TO: Board of Supervisors
FROM: Minh C. Tran, County Executive Officer
REPORT BY: Jennifer Palmer, Director of Housing & Homeless Services
SUBJECT: One-Time Housing Funds for Whole Person Care Pilots
RECOMMENDATION
title
Director of Housing and Homeless Services requests the following actions:
1. Adoption of a Resolution rescinding and replacing Resolution 2020-86 authorizing participation in the allocation of one-time housing funds for Whole Person Care Pilot programs as authorized by AB 74, Budget Act of 2019 to extend the time of reservation by one year.
2. Approval of a Budget Transfer increasing appropriations by $1,000,000 in Affordable Housing Projects (Fund 2080, Subdivision 2080010) offset by increase in revenue from a transfer from Deferred Revenue-Unearned for the financing of the Heritage House and Valle Verde Project Loan. (4/5 vote required)
body
EXECUTIVE SUMMARY
On June 23, 2020, the Board of Supervisors reserved $1 million in one-time Whole Person Care Funds for Housing for the Heritage House and Valle Verde projects. At that time, construction for the project was expected to commence in March 2021. Due to impacts from the pandemic, including cost increases requiring additional funding to be secured, project construction was delayed by 15-months. The project is now ready to proceed, requiring an extension for the reservation of funds as well as a related budget adjustment.
Today’s action will (1) approve the adoption of the resolution rescinding and replacing Resolution 2020-86 authorizing participation in the allocation of one-time housing funds for Whole Person Care Pilot programs by extending the time of reservation and, (2) amend the existing budget appropriation authority by $1,000,000 in Affordable Housing Projects (Fund 2080, Subdivision 2080010).
FISCAL & STRATEGIC PLAN IMPACT
|
Is there a Fiscal Impact? |
Yes |
|
Is it currently budgeted? |
No |
|
Is it Mandatory or Discretionary? |
Discretionary |
|
Discretionary Justification: |
Heritage House is a project that is qualified for One-Time Whole Person Care funds to provide housing for Med-Cal recipients. |
|
Is the general fund affected? |
No |
|
Consequences if not approved: |
If this item is not approved, Heritage House will not have the funding available to complete the project as planned. |
|
County Strategic Plan pillar addressed: |
Healthy, Safe, and Welcoming Place to Live, Work, and Visit |
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: The proposed action is not a project as defined by 14 California Code of Regulations 15378 (State CEQA Guidelines) and therefore CEQA is not applicable.
BACKGROUND AND DISCUSSION
Whole Person Care One-Time Funds
On November 14, 2019, Napa County received $1,491,766.53 in One-Time Housing Funds for Whole Person Care Pilot Programs as authorized by AB 74, Budget Act of 2019. The purpose of these funds is to provide flexible State-only funding to create housing opportunities to Medi-Cal beneficiaries who are homeless, at risk of homelessness or are an at-risk population. The Board of Supervisors approved allocating these funds to two projects:
1. The rehabilitation of five apartment units on Jefferson Street owned by Catholic Charities. The five units were vacant at the time, and the unit’s required rehabilitation for health, safety and accessibility requirements. The County worked with Catholic Charities to provide funding to bring the units online for the population Whole Person Care seeks to serve, in an amount not to exceed $491,766.53.
2. Long term loan of $1,000,000 to the Heritage House and Valley View projects to complete the financing of the project to cover the capital costs of constructing. Heritage House is the rehabilitation and conversion of the vacant Sunrise Living facility into 66 units of permanent supportive housing dedicated for homeless and very low-income individuals in the Napa community. The property is located adjacent to the Valle Verde project that is an affordable housing development of 24 units of multi-family apartments designated for low-income families. Residents will be referred to Heritage House through the County’s coordinated entry system and be case managed through Abode Services. To ensure the success of every resident at Heritage House, wrap-around services, including mental health, drug and alcohol recovery, and self-sufficiency services, will be provided on a regular basis. Valle Verde will offer affordable units to qualifying households meeting certain income levels and residents will be selected through application and lottery system
Any unused funds will rollover to other project proposals.
Heritage House & Valle Verde Project
Heritage House is the rehabilitation and conversion of the vacant Sunrise Living facility into 66 units of permanent supportive housing dedicated for homeless and very low-income individuals in the Napa community. The property is located adjacent to the Valle Verde project that is an affordable housing development of 24 units of multi-family apartments designated for low-income families. Residents will be referred to Heritage House through the County’s coordinated entry system and be case managed through Abode Services. To ensure the success of every resident at Heritage House, wrap-around services, including mental health, drug and alcohol recovery, and self-sufficiency services, will be provided on a regular basis. Valle Verde will offer affordable units to qualifying households meeting certain income levels and residents will be selected through application and lottery system.
The County of Napa has three sources of funding in the Heritage House & Valle Verde Project. The first two sources were authorized by resolutions on January 29, 2019, reassigned a predevelopment loan in the amount of $1,317,985 from the Gasser Foundation to Burbank Housing Development Corporation for the development of 66 affordable housing units at Heritage House, and authorizing an application to the No Place Like Home program to ensure that 32 units at Heritage House would be set aside for permanent supportive housing for clients exiting the homeless services system. Since the original Heritage House project was contemplated, Burbank Housing Development Corporation combined the Heritage House project with the adjacent Valle Verde project, in order to compete for certain 9% Low Income Housing Tax Credits allocated to Napa County projects as a result of the 2017 wildfire disaster. The combination resulted in a total of 88 units of Affordable Housing between the two projects. The third source of funding is $1,000,000 in One-Time Housing Funds for Whole Person Care Pilot Programs to complete the financing of the project to cover the capital costs of constructing Heritage House & Valle Verde.
Today’s item requests the Board of Supervisors approve the adoption of resolution rescinding and replacing Resolution 2020-86 authorizing participation in the allocation of one-time housing funds for Whole Person Care Pilot programs as authorized by AB 74, Budget Act of 2019 to extend the time of reservation by one year, and approve a budget transfer increasing appropriations by $1,000,000 in Affordable Housing Projects (Fund 2080, Subdivision 2080010) offset by increase in revenue from a transfer from Deferred Revenue-Unearned for the financing of the Heritage House and Valle Verde Project Loan.