Drink

1995-Present

COMMUNITY INVOLVEMENT

● General Plan Development Committee Member
● City of Fresno Rental Inspection Task Force Member
● City of Fresno Code Enforcement Task Force- Operation “No More Boards” ● Donated funding to operated 77 bed winter warning shelter in 2019-2020

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Brad Hardie
331 West Shields Ave Fresno, CA 93705
(559) 433-7613
[email protected]

ELEVATE COMMUNITY SERVICES - FRESNO, CA
President

● Executive management of limited partnership providing social services and development in the Central Valley
● Pursue development of new programs and operations
● Oversee financial operations and budget management
● Support housing teams in fair housing compliance, unit acquisitions, and daily property management operations

2021-Present

RH COMMUNITY BUILDERS-FRESNO, CA
President

2019-Present

REGENCY PROPERTY MANAGEMENT - FRESNO, CA
Owner and President

● Grew company from 3 employees managing 80 single family homes to 100+ employees managing 7,700+ units and 30+ Home Owner Associations ● Management of 20+ 100-unit Apartment Complexes
● Management of 1,000+ Section 8, Tax Credit, HUD, and low-income Units

2004-Present

RP CONSTRUCTION - FRESNO, CA
President

● Leading construction and maintenance firm for multiple property management companies in the Fresno area.
● Reputation for high quality, affordable maintenance and repair 2011-Present

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COMMUNITY INVOLVEMENT

● City of Fresno Planning Commissioner
● Fresno Chafee Zoo & Storyland Board Member
● Lowell-Yokomi Landlord Association Founding Member
● Lowell Community Development Corporation
● City of Fresno Rental Inspection Task Force Member
● City of Fresno Code Enforcement Task Force- Operation “No More Boards” ● Donated funding to operated 77 bed winter warning shelter in 2019-2020

Professional Affiliations & Notable Recognition

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Kathryn Wilbur, LCSW 74612
2550 W. Clinton Ave #142 Fresno, CA 93705
(585) 314-3914
[email protected]

EDUCATION

CAPELLA UNIVERSITY
Master of Business Administration

January 2021

UNIVERSITY OF SOUTHERN CALIFORNIA
Master of Social Work
Concentration: Community, Organization, Planning, and Administration

May 2014

CALIFORNIA STATE UNIVERSITY, FRESNO
Bachelor of Art in Social Work
Magna Cum Laude, Phi Kappa Phi Honor Society

May 2013

TRAINING/CERTIFICATIONS
Licensed Clinical Social Worker – LCSW 74612
Motivational Interviewing
TF-CBT
Pro-ACT Trainer

2016
2014
2015
2019

ELEVATE COMMUNITY SERVICES
Executive Director
● Pursue development opportunity in affordable housing and homeless services
● Create and manage budgets for operations and new program development ● Develop new business opportunities with County and State entities. ● Actively participate in community groups including FM-CoC and City of Fresno HCDC

2021- Present

RH COMMUNITY BUILDERS
Executive Director
● Manage daily operations of 100-person organization providing a variety of homeless and housing services in the Fresno area.
● Create and manage budgets for operations and new program development ● Develop new business opportunities with County and State entities. ● Actively participate in community groups including FM-CoC and City of Fresno HCDC

September 2019-
Present

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MENTAL HEALTH SYSTEMS, INC.

Vice President – Clinical Services, Central Valley Region ● Responsible for the oversight of MHS programs in the Central Valley and Northern California Region of California, including review of staff management, leadership and supervision, financial matters, administrative activities, record keeping, safety, and compliance with County and other funder’s contract requirements.
● Build and maintain relationships with multiple Counties and funders. ● Develop new business by serving as a subject matter expert on contract proposals, including four successfully awarded proposals in fiscal year 18-

19. ● Overall responsibility for program operation, staffing and successful achievement of contracted outcome/performance measures. ● Implements and monitors approved policies and procedures, ensure the highest quality of services and contract compliance.
● Ensures adherence to program budget and reviews monthly operating statements to ensure program integrity.

March 2018-
August 2019

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Machael Smith
2550 W. Clinton Ave #142 Fresno, CA 93705
(559) 515-3467
[email protected]

RH COMMUNITY BUILDERS- FRESNO, CA
Community Development Director

● Oversee development and new business procurement
● Grant management
● Serve as community liaison
● Compliance oversight

2021-Present

KINGS/TULARE HOMELESS ALLIANCE- VISALIA, CA
Executive Director

● Responsible for agency leadership and strategic vision ● Managed a portfolio of over 40 active grants
● Established organizational and regional priorities
● Worked with funders and jurisdictional leaders on strategic initiatives ● Oversaw all financial activities

2007-2021

WOODSIDE HOMES - FRESNO, CA
Escrow Manager/Broker

● Closely involved with the establishment of the Fresno Division ● Rolled out 9 new communities in a 12-month period
● Recruited, hired, trained the sales team
● Served as broker on all sales transactions
● Responsible for achieving sales/closing goals, including 350 closings in 2006
● Managed sales and marketing budgets

2005-2007

MCCAFFREY GROUP - FRESNO, CA
Vice President of Sales

● Developed and executed marketing strategies
● Reviewed and audited sales transactions
● Implemented web-based software for sales division
● Developed policies and procedures for sales, construction, customer service

2002-2005
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ANY PROPRIETOR/PARTNER/EXECUTIVE
OFFICER/MEMBER EXCLUDED?

INSR ADDL SUBR

LTR INSD WVD

PRODUCER CONTACT
NAME:

FAXPHONE
(A/C, No):(A/C, No, Ext):

E-MAIL
ADDRESS:

INSURER A :

INSURED INSURER B :

INSURER C :

INSURER D :

INSURER E :

INSURER F :

POLICY NUMBER POLICY EFF POLICY EXPTYPE OF INSURANCE LIMITS(MM/DD/YYYY) (MM/DD/YYYY)

AUTOMOBILE LIABILITY

UMBRELLA LIAB

EXCESS LIAB

WORKERS COMPENSATION

AND EMPLOYERS' LIABILITY
DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required)

AUTHORIZED REPRESENTATIVE
EACH OCCURRENCE $
DAMAGE TO RENTEDCLAIMS-MADE OCCUR $PREMISES (Ea occurrence) MED EXP (Any one person) $
PERSONAL & ADV INJURY $
GEN'L AGGREGATE LIMIT APPLIES PER: GENERAL AGGREGATE $

PRO-POLICY LOC PRODUCTS - COMP/OP AGGJECT
OTHER: $

COMBINED SINGLE LIMIT
$(Ea accident)
ANY AUTO BODILY INJURY (Per person) $

OWNED SCHEDULED
BODILY INJURY (Per accident) $AUTOS ONLY AUTOS

HIRED NON-OWNED PROPERTY DAMAGE
$AUTOS ONLY AUTOS ONLY (Per accident)
$

OCCUR EACH OCCURRENCE
CLAIMS-MADE AGGREGATE $
DED RETENTION $

PER OTH-

STATUTE ER
E.L. EACH ACCIDENT
E.L. DISEASE - EA EMPLOYEE $
If yes, describe under
E.L. DISEASE - POLICY LIMITDESCRIPTION OF OPERATIONS below INSURER(S) AFFORDING COVERAGE NAIC #

COMMERCIAL GENERAL LIABILITY
Y / N
N / A
(Mandatory in NH)

SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE

THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS.

THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS

CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.

THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS

CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER.

IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed.

If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s).

COVERAGES CERTIFICATE NUMBER: REVISION NUMBER:

CERTIFICATE HOLDER CANCELLATION
© 1988-2015 ACORD CORPORATION. All rights reserved.ACORD 25 (2016/03)

CERTIFICATE OF LIABILITY INSURANCE

DATE (MM/DD/YYYY)
$
$
$
$
$The ACORD name and logo are registered marks of ACORD
11/16/2021
(559) 437-6648 (559) 437-6649
RH Community Builders LP
PO Box 9309
Fresno, CA 93791-9309
Certificate holder is named as additional insured as respects to General Liability per form issued by the carrier, subject to policy terms and conditions. * TBD - policies will be in force at close of escrow

MNEUFELD
[email protected]
DiBuduo & DeFendis Insurance Brokers, LLC
PO Box 5479
Fresno, CA 93755-5479
License # 0E02096 Monica Neufeld
TBD
TBD
A
B
X
X

X TBD TBD TBD
1,000,000
100,000
5,000
1,000,000
2,000,000
2,000,000
X
X 0

TBD TBD TBD
5,000,000
5,000,000
Oregon Mutual 14907
C X
CMO5010920864 2/20/2021 2/20/202 2
1,000,000
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Experience & Qualifications of Personnel

The leadership team at RH Community Builders (RHCB) combines a unique skillset of development and program operations well-suited for projects such as The Majestic. RHCB is committed to serving our community and bringing high quality individuals onto our team. Staff retention is a critical component of our growth and success and we work diligently to provide a competitive, supportive environment for employees to thrive. Our Program Managers ensure that project personnel receive ongoing training, job shadowing, and growth opportunities. This strategy alleviates personnel vacuums so that projects run efficiently at all times.

The project team is committed to the project and available to respond to questions and provide support both during and after work hours. Team members include:

Wayne Rutledge
CEO
Mr. Rutledge will lead the team through the pre-development phase including site identification and acquisition. He will oversee seller negotiations, execute contracts, and fiscal aspects of the project.

Brad Hardie
President

Mr. Hardie will work with the Architect, Engineer, and General Contractor from design concept, budget development, and construction completion.

Machael Smith
Community Development
Director

Ms. Smith will manage the purchase, contracting, funding, and compliance aspects of the project from conception through receipt of the final funding for the project.

Julian Estrada
Project Coordinator

Mr. Estrada will provide project support in areas such as scheduling, third party vendors, procurement, and serving as the liaison with the general contractor’s staff.

Katie Wilbur
Executive Director
Ms. Wilbur and the operations team, will assume control of the project upon construction completion. Ms. Wilbur will oversee all aspects of operations, supportive services, compliance, and administration of the project.

RHCB does not intend to subcontract any portion of the proposed development or services requested under this RFP. As a developer, RHCB will enter into contracts for the design and construction of the project.

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Wayne Rutledge
352 W. Bedford Ave #110 Fresno, CA 93711
(559)213-7373
[email protected]

ELEVATE COMMUNITY SERVICES - FRESNO, CA
Chief Executive Officer

2021-Present

RH COMMUNITY BUILDERS- FRESNO, CA
Chief Executive Officer

2019-Present

UNCLE HARRY’S NEW YORK BAGELRY- FRESNO, CA
Owner

● Own and operate four restaurants
● Grew business from 5 employees to more than 70 employees ● 2019 recipient of Fresno Bee’s People’s Choice Award: Food and Drink

1995-Present

COMMUNITY INVOLVEMENT

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Brad Hardie
331 West Shields Ave Fresno, CA 93705
(559) 433-7613
[email protected]

ELEVATE COMMUNITY SERVICES - FRESNO, CA
President

2021-Present

RH COMMUNITY BUILDERS-FRESNO, CA
President

2019-Present

REGENCY PROPERTY MANAGEMENT - FRESNO, CA
Owner and President

2004-Present

RP CONSTRUCTION - FRESNO, CA
President

● Leading construction and maintenance firm for multiple property management companies in the Fresno area.
● Reputation for high quality, affordable maintenance and repair 2011-Present

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COMMUNITY INVOLVEMENT

Professional Affiliations & Notable Recognition

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Kathryn Wilbur, LCSW 74612
2550 W. Clinton Ave #142 Fresno, CA 93705
(585) 314-3914
[email protected]

EDUCATION

CAPELLA UNIVERSITY
Master of Business Administration

January 2021

UNIVERSITY OF SOUTHERN CALIFORNIA
Master of Social Work
Concentration: Community, Organization, Planning, and Administration

May 2014

CALIFORNIA STATE UNIVERSITY, FRESNO
Bachelor of Art in Social Work
Magna Cum Laude, Phi Kappa Phi Honor Society

May 2013

TRAINING/CERTIFICATIONS
Licensed Clinical Social Worker – LCSW 74612
Motivational Interviewing
TF-CBT
Pro-ACT Trainer

2016
2014
2015
2019

2021- Present

September 2019-
Present

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MENTAL HEALTH SYSTEMS, INC.

March 2018-
August 2019

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Machael Smith
2550 W. Clinton Ave #142 Fresno, CA 93705
(559) 515-3467
[email protected]

RH COMMUNITY BUILDERS- FRESNO, CA
Community Development Director

● Oversee development and new business procurement
● Grant management
● Serve as community liaison
● Compliance oversight

2021-Present

KINGS/TULARE HOMELESS ALLIANCE- VISALIA, CA
Executive Director

2007-2021

WOODSIDE HOMES - FRESNO, CA
Escrow Manager/Broker

2005-2007

MCCAFFREY GROUP - FRESNO, CA
Vice President of Sales

2002-2005
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RHCB has a robust project portfolio including:

Project: The Hacienda Status: Completed
Funding: Private
Description: The Hacienda, is a master leasing model with local service providers. In just under 12 months, more than 133,000 square feet, comprising more than 250 rooms underwent extensive renovations and rehabilitation. The property is now home to a full continuum of services including low-barrier shelter, rapid re-housing, permanent supportive housing, residential substance abuse and outpatient substance abuse treatment.

Project: Sequoia Village PH I Status: Completed
Funding: Homekey, Philanthropic, ESG-CV
Description: Fire, life, safety renovations w/in 90 days for a 50-unit non-congregate shelter.

Project: Crossroads Village PH I Status: Completed
Funding: Homekey, Philanthropic, ARPA
Description: Fire, life, safety renovations w/in 90 days for a 165-unit permanent housing project.

Project: Sequoia Village PH II Status: Construction underway Funding: HHAP, CDBG, HOME
Description: Phase II construction includes a full renovation to 50 studio apartments.

Project: Crossroads Village PH II Status: Construction scheduled for Jan 2023 Funding: NPLH, HHC (pending), Accelerator (pending)
Description: Phase II construction includes a full renovation to 143 1, 2, and 3-bedroom apartments.

Project: The Dakota Status: Financing underway
Funding: CDBG, IIG, VHHP (pending)
Description: Site demolition and new construction of 99 units designated for seniors and veterans. Ground level will serve as a community center or other public use.

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Project: Madson Gardens Status: Construction scheduled for summer 2022
Funding: Homekey, ARPA, HHAP
Description: A 56-unit motel conversion to studio apartments.

Project: TwelveThirteen Status: Construction scheduled for summer 2022
Funding: Homekey, ARPA, HOME, Philanthropic
Description: A 96-unit motel conversion to studio apartments. Phase I will be fire, life, safety improvements for entire project. 68 units will undergo full renovation, remaining units will be rehabbed to meet housing quality standards.

The RH Community Builders Executive Management Team currently oversees the operations and services of the following projects:

Program: The Hacienda Date: 2019-Present
Agency: Multiple
Description: The Hacienda is a full continuum of care options for individuals and households in the Fresno Community. The Hacienda offers a variety of services including residential and outpatient substance abuse treatment, low-barrier shelter, bridge house, rapid re- housing, permanent supportive housing, outpatient mental health services, and an onsite pharmacy.

Program: Landlord Engagement &
Mitigation
Date: 2019-Present
Agency: Fresno County Department of Social Services
Description: Landlord Engagement & Mitigation provides services to the most difficult to house clients. Clients who are searching for housing in the CES system are referred to the program and matched with landlords that have committed to working with the program. The program engages landlords who typically do not rent to tenants with troubled rental history and offers a mitigation fund guarantee for agreeing to rent to referred clients. The program provides case management services to clients once they are in housing to assist the clients with learning how to be good tenants and maintain their housing stability once in housing.

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Program: COVID Emergency Shelter Date: March 2020-Present Agency: Fresno County Department of Social Services
Description: RH Community Builders provided 285 emergency shelter beds to homeless individuals and families during the COVID pandemic. The program opened within 5 days of the pandemic beginning. The program provides for all basic needs of the clients including 3 meals per day, housing navigation services to all clients. The programs operate within low-barrier standards and a Housing First model. With the opening of additional resources in the community, the shelter has reduced to 65 beds focused on shared housing exits.

Program: Sequoia Case Management Date: 2020-Present
Agency: Tulare County Health and Human Services
Description: RH Community Builders provides onsite case management to 50 individuals and families living at the Sequoia Village Apartments. Services include stability development focused on increasing income, collecting needed documents, linkage to mental health or substance abuse treatment, and education on remaining housed.

Program: The Flats Date: July 2020-Present
Agency: Fresno County Department of Social Services
Description: The Flats is a motel service that exclusively provides stays for individuals and families eligible for the Homeless Assistance Unit motel vouchers. Clients receive their 16 nights of annual motel stay at a safe, clean location, The Flats. While at The Flats, clients are able to receive housing navigation services in addition to traditional motel amenities such as breakfast and housekeeping.

Program: Fresno New Starts Date: July 2020-Present
Agency: Fresno County Department of Behavioral Health
Description: Fresno New Starts is a master leasing program for 68 individual or family units who are living with serious mental illness and are homeless or at risk of homelessness. The program provides full-service property management including unit identification, unit maintenance, rent collection, and 24/7 emergency response. The program also provides supportive services focused on housing stability and assistance in permanent housing location for clients who receive vouchers such as Section 8 Housing Choice Vouchers.

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Program: The Lodge Date: July 2020-Present
Agency: Fresno County Department of Behavioral Health
Description: A MHSA innovation program focused on engaging homeless, disengaged individuals.

The Lodge, which is driven by peer support specialists, engages individuals through a Housing First model to link clients to a long-term treatment program for mental health or substance abuse disorders. The Lodge provides 45 day stays for up to 30 individuals with services that include mental health assessments, group and individual therapy, case management, and collateral support to families.

Program: Crossroads Rapid
Rehousing
Date: 2020-Present
Agency: Fresno County Department of Social Services
Description: The program provides site-based rapid rehousing for 123 individuals and family units.

The program is limited to 12 months of financial support and provides intensive case management services from the time of entry into the program to assist clients with preparing for exit and unsubsidized permanent stability.

Program: Crossroads Village
Apartments
Date: 2020-Present
Agency: Private
Description: RH Community Builders provides full-service property management for the 165-unit Crossroads Village Apartment Complex located in Fresno, CA. All units are leased to tenants who are at risk of homelessness or exiting homelessness. Services include compliance monitoring of tenant’s eligibility, leasing, rent collection, 24/7 maintenance needs, and facilitation of community wide activities.

Program: Sequoia Village Apartments Date: 2020-Present
Agency: Private
Description: RH Community Builders provides full-service property management for the 50-unit Sequoia Village Apartment Complex located in Visalia, CA. All units are leased to tenants who are at risk of homelessness or exiting homelessness. Services include compliance monitoring of tenant’s eligibility, leasing, rent collection, and 24/7 maintenance needs.

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Program: The Sands Triage Center Date: March 2021-September 2021 Agency: The City of Fresno
Description: The Sands Triage Center was a low-barrier shelter providing shelter and navigation services to 80 individuals. The Sands Triage Center is specifically targeted at individuals and encamped on the highways around The City of Fresno. STC provides meals, navigation, laundry, and linkage to additional services. The program operated within low-barrier standards and a Housing First model. The program was intended to meet a short-term community need while additional shelters were permanently created.

Program: ERAP Date: April 2021-Present
Agency: County of Fresno
Description: The Emergency Rental Assistance Program (ERAP) provides emergency rental assistance to households that have suffered a financial hardship due to COVID-19.

Eligible households may receive up to 12 months of assistance with an additional three months if it is determined the extra months are needed to ensure housing stability.

Letters of support for The Majestic include Tulare County Health and Human Services Agency, Kings/Tulare Homeless Alliance, Kaweah Delta Hospital, and Christ Lutheran Church are attached herein.

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April 19, 2022

Members of the City Council
City of Visalia
707 W. Acequia Avenue
Visalia, CA 93291

RE: RFP-21-22-28
Letter of Support for RH Community Builders

Dear Members of the Visalia City Council,

This letter is to signify the support of the Kings/Tulare Homeless Alliance (‘Alliance’) for RH Community Builders (‘RHCB’) and the Majestic (the ‘Project’) in the City of Visalia. The Project is well-suited to meet the housing needs of people experiencing homelessness in Visalia and we are excited to partner in its development and operation.

The mission of the Alliance is to coordinate and leverage resources to address homelessness in Kings and Tulare counties. As part of that effort, we run the local coordinated entry system to assess and prioritize the needs of those experiencing homelessness. We have partnered with RHCB on their interim housing project, Sequoia Village. Phase I of Sequoia Village provided low-barrier shelter for people experiencing homelessness during the COVID-19 pandemic and, now in Phase II, is undergoing a full conversion to 50 permanent housing units. RHCB has a proven record of developing high-quality housing opportunities for individuals experiencing homelessness and we desperately need additional permanent housing units in Visalia.

The Alliance fully supports RHCB’s application and its efforts to increase permanent housing units for people experiencing homelessness in the community. Should you wish to discuss, feel free to contact me at [email protected] or (559) 738-8733.

Sincerely,

Miguel Perez
Executive Director

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Project Approach

Affordable Rental Housing Development

The Majestic is located at 4545 W. Noble in Visalia and is comprised of 42 units, including a 2-bedroom, 2- bathroom manager’s unit. The property is ideally situated with convenient access to public transportation, grocery stores, and College of the Sequoias. Transit stops closest to the project include Noble, West of Chinowth (.2 mi), Mineral King & Chinowth (.4 mi), and Nobile & Linwood (.4 mi). The closest grocery store, Save Mart, is located within walking distance or a short bus ride from the project (.6 mi).

Figure 1. Transit Locations

Figure 2. Grocery Stores

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The Majestic property consists of a lobby with a connected manager’s unit, two 2-story buildings, a commercial space containing two restaurants, a swimming pool, and ample onsite parking. In 2017, The Majestic added iron railing on the second story buildings, updated electrical throughout, new HVACs in each unit, and resealed the parking lot.

The lobby will be converted into a community space and case management offices. Onsite services will include housing sustaining supports, life skills building, and tenant events to create a sense of community among residents.

Figure 3. Aerial Photo of Existing Property

Figure 4. Conceptual Design

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Figure 5. Conceptual Unit Design

Timeline

RH Community Builders (RHCB) has identified the following dates and milestones for the rehabilitation of The Majestic conversion to permanent supportive housing. Brad Hardie, RHCB president, will oversee the construction and development progress of the project. A construction and draw schedule will be included in the General Contractor’s AIA contract, along with a liquidated damages clause, to ensure that funds are spent in a timely manner and that the project is completed on time.

June 2022 – Site Control. A Purchase and Sale Agreement is made between RHCB and the owners of The Majestic.

July 2022 – Site Visit: Architect and General Contractor. The architect and general contractor revisited the site to develop a rehabilitation plan for the project.

October 2022 – Plans submitted to the City and sent out for bids.

November 2022 – Homekey Program Award Announcement.

December 2022 – Standard Agreement Issued. Per the HCD Homekey webpage, Standard Agreements will be issued after the Department’s receipt of required information and documentation.

December 2022 – RHCB acquires the property.

January 2023 - Rehabilitation commences. The developer will issue the General Contractor a notice to proceed to begin construction.

Q3 2023 – Coordination with CES. The Coordinated Entry System will be notified approximately 45 days prior to construction completion so that referrals can be sent to RHCB.

Q4 2023 – Rehabilitation Complete.

Potential unit layouts include a wardrobe closet,
tub/shower combo, galley kitchen, and built in table that also serves as an island.

Each unit will be fully rehabbed to meet Housing Quality Standards. Doors, flooring, cabinets, appliances will all be replaced. Windows and HVAC will be replaced as
needed. All units will have new paint, locks, and
furnishings.

At minimum furnishings will include a bed, nightstand,
and chair(s).

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Q4 2023 - Full Occupancy achieved. Because we are using the Coordinated Entry System, identified clients will be ready to occupy immediately upon completion of the project.

Project Operation

Project Specific Requirements

The Majestic is designated to serve households who have experienced homelessness or at risk of homelessness as defined in Part 578.3 of Title 24 of the Code of Federal Regulations.

Enterprise Income Verification (EIV)

This property will utilize the Existing Tenant Search Report available on the Enterprise Income Verification System (EIV) as part of the application/screening process prior to admission. This report will be utilized to determine if an applicant or any member of the applicant household (including minor children) are currently receiving HUD subsidy at another HUD Multifamily or Public or Indian Housing property. All applicants MUST disclose if they are currently receiving HUD housing assistance. The owner/agent will not knowingly assist applicants who will maintain a residence in addition to the HUD assisted unit or who attempt to receive HUD assistance in two separate residences.

Nothing prohibits a HUD housing assistance recipient from applying to this property. However, the applicant must move out of the current property and/or forfeit any voucher before HUD assistance on this property will begin. The report gives the owner/agent the ability to coordinate move-out and move-in dates with the property at the other location. Special consideration applies to minor children where both parents share custody.

Failure to terminate HUD assistance at the other property may result in the applicant paying a non-subsidized rent at our property until subsidy is terminated at the other property. If the applicant or any member of the applicant household fails to fully and accurately disclose rental history, the application may be denied based on the applicant's “misrepresentation” of information.

Income Limits

In order for an application to be eligible for occupancy, the applicant’s total family annual income must not exceed the applicable income limit, established yearly by HUD. Income limits are available at the management office or from HUD’s website at www.hududers.org.

Income limits are based on the median income for a metropolitan statistical area as follows:

Income Limit Median Income for Area
Low-income limit 80% of median income
Very low-come limit 50% of median income
Extremely low-income limit 30% of median income
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RH Community Builders is required to ensure that 100% of units are leased to households whose incomes are extremely low income.

Applicant Screening Criteria

All applicants will be screened in accordance with HUD regulations and management policies and procedures.

