Antioch Council expected to finalize decision on state funding for hotel conversion to veteran, homeless housing project
Will also vote on a 3% pay raise for police officers, Street Light & Landscape Maintenance District assessments, natural gas company’s appeal to reopen pipeline and recognize 60 years of Antioch-Chichibu Sister City relationship
By Allen D. Payton
During their meeting on Tuesday night, July 28, 2026, the Antioch City Council will again discuss state funding for the Homekey+ California Supportive Housing (CSH) Mahogany Housing Project. It is expected they will vote to either accept or reject the $34.9 million grant which requires matching City funds to create 84 units of permanent supportive housing for veterans and homeless individuals in Antioch and from throughout the county.
In addition, the council will also vote on a 3% pay raise and other contractual matters for police officers, the annual Street Light & Landscape Maintenance District assessments, the California Resource Pipeline Company’s appeal to reopen the natural gas pipeline, recognize 60 years of Antioch-Chichibu Sister City relationship with this year’s visiting delegation and honor the late and former City Clerk Florence “Chickie” Rundall who passed away on June 11th.
Before the regular meeting begins at 7:00 p.m., the Council will hold a closed session at 6:00 p.m. to discuss “Initiation of Litigation”, as the agenda item is simply described.
Homekey+ CSH Mahogany Housing Project
During their meeting on June 23rd, which lasted past midnight, after receiving public comments on both sides of the issue, the Council postponed a decision on the Homekey+ funding until tomorrow night’s meeting. Then on June 29th, the Council held a study session to get their questions answered regarding the project and the funding.
According to the staff report for agenda Item 7, the Council has two options.
“Option A – Reaffirm Continued Participation and Proceed with Implementation Receive the report; acknowledge the additional due diligence conducted since the June 29, 2026, Study Session; reaffirm the City’s continued participation as a Homekey+ co applicant and the funding commitments previously approved under Resolution No. 2025/201; direct staff to continue working with the California Department of Housing and Community Development (HCD), California Supportive Housing (CSH), and project partners to negotiate and finalize the most favorable financial and operational terms reasonably available to the City, including opportunities to reduce the City’s long-term financial commitments where feasible; and proceed with execution of the Homekey+ Standard Agreement and associated project documents consistent with the authority previously granted by the City Council.”
“Option B – Rescind Prior Authorization and Withdraw from the Project Receive the report and direct staff to rescind the City’s prior authorization under Resolution No. 2025/201, notify HCD that the City will not execute the Homekey+ Standard Agreement, and withdraw the City from continued participation as a Homekey+ co-applicant.”
Background
On average, the state and city funds for the project, combined, would total $41.75 million or about $500,000 per unit over the first five years and approximately $54.4 million or $640,000 per unit over the full 15-year period.
According to the City staff report for the June 23rd meeting, “consistent with the approved Homekey+ application and prior City Council authorization, the City identified a proposed $750,000 contribution to support acquisition and rehabilitation costs associated with the project. The proposed contribution is reflected in the City’s Five-Year Consolidated Plan and Annual Action Plan. Funding for this contribution is included in the proposed FY 2026/27 Housing Successor budget.
Following Council direction at their meeting on May 22, 2025, the City applied for the Homekey+ funding. “The project application assumes ongoing operating assistance averaging approximately $1.2 million annually during the initial five-year period,” for a total of an additional $6 million. “If such funding levels were maintained over the full fifteen-year period, the total potential City contribution could be approximately $18.75 million, from the General Fund.”
“The City would receive the benefit of approximately $34.9 million in State Homekey+ funding,” awarded in May 2026, “for acquisition and rehabilitation of the project. The City would assume ongoing administrative, monitoring, and compliance responsibilities associated with participation in the program.”
“While the City was a co-applicant and recipient of the award, the City has not executed the Homekey+ Standard Agreement with HCD and has not formally accepted the grant funds. Because the…Agreement has not been executed, the City currently has no contractual obligation to participate in the project. The City would not assume the reporting, compliance, monitoring, or administrative responsibilities associated with the Homekey+ Program.” However, if the Council declines the grant funds, “the City could experience reduced competitiveness for certain future discretionary housing funding opportunities.”
