Council Clears Key Step In $3 Million State Loan For Homeless Housing In Novato

NOVATO, CA —The Novato City Council unanimously approved a lease rider allowing nonprofit Homeward Bound of Marin to close on a $3 million state construction loan for supportive housing at its Hamilton campus at their early March meeting.

The rider amends the 2020 ground lease between the city and Homeward Bound, which provides shelter, supportive housing, and employment training to people who are unhoused, for the HUD parcel at Hamilton Field, officials said. The change is required by the California Department of Housing and Community Development so the agency can convert earlier construction‑period financing into a permanent state loan, officials said.

The financing applies to 50 supportive housing units on the parcel, completed in 2024, and the funding is coming from the state of California, not the city of Novato, officials said.

Homeward Bound CEO Paul Fordham said the nonprofit initially used traditional construction financing under HCD’s program and is now closing the long‑term loan. He told councilmembers the organization is currently paying about $18,000 a month in interest, and said that once the state loan closes, those dollars can be redirected to operations.

Councilmember Pat Eklund, who approved of the resolution, described a decades‑long relationship with Homeward Bound at Hamilton. She recalled volunteering when services were provided in a white tent on the site and noted that it has evolved into “multiple buildings and the training and everything else that you’ve been able to put together over these years.” Eklund said.

Assistant City Manager Bill Rose noted that the broader Hamilton campus includes the New Beginning Center shelter, additional supportive housing for veterans and families, and the Next Key Center with employment training programs. The lease rider does not change city ownership of the land.