Such screening will entail the receipt and review of credit reports, landlord reports, criminal background reports (to the extent allowable under federal, state, or local laws), and the EIV Existing Tenant Search.

Applicant screening will consist of the following:

1) Credit reports - only as it relates to timely payments of rent and utilities and any history of evictions; fraud (credit activity for five years prior to date of application).

2) Landlord reports - history of disruptive behavior; poor housekeeping habits; late and/or missed rent payments; lease violations; violation of house rules (current and past two landlords).
3) Home Inspection, at their current location, may be conducted for all program applicants for determination of housekeeping standards.
4) Criminal Background Records - standards that prohibit admission are:
a) Normally any household containing a member(s) who was evicted in the last three years from federally assisted housing for drug-related criminal activity, unless: the evicted household member has successfully completed an approved, supervised drug rehabilitation program; or, the circumstances leading to the eviction no longer exists (member no longer resides with the applicant household).

b) A household in which any member is currently engaged in illegal use of drugs or for which the owner has reasonable cause to believe that a member’s illegal use or pattern of illegal use of a drug may interfere with the health, safety, and right to peaceful enjoyment of the property by other residents. However, the owner may consider and require evidence of whether a member currently or previously engaged in drug related activity is participating in or has successfully completed an approved, supervised drug rehabilitation program.

c) Any household member who is subject to a state sex offender lifetime registration requirement. This information will be verified by searching the Dru Sjodin National Sex Offender Database (www.nsopw.gov).

d) Any household member if there is reasonable cause to believe that member's behavior, from abuse or pattern of abuse of alcohol, may interfere with the health, safety, and right to peaceful enjoyment by other residents. The screening standards must be based on behavior, not the condition of alcoholism or alcohol abuse.

e) Any household member convicted of manufacture or production of methamphetamine on the premises of any federally assisted housing.

f) Convictions for the following felony crimes:

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i. for a period of one year from completion of sentencing: drug-related criminal activity;
ii. for a period of two years from the completion of sentencing: Aggravated Murder, Felonious Assault, Child Abuse, Abduction, Criminal Child Enticement, Gross Sexual Imposition, Unlawful Sexual Conduct with Minor, Domestic and Dating Violence, Murder, Aggravated Assault, Kidnapping, Rape, Sexual Battery, Aggravated Arson, Endangering children, and Stalking. However, applicants may address and present mitigating circumstances regarding criminal convictions prior to admissions decisions

Annual Recertification Requirements

To ensure that assisted tenants pay rents commensurate with their ability to pay, HUD requires the following:

1) Owners must conduct a recertification of family income and composition at least annually.

Owners must then recompute the tenants’ rents and assistance payments, if applicable, based on the information gathered.
2) Tenants must supply information requested by the owner or HUD for use in a regularly scheduled recertification of family income and composition in accordance with HUD requirements.
3) Tenants must sign consent forms and asset declaration forms

Annual recertifications must be completed by the tenant’s recertification date.

1) Initial Notice- will be provided at the time of lease signing and each annual recertification. 2) First Reminder- will be provided at least 120 days prior to recertification anniversary date 3) Second Reminder- will be provided if the tenant fails to respond within 30 days to the First Reminder and approximately 90 days prior to the recertification date. 4) Third Reminder- will be provided if the tenant fails to respond to the Second Reminder and no less than 60 days prior to the recertification date.

Interim Recertification Requirements

To ensure that assisted tenants pay rents commensurate with their ability to pay, tenants must supply information requested by the owner or HUD for use in an interim recertification of family income and composition in accordance with HUD requirements.

All tenants must notify the owner when:

1) A family member moves out of the unit;
2) The family proposes to move a new member into the unit; NOTE: At a minimum, owners must apply screening criteria for drug abuse and other criminal activity, *including State sex offender registration, and use of the EIV Existing Tenant Search to persons proposed to be City of Visalia, RFP No. 21-22-28
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added to the household, including live-in aides. The owner must make sure that the person also discloses and provides verification of his or her SSN. 3) An adult member of the family who was reported as unemployed on the most recent certification or recertification obtains employment; or 4) The family’s income cumulatively increases by $200 or more per month.

Tenants may request an interim recertification due to any changes occurring since the last recertification that may affect the TTP or tenant rent and assistance payment for the tenant. Changes a tenant may report include the following:

1) Decreases in income including, but not limited to, loss of employment, reduction in number of hours worked by an employed family member, and loss or reduction of welfare income; 2) Increases in allowances including, but not limited to, increased medical expenses, and higher child care costs; and
3) Other changes affecting the calculation of a family’s annual or adjusted income include, but *are* not limited to a family member turning 62 years old, becoming a full-time student or, becoming a person with a disability.

If the tenant complies with the interim reporting requirements, rent changes must be implemented as follows:
1) Rent increases. If the tenant’s rent increases because of an interim adjustment, the owner must give the tenant 30 days advance notice of the increase. The effective date of the increase will be the first of the month commencing after the end of the 30-day period. 2) Rent decreases. If the tenant’s rent will decrease, the change in rent is effective on the first day of the month after the date of action that caused the interim certification, *e.g., first of the month after the date of loss of employment.
* A 30-day notice is not required for rent decreases.

Supportive Services

RHCB will support tenants with long-term housing stability by providing onsite client-centered Tenancy and Sustaining Services as well as Enhanced Care Management.

Tenancy and Sustaining Services include:

▪ Providing early identification and intervention for behaviors that may jeopardize housing, such as late rental payment, hoarding, substance use, and other lease violations. ▪ Education and training on the role, rights and responsibilities of the tenant and landlord. ▪ Coaching on developing and maintaining key relationships with landlords/property managers with a goal of fostering successful tenancy.
▪ Coordination with the landlord and case management provider to address identified issues that could impact housing stability.
▪ Assistance in resolving disputes with landlords and/or neighbors to reduce risk of eviction or other adverse action including developing a repayment plan or identifying funding in situations in which the client owes back rent or payment for damage to the unit.

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▪ Advocacy and linkage with community resources to prevent eviction when housing is or may potentially become jeopardized.
▪ Assisting with benefits advocacy, including assistance with obtaining identification and documentation for SSI eligibility and supporting the SSI application process. Such service can be subcontracted out to retain needed specialized skillset. ▪ Assistance with the annual housing recertification process. ▪ Coordinating with the tenant to review, update and modify their housing support and crisis plan on a regular basis to reflect current needs and address existing or recurring housing retention barriers. ▪ Continuing assistance with lease compliance, including ongoing support with activities related to household management.
▪ Health and safety visits, including unit habitability inspections. ▪ Other prevention and early intervention services identified in the crisis plan that are activated when housing is jeopardized (e.g., assisting with reasonable accommodation requests that were not initially required upon move-in).
▪ Providing independent living and life skills including assistance with and training on budgeting, including financial literacy and connection to community resources.

Enhanced Care Management (ECM) will address the clinical and non-clinical needs of high-need, high-cost eligible tenants through systematic coordination of services and comprehensive care management. ECM offers comprehensive, “whole person” care management with the overarching goals of:

▪ Improving care coordination; Integrating services;
▪ Facilitating community resources;
▪ Improving health outcomes; and
▪ Decreasing inappropriate utilization and duplication of services.

Program Goals

RH Community Builders proposes the following outcomes for The Majestic permanent supportive housing program:

Goal Program Outcome Targets
Housing
Stability
85% of persons will remain in the permanent housing project as of the end of the operating year or will exit to other permanent housing

Increased
Income
90% of persons age 18 and older will maintain or increase their total income (from all sources) as of the end of the operating year or program exit.

Community
Engagement
80% of clients will participate in skill building workshops and/or onsite community events.

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Compliance

During the development phase of the project, RH Community Builders (RHCB) will leverage its team of experts to ensure compliance with HOME ARP, SAH regulations, and RFP requirements. RHCB’s internal team has over two decades of experience in government funding and grants compliance. Additionally, the RHCB development team engages with a variety of consultants for specialized compliance areas such as legal, relocation, labor, ADA, and NEPA. RHCB’s fiscal team follows Generally Accepted Accounting Principles (GAAP) for all financial activities and 2 CFR 200 for grants and contracts requiring such.

Once the project is operational, RHCB uses its comprehensive Compliance Plan that includes the monitoring and oversight of all records, data, and outcomes. RHCB has extensive experience with maintaining records and data including complex management of tax credit and HUD compliance. All RHCB charts are monitored on a regular basis. Client files are reviewed at 30 days from intake, 6 months, 9 months, 12 months, and at exit. New staff are thoroughly trained in data collection to ensure that all collected data is valid and of high quality. The Property Manager will ensure that the high volume of data, records, and information is well tracked, accurately maintained, and provided to requesting parties in a timely fashion.

Additionally, RHCB collects HMIS data at the time of intake and discharge. All HMIS data is entered into the online database within 72 hours of occurrence. Monthly HMIS data reports are completed by the Housing Director and reviewed for accuracy by the Executive Director.

Leveraging

RH Community Builders will leverage a variety of funding sources, both cash and in-kind, for The Majestic project. Development sources for the project will include those available under this RFP and Homekey, round three. Supportive services will be funded through our California Advancing and Innovating Medi-Cal (Cal AIM) contract. Tulare County HHSA will provide entitlement benefit assistance and behavioral health services. Operational support will be leveraged through Mainstream Voucher Program (MVP) and Emergency Housing Voucher (EHV) referrals from the Kings/Tulare Homeless Alliance.

Barriers, Exclusions

Not applicable. RH Community Builders (RHCB) does not anticipate any exclusions to program participation.

Additionally, RHCB does not identify any barriers that would be significant enough to cause the program to not reach the intended outcomes. The leadership team of RHCB has extensive experience navigating the implementation of new programs and ensuring that unforeseen barriers do not impact the overall operation or outcomes of the program.

Program Administrative vs. Activity Delivery

RH Community Builders understands Program Administrative Costs versus Activity Delivery Costs. All costs associated with this funding will be Activity Delivery Costs and directly related to completing eligible activities.

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Proposed Location

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Exceptions

RH Community Builders does not have any exceptions to the requirements of the RFP.

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Additional Information

RH Community Builders (RHCB) combines a rich history of real estate and affordable housing development, social services operations, and specialty property management. The RHCB team has a proven track record of successful business operations. The leadership team of Wayne Rutledge and Brad Hardie is a known successful combination in the Central Valley.

Mr. Rutledge has more than 25 years of experience in business management, has successfully opened and grown Uncle Harry’s Bagelry from 1 shop to 5 shops, won multiple business awards, and is known to be an excellent company to work for. In addition to his successful business ventures, Mr. Rutledge brings a wealth of experience in leadership and management. Wayne’s ability to bring his vision to reality while valuing employees and making sure that customers are successful is what sets him apart.

Mr. Hardie started in the property management business and grew Regency Property Management from a small company managing less than 100 properties to a company that now manages more than 8,000 doors in the Central Valley. Regency Property Management is known to be the largest and best quality affordable housing property management in the Fresno Region, which is due to Mr. Hardie’s passion for ensuring that all community members have an affordable and quality place to call home.

Their passions, experience, and motivations combined led to the development of The Hacienda. Located in Central Fresno, The Hacienda, which was one a dilapidated community eye sore, is now a central hub for community resources. The Hacienda is fully occupied and provides a full continuum of service options including residential substance abuse treatment, outpatient substance abuse treatment, outpatient mental health services, low-barrier shelter, bridge housing, site based rapid rehousing, permanent supportive housing, sober living, and an onsite pharmacy.

Sequoia Village in Visalia and Crossroads Village in Fresno are additional examples of the work of Mr. Hardie and Mr. Rutledge. Sequoia Village, formerly known and Sequoia Lodge was a known hotspot for criminal activity including prostitution. Within 45 days of acquisition, the former motel was renovated and operational as a low-barrier shelter serving the Visalia community. Crossroads Village, completed on a similar timeline, turned 200 under-utilized and poor condition motel rooms into 165 units of permanent housing. These Homekey projects have improved the resources available to the community and have made a positive impact on the community around them.

The leadership, passion, and experience of the leadership team is unparalleled and will ensure that The Majestic project not only fulfills the community’s need and vision but exceeds all expectations.

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Estimated Funding Requirement

RH Community Builders (RHCB) will submit reimbursement requests on a monthly basis. Requests will include an invoice, OSS, and all supporting back-up such as invoices, receipts, and functional timesheets. All financial and program documentation is retained for a minimum five-year period after final payments have been issued by the funder. All documentation and client files are available for audit upon request.

RHCB has record retention policies that provide for the systematic review, retention and destruction of records. These policies cover all records, regardless of physical form, contain guidelines on how long certain records should be kept and how records should be destroyed. RHCB’s record retention policies are designed to ensure compliance with federal and state laws and regulations. Policies include the delineation between permanent files, financial records, and correspondence with each category having a specific retention period.

RH Community Builders’ Cost Allocation Plan is based on the Direct Allocation method described in OMB Circular A-122. The Direct Allocation Method treats all costs as direct costs except general administration and general expenses. Only costs that are allowable, in accordance with cost principles, will be allocated to benefiting programs. Personnel costs associated with project delivery will be substantiated by functional timesheets detailing the time spent on eligible activities within a specific project.

Conflict of Interest

RH Community Builders does not have any conflicts of interest with the City of Visalia or any member of City staff that may have an impact on the outcome of the project.

The project is in the predevelopment stage and does not have any clients who may have a financial interest in the outcome of the project.

RH Community Builders does not have any financial, business, or other relationship with the City or any member of the City staff that may have an impact on the outcome of the project.

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Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 23-0083 Agenda Date: 4/17/2023 Agenda #: 1.

Agenda Item Wording:

Conduct a second Public Hearing to approve and adopt the 2023 Annual Action Plan, 2022 Action Plan Amendment, and 2021 Action Plan Amendment including the HOME Investment Partnership American Rescue Plan Program (HOME-ARP) Allocation Plan Amendment for the U.S. Department of Housing and Urban Development (HUD) Community Development Block Grant (CDBG), HOME Investment Partnership Program (HOME), and HOME-ARP activities and projects.

Deadline for Action: 4/17/2023
Submitting Department: Finance and Technology Services
Contact Name and Phone Number: Margie Perez, Housing Specialist, 713-4460, [email protected] <mailto:[email protected]>; Melody Murch, Assistant Finance Director, 713-4379, [email protected] <mailto:[email protected]>; Renee Nagel, Finance Director, 713-4378, [email protected] <mailto:[email protected]> Department Recommendation:

1. Conduct a second Public Hearing, allowing a final opportunity for citizens to provide input and comment on the proposed 2023 Annual Action Plan, 2022 Action Plan Amendment, and 2021 Action Plan Amendment including the HOME-ARP Allocation Plan Amendment;

2. Adopt and appropriate the FY 2023/24 Annual Action Plan proposed CDBG and HOME activities;

3. Approved and appropriate the FY 2022/23 proposed CDBG and HOME Action Plan Amendment;

4. Approve and appropriate the FY 2021/22 proposed HOME Action Plan Amendment including the HOME-ARP Allocation Plan Amendment; and

5. Authorize City Manager or their designee to enter into all contracts as listed in the 2023 Annual Action Plan, 2022 Action Plan Amendment, and 2021 Action Plan Amendment including the HOME-ARP Allocation Plan Amendment; and

6. Authorize the City Manager or their designee to submit the 2023 Annual Action Plan, 2022 Action Plan Amendment, and 2021 Action Plan Amendment including the HOME-ARP Allocation Plan to HUD.

Background Discussion:

As an entitlement community (EC) for CDBG and a participating jurisdiction (PJ) for HOME, the City of Visalia receives federal formula grants through the U.S. Department of Housing and Urban Development (HUD). This provides the City with annual direct grant funding for the benefit of low- income persons and households. As required by HUD, the City Council approved the 2020-2025, 5- year Consolidated (ConPlan) to guide the use of federal Community Development Block Grant (CDBG) and HOME Investment Partnership funding (HOME). HUD also requires the City to develop an Annual Action Plan to meet the CDBG and HOME objectives established in the 5-year Strategic th
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Plan within the Council approved ConPlan. The 2023 Annual Action Plan is the 4th year of the 5-year ConPlan that has been produced based on the objectives established in the City’s 5-year Strategic Plan for the Program Years 2020/21 through 2024/25.

Staff is seeking final public comment on the priorities and activity allocations proposed for the 2023 Annual Action Plan, 2022 Action Plan Amendment, and 2021 Action Plan Amendment including the HOME-ARP Allocation Plan Amendment. Tonight’s public hearing will complete the citizen participation process which has been conducted to obtain community input for the development of the proposed Program Year (PY) 2023 Action Plan, 2022 Action Plan Amendment, and 2021 Action Plan Amendment. This is the second public hearing with the first having been held April 3, 2023.

Council is asked to consider the comments, recommendations, and requests for funding as provided in further detail below and provide final approval.
2023 Proposed Annual Action Plan: The proposed 2023 Annual Action Plan consists of a total of $1,250,000 in projected CDBG resources, and $1,345,000 in projected HOME resources. The 2023 proposed CDBG and HOME resources, activities, and funding allocations are explained in further detail below.
2023 Proposed Community Development Block Grant (CDBG) Revenue and Expenses:

The CDBG 2023 projected resources include $1,200,000 in estimated annual grant allocation and $50,000 in estimated program income* for a total of $1,250,000 in 2023 CDBG projected resources as shown below in Table 1: 2023 CDBG Projected Resources. *CDBG program income is generated from repayment of CDBG funded first-time homebuyer and/or owner-occupied rehabilitation loans.

Table 1: PY 2023 CDBG Projected Resources
Resources Amount
PY 2023 Annual Allocation $ 1,200,000
PY 2023 Program Income 50,000
Total PY 2023 CDBG Projected Resources $ 1,250,000 The proposed programs for the 2023 Action Plan were formulated based upon applications received in response to a Notice of Funding Availability (NOFA).

The City released a NOFA from January 15th through February 15th, 2023, to solicit applications for the administration of the City’s PY 2023 CDBG public services, emergency and accessibility home repair program, and senior/disabled mobile home repair program. The NOFA was published in the Visalia Times Delta on 1/12/23 and 1/19/23. The NOFA was also posted on the City’s purchasing website, the Central Valley Purchasing System “BidNet”, and on the Kings Tulare Homeless Alliance listserv on January 20, 2023, making it available to over 330 recipients.

Staff Recommended 2023 Annual Action Plan Activities:

Staff has included the proposed 2023 Annual Action Plan activities and their respective funding, as Attachment D: 2023 AAP & 2022 AAP Amendment Tables. The public hearing to be conducted tonight will allow Council, and the public, a final opportunity to comment, discuss, and direct any necessary changes to the proposed project and program allocations. In addition to the activities described below, the 2023 proposed CDBG administration budget is $250,000. This is 20% of the annual grant allocation and program income, which is the maximum amount of administration allowed Visalia City Council Printed on 4/14/2023Page 2 of 8
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by HUD for CDBG grants.

The PY 2023 Proposed CDBG Public Services are listed below and included in Table 2: PY 2023 CDBG Proposed Public Services.
· Kings Tulare Homeless Alliance (KTHA) - At $20,000 for weekly operation of the Visalia Local Initiatives Navigation Center (LINC) to provide wrap-around services for people experiencing homelessness, including mental health assessments/enrollments, housing counseling, birth certificates, CA ID vouchers, mainstream benefit enrollment, social security advocacy, substance abuse program enrollments, veteran services, hygiene kits, and food. KTHA will also oversee the annual PIT count expected in January 2024. In addition, KTHA serves as the local Continuum of Care (CoC).
· Family Services of Tulare County - At $50,000 for case management services for chronically homeless persons in Visalia who are receiving a Permanent Supportive Housing (PSH) voucher through HUD CoC Tulare Housing First grants. These funds are also used as match to secure the CoC Tulare Housing First grants and PSH vouchers. The Tulare Housing First program is funded with a federal (HUD) grant and vouchers are available countywide. · Kings View PATH Program - At $50,000 to provide direct homeless services and homeless prevention services which will include case management, transportation assistance, legal document assistance, linkage to employment services, and completion of the VI-SPDAT (Vulnerability Index - Service Prioritization Decision Assistance Tool) assessment. Direct client assistance includes security deposits, rental application fees, motel vouchers, legal document fees, interview clothing assistance, food vouchers, hygiene kits, and emergency rental assistance to prevent evictions.
· Fair Housing Education - At $7,500 to provide fair housing education which was identified as a community need during the development of the 5-year ConPlan and Analysis of Impediments to Fair Housing Choice.

Table 2: PY 2023 CDBG Proposed Public Services
Kings Tulare Homeless Alliance $ 20,000
Family Services Voucher Program 50,000 Kings View PATH Program 50,000
Fair Housing Education 7,500
Total PY 2023 CDBG Proposed Public Services $ 127,500 The PY 2023 CDBG Proposed Affordable Housing Projects are listed below and included in Table 3:

PY 2023 CDBG Projected Affordable Housing.
· Self-Help Enterprises - At $75,000 to administer a Senior Mobile Home Repair Program (SMHRP) to provide 6 senior and/or disabled owner-occupied mobile homeowners with necessary repairs including roof repair/replacement, accessibility improvements, floor repair/replacement, and energy efficient improvements. Self-Help Enterprises (SHE) applied for $100,000; however, only $75,000 in SMHRP funds were expensed by SHE for this program in FY 2021-2022. As a result, the PY 2023 CDBG NOFA only advertised $75,000 for a Senior Mobile Repair Program.
· Code-Enforcement - At $175,000 to provide code enforcement inspections in CDBG eligible low-moderate income target areas to address substandard housing. This funding pays the full cost of one staff position which is responsible for code enforcement in CDBG Target Areas.

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Code Enforcement has been funded with CDBG annually since the 1993/94 Fiscal Year (29 years). Code Enforcement activities were identified as an objective during the development of the 5-year Consolidated Plan.

Table 3: PY 2023 CDBG Proposed Affordable Housing
Senior Mobile Home Repair Program $ 75,000
Code Enforcement 175,000
Total PY 2023 CDBG Proposed Affordable Housing $ 250,000 The PY 2023 CDBG proposed facility improvement projects are listed below and included in Table 4: PY 2023 CDBG Projected Facility Improvement Projects. · ADA Compliance Project - Tree Wells - $622,500 for ADA Compliance Projects, which includes design and construction for tree well rehabilitation in the downtown area per the request of the Disability Advocacy Committee (DAC) in 2020, prior to its disbandment into the Citizens Advisory Committee. The current condition of the tree wells creates barriers to accessibility in the downtown area and this project is a high priority for the DAC. *Any increase or decrease of PY 2023 CDBG annual allocation or program income will be an adjustment to ADA Compliance Project.

Table 4: PY 2023 CDBG Proposed Facility Improvement Projects ADA Compliance Projects - Tree Wells Project $ 622,500 Total PY 2023 CDBG Proposed Public Facility Improvement Projects $ 622,500 PY 2023 Proposed HOME Investment Partnership Program (HOME) Revenue and Expenses:

The PY 2023 HOME projected revenue includes $545,000 in HOME estimated annual grant allocation, and $800,000* in estimated program income as identified in Table 5: PY 2023 HOME Projected Resources. *HOME program income is normally generated from repayment of HOME funded first-time homebuyer or owner-occupied rehabilitation loans. However, a higher HOME program income is expected due to the sale of 5-single family HOME funded homes on NW 5th Avenue and N Court Street.

Table 5: PY 2023 HOME Projected Resources
PY 2023 Annual Allocation $ 545,000
PY 2023 Program Income 800,000
Total PY 2023 HOME Projected Resources $ 1,345,000 The PY 2023 Proposed HOME funding is listed below and included in Table 6: PY 2023 HOME Proposed Funding.
· HOME Administration: $75,000 for PY 2023 HOME Admin and Planning. This amount is well within the 10% allowed for administration of the HOME program by HUD. · The Lofts Project: $634,375 towards construction of an 80-unit affordable rental housing complex. The PY 2023 HOME funds directed to the Lofts Project will be funded with HOME program income received from the sale of the five affordable single-family houses constructed at NW 5th Avenue. This final piece of funding will complete the Visalia City Council Printed on 4/14/2023Page 4 of 8
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City’s HOME commitment of $2,350,898 to the Lofts Project, which was approved by Council on 11/16/2020.
· HOME CHDO Multi-Family: $635,325 to HOME CHDO Multi-Family development as approved by Council in the current 5-year Consolidated Plan. As a HOME Participation Jurisdiction, the City is required to provide at least 15% of the annual HOME funds awarded to a Community Housing Development Organization (CHDO) to develop affordable housing. Self-Help Enterprises (SHE) is currently the only CHDO for the City of Visalia. The CHDO 15% has been combined with additional HOME funds to provide for a CHDO multi-family project as specified in the current 5-Year ConPlan. A HOME CHDO multi-family project has not yet been identified and a CHDO will need to provide a proposal for a potential eligible HOME CHDO multi-family project. Staff will return to Council at a later date with a HOME CHDO multi-family project proposal for Council’s review and approval. *Any increase or decrease of PY 2023 HOME annual allocation or program income will be an adjustment to the HOME CHDO Multi-Family project.

Table 6: PY 2023 HOME Proposed Funding
HOME Administration $ 75,000
The Lofts Project 634,375
HOME CHDO-Multi-Family 635,625
Total PY 2023 HOME Proposed Funding $ 1,345,000 The PY 2022 Annual Action Plan Amendment:

The Program Year (PY) 2022 Community Development Block Grant (CDBG) Annual Action Plan (AAP) Amendment includes $150,000 of additional program income and reappropriation of $7,500 in unspent fair housing education funds, due to not having a fair housing conference in FY 22-23.

Additional fair housing education funds will be included in the FY 23-24 Action Plan for an in-person fair housing conference. A total of $157,000 of CDBG funds will be appropriated towards the existing ADA Compliance Project - Transit Pathway (CP0420), bringing the total of that project to $499,940, as shown below in Table 7: PY 2022 CDBG Annual Action Plan Amendment.

