HomeMy WebLinkAboutAgenda Report - March 9, 2021 B-01 SMAGENDA ITEM B-4
CITY OF LODI
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AGENDA TITLE: Request Approval to Provide Operations, Major Maintenance, and Repair
Reserve as Part of the Harmony Homes Agreement Between the City of
Lodi and Housing Authority of the County of San Joaquin
MEETING DATE: March 9, 2021 "Special Meeting"
PREPARED BY: Community Development Director
RECOMMENDED ACTION: Request approval to provide operations, major
maintenance, and repair reserve as part of the Harmony
Homes agreement between the City of Lodi and Housing
Authority of San Joaquin.
BACKGROUND INFORMATION: In December 2018, the San Joaquin Continuum of Care
("SJCoC") awarded the City $1,250,000 in Homeless
Emergency Aid Program ("HEAP") grant funds for its
permanent supportive housing project. On May 1, 2019, the City Council accepted the award.
Additionally the City submitted an application for Permanent Local Housing Allocation ("PLHA")
funding from the California Department of Housing and Community Development ("HCD") in July
2020 pursuant to the February 2020 PLHA Notice of Funding Availability. An amendment to the
original PLHA application as approved by City Council was submitted to utilize the first year award
of $336,000 towards the Harmony Homes Project.
Project Description:
The City's Harmony Homes project will create four units of permanent housing for homeless
individuals and families or those at risk of homelessness. This supportive housing will help at -risk
individuals/families move into long-term, affordable housing where they can continue their
progress toward stable and independent living.
The project will receive tenant referrals from local organizations including The Salvation Army,
Lodi House, and Women's Center Youth and Family Services, as well as the Housing Authority
of the County of San Joaquin ("HACSJ"). HACSJ will supply housing choice vouchers to tenants.
Volunteer supportive housing services will be available for tenants, and tenants will sign lease
agreements that include appropriate maintenance of each unit.
The City is planning to partner with HACSJ to manage the construction of the Harmony Homes
Project. To do so, the City will enter into an agreement with HACSJ to develop, own, and manage
the Harmony Homes project, similar to its other housing properties.
Both HEAP and PLHA grant funding require that the property and site improvements remains in
suitable condition for permanent supportive housing at least 55 years into the future. To ensure
APPROVED: Steve Schwabauer
Stephen Schwabauer, City Manager
Approval to Provide Funds for Maintenance and Repairs as part of the Harmony Homes Project Agreement
March 9, 2021
Page 2 of 2
that it can meet these obligations, HACSJ has requested that the City provide a reserve for major
maintenance and repair costs as well as operational costs for any future deficits.
Staff recommends that the City provide to HACSJ a $50,000 reserve for operational deficits and
major maintenance and repairs. Should HASJC experience extraordinary maintenance and repair
costs Staff recommend $150,000 as an additional reserve. To access these reserve funds,
qualifying maintenance and repair costs must exceed HACSJ's routine maintenance and repair
obligations and must not be covered by HACSJ's required insurance policies. Staff also
recommends that the additional $150,000 reserve funding require the parties to mediate the need
for such funds and HACSJ to prove that it took reasonable steps to protect the property from
damage and deterioration and invested reasonable amounts of its own revenue in maintaining
the property before any funding would be granted.
As Harmony Homes will be new construction, the City does not anticipate costs incurred from the
$150,000 reserve anytime soon.
FISCAL IMPACT: $50,000 reserve for operational deficits and major maintenance and
repairs issued directly to HACSJ. Up to $150,000 if major
maintenance and repairs costs occur and HASJC requests the
funds and completes mediation
FUNDING AVAILABLE: The City will determine source of $50,000 reserve and will report to
Council along with the ratification of the Harmony Homes
Agreement at a future date. The City will go back to Council should
a request be made to utilize the $150,000 in reserve funds.
Andrew Keys
Andrew Keys, Deputy City Manager/Internal Services Director
John R Della Monica, Jr.
Comm nity Development Director
Signature: 1 r x Signature: (Mar a, 202114:11 PST)
Email: akeys@lodi.gov Email: sschwabauer@lodi.gov