DATE: November 28, 2023
TO: Board of Supervisors
SUBMITTED BY: Sanja Bugay, Director, Department of Social Services
SUBJECT: Assignment and Assumption Agreement to the Homekey Standard Agreement with the California Department of Housing and Community Development
RECOMMENDED ACTION(S):
TITLE
Approve and authorize the Chairman to execute the acknowledgement of the Assignment and Assumption Agreement that is required to reassign the Homekey Standard Agreement from RH Community Builders, LP to Crossroads Village Fresno, LP.
REPORT
Approval of the recommended action will authorize the Chairman to execute the acknowledgement of the Assignment and Assumption Agreement to transfer the obligations of the Homekey Standard Agreement from RH Community Builders, LP (RHCB) to Crossroads Village Fresno, LP (Crossroads). The Homekey Standard Agreement was originally signed by RHCB, UP Holdings, LLC (UP Holdings), and the County. Subsequently, a new Limited Partnership was developed under Crossroads and additional State funds were received to complete renovations to the project under the new name. The State has requested that signatories be consistent across all funding agreements related to Homekey: Crossroads, UP Holdings, and the County. Execution of the recommended action is required to modify the Homekey Standard Agreement with California Department of Housing and Community Development (HCD) to align the Homekey Standard Agreement and other State funding related to the project. Although this item pertains to a location in District 2, the item is countywide.
ALTERNATIVE ACTION(S):
Should your Board elect not to approve the recommended action, the County and its partners will be unable to assign the Homekey Standard Agreement to Crossroads and will be out of compliance with the State of California’s request.
FISCAL IMPACT:
There is no increase in Net County Cost associated with the recommended action. While all documents are necessary to remain in compliance with Homekey, there will be no monetary exchange between the County and Crossroads.
DISCUSSION:
On July 16, 2020, HCD issued a Notice of Funding Availability for $600 million in Homekey grant funding, to local public entities including cities, counties, and other local public entities within California to purchase and rehabilitate housing, including hotels, motels, vacant apartment buildings and convert them into interim or permanent long-term housing for those experiencing homelessness or at risk of homelessness.
On August 18, 2020, your Board adopted Resolution No. 20-269 authorizing the joint application for the Homekey grant funding, between the County, RHCB and UP Holdings, LLC where $14,818,701 was subsequently awarded. HCD then requested that the resolution be revised and executed by the Vice-Chair to avoid self-certification by the Chairman.
On October 6, 2020, the revised resolution (No. 20-317) was executed along with the Standard Agreement with HCD for participation in Homekey. HCD has now requested that the original signatories assign the Homekey Standard Agreement to the Homekey project’s new partner, Crossroads.
The recommended action will not change the original Standard Agreement and aims to replace RHCB with Crossroads.
REFERENCE MATERIAL:
BAI #7.1, October 6, 2020
BAI #46, August 18, 2020
ATTACHMENTS INCLUDED AND/OR ON FILE:
Attachment A - Assignment and Assumption Agreement
CAO ANALYST:
Amina Flores Becker