Table 7: PY 2022 CDBG Annual Action Plan Amendment
Resources Approved Adjustments Proposed
PY 2022 Annual Allocation $ 1,183,482 $ - $ 1,183,482 PY 2022 Program Income 50,000 150,000 $ 200,000 Prior Year Resources 1,834,163 - $ 1,834,163 Total Resources $ 3,067,645 $ 150,000 $ 3,217,645 Expenditures Approved Adjustments Proposed
Administration $ 262,500 $ - $ 262,500 Kings Tulare Homeless Alliance 20,000 - 20,000 Family Services Voucher Program 45,000 - 45,000 Kings View PATH Program 35,000 - 35,000 Fair Housing Education 7,500 (7,500) - Emergency Repair and ADA Program 50,000 - 50,000 Senior Mobile Home Repair Program 100,000 - 100,000 Code Enforcement 150,000 - 150,000 ADA Compliance Project - Transit Pathway CP0420 342,440 157,500 499,940 Navigation Center Development 2,055,205 - 2,055,205 Total Expenditures $ 3,067,645 $ 150,000 $ 3,217,645 Visalia City Council Printed on 4/14/2023Page 5 of 8
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Table 7: PY 2022 CDBG Annual Action Plan Amendment
Resources Approved Adjustments Proposed
PY 2022 Annual Allocation $ 1,183,482 $ - $ 1,183,482 PY 2022 Program Income 50,000 150,000 $ 200,000 Prior Year Resources 1,834,163 - $ 1,834,163 Total Resources $ 3,067,645 $ 150,000 $ 3,217,645 Expenditures Approved Adjustments Proposed
Administration $ 262,500 $ - $ 262,500 Kings Tulare Homeless Alliance 20,000 - 20,000 Family Services Voucher Program 45,000 - 45,000 Kings View PATH Program 35,000 - 35,000 Fair Housing Education 7,500 (7,500) - Emergency Repair and ADA Program 50,000 - 50,000 Senior Mobile Home Repair Program 100,000 - 100,000 Code Enforcement 150,000 - 150,000 ADA Compliance Project - Transit Pathway CP0420 342,440 157,500 499,940 Navigation Center Development 2,055,205 - 2,055,205 Total Expenditures $ 3,067,645 $ 150,000 $ 3,217,645 The PY 2022 HOME Annual Action Plan Amendment includes reappropriation of $120,000 of prior year HOME resources from unspent Tenant-Based Rental Assistance (TBRA) program funds contracted to end on December 31, 2022, toward a First Time Homebuyer (FTHB) assistance program for additional secondary financing for the five HOME assisted single-family homes developed on NW 5th Avenue and N Court Street, bringing the NW 5th Avenue Project HOME FTHB assistance total to $245,000, as shown below in Table 8: PY 2022 HOME Annual Action Plan Amendment.

Table 8: PY 2022 HOME Annual Action Plan Amendment
Resources Approved Adjustments Proposed
PY 2022 HOME Allocation $ 546,791 $ - $ 546,791 PY 2022 Program Income 200,000 - 200,000 Prior Year Funds - 120,000 120,000 Total Resources $ 746,791 $ 120,000 $ 866,791 Expenditures Approved Adjustments Proposed
HOME Admin $ 70,750 $ - $ 70,750 First Time Homebuyer Program - NW 5 125,000 120,000 245,000 The Lofts Project 551,041 - 551,041 Total Expenditures $ 746,791 $ 120,000 $ 866,791 HOME-ARP Funds: The City has been awarded $1,840,059 in 2021 HOME-ARP funds to reduce homelessness and increase housing stability for the following Qualifying Populations (QP). · Homeless
· At-risk of homelessness
· Fleeing/attempting to flee domestic violence, dating violence, sexual assault, stalking, or human trafficking
· Greatest risk of housing instability
o Annual income less than 30% of the area median income (AMI) and is experiencing severe cost burden (i.e., paying more than 50% of monthly household income toward housing costs)
o Annual income less than 50% of the AMI and meets one of the conditions of “At risk of homelessness” as defined in 24 CFR 91.5(iii)
HOME-ARP funds can be used for the following four eligible activities:

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1. Permanent Affordable Rental Housing

2. Non-Congregate Shelters

3. Tenant-Based Rental Assistance

4. Supportive Services
The Majestic Project: On July 18, 2022, Council awarded RFP 21-22-28 to the RH Community Builders to convert the Majestic Motel into Permanent Affordable Rental Housing for people experiencing homelessness in accordance with HOME-ARP Qualifying Populations, with the use of $1.8 million in HOME-ARP and $900,000 in SAH funds. This project is currently undergoing an environmental review, which is expected to be completed this summer, allowing the City to move forward with the contracts for this project.

HOME-ARP Allocation Plan Amendment: When the original HOME-ARP Allocation Plan was established in early spring of 2022, a HOME-ARP project had not yet been identified. As a result, the HOME-ARP Allocation Plan is being amended to provide preference for HOME-ARP Qualifying Populations people experiencing homeless for the HOME-ARP funded Majestic Project, as shown in Attachment C: Draft HOME-ARP Allocation Plan Amendment.

Public Hearing for Adoption: The 30-day public comment period for the review of the draft 2023 Annual Action Plan, 2022 Action Plan Amendment, and 2021 Action Plan Amendment including HOME-ARP Allocation Plan Amendment began on March 17th through April 17th, 2023. During the 30 -day public comment period the draft plans were available for public review on the City’s website at www.visalia.city <http://www.visalia.city>. Public notices were published on City’s social media outlets, and in the Visalia Times Delta on March 15th, March 17th, and March 31st, 2023. Public notices were also included in Kings/Tulare Homeless Alliance and the Visalia Chamber of Commerce email listservs. A public hearing was conducted on April 3, 2023, to allow public comment and input.

The proposed plans were also presented at the Citizens Advisory Committee (CAC) on April 5, 2023, to receive additional public input. Tonight’s public hearing is the final step in the public comment period. The adopted 2023 Annual Action Plan is due to HUD no later than May 15, 2023.

Fiscal Impact:

Approval of this item will appropriate $1,250,000 of FY 2023 annual CDBG grant funds, $1,345,000 of FY 2023 annual HOME grant funds, and authorize the proposed amendments to the Allocation Plan for $1,840,059 in HOME-ARP funds, the 2022 Action Plan, and 2021 Action Plan . CDBG, HOME, and HOME-ARP funds are to be received on a reimbursement basis. This will require submission of the 2023 Annual Action Plan, 2022 Action Plan Amendment, and 2021 Action Plan Amendment including the HOME-ARP Allocation Plan to HUD in the Integrated Disbursement and Information System (IDIS) to properly track and report on separate activities. In addition, this item will authorize the carry forward of 2022 CDBG and HOME activities as shown in Table-7: 2022 CDBG Action Plan Amendment and Table-8: 2022 HOME Action Plan Amendment.

Prior Council Action: Click or tap here to enter text.
· April 20, 2020 - Adoption of 5-year (2020/21 - 2024/25) Consolidated Plan · November 16, 2020 - Council authorized a preliminary award letter for a commitment to Self- Help Enterprises in $2,350,898 of HOME funds to construct the Lofts 80-unit multi-family project.

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· December 20, 2021 - HOME-ARP Public Hearing to review and comment on the development of HOME-ARP Allocation Plan.
· July 18, 2022 - Approval of RFP-21-22-28 to RH Community Builders for $1.8 million in HOME -ARP funds and $900,000 in Successor Agency Housing (SAH) funds for the development of the Majestic Motel to Permanent Affordable Rental Housing. · April 3, 2023 - Review PY 2023 Annual Action Plan, PY 2022 Action Plan Amendment, and HOME-ARP Allocation Plan Amendment.

Other: None
Alternatives: None
Recommended Motion (and Alternative Motions if expected):

Staff Recommends that Council:

2. Adopt and appropriate the FY 2023/24 Annual Action Plan proposed CDBG and HOME activities;

3. Approved and appropriate the FY 2022/23 proposed CDBG and HOME Action Plan Amendment;

4. Approve and appropriate the FY 2021/22 proposed HOME Action Plan Amendment including the HOME-ARP Allocation Plan Amendment; and

5. Authorize City Manager or their designee enter into all contracts as listed in 2023 Annual Action Plan, 2022 Action Plan Amendment, and 2021 Action Plan Amendment including the HOME-ARP Allocation Plan Amendment; and

6. Authorize the City Manager or their designee to submit the 2023 Annual Action Plan, 2022 Action Plan Amendment, and 2021 Action Plan Amendment including the HOME-ARP Allocation Plan to HUD.

Environmental Assessment Status: N/A
CEQA Review: N/A
Attachments: Click or tap here to enter text.
· Attachment A: 2023 Annual Action Plan
· Attachment B: 2022 Action Plan Amendment
· Attachment C: HOME-ARP Allocation Plan Amendment
· Attachment D: 2023 AAP & 2022 AAP Amendment Tables
· Attachment E: 2023 AAP & Amendments PPT
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Table of Contents

Executive Summary ....................................................................................................................................... 3 AP-05 Executive Summary - 24 CFR 91.200(c), 91.220(b) ........................................................................ 3 PR-05 Lead & Responsible Agencies – 91.200(b) ...................................................................................... 6 AP-10 Consultation – 91.100, 91.200(b), 91.215(l) ................................................................................... 7 AP-12 Participation – 91.105, 91.200(c) ................................................................................................. 14 Expected Resources .................................................................................................................................... 16 AP-15 Expected Resources – 91.220(c)(1,2) ........................................................................................... 16 Annual Goals and Objectives ...................................................................................................................... 20 Projects ................................................................................................................................................... 23 AP-35 Projects – 91.220(d) ..................................................................................................................... 23 AP-38 Project Summary .......................................................................................................................... 25 AP-50 Geographic Distribution – 91.220(f) ............................................................................................. 30 Affordable Housing ..................................................................................................................................... 31 AP-55 Affordable Housing – 91.220(g) ................................................................................................... 31 AP-60 Public Housing – 91.220(h) ........................................................................................................... 33 AP-65 Homeless and Other Special Needs Activities – 91.220(i) ............................................................ 35 AP-75 Barriers to Affordable Housing – 91.220(j) .................................................................................. 38 AP-85 Other Actions – 91.220(k) ............................................................................................................ 40 Program Specific Requirements .................................................................................................................. 43 Appendix “A” – Summary Detail ................................................................................................................. 46

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Executive Summary
AP-05 Executive Summary - 24 CFR 91.200(c), 91.220(b)

1. Introduction
The City of Visalia (City) is an entitlement jurisdiction for the Community Development Block Grant (CDBG) program and a participating jurisdiction for HOME Investment Partnerships Act Program (HOME). As a required by the U.S. Department of Housing and Urban Development (HUD), the City develops a Consolidated Plan (ConPlan) every five years to guide the use of federal CDBG and HOME funding. The 5-Year ConPlan is the guiding document for allocating these resources which support projects and programs that benefit low- and moderate-income people by increasing housing and economic opportunities, strengthening low-income neighborhoods, and addressing public service and infrastructure needs. The Annual Action Plan (AAP) is also required by HUD each year of the five-year cycle and will summarize the programs and projects that will be funded by the annual grants to achieve the goals and objectives of the ConPlan. Annual accomplishments are reported on progress toward ConPlan goals in the Consolidated Annual Performance and Evaluation Report (CAPER).

2. Summarize the objectives and outcomes identified in the Plan Our strategy for community improvement using CDBG and HOME funds will focus on five broad goals.

These goals are:
• Improve housing opportunities for low-income households through new construction, mortgage and rental assistance, senior housing, housing for the disabled, and rehabilitation of homes/mobile home.
• Provide for a suitable living environment for low-income individuals and/or areas through Tenant-based subsidies and property maintenance (Code Enforcement):
• Address community/special needs through shelters, counseling, youth services, and domestic violence services.
• Address the needs of persons who are homeless with transitional housing, permanent housing, voucher programs, and tenant-based rental assistance.
• Improve public infrastructure and facilities in the community. • Provide optimal program administration and oversight of the CDBG and HOME programs to continue planning efforts that address the needs of extremely low, very low, and low-income households and neighborhoods.

Details of our plan to meet these goals can be found in the strategies the City has identified below with the following labels:
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• Increase affordable housing for LMI households in the City of Visalia • Create suitable living environments for renters/homeowners in the City of Visalia • Address community/special needs and services
• Address the needs of people experiencing homelessness • Enhance community development
• Provide efficient administration and oversight of the CDBG and HOME programs

3. Evaluation of past performance
The U. S. Department of Housing and Urban Development requires an evaluation of the City’s progress toward goals for the CDBG and HOME funds each year of the five-year ConPlan period. Over the past five-year ConPlan period, 2015 to 2019, the City has supported organizations providing services to populations in need and addressed the lack of affordable housing through partnerships with the Housing Authority, and non-profit organizations, including Self-Help Enterprises (SHE), a local low-income housing provider. The City has allocated grant funding to the following:
• Fair Housing Council of Central California (FHCCC), assisting 184 people by handling housing discrimination complaints and agency referrals, holding seminars and educational workshops, and conducting discrimination testing;
• Acquisition of the -Self Help Enterprises. Inc. (SHE) public facility for bridge/transitional housing; • Self Help Enterprises on policy development and provision of grants for the mobile home repair program, and acquisition and rehabilitation of affordable housing and rental units; • Family Services of Tulare County, providing HOME funded tenant based rental assistance and case management;
• ADA Compliance Public Improvement projects;
• Park improvements (Jefferson Park, Community Lot Garden); • Section 108 loan payments; and
• Support to providers of assistance to homeless and low-income populations.

4. Summary of Citizen Participation Process and consultation process The 2023 Annual Action Plan goals were established based on high priority needs as identified in the 2020-2024 ConPlan. The City used several community outreach methods including public meetings, two surveys, and stakeholder consultations. Efforts to reach populations underrepresented in the planning process of the ConPlan included discussions regarding the survey with various housing, social service, faith-based, and other organizations that provide services to the disabled, special needs, low income, and homeless population community. Many of the organizations that assisted in the effort to distribute the surveys posted them on their websites and sent notification to their partners and clientele. The surveys were provided in English and Spanish.

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providers, social service providers, Organizations representing protected classes, Fair housing, Broadband internet providers, Emergency management organizations, the Citizens Advisory Committee, the Disability Advocacy Committee, and additional local and regional stakeholders.

In addition, the Program Year 2023 Annual Action Plan 30-day public comment period took place from March 17, 2023 through April 17, 2023. A Public notice was published in the Visalia Times Delta on March 15, 2023 and March 17, 2023. The draft 2023 Annual Action Plan was available for review on the City's website at www.visalia.city. Public notices also sent to the Kings Tulare Homeless Alliance listserv and the City's social media channels. The City also held the following community and city council meetings:
• City Council (Draft Review) on April 3, 2023 at 7:00pm • Citizens Advisory Committee (CAC) on April 5, 2023 at 5:30pm • City Council Public Hearing (Adoption) on April 17, 2023 at 7:00pm

5. Summary of public comments
This could be a brief narrative summary or reference an attached document from the Citizen Participation section of the Con Plan.

Summary of comments will be added following the public comment period.

6. Summary of comments or views not accepted and the reasons for not accepting them All comments will be accepted and taken into consideration.

7. Summary
The City of Visalia conducted several public meetings and hearings to gather input and review the 2020- 2024 Consolidated Plan. In addition, the City held stakeholder meetings with multiple community and regional organizations and agencies providing services to low income and homeless populations. The City has reviewed several plans to gather information for the development of this Plan that included the City of Visalia Housing Element for 2020-2023, which was being drafted concurrently with the Consolidated Plan. A summary of the full citizen participation of the 2023 Annual Action Plan will be included as Attachment A.
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PR-05 Lead & Responsible Agencies – 91.200(b)

1. Agency/entity responsible for preparing/administering the Consolidated Plan Describe the agency/entity responsible for preparing the Consolidated Plan and those responsible for administration of each grant program and funding source.

Agency Role Name Department/Agency
Lead Agency VISALIA
CDBG Administrator VISALIA Finance Department-Housing Division HOPWA Administrator N/A N/A
HOME Administrator VISALIA Finance Department- Housing Division HOPWA-C Administrator N/A N/A
Table 1 – Responsible Agencies

Narrative (optional)
The City of Visalia (City) is the Lead Agency for the United States Department of Housing and Urban Development (HUD) entitlement programs at the City of Visalia. The City’s Finance Department, Housing Division administers the funds it receives under the Community Development Block Grant (CDBG) and HOME Investment Partnerships (HOME) Programs.

Consolidated Plan Public Contact Information
Margie Perez
City of Visalia – Housing Specialist
Finance Department - Housing Division
707 W. Acequia Ave., Visalia, CA 93291
Email: [email protected]
Phone: (559) 713-4460
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AP-10 Consultation – 91.100, 91.200(b), 91.215(l)

1. Introduction
The City has fostered a community engagement process and gathered public input on community improvements that could be addressed by utilizing federal entitlement funds. During the preparation of the 5-year ConPlan, the City facilitated a community outreach and engagement effort to further strengthen the dialogue between public and assisted housing providers and private and governmental health, mental health and service agencies that receive federal funding. Participants in the community outreach process provided feedback on what they viewed as the most pressing housing, special needs/public services, and community development needs in the City.

Specifically related to public and assisted housing providers, private and governmental health, mental health and service agencies, City staff has met with the County Homeless Task Group, a City Emergency Shelter Task Group, and the Continuum of Care (Homeless Alliance) members. Organizations represented in City priorities includes county and local government, faith-based organizations, concerned citizens, housing providers, service providers, including mental health, education, employment, and others.

Provide a concise summary of the jurisdiction’s activities to enhance coordination between public and assisted housing providers and private and governmental health, mental health and service agencies (91.215(l))
City staff met with public officials, City departments, the Housing Authority of Tulare County (HATC), residents, and agencies to develop strategies for how best to invest grant funding to address discuss priority community needs. Staff met with the Citizens Advisory Committee, which acts as a liaison between the public and the City Council concerning community needs. Also, City Staff met with the Disability Advocacy Committee, to be advised on the needs of disabled persons in the community. A focus group was held with the City’s Community Housing Development Organization (CHDO), Self-Help Enterprises, which has, in the past and present, worked collaboratively with the City of Visalia to increase the City’s supply of affordable housing.

Describe coordination with the Continuum of Care and efforts to address the needs of homeless persons (particularly chronically homeless individuals and families, families with children, veterans, and unaccompanied youth) and persons at risk of homelessness.

The Kings/Tulare Homeless Alliance (Alliance) is the regional continuum of care which facilitates services through a system of homeless housing and service providers, advocates, government representatives and consumers to conduct outreach and strategies to address the needs of homeless persons and persons at risk of homelessness.
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City staff participates in regular monthly meetings of the Alliance to better understand the changing needs and challenges facing homeless populations; to coordinate strategies that ensure effective regional coordination in helping homeless individuals and families reach maximum self-sufficiency.

The City of Visalia supports the Alliance by providing grant funding for the yearly Point In Time Homeless Census and counts, the Project Homeless Connect events, as well as continued administration of the HUD Homeless Management Information System (HMIS).

Describe consultation with the Continuum(s) of Care that serves the jurisdiction's area in determining how to allocate ESG funds, develop performance standards for and evaluate outcomes of projects and activities assisted by ESG funds, and develop funding, policies and procedures for the operation and administration of HMIS Not applicable. The City does not receive ESG funding.

2. Describe Agencies, groups, organizations, and others who participated in the process and describe the jurisdiction’s consultations with housing, social service agencies and other entities
Representatives of the following agencies, groups, and organizations contributed to the narratives and data include in the Consolidated Plan and Action Plan preparation are listed in Table 2 on the following page.

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Table 2 – Agencies, groups, organizations who participated 1 Agency/Group/Organization Kings/Tulare Homeless Alliance Agency/Group/Organization Type Housing
Services-Persons with Disabilities
Services-homeless
Regional organization
What section of the Plan was addressed by
Consultation?
Housing Need Assessment
Public Housing Needs
Homeless Needs - Chronically homeless
Homeless Needs - Families with children
Homelessness Needs - Veterans
Homelessness Needs - Unaccompanied youth
Homelessness Strategy
Market Analysis
Anti-poverty Strategy
Briefly describe how the Agency/Group/Organization
was consulted. What are the anticipated outcomes of
the consultation or areas for improved coordination?
Consultation provided information; Continued partnership/collaboration through CoC meetings. Survey feedback presented the ConPlan High priority needs, 2023 Action Plan through the listserv members who represent all the types of organizations listed above including service providers, and community stakeholders. The Continuum of Care, and Homeless Task Group meetings and feedback relate to the need for homeless housing. CDBG funding would assist KTHA to further meet the needs of the chronically homeless community. 2 Agency/Group/Organization Housing Authority of Tulare County Agency/Group/Organization Type PHA
What section of the Plan was addressed by
Consultation?
Housing Need Assessment
Public Housing Needs
Non-Homeless Special Needs
Briefly describe how the Agency/Group/Organization
was consulted. What are the anticipated outcomes of
the consultation or areas for improved coordination?
HATC provided input through the survey, recommending that the city make more funding available for the acquisition and rehabilitation of more affordable housing. HATC was also consulted in preparation of the Consolidated Plan and Annual Action Plan. 391

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3 Agency/Group/Organization Self-Help Enterprises
Agency/Group/Organization Type Housing
Services - Housing
Services-Education
Regional organization
What section of the Plan was addressed by
Consultation?
Housing Need Assessment
Homeless Needs - Families with children
Lead-based Paint Strategy
Briefly describe how the Agency/Group/Organization
was consulted. What are the anticipated outcomes of
the consultation or areas for improved coordination?
Representative(s) contributed narrative and data to answer questions relevant to the Consolidated Plan, which helped in prioritizing the City's housing and community needs. 4 Agency/Group/Organization Tulare County Health and Human Services Agency Agency/Group/Organization Type Services-Children
Services-Elderly Persons
Services-Persons with Disabilities
Services-Persons with HIV/AIDS
Services-homeless
Services-Health
Health Agency
Child Welfare Agency
Regional organization
What section of the Plan was addressed by
Consultation?
Housing Need Assessment
Non-Homeless Special Needs
Briefly describe how the Agency/Group/Organization
was consulted. What are the anticipated outcomes of
the consultation or areas for improved coordination?
Representative(s) contributed narrative and data to answer questions relevant to the Consolidated Plan and Annual Action Plan.
5 Agency/Group/Organization United Way of Tulare County Agency/Group/Organization Type Services - Housing
Regional organization
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What section of the Plan was addressed by
Consultation?
Housing Need Assessment
Homeless Needs - Families with children
Homelessness Needs - Veterans
Homelessness Needs - Unaccompanied youth
Non-Homeless Special Needs
Briefly describe how the Agency/Group/Organization
was consulted. What are the anticipated outcomes of
the consultation or areas for improved coordination?
Representative(s) contributed narrative and data to answer questions relevant to the Consolidated Plan and Annual Action Plan.
6 Agency/Group/Organization Family Services of Tulare County Agency/Group/Organization Type Services - Housing
Services-Children
Services-Elderly Persons
Services-Persons with Disabilities
Services-Persons with HIV/AIDS
Services-Victims of Domestic Violence
Services-homeless
What section of the Plan was addressed by
Consultation?
Housing Need Assessment
Homeless Needs - Chronically homeless
Homeless Needs - Families with children
Homelessness Needs - Veterans
Homelessness Needs - Unaccompanied youth
Homelessness Strategy
Briefly describe how the Agency/Group/Organization
was consulted. What are the anticipated outcomes of
the consultation or areas for improved coordination?
Representative(s) contributed narrative and data to answer questions relevant to the Consolidated Plan and Annual Action Plan.
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7 Agency/Group/Organization Kings View Corporation
Agency/Group/Organization Type Services - Housing
Services-Elderly Persons
Services-Persons with Disabilities
Services-Persons with HIV/AIDS
Services-Victims of Domestic Violence
Services-homeless
What section of the Plan was addressed by
Consultation?
Homeless Needs - Chronically homeless
Homeless Needs - Families with children
Homelessness Needs - Veterans
Homelessness Needs - Unaccompanied youth
Homelessness Strategy
Non-Homeless Special Needs
Briefly describe how the Agency/Group/Organization
was consulted. What are the anticipated outcomes of
the consultation or areas for improved coordination?
Representative(s) contributed narrative and data to answer questions relevant to the Consolidated Plan and Annual Action Plan.
8 Agency/Group/Organization Citizens Advisory Committee Agency/Group/Organization Type Other government - Local What section of the Plan was addressed by
Consultation?
Housing Need Assessment
Non-Homeless Special Needs
Anti-poverty Strategy
Briefly describe how the Agency/Group/Organization
was consulted. What are the anticipated outcomes of
the consultation or areas for improved coordination?
Representative(s) contributed narrative and data to answer questions relevant to the Consolidated Plan and Annual Action Plan. A community meeting was also conducted on April 5, 2023, to review the draft PY 2023 Annual Action Plan.

Identify any Agency Types not consulted and provide rationale for not consulting 394

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The City reached out to several different agencies, groups, and organizations and invited them to participate in the preparation of the 5-year Consolidated Plan goals. They were contacted via email and provided with a stakeholder flyer that included information on the community forum and public hearings. The City asked these groups to forward this information to their colleagues and mailing lists. They were also encouraged to complete the community needs survey and to share the survey link with community stakeholders. The City also published public notices in the Visalia Times Delta, the City website, and the City's social media outlets.

The types of additional agencies were businesses, educational services, groups and organizations, employment service providers, fair housing services, health service and domestic violence service providers, service providers for children and elderly persons, other advisory, veterans and concerned citizens, as well as faith-based organizations. The following additional providers were sent notice and information via-email encouraging feedback on preparing the Action Plan activities form:
• Businesses: Downtown Visalians, Hispanic/Visalia Chamber of Commerce, Tulare County Economic Development, & Retail Associates.

