City Council Agenda
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Memo to: |
Manteca City Council |
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From: |
Toni Lundgren, City Manager |
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Prepared by: |
Vielka Guarascio, Homeless & Housing Services Manager |
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Date: |
September 16, 2025 |
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Subject: |
Sponsor a Homekey+ Application for The Way Veterans Village Project in Collaboration with The WellNest Group |
Recommendation:
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Adopt a resolution to Sponsor a Homekey+ Application for The Way Veterans Village Project in Collaboration with The WellNest Group; authorize the City of Manteca to serve as the Lead Applicant to sponsor a joint application with The WellNest Group to the California Department of Housing and Community Development (HCD) in response to the Homekey Notice of Funding Availability (NOFA), authorize the City and The WellNest Group to jointly apply for Homekey+ grant funds in a total amount not to exceed $5,000,000, and authorize the City Manager, or designee, to execute all documents necessary to submit the application and, if awarded, to carry out all actions required to accept and administer the funds
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Background:
The State of California, through the Department of Housing and Community Development (HCD), administers the Homekey+ Program to expand housing opportunities for individuals experiencing or at risk of homelessness.
In collaboration with The WellNest Group, The Way, and Keystone Housing Foundation, the City of Manteca has an opportunity to sponsor a Homekey+ application for The Way Veterans Village Project. The project will provide permanent supportive housing specifically for veterans, one of the most vulnerable populations in the San Joaquin Valley.
The proposed development will consist of 12–15 modular homes designed to be fully accessible for mobility, hearing, and vision disabilities. The project site, a vacant parking lot of The Way Church located at 715 E. North Street, offers existing infrastructure connections and will be improved with grading, utility hookups, pathways, green space, and drought-tolerant landscaping. The design encourages neighborhood interaction while ensuring privacy, incorporates sustainable stormwater management practices, and provides safe, energy-efficient lighting.
Keystone Housing Foundation will serve as both Program Manager and Master Leaseholder, overseeing housing for 12 or more veterans. Residents will qualify for subsidized rents at 30% AMI, with additional rental assistance provided through local partners to ensure affordability within HUD limits.
The site offers close access to essential services, including grocery stores, public transportation, and four nearby medical facilities within a half-mile radius, such as the Delta Vet Center, a dedicated VA provider for veterans and their families. This combination of affordable housing and proximity to supportive services advances the program’s core goal: ensuring that veterans, regardless of income status, have access to stable, long-term housing.
As new construction, The Way Veterans Village will not result in any displacement or relocation of participants. The program is designed to serve veterans currently experiencing homelessness, as well as those at risk, including individuals who are underhoused, unsuitably housed, or facing eviction. Guided by a behavioral health–driven Housing First model, the program will implement an “Alternative to Evictions” policy, which provides step-down options into alternative programming rather than removal when higher-level support is needed. Eligibility requires that participants: 1) being a veteran as defined by the Veterans Administration, 2) have an active diagnosis of severe mental illness, substance use disorder, or co-morbidity, and 3) fall in one or more of our predefined housing insecurity categories. More descriptive program participation details are available in the Supportive Services Plan.
Projected Operating Budget
Income Projections 12-units
Monthly Rent Income 18,780
Annual Gross income 225,360
Less: Vacancy Rate (5%) (11,268)
Net Annual Income 214,092
Projected Development Budget
New Construction
Sitework 710,446
Structures 1,836,000
Insurance 10,000
Total New Construction 2,556,446
A/E and Supervision 164,447
Subtotal Forward 2,718,893
Legal Fees 75,000
Contingency 304,889
Other Project Costs 624,151
Total Project Cost 3,487,394
Fiscal Impact:
There is no impact to the General Fund associated with co-sponsoring the Homekey+ application for The Way Veterans Village Project. If the application is approved, staff will return to City Council with a budget appropriation item to establish the necessary accounts and ensure funds are tracked in compliance with program requirements. If the application is not approved, The WellNest Group, The Way, and Keystone Housing Foundation will be responsible for pursuing alternative funding sources, and no fiscal obligation will fall to the City.
Documents Attached:
Attachment 1 – Resolution