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Home My WebLink About _ 4.2(a)--Accept Subaward of Whole Person Care funds from Shasta County HHSA CITY OF REDDING REPORT TO THE CITY COUNCIL Recommendation Authorize and approve the following relative to Whole Person Care (WPC) Program funds from the Shasta County Health and Human Services Agency: (1) Accept WPC Program funds in the amount of $800,000 to assist with the development costs of a mixed-use building consisting of at least 12 income-eligible residential units and commercial space at 815 and 825 Parkview Avenue and 2520 Leland Avenue; (2) Authorize the Mayor, or designee, to execute the associated WPC Program Subaward Agreement; (3) Authorize the City Manager, or designee, to allocate funds, execute any other agreement and any other documents necessary to complete the project transaction; (4) Find that applying for and accepting grant funding is not considered a project under the California Environmental Quality Act; and (5) Find that applying for and accepting grant funding is exempt from review under the National Environmental Policy Act under Title 24 CFR 58.34(a)(3). Fiscal Impact WPC Program funds are grant funds with no match obligation. However, the grant funds require a 20-year commitment to two units specifically for Medi-Cal beneficiaries who are mentally ill and experiencing homelessness or at-risk of homelessness. The City’s cost of monitoring and reporting for these households, will be funded by a monitoring fee of at least $20,000 that will be passed on to the developer of the project. In addition to these funds, the project may be awarded Regional Early Action Plan (REAP 2.0) funds in the amount of $750,000. These funds are in the process of being approved by the California Department of Housing and Community Development. This Project has no impact to the General Fund. MEETING DATE: June 20, 2023 ITEM NO. 4.2(a) FROM: ***APPROVED BY*** sbade@cityofredding.org btippin@cityofredding.org SUBJECT: 4.2(a)--Authorization to accept Whole Person Care Program Funds from Shasta County Health and Human Services Agency. Steve Bade, Assistant City Manager Report to Redding City Council June 13, 2023 Re: 4.2(a)--Accept Subaward of Whole Person Care funds from Shasta County HHSA Page 2 Alternative Action The City Council (Council) could choose not to accept the WPC funds, and replacement funds would need to be identified to complete the proposed development. Background/Analysis On February 1, 2012, the Redding Redevelopment Agency (RRA) was dissolved pursuant to Health and Safety Code Sections 34161-34166 and the Council elected for the City to serve as the Successor Housing Agency to the former RRA pursuant to Resolution 2012-0007. All former RRA housing property assets were transferred to the City. On June 1, 2021, the Council through Resolution 2021-061 declared the parcels located at 815 and 825 Parkview Avenue, and 2520 Leland Avenue (collectively, the Property) were surplus and pursuant to the Surplus Land Act, they have been cleared for disposition by the California Department of Housing and Community Development. Although there has been past interest in the property including one offer to purchase, the sale did not materialize and to date, the property has not been transferred. Recently, staff applied for and was awarded REAP 2.0 funds in the amount of $750,000 for the development of a mixed-use development that will consist of at least 12 units of income-eligible housing and retail/commercial space at the subject property (Project). In a quest to secure more funding for the project, staff reached out to Shasta County to inquire if there were any grant funds that may assist with the financing of the project. Shasta County at its meeting of May 16, 2023, approved a contribution of $800,000 of WPC funds towards the project. WPC funds stem from the 2019-20 California State Governor’s Budget that included $100 million for WPC programs that provide housing services for individuals who are experiencing homelessness, or are at risk of homelessness, and are suffering from mental health issues. Shasta County was allocated $1,198,355. Acceptance of the WPC funding will allow the project to assist the most vulnerable of the City’s homeless population. To facilitate the potential project, staff will publish a request for proposals to select a qualified developer. The successful developer and/or eventual project operator will be required to provide supportive services to the project tenants. Environmental Review Applying for and accepting funding is not considered a project under the California Environmental Quality Act (CEQA). Any project that is developed will be reviewed for CEQA compliance once the details are known. No further action is required at this time. Under the National Environmental Policy Act (NEPA), administrative and management activities such as applying for and accepting funding are considered exempt activities and no further action is required. The construction project will be reviewed for NEPA requirements when a proposal and scope of work is known. Council Priority/City Manager Goals Report to Redding City Council June 13, 2023 Re: 4.2(a)--Accept Subaward of Whole Person Care funds from Shasta County HHSA Page 3 • Government of the 21st Century – “Be relevant and proactive to the opportunities and challenges of today’s residents and workforce. Anticipate the future to make better decisions today.” • Economic Development- “Facilitate and become a catalyst for economic development in Redding to create jobs, retain current businesses and attract new ones, and encourage investment in the community” Attachments Signed-on-Paper_WPC_PassThrough DocuSign Envelope ID: 1D26161C-7AC9-49A6-B127-C921877D850F DocuSign Envelope ID: 1D26161C-7AC9-49A6-B127-C921877D850F DocuSign Envelope ID: 1D26161C-7AC9-49A6-B127-C921877D850F DocuSign Envelope ID: 1D26161C-7AC9-49A6-B127-C921877D850F DocuSign Envelope ID: 1D26161C-7AC9-49A6-B127-C921877D850F DocuSign Envelope ID: 1D26161C-7AC9-49A6-B127-C921877D850F DocuSign Envelope ID: 1D26161C-7AC9-49A6-B127-C921877D850F DocuSign Envelope ID: 1D26161C-7AC9-49A6-B127-C921877D850F DocuSign Envelope ID: 1D26161C-7AC9-49A6-B127-C921877D850F DocuSign Envelope ID: 1D26161C-7AC9-49A6-B127-C921877D850F DocuSign Envelope ID: 1D26161C-7AC9-49A6-B127-C921877D850F DocuSign Envelope ID: 1D26161C-7AC9-49A6-B127-C921877D850F DocuSign Envelope ID: 1D26161C-7AC9-49A6-B127-C921877D850F