Title
Authorization to Amend Federal HOME Program Affordable Housing Loan Agreement, Contract 130000 (Ordinance S-50521)
Description
Request for City Council to grant authorization for the City Manager, or his designee, to amend the federal HOME Investment Partnerships Program (HOME) Acquisition and Rehabilitation Loan Agreement, Contract 130000, between the City of Phoenix and Oasis TC, LLC, or a City-approved nominee, to increase the number of City HOME units to 46 units and increase the period of affordability by five years in exchange for a forgiveness of the outstanding interest on the loan up to $950,000. Authorization is also requested for the City Manager, or his designee, to execute all necessary documents.
Report
Summary
Contract 130000, was executed on Nov. 9, 2010, for $3,195,000 of HOME funds to assist with the rehabilitation of the 60-unit Oasis on Grand located at 1534 and 1538 W. Roosevelt St., and 1501 NW Grand Ave. The loan agreement currently secures 38 City HOME units serving households whose income does not exceed 60 percent of the Area Median Income (AMI).
The current owner, Oasis TC, LLC, is in the process of selling the property and to facilitate the transaction, the parties have agreed to increase the public benefit by extending the period of affordability by five years to 2057, along with providing the City an additional eight HOME units (for a total of 46 affordable housing units serving those at 60 percent AMI or below) in exchange for a forgiveness of the outstanding interest up to $950,000.
Concurrence/Previous Council Action
On Sept. 21, 2011, through Ordinance S-38190, City Council authorized an additional $195,000 in HOME program funding to Oasis TC, LLC for the rehabilitation of the Oasis on Grand adaptive reuse affordable housing complex.
On Jan. 20, 2010, through Ordinance S-36825, City Council authorized a loan of up to $3 million in HOME funds for use in the rehabilitation of the Oasis Motel into a 60 unit affordable housing project with at least 48 percent of the units rented to persons with incomes at or below 60 percent AMI.
Financial Impact
There is no financial impact to the General Fund. HOME is a federally funded program.
Location
1534 and 1538 W. Roosevelt St., and 1501 NW Grand Ave.
Council District: 4
Department
Responsible Department
This item is submitted by Deputy City Manager Gina Montes and the Housing Department.