Project Homekey Update

OCTOBER 2023


FREQUENTLY ASKED QUESTIONS

Q: What is Project Homekey?
A: Project Homekey is a program by the state of California that provides funds to local government agencies to purchase and rehabilitate housing, including hotels, motels, and vacant apartment buildings, and convert them into permanent, long-term housing for people experiencing or at risk of homelessness. The program was launched in June 2020 to protect vulnerable Californians from the COVID-19 pandemic. Funding comes from the state's allocation of federal Coronavirus Aid Relief Funds and the state's General Fund.

Q: Did Stanton apply for any Project Homekey projects?
A: Yes, in partnership with the County of Orange and Jamboree Housing Corporation, the City submitted applications for three projects, and all three projects were selected for funding.

  • Aurora Vista (formerly Riviera Motel at 11892 Beach Blvd.)
  • Iluma (formerly Stanton Inn & Suites at 7161 Katella Ave.)
  • Clara Vista (formerly Tahiti Motel at 11850 Beach Blvd.)

 Q: Did the City pick and choose the hotels/motels for Project Homekey?
A: No. Although the City may have made recommendations to the County, each hotel/motel owner was approached independently regarding sale of their property.

 Q: Who provided funding for the three Project Homekey projects?
A: The State, the County, and the City are all contributing funding towards the projects. Due to funding credits received by the developers for Stanton Inn, the City’s funding contribution was significantly reduced. The City’s total fiscal impact across the three projects, excluding staff time, is approximately $5,959,150.

 

Aurora Vista
(Riviera Motel)
21 units

Iluma
(Stanton Inn)
72 units

Clara Vista
(Tahiti Motel)
60 units

State

$6,070,000

$7,920,000

$9,600,000

County

$1,532,983

$1,085,000

$2,400,000

City

$2,500,000
(Housing Authority)

$147,950
(Housing Authority)

$3,311,200
(Housing Authority)


Q: When are the three Project Homekey projects anticipated to begin accepting tenants?
A: Iluma (Stanton Inn) is anticipated to begin accepting tenants in October/November 2023. Clara Vista is anticipated to begin accepting tenants in November/December 2023. Aurora Vista is anticipated to begin accepting tenants in early 2024.  

Q: Who will be eligible to be placed in the three Project Homekey projects?
A: Eligibility is based on the following categories in conjunction with affordability.

 

Aurora Vista
(Riviera Motel)
21 units

Iluma
(Stanton Inn)
72 units

Clara Vista
(Tahiti Motel)
60 units

Permanent Supportive Housing

X

X

X

Mental Health Services

X (9)

X

 

Multi Family

 

X

X

Veterans

X (10)

 

X (10)

 

 

Clara Vista
(Riviera Motel)
21 units

Iluma
(Stanton Inn)
72 units

Aurora Vista
(Tahiti Motel)
60 units

30% or less of Adjusted Median Income (AMI)

20 units

21 units

18 units

60% of less of AMI

 

35 units

29 units

80% or less of AMI

 

14 units

11 units


Q: Will the three Project Homekey projects be counted towards the City’s Regional Housing Needs Allocation (RHNA)?
A: Yes. All units will support the City in meeting its RHNA for very low income housing.

 Q: Are other Orange County cities participating in Project Homekey?
A: During the first round of funding, Stanton was the only Orange County city to seek funding. During the second round of funding, Stanton, Costa Mesa and Huntington Beach each submitted funding requests for one project.  

 Q: What is permanent supportive housing?
A: Permanent supportive housing combines affordable housing with services for individuals and families with disabilities and/or a lengthy history of homelessness.

Q: How do you become eligible for permanent supportive housing?
A: To be eligible, a tenant must be in a Coordinated Entry System (CES). Designed by HUD, this system coordinates services and housing for the homeless, and requires counties to adopt a standard assessment, prioritization, and referral process with a focus to ensure fair and equal access to services. CES prioritizes the most vulnerable or at-risk homeless individuals or families for permanent housing placements first.  

 Q: Does the City have any control over who is placed in the three projects?
A: Staff is currently working with the County and Jamboree to provide feedback regarding the placement prioritization and process and is also seeking a reporting model that will provide accountability and transparency. 

 Q: Are sex offenders eligible for permanent supportive housing?
A: No, registered sex offenders are not entitled to live in the properties based on HUD eligibility requirements.

 Q: Are criminals eligible for permanent supportive housing?
A: Criminal background checks are run on household members ages 18 and over to verify eligibility for residency. While a criminal background isn’t an automatic disqualification to housing, criminal backgrounds are taken seriously and considered in relation to pre-determined tenant selection and approval criteria.

 Q: Does permanent supportive housing include an onsite property manager?
A: Most properties typically have an onsite property manager. The three properties in Stanton are expected to have an onsite property manager.

 Q: Are illegal substances allowed onsite?
A: No, illegal substances are not permitted and usage is grounds for criminal prosecution and eviction.

 Q: Does Project Homekey replace transient occupancy taxes (TOT) for converted hotels/motels?
A: No, there is no replacement provided to cities for TOT revenues.