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Broadway Village reaches full occupancy; HUD rescinds project-based vouchers while housing authority manages shortfall
Summary
Assistant city manager reported Broadway Village reached full lease-up and grant compliance; staff said HUD denied execution of a project-based voucher contract for Sonoma Estates because funding was not in place, and the housing authority is operating under a HUD shortfall that restricts new project-based voucher activity.
Assistant City Manager Jillian Hayes told the commission the Broadway Village project at 2441 Broadway has opened and reached 90% occupancy on Dec. 24, 2025 and 100% occupancy by New Year’s Eve; she said HCD informed staff the project’s grant is in full compliance. ‘‘There are currently 52 people housed in the 47 units,’’ Hayes said, and noted Shelter Inc. operates the facility with project-based vouchers funding program services.
Hayes also updated the commission on the navigation center, reporting about 105 people were housed there at the time of the meeting and that the center functions as a warming center with on-site operators.
On Sonoma Estates, Hayes said the SB 330 application was deemed complete but the project previously lost project-based vouchers after HUD required confirmed funding before executing voucher contracts. Hayes said the vouchers were not executed because the project could not secure all funding in time and HUD rescinded the award; the project is pursuing other funding, including tax credits, while entitlements move forward.
Director Jones and assistant city manager Hayes described a broader HUD funding context: the housing authority is operating under an action plan to manage a HUD-declared shortfall and is restricted from engaging in new project-based voucher initiatives until HUD lifts those constraints. Director Jones said housing authorities nationwide were notified of a funding level at about 99% (to be prorated), and the agency is meeting with its shortfall team to determine how to allocate limited funding without terminating current assistance.
Why it matters: Broadway Village’s lease-up increases local supportive housing capacity while the HUD shortfall and rescinded project-based vouchers limit the authority’s ability to expand project-based options and could constrain development pipelines until funding authorization is resolved.
Follow-up: Staff said they will report back with exit and outcome metrics for the navigation center and continue quarterly reporting on Sonoma Estates’ funding progress.
