1 PERMANENT LOCAL HOUSING ALLOCATION
AGREEMENT BETWEEN THE CITY OF VISALIA AND
VISALIA HOMELESS CENTER
THIS AGREEMENT (the “Agreement”) is made this 1st day of December, 2025, (the “Effective Date”) by and between VISALIA HOMELESS CENTER, a California religious corporation (hereinafter “VHC”), and the City of Visalia, a Charter Law city of the State of California (the “City”). The City and VHC 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 Permanent Local Housing Allocation (PLHA) Program was established by California housing legislation, the Building Homes, and Jobs Act (SB 2, 2017), which receives 70% of the revenue generated by a $75 recording fee on real estate documents to increase the supply of housing for households at or below 60% Area Median Income (AMI), and which allows capital costs for emergency shelters.
C. The City approved award of RFP 25-26-04 to the Visalia Homeless Center (VHC) which included Ninety Thousand Dollars and 00/100 ($90,000.00) for the Operation of a Seasonal Emergency Shelter for homeless individuals and families.
D. VHC desires to work cooperatively with the City to operate a Seasonal Low- Barrier Emergency Shelter for people experiencing homelessness, in the City of Visalia, 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”).
E. The Property is within the jurisdictional boundaries of the City. The operation of the Project will be accomplished using PLHA, and other non-City funding sources.
F. The City is vested with the authority to use PLHA funding for a variety of purposes, including providing funding to a community-based non-profit for operation of a public facility to be operated by a non-profit as a Seasonal Low-Barrier Emergency Shelter for people experiencing homelessness.
NOW, THEREFORE, in consideration of the mutual covenants contained herein, and subject to the terms and conditions hereinafter stated, VHC and City agree as follows:
I. PROJECT DETAILS.
A. VHC agrees to utilize the funding providing through this Agreement for purposes of operation of the Project. The Property shall be owned, or leased, by VHC 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 VHC’s operation of the Project: (1) RFP-25-26-04 FY 2025/26 – FY 2029/30
2 Permanent Local Housing Allocation (PLHA) Seasonal Low-Barrier Emergency Shelter (incorporated herein by reference). “Project Detail” provided by VHC to the City, which shall be incorporated herein as Exhibit A; (2) “Project Budget” spreadsheet provided by VHC, which shall be incorporated herein as Exhibit B-1; and the “Project Budget Narrative”, which shall be incorporated herein as Exhibit B-2.
B. As consideration for VHC’s obligations hereunder, the City shall provide PLHA funds in the amount not to exceed 15% of the City’s annual PLHA grant funding estimated at Ninety Thousand Dollars and 00/100 ($90,000.00) annually up to a total of five (5) years contingent upon annual PLHA grant funding, to assist VHC with the operational costs of a Seasonal Low-Barrier Overnight Emergency Shelter for the period of December 1st through March 31st of each year. However, if a year-round low-barrier drop-in center is developed, and becomes operational, during the FY 2025/26 – FY 2029/30 5-year PLHA plan, the Warming Center’s PLHA funding will be redirected to the operation of the year-round drop-in center.
C. VHC shall assist City as required to maintain compliance with the requirements of the Permanent Local Housing Allocation (PLHA) program under Chapter 364, Statutes of 2017 (SB, Atkins -hereinafter “SB 2”) as authorized by Health and Safety Code (HSC) Section 50470, which created the Building Homes and Jobs Trust Fund and the PLHA program. VHC also agrees to comply with all other applicable Federal, State, and local laws, regulations, and policies governing the funds provided under this Agreement. VHC further agrees to utilize funds available under this Agreement to supplement rather than supplant funds otherwise available as set forth in the Project Budget.
II. GRANT COMPLIANCE.
B. Restrictions Requirements. VHC agrees that the Project shall be used as a Seasonal Low-Barrier Emergency Shelter, benefitting only clientele who are homeless, as per the requirements of PLHA. All benefitting clients must be considered qualified low-income persons ("Qualified Person”).
