HomeMy WebLinkAbout2025-02-24 HHAC POST AGENDA
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**POST-MEETING AGENDA**
Date:Monday, February 24, 2025
Time:3:30 p.m.
Location:City Hall, Bldg. A, Executive Conference Room #103
276 Fourth Avenue, Chula Vista, CA
Housing and Homelessness Advisory Commission Special Meeting
Public Comments: Public comments may be submitted to the Housing and Homelessness Advisory
Commission in the following ways:
In-person comments during the meeting. Join us for the Housing and Homelessness Advisory
Commission meeting at the time and location specified on this agenda to make your
comments. Each person will be allotted three (3) minutes to address the Commission.
•
Submit an eComment. Visit www.chulavistaca.gov/boardmeetings, locate this meeting, and
click the comment bubble icon. Click on the item you wish to comment on, then click "Leave
Comment."
•
Email comments. Submit comments via email to HHAC@chulavistaca.gov. •
The commenting period will close three (3) hours before the meeting. All comments will be made
available to the Commission and the public.
Accessibility: Individuals with disabilities are invited to request modifications or accommodations in
order to access and/or participate in a meeting contacting the Housing and Homelessness Advisory
Commission office of the City Attorney Department Staff at HHAC@chulavistaca.gov (California Relay
Service is available for the hearing impaired by dialing 711) at least forty-eight hours in advance of the
meeting.
Pages
1.CALL TO ORDER
2.ROLL CALL
Commissioners Carlseen, Contreras, Merino, Montoya-Cesena, Pacheco,
Paddock, Robinson Opeodu, Whitsell, and Chair Cabral.
3.CONSENT CALENDAR (Items 3.1 through 3.2)
The Commission will enact the Consent Calendar staff recommendations by one
motion, without discussion, unless a Commissioner, member of the public, or staff
requests that an item be removed for discussion. If you wish to speak on any item,
please fill out a "Request to Speak" form and submit it to the Secretary prior to the
meeting or submit an electronic comment per the instructions on page one of this
agenda.
Recommended Action:
Commission approve the recommended action on the below consent calendar
items.
3.1 Approval of Meeting Minutes 4
Recommended Action:
Approve the minutes dated August 20, 2024.
3.2 Consideration of Request for Excused Absences
Recommended Action:
Consider requests for excused absences as appropriate.
4.PUBLIC COMMENTS
Persons may address the Commission on any subject matter within the
Commission’s jurisdiction that is not listed as an item on the agenda. State law
generally prohibits the Commission from discussing or taking action on any issue
not included on the agenda, but, if appropriate, the Commission may schedule the
topic for future discussion or refer the matter to staff. If you wish to speak on any
item, please fill out a "Request to Speak" form and submit it to the Secretary prior
to the meeting or submit an electronic comment per the instructions on page one
of this agenda.
5.ACTION ITEMS
The Item(s) listed in this section of the agenda will be considered individually by the
Commission and are expected to elicit discussion and deliberation. If you wish to
speak on any item, please fill out a "Request to Speak" form and submit it to the
Secretary prior to the meeting or submit an electronic comment per the instructions
on page one of this agenda.
5.1 Housing Funds: HUD Block Grant Programs Funding Priorities for 2025-
2029 Consolidated Plan and 2025/26 Annual Action Plan
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City of Chula Vista Housing and Homelessness Advisory Commission
February 24, 2025 Post Agenda Page 2 of 38
5.2 Housing Successor Agency: Appropriation of Funds for Palomar Motel, and
Updates
18
Recommended Action:
Commission provide an advisory recommendation to the City Council on the
appropriation of Housing Successor Agency Low and Moderate Income
Housing Asset Funds for Fiscal year 2024-25, in the amount of $3.0 million
for the rehabilitation of the Palomar Motel.
5.3 Housing Successor Agency: Appropriation of Funds for E St Apartments 28
Recommended Action:
Commission provide an advisory recommendation to City Council on the
appropriation of Housing Successor Agency Low and Moderate Income
Housing Asset Funds for Fiscal Year 2024-25, in the amount of $4.0 million
for the development of affordable housing.
5.4 Consider Changing the Time of Regular Meetings 34
Recommended Action:
Approve resolution.
OTHER BUSINESS
6.STAFF COMMENTS
6.1 Chula Vista Village at Otay General Update 35
6.2 Affordable Housing Updates
7.CHAIR'S COMMENTS
8.COMMISSIONERS' COMMENTS
9.ADJOURNMENT
to the regular meeting of the Housing and Homelessness Advisory Commission on
April 23, 2025.
Materials provided to the Housing and Homelessness Advisory Commission related
to any open-session item on this agenda are available for public review by
contacting the Housing and Homeless Services Department at
HHAC@chulavistaca.gov.
Sign up at www.chulavistaca.gov/residents/enotification to receive email
notifications when agendas are published online.