Other local/regional/state/federal planning efforts considered when preparing the Plan Name of Plan Lead Organization How do the goals of your Strategic Plan overlap with the goals of each plan? Continuum of Care Kings Tulare
Homeless Alliance
As the designated bi-county Continuum of Care, the Alliance is responsible for planning process for the bi - county region which includes the City of Visalia. The Alliance mission is to coordinate and leverage resources that empower community partners including the City of Visalia to address homelessness.

City of Visalia Fair
Housing Rental
Assessment
City of Visalia and
Fair Housing Council
of Central California
The Fair Housing Council Fair Housing Rental Assessment is based upon systemic paired testing of the rental housing market to form the basis of plans to counteract discriminatory practices in the rental housing market with the City.

City of Visalia
General Plan Housing
Element
City of Visalia
The Housing Element assesses the need for housing for all levels of income and establishes policies to meet those needs. The Strategic Plan goals support the implementation of the Housing Element by working to construct and rehabilitate new and existing affordable housing units.

Tulare County Multi-
Jurisdictional Local
Hazard Mi
County of Tulare Development, as related to the Consolidated Plan, that occurs shall be primarily in the areas where environmental hazards can be properly mitigated.

Table 3 – Other local / regional / federal planning efforts

Narrative (optional)
None.
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AP-12 Participation – 91.105, 91.200(c)

1. Summary of citizen participation process/Efforts made to broaden citizen participation summarize citizen participation process and how it impacted goal setting

Outreach for the City of Visalia’s 2020-2024 Consolidated Plan objectives were conducted in several methods: community outreach and housing needs surveys, public meetings, stakeholder interviews, and public hearings. Significant outreach efforts were made to the public, faith-based organizations, educational institutions, housing services, and health and social service organizations (including organizations providing services to homeless persons and families, persons with HIV/AIDS, victims of domestic violence, senior citizens, and extremely low to low-income populations).

The PY 2023 Annual Action Plan goals were established based on highest priority needs identified during the 2020-2024 Community Needs Assessment. Based upon the input received by the community and council, high priorities were identified as homeless services, fair housing, emergency & ADA home repairs, mobile home repairs, code enforcement, ADA improvements, a low-barrier homeless shelter, affordable housing and tenant-based rental assistance.

The 2023 Action Plan 30-day public comment period seeking community input was held from March 17, 2023, through April 17, 2023. The draft PY 2023 Action Plan was available for review on the City's website at www.visalia.city. The City took several steps to seek community input on the draft PY 2023 Action Plan, by publishing a English and Spanish public notice in the Visalia Times Delta on March 15th, March 17th, and March 31st, PY 2023, the City's website, the City's social media outlets, and the Kings Tulare Homeless Alliance listserv. The following community and city council meetings were held to review the draft Action Plan and obtain public comment. • City Council Public Hearing on April 3, 2023, at 7:00pm • Citizens Advisory Committee Meeting on April 5, 2023, at 5:30pm • City Council Public Hearing on April 17, 2023, at 7:00pm

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Citizen Participation Outreach
Sort
Order
Mode of
Outreach
Target of
Outreach
Summary of
response/attendance
Summary of
Comments
received
Summary of
comments not
accepted and reasons URL (If applicable)
1 Newspaper Ad Non-targeted/broad
community
English/Spanish public notice
published in the Visalia Times
Delta on 3/17/23 & 3/31/23.

Comments
to be added. N/A
2 Internet
Outreach
Non-targeted/broad
community
English/Spanish public notice and
draft 2023 AAP were available on
the City's website from 3/17/23 -
4/3/23.

Comments
to be added. N/A
www.visalia.city/depts
/finance/housing_n_cd
bg_services/public_not
ices.asp.
3 Internet
Outreach
Non-targeted/broad
community
City social media posts on City's
Facebook, Instagram, and Twitter
pages.

Comments
to be added. N/A
4 Listserv Notice Non-targeted/broad
community
Approximately 330 receipts were
notified on the Kings Tulare
Homeless Alliance listserv notice.

Comments
to be added. N/A
5 Public Hearing Non-targeted/broad
community
City council meeting to review
draft 2023 Action Plan and obtain
public comment was held on
4/3/23
Comments
to be added N/A
6 Public
Meeting
Non-targeted/broad
community
Citizens Advisory Committee
community meeting to review
draft and obtain public comment
was held on 4/5/23.

Comments
to be added. N/A
8 Public Hearing Non-targeted/broad
community
Public hearing to approve the 2023
Action Plan and authorize
submission of the plan to HUD
held on 4/17/23.

Comments
to be added. N/A
Table 4 – Citizen Participation Outreach
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Expected Resources
AP-15 Expected Resources – 91.220(c)(1,2)
Introduction
The Program Year (PY) 2023, CDBG estimated budget consists of $1,200,000 in estimated entitlement funds, and $50,000 in estimated program income for a total of $1,250,000 CDBG funds. The PY 2023, HOME estimated budget consists of $545,000 in HOME funds, and $800,000 in estimated program income for a total of $1,345,000. The City currently does not have an Emergency Solutions Grant (ESG) or Housing Opportunities for Persons with AIDS (HOPWA) grant. The Expected Amount Available Remainder of ConPlan average annual allocation multiplied by 1 year to equal total remainder of ConPlan. Each program year the Expected Amount Available Remainder of ConPlan is subtracted by the current grant allocation.

Anticipated Resources
Program
Source
of Funds Uses of Funds
Expected Amount Available Year 4 Expected
Amount
Available
Remainder
of ConPlan
$ Narrative Description
Annual
Allocation:
$
Program
Income:
$
Prior Year
Resources:
$
Total:
$
CDBG Public
Federal
Admin,
Public Services,
Affordable
Housing, and
Public
Improvements

$1,200,000 $50,000 $0 $1,200,000 $1,200,000 The estimated PY 2023 CDBG resources include $1,200,000 in entitlement funds,
and $50,000 in program income, for a total
of $1,250,000 in CDBG funds.
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Program
Source
of Funds Uses of Funds
Expected Amount Available Year 4 Expected
Amount
Available
Remainder
of ConPlan
$ Narrative Description
Annual
Allocation:
$
Program
Income:
$
Prior Year
Resources:
$
Total:
$
HOME Public
Federal
Admin,
Homebuyer
Assistance, and
Multifamily Rental
New Construction

$545,000 $800,000 $0 $1,345,500 $545,000

The estimated PY 2023 HOME resources
include $545,000 in entitlement funds, and
$800,000 in program income for a total of
$1,345,000 in HOME funds.

Table 5 - Expected Resources – Priority Table

Explain how federal funds will leverage those additional resources (private, state, and local funds), including a description of how matching requirements will be satisfied
The City leverages both federal and local housing funds by supporting non-profit organizations that develop affordable housing. The City, or its partners, provides matching funds for housing related services to several programs, which includes the following:
• SHE-CHDO Scattered Single Family Acquisition/Rehabilitation/Resale. Scattered Site Acquisition, Rehabilitation and Resale of Single- Family Property Program will be administered and operated through the City’s certified Non-Profit, designated Community Housing Development Organization (CHDO), currently Self-Help Enterprises (SHE). • SHE-CHDO Scattered Multi-Family Site Acquisition/Rehabilitation/Rent. For example, the Lofts Project is the development of an 80-unit multi-family affordable housing complex that is budgeted above $25 million. HOME funds will be leverage with the various other funding sources, such as, No Place Like HOME Program (NPLH), Multifamily Housing Program (MHP), and the Infill Infrastructure Grant (IIG). • Voucher Program – used as a match to receive Tulare Housing First grants to provide permeant supportive housing vouchers. • First-Time Homebuyers Program – leveraged with private first position loans to assist First-Time Homebuyers purchase a home.

Below is a list of potential financial resources considering a part of the City’s overall financial plan to address priority needs and specific 399

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objectives identified in the Consolidated Plan.
• Housing Authority of Tulare County (HATC) a public housing authority with jurisdiction within the City and the County. • Low-Income Housing Tax Credit Program (LIHTC): The LIHTC program provides federal and state tax credits for private developers and investors who agree to set aside all or an established percentage of their rental units for low-income households for no less than 30 years.
• Multi-Family Housing Program: If California’s Housing and Community Development Department awards Multi-Family Housing Program loans to assist rental housing developments affordable to low-income households in the City, the City will assist the developers with identifying local funding.
• The City will also be receiving on an annual basis, Permanent Local Housing Allocation (PLHA) funding which will assist with matching requirements.
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If appropriate, describe publically owned land or property located within the jurisdiction that may be used to address the needs identified in the plan The City of Visalia does not currently own any land considered viable for the needs and uses identified in the plan. However, there is no shortage or available land for these purposes, as discussed below.

Discussion
The Regional Housing Needs Assessment (RHNA) is part of a statewide mandate to address housing issues that are related to future growth in a region. State housing element law assigns the responsibility for preparing the RHNA for the Tulare County region to the Tulare County Association of Governments (TCAG). TCAG, and other California councils of governments (COGs), undertake the RHNA process prior to each housing element cycle. The current RHNA is for the six-housing element cycle and covers a 9.75- year projection period from January 1, 2014, to September 30, 2023. The City of Visalia has conducted an analysis and concludes that Visalia has adequate sites to accommodate its RHNA allocation for Extremely Low, Very Low, and Low-Income categories.

The City Planning Department lists lands available for development in its sites inventory list. However, it is undetermined as to who will develop and when development will occur. A comparison of Regional Housing Need and Residential sites is listed in Table 1-41 from the Draft Housing Element. The City approved 2,835 units between 2014 and 2018, consisting of 2,486 single-family units and 400 multi- family units (see SP-05 attachment - Regional Housing Need and Sites Inventory). If constructed, there would be a surplus of units for extremely low income: 210 units, low income: 514 units, moderate income: 675 units, and above moderate income: 3,232 units. 401

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Annual Goals and Objectives

AP-20 Annual Goals and Objectives
Goals Summary Information
Sort
Order Goal Name
Start
Year
End
Year Category
Geographic
Area
Needs
Addressed Funding Goal Outcome Indicator
1 Increase
affordable
housing
2020 2025 Affordable
Housing
Citywide Affordable
Housing
HOME:
$1,265,500
Rental units constructed: 22 Household
Housing Unit;

2 Create
suitable living
environment
2020 2025 Affordable
Housing
Citywide/
LMI Tracts
Affordable
Housing
Neighborhood
Preservation
CDBG:
$250,000

Homeowner Housing Rehabilitated: 7
Household Housing Unit;
Housing Code Enforcement/Foreclosed
Property Care: 200 Household Housing Unit
3 Address
community/
special needs
services
2020 2025 Homeless
Non-
Homeless
Special Needs
Citywide Shelter and
counseling for
the homeless
Public Services
CDBG: $57,500 Public service activities for Low/Moderate Income Housing Benefit: 50 Households
Assisted
4 Address
homeless
needs
2020 2025 Homeless Citywide Shelter and
counseling for
the homeless
Public Services
CDBG: $70,000 Public service activities other than
Low/Moderate Income Housing Benefit:
400 Persons Assisted; Public service
activities for Low/Moderate Income
Housing Benefit: 13 Households Assisted

5 Enhance
community
development
2020 2025 Non-Housing
Community
Development
LMI Tracts Improve
Community and
Public Facilities
CDBG:
$622,500
Public Facility or Infrastructure Activities
other than Low/Moderate Income Housing
Benefit: 50 Persons Assisted

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Sort
Order Goal Name
Start
Year
End
Year Category
Geographic
Area
Needs
Addressed Funding Goal Outcome Indicator
6 Program and
planning
administration
2020 2025 Program
administration
funds
Citywide Community
Development
CDBG:
$250,000
HOME:
$79,500
Other: 1 Other
Table 6 – Goals Summary

Goal Descriptions
1 Goal Name Increase affordable housing
Goal Description Increase the amount of affordable housing stock in the City of Visalia with the construction of 80 units, of which 11 new LMI multi-family rental units will be HOME funded on a property located at 300 E. Oak Avenue. To provide HOME-CHDO mulit- family complex funding. HOME-CHDO project to be determined, at least 11 HOME assisted units.
2 Goal Name Create suitable living environment
Goal Description Code enforcement inspection services for an estimated 200 units within deteriorated or deteriorating low-moderate income eligible areas to arrest the decline of the area. An Owner-Occupied Senior Mobile Home Program 3 Goal Name Address community/special needs services
Goal Description Provide vital public services which include homeless case management, homeless outreach services, homeless prevention mortgage/rental and utilities assistance, and fair housing.
4 Goal Name Address homeless needs
Goal Description CDBG funds will be provided for annual Point-In-Time counts, project homeless connect and voucher match case management
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5 Goal Name Enhance community development
Goal Description Improve Visalia ADA infrastructure. The location of such facilities will be determined however, improvements will be made in designated LMI tracts in the City. 6 Goal Name Program and planning administration
Goal Description Fund planning and administration activities by City staff to administer the CDBG and HOME Program funds.

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Projects
AP-35 Projects – 91.220(d)
Introduction
Program Year 2023 CDBG and HOME Projects were established based on the high priority needs identified in the 2020-2024 Consolidated Plan Needs Assessment and Strategic Plan. The Consolidated Plan goals below address the high priority needs and serve as the foundation for strategic actions the City will undertake. These goals are based on the ConPlan’s Needs Assessment and Housing Market Analysis sections as well as community outreach conducted:
• Increase affordable housing
• Create suitable living environment
• Address community/special need services
• Address homeless needs
• Enhance community development
• Program planning & administration
The City's PY 2023 estimated CDBG budget includes $1,200,000 in CDBG grant funds; and $50,000 in program income. The City's PY 2023 estimated HOME budget includes $545,000 in HOME funds; and $800,000 in program income. Any increase or decrease of PY 2023 CDBG annual allocation and/or program income will be directed toward CDBG ADA improvement projects. Any increase or decrease of PY 2023 HOME annual allocation and/or program income will be directed toward HOME-CHDO Project.

Projects
# Project Name
1 2023 HOME Administration
2 2023 The Lofts Project
3 2023 HOME CHDO Project
4 2023 CDBG Administration
5 2023 Address Homeless Needs - Public Services
6 2023 Address Community/Special Needs Services
7 2023 Senior Mobile Home Repair Program
8 2023 Code Enforcement
9 2023 ADA Compliance Projects
Table 7 - Project Information

Describe the reasons for allocation priorities and any obstacles to addressing underserved 405

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needs
The projects will address the priority needs described in the Consolidated Plan by providing direct homeless services, homeless prevention services, fair housing services, code enforcement inspections to maintain neighborhood stabilization, housing rehabilitation program, affordable housing options for the LMI population, and ADA compliance projects. An obstacle in addressing underserved needs include needs outweighing funding resources. Nevertheless, the City worked resourcefully in combing multiple funding sources to maximize the allocation of resources to address underserved community needs.

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AP-38 Project Summary
Project Summary Information
1 Project Name 2023 HOME Administration
Target Area Citywide
Goals Supported Program and planning administration
Needs Addressed Community Development
Funding HOME: $79,500
Description 2023 HOME Administration and Planning.

Target Date 6/30/2024
Estimate the number and
type of families that will
benefit from the proposed
activities
N/A
Location Description Citywide
Planned Activities 2023 HOME Administration and Planning. 2 Project Name 2023 The Lofts Project
Target Area Citywide
Goals Supported Increase affordable housing
Needs Addressed Affordable Housing
Funding HOME: $634,375
Description Construction of an 80-unit mulit-family rental complex, of which 11-units will be HOME funded.

Target Date 6/30/2025
Estimate the number and
type of families that will
benefit from the proposed
activities
11 LMI households are expected to benefit from the proposed activity.

Location Description 300 E. Oak Avenue, Visalia, CA 93291 Planned Activities The City will provide funding toward Self-Enterprises, Inc. (SHE), to build 11 of the 80 new LMI multi-family rental units.
3 Project Name 2023 HOME CHDO Project
Target Area Citywide
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Goals Supported Increase affordable housing
Needs Addressed Affordable Housing
Funding HOME: $631,125
Description First Time Homebuyer Program
Target Date 6/30/2025
Estimate the number and
type of families that will
benefit from the proposed
activities
11 LMI households are expected to benefit from the proposed activity.

Location Description Citywide - TBD
Planned Activities HOME CHDO Mulit-family Project TBD
4 Project Name 2023 CDBG Administration
Target Area Citywide
Goals Supported Program and planning administration
Needs Addressed Community Development
Funding CDBG: $250,000
Description 2023 CDBG Administration and Planning
Target Date 6/30/2024
Estimate the number and
type of families that will
benefit from the proposed
activities
N/A
Location Description Citywide
Planned Activities 2023 CDBG Administration and Planning 5 Project Name 2023 Address Homeless Needs - Public Services Target Area Citywide
Goals Supported Address homeless needs
Needs Addressed Public Services
Funding CDBG: $70,000
Description Continuum of Care Point in Time survey and LINC services.

Permanent Supportive Housing Voucher match.
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Target Date 6/30/2024
Estimate the number and
type of families that will
benefit from the proposed
activities
413 low-income homeless individuals.

Location Description Citywide
Planned Activities Continuum of Care Point in Time survey and LINC services.

Permanent Supportive Housing Voucher match.
6 Project Name 2023 Address Community/Special Needs Services Target Area Citywide
Goals Supported Address community/special needs services Needs Addressed Public Services
Funding CDBG: $57,500
Description Homeless outreach - case management, supportive services, security deposits, rental application fees, legal document assistance; homeless prevention - rental/mortgage assistance and utilities assistance, and fair housing education.

Target Date 6/30/2024
Estimate the number and
type of families that will
benefit from the proposed
activities
50 low-moderate households
Location Description City wide
Planned Activities Homeless services, homeless prevention, and fair housing. 7 Project Name 2023 Senior Mobile Home Repair Program
Target Area Citywide
Goals Supported Create suitable living environment
Needs Addressed Neighborhood Preservation
Funding CDBG: $75,000
Description Senior Mobile Home Repair Program to owner occupied low- income seniors and/or disabled persons.

Target Date 6/30/2024
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Estimate the number and
type of families that will
benefit from the proposed
activities
7 low-income seniors and/or disabled persons.

Location Description Citywide. Sites are to be determined.

Planned Activities Senior Mobile Home Repair Program to owner occupied low- income seniors and/or disabled persons.
8 Project Name 2023 Code Enforcement
Target Area LMI Tracts
Goals Supported Create suitable living environment
Needs Addressed Neighborhood Preservation
Funding CDBG: $175,000
Description 2023 Code Enforcement services in deteriorating or deteriorated low-moderate-income areas to arrest the decline of the area.

Target Date 6/30/2024
Estimate the number and
type of families that will
benefit from the proposed
activities
200 LMI households are expected to benefit from the proposed activity.

Location Description LMI target areas.

Planned Activities 2023 Code Enforcement services in deteriorating or deteriorated low-moderate-income areas to arrest the decline of the area. 9 Project Name 2023 ADA Compliance Projects
Target Area LMI Tracts
Goals Supported Enhance community development
Needs Addressed Improve Community and Public Facilities Funding CDBG: $622,500
Description 2023 ADA compliance projects and public infrastructure improvements.

Target Date 6/30/2024
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Estimate the number and
type of families that will
benefit from the proposed
activities
50 LMI persons are expected to benefit from the proposed activities.

Location Description LMI Target Areas.

Planned Activities 2023 ADA compliance projects and public infrastructure improvements.
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AP-50 Geographic Distribution – 91.220(f)
Description of the geographic areas of the entitlement (including areas of low-income and minority concentration) where assistance will be directed Many of the CDBG activities funded in 2023 are offered citywide to low- and moderate-income households. However, for certain CDBG programs, such public infrastructure improvements, and code enforcement are directed to neighborhoods that qualify for CDBG funds on an "area benefit" basis. An area benefit activity is one that is available to benefit all the residents of an area which is:
• Primarily residential and
• Where 51% of the population is low- and moderate-income Except for the HOME-funded multi-family rental housing units to be built (The Lofts) which is located at 300 E Oak Avenue all other programs are to be administered citywide, or within the CDBG Target area.

Geographic Distribution
Target Area Percentage of Funds
Citywide 85
LMI Tracts 15
Table 8 - Geographic Distribution

Rationale for the priorities for allocating investments geographically Entitlement funds will be distributed citywide as eligible. However, CDBG funds will be utilized in CDBG Target areas for Code Enforcement, and ADA Improvements. A presumed Benefit project, such as an ADA improvement project or low-and-moderate-income residential areas in need of access, would be applicable. CDBG funding directed toward public services is a citywide public service benefit. Public Facilities are based upon CDBG requirements, such as the area benefit noted above, limited clientele, or income qualifications. Affordable housing will be pursued citywide, which encompasses CDBG Target Areas. Other programs may benefit within the CDBG Target areas as well, however, are allowed citywide, based upon income eligibility.

Discussion

The Low-and Moderate-Income Concentration Census Tract Map that is being utilized for the 2023 Action Plan and is based on the Low-and Moderate-Income Summary Data (LMISD) provided on HUD Exchange website.

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Affordable Housing
AP-55 Affordable Housing – 91.220(g)
Introduction
The AAP must specify goals for the number of homeless, non-homeless, and special needs households to be provided affordable housing within the program year. The AAP must also indicate the number of affordable housing units that will be provided by program type, including rental assistance, production of new units, rehabilitation of existing units, or acquisition of existing units. For this section, the term “affordable housing” is defined in the HOME regulations at 24 CFR 92.252 for rental housing and 24 CFR

92.254 for homeownership.

Findings in the data, included within the Strategic Plan, show that there is not an adequate amount of local housing affordable to LMI households, especially for extremely low- and very low-income households. According to the HUD data reports there is sufficient housing units for the various income categories. After analysis, the only income category that truly does have enough housing is the 50-80% AMI. The following data (CHAS 2014-2018) supports this housing deficit/surplus:
• 0-30% AMI: There are 4,170 households living in this income category, yet there are only 2,610 rental units available that are affordable to these households in the City. • 30-50% AMI: There are 4,530 households living in this income category yet there are only 2,935 units available.
• 50-80% AMI: There are 5,880 households in this income category and there are 1,650 units.

Tables 33 and 36 included within the Strategic Plan, MA-15 section show the recent changes to factors effecting affordability including income, rent and value. Median income has increased 2.5% since 2015 and when compared to the growth in median contract rent (+7.2%), rental housing prices are outpacing income growth. This may continue to strain affordability in the rental housing market, and lead to higher rates of housing cost burden, especially for LMI households. However, when looking at the owner market, ownership may be more attainable now than it was previously in 2017. This is evidenced by the fact that median income growth has increased, while median home values have declined over 10%.

One Year Goals for the Number of Households to be Supported Homeless 0
Non-Homeless 31
Special-Needs 0
Total 31
Table 9 - One Year Goals for Affordable Housing by Support Requirement

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One Year Goals for the Number of Households Supported Through Rental Assistance 0
The Production of New Units 11
Rehab of Existing Units 7
Acquisition of Existing Units 0
Total 18
Table 10 - One Year Goals for Affordable Housing by Support Type

Discussion
Staff works with its non-profit partner SHE to include additional types of acquisition, such as vacant, infill and reconstruction. As funding, through PI becomes available, it would be directed toward SHE CHDO acquisition rehabilitation projects, including the Lofts Project. The 2023 Action Plan includes the development of 11 HOME-assisted affordable rental units with the Lofts Project, and 7 mobile home repairs with the Senior Mobile Home Repair Program.

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AP-60 Public Housing – 91.220(h)
Introduction
HATC works closely with the City, Continuum of Care “Alliance” and the recently formed Homeless Resource Task Group. Actions planned by the PHA this year are referenced below. HATC owns/manages 179 Public housing units in Visalia and manages another 764 affordable housing units through the City of Visalia. HATC has a master lease with Family Services of Tulare County (FSTC) to house families that participate in the rapid rehousing and domestic violence programs that FSTC administers within the City of Visalia. Through a partnership with Tulare County Health & Human Services Agency (TCHHSA) Mental Health, HATC manages Clark Court, Transitional Living Center, and East Tulare Cottages which house and provide supportive services for individuals that participate in TCHHSA Mental Health programs.

Actions planned during the next year to address the needs to public housing HATC will continue to own and manages 179 public housing units in the City. HATC also owns and manages an additional 764 affordable housing units. There is currently no plan to purchase additional public-housing units, nor do they plan on removing any units from their inventory. Their current projection is for an investment of $375,500 in Capital Fund improvements during the FY 2023. There is no project based rental assistance units within the City. HATC expenditures cover maintenance and rehabilitation in public-housing units within the City. HATC's Capital Fund expenditures will cover a large range of projects, including roofing replacement, landscaping improvements, carpet replacement along with air conditioning and heating unit improvements. HATC acquired vacant land at 830 E. Roosevelt Avenue in Visalia to develop a mulit-family development, with a total of four (4) units for rental to qualified low-income households. (Data source: HATC November 2021).

Actions to encourage public housing residents to become more involved in management and participate in homeownership
HATC created a Resident Council composed of five residents from HUD funded programs (Multifamily Housing, LIHTC, HOME, Section 8 Housing Choice Vouchers, and public housing). The Resident Council works with HATC staff on evaluating the effectiveness and efficiency of existing rental assistance programs. This structure was put into place to give public housing residents the opportunity to provide input on necessary program modifications, through the Council members. HATC is proactive in the inclusion of public-housing residents in the policy making process. As required, two public housing tenants sit on the HATC Commission board. Between the Resident Council and tenant representation on the Board an equitable and transparent policy making process has been put into place.

