TITLE
Recommendation to authorize City Manager, or designee, to execute any and all documents necessary, including an Agreement for Acquisition of Real Property and Escrow Instructions (Agreement), with Jasman Hospitality, Incorporated, a California corporation (Seller), for the purchase of certain real property located at 1725 Long Beach Boulevard, Assessor Parcel Number 7269-019-049 (Subject Property), in an amount not to exceed $21,720,000;
Accept the Categorical Exemption SE-20-092;
Increase appropriations in the Health Fund Group in the Health and Human Services Department by $15,337,400, offset by grant revenues; and
Increase appropriations in the General Fund Group in the Economic Development Department by $21,720,000, offset by a transfer of grant revenues from the Health Fund Group and Community Development Grants Fund Group. (District 1)
DISCUSSION
On July 16, 2020, the State of California Department of Housing and Community Development (HCD) released a Notice of Funding Availability (NOFA) for approximately $600 million in grants as part of the Homekey Program (Homekey). The program is a statewide effort to rapidly sustain and expand housing for persons experiencing homelessness and impacted by the COVID-19 pandemic by partnering with local entities to acquire and rehabilitate a variety of housing types, including, but not limited to, hotels, motels, vacant apartment buildings, and residential care facilities.
Of the $600 million in Homekey grant funds, $550 million is derived from the State’s direct allocation of the federal Coronavirus Aid Relief Funds (CRF) and $50 million is derived from the State’s General Fund to supplement the acquisition of, and to provide initial operating subsidies for, Homekey sites. As a result, any award from the CRF funds must be expended by December 30, 2020, while General Fund funds must be expended by June 30, 2022. On October 20, 2020, the City Council adopted a Resolution to accept and expend grant fundin...
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