City of Chula Vista Housing and Homelessness Advisory Commission
February 24, 2025 Post Agenda Page 3 of 38
1
SPECIAL MEETING OF THE HOUSING AND HOMELESSNESS ADVISORY
COMMISSION
Meeting Minutes
August 20, 2024, 6:00 p.m.
Council Chambers, 276 Fourth Avenue, Chula Vista, CA
Present: Anna Cabral, James Merino, Norman Paddock, Vikki Robinson
Opeodu, Paula Whitsell
Absent: Peter Carlseen
Also Present: Juliette Montoya-Cesena, Angelica Davis, Stacey Kurtz, Chris
Stanley, Brian Warwick, Carolina Gonzalez, Ernesto Pinedo,
Megan McClurg, Sam Alzubaidi, Brian Catacutan
_____________________________________________________________________
1. CALL TO ORDER
A special meeting of the Housing and Homelessness Advisory Commission of the
City of Chula Vista was called to order at 6:02 p.m. in Council Chambers at City
Hall (building #A), 276 Fourth Avenue, Chula Vista, California
2. ROLL CALL
Secretary Gonzalez called the roll.
3. CONSENT CALENDAR (Items 3.1)
Commission approved May 8, 2024, meeting minutes.
Moved by James Merino
Seconded by Paula Whitsell
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City of Chula Vista Housing and Homelessness Advisory Commission
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Result: Carried
3.1 Approval of Meeting Minutes
4. PUBLIC COMMENTS
Robert Johnson submitted written comments.
John Acosta spoke about homeless population and asked for resources the city
has to offer for them.
Salvador Vivero submitted written comment asking for help for the homeless
situation that West Chula Vista in facing.
5. ACTION ITEMS
Angelica Davis, Ernesto Pinedo and Meghan McClurg
5.1 Consider Restrictions for Campsites and Sitting, Lying, Sleeping, or
Storage on Specified Public Property
Homeless Solutions Manager Angelica Davis, Lieutenant Ernest Pineno
and Assistant City attorney Megan McClurg gave presentation; all
responded to questions from the commissioners.
The following members of the public spoke in oppositio n to the item:
Rosy Vazquez
Katie Leon
Sebastian Martinez
Michelle Francis
The following members of the public submitted a written comment in
opposition to the item:
Elizabeth Wilson Manahan
Melissa Peterman
Moved by James Merino
Seconded by Vikki Robinson Opeodu
Result: Carried
5.2 Draft Prohousing Designation Program Application Public Review
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City of Chula Vista Housing and Homelessness Advisory Commission
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Senior Planner Chris Stanley gave presentation.
OTHER BUSINESS
6. STAFF COMMENTS
Housing Manager Brian Warwick provided update on the 610 Paseo del Rey
project.
7. CHAIR'S COMMENTS
Chair Cabral thanked everyone for attending to the meeting and their concerns
about the city.
8. COMMISSIONERS' COMMENTS
Commissioners thanked city staff and community for working together to make
our community better.
9. ADJOURNMENT
The meeting was adjourned at 7:56 p.m.
Minutes prepared by: Secretary Carolina Gonzalez
_________________________
Carolina Gonzalez, Secretary
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City of Chula Vista Boards & Commissions
Housing and Homelessness Advisory Commission
February 24, 2025 Item No. 5.1
ITEM TITLE
Housing Funds: HUD Block Grant Programs Funding Priorities for 2025-2029 Consolidated Plan and
2025/26 Annual Action Plan
Location: No specific geographic location
Department: Housing and Homeless Services
G.C. § 84308 Regulations Apply: No
Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California
Environmental Quality Act State Guidelines. Therefore, pursuant to State Guidelines Section 15060(c)(3) no
environmental review is required. Notwithstanding the foregoing, the activity also qualifies for an Exemption
pursuant to Section 15061(b)(3) of the California Environmental Quality Act State Guidelines. Under the
National Environmental Policy Act (NEPA), the activity is exempt pursuant to Title 24, Part 58.34(a)(2)(3) of
the Code of Federal Regulations.
Recommended Action
Accept report, allow for public comment, and provide input .
SUMMARY
As a Department of Housing and Urban Development Entitlement Community, the City of Chula Vista receives
funds annually aimed to fund diverse programs and services to enhance the quality of life for Chula Vista’s
most vulnerable populations. As a recipient of these funds, the City is required to develop and submit a 5 -
Year Consolidated Plan for use of the funds describing the housing and community development needs of the
City’s low/moderate-income residents and outlin ing the strategies to address those needs. In addition, the
City must develop and submit an Annual Action Plan for each of the five year s of the Consolidated Plan.
This meeting will provide the commission and interested community members with an overview and an
opportunity to provide input on the goals and funding priorities that will be established through the 2025-
2029 Five-Year Consolidated Plan and the 2025-2026 annual Action Plan , expected to be adopted in spring
2025.
