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Council accepts CDBG Homekey closeout report; $1.6 million to revert after partial spending
Summary
Council accepted a staff report closing out a Community Development Block Grant (CDBG) Homekey award that helped acquire parking for LifeMoves interim housing; staff said $3.4 million of $5.0 million was spent and $1.6 million will be returned to the state.
City staff briefed the council on the closeout of a CDBG Homekey grant tied to the interim housing project at 2566 Lakehorn Drive and associated LifeMoves activities. The council accepted the report at the Sept. 9 meeting.
Housing Director Wayne Chen said the city and LifeMoves were awarded the maximum $5 million under the state CDBG Homekey competitive award. The funds were intended to support acquisition of a nearby site (1950 Lakehorn) to provide additional parking for the interim housing project and to fund installation of a solar system at the interim housing facility. Chen told council the parking acquisition was completed but the solar project was not implemented. As a result, about $3.4 million of the $5 million was expended and just under $1.6 million will be returned to the state of California as part of grant closeout.
LifeMoves role on the project made the city an intermediary for these funds; staff said LifeMoves estimates the interim housing project serves about 219 clients annually and the parking use will be monitored as residents transition to other housing.
Council had no questions and accepted the closeout report unanimously. Staff said the final closeout documentation will be submitted to the state following the public‑hearing closeout step completed at the meeting.
Ending: Staff will submit the final grant closeout materials to the state and continue to monitor parking utilization at the interim housing site.