A vital driving factor that continues to influence HATC programs is the promotion and goal of tenant self-sufficiency. HATC views homeownership as a long-term goal for most program participants. HATC staff works with tenants to effectively provide them with the necessary resources to achieve homeownership. HATC’s Annual Re-Examination Notice provides public-housing participants with an 415

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extensive referral list that aids with homeownership. Their list includes programs managed by: CSET, City of Visalia, Habitat for Humanity, CalHFA, and Self-Help Enterprises. HATC’s program coordinator works with any interested public housing tenant to effectively inform them of all the different programs and services available to them. Effective collaboration between their agency and other public and nonprofit agencies is imperative to help promote homeownership among all HATC’s tenants. Lastly, HATC created “RentTrack Payment, an online payment system which will allow public housing residents to utilize their rental payments made on time to raise or build individual credit scores. RentTrack has increased credit scores an average of 29 points in just two months and 132 points over a 2-year period.

If the PHA is designated as troubled, describe the manner in which financial assistance will be provided or other assistance
HATC is not designated as troubled.

Discussion
See discussion above.
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AP-65 Homeless and Other Special Needs Activities – 91.220(i) Introduction
This section describes the City’s one-year goals and the specific action steps it will undertake in the program year to carry out the homeless strategy outlined in the ConPlan’s SP-60 Homelessness Strategy.

This section will also describe the jurisdiction’s goals and specify the activities it will undertake to serve the housing and supportive service needs of non-homeless populations who require supportive housing.

Describe the jurisdictions one-year goals and actions for reducing and ending homelessness including
The City has allocated over $2 million of CDBG funds for the development of a Low-Barrier Navigation Center for people experiencing homelessness. The City also allocating Permanent Local Housing Allocation (PLHA) and Low-Mod Successor Agency Housing (SAH) funds toward the development and operation of the Project. The project is expected to begin construction in Program Year 2023. The Visalia Navigation Center anticipates having a 100-bed public facility to house individuals and families experiencing homelessness. The Visalia Navigation Center will follow “Housing First” practices and work closely with the local Continuum of Care for the Visalia region to house individuals and families quickly into rapid rehousing, transitional housing, and permanent housing.

Reaching out to homeless persons (especially unsheltered persons) and assessing their individual needs
The City will continue targeted outreach efforts towards unsheltered homeless persons through collaborative efforts with the Alliance Housing Navigators, Family Services, Kings View PATH Team, and Tulare County Mental Health Crisis Team. These organizations canvas the City to conduct outreach to people experiencing homelessness and connect them to services. Client information is included in the local Homeless Management Information System (HMIS) so the outreach teams can remain apprised of client status on the housing priority list and other community referrals.

The City will also continue to support the Alliance’s outreach efforts to persons experiencing homelessness through the PIT survey completed in January. The PIT survey provides a snapshot of the adults, children in households and unaccompanied youth living in the City of Visalia who meet HUD’s definition of homelessness. Information gathered through the PIT is used to understand the causes and trends over time of homelessness, as well as to determine the unmet shelter and service needs of the homeless.

Addressing the emergency shelter and transitional housing needs of homeless persons The City is in the planning phase of developing a low-barrier Navigation Center within the City of Visalia.

A low-barrier Navigation Center will assist in proving solution to create safe and successful permanent 417

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exits from homelessness using a Housing First Approach. A Housing First Approach will connect homeless individuals to permanent housing without preconditions and barriers to entry, such as sobriety, treatment, or service participation requirements. Project implementation expected to begin in Program Year 2023.

The Sequoia Village Project is a 50-unit motel that was recently acquired through California Department of Housing and Community Development Project Homekey funds to provide immediate shelter to homeless individuals in need of shelter, who are experiencing effects of COVID-19. The City is partnering with the County to rehabilitate the 50-unit motel to provide permanent supportive/affordable housing units for chronically homeless individuals. Tulare County Mental Health services will provide onsite wrap around services to ensure tenants stability.

Eden House is a 22-bed transitional/bridge facility recently opened in 2020, located at 1627 S. Garden St., Visalia, which will provide beds for residents for a period of 60-90 days (or up to a maximum period of 6 months with an approved extension), who are awaiting permanent supportive housing (PSH) or Rapid Re-Housing (RRH) placements through various funding programs. Eden's House provides extensive on-site wrap around services including mental health assistance and case management.

The Visalia Homeless Center managed by St. Paul’s Episcopal Church Rev. Suzy Ward oversees and operates a low barrier warming center within the City of Visalia each winter. The warming center is a low-barrier emergency shelter that provides 90 - 100 homeless individuals’ overnight shelter. The warming center averages 75 visitors a night from December 1st through March 31st. The City has entered into a 4-year contract agreement with Visalia Homeless Center to operate a warming Center in the City of Visalia with use of Permanent Local Housing Allocation (PLHA) funds.

Helping homeless persons (especially chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth) make the transition to permanent housing and independent living, including shortening the period of time that individuals and families experience homelessness, facilitating access for homeless individuals and families to affordable housing units, and preventing individuals and families who were recently homeless from becoming homeless again
Visalia supports and collaborates with local service providers, through the Alliance, to assist homeless individuals and families. Funding priorities include supporting existing high performing housing first rapid rehousing and permanent supporting housing projects.

Funding allocations include:
• Housing Successor which provides case management/supportive services and street outreach. • Family Services matching funds for case management (public services) to support the Tulare Housing First Shelter Plus Care project. This project provides case management services to 14 418

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chronically homeless individuals who receive a permanent supportive housing. • Kings View Behavioral Health provides public services, including meals for Visalia’s homeless. • ECO program, which is a partnership that includes the Tulare County Workforce Investment Board, Caltrans, and ABLE Industries.
• Property acquisition and rehab housing projects funded through HOME funds and other city- funding pools.
• CoC and City-funded programs/projects that benefit the homeless • Special needs project and programs that serve these vulnerable subpopulations include: CSET Permanent Supportive Housing and Rapid Rehousing, Family Services Permanent Supportive Housing and Transitional Housing, Turning Point and Tulare County HHSA provide PSH projects for chronically homeless individuals and families and/or families with children. The Veterans’ Administration, in conjunction with the Housing Authority of Tulare County, operates the VASH project and Westcare operates the SSVF project that serves eligible veterans and their families.

Uplift Families operates a Transitional Housing project for transitioning age youth.

Helping low-income individuals and families avoid becoming homeless, especially extremely low-income individuals and families and those who are: being discharged from publicly funded institutions and systems of care (such as health care facilities, mental health facilities, foster care and other youth facilities, and corrections programs and institutions); or, receiving assistance from public or private agencies that address housing, health, social services, employment, education, or youth needs.

The Alliance employs a Diversion Specialist that is responsible for developing and strengthening referral sources for people at-risk of becoming homeless. Additionally, the Diversion Specialist works with clients that present at any of the Coordinated Entry points to assist in diverting clients from homelessness.

Another important component of prevention/diversion is assisting households with income supports and connections to mainstream benefits. The SSI/SSDI Outreach, Access, and Recovery (SOAR) model is designed to increase access to SSI/SSDI for eligible homeless adults who are and have a mental illness and/or a co-occurring substance use disorder. Staff from all CoC-funded agencies is required to assist clients in obtaining these mainstream benefits. Participation by these agencies provides an effective method of assisting households who may otherwise pursue homelessness assistance.

Discussion
See discussion above. The City is not a recipient of HOPWA funding. 419

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AP-75 Barriers to Affordable Housing – 91.220(j)
Introduction:

The City of Visalia updated the Analysis of Impediments to Fair Housing Choice (AI) in 2020. The AI describes the impediments or barriers to affordable housing. The primary barriers to affordable housing include the following:
• Lending practices
• Access to Opportunity
• Housing Discrimination
• Development of Affordable Housing
• Land use policies and practices
Actions it planned to remove or ameliorate the negative effects of public policies that serve as barriers to affordable housing such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges, growth limitations, and policies affecting the return on residential investment
The City has taken actions in recent years to support residential development through changes in zoning, further streamlining permitting processes, and reducing impact fees. Visalia has made changes to residential zone districts following the City’s Housing Element update. The City increased the highest allowed multi-family density permitted by right to 15 to 35 units per acre, provided that the development does not exceed 80 units. Also, the City implemented an Affordable Housing Infill Incentive Program in 2017, which reduces Transportation Impact Fees for qualifying projects that meet the infill criteria outlined in the City’s Development Fee Schedule. In the downtown area, waivers for parking requirements have been given based on past use of the building spaces. There are multiple policies and programs in the 2020 Housing Element Update that address promoting incentives for affordable housing that include priority permit processing and modified zoning provisions. New programs in the Housing Element update, propose removing conditional use requirements for housing in certain commercial zone designations. These Housing Element Programs are organized into nine Goals categories, as follows:

1. New Construction - To provide a broad range of housing types and densities to meet the needs of all Visalia residents.

2. Mixed Use, Infill, and Downtown Development - To promote mixed use, infill, and Downtown development in Visalia.

3. Encourage Affordable Housing - To encourage construction and maintenance of affordable housing in Visalia.

4. Foreclosures - To prevent foreclosures, protect affected families, and stabilize neighborhoods impacted by foreclosures.
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5. Special Needs/Homeless- To provide a range of housing types and services to meet the needs of households with special needs within the city.

6. Housing Rehabilitation Program - To create and maintain healthy neighborhoods by improving the condition of the existing housing stock and providing for a variety of housing types, sizes, price ranges, and densities compatible with the existing character and integrity of residential neighborhoods.

7. Equal Opportunity Housing and Discrimination Prevention - To provide decent housing and a quality of living environment for all Visalia residents regardless of age, religion, race, creed, gender, sexual orientation, marital status, ancestry, national origin, disability, economic level, and other arbitrary factors.

8. Energy Conservation - To encourage energy efficiency in all new and existing housing.

9. Implementation Monitoring - To ensure that Housing Element programs are implemented on a timely basis and progress of each program is monitored and evaluated annually.

In addition to exploring new policy and regulatory changes, the City will continue its efforts to carry out the following to remove barriers to affordable housing:
• Work with non-profit developers and other public agencies that increase Visalia’s supply of affordable housing
• Work with HATC to properly inform collaborating agencies at the local, state, and federal levels of the need for affordable housing in the City
• Facilitate the construction of affordable rental housing for very low and low-income households by providing regulatory (e.g., density bonus, expedited permit processing, deferred fees, or relaxed parking requirements) and financial incentives
• Support programs that keep people housed, such as tenant-based rental assistance and rapid rehousing
• Streamline permitting process for affordable housing
• Further incentives to developers for the development of affordable housing • Incorporate educational components regarding the importance of affordable housing into community outreach
• Encourage the development of smaller, more affordable units Discussion:

See above discussion.
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AP-85 Other Actions – 91.220(k)
Introduction:

The following section provides HUD with other activities, projects, and actions the City is undertaking to reduce homelessness and housing affordability. Examples include the completion of the AI and identifying the barriers and impediments to affordable housing, supporting homeless programs, public and private solutions for affordable, annual administration of CDBG and HOME funds and attendance of city meetings and CoC meetings.

Actions planned to address obstacles to meeting underserved needs City actions planned to address obstacles are referenced within the AI and listed herein. AI, Chapter VIII:

Actions includes the plan’s goals and recommended actions to reduce the barriers to affordable housing noted in AP-75.

Actions planned to foster and maintain affordable housing The City will continue to work closely with non-profit housing and service providers to collaborate on improving the awareness and expansion of available resources to address the needs of the homeless population. Staff has addressed the affordable housing programs for this program year throughout this report. Please refer to sections AP-20, AP 35, AP-38, and AP-55.

In addition to exploring new policy and regulatory changes, the City will continue its efforts to carry out the following to remove barriers to affordable housing:
• Work with non-profit developers and other public agencies that increase Visalia’s supply of affordable housing
• Work with the Housing Authority of Tulare County to properly inform collaborating agencies at the local, state, and federal levels of the need for affordable housing in the City • Facilitate the construction of affordable rental housing for very low and low-income households by providing regulatory (e.g., density bonus, expedited permit processing, deferred fees, or relaxed parking requirements) and financial incentives
• Support programs that keep people housed, such as tenant-based rental assistance and rapid rehousing
• Streamline permitting process for affordable housing
• Further incentives to developers for the development of affordable housing • Incorporate educational components regarding the importance of affordable housing into 422

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community outreach
• Encourage the development of smaller, more affordable units Actions planned to reduce lead-based paint hazards
Approximately 40% of the City’s housing stock was built prior to 1979 therefore work performed on these buildings must be carefully monitored for the presence of lead-based paint in compliance with HUD regulation. Currently the City’ housing rehabilitation or home improvement programs and down payment assistance programs require lead-based paint inspections and/or abatement. Applicants of these programs are provided brochures informing of the health risks of lead-based paint as part of the application process. In addition, City building inspectors and Code Enforcement staff are alerted to signs of this hazard as they perform their substandard housing inspections. The City requires its Subrecipients, Developer partners and rehabilitation contractors of federally funded programs to utilize safe practices and obtain certification through a HUD certified lead testing agency.

Actions planned to reduce the number of poverty-level families The City works with its non-profit partners to reduce the number of poverty-level families. The City will also continue to provide its non-profit partners with funding to acquire, rehabilitate, and sell and rent homes or multi-family units to income-qualifying households at or below 80% AMI.

Additionally, the City has made a commitment to improve the communication and service delivery capabilities of agencies and organizations that provide programs to assist the homeless. Specifically, Staff participates in the monthly Continuum of Care (Alliance) meeting, and various homeless task groups to identify funding and opportunities to provide Visalia’s homeless population with housing and service opportunities.

The City will also continue to partner with organizations to provide services and address the full range of needs of LMI families. Although there are coordinated programs and services to reduce poverty, it is recognized that many unmet needs will remain. The City will continue to work with its partners to identify and work toward meeting those needs by strategically focusing its resources and efforts.

Actions planned to develop institutional structure
The City is a charter city and is managed under a Council-manager form of government. City Council provides policy direction to the City Manager who is responsible for administering City operations. City Council members are the leaders and policymakers elected to represent the community and concentrate on policy that addresses the citizens’ needs and wishes. The City Manager is appointed by the City Council to carry out policy and ensure that the entire community is served. The legislative body is the City Council and City Councilmembers are the community’s decision makers. Visalia voters elect a 5-member Council to serve as the City's legislative and governing body. The members represent the City 423

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and their respective Districts, serve four-year terms and they select one member to serve as mayor and one to serve as vice- mayor. A general municipal election is held every two years in November, alternating between two and three positions each cycle.

The Finance Department, Housing Division oversees and administers the day-to-day activities of the CDBG, NSP1, HOME, PLHA, RDA Successor Agency Housing (SAH) and other state and federal funded programs. Staff works together with various City departments to develop programs and activities that improve low-and moderate-income neighborhoods throughout the City. The administration of program activities includes housing, public services, public facility, park and infrastructure improvements, and economic development activities.

Interdepartmental communication and collaboration are two strengths of the delivery system. City staff from various departments works with local organizations and agencies that assist low-income households and individuals. High priority needs were identified during the Consolidated Plan’s community engagement and public review periods.

During the Consolidated Plan public review period, these priorities were established. Additionally, input is received by the community, various committees, and City Council during the feedback period in developing the annual plan. The AAP is designed to address the needs and priorities identified within the ConPlan and direct limited funding available toward the highest needs.

Actions planned to enhance coordination between public and private housing and social service agencies
The City continues to participate in monthly Continuum of Care and quarterly Tulare County Homeless Task Force community meetings to enhance coordination between housing providers, government agencies, mental health, and other key stakeholders in the City. The purpose of these ongoing meetings is to establish a network of agencies to enhance the delivery of services to the homeless, disabled individuals and families, and others seeking services.

City staff meets with public officials, City departments, HATC, residents, and agencies to develop strategies for how best to invest grant funding to address discuss priority community needs. Staff met with the Citizens Advisory Committee (CAC), which acts as a liaison between the public, and the City Council concerning community needs. The Disability Advocacy Committee (DAC) has now become a part of the CAC. Therefore, City Staff has also met with the members of the DAC through meetings held with the CAC, to be advised on the needs of disabled persons in the community.

Discussion:

See above discussions.
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Program Specific Requirements
AP-90 Program Specific Requirements – 91.220(l)(1,2,4)
Introduction:

In the event final CDBG and HOME program entitlement and program income is higher or lower than expected herein, the City of Visalia may add, subtract, or transfer amounts among identified projects, as noted without publishing a substantial amendment, if the amount is below 75 % change, as per the approved Citizens Participation Plan. Any difference in CDBG funding will be reflected in the public infrastructure/ADA project line item and, if needed, public services to maintain compliance with the 15% cap and Administration; any difference in HOME funding will be reflected in SHE CHDO Acq/Rehab/construct or reconstruct SF or MF projects, and if needed Administration. The three-year period (2023, 2024 & 2025) will be used to determine that a minimum overall benefit of 70% of CDBG funds is used to benefit persons of low and moderate income.

Community Development Block Grant Program (CDBG)
Reference 24 CFR 91.220(l)(1)
Projects planned with all CDBG funds expected to be available during the year are identified in the Projects Table. The following identifies program income that is available for use that is included in projects to be carried out.

1. The total amount of program income that will have been received before the start of the next program year and that has not yet been reprogrammed 0

2. The amount of proceeds from section 108 loan guarantees that will be used during the year to address the priority needs and specific objectives identified in the grantee's strategic plan. 0

3. The amount of surplus funds from urban renewal settlements 0

4. The amount of any grant funds returned to the line of credit for which the planned use has not been included in a prior statement or plan 0

5. The amount of income from float-funded activities 0
Total Program Income: 0

Other CDBG Requirements

1. The amount of urgent need activities 0

2. The estimated percentage of CDBG funds that will be used for activities that benefit persons of low and moderate income. Overall Benefit - A consecutive period of one, two or three years may be used to determine that a minimum overall benefit of 70% of CDBG funds is used to benefit persons of low and moderate income. Specify the years covered that include this Annual Action Plan. 100.00% 425

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HOME Investment Partnership Program (HOME)
Reference 24 CFR 91.220(l)(2)

1. A description of other forms of investment being used beyond those identified in Section 92.205 is as follows:

No other form of investment shall be used beyond those identified in Section 92.205. 2. As it relates to the HOME funded owner-occupant Programs, all beneficiaries are owner occupants. As it relates to HOME funded rental programs, beneficiaries are tenants.

2. A description of the guidelines that will be used for resale or recapture of HOME funds when used for homebuyer activities as required in 92.254, is as follows:

First Time Homebuyer (FTHB), funds shall be provided as a Direct HOME subsidy- gap financing, as a second mortgage to households at or below 80% of the area median income. The property will maintain an affordability covenant as referenced under 24 CFR 92.254 (a) (4). The covenant shall remain for five (5) years when less than $15,000 is provided in gap financing Direct Subsidy to the homebuyer and shall be for a ten (10) year period when more than $15,000 up to $40,000 is provided in gap financing Direct Subsidy to the homebuyer. The “Owners Participation Agreement” (Covenant) shall begin the date the Deed of Trust is recorded. The Provision for the FTHB Program shall be “Recapture Provision” as per 24 CFR 92.254 (a) (5) (ii) (A) (1). The City may recapture the entire amount of the direct HOME assistance from the homeowner. The amount to be recaptured will not exceed the amount of net proceeds available at the time the home is sold. HOME rule limits recapture to available net proceeds, therefore, if net proceeds are insufficient for the city to recapture the full amount of the Direct HOME assistance, the City will recapture only what is available from net proceeds. This applies regardless of the nature of the sale (voluntary sales including short sales, and involuntary sales including foreclosures).

The SHE-CHDO Program utilizes the “Recapture Provision”. HOME funds are invested in the acquisition, rehabilitation, and/or new construction/reconstruction and Direct Subsidy shall be up to 10% of the total HOME investment (i.e., $280,000 acq. /Rehab cost X 10% = $28,000 Direct Subsidy to homebuyer), which shall be provided as a Second Mortgage to the qualifying new homebuyer. If the property is sold below fair market value, the difference between the fair market value and the purchase price is part of the HOME subsidy and provided directly to the homebuyer as a direct subsidy. In addition, any additional subsidy provided to the homebuyer to enable them to purchase the property, which includes down payment assistance, closing costs, interest subsidies, or other HOME assistance including any assistance that reduced the purchase price from fair market value to an affordable price, shall be recaptured.

A 30- year covenant shall be recorded to maintain affordability. The SHE-CHDO Program covenant shall use the “Recapture Provision”, as referenced under 24, CFR 92.254 (a) (5) (ii) (A) (1) and shall begin the date the Deed of Trust is recorded. In the case of the homebuyer selling the home during 426

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the affordability period, the City may recapture the entire amount of the direct HOME Subsidy and the difference between the fair market value and the purchase price, if the purchase price is below the fair market value, and any additional assistance as referenced above. The amount to be recaptured will not exceed the amount of net proceeds available at the time the home is sold.

HOME rule limits recapture to available net proceeds, therefore, if net proceeds are insufficient for the city to recapture the full amount of the Direct HOME assistance, the City will recapture only what is available from net proceeds. This applies regardless of the nature of the sale (voluntary sales including short sales, and involuntary sales including foreclosures).

Note: Staff works with the City Attorney in updating legal documents to comply with the funding source and type of program(s) administered.

The FTHB, SHE-CHDO Program loan documents were reviewed in 2017 by HUD. If HUD requests a copy for review, City Staff will again provide documents if required prior to implementing the program.

3. A description of the guidelines for resale or recapture that ensures the affordability of units acquired with HOME funds. See 24 CFR 92.254(a)(4) are as follows:

See Recapture provisions above.

4. Plans for using HOME funds to refinance existing debt secured by multifamily housing that is rehabilitated with HOME funds along with a description of the refinancing guidelines required that will be used under 24 CFR 92.206(b), are as follows:

This does not apply to Visalia. Please see discussion above.

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Appendix “A” – Summary Detail

Draft PY 2023-2024 Annual Action Plan Summary Detail

Table A-1: Draft PY 2023-2024 Annual Action Plan
Resources: CDBG HOME
2023 Annual Allocation $ 1,200,000 $ 545,000 2023 Program Income 50,000 800,000 Total 2023 CDBG and HOME Resources $ 1,250,000 $ 1,345,000 Expenditures:

Administration and Planning:

Administration $ 250,000 $ 79,500 Total Administration $ 250,000 $ 79,500

Public Services:

Kings Tulare Homeless Alliance $ 20,000 $ - Family Services Voucher Program 50,000 - Kings View PATH Program 50,000 - Fair Housing Education 7,500 - Total Public Services $ 127,500 $ -

Affordable Housing:

Senior Mobile Home Repair Program $ 75,000 $ - Code Enforcement 175,000 - HOME-CHDO Multi-Family Project 631,125
The Lofts Project - 634,375 Total Affordable Housing $ 250,000 $ 1,265,500

Public Facility Improvements:

ADA Compliance Projects – Tree Wells $ 622,500 $ - Total Public Facility Improvements $ 622,500 $ -

Total 2023 CDBG and HOME Expenditures $ 1,250,000 $ 1,345,000

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Table of Contents

Executive Summary ....................................................................................................................................... 3 AP-05 Executive Summary - 24 CFR 91.200(c), 91.220(b) ........................................................................ 3 PR-05 Lead & Responsible Agencies – 91.200(b) ...................................................................................... 7 AP-10 Consultation – 91.100, 91.200(b), 91.215(l) ................................................................................... 8 AP-12 Participation – 91.105, 91.200(c) ................................................................................................. 15 Expected Resources .................................................................................................................................... 18 AP-15 Expected Resources – 91.220(c)(1,2) ........................................................................................... 18 Annual Goals and Objectives ...................................................................................................................... 22 Projects ................................................................................................................................................... 25 AP-35 Projects – 91.220(d) ..................................................................................................................... 25 AP-38 Project Summary .......................................................................................................................... 27 AP-50 Geographic Distribution – 91.220(f) ............................................................................................. 33 Affordable Housing ..................................................................................................................................... 34 AP-55 Affordable Housing – 91.220(g) ................................................................................................... 34 AP-60 Public Housing – 91.220(h) ........................................................................................................... 36 AP-65 Homeless and Other Special Needs Activities – 91.220(i) ............................................................ 38 AP-75 Barriers to Affordable Housing – 91.220(j) .................................................................................. 41 AP-85 Other Actions – 91.220(k) ............................................................................................................ 43 Program Specific Requirements .................................................................................................................. 46 Appendix “A” – Summary Detail ................................................................................................................. 49

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Purpose of the Amendment
The purpose for the Program Year (PY) 2022 CDBG Annual Action Plan Amendment to appropriate $150,000 of CDBG program income received and reappropriate $7,500 of unspent CDBG fair housing funds for a total $157,500 to be direct to CDBG ADA compliance projects. The purpose for the PY HOME Annual Action Plan Amendment is to reappropriate $120,000 of unspent HOME Tenant-Based Rental Assistance (TBRA) funds to a HOME first time homebuyer assistance program. PY 2022 Action Plan Amendment changes are in blue.

Executive Summary
AP-05 Executive Summary - 24 CFR 91.200(c), 91.220(b)

2. Summarize the objectives and outcomes identified in the Plan Our strategy for community improvement using CDBG and HOME funds will focus on five broad goals.

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• Provide optimal program administration and oversight of the CDBG and HOME programs to continue planning efforts that address the needs of extremely low, very low, and low-income households and neighborhoods.

Details of our plan to meet these goals can be found in the strategies the City has identified below with the following labels:
• Increase affordable housing for LMI households in the City of Visalia • Create suitable living environments for renters/homeowners in the City of Visalia • Address community/special needs and services
• Address the needs of people experiencing homelessness • Enhance community development
• Provide efficient administration and oversight of the CDBG and HOME programs

4. Summary of Citizen Participation Process and consultation process The 2022 Annual Action Plan goals were established based on high priority needs as identified in the 2020-2024 ConPlan. The City used several community outreach methods including public meetings, two surveys, and stakeholder consultations. Efforts to reach populations underrepresented in the planning process of the ConPlan included discussions regarding the survey with various housing, social service, 432

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faith-based, and other organizations that provide services to the disabled, special needs, low income, and homeless population community. Many of the organizations that assisted in the effort to distribute the surveys posted them on their websites and sent notification to their partners and clientele. The surveys were provided in English and Spanish.