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ENVIRONMENTAL REVIEW
The Director of Development Services has reviewed the proposed activity for compliance with the California
Environmental Quality Act (CEQA) and has determined that the activity is not a “Project” as defined under
Section 15378 of the State CEQA Guidelines because it will not result in a physical change in the environment.
Therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA.
Notwithstanding the foregoing, it has also been determin ed that the activity qualifies for an Exemption
pursuant to Section 15061(b)(3) of the California Environmental Quality Act State Guidelines. Thus, no
environmental review is required. Under NEPA, the activity is exempt pursuant to Title 24, Part
58.34(a)(2)(3) of the Code of Federal Regulations.
DISCUSSION
Department of Housing and Urban Development (“HUD”) Entitlement jurisdictions receive Community
Development Block Grant (“CDBG”), HOME Investment Partnerships Act (“HOME”) Program, and Emergency
Solutions Grant (“ESG”) Program annual allocations via a formula -based system determined by statistical
and demographic data. The funds aim to address HUD’s performance measurement framework and were
each enacted with a distinct community need as further described below.
CDBG: The primary objective of the CDBG program is the development of viable urban communities
through decent housing, a suitable living environment , and expanding economic opportunities for
low/moderate-income persons. Activities funded under this program must address one of three National
Objectives:
1. Benefit to low/moderate-income persons through social services, housing or infrastructure
projects;
2. Aid in the prevention or elimination of slums and blight through residential or commercial
rehabilitation; or
3. To meet an urgent need such as a natural disaster or pandemic.
Historically, the City has utilized this flexible funding source to fund social services programs as well as
improve public facilities and construct new streets and sidewalks.
HOME: The purpose of the HOME program is to create and retain affordable housing. The type of
assistance allowable under this program includes owner-occupied housing rehabilitation, new
construction, and acquisition and rehabilitation, for both single -family and multifamily projects, as well
as predevelopment loans to developers.
In the past, the City has leveraged HOME funds by providing tenant-based rental assistance, gap financing
to first-time homebuyers, and providing fin ancing for developers investing in our community to create
new affordable housing units.
ESG: The program was created specifically to address homelessness as it provides grant funding to
engage and rapidly re -house homeless individuals and families as well as help operate and provide
essential services in emergency shelters. Funds may also be use d to prevent individuals and families from
becoming homeless through rapid re -housing programs.
Currently the City is utilizing ESG funds for operational costs for shelters designated for victims of
domestic violence, homeless prevention, and outreach services.
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As a recipient of these funds, the City is required to prepare a five-year Consolidated Plan (“Con Plan”)
describing the housing and community development needs of the City’s low/moderate -income residents and
outlining strategies to address those needs over a five -year period. The Con Plan provides the necessary
policy guidance for implementation of programs a nd services to be funded, as further detailed in the Annual
Action Plan submitted to HUD, as the formal funding application for the respective program year.
The City is in the process of developing its 2025 -2029 Con Plan as well as its 2025 -2026 Annual Action Plan.
Citizen Participation through Planning Process
Engaging residents and community members in defining and understanding the current housing and
community development needs while prioritizing resources to address these needs is a key component of
the development of the Con Plan . The City is required by HUD to gather input from its residents, including
minorities, non -English-speaking persons, low/moderate -income residents, persons with disabilities,
advocates for seniors, illiterate persons, and unhoused persons, whom the grant programs are designed to
serve. Public input received is used to establish the strategies and funding priorities previously described.
Citizen participation has been encouraged using the City’s new public engagement software, Community
Voices. A Community Voices webpage for the Con Plan was published in December 2024. This site detailed
all public meetings for Con Plan Development and hosted the community needs survey that is currently
available for members of the public to complete until February 28 .
City staff held a series of four public input meetings, one in each Council District, that allowed residents to
participate directly with staff and provide their input on funding priorities. Staff also announced
development of the Con Plan at meetings of the Chula Vista Community Collaborative and provided fliers and
links to the Community Voices webpage to community partner organizations and representatives of
traditionally difficult to reach populations. On February 4 th Staff presented to City Council an d held and
opening public hearing to fulfil HUD ConPlan requirements. This meeting is an additional avenue for the
community to engage in the prioritization of the grant funds .
The Con Plan also utilizes qualitative and quantitative data gathered through citizen participation, market
analysis, and the community needs survey to identify the highest priority needs in which to direct
entitlement dollars. Funding priorities determined through citizen participation will be incorporated in the
Con Plan through goals and outcomes that will be established and brought back to City Council for approval
before final submission to HUD. Table 1, on the following page provides a timeline for the steps in the Con
Plan development.
