1 DRAFT ENCAMPMENT RESOLUTION FUNDING ROUND 3 WINDOW 3
AGREEMENT BETWEEN THE CITY OF VISALIA AND
ELEVATE COMMUNITY SERVICES, INC.
THIS AGREEMENT (the “Agreement”) is made this ___ day of __________, 2025, (the “Effective Date”) by and between ELEVATE COMMUNITY SERVICES, INC., a private, non-profit community-based organization (hereinafter “ELEVATE”), and the CITY OF VISALIA, a Charter Law city of the State of California (the “City”). The City and ELEVATE may be referred to collectively herein as the “Parties” or individually as a “Party.”
RECITALS
A. These Recitals are a material part of the Agreement and incorporated in the substantive and binding terms of the Agreement as if fully set forth therein.
B. The Encampment Resolution Funding (ERF) Program provides funding for person-centered projects that resolve unsheltered homelessness in encampments. ERF projects should address safety and wellness in encampments, resolve critical encampment concerns, and transition people into interim shelter or permanent housing. ERF projects should strengthen existing, successful models and/or support new approaches that provide safe, stable, and permanent housing for people in encampments. ERF funds may only be used for projects that connect people experiencing homelessness in encampments to interim shelter with clear pathways to permanent housing or place people directly into permanent housing to be used in accordance with applicable provisions under the authority of Chapter 7 of Part 1 of Division 31 of the California Health and Safety Code (HSC) (sections 50250 et seq.)The Encampment Resolution Funding Program (Program) was established to increase collaboration between the California Interagency Council on Homelessness (Cal ICH) local jurisdictions, and Continuums of Care.
C. On December 4, 2023, City Council authorized staff to apply for Encampment Resolution Funding Program, Round 3 (ERF-3-R) for the on-site staffing and 19-units of rental subsidies for the Sequoia Village to provide permanent supportive housing for persons living in targeted encampments within the City of Visalia. On December 23, 2024, the City of Visalia was awarded Eight-Hundred Fifty-One Thousand and One-Hundred and Ninety Dollars and 00/100 ($851,190.00) in ERF-3-R window 3 funds for the Sequoia Village operational funds for on-site staffing including enhanced case management, security, and 19-units of rental subsidies for persons living in targeted encampments within the City of Visalia. Target encampments are identified in Exhibit C - Targeted Visalia Encampments.
D. ELEVATE desires to operate a permanent supportive housing project for people experiencing homelessness, located at 1400 S. Mooney Blvd. Visalia, CA 93277, and more particularly described and identified in Exhibit A - Project Approach, attached hereto and incorporated herein (the “Project”). Said Project will be committed to “Limited Clientele”, strictly to only those who are homeless, in accordance with 24 CFR 91.5 as set forth herein (the “Project”).
2 E. The Property is within the jurisdictional boundaries of the City. The operation of the Project will be accomplished using Encampment Resolution Funding (ERF) Round 3 funds, and other non-city funding sources.
F. The City is vested with the authority to use ERF funding for a variety of purposes, including providing funding to a community-based non-profit for operation of a permanent supportive housing complex for people experiencing homelessness. The project will utilize a Housing First, Low-Barrier Shelter Approach, which endeavors to quickly connect individuals and families experiencing homelessness to permanent housing without preconditions and barriers to entry.
G. The Project was constructed in all material respects in accordance with applicable zoning, building, housing and other codes, ordinances, and regulations consistent with the construction, and operation of a permanent supportive housing project on the Property.
H. Mooney Sequoia LP will own the property located in the City of Visalia at 1400 S. Mooney Blvd., Visalia, CA, 93277.
NOW, THEREFORE, in consideration of the mutual covenants contained herein, and subject to the terms and conditions hereinafter stated, ELEVATE and City agree as follows:
I. PROJECT DETAILS.
A. ELEVATE agrees to utilize the funding providing through this Agreement for purposes of operation of the Project. The Property shall be owned by Mooney Sequoia LP and operated by ELEVATE in partnership with RH Community Builders to operate the complex (Sequoia Village) as the lead organization and project manager. Subject to the specific terms and conditions contained herein, the following documents contain the general understanding of the parties with regards to the City’s funding for ELEVATE’s operation of the Project: “Project Detail” provided by ELEVATE to the City, which shall be incorporated herein as Exhibit A – Project Approach; (2) “Project Budget” spreadsheet provided by ELEVATE, which shall be incorporated herein as Exhibit B – Project Budget.
