To: Board of Supervisors
From: John Kopchik, Director, Conservation and Development
Report Title: Authorizing Application for, and Receipt of, Homekey+ Grant Program Funds for the Choice in Aging Senior Housing Project
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
ADOPT a resolution authorizing the Department of Conservation and Development Director to apply for and execute a contract to accept State of California Homekey+ Funds in an amount not to exceed $30,000,000 for the Choice in Aging Senior Housing Project located at 490 Golf Club Road in the City of Pleasant Hill.
FISCAL IMPACT:
One hundred percent State funded, no County match. This authorization by the Board of Supervisors is for the Department of Conservation and Development (DCD) to apply for Homekey+ competitive allocation funds from the State of California for the Choice in Aging Senior Housing Project.
BACKGROUND:
Choice in Aging Senior Housing Project
On June 7, 2022, the Board of Supervisors (Board) awarded Satellite Affordable Housing Associates (SAHA) $1,000,000 in Fiscal Year 2022/2023 Permanent Local Housing Allocation (PLHA) funds for the Choice in Aging Senior Housing project located at 490 Golf Club Road in Pleasant Hill. The project is for the new construction of 82 units, including one manager’s unit, of permanent supportive housing for seniors 62 years of age and over. The project will include set-aside units for homeless veterans and will provide onsite supportive services for tenants.
On June 25, 2024, the Board awarded SAHA $4,968,158 in Fiscal Year 2024/2025 Measure X Housing Funds and $2,963,384 in State of California Local Housing Trust Funds (LHTF), for an additional combined award of $7,931,542, for the Choice in Aging Senior Housing project. SAHA applied for tax credit financing for the project in August 2024 but was unsuccessful in obtaining an award.
The awards the Board approved on June 7, 2022, and on June 25, 2024, came with contingencies to keep the project moving to meet milestones or deadlines tied to the PLHA and LHTF funding programs. Those original contingencies were amended by the Board on April 1, 2025, to assist SAHA in their competitive application for the State of California’s SuperNOFA funds by showing the County’s funds as remaining committed to the project. The SuperNOFA application had an application deadline of April 15, 2025. The SuperNOFA application was intended to fill the remaining financing gap so the project could be eligible for an award of tax credits in 2025. SAHA was unsuccessful in their application for the SuperNOFA but has continued to be diligent in seeking funding from various sources including various State funding sources. They were successful in obtaining funding awards from the California Department of Housing and Community Development Veterans Housing and Homelessness Program (VHHP) and the City of Pleasant Hill. They were also awarded 51 U.S. Department of Housing and Urban Development (HUD) project-based vouchers.
Homekey+ Program
On November 26, 2024, the California Department of Housing and Community Development (HCD or Department), in collaboration with the California Department of Veterans Affairs (CalVet), announced the availability of approximately $2.145 billion of Homekey+ grant funding through their Notice of Funding Availability (NOFA).
Homekey+ is the permanent housing component of the Behavioral Health Infrastructure Bond Act (BHIBA), part of Proposition 1 passed by California voters in March 2024. Homekey+ supports the development of Permanent Supportive Housing for Veterans and individuals with mental health or substance use disorder challenges who are at risk of or experiencing homelessness. Homekey+ also establishes allocations for Veterans and for Youth relative to that target population.
Homekey+ also introduces new flexibility to fund shovel-ready Projects with prior HCD or other awards in need of gap financing to commence construction. Homekey+ Projects receiving an award for new construction and gap financing Projects must complete construction within 24 months, starting 60 days from the date of the Award letter. Appropriate services are critical to serving eligible populations.
Homekey+ Application Process
The Homekey+ Program requires the applicant to be a local government entity. SAHA contacted City of Pleasant Hill and County staff to inquire about the possibility be the lead applicants and assist them to qualify for Homekey+ funding for their Choice in Aging Senior Housing project. The City of Pleasant Hill unfortunately was unable to participate as an applicant. Therefore, in order to be eligible to apply for the Homekey+ funds, the County, through the Department of Conservation and Development, is proposed to be the sole lead applicant with SAHA being the co-applicant. The County’s application for Homekey+ funding would seek up to 30 million dollars to fill the current financing gap for the Choice in Aging project.