Funding Availability and Request for Applications (Program Year 202 5-26)
The development of the 2025 -2026 Annual Action Plan will be included with the Con Plan. A Notice of
Funding Availability (“NOFA”) for request of the grant funds will be released on February 3, 202 5 for eligible
agencies and City Departments and be open until March 3, 2025, as further detailed in Table 1 . While the City
has not received formal communication from HUD on the anticipated grant funds for the 202 5-26 program
year, staff will be assuming the same amount as in prior years. As a reference, the City has received a slight
decrease for each of the grants in the past f ive years.
Next Steps
Once all relevant Con Plan data has been gathered and subrecipient applications have been received and
reviewed for eligibility and funding consideration, staff will return to City Council to present the draft Con
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Plan goals and provide funding recommendations for the 202 5-26 program year, anticipated April 8, 2025 .
Table 1: 2025 Consolidated Plan and Annual Action Plan Timeline
DATE ACTION
December 2024 Con Plan Community Needs Survey Opens
January 16, 27, 29 & 30, 2025 Con Plan Community Meetings
February 3, 2025 Annual Action Plan Notice of Funding Availability Release
February 4, 2025 Con Plan & Annual Action Plan Council Public Hearing
February 2025 Housing & H omeless Advisory Commission Con Plan Meeting
February 25, 2025
Closes at the end of business day
Annual Action Plan Applicant Question and Answer Period
Submit to: mbarnard@chulavistaca.gov
February 28, 2025 Con Plan Community Needs Survey Closes
March 3, 2025
No later than 4:00 pm
Annual Action Plan Application Deadline
March 3 – March 17, 2025 Annual Action Plan Application Review Period
April 8, 2025
(anticipated)
City Council Public Hearing for Annual Action Plan Recommendations
City of Chula Vista; 276 Fourth Avenue; Council Chambers
April 1 - April 30, 2025 30-Day Public Review Period
Draft 2025-26 Annual Action Plan is made available to the public for
public review and comments
May 6, 2025
City Council Con Plan & Annual Action Plan Consideration
Final Con Plan & Action Plan are approved by Council
City of Chula Vista; 276 Fourth Avenue, Council Chambers
May 15, 2025 Final Con Plan & Annual Action Plan submission to HUD
July 1, 2025 Implementation of 2025-2026 Annual Action Plan
CURRENT-YEAR FISCAL IMPACT
There is no fiscal impact to the General Fund as a result of this action as all costs associated with the planning
and administration of the CDBG, HOME , and ESG programs are covered by the respective grants.
ONGOING FISCAL IMPACT
There is no ongoing fiscal impact to the City's General Fund as a result of this action.
ATTACHMENTS
None.
Staff Contact: Mark Barnard, Management Analyst II
Dania Gonzalez, Principal Management Analyst
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City of Chula Vista Housing and Homelessness Advisory Commission
February 24, 2025 Post Agenda
Empower individuals & families ●Build community resilience ●Promote housing opportunities ●Enhance quality of life
HOUSING &
HOMELESS SERVICES
Presented by:
Item 5.1
HUD Federal Block Grant
Funding Priorities
Mark Barnard, Management Analyst II
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City of Chula Vista Housing and Homelessness Advisory Commission
February 24, 2025 Post Agenda
HUD Planning
Requirements
2025-2029 Consolidated Plan (ConPlan)
2025-2026 Annual Action Plan
2026-2027 Annual Action Plan
2027-2028 Annual Action Plan
2028-2029 Annual Action Plan
2029-2030 Annual Action Plan
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City of Chula Vista Housing and Homelessness Advisory Commission
February 24, 2025 Post Agenda
HUD Grant Programs
Community Development Block Grant
(CDBG)
HOME Investment Partnership Program
(HOME)
Emergency Solutions Grant
(ESG)
•Must benefit low-income persons.
•Can fund “public services” such as food
banks, recreation programs, and senior
services but public services are limited
to 15%.
•Public facility improvements.
•Housing acquisition and rehabilitation.
•Some economic development activities
can be funded if they support job
creation or low-income business
owners.
•Focus on affordable housing.
•Development of low-income housing.
•Rental assistance.
•Home buying assistance.
•Homeless outreach.
•Shelter development.
•Shelter operation/services.
•Rapid re-housing.
•Homeless prevention.
