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Novato council approves lease rider to help Homeward Bound close $3 million state construction loan for 50 supportive housing units
Summary
The council adopted a resolution authorizing a lease rider to amend the 2020 ground lease with Homeward Bound for the HUD parcel at Hamilton Field, enabling the nonprofit to obtain a $3,000,000 construction‑financing loan from the California Department of Housing and Community Development; approval was unanimous among members present and remains subject to final review by the city manager and city attorney.
The Novato City Council voted on March 10 to adopt a resolution approving a lease rider that amends the 2020 ground lease between the city and Homeward Bound of Marin for the HUD parcel at Hamilton Field (APN 157‑970‑07). Councilmembers said the rider will allow Homeward Bound to close a $3,000,000 construction‑financing loan from the California Department of Housing and Community Development (HCD).
City staff framed the rider as a narrowly tailored amendment that does not rewrite the original ground lease but enables the county nonprofit to obtain state financing to finalize construction funding for 50 supportive housing units completed in 2024. Katie Hahn (principal management analyst) told council the loan is state financing, not a city loan, and said final execution of documents would be subject to the city manager’s and city attorney’s approval.
Paul Fordham, CEO of Homeward Bound, clarified that the countywide service numbers cited during the presentation include multiple Homeward Bound sites (not only the Novato campus) and explained the grant and loan timing: Homeward Bound was awarded state grant funds in 2019 but the state’s structure requires interim traditional financing during construction; the state loan closes when construction is complete. Fordham said Homeward Bound is carrying roughly $18,000 per month in interest while closing financing and urged timely council action to reduce carrying costs.
Councilmember Eklund moved the resolution; Mayor Pro Tem Jacobs seconded. Laura, the city clerk, took roll call: Eklund — Aye; Councilmember Kargil — Aye; Councilmember O’Connor — absent; Mayor Pro Tem Jacobs — Aye; Mayor Farrak — Aye. The motion passed. Staff noted the approval is subject to final city manager and city attorney review of the lease‑rider documents before signatures are executed.
The council’s action completes local consent steps necessary to allow Homeward Bound to finalize the state construction loan and reduces the nonprofit’s financing costs so more funds can go to operations and services for veterans, families and adults experiencing homelessness.
