REPORT TO THE CITY COUNCIL FROM: JENNIFER CLARK, Director Planning and Development Department PHIL SKEI, Assistant Director Planning and Development Department BY: JILLIAN GAYTAN, Senior Management Analyst Homeless Services Division SUBJECT ..Title ***RESOLUTION - Adopting the 16th Amendment to the Annual Appropriation Resolution (AAR) No. 2022-154 appropriating $59,946,400 for Homekey Program related activities (Requires 5 Affirmative Votes) (Subject to Mayor's Veto) ..Body RECOMMENDATION Staff recommends the City Council adopt the 16th amendment of the Annual Appropriation Resolution No. 2022 - 154 appropriating $59,946,400 for Homekey Program related activities. EXECUTIVE SUMMARY Approval of AAR will appropriate $59,946,400 for Homekey Program related activities to reimburse costs associated with acquisition of properties, rehabilitation, relocation, and operations. BACKGROUND HCD announced the availability of approximately $1.45 billion through a Homekey Notice of Funding Availability (NOFA), Round 2. In December 2021, City Council approved Resolution 2021-315 authorizing the joint application with UPholdings California, LLC., Resolutions 2021-316 and 2021-317 authorizing application and participation in the Homekey Program to sustain and rapidly expand housing for persons 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. In January 2022, the City submitted four Homekey applications as an individual applicant and one joint application as the applicant lead, applying for funds to reimburse costs associated with acquisition of properties, rehabilitation, relocation, and operations. The City was awarded funding for all five projects totaling $71,296,449 in Homekey funding. * Villa Motel $10,754,500 * Valley Inn $17,672,672 * Parkway $13,414,500 * Ambassador $12,737,700 * The Park $16,717,077 ($5,366,577) Staff's recommendation will be presented to the City Council Homelessness Subcommittee on December 12, 2022. Of the total The Park project allocation, $690,000 will be distributed by the State when all deadlines are met and these funds will be used for additional rehabilitation, and $10,660,500 was allocated for acquisition and was wired directly from the State into an escrow account to purchase the property. To date, the City has received two checks from the State, 1.) for Villa Motel in the amount of $10,754,500 and 2.) for The Park in the amount of $5,366,577. Staff is in the process of processing the remaining requests for reimbursement to the state for Valley Inn, Parkway, and Ambassador. ENVIRONMENTAL FINDINGS This item is not a project as defined by the California Environmental Quality Act. LOCAL PREFERENCE Local preference was not implemented because of state funding. FISCAL IMPACT The agreements will be funded through the City's Homekey allocations. Attachment: 16th Amendment to the Annual Appropriation Resolution NO 2022-154