To: Board of Supervisors
From: Anna Roth, Health Services Director
Report Title: Reallocate Measure X permanent supportive housing funds to 2555 El Portal Drive, San Pablo, CA
☐Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
APPROVE reallocation of permanent supportive housing funds to be used exclusively at 2555 El Portal Drive, San Pablo, California, as recommended by the Health Services Director.
FISCAL IMPACT:
This action will not result in additional impact to the General Fund. This action shifts $5,200,000 in Measure X funds previously assigned to two projects to one project located at the address noted above.
BACKGROUND:
On November 16, 2021, under item D.5, the Board of Supervisors approved one-time Measure X funding allocations to the Health, Housing and Homeless Division (H3)(0463) to support two distinct permanent supportive housing projects located in San Pablo and Richmond, CA.
On December 14, 2021, this Board authorized the Health Services Director to apply to HCD for up to $32,400,000 of grant funding from the Homekey Program to purchase the Property and AUTHORIZE the Public Works Director, or the designee, to execute an exclusive negotiating rights agreement with Clarence Perry, LLC, authorizing continued negotiations of a lease or lease-purchase agreement for the County’s acquisition of the property at 2555 El Portal, San Pablo. An application for that round of Homekey funding was not submitted due to strict State guidelines around readiness of the project.
On February 1, 2022, in support of the County’s application to HCD for Homekey funding, this Board authorized the Public Works Director to enter into a lease with the Property owner, under which the owner would construct tenant improvements specified by the County to renovate the building, and a Purchase and Sale Agreement (PSA), governing the County’s purchase of the Property. The Board action taken on February 1, 2022, stipulated that acceptance of the grant deed formalizing the County’s purchase of the Property would be the subject of a subsequent Board action.
On May 16, 2023, this Board authorized the Health Services Director to submit an application to the California Department of Housing and Community Development (HCD), to accept Homekey program funding in an amount not to exceed $16,000,000, for the acquisition of the Property and the renovations of the existing two-story building on the Property to create permanent supportive housing for persons experiencing homelessness.
On November 21, 2023, the County received a letter from HCD notifying the County that it had been awarded $16,000,000 of Homekey Program grant funds for the purchase of the Property.
On May 14, 2024, the Board of Supervisors approved an action to accept a Grant Deed from Clarence Perry, LLC, and take related actions, for the purchase of Real Property located at 2555 El Portal Drive, San Pablo, for $21,320,000, to provide permanent supportive housing to qualifying individuals. The Division is now requesting to apply the $5.2 million in one-time Measure X funds to cover the gap in cost not supported by Project Homekey funds entirely to the purchase of and necessary projects related to 2555 El Portal Drive in San Pablo, CA, as they have decided to not pursue the Brookside SRO project in Richmond, California.
Approval of this action will reallocate all one-time permanent supportive housing Measure X funds under the H3 Division to the purchase of this real property and related projects.
CONSEQUENCE OF NEGATIVE ACTION:
If not approved, funding issued to the H3 Division for permanent supportive housing projects will not align with actual expenditure lines.