Council Gets Questions Answered During nJune 29th Study Session
During a special study session on Monday, June 29, 2026, that lasted three-and-a-half hours, the Antioch City Council asked a variety of questions of staff regarding the proposed Homekey+ California Supportive Housing (CSH) Mahogany Housing Project at the Antioch Inn & Suites, formerly Comfort Inn.
In attendance to answer questions was Jamie Schecter, Homeless Services Chief with Contra Costa Health, Housing and Homeless Services, who oversees the County’s Continuum of Care, she mentioned two other Homekey projects, Delta Landing Interim Housing Program at the former Motel 6 in Pittsburg and another in San Pablo. She also spoke of a similar upcoming project in Richmond the County is working with. Also in attendance were Richmond City Manager Shasa Curl and her Community Development Director, Lina Velasco, who has worked on that city’s Homekey project, who provided a presentation about it.
Mayor Pro Tem and District 3 Councilman Don Freitas asked, “The City of Richmond is actually the owner of this property?”
“Yes, we will own the property,” Velasco responded. “However, during the term of the ground lease, the lessee will own the improvements. They’ll be responsible for all the maintenance and the improvements.”
“The wrap-around services, are they provided from City staff of Richmond or are they contracted out?” he asked.
“They’re contracted,” Velasco stated.
“How is occupancy determined?” Freitas asked.
“We cannot be limited to Richmond residents but there is a prioritization that’s considered,” she explained. “However, we’ll serve countywide.”
Mayor Ron Bernal asked if any of the funding pays for staff time and consultants. Velasco responded, “Some of the Homekey funding has predevelopment costs. However, it’s not reimbursing, like, the time I take to write an annual report and expenditure report. So, that’s part of what we’ve been absorbing outside of a loan for the rehab. But there were some early draws for the legal fees. The developer is paying for the architectural fees, the permit fees. Those costs were included in the grant award.”
“During the 55-year term of the project, will there be any funding for staff from the Homekey,” Bernal pressed further.
City Manager Curl responded, “I would say, ‘no’ and I think it’s important for the Antioch City Council to understand, our contribution of $10.3 million is an advance from the General Fund in excess of whatever was in our Housing In Lieu fund. So, as that is replenished that will pay back the City.”
“This is the first time we’ve done something of this magnitude,” Curl continued. “So, the city council has a third-party, neutral analysis that was separate from staff. In addition, the project looked at through the construction management lens, especially the change orders, especially with inflation. So, having that third party has been extremely helpful for staff working with the building official.”
“What is your program during that 55-year period for making sure the building is properly being maintained and when there is a problem…how are they handled?” Freitas asked.
“Our plan is to do annual inspections annually,” Velasco stated. “We do within our budget have a capital reserve for issues…including turnover.”
“How do you define success over a 55-year period?” Freitas then asked.
“For me…this housing type is very important and difficult to produce,” she responded. “I think making sure the property is well-maintained also, well-operated. Hoping the tenants that come in are not losing their housing or being expelled due to lease violations…making sure supportive services include tenancy sustaining services. I think those are the big things and just making sure it doesn’t become a nuisance property for the City.”
Freitas then asked about 24-hour security costs.
“So, we are talking about that. We do have that in our budget,” Velasco explained. “We may look at that overtime based on how the property is operating and the need.”
District 2 Councilman Louie Rocha asked if the occupancy would be “100% unhoused that you will be serving?”
“Yes. When we wrote our application it was for targeting the chronically homeless,” she stated. “There is a lega definition in our regulatory agreement with HCD (California Department of Housing and Community Development).”
“Is it a similar focus with individuals, youth and veterans?” Rocha asked.
“If they fit the definition,” Velasco said. “But unlike Homekey plus, you have more target definitions.”
“With your case managers is there a ratio that you have identified?” the councilman asked.
