HomeMy WebLinkAbout2025/11/18 City Council Resolution 2025-081 RESOLUTION NO. 2025-081
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROHNERT PARK
AUTHORIZING AND APPROVING THE DIRECTOR OF FINANCE TO AMEND THE
FISCAL YEAR 2025-26 BUDGET TO APPROPRIATE $28,758,453 IN HOMEKEY+
GRANT FUNDS AND $670,000 IN PROHOUSING INCENTIVE PROGRAM FUNDS TO
THE HOMELESSNESS SPECIAL REVENUE FUND (42322250) FOR THE
ACQUISITION AND CONVERSION OF A HOTEL INTO PERMANENT SUPPORTIVE
HOUSING
WHEREAS, the City Council of the City of Rohnert Park adopted the Fiscal Year 2025-
26 Budget on June 10, 2025; and,
WHEREAS,the City Council has the authority to amend the budget; and,
WHEREAS,the California Department of Housing and Community Development
("HCD") issued a Notice of Funding Availability ("NOFA") on November 26, 2024, for the
Homekey+Program("Homekey+"); and,
WHEREAS, Burbank Housing Development Corporation("Burbank") has entered into
a Purchase and Sale agreement with Sunflower Asset, LLC, which owns the 3.06-acre property
at 6500 Redwood Drive (APN 143-391-025) (the "Property"), and intends to acquire full site
control to utilize the site for the proposed Homekey+project(the "Project"); and,
WHEREAS,on April 8, 2025, the Rohnert Park City Council authorized City staff to
submit, in joint collaboration with Burbank, an application for Homekey+ grant funds(the
"Homekey+Application")to support the development of the Project on the Property; and,
WHEREAS,the City and Burbank executed a Memorandum of Understanding dated
April 15, 2025 in which Burbank agreed to serve as the Project owner, development manager,
and property manager, and the City agreed to act as the grantee of the State capital funds, to
administer such funds, and to disburse them to Burbank Housing; and,
WHEREAS,on September 19, 2025, HCD notified the City and Burbank that the Project
had been approved for Homekey+ funding and awarded $28,758,453 in grant proceeds (the
"Homekey+ Funds") for construction of the Project; and,
WHEREAS, on June 11, 2024, the City was awarded $670,000 in State funds under the
Prohousing Incentive Program ("PIP Funds") for predevelopment and development activities
supporting affordable housing. The City's PIP application originally identified use of the funds for
an affordable housing project in the City's downtown district; however, at the City's request and
with the approval of HCD, the $670,000 in PIP Funds has been reallocated for use on the Project;
and,
WHEREAS,the $670,000 in PIP Funds will be disbursed by the City to Burbank
Housing for use in developing and constructing the Project, as gap financing in addition to the
Homekey+ Funds awarded for the Project; and,
WHEREAS,the City, Burbank, and HCD intend to enter into a Standard Agreement
setting forth the terms and conditions under which the Project, consisting of no fewer than
seventy-one (71) residential units (including two studio units, sixty-seven one-bedroom units,
one two-bedroom unit, and one two-bedroom manager's unit), together with related site
improvements and supportive facilities, will be developed and operated utilizing Homekey+
Funds; and,
WHEREAS,the City and Burbank intend to enter into an Affordable Housing Covenant
to set forth Burbank's obligations to provide affordable housing in a recorded document; and,
WHEREAS,the City and Burbank intend to enter into a Development and Funding
Agreement which shall set forth Burbank's rights and obligations with respect to development of
the Project and define the disbursement method of Homekey+ and PIP grant funds for
development of the Project; and,
WHEREAS, staff recommend appropriating $28,758,453 in Homekey+grant funds and
$670,000 in PIP funds to the homelessness special revenue fund(42322250).
NOW, THEREFORE,BE IT RESOLVED by the City Council of the City of Rohnert
Park that the foregoing recitals are true and correct and that it does hereby authorize and approve
the Director of Finance to amend the Fiscal Year 2025-26 Budget to appropriate $28,758,453 in
Homekey+Funds and $670,000 in PIP Funds to the Homelessness Special Revenue Fund
(42322250) for the acquisition and conversion of a hotel into permanent supportive housing.
BE IT FURTHER RESOLVED that the Director of Finance is authorized to make any
administrative adjustments necessary to process the amendment in accordance with generally
accepted accounting principles and is authorized to appropriate all interest earnings accrued on
Homekey+ cash held in the City's bank accounts for expenditure on eligible Homekey+
activities, in accordance with the NOFA requirements and generally accepted accounting
principles.
DULY AND REGULARLY ADOPTED BY THE CITY COUNCIL OF THE CITY
OF ROHNERT PARK ON this 18th day of November, 2025.
CITY P ' ' 6 RT PARK
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ATTEST: Ger. % irayor
Sylvia Lopez uevas, City Clerk
APPROVED AS TO FORM: =ILLICA'J icat ___
Michael Biddle, Deputy City Attorney
ADAMS: AV ELWARD: ODRIGUEZ: ' SANBORN GIUDICE: C
ES: (�) NOES: ( ABSENT: ( ` ABSTAIN:
Resolution 2025-081
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