TITLE:
title
APPROVE A COMMITMENT OF $850,000 OF LOW/MODERATE INCOME HOUSING ASSET FUNDS TO CM MERCY HOUSE CHDO, LLC, FOR THE CONVERSION OF THE MOTEL 6 INTO A HOMEKEY PROJECT LOCATED AT 2274 NEWPORT BOULEVARD IN COSTA MESA
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DEPARTMENT: CITY MANAGER'S OFFICE
PRESENTED BY: NATE ROBBINS, NEIGHBORHOOD IMPROVEMENT MANAGER
CONTACT INFORMATION: LORI KARAGUEZIAN, SENIOR MANAGEMENT ANALYST, 714-754-5347, Lori.Karaguezian@costamesaca.gov
RECOMMENDATION:
recommendation
Staff recommends the City Council:
1. Approve an appropriation and allocation of $850,000 in Low/Moderate Income Housing Asset Funds to CM Mercy House CHDO LLC for development of the Motel 6 Project Homekey Housing Project.
2. Authorize the City Manager or their designee to execute the Funding Agreement and all associated documents, as needed, to bring the project to fruition and create an estimated 88 units of permanent affordable housing.
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BACKGROUND:
Project Description
The Motel 6 Housing Project ("Motel 6" or "Project") is located at 2274 Newport Boulevard, Costa Mesa. The Project site is approximately 1.16 acres, which includes the building currently occupied by Motel 6 Costa Mesa, consisting of 94 guest rooms for commercial/hospitality use. The proposed Project contemplates the conversion of the motel property into 88 units of permanent affordable housing. The project will include 30 units for Veterans at-risk of or experiencing homelessness, 10 units for households at-risk of or experiencing homelessness that are eligible to receive Mental Health Services Act (MHSA) assistance, and the remaining 47 units will be set-aside for Costa Mesa senior citizens (age 62+) earning 50% or less of the Area Median Income (AMI). The Project has secured funding commitments from and is an outstanding collaboration between the State Homekey Program, County of Orange and City of Costa Mesa.
Homekey Program
The California Department of Housing and Community Development's Homekey Program ("Homekey"...
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