Title
Additional Federal CDBG Funding for Labor's Community Service Agency (Ordinance S-43278)
Description
Request authorization for the City Manager, or his designee, to amend the Affordable Housing Loan Program Agreement, Contract 79570, with Labor’s Community Service Agency (LCSA) to loan up to $60,600 in Community Development Block Grant (CDBG) funding to assist with rehabilitation costs at 10201 N. 11th Ave., and to take all actions and execute all documents to complete the loan amendment. Authorization is also requested for the City Controller to disburse the CDBG funds over the life of the loan. Additionally, approval is requested to reprogram $60,600 of available CDBG funds from Critical Core City Department Programs to ensure funding for this affordable housing project.
Report
Summary
On Nov. 4, 2016, the Housing Department issued a Call for Interest seeking proposals for the acquisition, new construction, and/or rehabilitation of affordable rental housing for the Affordable Housing Community Priorities approved by City Council on Nov. 2, 2016, and other affordable rental housing projects. The Priorities are: 1) Projects that focus on homeless or other special needs populations and that provide appropriate services; 2) Projects submitted by qualified Community Housing Development Organizations (CHDO); 3) Rehabilitation projects owned by non-profit developers and currently or previously funded by the City; and 4) Down payment and closing cost assistance for households earning up to 80 percent of the Area Median Income (AMI).
LCSA’s project includes the rehabilitation of an existing affordable housing site. All units will serve households with incomes at or below 50 percent of the AMI, and all units will serve homeless persons and/or persons with disabilities. Award of CDBG funds is contingent on full underwriting, environmental release of funds, commitments of other financing, and availability of federal funds. The overall loan structure will be consistent with the Housing Department's Affordable Housing Loan Program and Underwriting Guidelines. Contract 79570 was originally funded through Ordinances S-25132 and S-42985 in the amount of $197,795; with this additional funding, the new loan total will be $258,395.
Financial Impact
There is no impact to the City’s General Fund. CDBG is a federally-funded program.
Concurrence/Previous Council Action
This item was heard at the Sustainability, Housing, Efficiency and Neighborhoods Subcommittee on Feb. 21, 2017 and approved by a vote of 3-0.
Location
10201 N. 11th Ave.
Department
Responsible Department
This item is submitted by Deputy City Manager Deanna Jonovich and the Housing Department.