Sunrise Apartments ownership transfer approved; county adopts PLHA-loan forgiveness intent

The Kings County Board of Supervisors approved four items on April 29 to finalize transfer and operational arrangements for the Sunrise Apartments Homekey project, clearing the way for the 22-unit permanent supportive housing site to open in May.

Wendy Osekafo, director of Human Services Agency, summarized the project’s history and funding. "In late 2020, Kings County Human Services partnered with Kings Tulare Homeless Alliance to apply for project Homekey funds. We were awarded $2,700,000 which was used to purchase the Stardust Hotel and the adjacent empty lot and complete the first phase of the remodel," Osekafo said. She told supervisors the total project cost was $6,200,000, funded through a braid of state and local grants and partner contributions.

Why it matters: The board approved (1) an assignment and assumption agreement and amendment to the deed of trust to add Kings Community Action Organization (KCAO) as the new owner and responsible party; (2) a third amendment to the Homekey standard agreement to incorporate KCAO; (3) a resolution clarifying the county’s intent to forgive the Permanent Local Housing Allocation (PLHA) loan after 55 years provided KCAO remains in compliance; and (4) a subordination agreement placing the City of Hanford’s development agreement secondary to the county’s Homekey regulatory agreement and restrictive covenants.

Osekafo said the facility had been used as Project Roomkey during COVID-19 and that construction delays caused by switchgear supply problems had been resolved this spring. "We are now officially electrified and ready to open in May," she said.

Operations and oversight: KCAO will provide property management and supportive services, with referrals to Behavioral Health or Human Services as needed. The PLHA funds required a low-interest deferred loan structure under state rules; the board adopted a resolution making explicit the county’s intent to forgive that loan after 55 years if the property remains compliant with the restrictions.

Board and community response: Supervisors and staff thanked Human Services and KCAO for completing a project that had taken several years. The board approved the items on a roll call vote with four votes in favor and one absent. Osekafo announced a ribbon-cutting scheduled for Friday at 11 a.m.; staff indicated move-in and placement of residents would follow.

Outcome: The board approved the assignment and assumption agreement and deed-of-trust amendment, the third amendment to the Homekey standard agreement, adopted the PLHA-loan-forgiveness resolution, and approved the subordination agreement, enabling final transfer and opening preparations for Sunrise Apartments.