Title
Additional Federal HOME Program Funding for Red Mountain Place Apartments Affordable Housing Development (Ordinance S-48405)
Description
Request to authorize the City Manager, or his designee, to increase Hancock Place Apartments, LLC federal HOME Investment Partnerships (HOME) funding award by up to $250,000 and amend any and all agreements as necessary or appropriate to effectuate the increase in funding. The increased loan funds will result in a total loan amount of up to $750,000, which will assist with COVID-19 pandemic related cost overruns during the construction of Red Mountain Place, an affordable housing multifamily rental development project. Further request to authorize the City Controller to disburse all funds related to this item. There is no impact to the General Fund.
Report
Summary
On April 17, 2019, the City Council approved an award of $500,000 in HOME funds to G.A. Haan Development, LLC, through Hancock Place Apartments, LLC for the development of Red Mountain Place Apartments, a 50-unit affordable permanent housing community located at 913 N. 32nd St.
Additional HOME funds are being requested to fill a project financing gap identified by G.A. Haan Development, LLC which will allow them to utilize project funds to assist with cost overruns due to the COVID-19 pandemic. In exchange for the additional funding the owner has agreed to increase the public benefit by providing the City an additional two HOME units, increasing the total HOME units from five to seven. All seven City HOME units will serve households at or below 40 percent Area Median Income (AMI). All units in the development will serve persons with incomes at or below 60 percent of the AMI. Supportive services will be provided by Who I Am Foundation, an organization that provides employment services, financial management, tutoring and computer training.
The total development budget is $10,549,852. Other funding for this project includes Low Income Housing Tax Credit equity and a deferred developer fee.
Financial Impact
There is no impact to the General Fund. HOME is a federally funded program. Funds are available in the Housing Capital Improvement Program.
Concurrence/Previous Council Action
Original funding was approved on April 17, 2019, by the City Council through Ordinance S-45577.
Location
913 N. 32nd St.
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Manager Gina Montes and the Housing Department.