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City of Chula Vista Housing and Homelessness Advisory Commission
February 24, 2025 Post Agenda
Anticipated Annual Funding Resources
GRANT Approximate Amount
Community Development Block Grant (CDBG)$2.4 Million
Emergency Solutions Grant (ESG)$200,000
HOME Investment Partnership Act (HOME)$850,000
TOTAL $3.5 Million
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City of Chula Vista Housing and Homelessness Advisory Commission
February 24, 2025 Post Agenda
Public Input Meetings
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City of Chula Vista Housing and Homelessness Advisory Commission
February 24, 2025 Post Agenda
Timeline
Public Input Meetings
January/February
2025
NOFA Release
February 3rd
Council Public
Hearing
February 4th
Application Deadline
March 3rd
Second Council Public
Hearing
April 8th
(anticipated)
30 Day Plan Public
Review
April 1st –30th
Final Council
Approval
May 6
(anticipated)
Final Submission to
HUD
May 15
Plan Implementation
July 1
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City of Chula Vista Housing and Homelessness Advisory Commission
February 24, 2025 Post Agenda
Empower individuals & families ●Build community resilience ●Promote housing opportunities ●Enhance quality of life
More Information
and Survey
Chula Vista Federal Block Grant Contacts:
Mark Barnard: mbarnard@chulavistaca.gov
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City of Chula Vista Boards & Commissions
Housing and Homeless ness Advisory Commission
February 24, 2025 Item No. 5.2
ITEM TITLE: Housing Successor Agency: Appropriation of Funds for Palomar Motel, and Updates
Location: 1160 Walnut Avenue
Recommended Action: Commission provide an advisory recommendation to City Council on the
appropriation of Housing Successor Agency Low and Moderate Income Housing Asset Funds for Fiscal Year
2024-25, in the amount of $3 .0 million for the rehabilitation of the Palomar Motel.
SUMMARY
The City of Chula Vista (City) acquired the Palomar Motel, located at 1160 Walnut Avenue, in 2023 with the
intent to rehabilitate the motel structure and convert it into a development providing Permanent Supportive
Housing (PSH) for formerly homeless house holds (the “Project”).
Staff now proposes to appropriate $3.0 million in Low and Moderate Income Asset Housing Fund (Housing
Fund) funds for the Project, administered by the Housing Authority in its capacity as the Housing Successor
Agency.
Several other actions to prepare for the Project’s rehabilitation will also be brought to Council, but do not
require an advisory recommendation from the Housing & Homelessness Advisory Commission. These
include: (1) reallocating $5.0 million previously budgeted in the Capital Improvement Projects (CIP) fund for
the Project to other purposes ; (2) authorizing the City to enter into a Leasehold Disposition and Development
Agreement and ground lease with the Project’s developer, Wakeland Housing and Developmen t Corporation,
or an affiliate (Wakeland); (3) transferring ownership of the motel structure (but not the land) to Wakelan d;
and (4) seeking authorization to re -apply with Wakeland for the current Homekey+ Program administered
by the California Department of Housing and Community Development (HCD). These are all necessary
transactions to secure the Homekey+ funds and facilitate the rehabilitation and long -term operation of the
Project.
ENVIRONMENTAL REVIEW
The Project is categorically exempt from the California Environmental Quality Act pursuant to Section 15301
(Existing Facilities), Section 15326 (Acquisition of Housing for Housing Assistance Programs), and Section
15601(b)(3).
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DISCUSSION
Motel Acquisition and Rehabilitation
The City acquired the Palomar Motel on October 6, 2023, for $6.2 million, authorized by Resolution No. 2023-
108, adopted on July 25, 2023. The Project si te consists of two parcels totaling 1.17 acres, containing the
motel structure and unimproved land , a portion of which is currently being leased to a towing company. It is
the City’s intent to retain the current lease on the second parcel until a later date.
The City intends to rehabilitate the motel structure and convert it into Permanent Supportive Housing (PSH )
for formerly homeless households. It is anticipated that 2 7 units of PSH will be provided at the site, with
additional space set aside for supportive services and an onsite manager’s unit. The units will be retrofitted
with kitchenettes and other upgrades to better accommodate long-term residency.
Kitchell Corporation was commissioned to provide a Feasibility Study Draft Report to identify the scope of
needed repairs and determine a cost estimate. The full cost of carrying out all repairs and improvements was
estimated at just over $8.1 million. The rehabilitation scope include s accessibility upgrades to comply with
the Americans with Disabilities Act (ADA); stairway replacement; new fire sprinklers and other life safety
improvements, and major upgrades to the plumbing, electrical, HVAC, and other sy stems. Wakeland is
currently conducting a more detailed analysis of the Project with an architect, environmental consultant, and
engineer to refine the cost estimate.
Once completed, all units at the Project would be restricted to Very Low or Extremely Low Income residents,
with the exception of one manager’s unit. Rents would be restricted as affordable to individuals earning up
to 30% or up to 50% of the Area Median Income, as determined annually by HCD. the Project would have an
onsite property manager and 1.5 Full Time Equivalent (FTE) services staff to provide case management and
other wraparound services at the Property.
