Accepts $11.8 million grant, approves agreement, location for 50-units
By Allen D. Payton
LOS BANOS, CA — During their regular meeting on Wednesday, October 2, 2024, the Los Banos City Council voted unanimously to accept the $11.8 million state grant and the location for the 50-unit Permanent Supportive Housing Project for the community’s homeless residents. The agenda item for the additional $2.5 million grant for five additional units was postponed. The council also adopted a new ordinance banning camping and storage of personal items on public property while maintaining two areas for homeless residents to remain along the Rail Trail.
City Employee of the Month
At the beginning of the meeting, Randy Williamson, Water Quality Specialist in the Public Works Department, was recognized as the City of Los Banos Employee of the Month for September. He was presented by Mayor Paul Llanez with a certificate which reads, “In recognition of your outstanding performance and dedicated service to the City of Los Banos and for being named ‘Employee of the Month’ for September 2024.”
Homeless Housing Project Grant Accepted, Location Approved – (See 1:47:30 mark of council meeting video)
As previously reported, earlier this year, Mayor Paul Llanez announced the City had been awarded an $11.8 million grant for permanent supportive housing of the city’s homeless residents. According to the city staff report for agenda item 9 for the meeting, on April 18, 2024, the California lnteragency Council on Homelessness awarded the City of Los Banos Encampment Resolution Fund Round 3 (ERF-3-R) funds in the amount of $11,842,621.00 for a Permanent Supportive Housing Project consisting of fifty (50) units of affordable housing, supportive services, operating subsidies, and administrative costs.” The State requires 50% of ERF-3-R funds be expended by June 30, 2025, 100% of the grant funds be obligated by June 30, 2025, and 100% of the funds be expended by June 30, 2027. Of the awarded amount, $580,601.00 is eligible for administrative costs of the project.
In addition, under agenda item 10A, the council was to consider approving acceptance of an additional $2.5 million grant to expand the homeless housing project by five units from the Central California Alliance for Health. But that item was postponed.
The presentation was provided by the City’s Housing Program Manager Christy McCammond, of the Community and Economic Development Department’s Housing Division, who Director Stacy Souza Elms said “is the subject matter expert” and part of the team that applied for the funding.
McCammond spoke of the responsibilities of the Housing Division saying, “We’re very honored that we’re responsible for developing a city-wide system response to homelessness. The Housing Division offers services of outreach and engagement, case management, housing navigation and connection to services, income, benefits and health care. It is a comprehensive system, and it is a wholistic system and it’s not done alone. We partner with the faith-based sector, independent sector, governmental agencies, non-profit organizations.”
“The Housing Division, in addition to those direct services, looks for opportunities for grant funds…to solve homelessness by developing affordable, permanent supportive housing designated specifically for people experiencing homelessness,” she continued. “We don’t just offer housing. There are case manager and wrap-around services available to the…residents who live in these projects.”
McCammond explained that according to the Point in Time Count, as of January 2024, there were 149 homeless residents in Los Banos with 28 in the City’s emergency shelter system, known as “Bridge Homes” and temporarily placed in local motel rooms.
She mentioned the terms essential housing or essential homes as the new name for affordable housing and said, “Not only do we have a lack of affordable housing for our community members that have income and that are currently housed, but we definitely have a lack of permanent, supportive housing and essential homes.”
The project is intended to address those needs, and the ERF program is intended to “Transition individuals into safe and stable housing, and encourage a data-informed, coordinated approach to address encampment concerns.”
The budget for the three-year grant term includes $9.8 million for construction costs, operating subsidies and impact fees, $580,601 for administrative costs to the City and $1.473 million for personnel, including an onsite program manager, property manager, two service coordinators and one facility maintenance staff member.
“The funds could arrive within thirty days…all at once,” she stated, following council approval. That will be followed signing of the agreement with the development chosen through a competitive bidding process.
“The developer is Anabasis,” McCammond stated. The owner was in the audience for the presentation.
The housing units will be offered on a renewable, one-year, lease basis and the project will have a 55-year deed restriction required by the state to remain as permanent supportive housing during that period.
City staff recommended the housing project be located on a City-owned parcel adjacent to the Rail Trail between Place and Ward Roads.
“Whatever state funding is out there it will be tied to our housing element. This project will help us meet those goals. For the past eight years…we have not been able to meet any of our criteria, our requirements from the state. So, this project is a big shot in the arm for us to be able to facilitate our requirements by the State of California.” – Community and Economic Development Director Stacy Souza Elms
Council Questions and Discussion
Following the presentation by McCammond, Mayor Pro Tem Councilman Kenneth Lambert asked about, “The money. It can only be used for this.”
