DATE: February 21, 2023
TO: Mayor and City Council
FROM: Assistant City Manager
SUBJECT
Title
Adopt a Resolution Amending Resolution 22-225 to Award up to $627,554 in Community Development Block Grant (CDBG) Funds to Bay Area Community Services (BACS) for the St. Regis Multi-Service Campus Project
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RECOMMENDATION
Recommendation
That the Council adopts a resolution (Attachment II) amending Resolution 22-225 to make the following changes:
1. Reallocation of the original appropriation of a $627,554 Community Development Block Grant (CDBG) award to Bay Area Community Services (BACS) from acquisition of the St. Regis Multi-Service Campus to rehabilitation of the St. Regis Multi-Service Campus, and
2. Authorize the City Manager to negotiate and execute an agreement with BACS for an amount not to exceed $627,554 for rehabilitation of the St. Regis Multi-Service Campus.
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SUMMARY
In January 2022, the California Department of Health Care Services (DHCS) and the California Department of Social Services (CDSS) announced a joint Request for Applications (RFA) to expand the State’s behavioral health infrastructure and address historic gaps in the long-term care continuum serving seniors, people with disabilities, and people with behavioral health needs. Under this joint RFA, the State made available $518.5 million for launch-ready behavioral health infrastructure projects through the Behavioral Health Continuum Infrastructure Program (BHCIP) and $570 million to preserve and expand adult and senior care facilities through the Community Care Expansion (CCE) program.
BACS applied for BHCIP and CCE funding to acquire and rehabilitate the St. Regis retirement center and develop a holistic campus of behavioral health treatment, crisis services, and supportive housing. BACS was awarded CCE funding but was not awarded BHCIP funding for this program.
Since they did not receive BHCIP funding, BACS anticipated having a funding gap for acquisition of the St. Regis in the Summer 2022. On August 9, 2022, Council adopted Resolution 22-225, appropriating $627,554 in CDBG funds to BACS for acquisition expenses to help address the anticipated acquisition funding gap. In December 2022, the County of Alameda provided additional funding to BACS, closing the acquisition gap; however, since BACS did not receive BHCIP funding, they continue to need additional funding to support rehabilitation costs. Staff are working closely with BACS to ensure that BACS has CDBG-eligible rehabilitation expenses that are allowable under HUD regulations and the City’s approved Annual Action Plans.
Staff recommend that Council adopts a resolution amending Resolution 22-225 to make the following changes:
1. Reallocation of the original appropriation of a $627,554 Community Development Block Grant (CDBG) award to Bay Area Community Services (BACS) from acquisition of the St. Regis Multi-Service Campus to rehabilitation of the St. Regis Multi-Service Campus, and
2. Add City Manager authorization to negotiate and execute an agreement with BACS for an amount not to exceed $627,554 for rehabilitation of the St. Regis Multi-Service Campus.
ATTACHMENTS
Attachment I Staff Report
Attachment II Resolution
Attachment III Resolution 22-225