Title
Transfer of Santa Fe Springs Multi-Family Community to City's Affordable Housing Portfolio (Ordinance S-44148)
Description
Request authorization for the City Manager, or his designee, to approve Phoenix Residential Investment Development Effort (PRIDE) to transfer ownership of Santa Fe Springs, a multi-family community, to an instrumentality of the City in the form of a nonprofit corporation or a limited liability corporation managed by the Housing Department. Further request authorization for the City Manager, or his designee, to execute any and all documents and agreements and take any and all other actions necessary or appropriate to carry out the purposes of this item. Further request authorization for the City Controller to disburse up to $15,000 to create the instrumentality and transfer the property. There is no impact to the General Fund to transfer or operate Santa Fe Springs.
Report
Summary
PRIDE is a private nonprofit, non-stock corporation created in 1989 to assist the Housing Department's efforts to create and enhance affordable housing communities within the City of Phoenix. In 2010, PRIDE purchased a dilapidated 310-unit apartment community known as Santa Fe Springs. To date, PRIDE has invested approximately $13.5 million of HOME Investment Partnerships Program (HOME) and Neighborhood Stabilization Program (NSP) funds to acquire and rehabilitate this affordable housing community which mostly serves residents whose income is at or below 50 and 60 percent of Area Median Income (AMI). As a result of PRIDE's investment and management, this formerly blighted property is now crime-free certified, occupancy has increased from 77 percent to 95 percent, and the property is generating revenue to sustain its operations. With the successful rehabilitation of Santa Fe Springs, PRIDE intends to transfer ownership of the property to an instrumentality managed by the Housing Department, and begin focusing on other opportunities to support the Housing Department and further the mission of providing quality affordable housing within the City of Phoenix.
The Housing Department concurs with this transfer and believes that incorporating Santa Fe Springs into its current Affordable Housing Portfolio will provide streamlined property management and long-term high quality affordable housing for the community's residents.
The Housing Department seeks authorization to proceed with all actions necessary or appropriate to execute the transaction including the following:
1) Create an instrumentality of the City of Phoenix and/or a limited liability company of which the instrumentality will be the managing member to function as the ownership entity for Santa Fe Springs.
2) Amend and transfer all loans made to PRIDE for the acquisition and rehabilitation of Santa Fe Springs to the instrumentality. The Housing Department is committed to maintaining the existing HOME and NSP affordability restrictions and covenants for the length of the required affordability period.
3) Execute loan documents, enter into contracts, and/or execute title or other documents required to legally transfer the property.
4) Take all other actions necessary or appropriate, including disbursing Affordable Housing and/or PRIDE funds in an amount not to exceed $15,000 to create the instrumentality and transfer Santa Fe Springs.
Financial Impact
There is no impact to the General Fund. Funds are available in the Housing Department's Affordable Housing Fund to create the instrumentality and/or transfer the property, if needed.
Location
1717 W. Glendale Ave.
Council District: 5
Concurrence/Previous Council Action
This item was heard at the Sustainability, Housing, Efficiency, and Neighborhoods Subcommittee on Nov. 28, 2017, and approved by a vote of 3-0.
Department
Responsible Department
This item is submitted by Deputy City Manager Deanna Jonovich and the Housing Department.