B. As consideration for ELEVATE’s obligations hereunder, the City shall provide ERF-3-R funds in the amount not to exceed Eight-Hundred Fifty-Five Thousand and Six- Hundred Dollars and 00/100 ($855,600.00), for the period of July 1, 2025, through June 30, 2028, to assist ELEVATE with on-site enhanced case management, security, and 19-unit of rental subsidies for the Sequoia Village.
C. ELEVATE shall assist City in compliance with the requirements of the ERF program under the authority of Chapter 7 of Part 1 of Division 31 of the California Health and Safety Code (HSC) (sections 50250 et seq.), the Encampment Resolution Funding Program was established to increase collaboration between the California Interagency Council on Homelessness (Cal ICH), Local Jurisdictions, and Continuums of Care for the following purposes:
1. Assist Local Jurisdictions in ensuring the safety and wellness of people experiencing homelessness in encampments.
3 2. Provide grants to Local Jurisdictions and continuums of care to resolve critical encampment concerns and transition individuals into safe and stable housing.
3. Encourage a data-informed, coordinated approach to address encampment concerns.
ELEVATE also agrees to comply with all other applicable State, and local laws, regulations, and policies governing the funds provided under this Agreement. The Subrecipient further agrees to utilize funds available under this Agreement to supplement rather than supplant funds otherwise available.
II. GRANT COMPLIANCE.
A. Restrictions Requirements. ELEVATE agrees that the Project shall be used as Permanent Supportive Housing complex, benefitting clientele - who are homeless and priority entry to those residing in targeted Visalia encampments, and following the “Housing First” approach and resulting in successful exits to permanent housing as per the requirements of ERF funds. All benefiting clients must be considered qualified persons ("Qualified Person”).
B. Qualified Person Certification. A Qualified Person is a person experiencing homelessness in accordance with the McKinney Act definition at 24 CFR 91.5. Annually during the affordability period for the Project, ELEVATE must certify in writing to the City with appropriate supporting documentation that the Use Restriction Requirements required by this Section have been completed in accordance with ERF and City requirements.
C. Resident Conduct. ELEVATE, its successors and assigns shall ensure that any Qualified Person residing at the Project conduct themselves in accordance with the following standards:
i. Standards of aesthetics for residents regarding use and condition of the exterior amenities of the Facility, including patios and entryways. ii. Noise standards that comply with City requirements and limits. iii. Rules related to open/recreational areas that address, at a minimum, alcoholic beverage use, and public nuisance activities. iv. Parking prohibition of inoperative vehicles, boats, trucks of one-ton capacity and over, trailers and/or recreational vehicles within the complex. v. Standards of behavior for residents that could lead to eviction. vi. Residential illegal activity will not be tolerated and ELEVATE and its successors must enforce property standards and implement eviction when necessary.
III. REPORTING COMPLIANCE
A. Reporting Compliance. ELEVATE shall be responsible for Homeless
4 Management Information System (HMIS) data entry and reporting to the City, Cal ICH, and California Department of Housing and Community Development (HCD) for all ERF-3-R targeted encampment clients. ELEVATE shall submit such reports as are required by the City to meet its local obligations and its obligations to Cal ICH, and HCD. Pursuant to HSC §50254 and WIC §8256, ERF-3-R grantees are required to enter specified data elements on the individuals and families served into their local HMIS. ELEVATE must follow the entry format specified by Cal ICH and/or HCD, which includes the use of funding codes (Other Funder Code and Grant ID) as described in the AB 977 HMIS Project Setup Instructions. Required reports include, but are not limited to the following:
ERF-3-R Subrecipient Requirements
Report Frequency Data Points
ERF-3-R Quarterly
Report
Quarterly • ERF-3-R Quarterly Performance Report
• Quarterly narrative and HMIS performance report.
Annual Report
Upon Project
Development
Annual • Annual Client Performance Tracker Report - Beneficiary data (direct client services) - demographics and income.
Final Report End of project • Major milestones (final performance report) • Goal comparison and analysis
• Leveraged funds
• Financial report
• Total cost and share that is ERF
Reimbursement
Requests
Monthly • Expenditures
• Timeliness
• Invoice
• General Ledger of Expenditures
• Source Expenditure Documents (i.e., receipts or invoices)
IV. DEFAULT AND REMEDIES
A. Failure to Perform. Failure by ELEVATE to duly perform, comply with, or observe any of the conditions, terms, or covenants of this Agreement shall constitute a breach of this Agreement, such failure having continued uncured for thirty (30) days after receipt of written notice thereof by ELEVATE from City. Alternatively, if the breach cannot reasonably be cured within thirty (30) days, ELEVATE shall not be in breach so long as ELEVATE is diligently undertaking to cure such breach and such breach is cured within ninety (90) days.
