San Bernardino County has committed up to $5 million for the Redlands Housing Corp. to support the potential acquisition and preservation of a 98-unit facility that houses and offers supportive services to residents experiencing homelessness.
The Board of Supervisors in a 5-0 vote without discussion Sept. 22 green-lighted the Community Development and Housing Department to distribute funds from the county’s Permanent Local Housing Allocation. The apartment building at 1675 Industrial Park Ave. is known as the county’s Redlands Homekey Facility, a reference to the state program that provides local governments with funding to address homelessness.
The permanent supportive housing complex has 98 studio apartments for individuals who experienced homelessness as well as offering them access to case management, behavioral health support, life-skills development and referrals to community resources, according to the county. The conditional commitment includes $4.3 million for eligible acquisition and preservation costs and $700,000 for an operating reserve keep the property financially stable over the long term.
The total acquisition cost is estimated at $13 million, with the city of Redlands funding the costs that exceed the county’s commitment, county officials reported.
The property was formerly known as Step Up in Redlands and was originally developed through a partnership involving the city, Step Up on Second Inc. and Shangri-La Industries LLC, using funding awarded through Homekey, according to a county staff report.
“Following Shangri-La Industries LLC’s default on its obligations under the state’s Homekey program, in December of 2023, the resulting foreclosure, and litigation with the state, the city established the Redlands Housing Corp., a nonprofit public benefit corporation, to acquire and preserve the property for continued operation as permanent supportive housing.”
The city and RHC are negotiating a sale agreement with the current owner of the property, according to the staff report, which also noted that “the county’s proposed conditional funding commitment would demonstrate local support and strengthen the city’s position in the negotiations, helping facilitate RHC’s acquisition and continued operation.”
Officials said no county funds will be disbursed until Community Development and Housing completes “due diligence” and the board approves the funding and regulatory agreements.
“Because the Property remains subject to foreclosure-related and litigation conditions affecting ownership stability, the requested Board action is limited to a conditional commitment of County funding,” staff reported.
The supervisors’ adopted resolution demonstrates that “county funding may be available to support the acquisition if the transaction is determined to be feasible, but it does not authorize execution of a county funding agreement or permit the disbursement or deposit into escrow of county funds.”
State housing officials will review the sale agreement and return to the county board for approval “before any county funds are advanced or disbursed,” according to the report.
If the developer does not move forward, the county’s commitment expires Sept. 30, 2027.