SAHA has exhausted all other funding sources available to their project, and this would be their final funding opportunity that could enable the project to move forward, apply for tax credits and/or tax-exempt bonds, and begin construction for their Choice in Aging Senior Housing Project in Pleasant Hill. If SAHA cannot close their finance gap for the Choice in Aging Senior Housing project in 2026 and execute loan documents for the County’s PLHA, Measure X and LHTF awards, the County will likely need to recapture the PLHA, Measure X, and LHTF funds due to State funding requirements and allocate the funds to another housing project.
CONSEQUENCE OF NEGATIVE ACTION:
Negative action will further delay the Choice in Aging Senior Housing project in Pleasant Hill if SAHA cannot partner with a local jurisdiction and will not be able to apply for Homekey+ competitive grant funds.
THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA
and for Special Districts, Agencies and Authorities Governed by the Board
body
IN THE MATTER OF authorizing application for, and receipt of, local government planning support grant program funds
WHEREAS, the Department of Housing and Community Development (“HCD”) has issued a Notice of Funding Availability, dated November 26, 2024 (“NOFA”), for the Homekey+ Program (“Homekey+” or “Program”). HCD has issued the NOFA for Homekey+ grant funds pursuant to Health and Safety Code Section 50675.1.3 (Assem. Bill No. 140 (2021-2022 Reg. Sess.), § 20.); Health and Safety Code Section 50675.1.5 (Assem. Bill No. 531 (2023-2024 Reg. Sess.); Section 14184.402 of the Welfare and Institutions Code; Section 5891.5 of the Welfare and Institutions Code; and Round 5 and 6 of the Homeless Housing, Assistance and Prevention (HHAP) grant program. (Assem. Bill No. 129 (Chapter 40, Statutes 2023) and Assem. Bill No. 166 (Chapter 48, Statutes 2024), respectively.
Whereas, the County Board of Supervisors of the County of Contra Costa (“Applicant”) desires to jointly apply for Homekey+ grant funds with Satellite Affordable Housing Associates (Co-Applicant), Therefore, Applicant is joining Satellite Affordable Housing Associates in the submittal of an application for Homekey+ funds (“Application”) to HCD for review and consideration.
Whereas, HCD is authorized to administer Homekey+ pursuant to the Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675) of Part 2 of Division 31 of the Health and Safety Code. Homekey+ funding allocations are subject to the terms and conditions of the NOFA, the Application, the HCD-approved STD 213, Standard Agreement (“Standard Agreement”), and all other legal requirements of the Homekey+ Program.
NOW, THEREFORE, BE IT RESOLVED
end
The Department of Conservation and Development Director of the County of Contra Costa is hereby authorized and directed to submit a joint Application to HCD in response to the NOFA, and to jointly apply for Homekey+ grant funds in a total amount not to exceed $30,000,000.
If the Application is approved, the Department of Conservation and Development Director of the County of Contra Costa is hereby authorized and directed to enter into, execute, and deliver a Standard Agreement in a total amount not to exceed $30,000,000, any and all other documents required or deemed necessary or appropriate to secure the Homekey+ funds from HCD and to participate in the Homekey+ Program, and all amendments thereto (collectively, the “Homekey+ Documents”).
The County of Contra Costa acknowledges and agrees that it shall be subject to the terms and conditions specified in the Standard Agreement, and that the NOFA and Application will be incorporated in the Standard Agreement by reference and made a part thereof. Any and all activities, expenditures, information, and timelines represented in the Application are enforceable through the Standard Agreement. Funds are to be used for the allowable expenditures and activities identified in the Standard Agreement.
The Department of Conservation and Development Director of the County of Contra Costa is authorized to execute the Application and the Homekey+ Documents on behalf of the County of Contra Costa for participation in the Homekey+ Program.
PASSED AND ADOPTED this 10th day of February, 2026, by the following vote:
AYES: [ #_] NAYS: [ #_] ABSTAIN: [ #_] ABSENT: [ #_]
Monica Nino, County Administrator and Clerk of the Board of Supervisors
The undersigned, (insert name and title of signatory) of County of Contra Costa does hereby attest and certify that the foregoing is a true and full copy of a resolution of the governing body adopted at a duly convened meeting on the date above-mentioned, and that the resolution has not been altered, amended, or repealed.
SIGNATURE: ________________________ DATE: _____________________
NAME: _____________________________ TITLE: _____________________