B. Notice of Default and Opportunity to Cure. For any breach of this Agreement, City shall give written notice to ELEVATE of any breach of the Agreement by specifying:
i. The nature of the event or deficiency giving rise to the breach of the Agreement.
5 ii. A date, which shall not be less than thirty (30) calendar days from the date of receipt of the notice, by which such action to cure must be taken. The City has the sole discretion to determine whatever additional reasonable time, up to ninety (90) days, is needed to cure.
C. Remedies. Upon the occurrence of a breach of the Agreement, and a failure to cure said breach within the time specified, the City's obligation to disburse funds shall terminate, and City may also, in addition to other rights and remedies permitted by the Agreement or applicable law, proceed with any or all of the following remedies in any order or combination City may choose in its sole discretion:
i. Terminate this Agreement, in which event City funds previously disbursed shall become due and payable within thirty (30) days, including any loan payments that may have otherwise been forgiven pursuant to Section I(C) herein. ii. Bring an action in equitable relief seeking the specific performance by Borrower of the terms and conditions of this Agreement, and/or enjoining, abating, or preventing any violation of said terms and conditions, and/or seeking declaratory relief. iii. Pursue any other remedy allowed by law or in equity.
D. Hardship Exemption. If ELEVATE cannot comply with the requirements of this Agreement for any reason, ELEVATE may request City to alter ELEVATE’s obligations hereunder on terms acceptable to City, but no such request may be made later than thirty (30) days after City has delivered to ELEVATE notice of a breach or violation of this Agreement.
ELEVATE must deliver the request in writing to City. The request must set out the reasons why ELEVATE cannot comply with this Agreement and must describe any hardship to ELEVATE that compliance would cause. City is under no obligation to grant any relief and may proceed with its remedies under this Section III, at law and in equity, despite ELEVATE’s request or the hardship involved. The relief, if any, is to be determined by City in its sole discretion.
E. Right of Contest. ELEVATE shall have the right to contest in good faith any claim, demand, levy, or assessment, the assertion of which would constitute a breach of the Declaration hereunder. Any such contest shall be prosecuted diligently and, in a manner, non- prejudicial to City or the rights of City hereunder.
F. Remedies Cumulative. No right, power, or remedy given to City by the terms of this Agreement is intended to be exclusive of any other right, power, or remedy; and each and every such right, power, or remedy shall be cumulative and in addition to every other right, power, or remedy given to City by the terms of any such instrument, or by any statute or otherwise against ELEVATE and any other person. Neither the failure nor any delay on the part of City to exercise any such rights and remedies shall operate as a waiver of such right or remedy, nor shall any single or partial exercise by City of any such right or remedy preclude any other or further exercise of such right or remedy, or any other right or remedy.
V. GENERAL PROVISIONS
A. Notices, Demands and Communications between the Parties. Any approval, disapproval, demand, document or other notice ("Notice") which any party may desire to give to the other parties under this Agreement must be in writing and may be given by any commercially
6 acceptable means, including, but not limited to email and/or via overnight courier, to the party to whom the Notice is directed at the address of the Party as set forth below, or at any other address as that Party may later designate by Notice.
To City: City of Visalia, Finance Department
Attention: Housing Division
707 W. Acequia Avenue
Visalia, CA 93291
(559) 713-4460
[email protected]
To ELEVATE: Elevate Community Services, Inc.
Attention: Wayne Rutledge, CEO
3040 N. Fresno Street
Fresno, CA 93703
[email protected]
Any Notice shall be deemed received immediately if delivered by hand, on the third day from the date it is postmarked if delivered by first-class mail, postage prepaid, upon receipt of verification of receipt if sent via email, and on the next business day if sent via nationally recognized overnight courier. Notices sent by a Party's attorney on behalf of such Party shall be deemed delivered by such Party.
B. Compliance with Chapter 7 of Part 1 of Division 31 of the California Health and Safety Code (HSC) (sections 50250 et seq.), for the Encampment Resolution Funding Program.
C. Records Maintenance. ELEVATE shall retain all records pertinent to the Project and activities and expenditures incurred under this Agreement for a period of five (5) years after the termination of all activities funded under this Agreement or after the resolution of all State audit findings, whichever occurs later. ELEVATE shall maintain data documenting resident eligibility for housing and/or services provided. Such data shall include, but not be limited to, resident name, address, income level, ethnicity, and description of housing and/or services provided.