Several stakeholders were also consulted during public workshops, over the phone, and in-person at their offices. Such stakeholders included, but were not limited to, Housing providers, Health service providers, social service providers, Organizations representing protected classes, Fair housing, Broadband internet providers, Emergency management organizations, the Citizens Advisory Committee, the Disability Advocacy Committee, and additional local and regional stakeholders.

The Program Year 2022 Annual Action Plan 30-day public comment period took place from March 18, 2022 through April 18, 2022. A Public notice was published in the Visalia Times Delta on March 18, 2022 and April 1, 2022. The draft 2022 Annual Action Plan was available for review on the City's website at www.visalia.city. Public notices also sent to the Kings Tulare Homeless Alliance listserv and the City's social media channels. The City also held the following virtual community and city council meetings:
• City Council (Draft Review) on April 4, 2022 at 7:00pm • Citizens Advisory Committee (CAC) on April 6, 2022 at 5:30pm • City Council Public Hearing (Adoption) on April 18, 2022 at 7:00pm The Program Year 2022 Annual Action Plan Amendment 30-day public comment period took place from March 17, 2023, through April 17, 2023. A Public notice was published in the Visalia Times Delta on March 15, 2023, and March 17, 2023. The draft PY 2022 Annual Action Plan Amendment was available for review on the City's website at www.visalia.city. Public notices also sent to the Kings Tulare Homeless Alliance listserv and the City's social media channels. The City also held the following community and city council meetings:
• City Council (Draft Review) on April 3, 2023 at 7:00pm • Citizens Advisory Committee (CAC) on April 5, 2023 at 5:30pm • City Council Public Hearing (Adoption) on April 17, 2023 at 7:00pm

5. Summary of public comments
This could be a brief narrative summary or reference an attached document from the Citizen Participation section of the Con Plan.

Summary of comments will be added following the public comment period.

6. Summary of comments or views not accepted and the reasons for not accepting them 433

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All comments will be accepted and taken into consideration.

7. Summary
The City of Visalia conducted several public meetings and hearings to gather input and review the 2020- 2024 Consolidated Plan. In addition, the City held stakeholder meetings with multiple community and regional organizations and agencies providing services to low income and homeless populations. The City has reviewed several plans to gather information for the development of this Plan that included the City of Visalia Housing Element for 2020-2023, which was being drafted concurrently with the Consolidated Plan. A summary of the full citizen participation of the 2022 Annual Action Plan will be included as Attachment A.
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PR-05 Lead & Responsible Agencies – 91.200(b)

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AP-10 Consultation – 91.100, 91.200(b), 91.215(l)

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Table 2 – Agencies, groups, organizations who participated 1 Agency/Group/Organization Kings/Tulare Homeless Alliance Agency/Group/Organization Type Housing
Services-Persons with Disabilities
Services-homeless
Regional organization
What section of the Plan was addressed by
Consultation?
Housing Need Assessment
Public Housing Needs
Homeless Needs - Chronically homeless
Homeless Needs - Families with children
Homelessness Needs - Veterans
Homelessness Needs - Unaccompanied youth
Homelessness Strategy
Market Analysis
Anti-poverty Strategy
Briefly describe how the Agency/Group/Organization
was consulted. What are the anticipated outcomes of
the consultation or areas for improved coordination?
Consultation provided information; Continued partnership/collaboration through CoC meetings. Survey feedback presented the ConPlan High priority needs, 202 2 Action Plan through the listserv members who represent all the types of organizations listed above including service providers, and community stakeholders. The Continuum of Care, and Homeless Task Group meetings and feedback relate to the need for homeless housing. CDBG funding would assist KTHA to further meet the needs of the chronically homeless community. 2 Agency/Group/Organization Housing Authority of Tulare County Agency/Group/Organization Type PHA
What section of the Plan was addressed by
Consultation?
Housing Need Assessment
Public Housing Needs
Non-Homeless Special Needs
Briefly describe how the Agency/Group/Organization
was consulted. What are the anticipated outcomes of
the consultation or areas for improved coordination?
HATC provided input through the survey, recommending that the city make more funding available for the acquisition and rehabilitation of more affordable housing. HATC was also consulted in preparation of the Consolidated Plan and Annual Action Plan. 438

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7 Agency/Group/Organization Kings View Corporation
Agency/Group/Organization Type Services - Housing
Services-Elderly Persons
Services-Persons with Disabilities
Services-Persons with HIV/AIDS
Services-Victims of Domestic Violence
Services-homeless
What section of the Plan was addressed by
Consultation?
Homeless Needs - Chronically homeless
Homeless Needs - Families with children
Homelessness Needs - Veterans
Homelessness Needs - Unaccompanied youth
Homelessness Strategy
Non-Homeless Special Needs
Briefly describe how the Agency/Group/Organization
was consulted. What are the anticipated outcomes of
the consultation or areas for improved coordination?
Representative(s) contributed narrative and data to answer questions relevant to the Consolidated Plan and Annual Action Plan.
8 Agency/Group/Organization Citizens Advisory Committee Agency/Group/Organization Type Other government - Local What section of the Plan was addressed by
Consultation?
Housing Need Assessment
Non-Homeless Special Needs
Anti-poverty Strategy
Briefly describe how the Agency/Group/Organization
was consulted. What are the anticipated outcomes of
the consultation or areas for improved coordination?
Representative(s) contributed narrative and data to answer questions relevant to the Consolidated Plan and Annual Action Plan. A community meeting was also conducted on April 6, 2022 to review the draft 2022 Annual Action Plan.

Identify any Agency Types not consulted and provide rationale for not consulting 441

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Table 3 – Other local / regional / federal planning efforts

Narrative (optional)
None.
442

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AP-12 Participation – 91.105, 91.200(c)

1. Summary of citizen participation process/Efforts made to broaden citizen participation summarize citizen participation process and how it impacted goal setting
Outreach for the City of Visalia’s 2020-24 Consolidated Plan objectives were conducted in several methods: community outreach and housing needs surveys, public meetings, stakeholder interviews, and public hearings. Significant outreach efforts were made to the public, faith-based organizations, educational institutions, housing services, and health and social service organizations (including providing services to homeless persons and families, persons with HIV/AIDS, victims of domestic violence, senior citizens, and extremely low to low-income populations).

The 2022 Action Plan goals were established based on highest priority needs identified during the 2020-24 Community Needs Assessment. Based upon the input received by the community and council, high priorities were identified as homeless services, fair housing, home repairs, mobile home repairs, code enforcement, ADA improvements, a low-barrier homeless shelter, affordable housing, and tenant-based rental assistance.

The 2022 Action Plan 30-day public comment period seeking community input was from March 18, 2022, through April 18, 2022. The draft 2022 Action Plan was available for review on the City's website at www.visalia.city. The City took several steps to seek community input on the draft 2022 Action Plan, by public notices in the Visalia Times Delta on 3/18/22 and 4/1/22, City's website, City's social media outlets, and the Kings Tulare Homeless Alliance listserv. The following meetings were held to review the draft Action Plan and obtain public comment. • City Council Meeting on April 4, 2022 at 7:00pm
• Citizens Advisory Committee on April 6, 2022 at 5:30pm • City Council Public Hearing on April 18, 2022 at 7:00pm

The 2022 Action Plan Amendment 30-day public comment was held from March 17, 2023, through April 17, 2023. The draft 2022 Action Plan Amendment was available for review on the City's website. The City published public notices in the Visalia Times Delta on 3/15/23, 3/17/23, and 3/31/23, the City's website, the City's social media outlets, and the Kings Tulare Homeless Alliance listserv. The following community and city council meetings were held to review the draft PY 2022 Action Plan Amendment and obtain public comment. • City Council Meeting on April 3, 2023 at 7:00pm
• Citizens Advisory Committee on April 5, 2023 at 5:30pm • City Council Public Hearing on April 17, 2023 at 7:00pm 443

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Comments
to be added. N/A
2 Internet
Outreach
Non-targeted/broad
community
English/Spanish public notice and
draft 2022 AAP were available on
the City's website from 3/18/22 -
4/18/22.

Comments
to be added. N/A
4 Listserv Notice Non-targeted/broad
community
Approximately 330 receipts were
notified on the Kings Tulare
Homeless Alliance listserv notice.

Comments
to be added. N/A
5 Public Hearing Non-targeted/broad
community
City council meeting to review
draft 2022 Action Plan and obtain
public comment was held on
4/4/22
Comments
to be added N/A
6 Public
Meeting
Non-targeted/broad
community
Citizens Advisory Committee
community meeting to review
draft and obtain public comment
was held on 4/6/22.

Comments
to be added. N/A
8 Public Hearing Non-targeted/broad
community
Public hearing to approve the 2022
Action Plan and authorize
submission of the plan to HUD
held on 4/18/22.

Comments
to be added. N/A
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Sort
Order
Mode of
Outreach
Target of
Outreach
Summary of
response/attendance
Summary of
Comments
received
Summary of
comments not
accepted and reasons URL (If applicable)
9 Newspaper Ad Non-targeted/broad
community
English/Spanish public notice
published in the Visalia Times
Delta on 3/15/23, 3/17/23 &
3/31/23.

Comments
to be added. N/A
10 Internet
Outreach
Non-targeted/broad
community
English/Spanish public notice and
draft 2022 AAP Amendment were
available on the City's website
from 3/17/23 - 4/17/23.

Comments
to be added. N/A
www.visalia.city/depts
/finance/housing_n_cd
bg_services/public_not
ices.asp.
11 Internet
Outreach
Non-targeted/broad
community
City social media posts on City's
Facebook, Instagram, and Twitter
pages.

Comments
to be added. N/A
12 Listserv Notice Non-targeted/broad
community
Approximately 330 receipts were
notified on the Kings Tulare
Homeless Alliance listserv notice.

Comments
to be added. N/A
13 Public Hearing Non-targeted/broad
community
City council meeting to review
draft 2022 Action Plan and obtain
public comment was held on
4/3/23
Comments
to be added N/A
14 Public
Meeting
Non-targeted/broad
community
Citizens Advisory Committee
community meeting to review
draft and obtain public comment
was held on 4/5/23.

Comments
to be added. N/A
15 Public Hearing Non-targeted/broad
community
Public hearing to approve the 2022
Action Plan Amendment and
authorize submission of the plan
to HUD held on 4/17/23.

Comments
to be added. N/A
Table 4 – Citizen Participation Outreach
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Expected Resources
AP-15 Expected Resources – 91.220(c)(1,2)
Introduction
The Program Year (PY) 2022, CDBG estimated budget consists of $1,300,000 in entitlement funds, $50,000 in estimated program income, and $1,834,163 in prior year resources for a total of $3,184,163 CDBG funds. The PY 2022, HOME estimated budget consists of $507,520 in HOME funds, $200,000 in estimated program income for a total of $707,520. The City currently does not have an Emergency Solutions Grant (ESG) or Housing Opportunities for Persons with AIDS (HOPWA) grant. The Expected Amount Available Remainder of ConPlan is the first year 2020 grant allocation multiplied by 3 years to equal total remainder of ConPlan in program year 2020. Each program year the Expected Amount Available Remainder of ConPlan is subtracted by the current grant allocation.

The Program Year (PY) 2022 Action Plan Amendment includes, CDBG budget of $1,183,482 in actual entitlement CDBG funds, $200,000 in program income, and $1,834,163 in prior year resources for a total of $3,217,645 CDBG funds. The PY 2022, HOME budget of $546,791 in actual HOME entitlement funds, $200,000 in program income, and $120,000 in prior year resources for a total of $866,791.

Anticipated Resources
Program
Source
of
Funds Uses of Funds
Expected Amount Available Year 3 Expected
Amount
Available
Remainder
of ConPlan
$ Narrative Description
Annual
Allocation:
$
Program
Income:
$
Prior Year
Resources:
$
Total:
$
CDBG Public
Federal
Admin,
Public Services,
Affordable
Housing, and
Public
Improvements

$1,834,163 $200,000 $1,834,163 $3,217,645 $2,650,992 The estimated PY 2022 CDBG resources include $1,300,000 in entitlement funds,
$50,000 in program income, and $1,834,163
in prior year resources for a total of
$3,184,163 in CDBG funds.
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Program
Source
of
Funds Uses of Funds
Expected Amount Available Year 3 Expected
Amount
Available
Remainder
of ConPlan
$ Narrative Description
Annual
Allocation:
$
Program
Income:
$
Prior Year
Resources:
$
Total:
$
HOME Public
Federal
Admin,
Homebuyer
Assistance, and
Multifamily Rental
New Construction

$546,791 $200,000 $120,000 $866,791 $1,622,472

The PY 2022 HOME Amendment resources
include $546,791 in entitlement funds, and
$200,000 in program income for a total of
$866,791 in HOME funds.

Table 5 - Expected Resources – Priority Table

Explain how federal funds will leverage those additional resources (private, state, and local funds), including a description of how matching requirements will be satisfied
The City leverages both federal and local housing funds by supporting non-profit organizations that develop affordable housing. The City, or its partners, provides matching funds for housing related services to several programs, which includes the following:
• SHE-CHDO Scattered Single Family Acquisition/Rehabilitation/Resale. Scattered Site Acquisition, Rehabilitation and Resale of Single- Family Property Program will be administered and operated through the City’s certified Non-Profit, designated Community Housing Development Organization (CHDO), currently Self-Help Enterprises (SHE). • SHE-CHDO Scattered Multi-Family Site Acquisition/Rehabilitation/Rent. For example, the Lofts Project is the development of an 81-unit multi-family affordable housing complex that is budgeted above $25 million. HOME funds will be leverage with the various other funding sources, such as, No Place Like HOME Program (NPLH), Multifamily Housing Program (MHP), and the Infill Infrastructure Grant (IIG). • Voucher Program – used as a match to receive Tulare Housing First grants to provide permeant supportive housing vouchers. • First-Time Homebuyers Program – leveraged with private first position loans to assist First-Time Homebuyers purchase a home.

Below is a list of potential financial resources considered a part of the City’s overall financial plan to address priority needs and specific 447

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Annual Goals and Objectives

AP-20 Annual Goals and Objectives
Goals Summary Information
Sort
Order Goal Name
Start
Year
End
Year Category
Geographic
Area
Needs
Addressed Funding Goal Outcome Indicator
1 Increase
affordable
housing
2020 2025 Affordable
Housing
Citywide Affordable
Housing
HOME:
$796,041
Rental units constructed: 11 Household
Housing Unit;
Direct Financial Assistance to Homebuyers:
5 Households Assisted

2 Create
suitable living
environment
2020 2025 Affordable
Housing
Citywide/
LMI Tracts
Affordable
Housing
Neighborhood
Preservation
CDBG:
$300,000

Homeowner Housing Rehabilitated: 15
Household Housing Unit;
Housing Code Enforcement/Foreclosed
Property Care: 200 Household Housing Unit
3 Address
community/
special needs
services
2020 2025 Homeless
Non-
Homeless
Special Needs
Citywide Shelter and
counseling for
the homeless
Public Services
CDBG: $42,500 Public service activities for Low/Moderate Income Housing Benefit: 50 Households
Assisted
4 Address
homeless
needs
2020 2025 Homeless Citywide Shelter and
counseling for
the homeless
Public Services
CDBG: $65,000 Public service activities other than
Low/Moderate Income Housing Benefit:
400 Persons Assisted; Public service
activities for Low/Moderate Income
Housing Benefit: 13Households Assisted

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Sort
Order Goal Name
Start
Year
End
Year Category
Geographic
Area
Needs
Addressed Funding Goal Outcome Indicator
5 Enhance
community
development
2020 2025 Non-Housing
Community
Development
LMI Tracts Improve
Community and
Public Facilities
CDBG:
$2,555,145
Public Facility or Infrastructure Activities
other than Low/Moderate Income Housing
Benefit: 50 Persons Assisted
Overnight/Emergency Shelter/Transitional
Housing Beds added: 100 Beds
6 Program and
planning
administration
2020 2025 Program
administration
funds
Citywide Community
Development
CDBG:
$262,500
HOME:
$70,750
Other: 1 Other
Table 6 – Goals Summary

Goal Descriptions
1 Goal Name Increase affordable housing
Goal Description Increase the amount of affordable housing stock in the City of Visalia with the construction of 80 units, of which 11 new LMI multi-family rental units will be HOME funded on a property located at 300 E. Oak Avenue. To provide 5 first time homebuyer direct assistance for 5 newly constructed single-family homes located on NW 5th Avenue and N. Court Avenue.
2 Goal Name Create suitable living environment
Goal Description Code enforcement inspection services for an estimated 200 units within deteriorated or deteriorating low-moderate income eligible areas to arrest the decline of the area. An Emergency Repair and Accessibility Program and Owner - Occupied Senior Mobile Home Program. HOME funded Tenant-Based Rental Assistance (TBRA).
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3 Goal Name Address community/special needs services
Goal Description Provide vital public services which include homeless case management, homeless outreach services, homeless prevention mortgage/rental and utilities assistance, and fair housing.
4 Goal Name Address homeless needs
Goal Description CDBG funds will be provided for annual Point-In-Time counts, project homeless connect and voucher match case management
5 Goal Name Enhance community development
Goal Description Improve Visalia community facilities and infrastructure. The location of such facilities will be determined however, improvements will be made in designated LMI tracts in the City.
6 Goal Name Program and planning administration
Goal Description Fund planning and administration activities by City staff to administer the CDBG and HOME Program funds.

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Projects
AP-35 Projects – 91.220(d)
Introduction
Program Year 2022 CDBG and HOME Projects were established based on the high priority needs identified in the 2020-2024 Consolidated Plan Needs Assessment and Strategic Plan. The Consolidated Plan goals below address the high priority needs and serve as the foundation for strategic actions the City will undertake. These goals are based on the ConPlan’s Needs Assessment and Housing Market Analysis sections as well as community outreach conducted:
• Increase affordable housing
• Create suitable living environment
• Address community/special need services
• Address homeless needs
• Enhance community development
• Program planning & administration
The City's PY 2022 estimated CDBG budget includes $1,300,000 in CDBG grant funds; $50,000 in program income; and $1,834,63 in prior year funds. The City's PY 2022 estimated HOME budget includes $507,520 in HOME funds; and $200,000 in program income. Any increase or decrease of 2022 CDBG program income will be directed toward the CDBG ADA improvement projects. Any increase or decrease of Program Year 2022 HOME grant and/or program income will be directed toward The Lofts Project.

Projects
# Project Name
1 2022 HOME Administration
2 2022 The Lofts Project
3 2022 First Time Homebuyer Program
4 2022 CDBG Administration
5 2022 Address Homeless Needs - Public Services
6 2022 Address Community/Special Needs Services
7 2022 Emergency Repair Program (ERAP)
8 2022 Senior Mobile Home Repair Program
9 2022 Code Enforcement
10 2022 ADA Compliance Projects
11 2022 Navigation Center
Table 7 - Project Information
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Describe the reasons for allocation priorities and any obstacles to addressing underserved needs
The projects will address the priority needs described in the Consolidated Plan by providing direct homeless services, homeless prevention services, fair housing services, code enforcement inspections to maintain neighborhood stabilization, housing rehabilitation programs, affordable housing options for the LMI population, ADA compliance projects, and develop a low-barrier Navigation Center. An obstacle in addressing underserved needs include needs outweighing funding resources. Nevertheless, the City worked resourcefully in combing multiple funding sources to maximize the allocation of resources to address underserved community needs.

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AP-38 Project Summary
Project Summary Information
1 Project Name 2022 HOME Administration
Target Area Citywide
Goals Supported Program and planning administration
Needs Addressed Community Development
Funding HOME: $70,520
Description 2022 HOME Administration and Planning.

Target Date 6/30/2023
Estimate the number and
type of families that will
benefit from the proposed
activities
N/A
Location Description Citywide
Planned Activities 2022 HOME Administration and Planning. 2 Project Name 2022 The Lofts Project
Target Area Citywide
Goals Supported Increase affordable housing
Needs Addressed Affordable Housing
Funding HOME: $511,770
Description Construction of an 80-unit mulit-family rental complex, of which 11-units will be HOME funded.

Target Date 6/30/2024
Estimate the number and
type of families that will
benefit from the proposed
activities
11 LMI households are expected to benefit from the proposed activity.

Location Description 300 E. Oak Avenue, Visalia, CA 93291 Planned Activities The City will provide funding toward Self-Enterprises, Inc. (SHE), to build 11 of the 80 new LMI multi-family rental units. 3 Project Name 2022 First Time Homebuyer Program
Target Area Citywide
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Goals Supported Increase affordable housing
Needs Addressed Affordable Housing
Funding HOME: $125,000 $245,000
Description First Time Homebuyer Program
Target Date 6/30/2023
Estimate the number and
type of families that will
benefit from the proposed
activities
5 LMI families
Location Description NW 5th Avenue and N. Court Avenue, Visalia Planned Activities First Time Homebuyer Program for the single-family homes built on NW 5th Avenue and N. Court Avenue.
4 Project Name 2022 CDBG Administration
Target Area Citywide
Goals Supported Program and planning administration
Needs Addressed Community Development
Funding CDBG: $262,500
Description 2022 CDBG Administration and Planning
Target Date 6/30/2023
Estimate the number and
type of families that will
benefit from the proposed
activities
N/A
Location Description Citywide
Planned Activities 2022 CDBG Administration and Planning 5 Project Name 2022 Address Homeless Needs - Public Services Target Area Citywide
Goals Supported Address homeless needs
Needs Addressed Public Services
Funding CDBG: $65,000
Description Continuum of Care Point in Time survey and LINC services.

Permanent Supportive Housing Voucher match.
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Target Date 6/30/2023
Estimate the number and
type of families that will
benefit from the proposed
activities
414 low-income homeless individuals.

Location Description Citywide
Planned Activities Continuum of Care Point in Time survey and LINC services.

Permanent Supportive Housing Voucher match.
6 Project Name 2022 Address Community/Special Needs Services Target Area Citywide
Goals Supported Address community/special needs services Needs Addressed Public Services
Funding CDBG: $35,000
Description Homeless outreach - case management, supportive services, security deposits, rental application fees, legal document assistance; homeless prevention - rental/mortgage assistance and utilities assistance, and fair housing education.

Target Date 6/30/2023
Estimate the number and
type of families that will
benefit from the proposed
activities
50 low-moderate households
Location Description City wide
Planned Activities Homeless services, homeless prevention, and fair housing. 7 Project Name 2022 Emergency Repair Program (ERAP)
Target Area Citywide
Goals Supported Create suitable living environment
Needs Addressed Neighborhood Preservation
Funding CDBG: $50,000
Description Emergency Repair and ADA Program (ERAP) $50,000 to provide owner occupied unit’s emergency repairs and energy efficient upgrades.

Target Date 6/30/2023
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Estimate the number and
type of families that will
benefit from the proposed
activities
8 LMI households are expected to benefit from the proposed activity.

Location Description Citywide
Planned Activities Emergency Repair and ADA Program (ERAP) $50,000 to provide owner occupied unit’s emergency repairs and energy efficient upgrades.
8 Project Name 2022 Senior Mobile Home Repair Program
Target Area Citywide
Goals Supported Create suitable living environment
Needs Addressed Neighborhood Preservation
Funding CDBG: $100,000
Description Senior Mobile Home Repair Program to owner occupied low- income seniors and/or disabled persons.

Target Date 6/30/2023
Estimate the number and
type of families that will
benefit from the proposed
activities
7 low-income seniors and/or disabled persons.

Location Description Citywide. Sites are to be determined.

Planned Activities Senior Mobile Home Repair Program to owner occupied low- income seniors and/or disabled persons.
9 Project Name 2022 Code Enforcement
Target Area LMI Tracts
Goals Supported Create suitable living environment
Needs Addressed Neighborhood Preservation
Funding CDBG: $150,000
Description 2022 Code Enforcement services in deteriorating or deteriorated low-moderate-income areas to arrest the decline of the area.

Target Date 6/30/2023
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Estimate the number and
type of families that will
benefit from the proposed
activities
200 LMI households are expected to benefit from the proposed activity.

Location Description LMI target areas.

Planned Activities 2022 Code Enforcement services in deteriorating or deteriorated low-moderate-income areas to arrest the decline of the area. 10 Project Name 2022 ADA Compliance Projects
Target Area LMI Tracts
Goals Supported Enhance community development
Needs Addressed Improve Community and Public Facilities Funding CDBG: $458,958 $499,940
Description 2022 ADA compliance projects and public infrastructure improvements.

Target Date 6/30/2023
Estimate the number and
type of families that will
benefit from the proposed
activities
50 LMI persons are expected to benefit from the proposed activities.

Location Description LMI Target Areas.

Planned Activities 2022 ADA compliance projects and public infrastructure improvements.
11 Project Name 2022 Navigation Center
Target Area Citywide
Goals Supported Enhance community development
Needs Addressed Shelter and counseling for the homeless Funding CDBG: $2,055,205
Description Development of a Low-Barrier Navigation Center through acquisition, rehab, or construction.

Target Date 6/30/2024
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Estimate the number and
type of families that will
benefit from the proposed
activities
100 low-income homeless individuals are expected to benefit from the proposed activity.