Housing Fund Loan
The funding scenario for the Project has evolved over time. Resolution No. 2023 -108, adopted on July 25,
2023, dedicated up to $13.0 million in total funding towards the acquisition and rehabilitation of the Project
from the American Rescue Plan Act (ARPA ) fund. Of these ARPA funds, nearly $5.28M was used to acquire
the Project along with $919,612 in federal Community Development Block Grant (CDBG) funds , with the
balance held for holding costs of the land and rehabilitation. The remaining ARPA funds were later replaced
with City Capital Improvement Program (CIP) funds by Resolution No. 2024-133 and reduced by Resolution
No. 2024-263. The City and Housing Authority, in its capacity as Housing Successor Entity, now propose to
replace $5.0 million in remaining CIP funds with $3.0 million in Low and Moderate Income Housing Asset
Fund (Housing Fund) funds .
The Housing Authority, acting in its capacity as Successor Housing Entity to the Redevelopment Agency of
the City of Chula Vista, oversees the Housing Fund. Under state law, Housing Successor Entities may not
accumulate an excess balance of funds indefinitely, as defined by a formula looking back ten years (the Excess
Surplus). The Housing Fund currently has an Excess Surplus of $7,092,093 which must be committed on or
before June 30, 2025. The Housing Fund is also subject to state requirements with respect to maximum
income thresholds and age requirements (i.e., only a portion of assisted units may be set aside for seniors.)
The Project satisfies all of the eligibility criteria for Housing Fund expenditures.
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The funds would be committed through a loan to Wakeland to carry out the rehabilitation work. The loan
would be a “residual receipts” loan, meaning that repayments would be made annually only to the extent that
operating revenues exceed expenses. Any remaining outstanding balance would be due in full at the end of
the term, expected to be 55 years. (This is a typical loan structure for affordable housing developments.) This
loan will make the Project more competitive for additional funding from the Homekey+ Program and other
funding programs and would help satisfy the Excess Surplus requirements for the Housing Fund imposed by
the state. Most of the remaining balance of Excess Surplus funds will be committed through a separate action
on this agenda.
Other Actions
Staff will also seek Council approval for other actions to reallocate the CIP funds previously budgeted for the
project, formalize its relationship with Wakeland as the developer and operator, transfer ownership of the
motel structure to Wakeland, and apply to HCD’s Homekey+ Program to complete the Project’s financing.
These actions are described in more detail below.
Reallocating CIP Funds
After acquisition of the Project, holding costs to date, and Council action through Resolution No. 2024 -263,
the remaining balance in the CIP (GGV0270 - Palomar Motel Acquisition Convert ) is $5,284,245. Staff will
seek Council approval to transfer $5.0 million to the Housing Authority fund to be held for operations of the
City’s emergency bridge shelter, Chula Vista Village at Otay (the “Village”). The remaining balance of
$284,245 will provide ongoing security and associated holding costs of the second par cel and Project until
fully developed.
Leasehold Disposition and Development Agreement, Conveyance, and Ground Lease
On February 20, 2024 , via Resolution No. 2024-031, Wakeland was selected through a competitive process
to serve as the developer and long -term operator of the project. Wakeland would oversee the ongoing
management and operations of the Project in coordination with a contracted property management firm.
Wakeland has a strong track record in providing PSH, as demonstrated by its 96% housing retention rate
and 96% service participation rate for its supportive housing residents . At this time, staff proposed to enter
into a Leasehold Disposition and Developer Agreement (LDDA) with Wakeland. This agreement would
provide a general framework for the transactions to be executed with Wakeland with respect to the Project.
A binding agreement with the Project co-applicant is a necessary precondition for securing Homekey+ funds
as well as project-based vouchers (PBVs), Veterans Affairs Supportive Housing (VASH) vouchers, and other
funding. The LDDA would be in effect for a maximum duration of three years, subject to two e ighteen-month
extensions in the City’s sole discretion.
Once the Project has secured all necessary financing and building permits, and is prepared to begin the
rehabilitation work, the City would transfer ownership of the improvements (i.e., the motel structure) to
Wakeland and enter into a long -term ground lease. The transfer and ground lease would both be for a
nominal sum of $1 for the acquisition price and $1 per year in annual rent. As the developer, Wakeland has
business, legal, and tax reasons for desiring to own the structure it is completing work on. If the City were to
retain ownership of the improvements, it may also trigger costly additional building upgrades as a publicly
owned facility. The City will continue to retain ownership of the land itself. The lease term will be at least 65
years, as required by HCD’s regulations for Homekey+ and other programs. In a highly unlikely worst -case
scenario of a default by Wakeland, the City would be able to regain possession of the improvements and
would be free to manage it directly or facilitate a transfer to a new operator.
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Homekey+ Program
Homekey was launched by HCD in the wake of the COVID -19 pandemic to convert motels and other housing
types to permanent or interim housing for homeless persons. Homekey projects are implemented with PSH
principles, which is a best -practice intervention for addressing homelessness that combines permanent,
subsidized housing with voluntary, wraparound supportive services such as mental health and substance
abuse treatment.
