HomeMy WebLinkAboutCity Council - 2022-20 RESOLUTION NO. 2022-20
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
HUNTINGTON BEACH APPROVING ACTIONS RELATED TO THE
USE OF $4.21 MILLION IN LOW AND MODERATE INCOME
HOUSING ASSET AND HOME-ARP FUNDING FOR THE HOMEKEY
MOTEL CONVERSION PROJECT LOCATED AT 17251 BEACH
BOULEVARD; FINDING THE HOMEKEY PROJECT EXEMPT FROM
CALIFORNIA ENVIRONMENTAL QUALITY ACT PER SECTION
21080.50 AND DIRECTING STAFF TO FILE A NOTICE OF
EXEMPTION; AND AUTHORIZING THE CITY MANAGER TO
NEGOTIATE, EXECUTE, AND IMPLEMENT A FUTURE FUNDING
AGREEMENT AS NECESSARY RELATED TO THE $1.81 MILLION
IN HOME-ARP 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
Homekey ("Homekey") in the amount of$1.45 billion to sustain and rapidly expand the
inventory of housing for people experiencing homelessness or 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 Homekey 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, Homekey funds will be available to eligible applicants on a continuous,
over-the-counter basis, rather than on a competitive basis; and
WHEREAS, on or around December 28, 2021, AMERICAN FAMILY HOUSING, a
California nonprofit public benefit corporation, and NATIONAL COMMUNITY
RENAISSANCE OF CALIFORNIA, a California nonprofit public benefit corporation (together,
"Developer") and the County of Orange ("County") submitted an application for the Homekey
program grant funding for the acquisition, rehabilitation, and conversion of the motel located at
17251 Beach Boulevard, Huntington Beach for both interim housing and permanent supportive
housing phases ("Project"); and
WHEREAS, the City of Huntington Beach ("City") desires to allocate $4.21 million to
the Project consisting of$2.40 million in Low and Moderate Income Housing Asset Funds
(LMIHAF) for rehabilitation and conversion of the rooms into supportive housing units, and
$1.81 million in HOME Investment Partnerships-American Rescue Plan Act(HOME-ARP)
funds for the fifth-year of supportive services costs. The Huntington Beach Housing Authority
("Authority") will be considering approval of a proposed Affordable Housing Agreement as a
related item to this Resolution. The Affordable Housing Agreement addresses the loan of the
$2.40 million in LMIHAF and this Resolution addresses the funding of the $1.81 million in
HOME-ARP funds; and
RESOLUTION NO. 2022-20
WHEREAS, on February 16, 2022, the County and Developer as co-applicant, were
awarded Homekey funds by HCD in the amount of up to $17.0 million for the Project; and
WHEREAS, due to the anticipated use of HOME-ARP funds, the Project underwent an
environmental review consistent with the Program Regulations found in 24 CFR, Part 58.6; and
WHEREAS, the City has completed its environmental review consistent with Program
Regulations found in 24 CFR, Part 58.6 as it pertains to use of HOME-ARP funds.
NOW, THEREFORE, the City Council of the City of Huntington Beach, DOES
HEREBY RESOLVE as follows:
Section 1. The foregoing recitals are true and correct.
Section 2. The City Council hereby finds and determines that the Project is exempt from
the California Environmental Quality Act pursuant to Public Resources Code Section 21080.50,
because the Project is an interim motel/hotel/housing project as defined in Section 21080.50, and
directs staff to file a Notice of Exemption.
Section 3. The City Council delegate's authority to the City Manager, or designee, to
negotiate, execute, and implement a future funding agreement, for year five (5) supportive
services, as approved by the City Attorney's Office, related to the $1.81 million in HOME-ARP
funds for the Project.
This resolution shall take effect immediately upon its adoption.
PASSED AND ADOPTED by the City Council of the City of Huntingt B chi at a
regular meeting held on the 71h day of June, 2022.
Mayor
REVIEWED AND APPROVED: APPROVED AST ORM:
OF
City Manager City Attorney
ITIATED AND APPROVED:
UMW � 31==
Director of Community Development
2
22-11352/282914
Res. No. 2022-20
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 Regular meeting thereof held on June 7, 2022 by the following vote:
AYES: Peterson, Bolton, Posey, Delgleize, Carr, Moser, Kalmick
NOES: None
ABSENT: None
RECUSE: None
City Clerk and ex-officio Clerk of the
City Council of the City of
Huntington Beach, California