Reporting to City by ELEVATE of compliance with this provision shall be accomplished by delivering the initial “Income Certification” application/form which shall be provided to ELEVATE by the City. Thereafter, ongoing monitoring shall also include submission of annual audits, review of partner agreements, review of cash flows, reserves and capital improvements as requested by City. In addition, ELEVATE shall, if requested by City, provide to City a report or any other documentation relative to partnerships agreements, operational statements, including cash flow, reserves and capital improvements, occupancy, Resident composition, and such other matters as City shall reasonably request to ensure compliance.
D. Assignment, Transfers and Successors. For purposes of this Agreement, "Transfer" shall mean any sale, assignment, or transfer, whether voluntary or involuntary, of any rights and/or duties under this Agreement, and/or any interest in the Project or the Property, including, but not limited to, a fee simple interest, a joint tenancy interest, a partnership interest,
7 a leasehold interest, a security interest, or an interest evidenced by a contract by which possession of the Project is transferred.
i. No Transfer shall be permitted without the prior written consent of the City.
ii. The approval of transfers by ELEVATE to another legal entity wholly controlled and managed by ELEVATE shall be permitted by the City and approval of said transfer shall not be reasonably withheld.
F. Severability. In the event any term or provision of this Agreement is deemed to be in violation of law, null and void, or otherwise of no force or effect, the remaining terms and provisions of this Agreement shall remain in full force and effect.
G. Parties Not Co-Venturers. Nothing in this Agreement is intended to, or does, establish the City and ELEVATE as partners, co-venturers or principal and agent with one another.
H. Warranties. City expresses no warranty or representation to ELEVATE as to fitness or condition of the Property or the Project, other than those specifically contained in the Purchase and sale Agreement between the Parties.
I. Attorney’s Fees. In the event any legal action is commenced to interpret or to enforce the terms of this Agreement or to collect damages as a result of any breach thereof, the party prevailing in any such action shall be entitled to recover against the party not prevailing, its reasonable attorney’s fees and costs incurred in such action.
K. Indemnification Regarding Project. ELEVATE agrees to indemnify, protect, hold harmless and defend (by counsel reasonably satisfactory to City) the City, and its respective Council members, officers and employees from all liability arising out of the Project, the Property, and ELEVATE’s operation of the Project, to the extent that such liability arises from the acts or omissions of ELEVATE, its subcontractors or guests. This provision shall survive expiration and/or termination of this Agreement.
L. Governing Law. This Agreement shall be interpreted under the laws of the State of California.
8 IN WITNESS WHEREOF, Purchaser has executed this Agreement, effective the day and year first set forth above.
ELEVATE COMMUNITY SERVICES, INC.
(ELEVATE)
Dated: _____________________ By:________________________________
Its: Wayne Rutledge, Chief Executive Officer
CITY OF VISALIA
Dated: ______________________ By: _____________________________
Its: Leslie Caviglia, City Manager
APPROVED AS TO FORM
By: ____________________________
City Attorney
9 Exhibit A - Project Approach
The Sequoia Village project is a 50-unit motel conversion located at 1400 S. Mooney Blvd in Visalia into a 50-unit of permanent supportive housing development, and one on-site manager unit complete with kitchens and five ADA accessible units for persons with mobility impairments, and two ADA accessible units for persons with sensory impairments, known as the Sequoia Village. Elevate Community Services in partnership with RH Community Builders will provide on-site intensive case management and support services to all residents to ensure long- term stability.
The property underwent 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 unit 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 new security system.
Sequoia Village was acquired and owned by Mooney Sequoia LP, a California limited partnership, general partners are RHCB Visalia LLC, HOM XXIV LLC, and UP Visalia LLC UPHoldings. is responsible for compliance, underwriting, and permanent conversion plans, while Visalia LP and RH Community Builders (RHCB) are the onsite operations and property managers.
Sequoia Village units are affordable through operating subsidies provided by the Kings/Tulare Homeless Alliance and services will be offered on-site by RHCB and Tulare County Mental Health.
10 Targeted Visalia Encampments
Encampment Resolution Funding Round 3
1. State Hwy 198 Ben Maddox on ramp and State Hwy 198 between Burke Street and Santa Fe Street (4,031 ft), and the Demaree on ramp (785 ft).
11 2. State Route 63 at Riverway Sports Park, N. Dinuba Blvd between West Riggin Avenue and East Houston Avenue, and Lincoln Oval Park.