Camarillo City Council approves $7.3M ERF grant for affordable housing at Arneel Road

The Camarillo City Council convened on April 9, 2025, to discuss significant developments regarding affordable housing initiatives and funding mechanisms aimed at addressing local housing needs. The meeting focused on two primary projects: the approval of a Professional Services Agreement (PSA) with Azure Printed Homes and the acceptance of an Encampment Resolution Fund (ERF) grant.

The PSA, amounting to $527,025, includes a request for an additional 10% contingency of $52,702.50. Azure Printed Homes, a company established in 2019, has shifted its focus from private projects to collaborations with local jurisdictions amid the ongoing housing crisis. The agreement encompasses costs for site preparation, landscaping, fencing, and the installation of 60 housing units in San Luis Obispo County, with funding sourced from Community Development Block Grant (CDBG) funds, ensuring no immediate budgetary impact on the city.

City staff presented a detailed financial forecast for the project, projecting a budget deficit after the initial funding period. While the construction and operational costs will be covered by the $7.3 million ERF grant, the city anticipates annual operating deficits beginning in fiscal year 2027-2028. The council discussed the potential need for general fund allocations to cover these deficits if additional grant funding is not secured.

The ERF grant, which aims to assist local governments in addressing unsheltered encampments, has awarded Camarillo $7.3 million, with $6 million earmarked for constructing nine units of affordable housing. The grant requires that 50% of the funds be expended by June 30, 2026, and all funds by June 30, 2027. The council emphasized the importance of adhering to the grant's timeline and conditions, noting that there are no long-term financial obligations to the state after the grant period ends in 2029.

Council members raised questions regarding the operational responsibilities post-grant and the implications of state regulations on the funding. Staff confirmed that while the city is not obligated to continue services after the grant period, it may choose to do so based on policy decisions.

In conclusion, the meeting underscored the city's commitment to addressing housing challenges through strategic partnerships and funding opportunities, while also highlighting the need for ongoing financial planning to ensure the sustainability of these initiatives. The council will continue to monitor the projects and explore additional funding sources to mitigate future operational deficits.