“The application for the funds was very specific and very comprehensive,” McCammond responded. “The line items that we applied for are directly related to these 50 units of permanent, supportive housing. They cannot be used for anything outside that project’s scope. Additionally, it must be used for people experiencing homelessness and even more specifically, those who have dwelled in an encampment. We cannot use it for Code Enforcement…of enforcement of any kind. It is specifically for the items we applied for.”
“And it will get audited, correct?” Lambert asked.
“Oh, yes, sir,” she responded. “I will be doing internal audits on my own.”
District 3 Councilman Brett Jones then asked, “This is different than bridge housing, right?”
“That is correct,” McCammond stated.
“It’s multiple occupants, highly managed,” he continued. “These are single-family or single occupant dwellings, right?”
“You are correct,” she responded. “Bridge homes are emergency shelter, temporary places…named ‘mini-navigation centers’ which means they’re shelter plus services. The project we’re speaking of tonight…these are permanent housing units…and with services, as well.”
“These have a one-year maximum lease on it, is that right?” Jones then asked.
“Correct. They will come with a one-year lease under the resident’s name,” McCammond explained.
“After the one year, what happens to them if they have not found, say, another source of permanent housing?” the councilman asked.
“So, the residents pay their own rent,” she stated. “So, they could stay there as long as they wanted as long as they were compliant with the terms of their lease.”
“At some time down the road, this initial grant runs out, what’s the long-term plan, say for 10 to 20 years from now?” Jones asked. “Will it be self-funded? I can’t imagine that.”
“Ultimately, the developer will own the property and will be fully responsible for the project,” McCammonds shared. “We anticipate a 55-year deed restriction requirement from the state. The long-term, longevity plan is that like any other developer’s investment in rental properties. So, there will be rental income upon each unit and the developer will assume that risk and the City will not.”
“The services on-site…and the deed restriction will be included in a regulatory agreement that will also be recorded on this project,” she added.
In response to the councilman asking if the deed restriction will be “for specifically low-income, right?” McCammonds said, “Correct.” He then stated, “Because that does affect a lot of parcels. So, parcel selection is very key on this, making sure that you don’t have plans for any future development, at least for 55 years on it.”
Souza Elms then shared, “This particular parcel…it was originally a redevelopment agency parcel. It has been designated since it was obtained…for high-density, affordable housing. So, it does meet that criteria. Those properties that were transferred back over to the City…and we do have to abide by the Surplus Land Act…a part of that plan, though is still abiding by the redevelopment agency’s overall plan which his to remove blight, provide affordable housing…that’s what this property was intended for.”
“So, we’re mandated by the state to provide affordable housing options, and this will help meet those numbers,” Jones stated.
“Absolutely,” responded Souza Elms. She then spoke of the upcoming Regional Housing Needs Allocation requiring different levels of housing based on income saying, “There are more housing units that we are required by the State of California to provide. Whatever state funding is out there it will be tied to our housing element. This project will help us meet those goals. For the past eight years…we have not been able to meet any of our criteria, our requirements from the state. So, this project is a big shot in the arm for us to be able to facilitate our requirements by the State of California.”
In response to another question by Jones, Souza Elms said, “if the developer is in default, the City would take it and sell it to another developer. This developer does have a track record and has been vetted, has done projects in Merced County…so does have a resume that shows that they can perform.”
She then mentioned the “disposition and development agreement that protects the City from any risk.”
Asked “where the money is being spent, specifically,” Souza Elms responded, “the City…is the pass through. We’re the bank. We are paying the construction. When the developer fills those milestones then the project is turned over to them. That will be outlined in the …agreement.”
City Attorney Bill Vaughn weighed in saying, “We’re looking at structuring this like a loan for the 55 years. The loan will be forgiven in increments as we reach those milestones. The City will act like a bank, construction lender to the developer. As the project is built out those funds will be distributed. But the loan and the loan covenants will survive and so, we’ll have some teeth into it and the developer will have the incentive to manage it…for the 55-year period in order to get that loan forgiveness.”
“I wanted to make sure we have the teeth…to take control of it,” Jones added.
Vaughn responded, “If the developer is unable to financially make the project work, say, after 15 or 20 years, the City would be in a position of taking the project back with all the improvements that have been made and try to shop it to another management company or developer.”
“There will be…a number of milestones for this developer in order to get the loan forgiven,” he continued. “Otherwise, they face foreclosure.”
Asked by District 4 Councilwoman Deborah Lewis if the developer is a company, McCammond said, “Yes. I’m proud to say it’s a veteran-owned, local developer who has been awarded at least one Home-Key project in Merced. So, very familiar with this type of project. We were very impressed this person…focuses on housing in this body of work.”
Asked about community outreach and input, McCammond said, “What we’ve begun to do is a good neighbor committee…we also have opportunities to reach out to organizations like the Rotary. We’re working with people within that vicinity…and then focusing on a communication plan and kick-off meetings. We’ve had a couple of those, as well.”
