To: Board of Supervisors
From: Dr. Grant Colfax, Health Services Director
Report Title: Certification and Indemnification Agreement #78-115 with the Department of Housing and Community Development
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Health Services Director, or designee, to execute the following: (1) a Certification Regarding Non-Application of Relocation Benefits with the California Department of Housing and Community Development (HCD) for Sherman Terrace, a Homekey+ grant program at 2025 Sherman Drive in Pleasant Hill to develop 5 units of permanent supportive housing, certifying that there are no residents, businesses, or farm operations on the property and therefore no residents requiring relocation assistance; and (2) an Indemnification Agreement with HCD to hold HCD harmless for all potential legal costs and liabilities arising from HCD's acceptance of the County's Certification Regarding Non-Application of Relocation Benefits.
FISCAL IMPACT:
No fiscal impact.
BACKGROUND:
On January 7, 2026 the County received a Notice of Conditional Award from HCD for $1,500,000 for the development of 5 units of permanent supportive housing at Sherman Terrace, a vacant, County-owned property located at 2025 Sherman Drive in Pleasant Hill.
The Homekey+ project includes a requirement that relocation assistance be provided to any persons, businesses, or farm operations located on any property to be developed with Homekey+ funds that would be displaced as a result of the project to be developed. If there are no persons, businesses, or farm operations on the property to be displaced, the Homekey+ grant program includes a requirement that grantees submit a Certification Regarding Non-Application of Relocation Benefits certifying that there are no persons, businesses, or farm operations to be displaced as a result of the Homekey+ funded housing development and therefore no relocation benefits to be provided.
Contra Costa’s Homekey+ application for Sherman Terrace included a Relocation Narrative, attached, as required by the Request for Applications stating that: “No persons, businesses, or farm operations will be displaced, either temporarily or permanently, as a result of the proposed development.” The parcel is a County-owned lot with two vacant, boarded up structures and no existing tenants or operations. The existing structures are not within the footprint of the proposed permanent supportive housing units and are to be demolished as part of a BCHIP funded Social Rehabilitation project at this location.
As part of the contracting process, the County must certify that the new housing being developed with Homekey+ funding is not displacing any persons, businesses, or farm operations and therefore no relocation benefits are required.
This Agreement incorporates an Indemnification Agreement which requires County to indemnify, save and hold harmless DHCD from any and all claims, liabilities, damages, losses, attorney fees, expenses, costs, actions, or proceedings threatened, asserted, or brought against any of the foregoing individuals or entities related to or arising from Relocation Law with respect to the Project. Given that there are no persons, businesses, or farm operations on the property, there is minimal risk with executing this Indemnification Agreement.
CONSEQUENCE OF NEGATIVE ACTION:
County would not be able to complete the contracting process for Homekey+ and would not receive the conditionally awarded funds.