REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
January 23, 2024
FROM
CARRIE HARMON, Director, Community Development and Housing Department
SUBJECT
Title
Resolution Authorizing the Transferred Ownership of 450 North G Street, San Bernardino, and Approving Amendment to the Homekey Standard Agreement
End
RECOMMENDATION(S)
Recommendation
1. Adopt Resolution:
a. Authorizing the transferred ownership of 450 North G Street, San Bernardino, California to 450 G Street, LP.
b. Approving Amendment No. 2 to the Standard Agreement (State Agreement No. 20-HK-00112) for Homekey Funds to add 450 G Street, LP, to the Standard Agreement as owner and co-applicant.
c. Authorizing the Chair of the Board of Supervisors or the Chief Executive Officer, upon consultation with County Counsel, to execute Amendment No. 2 to the Standard Agreement (State Agreement No. 20-HK-00112) for Homekey Funds.
2. Authorize the Chair of the Board of Supervisors or the Chief Executive Officer to execute the Regulatory Agreement, once finalized and approved by the State of California Housing and Community Development Department, upon consultation with County Counsel.
(Presenter: Carrie Harmon, Director, 382-3983)
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COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Provide for the Safety, Health, and Social Service Needs of County Residents.
Pursue County Goals and Objectives by Working with Other Agencies and Stakeholders.
FINANCIAL IMPACT
Approval of this item will not result in the use of Discretionary General Funding (Net County Cost). No additional funding is required for the transfer of ownership of 450 North G Street, San Bernardino, California or the amendment of the Homekey Standard Agreement to reflect the transferred ownership.
BACKGROUND INFORMATION
The All Star Lodge Project (Project) will provide housing to San Bernardino County (County) individuals who are at risk of or experiencing homelessness. The Project’s timeline was greatly accelerated to take advantage of State Homekey funding, which provided a unique opportunity to obtain State funds to convert motels/hotels to interim shelter and/or permanent supportive housing to rapidly increase capacity in a short period of time. The grant application required the County to serve as the local sponsor and Shangri-La Industries, LLC, to serve as the Developer. Step Up on Second, Inc., a Partner of Shangri-La Industries, LLC, was included to serve as the supportive service provider. The grant application sought funds to convert the All Star Lodge located at 450 North G Street in the City of San Bernardino to provide homeless interim housing. Upon completion, the Project was anticipated to deliver 75 studio units and a manager’s unit.
Following approval of the grant application, $8,380,402 in Homekey Program Grant funds were allocated by the State for the All Star Lodge Project. The State of California Housing and Community Development Department (HCD) issued Standard Agreement (State Agreement No. 20-HK-00112) (Standard Agreement) for Homekey Funds, dated November 24, 2020, which was amended by Amendment No. 1, dated December 24, 2020, and executed by the Chair of the Board of Supervisors (Board) via the authority granted by the Board in Resolution No. 2020-171 on September 15, 2020. Shangri-La Industries, LLC acquired the property as 450 G Street, LP.
As part of the Homekey Program Grant funding requirements, a Regulatory Agreement must be recorded against the property. The Regulatory Agreement between HCD and the County, Shangri-La Industries, LLC, Step Up on Second, Inc., and 450 G Street, LP will prioritize occupancy for the targeted population. To move forward with the recordation of the Regulatory Agreement on the property, the County is required to formally acknowledge that the ownership of the property was taken by 450 G Street, LP.
Adoption of the recommended Resolution would allow the County to execute Amendment No. 2 to the Standard Agreement to identify 450 G Street, LP as an owner and co-applicant of the Project. Recommendation No. 2 authorizes the Chair of the Board of Supervisors or the Chief Executive Offer, upon consultation with County Counsel, to execute the 10-Year Regulatory Agreement with HCD, once its terms are finalized. As the Regulatory Agreement is still pending approval by HCD, delegation of authority for the Chair of the Board of Supervisors or Chief Executive Officer will be sought to immediately execute and return the agreement. This action will allow for the executed agreement to be returned to HCD in an expedited manner.
On August 11, 2020 (Item No. 23), the Board approved and authorized the Chief Executive Officer to submit a non-binding Homekey Program application to HCD to provide housing for individuals and families experiencing homelessness or at risk of experiencing homelessness and impacted by the COVID-19 pandemic.
On September 15, 2020 (Item No. 39), the Board adopted Resolution No. 2020-171 authorizing the submission of a Homekey Program application to HCD and the execution of the Standard Agreement to participate in the Homekey Program.
On September 29, 2020 (Item No. 31), the Board approved Memorandum of Understanding No. 20-940 between San Bernardino County, Shangri-La Industries, LLC, and Step Up on Second, Inc., outlining the respective roles and responsibilities of the parties for the Project to provide housing to individuals experiencing homelessness or at risk of homelessness and impacted by COVID-19, under the State’s Homekey Program.
On December 15, 2020 (Item No. 44), the Board approved the Homekey County Grant Agreement No. 20-1229 with Shangri-La Industries, LLC, 450 G Street, LP, and Step Up on Second, Inc. in an amount not to exceed $5,000,000 for the operating cost of the All Star Lodge, funded by $3,473,191 of Homeless Housing Assistance and Prevention (HHAP) grant funding and $1,526,809 of California Emergency Solutions and Housing (CESH) grant funding, effective December 8, 2020 through the tenth anniversary of the Project completion date.
On February 9, 2021 (Item No. 34), the Board approved Amendment No. 1 to the Homekey County Grant Agreement No. 20-1229 with Shangri-La Industries, LLC, 450 G Street, LP, and Step Up on Second Street, Inc., modifying the Financing Plan and Schedule of Performance for the Project.
The Project is currently operating as interim housing at 98% to 100% occupancy with property management and supportive services being provided by Step Up on Second, Inc.
PROCUREMENT
N/A
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Suzanne Bryant, Deputy County Counsel, 387-5455) on January22, 2024; Finance (Christopher Lange, Administrative Analyst, 386-8393) on January 11, 2024; and County Finance and Administration (Cheryl Adams, Deputy Executive Officer, 388-0332) on January 11, 2024.