To: BOARD OF SUPERVISORS
From: Social Services
Meeting Date: June 24, 2025
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Department Contact: |
DeDe Parker |
Phone: |
707-4637761 |
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Department Contact: |
Megan Van Sant |
Phone: |
707-463-7733 |
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Item Type: Consent Agenda |
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Time Allocated for Item: N/A |
Agenda Title:
title
Approval of Property Management Agreement with Rural Communities Housing Development Corporation (RCHDC) for Professional Services at the Live Oak Apartment Complex (Project Homekey) at 555 S. Orchard (Ukiah) with an Estimated Annual Maximum Expense of $300,000 ($900,000 Estimated Total Agreement Value) Effective July 1, 2025, through June 30, 2028
End
Recommended Action/Motion:
recommendation
Approve Property Management Agreement with RCHDC for professional services at the Live Oak Apartment Complex (Project Homekey) at 555 S. Orchard St (Ukiah) with an estimated annual maximum expense of $300,000 ($900,000 estimated total agreement value) effective July 1, 2025, through June 30, 2028; and authorize Chair to sign same.
End
Previous Board/Board Committee Actions:
On August 4, 2020, the Board received a report from staff regarding the Homekey Program, and provided direction to staff. On September 22, 2020, the Board approved purchase of a 56 room hotel building located at 555 S. Orchard Avenue in Ukiah and adopted a Resolution authorizing participation in the Homekey Program. On October 20, 2020, the Board adopted a Resolution authorizing the purchase of that real property. On March 9, 2021, the Board approved an agreement with Rural Communities Housing Development Corporation for property management professional services at Live Oak Apartments with a term date upon execution though June 30, 2025.
Summary of Request:
The Live Oak Apartments property located at 555 S. Orchard Street in Ukiah is owned by the County of Mendocino and serves as interim and permanent housing for individuals and families who are homeless or at risk of becoming homeless. Rural Communities Housing Development Corporation (RCHDC) has provided property management services at Live Oak Apartments since the property was opened for residency in April, 2021. On-site staffing provided by RCHDC includes custodial, a resident manager, and an evening property monitor. County staffing includes administration and oversight, as well as on-site staff to provide resident services.
The Property Management Agreement requires RCHDC and the County to collaboratively develop and submit an operating budget to be approved by the County in March of each fiscal year. County retains the responsibility to select tenants based on need, and thus cannot guarantee that all units will generate fully subsidized rent. At present, however, more than 70% of the occupied units generate full rental income, which is a considerably higher rate than originally projected. All tenants contribute 30% of their income to rent. The funding gap that exceeds rental income will be fully paid by an Operating Subsidy to RCHDC, funded through multiple grant sources including Homeless Housing Incentive Program (HHIP), and Permanent Local Housing Allocation (PLHA) funding.
Alternative Action/Motion:
Provide direction to staff.
Strategic Plan Priority Designation: A Safe and Healthy County
Supervisorial District: All
Vote Requirement: Majority
Supplemental Information Available Online At: www.projecthomekeymendocino.org
Fiscal Details:
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source of funding: Grant funds and rental income from units |
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current f/y cost: $300,000 |
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budget clarification: At least 50% of the units are estimated to generate rental income. The funding gap that exceeds rental income will be fully paid through multiple grant sources. |
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annual recurring cost: up to $300,000 |
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budgeted in current f/y (if no, please describe): Yes |
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revenue agreement: N/A |
AGREEMENT/RESOLUTION/ORDINANCE APPROVED BY COUNTY COUNSEL: Yes
CEO Liaison: Steve Dunnicliff, Deputy CEO
CEO Review: Yes
CEO Comments:
FOR COB USE ONLY
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Executed By: Atlas Pearson, Senior Deputy Clerk |
Final Status: Approved |
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Date: June 24, 2025 |
Executed Item Type: Agreement |
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Number: 25-112 |
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