Location Description 3506 N. Dinuba Blvd. Visalia, CA 93291 Planned Activities To develop a Low-Barrier Navigation Center for people experiencing homelessness.
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AP-50 Geographic Distribution – 91.220(f)
Description of the geographic areas of the entitlement (including areas of low-income and minority concentration) where assistance will be directed Many of the CDBG activities funded in 2022 are offered citywide to low- and moderate-income households. However, for certain CDBG programs, such public infrastructure improvements, and code enforcement are directed to neighborhoods that qualify for CDBG funds on an "area benefit" basis. An area benefit activity is one that is available to benefit all the residents of an area which is:
• Primarily residential and
• Where 51% of the population is low- and moderate-income Except for the HOME-funded multi-family rental housing units to be built (The Lofts) which is located at 300 E Oak Avenue, and the Navigation Center at 3506 N. Dinuba Blvd. all other programs are to be administered citywide, or within the CDBG Target area.

Geographic Distribution
Target Area Percentage of Funds
Citywide 84
LMI Tracts 16
Table 8 - Geographic Distribution

Discussion

The Low-and Moderate-Income Concentration Census Tract Map that is being utilized for the 2022 Action Plan and is based on the Low-and Moderate-Income Summary Data (LMISD) provided on HUD Exchange website.

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92.254 for homeownership.

One Year Goals for the Number of Households to be Supported Homeless 0
Non-Homeless 31
Special-Needs 0
Total 31
Table 9 - One Year Goals for Affordable Housing by Support Requirement

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One Year Goals for the Number of Households Supported Through Rental Assistance 0
The Production of New Units 11
Rehab of Existing Units 15
Acquisition of Existing Units 5
Total 31
Table 10 - One Year Goals for Affordable Housing by Support Type

Discussion
Staff works with its non-profit partner SHE to include additional types of acquisition, such as vacant, infill and reconstruction. As funding, through PI becomes available, it would be directed toward SHE CHDO acquisition rehabilitation projects, including the Lofts Project. The 2022 Action Plan includes the development of 11 HOME-assisted affordable rental units with the Lofts Project, 8 home repairs with the Emergency Repair & Accessibility Program, 7 mobile home repairs with the Senior Mobile Home Repair Program, and 5 First Time Homebuyer Assistance.

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Actions planned during the next year to address the needs to public housing HATC will continue to own and manages 179 public housing units in the City. HATC also owns and manages an additional 764 affordable housing units. There is currently no plan to purchase additional public-housing units, nor do they plan on removing any units from their inventory. Their current projection is for an investment of $375,500 in Capital Fund improvements during the FY 2022. There is no project based rental assistance units within the City. HATC expenditures cover maintenance and rehabilitation in public-housing units within the City. HATC's Capital Fund expenditures will cover a large range of projects, including roofing replacement, landscaping improvements, carpet replacement along with air conditioning and heating unit improvements. HATC acquired vacant land at 830 E. Roosevelt Avenue in Visalia to develop a mulit-family development, with a total of four (4) units for rental to qualified low-income households. (Data source: HATC November 2021).

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If the PHA is designated as troubled, describe the manner in which financial assistance will be provided or other assistance
HATC is not designated as troubled.

Discussion
See discussion above.
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Describe the jurisdictions one-year goals and actions for reducing and ending homelessness including
The City has allocated over $2 million of CDBG funds for the development of a Low-Barrier Navigation Center for people experiencing homelessness. The City also allocating Permanent Local Housing Allocation (PLHA) and Low-Mod Successor Agency Housing (SAH) funds toward the development and operation of the Project. The project is expected to begin construction in Program Year 2022. The Visalia Navigation Center anticipates having a 100-bed public facility to house individuals and families experiencing homelessness. The Visalia Navigation Center will follow “Housing First” practices and work closely with the local Continuum of Care for the Visalia region to house individuals and families quickly into rapid rehousing, transitional housing, and permanent housing.

Reaching out to homeless persons (especially unsheltered persons) and assessing their individual needs
The City will continue targeted outreach efforts towards unsheltered homeless persons through collaborative efforts with the Alliance Housing Navigators, Family Services, Kings View PATH Team, and Tulare County Mental Health Crisis Team. These organizations canvas the City to conduct outreach to people experiencing homelessness, and connect them to services. Client information is included in the local Homeless Management Information System (HMIS) so the outreach teams can remain apprised of client status on the housing priority list and other community referrals.

Addressing the emergency shelter and transitional housing needs of homeless persons The City is in the planning phase of developing a low-barrier Navigation Center within the City of Visalia.

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The Visalia Homeless Center managed by St. Paul’s Episcopal Church Rev. Suzy Ward oversees and operates a low barrier warming center within the City of Visalia each winter. The warming center is a low-barrier emergency shelter that provides 90 - 100 homeless individuals’ overnight shelter. The warming center averages 75 visitors a night from December 1st through February 28th. The City has entered into a 4-year contract agreement with Visalia Homeless Center to operate a warming Center in the City of Visalia with use of Permanent Local Housing Allocation (PLHA) funds.

Funding allocations include:
• Tenant-Based Rental Assistance Program utilized for rental assistance and security deposit 467

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which will assist homeless or at risk of homelessness households. • Housing Successor which provides case management/supportive services and street outreach. • Family Services matching funds for case management (public services) to support the Tulare Housing First Shelter Plus Care project. This project provides case management services to 14 chronically homeless individuals who receive a permanent supportive housing. • Kings View Behavioral Health provides public services, including meals for Visalia’s homeless. • ECO program, which is a partnership that includes the Tulare County Workforce Investment Board, Caltrans, and ABLE Industries.
• Property acquisition and rehab housing projects funded through HOME funds and other city- funding pools.
• CoC and City-funded programs/projects that benefit the homeless • Special needs project and programs that serve these vulnerable subpopulations include: CSET Permanent Supportive Housing and Rapid Rehousing, Family Services Permanent Supportive Housing and Transitional Housing, Turning Point and Tulare County HHSA provide PSH projects for chronically homeless individuals and families and/or families with children. The Veterans’ Administration, in conjunction with the Housing Authority of Tulare County, operates the VASH project and Westcare operates the SSVF project that serves eligible veterans and their families.

Uplift Families operates a Transitional Housing project for transitioning age youth.

Discussion
See discussion above. The City is not a recipient of HOPWA funding. 468

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AP-75 Barriers to Affordable Housing – 91.220(j)
Introduction:

1. New Construction - To provide a broad range of housing types and densities to meet the needs of all Visalia residents.

2. Mixed Use, Infill, and Downtown Development - To promote mixed use, infill, and Downtown development in Visalia.

3. Encourage Affordable Housing - To encourage construction and maintenance of affordable housing in Visalia.

4. Foreclosures - To prevent foreclosures, protect affected families, and stabilize neighborhoods impacted by foreclosures.
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5. Special Needs/Homeless- To provide a range of housing types and services to meet the needs of households with special needs within the city.

8. Energy Conservation - To encourage energy efficiency in all new and existing housing.

9. Implementation Monitoring - To ensure that Housing Element programs are implemented on a timely basis and progress of each program is monitored and evaluated annually.

See above discussion.
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AP-85 Other Actions – 91.220(k)
Introduction:

Actions planned to address obstacles to meeting underserved needs City actions planned to address obstacles are referenced within the AI and listed herein. AI, Chapter VIII:

Actions includes the plan’s goals and recommended actions to reduce the barriers to affordable housing noted in AP-75.

In addition to exploring new policy and regulatory changes, the City will continue its efforts to carry out the following to remove barriers to affordable housing:
• Work with non-profit developers and other public agencies that increase Visalia’s supply of affordable housing
• Work with the Housing Authority of Tulare County to properly inform collaborating agencies at the local, state, and federal levels of the need for affordable housing in the City • Facilitate the construction of affordable rental housing for very low and low-income households by providing regulatory (e.g., density bonus, expedited permit processing, deferred fees, or relaxed parking requirements) and financial incentives
• Support programs that keep people housed, such as tenant-based rental assistance and rapid rehousing
• Streamline permitting process for affordable housing
• Further incentives to developers for the development of affordable housing • Incorporate educational components regarding the importance of affordable housing into 471

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Discussion:

See above discussions.
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Program Specific Requirements
AP-90 Program Specific Requirements – 91.220(l)(1,2,4)
Introduction:

In the event final CDBG and HOME program entitlement and program income is higher or lower than expected herein, the City of Visalia may add, subtract, or transfer amounts among identified projects, as noted without publishing a substantial amendment, if the amount is below 75 % change, as per the approved Citizens Participation Plan. Any difference in CDBG funding will be reflected in the public infrastructure/ADA project line item and, if needed, public services to maintain compliance with the 15% cap and Administration; any difference in HOME funding will be reflected in SHE CHDO Acq/Rehab/construct or reconstruct SF or MF projects, TBRA and if needed Administration. The three- year period (2020, 2021 & 2022) will be used to determine that a minimum overall benefit of 70% of CDBG funds is used to benefit persons of low and moderate income.

1. The total amount of program income that will have been received before the start of the next program year and that has not yet been reprogrammed 0

2. The amount of proceeds from section 108 loan guarantees that will be used during the year to address the priority needs and specific objectives identified in the grantee's strategic plan. 0

3. The amount of surplus funds from urban renewal settlements 0

4. The amount of any grant funds returned to the line of credit for which the planned use has not been included in a prior statement or plan 0

5. The amount of income from float-funded activities 0
Total Program Income: 0

Other CDBG Requirements

1. The amount of urgent need activities 0

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HOME Investment Partnership Program (HOME)
Reference 24 CFR 91.220(l)(2)

1. A description of other forms of investment being used beyond those identified in Section 92.205 is as follows:

2. A description of the guidelines that will be used for resale or recapture of HOME funds when used for homebuyer activities as required in 92.254, is as follows:

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begin the date the Deed of Trust is recorded. In the case of the homebuyer selling the home during the affordability period, the City may recapture the entire amount of the direct HOME Subsidy and the difference between the fair market value and the purchase price, if the purchase price is below the fair market value, and any additional assistance as referenced above. The amount to be recaptured will not exceed the amount of net proceeds available at the time the home is sold.

Note: Staff works with the City Attorney in updating legal documents to comply with the funding source and type of program(s) administered.

The FTHB, SHE-CHDO Program loan documents were reviewed in 2017 by HUD. No changes have been made to these policies. However, if HUD requests a copy for review, City Staff will again provide documents if required prior to implementing the program.

3. A description of the guidelines for resale or recapture that ensures the affordability of units acquired with HOME funds. See 24 CFR 92.254(a)(4) are as follows:

See Recapture provisions above.

This does not apply to Visalia. Please see discussion above.

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Appendix “A” – Summary Detail

PY 2022-2023 Annual Action Plan Summary Detail

Table A-1: PY 2022 Annual Action Plan
Resources: CDBG HOME
2022 Annual Allocation $ 1,300,000 $ 507,520 2022 Program Income 50,000 200,000 Prior Year Resources 1,834,163
Total 2022 CDBG and HOME Resources $ 3,184,163 $ 707,520 Expenditures:

Administration:

Administration $ 262,500 $ 70,750 Total Administration $ 262,500 $ 70,750 Public Services:

Kings Tulare Homeless Alliance $ 20,000 $ - Family Services Voucher Program 45,000 - Kings View PATH Program 35,000 - Fair Housing Education $ 7,500 $ - Total Public Services $ 107,500 $ - Affordable Housing:

Emergency Repair and ADA Program $ 50,000 $ - Senior Mobile Home Repair Program 100,000 - Code Enforcement 150,000 - The Lofts Project - 511,770 First Time Homebuyer Program $ - $ 125,000 Total Affordable Housing $ 300,000 $ 636,770 Public Facility Improvements:

ADA Compliance Projects $ 418,958 $ - Public Infrastructure Improvements/ADA Projects 40,000 - Navigation Center $ 2,055,205 $ - Total Public Facility Improvements $ 2,514,163 $ - Total 2022 CDBG and HOME Expenditures $ 3,184,163 $ 707,520

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Draft PY 2022-2023 Annual Action Plan Amendment Summary Detail

Table A-2: Draft PY 2022 CDBG Annual Action Plan Amendment Resources Approved Adjustments Proposed
2022 Annual Allocation $ 1,183,482 $ - $ 1,183,482 2022 Program Income 50,000 150,000 200,000 Prior Year Resources 1,834,163 - 1,834,163 Total Resources $ 3,067,645 $ 150,000 $ 3,217,645 Expenditures Approved Adjustments Proposed
Administration $ 262,500 $ - $ 262,500 Kings Tulare Homeless Alliance 20,000 - 20,000 Family Services Voucher Program 45,000 - 45,000 Kings View PATH Program 35,000 - 35,000 Fair Housing Education 7,500 (7,500) - Emergency Repair and ADA Program 50,000 - 50,000 Senior Mobile Home Repair Program 100,000 - 100,000 Code Enforcement 150,000 - 150,000 ADA Compliance Projects - Tree Wells 342,440 157,500 499,940 Navigation Center Development 2,055,205 - 2,055,205 Total Expenditures $ 3,067,645 $ 150,000 $ 3,217,645

Table A-3: Draft PY 2022 HOME Annual Action Plan Amendment Resources Approved Adjustments Proposed
2022 HOME Allocation $ 546,791 $ - $ 546,791 2022 Program Income 200,000 - 200,000 Prior Year Funds - 120,000 120,000 Total Resources $ 746,791 $ 120,000 $ 866,791 Expenditures Approved Adjustments Proposed
HOME Admin $ 70,750 $ - $ 70,750 First Time Homebuyer Program 125,000 120,000 245,000 The Lofts Project 551,041 - 551,041 Total Expenditures $ 746,791 $ 120,000 $ 866,791

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City of Visalia

HOME Investment Partnership American Rescue
Plan Program (HOME-ARP) Allocation Plan
Draft Amendment
as an amendment to the 2021 Annual Action Plan

City of Visalia
Finance Department – Housing Division
707 West Acequia Avenue
Visalia, CA 93291
www.visalia.city
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City of Visalia Draft HOME-ARP Allocation Plan – FY 2021 Action Plan Amendment 2 Table of Contents

Purpose of Amendment ................................................................................................................................ 3 Introduction .................................................................................................................................................. 3 Consultation .................................................................................................................................................. 3 Public Participation ....................................................................................................................................... 7 Needs Assessment and Gaps Analysis .......................................................................................................... 9 HOME-ARP Activities ................................................................................................................................... 16 HOME-ARP Production Housing Goals........................................................................................................ 18 Preferences ................................................................................................................................................. 19 HOME-ARP Refinancing Guidelines ............................................................................................................ 20 Appendices .................................................................................................................................................. 21 Appendix A: Needs Assessment and Gap Analysis Survey Results ......................................................... 21 Appendix B: 2020 Point in Time Count Results ....................................................................................... 30 Appendix C: Citizen Participation – Public Notices ................................................................................. 33 Appendix D: SF-424 Form ....................................................................................................................... 42 Appendix E: SF-424B Form ...................................................................................................................... 45 Appendix F: SF-424D Form ...................................................................................................................... 47 Appendix G: HOME-ARP Certifications ................................................................................................... 49

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City of Visalia Draft HOME-ARP Allocation Plan – FY 2021 Action Plan Amendment 3 Purpose of Amendment
The Purpose of the HOME-ARP Allocation Plan Amendment is to provide Qualifying Populations preferences to people experiencing homelessness.

Introduction

The City of Visalia has been awarded $1,840,059 in HOME Investment Partnership American Rescue Plan (HOME-ARP) funds, from the U.S. Department of Housing and Urban Development (HUD) to assist people experiencing homelessness, at-risk of homelessness, and other vulnerable populations by providing housing, shelters, rental assistance, and/or supportive services to reduce homelessness and increase housing stability. HOME-ARP funds can be used for the following four eligible activities: 1) development of affordable rental housing, 2) non-congregated shelter units, 3) tenant based rental assistance, and/or 4) supportive services.

The HOME-ARP funds are required to be used to benefit individuals and families that meet the requirements for one or more “qualifying populations” (QPs). HOME-ARP qualifying populations include the following categories:

• Homeless,
• At-risk of homelessness,
• Fleeing/attempting to flee domestic violence, dating violence, sexual assault, stalking, or human trafficking, and
• Greatest risk of housing instability.

To receive funding, the City must develop and submit a HOME-ARP Allocation Plan as an amendment to the Program Year (PY) 2021 Annual Action Plan to HUD. The HOME-ARP Allocation Plan should describe the distribution of HOME-ARP funds and identify any preferences for eligible activities. The HOME-ARP Allocation Plan must also identify stakeholder consultation, and community engagement.

Consultation

Before developing its plan, the City must consult with the Continuum of Care (CoC) serving the jurisdiction’s geographic area, homeless and domestic violence service providers, veterans’ groups, public housing agencies (PHAs), public agencies that address the needs of the qualifying populations, and public or private organizations that address fair housing, civil rights, and the needs of persons with disabilities at a minimum.

Summarize the consultation process

The HOME-ARP Allocation Plan was prepared in consultation with various organizations that serve the qualifying populations. These consulted agencies have expertise and 481

City of Visalia Draft HOME-ARP Allocation Plan – FY 2021 Action Plan Amendment 4 knowledge to identify the needs, service gaps, and required activities that would best benefit the qualifying populations. Organizations consulted include homeless and domestic violence service providers, a veterans’ group, public housing agencies (PHAs), and various public agencies that address the needs of the qualifying populations, fair housing, civil rights, and the needs of persons with disabilities.

A Community Needs Assessment and Gap Analysis was conducted commencing on November 18, 2021, through December 20, 2021. The City conducted a Community Needs Assessment and Gap Analysis survey and held four virtual forums with community service provider that serve the qualifying populations to gather valuable input in the use of HOME- ARP funds. The Community Needs Assessment and Gap Analysis Survey asked various organizations and local citizens to rank the four eligible uses of HOME-ARP funding by priority. The four eligible activities include:

• Development of Affordable Rental Housing
• Non-Congregate Shelter Units (NCS)
• Tenant Based Rental Assistance (TBRA)
• Supportive Services

Survey responses identified the development of affordable housing as the top priority for HOME-ARP funding as shown below.

The four virtual community service provider forums conducted gathered valuable information and provided robust discussions regarding the best use of HOME-ARP funds.

Majority of the service providers consulted also agreed that development of affordable rental housing was the top priority for the qualifying populations and the clients they 0%
10%
20%
30%
40%
50%
60%
70%
80%
Affordable Rental
Housing
Non-Congregated
Shelter Units
Tenant-Based Rental
Assistance
Supportive Services
Which do you feel is most needed in Visalia?
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City of Visalia Draft HOME-ARP Allocation Plan – FY 2021 Action Plan Amendment 5 directly serve. Feedback provided from each organization consulted is shown below in Table 1: Agencies/Organization Consulted.

Homeless service providers confirmed one-bedroom or studios units are the most needed as this specific population does not do well in a roommate setting. Domestic violence and human trafficking service providers confirmed that domestic violence victims with children have available housing resources, and that the most urgent need is for more one-bedroom or studio units for those single adults fleeing domestic violence, sexual assault, and/or human trafficking. Tenant-based rental assistance service providers have also confirmed the highest need for those at greatest risk of housing instability or at risk of homelessness that are at or below 30% of the area median income is also additional affordable rental units. Consultation with service providers also indicated that the qualifying populations need ongoing case management prior to, and up to 2-years after, housing placement to ensure long-term housing stability and prevent reverting back to homelessness.

List the organizations consulted, and summarize the feedback received from these entities.

Table 1: Agencies/Organizations Consulted
Agency/Organizations
Consulted
Type of
Agency/Organizations
Method of
Consultation Feedback
Kings Tulare Homeless
Alliance
Continuum of Care Meeting and Needs
Assessment & Gap
Analysis survey.

Affordable rental housing for
studio or 1-bedroom units for
homeless individuals are most
needed. Homeless individuals
require at least 2 years of case
management after housing
placement to ensure housing
stability.

Housing Authority of
Tulare County
Public Housing
Authority
Meeting and Needs
Assessment & Gap
Analysis survey.

Affordable rental housing for 1-
and 2-bedroom units are needed
for homeless and at-risk of
homelessness. There is a lack of
available units and landlords
willing to house homeless and
section 8 tenants.

Visalia Homeless
Center
Homeless service
provider
Meeting and Needs
Assessment & Gap
Analysis survey.

More permanent supportive
housing units are needed to house
people experiencing homelessness
in transitional and emergency
shelters.

Turning Point of
Central California
Homeless and youth
service provider
Meeting and Needs
Assessment & Gap
Analysis survey.

More emergency shelter beds are
needed.
483

City of Visalia Draft HOME-ARP Allocation Plan – FY 2021 Action Plan Amendment 6 Visalia Rescue Mission Homeless service
provider
Meeting and Needs
Assessment & Gap
Analysis survey.

More 1-bedroom permanent
supportive housing units and
supportive services are needed.

Kings View PATH
Program
Homeless service
provider
Meeting and Needs
Assessment & Gap
Analysis survey.

More affordable 1-bedroom rental
housing units are needed and
emergency shelter. Ongoing case
management is needed, before
and after housing placement.

United Way of Tulare
County
At-risk of homeless
service provider
Meeting and Needs
Assessment & Gap
Analysis survey.

Rental assistance is needed due
to the pandemic for at-risk of
homelessness families.

Community Services
Employment Training
(CSET
Employment,
Training, and housing
service provider
Meeting and Needs
Assessment & Gap
Analysis survey.

Permanent supportive housing
and rapid rehousing units are
needed. Landlords are now
requesting rent increases over
10%. Homeless individuals need
access to mental health and
drugs/alcohol recovery services.

Family Services of
Tulare County
Domestic violence
(DV) and homeless
service provider
Meeting and Needs
Assessment & Gap
Analysis survey.

DV victims with children have
housing resources. DV victims
without any children need 1-
bedroom units. Case management
needed before and after housing
placement. TBRA is hard to spend
due to lack of affordable units.

Central California
Legal Services
legal, fair housing,
civil rights, and tenant
rights services
Meeting and Needs
Assessment & Gap
Analysis survey.

Most needed is permanent
affordable rental housing. There
are not enough affordable rental
units. Rents are too high.

Veterans Service
Office
Veteran services Meeting and Needs
Assessment & Gap
Analysis survey.

There is a lack of affordable units.

Lack of landlords that are willing
to house VASH, section 8
vouchers, and homeless
population. Landlords of available
units are investors that are
seeking the highest dollar amount.

Salt n Light Homeless service
provider
Meeting and Needs
Assessment & Gap
Analysis survey.

More 1-bedroom permanent
supportive housing units and
supportive services are needed.

Tulare County Health
& Human Services
Mental Health service
provider
Meeting and Needs
Assessment & Gap
Analysis survey.

More 1-bedroom permanent
affordable rental housing units are
needed.
484

City of Visalia Draft HOME-ARP Allocation Plan – FY 2021 Action Plan Amendment 7 Eden House Bridge housing for
people experiencing
homelessness.

Meeting and Needs
Assessment & Gap
Analysis survey.

More studio or 1-bedroom
permanent affordable rental
housing and supportive services
(i.e., credit repair & job training).

Elevate Community
Services
Manages housing
programs for people
experiencing
homelessness
Meeting and Needs
Assessment & Gap
Analysis survey.

Tenant-based rental assistance is
very difficult to spend. There is so
many funds that go unused each
year. The need is for affordable
studio or 1-bedroom units.

Citizens Advisory
Committee
Citizens Advocacy Meeting and Needs
Assessment & Gap
Analysis survey.

More affordable rental housing is
needed.

Disability Advocacy
Committee
Disability Advocacy Meeting and Needs
Assessment & Gap
Analysis survey.

More affordable rental housing is
needed.

Public Participation

Describe the public participation process, including information about the dates of the public comment period and public hearing(s) held during the development of the plan:
• Public Comment Period: Start date: 3/18/2022 End date: 4/18/2022 • Public Hearings: 12/20/2021, 4/4/22, and 4/18/22
Describe the public participation process, including information about the dates of the public comment period and public hearing(s) held during the development of the plan Amendment:
• Public Comment Period: Start date: 3/17/2023 End date: 4/17/2023 • Public Hearings: 4/3/23, and 4/17/23
Development of Plan: The City of Visalia held a public hearing on December 20, 2021, at 7:00pm at the Visalia Council Chambers, during the development of the plan to gather public input on the use of HOME-ARP funds and potential eligible activities. A public notice was published in the Visalia Times Delta on November 19, 2021, in English and Spanish.

Public notices were also posted at City locations, City website, and on City social media outlets. Public notices were also published in the Kings Tulare Homeless Alliance listserv, which is received by over 330 individuals that serve the qualifying populations.

Public Comment Period: The HOME-ARP Allocation Plan public comment period was from March 18, 2022, through April 18, 2022. Public hearings during the public comment 485

City of Visalia Draft HOME-ARP Allocation Plan – FY 2021 Action Plan Amendment 8 period were schedule for April 4, 2022, and April 18, 2022. A public notice was published in the Visalia Times Delta on March 18, 2022, and April 1, 2022.

The HOME-ARP Allocation Plan Amendment public comment period was from March 17, 2023, through April 17, 2023. Public hearings during the public comment period are scheduled for April 3, 2023, and April 17, 2023. A community meet is scheduled for April 5, 2023. A public notice was published in English and Spanish in the Visalia Times Delta on March 15, 2023, March 17, 2023, and March 31, 2023.

Describe any efforts to broaden public participation:

The City took several steps to broaden public participation in the development of the HOME ARP Allocation Plan. The City conducted a Needs Assessment and Gap Analysis survey that was available to the public on the City’s website and social media outlets to allow citizens to submit their comments on the use of HOME-ARP funds. The City translated all public notices into Spanish to encourage Spanish speaking citizens participation. The City also offer ADA accommodations on all public notices and during all meetings.