C. Qualified Person. All benefitting clients must be considered qualified persons ("Qualified Person”). Specifically, a Qualified Person is a person experiencing homelessness in accordance with the McKinney Act definition at 24 CFR 91.5. Annually, VHC 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 the PLHA requirements.
D. Resident Conduct. VHC, 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.
3 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.
E. Maintenance and Operations. VHC agrees to serve as, or otherwise arrange a third party to serve as, the Property manager/Project operator for the Project. VHC shall obtain City’s approval, which shall not be unreasonably withheld, if VHC arranges for a third party to serve as the Property manager/Project operator. Subject to subsection (xii), VHC and its agents or assigns will comply with or otherwise implement the following Property management/Project operation activities :
i. VHC shall comply with all development standards, city codes, and ordinances. Buildings and premises, including paint/siding, roofs, windows, fences, parking lots, landscaping, and electrical systems shall be kept in good repair. Premises shall be kept free of junk and debris.
ii. VHC shall provide a regular program for the control of infestation by insects, rodents, and other pests.
iii. Where conditions are attributable to normal wear and tear, VHC shall make repairs and arrangements necessary to put and keep the premises in as good condition as required by law.
iv. VHC shall maintain all electrical, plumbing, heating, and other facilities in good working order.
v. VHC shall maintain the Public Facility in reasonably weather tight condition and good exterior appearance.
vi. VHC shall remove graffiti within forty-eight (48) hours of it having been observed and/or reported.
vii. VHC shall provide overnight access for the Visalia Police Department to VHC’s maintenance and management staff in person, by telephone, or email. Such numbers shall be provided to the Visalia Police Department dispatch center and updated promptly as changed.
viii. VHC shall establish and conduct a regular program of routine maintenance for the facility. Such program shall include, but not necessarily be limited to, regular inspections of common areas, restrooms, and other similar activities that typically require attention at periodic intervals, but not necessarily continuously. ix. The name and phone number of VHC or VHC’s contracted Property management/Project operator shall be posted in a prominent location at the front of the property.
x. VHC shall maintain decorative planting in a manner that does not obstruct or diminish lighting and visibility throughout the complex and common areas. xi. VHC shall manage the complex in a manner that does not permit inoperative vehicles, boats, trucks (one-ton capacity and over), trailers and/or recreational vehicles to be parked in the facility.
4 xii. In the event that the Property is leased by VHC, City agrees that VHC’s obligations hereunder may be the contractual obligations of the lessor of the Property under the lease agreement (collectively “Lessor Maintenance Obligations”). VHC is not obligated to perform Lessor Maintenance Obligations directly, but instead will be obligated under this Agreement to use its best efforts to ensure that lessor performs all Lessor Maintenance Obligations in accordance with any lease agreement.
III. DEFAULT AND REMEDIES
A. Failure to Perform. Failure by VHC 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 VHC from City. Alternatively, if the breach cannot reasonably be cured within thirty (30) days, VHC shall not be in breach so long as VHC 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 VHC of any breach of the Agreement by specifying:
i. The nature of the event or deficiency giving rise to the breach of the Agreement.
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 VHC cannot comply with the requirements of this Agreement for any reason, VHC may request City to alter VHC’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 VHC notice of a breach or violation of this Agreement. VHC must deliver the request in writing to City. The request must set out the reasons why VHC cannot comply with this Agreement and must describe any hardship to VHC that compliance would cause. City is under no obligation to grant any relief and may proceed with its remedies under this Section III,
5 at law and in equity, despite VHC’s request or the hardship involved. The relief, if any, is to be determined by City in its sole discretion.
E. Right of Contest. VHC 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 VHC 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.
IV. 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 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
Attention: Housing Division
707 W. Acequia Avenue
Visalia, CA 93291
(559) 713-4460
[email protected]
To VHC: Visalia Homeless Center
Attention: Rev. Suzanne Ward, CEO
120 N. Hall Street
Visalia, CA 93291
With a copy to: Michael O. Glass, Esq.
