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City of San Leandro City Council Meeting Date: June 5, 2023 Agenda Number: 10.c. Agenda Section: CONSENT CALENDAR File Number: 23-149 File Type: Staff Report Adopt a Resolution to Authorize Joint Application to and Participation in the Homekey Program Round 3 (for an interim shelter/navigation center and conversion to permanent supportive housing) and Approving a $7.1 Million Operating/Supportive Services Subsidy Guaranty from General Fund Monies over Five Years COUNCIL PRIORITY ·Housing and Homelessness ·Race and Equity Initiatives SUMMARY The City, and its nonprofit partners, applied in May 2022 for State Homekey Round 2 (2.0) for a proposed interim shelter/navigation center and longer-term conversion into permanent supportive housing. The State did not approve the City’s Homekey 2.0 application; the City began preparing to apply for Homekey Round 3 (3.0). The City changed several of its nonprofit partners for Homekey 3.0 to strengthen its application. The City will jointly apply with a regional nonprofit developer, Housing Consortium of the East Bay, Inc., (HCEB), which will serve as developer and property manager of the proposed interim shelter/nav center. The local homeless and domestic violence services nonprofit, Cornerstone Community Development Corporation (aka Building Futures or BF) will once again be the on-site services provider. The State released the Homekey 3.0 Notice of Funding Availability (NOFA) on March 29, 2023. The Homekey application form was released on April 24, 2023. The application deadline is July 28, 2023, or until funds are exhausted, whichever occurs first. Upon Council approval of this resolution, staff and its nonprofit partners will submit the Homekey 3.0 application by or before June 9 because this round will be highly competitive, and there is less total funding than in Homekey 2.0. RECOMMENDATIONS Staff recommends City Council approve the Resolution 1) authorizing joint application to and participation in the State Project Homekey Program for acquisition and rehabilitation of the Nimitz Motel at 555 Lewelling Blvd for a proposed short-term navigation center/shelter and later conversion to permanent supportive housing for the unhoused and 2) approving a $7.1 million operating/supportive services subsidy guaranty from General Fund monies over five years (or approximately $1,420,000.00 annually) to ensure the interim nav center/shelter can adequately operate for the first five years of operation. Previously, City Council approved a $5.6 million operating/services subsidy guaranty over the first 5 years for the City’s Homekey Round 2 application. Page 1 City of San Leandro Printed on 5/31/2023