DATE: March 5, 2024
TO: Board of Supervisors
SUBMITTED BY: Sanja Bugay, Director, Department of Social Services
SUBJECT: Termination of MOU with UP Holdings, LLC., UPA, LLC., and RH Community Builders LP
RECOMMENDED ACTION(S):
TITLE
1. Approve Termination of MOU No. 20-407 with UP Holdings California, LLC; UPA, LLC; and RH Community Builders LP for Non-Allocation of Funds effective April 4, 2024;
2. Approve and authorize the Director of the Department of Social Services to give 30 days written notice terminating MOU No. 20-407 to UP Holdings California, LLC; UPA, LLC; and RH Community Builders LP pursuant to the Non-Allocation of Funds provision within the agreement, effective April 4, 2024.
REPORT
Approval of the recommended actions will terminate MOU No. 20-407 (MOU) which defined the roles and responsibilities of each party with respect to Crossroads and the award of Homekey funds by UP Holdings California, LLC (UP Holdings); UPA, LLC (UPA); and RH Community Builders LP (RHCB) prior to contract expiration on October 6, 2025, as all funds for this MOU have been exhausted. Although this item pertains to a location in District 2, the item is countywide.
ALTERNATIVE ACTION(S):
Should your Board not approve the recommended actions, UP Holdings, UPA, and RHCB will continue in partnership pursuant to the terms stated in the existing MOU, remaining bound by this agreement for work that has already been completed and whose funds have been exhausted.
FISCAL IMPACT:
There is no Net County Cost associated with the recommended actions to end this agreement, as funds have already been allocated and expended.
DISCUSSION:
On October 6, 2020, your Board approved agreement 20-407 with UP Holdings, UPA, and RHCB for the rehabilitation and use of the Crossroads Village site with an effective date of October 6, 2020, expiring on October 6, 2025.
UP Holdings, UPA, and RHCB have satisfied obligations as set forth in MOU to acquire and rehabilitate the property at Blackstone and Dakota and make available for permanent housing for persons experiencing or at risk of homelessness.
Funds allocated from California Department of Housing and Community Development (HCD) have provided financing for efforts to restore property to habitability and allowed for property’s use as temporary shelter in the time since this agreement began, starting under Project Homekey. This project has since received additional funding from the California Housing Accelerator Fund to enable the renovation of units to become permanent affordable housing. Renovations are expected to be completed on 143 units in phases, with the first units completed by the end of 2024 and with the leasing process to begin shortly thereafter.
As of November 7, 2023, the County has reassigned the Homekey Standard Agreement from RHCB to Crossroads Village Fresno, LP. This entity supersedes the previous partnership from this MOU.
Approval of the recommended actions will approve and authorize the Department to sign and submit a letter of termination to take place on April 4, 2024, and to terminate the agreement on that date for non-allocation of funds.
REFERENCE MATERIAL:
BAI #76, November 23, 2023
BAI #7.1, October 6, 2020
BAI #46, August 18, 2020
ATTACHMENTS INCLUDED AND/OR ON FILE:
On file with Clerk - Non-Allocation of Funds Termination Notice from UP Holdings, California, LLC
On file with Clerk - Termination Letter to UP Holdings, California LLC
On file with Clerk - Termination Letter to RH Community Builders
CAO ANALYST:
Amina Flores Becker