Ragghianti Freitas LLP
Email: [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 Federal Requirements. VHC shall comply with the following laws and directives to the extent such laws and directives apply:
6 i. The Hatch Act as set forth in Title 5, Chapter 15, of the United States Code;
ii. Title VIII of the Civil Rights Act of 1968, P.L. 90-284;
iii. Section 109 of the Housing and Community Development Act of 1974;
iv. Title VI of the Civil Rights Act of 1964, P.L. 88-352, and the regulations of HUD with respect thereto, including 24 CFR, Parts 1 and 2;
v. The Fair Housing Act (42 U.S.C. 3601-3619) as amended;
vi. Section 3 of the Housing and Urban Development Act of 1968, as amended, and the regulations of HUD with respect thereto, including 24 CFR, Part 135;
vii. National Historic Preservation Act of 1966 (16 USC 470) as amended, procedures set forth in 36 CFR part 800;
viii. Uniform Act (URA) of 1970 as amended, and the regulations in HUD Handbook 1378 with respect thereto;
ix. Residential Lead-Based Paint Hazard Reduction Act of 1992 (Title X), and the regulations of HUD with respect thereto, including 24 CFR, Part 35;
x. Executive Order 11063, as amended;
xi. The Age Discrimination Act of 1975;
xii. The Architectural Barriers Act (ABA) of 1968 as amended;
xiii. Section 504 of the Rehabilitation Act of 1973;
xiv. Executive Order 11246, as amended, and the regulations which are issued pursuant thereto;
xv. The Federal Labor Standards Act;
xvi. Section 202(a) of the Flood Disaster Protection Act of 1973;
xvii. Sections 302 and 401(b) of the Lead-Based Paint Poisoning Prevention Act and implementing regulations in 24 CFR, Part 35;
xviii. The Davis-Bacon Act, as amended, which requires that all laborers and mechanics who are employed to perform work on the Project, or any contractor or construction work which is financed, in whole or in part, with assistance which is received under the Housing and Community Development Act of 1974 shall be paid wages at rates which are not less than those that prevail in the locality for
7 similar construction and shall receive overtime compensation in accordance with the Contract Work Hours and Safety Standards Act. The contractor and its subcontractors shall also comply with all applicable Federal laws and regulations which pertain to labor standards, including the minimum wage law;
xix. 24 CFR, Part 576, of the Stewart B. McKinney Homeless Assistance Act;
xx. 45 CFR, Part 76, Subpart F of the Drug-Free Workplace Act of 1988;
xxi. Section 319 of Public Law 101-121, of the Department of the Interior Appropriations Act, which prohibits Owner from using appropriated Federal funds for lobbying the Executive or Legislative Branches of the Federal Government in connection with a specific contract, grant, or loan, and requires that no Federal appropriated funds have been paid or will be paid, by or on behalf of Owner, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement;
xxii. Title I of the Housing and Community Development Act of 1974, as amended, which requires that Owner shall: (a) Not discriminate against any employee or applicant for employment on the basis of religion and not employ or give preference in employment to persons on the basis of religion: (b) Not discriminate against any person applying for such public services on the basis of religion and not limit such services or give preference to persons on the basis of religion; (c) Provide no religious instruction or counseling, conduct no religious worship or services, engage in no religious proselytizing and exert no other religious influence in the provision of such public services;
xxiii. Title II of the Americans with Disabilities Act of 1990 as amended.
xxiv. None of the personnel employed in the administration of the Project shall be in any way or to any extent engaged in the conduct of political activities in contravention of Chapter 15 Title 5, U.S. Code.
xxv. None of the Funds to be paid under this Agreement shall be used for any partisan political activity, or to support or defeat legislation pending before Congress.
xxvi. Owner shall comply with the requirements of Executive Order 11625 which provides for the utilization of minority businesses in all federally assisted contracts to the greatest extent possible.
xxvii. Any material breach of the terms of this section shall result in forfeiture of all Funds received by Owner pursuant to this Agreement, or any part thereof as determined by the City.
