Richmond council allocates $6.97 million in audited unspent funds, commits $1.4M to Homekey and holds $500,000 for Parchester study

The Richmond City Council voted unanimously to adopt resolutions appropriating fiscal year 2023–24 audited unspent funds in the amount of $5,571,504 and to commit an additional $1,400,000 to the city’s Homekey project loan, producing a total allocation of $6,971,504.

The unspent funds package targeted capital projects and other priorities the city has discussed in recent months. City staff said the Homekey request covers an identified capital funding gap for converting a 50‑room hotel into 48 units of permanent supportive housing for chronically homeless people; staff recommended a $1,400,000 loan to complete necessary rehabilitation work. Andrea Miller, the city’s finance director, presented the audited balance and explained council policy recommendations including OPEB and pension trust contributions.

The appropriation also addressed shortfalls in several capital improvement projects (CIPs): $250,000 for Borman Park site remediation, $400,000 for Borman Park revitalization (skatepark, fields, pathways and surfacing), $2,700,000 for Booker T. Anderson Community Center Phase 3 (exterior improvements), and $1,221,504 for Carlson Boulevard Crosstown Connection Phase 2 (paving, design increases, public art). Staff said some projects are in construction or at bid/award and explained why additional funding is needed as bids and site conditions developed.

City staff described Homekey funding sources as a mix of state Homekey grant proceeds (presentation listed $14,500,000 and other state funding lines), $4,900,000 already committed from the city’s Affordable Housing Fund (anticipated to be loaned from the general fund and repaid as development fees are collected), and a $1,000,000 Community Development Block Grant from Contra Costa County. Lina Velasco, director of community development, said operating and supportive services funding needs remain and staff recommends $2,000,000 in future years for on‑site services, though only the $1.4 million capital loan was before council.

During nearly two hours of public comment and council deliberations, members pressed staff about project phasing, bid timing, and whether reallocations could be made to address urgent neighborhood needs. A central moment came when Council Member Robinson moved an amendment to hold $500,000 from the Carlson/BTA allocation and direct staff to return with a plan to address chronic flooding in Parchester Village; that motion was seconded and adopted as part of the final package. Staff said the $500,000 would be restored to the Carlson project in the next fiscal‑year budget (FY25–26) if the council chooses.

Council members and community speakers also highlighted Harbor 8/Pogo Park’s near‑completion status and requested the city consider targeted support for that nonprofit’s completion gap; staff said they were still collecting documentation and would report back. Deputy Public Works Director and City Engineer Robert Armijo and Deputy Director Joseph Munoz outlined that Carlson’s current shortfall had grown because paving and additional design elements identified in 35% design were now required to avoid repaving soon after project completion.

The council voted 7–0 to approve the appropriations and the amendment to hold $500,000 for Parchester. The city manager and staff noted several of the listed projects are at bid or construction phases and cautioned that estimates may change as bids are returned. Staff recommended quarterly updates and a budget entry in FY25–26 to ensure delayed projects receive planned funding.

Votes at a glance: - Adopted resolutions to appropriate FY23–24 audited unspent funds: $5,571,504; commit additional Homekey loan $1,400,000; total allocated $6,971,504 — outcome: approved, vote 7–0 (Mayor Martinez and six council members). Motion to adopt: moved by Council Member Robinson (motion and amendment recorded on the record); seconder: not specified in transcript.

The city will proceed with Homekey acquisition and conversion steps contingent on continued closure of financing gaps; staff said the acquisition is slated to close in April and conversion to studio units to follow. Council directed staff to return with more detail on Parchester Village options and on requests for Harbor 8’s funding paperwork.