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VALLEJO, CA - In July 2017 the City of Vallejo executed the first of three grant agreements with the US Department of Housing and Urban Development’s (HUD) HOME Investment Partnerships Program to supplement funding for the $49.5 million Sacramento Street Apartments project. Two additional grant agreements were executed in July 2020 and July 2021 to further supplement the City’s contribution to the budget for the 75-unit, permanent supportive housing project.
The City was informed this week that due to delays in the acquisition of the property and construction of the project, as well as a series of administrative errors which occurred from 2019 to early 2021, prior to current management, HUD has determined it will look to the City to return $2,661,641 in awarded grant funding to the HOME Investment Trust Fund.
The City is currently working with HUD and our Federal elected officials to negotiate a repayment method that will have the least impact on City operations and funding, including utilizing unallocated available grant funding as well as unallocated American Rescue Plan Act funds.
“We are frustrated and embarrassed to learn that a series of former management’s missteps on the City’s behalf resulted in the loss of a portion of the grant funding towards this project. While the City is working to reallocate available grant funds to ensure this vital project moves forward to support our vulnerable residents, we are also working to assess the status of all our existing Housing grants in an effort to ensure there were no further oversights under past management. We are committed to continuing to provide housing services to this community and to correct the past errors,” said Assistant City Manager Gillian Hayes.
The funding reallocation and return of the HOME grant funds will not jeopardize the project or delay the project’s expected timeline. The Sacramento Street Apartments project is anticipated to be completed in November of 2022, with full occupancy expected by January 2023.
Information on how to apply for the Section 8 Project-based voucher waitlist, which opens on July 22, at 8:00 a.m., can be found here.
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