“Now that we’re getting closer…what we’d like to do is expand on that communication plan,” she continued. “And that…plan is multi-faceted…social media…town halls…press releases…reaching people…to listen and to learn.”
Asked by Lewis, “who will be providing the on-site services for the three-year duration,” McCammond responded, “We are recommending…that go out for bid. Because we don’t know what’s in the market and want it to be open and fair.”
“So, those services will start once the first person occupies a unit?” the councilwoman asked.
“Even before,” McCammond stated. “We’ve already begun that work. We need to get people document ready.”
Asked about a “sustainability plan after the three-year program,” McCammond said, “We’ve asked for a proforma from Anabasis. It’s kind of the next phase.”
“I guess I’m really concerned that we’re going to help people through a process for three years and then they just kind of fall off and still need that assistance and maintain the community without losing their ability to have housing,” Lewis stated.
“You do need help afterwards. It is not a simple transition of here’s your key and I’m sure everything will be fine, now,” McCammond shared. “The beauty of this project is that there is a building with people inside of it.”
Regarding the Project Site Map the councilwoman said, “it appears this project is going to be placed in the same area where we had a homeless encampment before.”
“Correct,” McCammond responded. “A portion of that parcel not the entire parcel.”
“So, is there a reason we couldn’t have looked at moving that project a little bit further east…giving a bit more buffer to the senior trailer park?” Lewis asked. “We…received information as recently as this month they were still having problems out there with the encampment.”
“I want to make the distinction…and the good neighbor work that we’re doing…includes the community members in the Rancho,” McCammonds explained. “In addition, my expectation is that neither the buildings nor the homes will be directly behind Rancho.”
Souza Elms then said, “It will have the street, which is Gilbert Gonzales, Jr. Drive which will be extended and then there will be additional buffer, and it will have on-site management with units. This is a managed housing project.”
“I hope…that does give them more space and that there’s going to be some barriers around this new unit other than a wooden fence that’s going to help the trailer park community feel a little more secure,” Lewis added. “I’m hoping with outreach, this trailer community is going to feel more comfortable about this project coming there.”
Jones then said, “I think I can assume it’s going to look better than some neighborhoods we have right now in Los Banos without management that are privately owned. I think this is probably going to be the best-case scenario for, other than a vacant field for the residents at the Rancho Mobile Home Park and the apartment complex, nearby. Because it’s going to have eyes and ears on it at all times.”
“I would agree. It is the difference and it’s what the state intended,” McCammond responded. “Without the services and the oversight, on-site we have a much different outcome. It is a requirement of the grant.”
Llanez then said, “I’m not going to use the word ‘concerned’. I’m going to use the word ‘excited.’ Everything that you guys have done, you two have just absolutely killed it in what you’ve done and what you’ve accomplished in just the short time that you’ve been with the City…you two found the money. There’s a lot of work to do.”
“50 units, correct?” he asked. “Will there be other buildings as part of the scope of work?”
“Correct,” she responded. “Yes. There will be at least two buildings. One for services. One for property management. There will also be some lovely community area, landscaping. I’m confident that it’s going to be a very beautiful neighborhood. We’re going to put our whole heart into this.”
Llanez then thanked the developer, “for doing this project. This is the kind of thing when people get together and say, ‘we need to fix something. Let’s all work together to fix it’…and I want to applaud Chief Reyna, as well. This has been a battle for him for a very long time. My expectations are however we can educate the community…I also want to emphasize we have so many commuters…whatever virtual things we can do for them…I’m open to any and all suggestions.”
“This is just the beginning. This is page one, chapter one,” Souza Elms said. “Once we’re in an agreement with the developer…that’s when we will be having public hearings, a site plan review process, Planning Commission, we’ll be able to look at the elevations…to see the site. There will be lots of opportunity for public involvement.”
“We got a lot of work to do…so, thank you,” Llanez added.
On a motion by Mayor Pro Tem Lambert to authorize the acceptance of the grant, approve the location and direct staff to move forward with the site proposed and seconded by Jones, it passed on a unanimous vote.
Agenda Item 10 which included an additional $2.5 million grant for five additional housing units for the project was postponed.
“It is unlawful and a public nuisance for any person to camp, occupy camp facilities, build, maintain or establish an Encampment, occupy an Encampment, use camp paraphernalia, or store or maintain personal property in or on Public Property or Waterways at any time, unless specifically authorized or permitted by the City, in writing.”
Anti-Camping Ordinance (See 2:35 mark of council meeting video)
City Attorney Bill Vaughn and Police Chief Ray Reyna provided the staff report on the ordinance to ban homeless encampments in the city.
