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City closes out Homekey‑funded Elm Avenue rehab; two units rented to qualifying veterans

Twentynine Palms City Council · March 24, 2026
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Summary

City staff reported completion of acquisition and rehabilitation of four Elm Avenue units under a $713,175 HCD Homekey/CDBG grant; two units are rented to qualifying veterans, one referral is pending, and the units are restricted for 55 years under affordability covenants.

City staff presented a closeout report on the Elm Avenue Homekey project and the council approved closing documents on March 10.

Abigail Hernandez, city staff, said the city acquired four residential units (6937–6943 Elm Avenue) under a $713,175 grant from the Department of Housing and Community Development and completed minor and major rehabilitation so the units meet housing standards. "The 4 units are covered by a housing assistance payment contract between the city and the Housing Authority of the County of San Bernardino," Hernandez said, and noted two units have been rented to qualifying veterans with case management to be provided through the VA.

Hernandez explained relocation assistance, construction contracting and cost details: the city awarded a construction contract to K and C Construction Inc. for $189,500; total project costs projected at about $821,000 with $713,175 from HCD and the remainder from general funds and city sources; all grant funds were reported as expended and the city submitted its final reimbursement request for $136,920 for the improvement portion. The units are subject to a 55‑year affordability restriction recorded February 26.

The council opened and closed the public hearing on the project (no public speakers) and approved the project closeout by motion and roll call (5–0). Staff said they expect to meet HCD closeout requirements and to have at least three of the four units rented to qualifying households prior to final documentation submission.