01-11-2022 CC RPT 18 - Laserfiche WebLink

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11049 Bogart Project - Homekey Application • Page 2 a small office building on Housing Authority -owned property located at 11049 Bogart Avenue in the La Sierra Neighborhood; a project that would provide housing for chronically homeless individuals coupled with case management. Staff reviewed and rated the NPHS application and found the proposal to be strong enough to proceed in development. During the predevelopment phase, NPHS revised the proposed project concept to 22 units with a large central "village feel" common green space suitable for urban farming plots (Project). NPHS subsequently formed Sunrise at Bogart LP to develop the project. On December 15, 2020 the City Council approved Resolution No. 23660 which supported the Project with a commitment of $500,000 in funding from the HOME Investment Partnership Program (HOME). The Housing Authority approved a write-down of the vacant land at 11049 Bogart Street to $1 and has since executed a Disposition and Development Agreement for the disposition of the 11049 Bogart Street. On September 9, 2021 the State of California Department of Housing and Community Development (HCD) announced the availability of approximately $1.45 billion in Homekey funding 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. Homekey is 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 or interim housing for the target population. Up until January 31, 2022, the City is eligible to apply on a first -come -first served basis for Homekey funding in a geographic set-aside that includes Imperial, Orange, San Bernardino, Ventura, and Riverside Counties. DISCUSSION: HCD mandates that local government agencies or county agencies can apply for the Homekey grant funds. Therefore, staff is requesting authorization to submit a Homekey grant application in the amount of $2,200,000 on behalf of the Sunrise at Bogart LP for the development of the Project. The Project mission is to provide access to stable and affordable housing, provide case management to residents to achieve housing stability and self-sufficiency; and to assist residents with graduating into permanent housing. All residential units in the Project will be made available to households earning at -or -below 50% of the Area Median Income ($27,650 for one person in 2021). The proposed sources and uses are as follows, although it expected that these estimates and sources of funds may change as the Project continues through the development cycle. Development Costs Uses of Funds Cost: Land Acquisition $ 27,000 Construction (w/contingency) $ 5,726,360 Soft Costs $ 1,435,241 Developer Fee $ 601,000 Total Development Costs $ 7,789,601