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Approve a Ground Lease with Solano-Napa Habitat for Humanity to allow development and operation of a house for homeless veterans (Veteran House) on a portion of the American Legion Post 178/County property located at 610 St. Francis Way, Rio Vista; Authorize the Auditor-Controller to increase appropriation by $250,000 for FY2019/20 in County Housing Set-Aside Fund for Rio Vista as a County Contribution to Solano-Napa Habitat for Humanity (4/5 vote required); and Authorize the County Administrator to sign the Ground Lease and approve expenditure of the Set-Aside Funds to Solano-Napa Habitat for Humanity toward development costs on the Veterans House
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Published Notice Required? Yes ____ No _X _
Public Hearing Required? Yes ____ No _X _
DEPARTMENTAL RECOMMENDATION:
The Department of General Services recommends that the Board:
1. Approve a Ground Lease (Attachment A) with Solano-Napa Habitat for Humanity to allow development and operation of a house for homeless veterans (Veterans House) on a portion of the American Legion Post 178/County property located at 610 St. Francis Way, Rio Vista;
2. Authorize the Auditor-Controller to increase appropriation by $250,000 for FY2019/20 in County Housing Set-Aside Funds for Rio Vista (Fund 323) as a County Contribution to Solano-Napa Habitat for Humanity (4/5 vote required); and
3. Authorize the County Administrator to approve expenditure of the Set-Aside Funds to Solano-Napa Habitat for Humanity toward development costs on the Veterans House.
SUMMARY:
The recommended ground lease (lease) will allow the development of a multi-tenant home (Veterans House) in Rio Vista for up to six qualified homeless veterans within an independent living environment. The recommended lease is the result of a partnership between Solano County (property owner), American Legion Post 178 (Post 178), Solano-Napa Habitat for Humanity, and Berkeley Food & Housing.
Post 178 currently operates a Veterans Building and facilities located on a portion of County property in Rio Vista. In 2016, Post 178 targeted housing needs for homeless veterans and sought a partnership with Solano-Napa Habitat for Humanity for the design and construction of a multi-tenant home on an unused portion of the County property. Post 178 also sought an operator of the Veterans House upon completion and identified Berkeley Food & Housing as an experienced operator. A Memorandum of Understanding between the three parties is included in Attachment B to this report.
The recommended lease is between the County and Solano-Napa Habitat for Humanity. Following completion of the Veterans House, the lease will be assigned, and the Veterans House will be sold by Solano-Napa Habitat for Humanity to Berkeley Food & Housing as provided for and described in the lease. Berkeley Food & Housing will become the successor in interest in the lease and will operate the Veterans House. The overall term of the recommended lease is for 50 years; however, the County or lessee may terminate the lease at 32 years.
Solano-Napa Habitat for Humanity is requesting that the Board consider contributing funds toward development of the Veterans House. Staff identified County Housing Set-Aside Funds for Rio Vista for use toward the project and recommends that the Board approve the request.
FINANCIAL IMPACT:
Development of the Veterans House will be funded by Solano-Napa Habitat for Humanity through donations and contributions by individuals, organizations and local government entities. Solano-Napa Habitat for Humanity estimates that the total project cost will be approximately $500,000. Upon completion of the project, the Veterans House and associated improvements will be sold to Berkeley Food & Housing in the form of a 30 Year zero-interest promissory note during which time Berkeley Food & Housing will pay for and operate the Veterans House. The recommended lease term will allow Habitat for Humanity to amortize the project development costs and for Berkeley Food & Housing to pay for the Veterans House. The County’s initial contribution toward the Veterans House project is the use of County property as provided for by the lease for development and operation of the facility. There will not be any ongoing operating expense to the County for the Veterans House. Solano-Napa Habitat for Humanity is, however, requesting (Attachment C) that the Board consider a County contribution of $250,000 toward development of the Veterans House. Staff identified qualifying funds from County Housing Set-Aside Funds for Rio Vista and recommends that the Board approve the request. The recommended action by the Board will authorize the Auditor-Controller to increase appropriation by $250,000 for FY2019/20 in County Housing Set-Aside Funds for Rio Vista (Fund 323) as a County Contribution to Solano-Napa Habitat for Humanity and authorize the County Administrator to approve expenditure of the Set-Aside Funds to Solano-Napa Habitat for Humanity toward the development costs on the Veterans House.
The costs associated with preparing the agenda item are nominal and absorbed by the department’s FY2018/19 Adopted Budget.
DISCUSSION:
Post 178 researched the need to house homeless veterans. The need was further validated by Post 178 through the use of HUD/VA Point-In-Time Census & Survey Reports from January 2017 and again in January 2018. The 2018 report showed a total of 1,367 Homeless Veterans in the following six adjacent counties: Alameda 526; Solano 124; Napa 23; Contra Costa 102; San Mateo 100; Sacramento 492. Post 178 further sought a partnership with Solano-Napa Habitat for Humanity for the design and construction of a multi-tenant home on an unused portion of the County property next to the Veterans Building (Post 178) in Rio Vista. Post 178 also identified Berkeley Food & Housing as an experienced operator.
The proposed Veterans House must be used for homeless veterans satisfying specific criteria as required by and identified in the recommended lease. The criteria includes: a) The Veteran is of any branch of United States military service as evidenced by a valid DD-214; b) The Veteran’s name is on the Solano County Coordinated Entry “Veterans by Name” list. (Preference); and c) the Veteran’s income is at or below 80% of Area Median Income. If at some point in time during the term of the lease insufficient qualified homeless veterans are unavailable to fully occupy the Veterans House, the Veterans House operator may request the County to consider allowing other homeless persons as provided for by the lease.
The Veterans House will be 2,480 square feet in area with six bedrooms and includes a detached 450 square foot garage space. Attachment D includes the project site plan and the Veterans House floor plan. The Veterans House will provide for an independent living environment for homeless veterans with every two rooms within the house sharing a restroom containing independent facilities. Each room will have a small counter space, sink and refrigerator. The Veteran’s House will also provide common living space, dining area and a main shared kitchen. Other project improvements include the extension of utilities to the Veterans House including sewer, water and power. Other exterior amenities and improvements are also envisioned by Post 178 in the form of a future Veterans Rose Garden and a possible community garden space, though these future possible improvements are not a part of the lease.
ALTERNATIVES:
The Board could choose to not approve the lease. This action is not recommended as the Habitat for Humanity is ready to proceed with the project during the current 2019 construction season.
The Board could choose to not approve the funding request by Solano-Napa Habitat for Humanity. The requested funding toward the Veterans House qualifies through use of Housing set aside funds as recommended by staff.
OTHER AGENCY INVOLVEMENT:
County Counsel reviewed the recommended lease as to form. The lease was negotiated, reviewed and revised with Solano-Napa Habitat for Humanity and Berkeley Food & Housing. Habitat for Humanity has also worked with American Legion Post 178 and with the City of Rio Vista and plans to present the project to the Rio Vista City Council in the near future. This effort is part of housing strategies being coordinated by the County Administrator’s Office in conjunction with Department of Resource Management.
CAO RECOMMENDATION:
APPROVE DEPARTMENTAL RECOMMENDATION