Item 18 - Permanent Supportive Housing Project at 918 Bewley Street

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Permanent Supportive Housing Project at 918 Bewley Street October 15, 2024 Page 2 4 5 3 5 be a preschool operated by Head Start. The Project includes 29 parking spaces, with 20 spaces for residents and nine spaces for the intended preschool, with one accessible space and one loading parking stall. Following the City Council’s approval on July 18, 2023, this project has been issued a pre-commitment letter for $2,021,319 in HHAP funds, and eight project-based vouchers. Following the issuance of the pre-commitment letter, Illumination Foundation (“Developer”) worked on meeting various conditions outlined in the letter. One of the primary conditions was that the Developer must provide verification that it has secured all of its remaining financing for the development of the Project. This should be in the form of other enforceable funding commitments in the project’s capital stack, which may include fundraising amounts secured, funds from other public lenders, or any other funding source needed in the project’s capital stack to develop the Project and close on their construction loan financing. To that end, the Developer has secured a loan, fundraising amounts, and funds from CalOptima Health. The Developer is prepared to close on their financing and begin construction of the Project. The pre-commitment letter is also conditional on the Developer securing any and all permits and discretionary approvals that may be required for the Project by the City. Now that the Developer has met these two key conditions in the pre-commitment letter, amongst others, the City Council may consider approval of the Conditional Grant Agreement and Regulatory Agreement for the development of the Project. Further details on both Agreements are provided below. Conditional Grant Agreement The Conditional Grant Agreement is attached as Exhibit 2. The following key terms are incorporated into the Conditional Grant Agreement: •Grantee: Illumination Foundation. •Project: Grantee desires to renovate the existing residential buildings for the purpose of using the property as an 11 unit permanent supportive housing project, which will include: one 1-bedroom unit and seven 2-bedroom units for homeless youth, two 3-bedroom units for homeless senior housing, and one 1- bedroom unrestricted manager’s unit. •Conditional Grant Amount: $2,021,319 in HHAP Funds, conditional upon successful completion of the Project. In the event the Project is not constructed in compliance with the Scope of Work within two years from the date of the first disbursement of the HHAP Grant funds, the City may terminate the Agreement. Provided the Developer complies with the terms of the Conditional Grant Agreement and the Regulatory Agreement, it will not be subject to any repayment obligation. •Disbursement Schedule: o The initial disbursement of $1,819,187 will be disbursed upon complete execution of the Conditional Grant Agreement and satisfaction of the conditions to disbursement of HHAP grant proceeds.