title
CC - ACTION ITEM - (1) Adoption of a Resolution to Submit a Joint Application in Partnership with Community Corporation of Santa Monica for the 93 Unit Jubilo Village New Construction 100% Affordable Permanent Supportive Housing Project Under the California Department of Housing and Community Development Homekey + Notice of Funding Availability in an Amount Not-to-Exceed $22,962,000 Million Dollars; (2) If Desired, Discussion and Consideration of the Appropriation of Local Funds for Capital, Operations and Supportive Services; and (3) Direction to the City Manager as Deemed Appropriate.
body
Meeting Date: January 13, 2025
Contact Person/Dept.: Tevis Barnes/Housing and Human Services
Phone Number: 310.253.5780
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Attachments: Yes [X] No []
Commission Action Required: Yes [] No [X]
Commission Name:
Public Notification: Advisory Committee on Housing and Homelessness (12/17/2024); Community Corporation of Santa Monica (12/17/2024); and (E-Mail) Meetings and Agendas - City Council (01/08/2025).
Department Approval: Tevis Barnes, Housing and Human Services Director (12/31/2024)
_____________________________________________________________________
RECOMMENDATION:
Staff recommends the City Council (1) Adopt a resolution to submit a joint application in partnership with Community Corporation of Santa Monica (Developer) for the 93 Unit Jubilo Village new construction 100% affordable permanent supportive housing project (Project) under the California Department of Housing and Community Development (HCD) Homekey + Notice of Funding Availability (NOFA) in an Amount Not-to-Exceed $22,962,000 Million Dollars; (2) if desired, discuss and consider the appropriation of local funds for capital, operations and supportive services; and (3) provide direction to the City Manager as deemed appropriate.
BACKGROUND/DISCUSSION:
Notice of Funding Availability - Homekey +
The California Department of Housing and Community Development (HCD), in collaboration with the California Department of Veteran Affairs (CalVet) issued a Notice of Funding Availability (NOFA) dated November 26, 2024, for the Homekey + Program. Homekey + makes $2.145 billion dollars available statewide for the creation of Permanent Supportive Housing (PSH) for households with behavioral health challenges. The amount of $599,296,672 is specifically earmarked for Los Angeles County.
Eligible applicants under the Homekey+ NOFA include cities, counties, and all other state, regional and local public entities. These entities may apply jointly with a nonprofit, or for-profit corporation, a limited liability company (LLC) and/or a limited partnership (LP) as a co-applicant. The City of Culver City as an eligible city can apply jointly for Homekey+ funds in partnership with the Developer, a nonprofit organization.
According to the Homekey+ NOFA, HCD will release the official application January 2025. The grant application submission due date is May 30, 2025, or until funds are exhausted, whichever occurs first. Homekey+ applications for funding awards will be funded on a first come first served basis, so early submission is imperative to be competitive for funding. Staff and the Developer anticipate application submission by January 30, 2025.
Award announcements are continuous and are expected to begin June 2025.
New construction projects and accompanying operations and supportive services costs are eligible activities under the Homekey + NOFA.
New construction Homekey+ projects receiving a grant funding award must complete construction within 24 months and break ground within 8 months of the HCD award notification. Awarded projects must be at full occupancy within 29 months from the date of the HCD award notification.
Currently, the Project is expected to begin construction in June 2025 and complete construction in June 2027.
Based on the Homekey+ NOFA, a competitive application submission must score a minimum of 100 points to be eligible for funding. The evaluation criteria include:
1. Site Control
2. Cost Containment
3. Sustained Operating Leverage
4. Experience and Coordination
5. Community Impact
6. Site Selection
7. Relocation Impact
Community Corporation of Santa Monica - Jubilo Village
In an effort to seek and secure additional funding resources to bring the Project to fruition, staff approached the Developer to ascertain their interest in partnering as co-applicants under the Homekey + NOFA. The Developer has agreed to submit a joint application with the City to HCD under Homekey+ for a grant award request of $22,962,000 million.
The Project will be a 100% affordable new construction housing development located at 4460-4464 Sepulveda Blvd, Culver City, CA 90230. The Project will be comprised of 95 multi-family apartment units including 43 units designated for Permanent Supportive Housing reserved for people experiencing homelessness, 50 general affordable units, and 2 units reserved for on-site property management.
The Project will be service-enriched and provide onsite supportive services through a partnership between the Developer and Upward Bound House (UBH), a Culver City local emergency shelter for homeless children and their families.
Project amenities include property and case management offices, a community room and fully equipped kitchen, bicycle storage, a children’s play area and a quiet garden space. The Developer will provide on-site property management services.
The Developer will build the Project in partnership with the property owner, Culver Palms United Methodist Church, and will include a mixed-use project on the church property. Once completed, the Project will be the City’s largest 100% affordable mixed-used project. The City has not produced a 100% affordable mixed-use project in over a decade since the completion of the Tilden Terrace Project located on Washington Boulevard in 2013.
FISCAL ANALYSIS
Homekey + Funding Request
If Council approves the submission of a joint Homekey + application between the City and the Developer, the total funding request will be $22,962,000 for 43 units (out of the total 95 units). Of this request, $19,350,000 will be for capital expenses and $3,612,000 for operations and supportive services.
Project Costs
Based on information obtained from the Developer’s pro forma, the total development cost for the project is $77,565,122 million. This translates to a per unit cost of $816,475.
Based on Homekey+ eligibility criteria, funding will be sought for only 43 units of the 95 project units that are designated for people experiencing homelessness. Other funding sources will be sought to finance the non-Homekey+ units.
Project Funding Sources
The Developer is currently seeking to secure various funding sources to support the Project. The Project will be layering several funding sources to support project development and on-going operations which include local City funding, Homekey+, Section 8 Housing Choice (HCV) Project-Based Vouchers (PBV), County of Los Angeles Department of Health Services (DHS) Intensive Case Management Services (ICMS) funds and Low-Income Housing Tax Credits (LIHTC) through the California Tax Credit Allocation Committee (CTCAC).
The Developer has already received an annual allotment in the amount of $266,800 from DHS ICMS for up to 15 years. The Developer has applied to the Culver City Housing Authority (CCHA) to receive up to 50 PBVs. In addition, the Developer has received an award from the CTCAC. The CTCAC funding is linked to the number of PBV the Project can secure.
Local Funding Commitment
The City of Culver City has a long history of support for the Project. On June 13, 2022, the City Council and Culver City Housing Authority Board jointly approved an increase in the loan commitment to the Developer for the Project from $2 million to $4 million.
In addition, through funds received from the State of California, the City Council is providing $1 million in grant funds to the Project.
As part of the joint application, the City will continue its $5 million dollar commitment to the Project in loan and grant funding.
The City may also entertain the waiving of permit fees for the Project through resolution.
ATTACHMENTS
1. Homekey+ Notice of Funding Availability
2. Authorizing Resolution
MOTIONS
That the Culver City Council:
1. Adopt a resolution to submit a joint application in partnership with Community Corporation of Santa Monica for the 93 Unit Jubilo Village new construction 100% affordable permanent supportive housing project under the California Department of Housing and Community Development Homekey + Notice of Funding Availability in an Amount Not-to-Exceed $22,962,000 Million Dollars from the; and
2. If desired, discuss and consider the appropriation of local funds for capital, operations and supportive services; and
3. Direct the City Manager as deemed appropriate; and
4. Authorize the City Attorney to prepare/review the necessary documents; and
5. Authorize the City Manager to execute such documents on behalf of the City.