Council approves 1 Tree Village permanent supportive housing, accepts $2.5M Alliance grant

The Los Banos City Council voted to approve a disposition, development and loan agreement with Anabasis LLC and to accept a $2.5 million Central California Alliance for Health grant tied to the city’s 1 Tree Village permanent supportive housing project.

The actions, taken Feb. 9, authorize the city manager to execute the grant agreement and the developer contract for a project that will create 58 permanent supportive housing units on city-owned land off Gilbert Gonzales Junior Drive. The council also declared the four-acre parcel surplus land to enable the project’s disposition to the developer.

The Central California Alliance for Health award will be used for capital costs to add eight family-sized units — four two-bedroom and four three-bedroom units — to the project. Housing Division staff said the grant is intended to be a “force multiplier” for the city’s Encampment Resolution Fund and cannot be used for operating expenses or staffing. The state’s IRF (Encampment Resolution Fund) award previously committed $11,842,621 to build the rest of the 50 one-bedroom units plus project operating subsidies and supportive-services funding.

City housing officials said the project will include on-site offices for services and property management, storage and green space, and solar carports over the parking. The developer, Anabasis LLC, will deliver modular prefabricated units; staff said modular construction shortens the timetable for occupancy. The regulatory agreement filed with the development agreement will record affordability restrictions and service requirements on the property for not less than 55 years.

Developer Adam Connor of Anabasis told council his team will work with the city and operators to manage the property, provide video surveillance with police access and maintain the site. Housing staff said case management and other services are funded in part by the IRF award for a three-year period, and additional, longer-term case management linkages (county behavioral health, managed care, VA for veterans) are planned after the initial operating subsidy term.

Council members asked about vetting and eligibility. Staff said project tenants will be prioritized through the local coordinated entry system and must meet IRF eligibility tied to the encampment-response program (people who were in the encampment or recently in it). Staff noted that Section 8/Voucher eligibility and HUD housing quality standards will also be used when the city pursues tenant-based or project-based vouchers, but HUD Section 8 rules (including criminal-eligibility rules) are separate from the IRF eligibility criteria. The city attorney and housing staff confirmed the developer must follow the IRF and Alliance grant requirements and that a tenant-selection plan will be submitted and approved by the city as part of the project’s deliverables.

Council vote: the resolution authorizing the city manager to execute the Central California Alliance for Health agreement and the budget amendment passed by voice vote. The disposition, development and loan agreement and related regulatory agreement with Anabasis also passed after public comment and a short recess; the council later adopted a separate resolution declaring the property exempt surplus land under Government Code Section 54221 to allow disposition to the developer.

Ending: Staff and the developer said they will continue neighborhood outreach, create a good-neighbor committee and finalize the tenant selection plan for council review.