“We don’t really have a comprehensive policy dealing with camping in public spaces,” Vaughn said. “The Supreme Court case…the Grants Pass case, it gives the green light to jurisdictions to enforce…particularly encampment in public spaces…as long as they’re enforced for all and not just focused on homeless status.”
Violation of the ordinance is a misdemeanor with a fine and eventually, jail time.
Vaughn said he and Chief Reyna have looked extensively at ordinances throughout the state. “We think we have found the sweet spot for the City,” he said. “It will allow for the encampments on the Rail Trail…with a permit from the City for those activities that would include overnight camping and entertainment.”
“We believe this ordinance would pass constitutional muster,” he continued. “It’s just one tool…to keep public spaces open and clean…sanitary and open to all.”
Reyna said, “The enforcement side is just one of many approaches to the homeless. We’re trying to remain in compliance and put together an approach that is compassion. The City of Los Banos goes to great lengths to deal with homelessness.”
The 2024 Point-In-Time there were 121 unsheltered in Los Banos, he shared.
Jones asked about an individual he encountered at his business. “Do we call the police?”
“Just call us and we’ll evaluate it,” Reyna responded. “It just depends on the situation.”
This ordinance addresses these issues on public property.
“On private property you still have…rights and they’re trespassing,” Jones stated. He then asked about people busing in homeless.
“I hear those rumors, too. We’re not really seeing that. I’m not saying that’s not happening,” Reyna stated. “We really don’t see anything that corroborates. Most of our homeless have ties to Los Banos. Most of the time they’re just not welcome there anymore…substance abuse, breaking the rules.”
“The vehicle code does allow us to take actions for those that are not registered…RV’s that are inoperable that are very difficult to tow. In Los Banos, I’m going to give a shout out to our tow companies. They’re doing that for us and taking a loss. They live here and doing something about it.”
“We have defined camping as camping in cars,” Vaughn added. “For someone…obviously living out of their car, we can cite them and move them along.”
“You’ll notice the term in the ordinance reasonable…a lot,” Reyna explained. “The reasonable resident…councilperson…if they think it’s a violation and contact us, we can take action.”
“We have a designated camp area. We still have difficulty getting everyone to go in there,” Jones continued. “Some are further down from there. Will this help you guys address that?”
“Certainly. The City currently has two encampments. This would help us address those living outside of those areas,” Reyna responded.
Lewis asked about storage of personal property on public property that poses a security risk to the public and why the word “health” was left out of there.
“The Whereases are…not as specific and precise,” Vaughn responded. “I think it’s more addressed in the body of the ordinance than the Whereases. We haven’t ignored those dangerous subject items, as well and can take those items without notice. If it’s something dangerous, contaminated…it can be carted away, immediately.”
Lewis asked further about why a person has to admit they’re camping in a vehicle and if it’s an “escape clause”.
“Again, we have the reasonableness test,” Reyna said. “But that’s just one of the criteria…one of the questions we’re going to ask.”
“To me it just seems odd to put that in there,” Lewis stated. “I just happen to disagree with it. Most of these people are going to have a public defender and they’re going to pull this out of our ordinance.”
“It’s designed for the officer and the court to take into the totality…of what’s going on, what’s around them,” Vaughn said. “I don’t think that’s going to exonerate them.”
“Sometimes they admit to it. Sometimes they don’t,” Reyna stated.
Lewis then asked about camping shall be deemed to occur whether or not a full night has been occupied at a particular location. Occupy at any location. It sounds like there’s a timeline on here.
“What that’s trying to do is…say a Code Enforcement Officer comes across a person setting up a tent, setting up a stove…whether or not they’ve been there overnight…it’s the actual act of setting up a camp, leaving their items in the camp,” Vaughn said. “So, we didn’t have to prove someone spent the night or two hours in a particular location…to meet our definition of camping. They don’t have to fall asleep…lay down…cook a meal. They’re camping…if they pile all their personal properties in a particular location.”
“We wanted to make it clear camping doesn’t require staying overnight,” he added.
“Well, it seemed awkward to me,” Lewis stated.
“We didn’t want to give them the defense that they didn’t spend the night,” Vaughn responded.
“I don’t understand there aren’t any provisions in here to give any city manager…if somebody needs a permit…not give authority to the city manager to give a permit. That’s not a part of his job.
In response to a question from Mayor Llanez, Reyna said, “If this does pass, there will be training for our staff.”
Jones then moved approval of the ordinance, it was seconded by Lambert and passed 5-0.
The adopted ordinance reads, “It is unlawful and a public nuisance for any person to camp, occupy camp facilities, build, maintain or establish an Encampment, occupy an Encampment, use camp paraphernalia, or store or maintain personal property in or on Public Property or Waterways at any time, unless specifically authorized or permitted by the City, in writing.”
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Contact info: Christy McCammond (503) 856-5915 [email protected]