“Currently our budget is two case managers for the property,” she responded for 48 units.
“With Mahogany, it’s 100% just for those being served,” Rocha asked his fellow councilmembers. Torres-Walker nodded in agreement.
“Without those ERF funds (State Encampment Resolution Funds) and the Homekey, I think it would have been a heavy lift for the City,” Cass stated. “So, I think between that and the CDBG funds it was really important to get all of the partners to the table. For me, the price per unit is what makes it an acceptable public policy solution…because the cost per unit is less than if we were building a new unit. That was part of the rationale and because it takes so long to get a new unit online.”
Staff Answer Council Member Questions
Council members asked staff some of the outstanding questions not answered in the staff report for the agenda item.
Regarding the hotel’s current financial condition facing foreclosure, Freitas asked, “If the property owner sells the property with those debts, how is the City made whole?”
He mentioned “$400,000 or more in delinquent taxes.”
“And the water,” said Acting City Manager Ana Cortez.
“The City of Antioch is a co-applicant – said Assistant City Attorney Kevin Kundinger
“So, we’re just paying bills,” Freitas stated.
“Yes,” Kundinger replied. “I think the decisions are made collaboratively.”
Freitas asked for the breakdown of the $34.9 million in state funds.
The project developer said, “The capital award is the purchase price $27,500,00. Other costs are about $7 million.
“Approximately $700,000 is for operation and the $1.2 million from the City,” Freitas stated.
The councilman then asked about the veterans’ units.
In response to a question by Mayor Ron Bernal, the developer said there will be no senior-designated units.
“Will there be security 24/7?” Freitas asked.
“Yes,” the developer responded.
(For additional details see related article)
Streetlighting & Landscape District Assessments
Under Item 5 on the agenda, the Council will vote on the annual assessments for six Streetlighting & Landscape Districts throughout the city. They annual rates range from $8 in District 9, Zone 3, the Lone Tree Way District to as high as $331 per year in District 2-A, Zone 10, the Black Diamond Ranch units of the Citywide District, depending on the individual parcel.
The Public Works Department’s Parks & Landscape Division maintains 34 City parks and a wide variety of landscaped areas that enhance the aesthetic of our community. This includes:
- City Parks and open space areas
- Medians and right-of-ways
- Trails and cul-de-sacs
- Coordinate and oversee the annual weed abatement project
Street lighting is maintained by the Street Maintenance Division.
3% Pay Raise for Antioch Police Officers
Under Item 8, the Council will vote on the Tentative Agreement between the City of Antioch and the Antioch Police Officers’ Association that will include a 3% Cost of Living Adjustment (COLA) for Fiscal Year 2026-27 at a cost of $661,430 and other matters. According to the City staff report, “No COLA or additional increase to uniform allowance was including in the adopted FY26/27 budget, thus requiring a budget amendment.” The previous Tentative Agreement covered the period of Sept. 1, 2021 – Aug. 31, 2025. If the council approves the agreement, a Memorandum of Understanding (MOU) will be prepared to replace the agreement and require another vote by the council.
In addition to the 3% COLA, the Tentative Agreement includes the following:
- Increase to four floating holidays in a calendar year.
- Travel meal reimbursement increase to $25.00 for breakfast, lunch or dinner.
- Lateral Police Officer and Dispatcher new hire vacation credit of one week upon employment.
Plus, increases to the uniform allowance, adjustments to benefits, retirement and vacation, sick leave and bereavement leave language defined and/or updated, as well as updates to the department’s grievance procedure.
See additional details of the Tentative Agreement, here.
Meeting Details
Following the 6:00 p.m. Closed Session meeting, the regular meeting will begin at 7:00 p.m. inside the Council Chambers at City Hall, 200 H Street in Antioch’s historic, downtown Rivertown. It can be viewed livestream on the City’s website or the City’s YouTube channel.
See separate article on the Natural Gas Pipeline Encroachment Permit Application Appeal, later.
the attachments to this post:
SL&LMD lists
Antioch & APOA logos & Homekey+ & hotel
