To: Honorable Mayor and Members of City Council
From: Steve Potter, City Manager
Prepared By: Molly Rattigan, Deputy City Manager
TITLE:
Title
Grant Agreement with Heritage House Partners for Permanent Supportive Housing
LABEL
RECOMMENDED ACTION:
Recommendation
Authorize the City Manager to execute a grant agreement with Heritage House Partners LP for American Rescue Plan Act funding in an amount not to exceed $745,466 to offset increased costs of constructing the Heritage House and Valle Verde project at 3700 Valle Verde Drive, which will provide 44 units of Permanent Supportive Housing, and determine that the actions authorized by this item were adequately analyzed by a previous CEQA action.
Body
DISCUSSION:
On March 11, 2021, President Biden signed the American Rescue Plan Act of 2021 (ARPA) into law. The $1.9 trillion Fiscal Recovery Funds package was intended to combat the COVID-19 pandemic, including public health and economic impacts. Under ARPA, the City of Napa received a total of $15.12 million.
The City Council has adopted an expenditure plan for the ARPA Funds. As part of this expenditure plan, $1,500,000 in funds were set aside for permanent supportive housing and tenancy care needs. Tenancy Care is case management that is provided as a client exits homelessness into transitional housing or permanent supportive housing.
The City of Napa previously contributed local funding to Heritage House Partners for construction of the Heritage House and Valle Verde apartment complexes. Between the two complexes, the project, which is nearly complete, will provide 88 units of affordable housing and two manager units for very low- and low-income households, including at least 44 units for clients exiting homelessness into permanent supportive housing.
Like many development projects, Heritage House and Valle Verde was subject to cost increases due to increases in building materials, supply chain issues, and pivoting the construction plan to allow for a phased move-ins to provide immediate homes for clients experiencing homelessness. These grant funds offset the increased costs incurred by the developer to allow for client move-ins to begin in April 2024, rather than September 2024 (or later), and without utilizing operating reserve dollars that would jeopardize the provision of future services.
FINANCIAL IMPACTS:
There is no impact to the General Fund. Funds are coming from the American Rescue Plan Act previously allocated for this purpose by the City Council.
CEQA:
Staff recommends that the City Council determine that the potential environmental effects of the recommended action described in this staff report were adequately analyzed by the Environmental Impact Report for the Heritage House Valle Verde Project (File No. PL17-0114) that was certified by the City Council on February 4, 2020, pursuant to CEQA Guidelines Section 15162 and that no further environmental review is required.
DOCUMENTS ATTACHED:
ATCH 1-Agreement
NOTIFICATION:
None