The City applied for funding in the third Homekey round on behalf of the Project, pursuant to Resolution No.
2023-109, but did not yet have ownership of the site and was not competitive enough to secure a funding
award. Since then, the City has taken signi ficant steps to prepare for the rehabilitation and increase its
likelihood of success in future funding rounds, including acquiring the Property, commissioning a physical
needs analysis, and selecting a developer co-applicant. The City passed Resolution No. 2024-031 on February
20, 2024 authorizing application to an anticipated Round 4 of the Homekey Program. HCD did not ultimately
release a Homekey Round 4, so the City was unable to apply as authorized.
On December 20, 2024, Wakeland applied for an allocation of Project -Based Vouchers (PBVs) and Veterans
Affairs Supportive Housing (VASH) vouchers from the County of San Diego. In addition to making the Project
more competitive for Homekey funds, these vouchers would be a critical source of long -term operating
revenue, ensuring that the Project can continue to provide housing and services without ongoing City
funding. Finally, in January 2025, HCD opened the application window for the Homekey+ Program, an
updated version of Homekey. The revised program includes an updated template resolution to be adopted
by local jurisdiction co-applicants. Staff will bring a resolution before Council that closely mirrors the
template resolution provided by HCD.
If successful, the Homekey+ Program would provide up to $10 million in critical funding for the rehabilitation
and operation of the project. (Wakeland and City staff expect to apply for roughly $8.4 million in funds but
are including a cushion in the instance that our financial analysis changes.)
DECISION -MAKER CONFLICT
Staff has reviewed the property holdings of the Housing and Homelessness Advisory Commission members
and has found no property holdings within 1,000 feet of the boundaries of the property which is the subject
of this action. Consequently, this item does not present a disqualifying real property -related financial conflict
of interest under Califor nia Code of Regulations Title 2, section 18702.2(a)(7) or (8), for purposes of the
Political Reform Act (Cal. Gov’t Code §87100, et seq.).
Staff is not independently aware and has not been informed by any Housing and Homelessness Advisory
Commission member, of any other fact that may constitute a basis for a decision -maker conflict of interest in
this matter.
Staff Contact: Brian Warwick, Housing Manager
Page 21 of 38
City of Chula Vista Housing and Homelessness Advisory Commission
February 24, 2025 Post Agenda
Empower individuals & families ●Build community resilience ●Promote housing opportunities ●Enhance quality of life
HOUSING &
HOMELESS SERVICES
Item 5.2
Palomar Motel Funding
Page 22 of 38
City of Chula Vista Housing and Homelessness Advisory Commission
February 24, 2025 Post Agenda
HOUSING &
HOMELESS
SERVICES Housing Successor Agency
•Administered by Housing Authority in its
capacity as Successor Agency
•Recycled loan funds
•Excess Surplus Funds expenditure
requirements
•Approximately $7M Excess Surplus balance
Low and Moderate Income Housing Asset Fund
Page 23 of 38
City of Chula Vista Housing and Homelessness Advisory Commission
February 24, 2025 Post Agenda
HOUSING &
HOMELESS
SERVICES
Palomar Motel
•Acquired October 2023
•Intended for Permanent Supportive
Housing (PSH)
•27 PSH units + 1 Manager’s Unit
•Substantial rehabilitation needed
Page 24 of 38
City of Chula Vista Housing and Homelessness Advisory Commission
February 24, 2025 Post Agenda
HOUSING &
HOMELESS
SERVICES Funding Scenario
Source Amount
Successor Agency funds $3.0M
Homekey+ funds $8.4M -$10.0M
Project Based Vouchers 20 units
Veteran’s Vouchers (VASH)7 units
Page 25 of 38
City of Chula Vista Housing and Homelessness Advisory Commission
February 24, 2025 Post Agenda
HOUSING &
HOMELESS
SERVICES Project Updates
•Reallocate $5.0M in Capital Improvement
Program (CIP) funds to emergency shelter
•Homekey+ application
•Leasehold Disposition & Development
Agreement (LDDA), ground lease, and transfer
of improvements
Page 26 of 38
City of Chula Vista Housing and Homelessness Advisory Commission
February 24, 2025 Post Agenda
HOUSING &
HOMELESS
SERVICES
Recommendation and Next Steps
•Recommend that Council approve $3.0M loan to Wakeland Housing and Development
Corporation (or an affiliate)
•Council consideration March 4, 2025
•Loan closing by June 30, 2025
•Loan to be repaid over 55 years from income from operations Page 27 of 38
City of Chula Vista Housing and Homelessness Advisory Commission
February 24, 2025 Post Agenda
Empower individuals & families ●Build community resilience ●Promote housing opportunities ●Enhance quality of life
HOUSING &
HOMELESS SERVICES
Item 5.3
Successor Agency Funding
Page 28 of 38
City of Chula Vista Housing and Homelessness Advisory Commission
February 24, 2025 Post Agenda
HOUSING &
HOMELESS
SERVICES Housing Successor Agency
•Administered by Housing Authority in its
capacity as Successor Agency
•Recycled loan funds
•Excess Surplus Funds expenditure
requirements
•Approximately $7M Excess Surplus balance
Low and Moderate Income Housing Asset Fund
Page 29 of 38
City of Chula Vista Housing and Homelessness Advisory Commission
February 24, 2025 Post Agenda
HOUSING &
HOMELESS
SERVICES Notice of Funding Availability (NOFA)
•Released November 2024, due 12/20/2024
•$4.0M Successor Agency funds + potential $1M LHTF funds
•Threshold Criteria
•Competitive Scoring
•Location
•Readiness
•Developer Experience
•Cost-Effectiveness, Affordability, Overall Quality
Page 30 of 38
City of Chula Vista Housing and Homelessness Advisory Commission
February 24, 2025 Post Agenda
HOUSING &
HOMELESS
SERVICES NOFA Submittals
Park Hill UMC
545 East Naples
Wakeland Housing &
Development Corp.