8 C. Records Maintenance. VHC 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 federal audit findings, whichever occurs later. VHC 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 VHC of compliance with this provision shall be accomplished by delivering the initial “Income Certification” application/form which shall be provided to VHC 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, VHC 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, 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 VHC to another legal entity wholly controlled and managed by VHC 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 VHC as partners, co-venturers or principal and agent with one another.
H. Warranties. City expresses no warranty or representation to VHC 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. VHC 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 VHC’s operation of the Project except for the gross negligence or misconduct of City and its respective Council members, officers and employees. This provision shall survive expiration and/or termination of this Agreement.
9 L. Governing Law. This Agreement shall be interpreted under the laws of the State of California.
IN WITNESS WHEREOF, Purchaser has executed this Agreement, effective the day and year first set forth above.
VISALIA HOMELESS CENTER
Dated: _____________________ ________________________________ By: The Rev. Suzanne Ward
Its: President
CITY OF VISALIA
Dated: ______________________ By: _____________________________
Its: Leslie Caviglia, City Manager
APPROVED AS TO FORM
By: ____________________________
City Attorney
10 Exhibit A - Project Approach
The Visalia Warming Center is a low-barrier overnight space for those who are experiencing homelessness during the coldest months of the year. The Center provides a consistent environment of acceptance, operating seven days a week, ten hours a day from 9 PM to 7 AM.
The Center offers simple snacks, warm beverages, and modest sleeping arrangements (mats and blankets). It will also have a kennel area to accommodate the pets of clients. The Center also provides, through donations, hygiene items as well as some clothing, including socks and jackets. It provides the greatest capacity available in Visalia to serve an average overnight street population of close to 500 individuals. It is anticipated that 150 to 200 of those individuals will take advantage of the Visalia Warming Center's facilities sometime during the winter. Daily logs allow an accounting and admission to the HMIS system so an individual’s information can be recorded into that person's long term homelessness history. Staff are trained in entering individuals into the HMIS system.
The Center has operated for the past 10-years and received many local acknowledgments for its outreach to those who are experiencing homeless. It has become a model for the combination of volunteers and paid staff. It has also been acknowledged as a model for engaging individuals with complex issues, allowing them to find a warm, safe place for the night while becoming receptive to receiving some basic services. Prior years the Warming Center was funded with City PLHA and Homeless Emergency Assistance Program (HEAP) grant administered by the Kings/Tulare Homeless Alliance that originated with the California Business, Consumer Services and Housing Agency through the state's Homeless Coordinating and Financing Council.
In the past, the Center generally operated for eight to ten weeks at St. Paul's Episcopal Church.
Having previously operated this program, two key staff members will return as well as many of the volunteer teams. Overnight supervising staff will need to be hired, but previous volunteers have indicated interest in seeking employment. Another goal will be to reach out to more faith- based groups and service organizations in search of teams of volunteers and/or donations of packaged snacks, jackets, and hygiene items. All the necessary supplies and furniture are already on hand. Only perishable snacks and coffee supplies need to be purchased.
Once project funding is approved, the Visalia Police Department's HOPE (Homeless Outreach and Proactive Enforcement) team will be notified of the confirmed start date, along with social workers at Kaweah Health. As in the past, cards will be printed that housing navigators, HOPE team officers, and hospital workers use to pass out information about the Warming Center.
The Warming Center has a history of partnering with Tulare County Health and Human Services for various services. These have included representatives from Crisis Intervention, Drugs and Alcohol, Adult Protective Services and Public Health. The Center has an active relationship with the Kaweah Health Street Medicine Team, which has mobilized to provide direct medical services to clients in need. Besides providing some direct services, these partners have assisted with needed referrals. Housing Navigators from the Kings/Tulare Homeless Alliance have provided support as well as Kaweah Health’s Bridge Program. Among the Warming Center's most active partners is the faith-based community in Visalia, most notably Christ Lutheran Church. The intent is to engage with these existing partners and continue to develop and possibly expand this partnership list. The Center's staffing and donations are dependent on various partnerships with faith-based and secular organizations.
11 Exhibit B-1 - Project Budget
12 Exhibit B-2 - Project Narrative