During the HOME-ARP Allocation Plan public comment period from March 18, 2022, through April 18, 2022. A community meeting to review the draft HOME-ARP Allocation Plan was held on April 6, 2022, at 5:30pm at the Citizens and Disability Advocacy Committee. Two public hearing were held to allow public input on April 4, 2022, and April 18, 2022, at 7:00pm. Public hearings were held in person and available for live virtual viewing. English and Spanish public notices was published in the Visalia Times Delta on March 15, March 18, and April 1, 2022. English and Spanish public notices were posted at various City locations, and City social media outlets to broaden public participation. The HOME-ARP Allocation Plan was available for public review on the City website at www.visalia.city. Public notices were also posted in the Kings Tulare Homeless Alliance listserv, which is received by over 330 individuals that serve the qualifying populations.

The HOME-ARP Allocation Plan Amendment public comment period is from March 17, 2023, through April 17, 2023. A public hearing is scheduled for April 3, 2023 at 7:00pm, a community meeting is scheduled for April 5, 2023 at 5:30pm, and a final public hearing is scheduled for April 17, 2023. The community meeting and public hearings encourage public participation to review and provide input on the draft HOME-ARP Allocation Plan Amendment. Public notices were also published in the Visalia Times Delta on March 15, March 17, and March 31, 2023 to broaden public participation. Public notices were also posted at various city offices, the City website, and across all City social media outlets. The draft HOME-ARP Allocation Plan Amendment was posted on the City of Visalia website at www.visalia.city during the 30-day public comment period. 486

City of Visalia Draft HOME-ARP Allocation Plan – FY 2021 Action Plan Amendment 9 Summarize the comments and recommendations received through the public participation process:

No comments were received during the public comment period or during public hearings.

HOME-ARP Allocation Plan Amendment comments and recommendations received through the public participation process will be included at the conclusion of the 30-day public comment period.

Summarize any comments or recommendations not accepted and state the reasons why:

No public comments or recommendations were not accepted.

Needs Assessment and Gaps Analysis

The City utilized several sources to complete the Needs Assessment and Gap Analysis section of the HOME-ARP Allocation Plan. Sources include the most recent Point in Time Count conducted in 2020, Continuum of Care Housing Inventory Count (HIC) 2021, American Community Survey (ACS) 2019 5-year estimates, Comprehensive Housing Affordability Strategy (CHAS) data set from 2014-2018, as well as direct consultation with local community partners. Table 2: Homeless Needs Inventory and Gap Analysis and Table 3:Housing Needs Inventory and Gap Analysis below illustrate the Homeless and Housing Needs Inventory and Gap Analysis.

Table 2: Homeless Needs Inventory and Gap Analysis Table

Table 3: Housing Needs Inventory and Gap Analysis Table 487

City of Visalia Draft HOME-ARP Allocation Plan – FY 2021 Action Plan Amendment 10 Describe the size and demographic composition of qualifying populations within the PJ’s boundaries.

HUD requires HOME-ARP funds to be used to benefit the individuals and families specified in HOME-ARP “qualifying populations”. Qualifying populations include the following categories:
• Homeless as defined in 24 CFR 91.5
• At-risk of Homelessness as defined in 24 CFR 91.5
• Fleeing/attempting to flee domestic violence, dating violence, sexual assault, stalking, or human trafficking, as defined by HUD
• Greatest risk of housing instability – Other Populations where providing supportive services or assistance under section 212(a) of NAHA (42 U.SC. 12742(a)) would prevent the family’s homelessness or would serve those at greatest risk of housing instability. HUD defines these populations as individuals and households who do not qualify under any of the populations above.

Homeless Populations

According to the Point-in-Time (PIT) count report conducted on January 22, 2020, there were 540 people experiencing homelessness in the City of Visalia. The report reflected that 17% of the population were in an emergency shelter, 25% of the population were transitional housing, and 58% of the population were living in an unsheltered location.

Those that have been homeless for over a year consist of 22% of the population.

The age demographics are as follows: children ages 0-17 are 9% of the population, ages 18- 24 are 6% of the population, ages 25-34 are 18% of the population, ages 35-44 are 27% of the population, ages 45-54 are 20% of the population, ages 55-64 are 16% of the 488

City of Visalia Draft HOME-ARP Allocation Plan – FY 2021 Action Plan Amendment 11 population, ages 65-69 are 2% of the population, and ages 70 and above are 1% of the population. According to the 2020 Point-in-Time count, 62% of the homeless population identified as male, and 38% of the homeless population identified as female.

The 2020 Point-in-Time counts reflected race demographics as follows: White as 83% of the population, African American as 7% of the population, American Indian or Alaska Native as 6% of the population, Asian as 1% of the population, Pacific Islander as 1% of the population, and multi-racial as 3% if the population. Ethnicity demographics reflected Non- Hispanic/Latino as 24% of the population, and Hispanic/Latino as 45% of the population.

The reasons for being homeless were reported as unemployment for 20% of the population, an argument for 15% of the population, drugs, or alcohol for 12% of the population, mental health for 9% of the population, divorce for 9% of the population, domestic violence for 7% of the population, a medical condition for 5% of the population, eviction for 5% of the population, no affordable housing for 4%, jail or prison for 4%, and being refused housing for 2%. Barriers include mental illness for 38% of the population, physical disability for 27%, substance abuse for 30%, chronic health condition for 11%, and development disability for 10% of the population. According to the report, 48% of the population have a disabling condition. Those currently fleeing domestic violence consist of 10% of the population, and veterans consist of 6% of the population.

The benefits received are as follows: Supplemental Nutrition Assistance Program (SNAP) is received by 34% of the population, Social Security Disability Insurance (SSDI) by 5% of the population, Supplemental Security Income (SSI) by 4% of the population, earned income by 1% of the population, pension by 1% of the population, child support by 1% of the population, and Temporary Assistance for Needy Families (TANF) by 1% of the population.

At-Risk of Homelessness

HUD defines those at risk of homelessness as individuals or families who have an annual income at or below 30% of the area median income level, do not have sufficient resources or support networks available to prevent them from to an emergency shelter or into homelessness, and live with an instability such as moving two or more times during the last 60-days due to economic reasons, live in the home of another due to economic hardship, or have been notified in writing that their right to occupy their current housing will be terminated. According to HUD’s 2014-2018 Comprehensive Housing Affordability Strategy (CHAS) data, families at or below 30% of the area median income are 4,170 or 10% of the owner and renter population within the City of Visalia as shown below in Table 4: Income Distribution Overview, and 3,485 families have at least 1 of 4 housing problems as shown below in Table 5: Income by Housing Problem (Owners and Rents).

Table 4: Income Distribution Overview
Income Distribution Overview Owner Renter Total %
Household Income <= 30% HAMFI 1,560 2,610 4,170 10%
Household Income >30% to <=50% HAMFI 1,545 2,985 4,530 11% Household Income >50% to <=80% HAMFI 3,130 2,750 5,880 14% 489

City of Visalia Draft HOME-ARP Allocation Plan – FY 2021 Action Plan Amendment 12 Household Income >80% to <=100% HAMFI 2,085 1,650 3,735 9% Household Income >100% HAMFI 17,145 6,740 23,885 57%
Total 25,470 16,740 42,210 100%
Data Source: 2014-2018 CHAS (Most Recent Year)

Table 5: Income by Housing Problems (Owners and Renters) Income by Housing Problems
(Owners and Renters)
Household has
at least 1 of 4
Housing
Problems
Household has none of 4
Housing Problems OR cost
burden not available no
other problems Total
Household Income <= 30% HAMFI 3,485 690 4,170
Household Income >30% to <=50% HAMFI 3,665 870 4,530
Household Income >50% to <=80% HAMFI 4,060 1,825 5,880
Household Income >80% to <=100% HAMFI 1,700 2,035 3,735 Household Income >100% HAMFI 3,165 20,715 23,885
Total 16,070 26,140 42,210
Data Source: 2014-2018 CHAS (Most Recent Year)

Fleeing or Attempting to Flee Domestic Violence or Human Trafficking

According to local domestic violence service providers, domestic violence victim demographics for Fiscal Year 2020 and 2021 reported 89% of domestic violence victims are identified as female and 11% of DV victims are identified as male. 100% of domestic violence victims are considered extremely low income at or below 30% of the area median income level. Female head of households consists of 4% of the population, and 2% of the population are experiencing homelessness. Local domestic violence and human trafficking service provider Family Services of Tulare County stated that there are housing units available for victims with children. Family Services stated that the domestic violence and human trafficking victims without children are need of one-bedroom or studio units.

The age demographics for domestic violence victims are as follows: ages 18-24 are 16% of the population, ages 25-34 are 34% of the population, 35-44 are 30% of the population, ages 45-54 are 13% of the population, and ages 55 and above are 7% of the population.

Domestic violence victims race demographics are as follows: White individuals are 37% of the population, African American individuals are 0% of the population, Asian individuals are 1% of the population, multi-racial individuals are 12% if the population, and individuals of unknown race are 49% of the population. Ethnicity demographics reflected Non-Hispanic/Latino individuals constituted 59% of the population, and Hispanic/Latino individuals constituted 41% of the population.

Greatest Risk of Housing Instability

The City’s greatest risk of housing instability is associated with those within the 30% of the area median income level and experiencing severe cost burden, such as paying more than 490

City of Visalia Draft HOME-ARP Allocation Plan – FY 2021 Action Plan Amendment 13 50% of monthly household income toward housing costs as shown below in Table 6:

Income by Cost Burden. A majority of those that are at greatest risk of housing instability within our jurisdiction are White and Hispanic/Latino. Many of the City’s greatest risk of housing instability is associated with those that were previously homeless that are currently receiving temporary tenant-based rental assistance and may revert to homelessness once the rental assistance ends. Service providers that provide temporary tenant-based rental assistant to the qualifying population, indicated this population is need of permanent supportive affordable rental housing.

Table 6: Income by Cost Burden
Income by Cost Burden (Owners and Renters) Cost burden > 30% Cost burden > 50% Total Household Income <= 30% HAMFI 3,460 2,885 4,170
Household Income >30% to <=50% HAMFI 3,565 2,045 4,530
Household Income >50% to <=80% HAMFI 3,760 690 5,880
Household Income >80% to <=100% HAMFI 1,480 150 3,735
Household Income >100% HAMFI 2,220 350 23,885
Total 14,485 6,125 42,210
Data Source: 2014-2018 CHAS (Most Recent Year)

Describe the unmet housing and service needs of qualifying populations, including but not limited to:
• Sheltered and unsheltered homeless populations;
• Those currently housed populations at risk of homelessness; • Other families requiring services or housing assistance or to prevent homelessness; and
• Those at greatest risk of housing instability or in unstable housing situation.

Sheltered and unsheltered homeless populations

The Local Continuum of Care, the Kings Tulare Homeless Alliance conducts a Point-in-Time (PIT) Count. The PIT Count is an annual census and survey to identify the sheltered and unsheltered homeless population across the County. This count is required for all recipients of HUD funding. The PIT Count takes place during the final week of January each year. The most recent PIT Count reported 312 people slept in an unsheltered location, 94 people slept in an emergency shelter, and 134 people slept in transitional housing. The PIT Count clearly shows there are not enough permeant supportive housing units for both sheltered and unsheltered homeless populations.

Those currently housed populations at risk of homelessness

HUD defines those at risk of homelessness as households who have an income at or below 30% of the area median income (AMI), who does not have sufficient resources or support networks to prevent them from moving to an emergency shelter or becoming homeless; and meets one of the following conditions:
491

City of Visalia Draft HOME-ARP Allocation Plan – FY 2021 Action Plan Amendment 14 • Has moved because of economic reasons two or more times during the 60 days preceding the application for homelessness prevention assistance; • Is living in the home of another because of economic hardship; • Has been notified in writing that their right to occupy their current housing will be terminated within 21 days after the date of application for assistance; • Lives in a hotel or motel and the cost of the hotel or motel stay is not paid by charitable organizations or by federal, State, or local government programs for low- income individuals;
• Lives in a single-room occupancy or efficiency apartment unit in which there reside more than two persons or lives in a larger housing unit in which there reside more than 1.5 people per room; or
• Is exiting a publicly funded institution, or system of care (such as a health-care facility, a mental health facility, foster care or other youth facility, or correction program or institution).

The HUD Comprehensive Housing Affordability Strategy (CHAS) 2014-2018 data Table 5 shows 3,485 households at or below 30% of the area median income has at least 1 housing related problem.

Other families requiring services or housing assistance or to prevent homelessness

Findings from the Needs Assessment and Gap Analysis conducted show the greatest needs are for other families requiring services or housing assistance or to prevent homelessness is development of additional permanent affordable rental housing shown in Appendix A – Needs Assessment and Gap Analysis Survey Results. The City currently funds a subsistence payment program that provides emergency rental and/or utility assistance to prevent homelessness. The City also currently funds a tenant-based rental assistance to assist low- income families with up to 24-months of rental assistance.

Those at greatest risk of housing instability or in unstable housing situation

Those at the greatest risk of housing instability or in unstable housing situation are often low-income and has annual income at or below 30% AMI and is experiencing severe cost burden (i.e., is paying more than 50% of monthly household income toward housing costs); or has an annual income at or below 50% AMI and meets of the conditions of “At risk of homelessness” as defined in 24 CFR 91.5.

The Housing Authority of Tulare County (HATC) currently owns and manages 179 public housing units in Visalia and manages another 764 affordable housing units through the City of Visalia. HATC will continue to own and manages 179 public housing units in the City.

HATC also owns and manages an additional 764 affordable housing units. HATC acquired vacant land at 830 E. Roosevelt Ave., Visalia to develop a mulit-family development, with a total of four (4) units for rental to qualified low-income households. HATC also administers the Section 8 Housing Choice Voucher program. The Housing Authority of Tulare County is committed to providing affordable housing to those at greatest risk of housing instability. 492

City of Visalia Draft HOME-ARP Allocation Plan – FY 2021 Action Plan Amendment 15 Identify and consider the current resources available to assist qualifying populations, including congregate and non-congregate shelter units, supportive services, TBRA, and affordable housing and permanent supportive rental housing.

• Congregate Shelter: The City is in the process of developing a 100-bed Low-Barrier Navigation Center congregate shelter public facility with the use of Community Development Block Grant (CDBG), Permanent Local Housing Allocation (PLHA), and Housing Successor Agency (SAH) funds that will provide congregated shelter beds for those experiencing homelessness, including those fleeing/attempting to flee domestic violence, dating violence, sexual assault, stalking, or human trafficking

• Non-Congregated Shelter: There is currently a 50-unit non-congregate shelter project at Sequoia Village within the City of Visalia for experiencing homelessness, including those fleeing/attempting to flee domestic violence, dating violence, sexual assault, stalking, or human trafficking.

• Supportive Services: The City also currently funds a variety of supportive service programs with the use of the CDBG public service funds for the four qualifying populations.

o Supportive services for individuals experiencing homelessness and fleeing/attempting to flee domestic violence, dating violence, sexual assault, stalking, or human trafficking includes case management services, housing search assistance, landlord issue mitigation, transportation assistance, clothing assistance, food assistance, and security/utility deposits.

o Supportive services for those at-risk of homelessness and greatest risk of housing instability includes a subsistence payment program to provide emergency rental assistance to prevent eviction, and utility assistance to prevention utility cutoff.

• Tenant-Based Rental Assistance: The City currently funds a Tenant-Based Rental Assistance (TBRA) program up to 24 months of rental assistance for individuals or households experiencing homelessness, and/or fleeing/attempting to flee domestic violence, dating violence, sexual assault, stalking, or human trafficking with the use of HOME entitlement funds. Each year TBRA funds are significantly underspent due to a lack of affordable rental units.

• Permanent Supportive Rental Housing: The City is currently planning to construct the Lofts Project that will provide 40 permanent supportive rental housing units to the qualifying populations. The Lofts project is expected to be completed in Fiscal Year 2024.

Identify any gaps within the current shelter and housing inventory as well as the service delivery system:
493

City of Visalia Draft HOME-ARP Allocation Plan – FY 2021 Action Plan Amendment 16 According to the Needs Assessment and Gap Analysis survey and consultation with local providers, the largest gap within the current shelter and housing inventory is a lack of available one-bedroom affordable rental housing and/or permanent supportive housing units for the qualifying populations. The City has a gap between the number of affordable rental housing and permanent supportive housing units available and those qualifying individuals that are in need of housing. The current pandemic has added to the affordable rental housing shortage, as rents continue to rise making less affordable housing units available for the qualifying populations.

Identify the characteristics of housing associated with instability and an increased risk of homelessness if the PJ will include such conditions in its definition of “other populations” as established in the HOME-ARP Notice:

The City does not plan to formally adopt a definition of “other populations”.

Identify priority needs for the qualifying populations:

The priority needs identified through the recent HOME-ARP Needs Assessment and Gap Analysis survey, consultation, and public hearing remain consistent with those identified through the Community Needs Assessment developed for the City’s 2022-2024 five-year Consolidated Plan. That concludes there is an overall need for additional affordable rental housing and permanent supportive housing for the qualifying populations.

Explain how the level of need and gaps in its shelter and housing inventory and service delivery systems based on the data presented in the plan were determined:

The level of need and gaps in shelter, housing inventory, and service delivery systems were determined using data from multiple sources as well as personal consultation with services providers. The need for affordable rental housing was determined by evaluating data sources, HOME-ARP survey results, service provider input, and public hearing input which supports the need for development of affordable rental housing.

HOME-ARP Activities

Describe the method for soliciting applications for funding and/or selecting developers, service providers, subrecipients and/or contractors and whether the City will administer eligible activities directly:

The City released a Request for Proposals (RFP) to solicit potential developers, subrecipients, and/or a Community Housing Development Organization (CHDO) to develop permanent affordable rental housing open to all HOME-ARP qualifying populations.

Respondents to the RFP were strongly encouraged to include wrap around supportive services, such as case management services and job assistance placement to assist in tenant’s long-term housing stability.
494

City of Visalia Draft HOME-ARP Allocation Plan – FY 2021 Action Plan Amendment 17 If any portion of the City’s HOME-ARP administrative funds were provided to a subrecipient or contractor prior to HUD’s acceptance of the HOME-ARP allocation plan because the subrecipient or contractor is responsible for the administration of the City’s entire HOME-ARP grant, identify the subrecipient or contractor and describe its role and responsibilities in administering all of the City’s HOME-ARP program:

The City has not, and does not plan to, allocate administrative funds to a subrecipient or contractor for the administration of the entire HOME-ARP grant.

The City must indicate the amount of HOME-ARP funding that is planned for each eligible HOME-ARP activity type and demonstrate that any planned funding for nonprofit organization operating assistance, nonprofit capacity building, and administrative costs is within HOME-ARP limits. The following table may be used to meet this requirement.

Table 7: Use of HOME-ARP Funding

Additional narrative, if appliable:

The City’s total allowable HOME-ARP administration amount was $92,002.95; however, the City has decided to transfer $51,943.95 of this amount to activity delivery to increase funding for the development of affordable rental housing. The City is also planning to leverage City Housing Successor Agency (SAH) funds in the amount of $900,000 to be used in conjunction with HOME-ARP funds for the development of affordable rental housing for HOME-ARP qualifying populations. This will provide a substantial amount of funding to increase the impact of the project.

Describe how the characteristics of the shelter and housing inventory, service delivery system, and the needs identified in the gap analysis provided a rational for the plan to fund eligible activities:
495

City of Visalia Draft HOME-ARP Allocation Plan – FY 2021 Action Plan Amendment 18 The Needs Assessment and Gap Analysis identified the need for affordable rental housing as the top priority for the qualifying population. The second top priority identified was the need for additional shelter units. However, a 100-bed Low-Barrier Navigation Center is planned to be developed with the use of CDBG, PLHA, and SAH funds within the City. In addition, tenant-based rental assistance is difficult to expense due to a lack of affordable rental units for the qualifying population. As a result, the City has selected to utilize HOME- ARP funds for the development of affordable rental housing for the most vulnerable population. The City will support organizations that will develop affordable rental housing, in conjunction with providing supportive services to help eligible participants maintain long-term housing-stability.

HOME-ARP Production Housing Goals

Estimate the number of affordable rental housing units for qualifying populations that the City will produce or support with its HOME-ARP allocation:

The City estimates that at-least eleven (11) affordable rental units will be added to the current housing inventory using HOME-ARP funds. The City also estimates an additional $900,000 in Successor Agency Housing funds will be available to assist in the development of HOME-ARP affordable rental housing units, increasing the number of affordable housing units produced for the qualifying populations.

HOME-ARP Allocation Amendment
The City estimates to add 42 affordable rental units to the current housing inventory using HOME-ARP funds.

Describe the specific affordable rental housing production goal that the PJ hopes to achieve and describe how it will address the PJ’s priority needs:

According to the HOME-ARP Needs Assessment and Gap Analysis survey, consultant, public hearing, and the most recent Point in Time Count, the priority need is the development of additional affordable rental housing or parament supportive housing for the qualifying population in conjunction with supportive services. The City anticipates awarding a contract to a qualified non-profit organization or developer that leverages additional funding sources to the HOME-ARP project for the construction or rehabilitation of no less than eleven (11) one-bedroom and/or studio units for the qualifying populations with a minimum 20-year affordability period for the production of affordable rental housing.

496

City of Visalia Draft HOME-ARP Allocation Plan – FY 2021 Action Plan Amendment 19 HOME-ARP Allocation Amendment
The City released an RFP for the development of affordable rental housing with the use of HOME-ARP funds. The RFP was awarded to RH Community Builders for the conversion of a 42-unit motel into Permanent Supportive Housing (PSH) units, known as the Majestic Project. The Majestic Project will provide 42 PSH units to the qualifying populations with wrap around supportive services, including on-site case management, financial literacy, and linkage to job training programs to ensure tenant’s long-term stability.

Preferences

Identify whether the City intends to give preference to one or more qualifying populations or a subpopulation within one or more qualifying populations for any eligible activity or project:
• Preferences cannot violate any applicable fair housing, civil rights, and nondiscrimination requirements, including but not limited to those requirements listed in 24 CFR 5.105(a). • The City is not required to describe specific projects to which the preferences will apply.

The City does not intend to give preference to one or more qualifying populations or subpopulations.

HOME-ARP Allocation Plan Amendment
The City’s HOME-ARP Allocation Amendment includes providing preferences to people experiencing homelessness based on the Community Needs Assessment identifying homelessness as the target population with the highest need for affordable housing.

If a preference was identified, explain how the use of funds of a preference or method of prioritization will address the unmet need or gap in benefits and services received by individuals and families in the qualifying population or category of qualifying population, consistent with the City’s needs assessment and gap analysis:

The City does not intend to give preference to one or more qualifying populations or subpopulations.

HOME-ARP Allocation Plan Amendment
The City intends to give preference to people experiencing homelessness, although all qualifying populations will be considered eligible.

If a preference was identified, describe how the City will use HOME-ARP funds to address the unmet needs or gaps in benefits and services of the other qualifying populations that are not included in the preference:
497

City of Visalia Draft HOME-ARP Allocation Plan – FY 2021 Action Plan Amendment 20 The City does not intend to give preference to one or more qualifying populations or subpopulations.

HOME-ARP Allocation Amendment
Although preferences will be given to people experiencing homelessness, the other qualifying populations will still be considered eligible. The City will also utilize HOME funds to development HOME assisted units for the following qualifying populations: at-risk of homelessness; fleeing/attempting to flee domestic violence, dating violence, sexual assault, stalking, or human trafficking; and greatest risk of housing instability with annual income less than 30% of the area median income (AMI) and is experiencing severe cost burden (i.e., paying more than 50% of monthly household income toward housing costs), and annual income less than 50% of the AMI and meets one of the conditions of “At risk of homelessness” as defined in 24 CFR 91.5(iii).

HOME-ARP Refinancing Guidelines

The City does not intend to use HOME-ARP funds to refinance existing debt secured by multifamily rental housing or insured by any federal program, including CDBG.

498

City of Visalia Draft HOME-ARP Allocation Plan – FY 2021 Action Plan Amendment 21 Appendices
Appendix A: Needs Assessment and Gap Analysis Survey Results

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City of Visalia Draft HOME-ARP Allocation Plan – FY 2021 Action Plan Amendment 30 Appendix B: 2020 Point in Time Count Results

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City of Visalia Draft HOME-ARP Allocation Plan – FY 2021 Action Plan Amendment 31 509

City of Visalia Draft HOME-ARP Allocation Plan – FY 2021 Action Plan Amendment 32 510

City of Visalia Draft HOME-ARP Allocation Plan – FY 2021 Action Plan Amendment 33 Appendix C: Citizen Participation – Public Notices

CITY OF VISALIA | Public Notice of HOME
Investment Partnership American Rescue Plan
(HOME-ARP) Community Needs Assessment

Make Your Voice Heard: The City of Visalia is seeking public input for eligible HOME-ARP activities-based on community needs and housing resource gaps. Public and stakeholder input is critical to developing priorities and goals for the use of HOME-ARP funds. Eligible activities that may be funded with HOME-ARP funds include Affordable Rental Housing, Single Room Occupancy Shelters, Tenant-Based Rental Assistance, and Supportive Services.

Survey: Please take our survey at www.surveymonkey.com/r/HOME-ARP-NeedsAssessment to identify community needs and housing resource gaps to prioritize HOME-ARP activities. Please note the survey will close on December 3, 2021.

Public Hearing: The following public hearing will be held to provide additional public comment on the use of HOME-ARP funds:

Visalia City Council - Public Hearing
Council Chambers
707 W. Acequia Ave. Visalia, CA 93291
December 20, 2021, at 7:00pm

If you are unable to attend, you may submit your comments in writing to Margie Perez, Housing Specialist at [email protected]. The public hearing will also be available for virtual live viewing at https://visalia.legistar.com/Calendar.aspx.

In Compliance with the American Disabilities Act, if you need special assistance to participate in meetings call (559) 713-4512 48-hours in advance of the meeting. For Hearing Impaired call (559) 713-4900 (TTY) 48-hours in advance of the scheduled meeting time to request services.

Visalia City CouncilApril 17, 2023

Visalia City Council
April 17, 2023