HomeMy WebLinkAboutCity Council - 2021-74 RESOLUTION NO. 2021-74
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
T-ifNTINGTON BEACH DIRECTING COLLABORATION WITH THE
COUNTY OF ORANGE AND AMERICAN FAMILY HOUSING AND
NATIONAL. CORE TO SUBMIT AN APPLICATION FOR HOMEKEY
PROGRAM GRANT FUNDING-, FINDING THE PROJECT EXENIPT
FROM THE CALIFORNIA ENVIRONMENTAL QUAI-11-Y ACT AND
DIRECTING STAFF TO FILE A NOTICE OF EXEMPTION;
CONDITIONALLY APPROVING COMMITTING THE USE OF S4.21
MILLION TOWARD THE PROJECT AND AUTHORIZING THE CITY
MANAGER. TO TAKE ACTIONS NECESSARY TO SECURE
HONIEKEY PROJECT GRANT FUNDS.
WHEREAS.on September 9, 2021, the California Department of Housing and Community
Development (HCD) issued a Notice of Funding Availability (Round 2) for Project I-lomekey
(`Homekey") in the amount of'S 1.45 billion to sustain and rapidly expand the inventory of housing
for people experiencing homelessness or are 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-, and
WHEREAS. the purpose of I-lomckey is to provide 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 supportive housing or interim housing-, and
WHEREAS, Homekev funds will be available to eligible applicants on a continuous, first
come, first served, over-the-counter basis; and
WHEREAS, The City of Huntington Beach ("City') desires to collaborate with American
Family Housing and National CORE-' (collectively, the "Developer`) and the County of Orange
("County') to submit an application for the Homekey program grant funding for the acquisition,
rehabilitation and conversion of the motel located at 17251 Beach Boulevard, Huntington Beach
(the "Project"): and
WHEREAS, the estimated total Project costs for acquisition, rehabilitation, conversion and
operations of the Project for years one through five are S24.78 million, of which $16.27 million
will consist of acquisition and rehabilitation costs with the balance of S8.51 million consisting of
operating costs for five years; and
WHEREAS, the City contribution to the proposed Project would be $4.21 million
consisting of S2.40 million of Low and Moderate Income Housing Asset Fund (LMIHAF) for
acquisition, rehabilitation, and conversion of the rooms into supportive housing units, and
approximately S1.81 million of HOME Investment Partnerships-American Rescue Plan Act
(HOME-ARP) funds the fifth year of operating costs; and
RESOLUTION NO. 2021-74
WHEREAS, pending appropriate approvals, Orange County Healthcare Agency's Office
of Care Coordination ("County CoC") will contribute 54.92 million of the $8.51 million in
operating funds needed; and
WHEREAS, the County, and Developer as co-applicant, will apply to FICD for an award
of Flomekey Funds in the amount of S 15.66 million for the Project; and
WHEREAS, as part of the Project Homekey program, an evaluation of potential relocation
of permanent tenants. if any, will be conducted; and
WHEREAS. funding commitments are required to ensure the Homekey application is
complete and competitive.
NOW. TFIEREFORE, the City Council of the City of Huntington Beach, DOF S HEREBY
RESOLVE as follows:
Section 1. The foregoing recitals are true and correct and incorporated herein by this
reference.
Section 2. The City Council hereby finds and determines that the Project is exempt from
the California Environmental Quality Act (CEQA) pursuant to AB 140 (2021) (the "Flomekey
Program') and Sections 50675.1.3 and Section 50675.1.4 of the Health and Safety Code and
directs staffto file a Notice of Exemption.
Section 3. The City Council hereby approves the conditional finding of the proposed
Project in the amount of$4.21 million consisting of$2.40 million in LMIHAF matching finds and
$1.81 million in HOME-ARP funding based upon the following conditions precedent:
a) Developer or County's successful acquisition of the proposed Project site;
b) Receipt of sufficient County CoC funding, or another non-City funding source, to
cover years one through four of operating costs associated with the proposed
Project in the amount of'54.92 million; and
c) HCD award of Homekey funding in the amount of 515.66 million.
Section 4. If one or more of the conditions outlined in Section 2. above are not met then
the proposed Project funding, consisting of LMIHAF and FIONIE-ARP funds, will remain in their
respective City fund accounts for use on other future eligible activities as determined by the City
Council and the proposed Project will not move forward.
Section 5. In the event that relocation of permanent residents is required as part of the
Project, the Director of' Community Development is delegated the authority to evaluate and
approve any Relocation Plan and associated documents with approval as to form by the City
Attorney.
21-10740/272265
RESOLUTION NO. 2021-74
Section 6. The City Manager, or designee, is delegated the authority to take any and all
actions necessary to secure Homekey Program grant funds, including but not limited to executing
a local match funding commitment letter.
Section 7. This resolution shall take effect immediately upon its adoption.
PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a
special meeting held on the 1"day of December, 2021.
Mayor
REVIEWED AND APPROVED: APPROVED AS TO FORM:
City anager ity Attorneyfâś“
INITIATED AND APPROVED:
Director of Community Development
3
21-10740/272265
Res. No. 2021-74
STATE OF CALIFORNIA
COUNTY OF ORANGE ) ss:
CITY OF HUNTINGTON BEACH )
I, ROBIN ESTANISLAU, the duly elected, qualified City Clerk
of the City of Huntington Beach, and ex-officio Clerk of the City Council of
said City, do hereby certify that the whole number of members of the City
Council of the City of Huntington Beach is seven; that the foregoing resolution
was passed and adopted by the affirmative vote of at least a majority of all the
members of said City Council at a special meeting thereof held on
December 1, 2021, by the following vote:
AYES: Bolton, Delgleize, Carr, Posey, Moser, Kalmick,
NOES: None
ABSENT: Peterson
ABSTAIN: None
City Clerk and ex-officio Clerk of the
City Council of the City of
Huntington Beach, California