E St Apts
201 Third Ave
Community HousingWorks
Terraces on Third
647 Third Ave
SBCS & Kevin M.
O’Neill Construction
Page 31 of 38
City of Chula Vista Housing and Homelessness Advisory Commission
February 24, 2025 Post Agenda
HOUSING &
HOMELESS
SERVICES E St Apts
•Threshold Criteria -Satisfied
•Competitive Scoring
•Location –Appropriate for project type
•Readiness –Moving forward quickly
•Developer Experience –Highly Qualified
•Most thorough and detailed overall proposal
Page 32 of 38
City of Chula Vista Housing and Homelessness Advisory Commission
February 24, 2025 Post Agenda
HOUSING &
HOMELESS
SERVICES Recommendation and Next Steps
Recommend that Council approve $4.0M loan to Community
HousingWorks (or an affiliate)
•Council consideration March 18, 2025
•Loan closing by June 30, 2025
•Loan to be repaid over 55 years from income from operations
Page 33 of 38
City of Chula Vista Housing and Homelessness Advisory Commission
February 24, 2025 Post Agenda
RESOLUTION NO. 2025-01
RESOLUTION OF THE HOUSING AND HOMELESSNESS
ADVISORY COMMISSION OF THE CITY OF CHULA VISTA
CHANGING THE TIME OF REGULAR MEETINGS
WHEREAS, Resolution No. 2003-07 establishes the time as 3:30 p.m. for the Housing and
Homelessness Advisory Commission to hold its regular meetings; and
WHEREAS, Municipal Code Section 2.25.200 provides for a change in meeting time upon
adoption by the board/commission of a written resolution, which adoption shall be recorded in the
minutes of the board/commission and a copy of which resolution shall be forwarded to the City
Council; and
WHEREAS, the Housing and Homelessness Advisory Commission wishes to change its
meeting time to 4:30 p.m. to facilitate member attendance.
NOW, THEREFORE, BE IT RESOLVED that the Housing and Homelessness Advisory
Commission of the City of Chula Vista, pursuant to Municipal Code § 2.25.200, does hereby
change the time of its regular meetings to the fourth Wednesday of January, April, July and
October at 4:30 p.m.
Approved as to form by
Marco A. Verdugo, City Attorney
Page 34 of 38
City of Chula Vista Housing and Homelessness Advisory Commission
February 24, 2025 Post Agenda
•65 Units
•Bathrooms/Showers
•Laundry Facilities
•Multipurpose Rooms
•24-Hour Security
•Wrap-Around Services
Chula Vista Village at Otay: Phase I (May 2023)
Page 35 of 38
City of Chula Vista Housing and Homelessness Advisory Commission
February 24, 2025 Post Agenda
Chula Vista Village at Otay: Where we are Today
•Expanding housing options
•72 individuals have gone through the shelter program
•22 successful exits to permanent housing
Page 36 of 38
City of Chula Vista Housing and Homelessness Advisory Commission
February 24, 2025 Post Agenda
Prioritized Improvements
•Solar
•Pallet
•Community Room
•2 Stall Accessible Bathroom
Unit (2)
•Pallet Upgrades
•A/C and Heater
•Gate Motor
•Door and Lock
Replacement
Chula Vista Village at Otay: Phase II
Page 37 of 38
City of Chula Vista Housing and Homelessness Advisory Commission
February 24, 2025 Post Agenda
Empower individuals & families ●Build community resilience ●Promote housing opportunities ●Enhance quality of life
Questions?
Email for Shelter Inquiries at
homelessness@chulavistaca.gov
or Scan the QR Code
Page 38 of 38
City of Chula Vista Housing and Homelessness Advisory Commission
February 24, 2025 Post Agenda