Modesto to seek state money to buy, convert motel into homeless housing. How many units?
Modesto is teaming up with an affordable housing developer to purchase a North Ninth Street motel and convert it into permanent housing with services through Project Homekey, the state initiative to house people who are homeless or at risk of homelessness.
The City Council on Tuesday is expected to approve applying with Fresno-based RH Community Builders to the California Department of Community Development and Housing for $17 million in Project Homekey funding.
The project’s total cost is $23.2 million, according to a city report. That covers acquiring and renovating the Travelers Motel and such other costs as an operating subsidy for the project and relocating the people who now live at the motel, according to the report.
The report states the project would provide 54 units of permanent housing, with about two-thirds for homeless youth and the remaining for anyone who is homeless. The report does not define homeless youth or provide an age range. The services include case management, mental health services and connections to other service providers.
California released what is called a notice of funding availability March 29, saying it has $736 million for Project Homekey’s third round.
The NOFA states $43.3 million of that has been set aside for projects in the San Joaquin Valley (which includes Modesto) as well as $75.8 million for projects that target homeless youth and $73.6 million in discretionary funding. Homeless youth can include a child, youth or current or former foster care youth as old as 25, according to the NOFA.
Project Homekey grants are not competitive, but the state encourages applicants to submit their requests as soon as possible because of the limited funding. The state will fund a project as long as its application scores high enough and funding is available. An applicant will know within 60 to 90 days of applying whether the state will fund its project.
In scoring applications, the state looks at such factors as an applicant’s track record in developing and operating similar projects, whether the proposed project serves people who are chronically homeless and-or young people who are homeless or at risk of homelessness and a project’s proximity to such services as public transportation, grocery stores and pharmacies.
RH Community Builders states on its website it has received three Project Homekey grants to convert motels.
Modesto and its nonprofit partners were awarded two grants in Project Homekey’s second round in 2022.
The grants were $1.7 million for the purchase of a newly constructed seven-unit apartment building for Stanislaus County Behavioral Health and Recovery Service clients and $3.9 million for the purchase and conversion of a Ninth Street office building in downtown into 14 apartments for young people 18 to 25 years of age.
The city report states that in addition to the $17 million in Project Homekey funding, Modesto would lend RH Community Builders nearly $2.3 million of the U.S. Housing and Urban Development funding it receives and would receive nearly $1.8 million from the Stanislaus Community System of Care — a group of homeless service providers, including the city — for the project.
The report states Modesto has preliminary approval from local Medi-Cal providers for $2.15 million from a state program to cover the cost of relocating the people who now live at the Travelers Motel. The report states that number is 38 households.
The Travelers Motel manager said in an interview last week that she is concerned about what will happen to the people who live at her motel if the project becomes a reality. The manager, who declined to give her name, said about 40 of the motel’s rooms are occupied by long-term guests. She said the motel’s other rooms are not occupied.
The woman said some of them have lived at Travelers during the nine years she and her husband have managed it. She declined The Bee access to the motel’s residents for interviews. The property includes the Kickin’ Boots bar, but the manager said it is closed.
Public records list the owner of the Travelers Motel as MRVK Hospitality Group in Sloughhouse in Sacramento County. A request for comment made last week through a family member was not returned.
The City Council meets at 5:30 p.m. in the basement chambers of Tenth Street Place, 1010 10th St.
