The Quality Inn on University Avenue could be transformed into 114 units of permanent supportive housing under a $35 million proposal advancing to Riverside's City Council amid business concerns.
The Housing and Homelessness Committee unanimously approved a resolution Monday to submit a joint application with Riverside Housing Development Corporation for up to $35 million in state HomeKey Plus funds to convert the Quality Inn into permanent supportive housing.
The project would transform the hotel at 1590 University Avenue into 114 studio apartments, with 94 units designated for households earning at or below 30% of area median income and 20 units for those at or below 50%.
"This is not a shelter. It's permanent, as the word would suggest. It is the final step in the rungs of the ladder that we've been missing for a long time," said Bruce Kulpa, chief executive officer for Riverside Housing Development Corporation.
The units would remain affordable for 55 years under city monitoring. Fifteen units will be reserved for veterans and 18 for individuals with mobility disabilities.
City Manager Mike Futrell emphasized the project's role in providing a crucial missing link in helping unhoused residents.
"When you look at our efforts to put people back onto a self-sustaining path in housing, it starts with the shelter, then goes to temporary supportive housing, then permanent supportive housing, and then finally into real housing," Futrell said. "There is an acute need for that next step, permanent supportive housing. And right now we have over 200 people on that waiting list."
Michelle Davis from Housing and Human Services reported that 219 individuals are currently awaiting permanent supportive housing in Riverside, with 83 of them aged 55 or older.
The project, estimated to cost $31.7 million, includes on-site case managers, 24-hour security and property management staff living on the premises. Tenants would sign 12-month leases and pay rent, potentially subsidized through Section 8 vouchers.
Ward 2 Councilmember and Housing and Homelessness Committee Chair Clarissa Cervantes told the Gazette that the location is ideal for future residents.
"This is a perfect location given it's on University Avenue which has direct access to public transportation through the Riverside Transit Agency and will be in walking distance from a number of community spaces," Cervantes said. These include "the newly renovated Cesar Chavez Community Center, the new Eastside Library, grocery stores, the Eastside Health clinic and the booming businesses adjacent to this site."
Several business owners expressed opposition, including Beverly Bailey, founder of the nearby Farmhouse Collective.
"Our family invested millions of dollars into this part of Riverside," Bailey said. "In 29 days we've seen a major influx of people and families coming back to this area."
Councilmember Steve Robillard questioned whether the location remains appropriate given recent developments.
"I think the calculation of the Quality Inn might change over the coming years with the success of the Farmhouse. And I don't want to disrupt that success," Robillard said.
Robillard told the Gazette his experience helping veterans transition to housing has shown him that intensive services are crucial for success.
"Many individuals in that position need intensive, ongoing support—far beyond just providing a place to live," Roblar said. "For this project to succeed, it would need guaranteed wraparound services such as 24/7 on-site case management, mental health and addiction treatment, job readiness support, and assistance with daily living skills."
Robillard added that projects work best "at a modest scale, where services are tailored and sustainable. Larger programs often unintentionally attract more people in need than they can serve, which risks overwhelming the system and undermining community confidence."
Committee members acknowledged the need for better business outreach. Councilmember Cervantes apologized for inadequate notice and pledged to meet individually with concerned businesses.
"I absolutely vowed to meet individually with the businesses that have thus far reached out, come to some of the meetings to express some concerns, happy to coordinate with them, to actually have and work with our department team to have a formal presentation," Cervantes said.
Councilmember Sean Mill expressed hesitation about approving the project without more input.
"I'm comfortable with having this discussion to the full, with the full council because I want to hear from all seven of us up here as to what they think. But I'm not comfortable today saying I'm going to put my stamp on this," Mill said.
Despite these concerns, the committee voted to advance the resolution to the full City Council.
Applications for HomeKey Plus, funded through Proposition 1 passed by California voters in March 2024, are due by May 30, with awards expected in June. If approved, the project must be completed within 12 months and would serve individuals who Davis said "have been in our shelters, are ready for housing, but face two to three year waits for affordable housing."
The full City Council will consider the resolution at an upcoming meeting.
City Council will weigh interim city attorney picks. The Housing Committee will review Safe Parking pilot details and a proposal to turn a University Ave hotel into affordable studios for people experiencing homelessness.
Reviewing amendments to the city's Sunshine Ordinance and an appeal to overturn the Planning Commission's denial of a 49-home development on a 9.91-acre Victoria Avenue orange grove site.
