DATE: December 6, 2022
TO: Mayor and City Council
FROM: Assistant City Manager
SUBJECT
Title
Adopt Resolutions Authorizing the City Manager to: (1) Accept and Appropriate Funds Awarded by the California State Legislature under Assembly Bill 179 in an Amount up to $5.4 Million for the City’s Scattered Site Housing Program, and Negotiate and Execute Documents and Any Subsequent Amendments, Modifications, or Documents Thereto with the California State Department of Housing and Community Development; and (2) Negotiate and Execute Loan Documents between the City of Hayward and Bay Area Community Services in an Amount Not-to-Exceed $5.4 Million to Acquire and Rehabilitate a Minimum of Three Single-Family Homes for the City’s Scattered Site Housing Program, for which the California Environmental Quality Act Does Not Apply
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RECOMMENDATION
Recommendation
That the Council adopts two resolutions authorizing the City Manager to:
1. Accept and appropriate funds awarded by the California State Legislature under Assembly Bill (AB) 179 in an amount up to $5.4 million for the City’s Scattered Site Housing program, and negotiate and execute documents and any subsequent amendments, modifications, or other documents thereto with the California State Department of Housing and Community Development (HCD) regarding acceptance of the funds (Attachment II); and
2. Negotiate and execute loan documents between the City of Hayward and Bay Area Community Services (BACS) in an amount not-to-exceed $5.4 million for the City’s Scattered Site Housing program (Attachment III).
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SUMMARY
On January 25, 2022, Council adopted Resolution 22-030 authorizing a joint application with BACS for the State Homekey Program to fund the City’s Scattered Site Housing program. The program converts single family homes to supportive shared housing, bringing housing for those experiencing chronic homelessness into existing residential communities with proximity to services, transport, and social connections. Acquisition of at least three homes will provide long term, affordable housing with access to supportive services for approximately 20 adults experiencing chronic homelessness. The City’s Homekey Round 2 application was denied for not meeting the threshold requirement of having site control and property appraisals at the time of application and staff have since worked with HCD to identify ways to make future applications more competitive.
On June 30, 2022, the Governor approved AB 179, the Budget Act of 2022, which included an award to the City of Hayward in the amount of $5.4 million for the City’s new Scattered Site Housing program, despite the Homekey denial. Since the award was made to the City to fund the Scattered Site Housing program, the Council must authorize acceptance of the funds and allocation of the funds to the project. The California Environmental Quality Act (CEQA) does not apply to the Scattered Site Housing Program, as the program is a ministerial project.
Additionally, staff recommends that Council authorize the City Manager to negotiate a loan agreement with BACS to use the recently awarded State funds for the City’s Scattered Site program to make down payments on a minimum of three single-family properties. Staff proposes making a loan to BACS for the program, instead of a grant, to allow for the possibility that the City may be successful at obtaining future Homekey funds for the program and therefore, be able to establish a revolving loan fund to acquire additional homes for the program.
In sum, staff recommends that Council adopt resolutions authorizing the City Manager to: (1) accept and appropriate the funds, and negotiate and execute any executing documents with HCD for up to $5.4 million in funds awarded through AB 179 for the City’s Scattered Site program; and (2) execute a loan agreement of up to $5.4 million to BACS to acquire and rehabilitate a minimum of three single-family homes for the program consistent with AB 179.
ATTACHMENTS
Attachment I Staff Report
Attachment II Resolution to Accept and Appropriate Funds
Attachment III Resolution to Negotiate and Execute Loan