Title
Loan Federal HOME, CDBG, and/or Affordable Housing Funds for 609 Housing (Ordinance S-43280)
Description
Request authorization for the City Manager, or his designee, to enter into an Affordable Housing Loan Program agreement for up to $1,991,241 in federal Community Development Block Grant (CDBG), HOME Investment Partnerships Program (HOME) funds, and/or Affordable Housing Funds with Native American Connections, Inc. (NAC), or a City-approved nominee, and to take all actions and execute all documents to complete the loan. Authorization is also requested for the City Controller to disburse the funds for the life of the contract.
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).
Funding for this project is available from HOME, CDBG, and/or Affordable Housing Funds from Fiscal Years 2016-17 and 2017-18. Project award 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 Underwriting Guidelines for affordable rental housing projects.
609 Housing, location confidential, (District 7), includes the new construction of a 63-unit permanent housing community. NAC, a CHDO, requested $1,991,241 to assist with this project. All units will serve persons with chronic substance abuse with incomes at or below 60 percent of the AMI. Supportive services will be provided by NAC and include educational and vocational opportunities, weekly support groups, recreational and socialization opportunities, life skills, as well as access to outpatient services. Other proposed funding for this project includes Low Income Housing Tax Credit (LIHTC) Equity.
Financial Impact
There is no impact to the General Fund. HOME and CDBG are federally-funded programs and funds are available in the Housing Department's Capital Improvement Program budget. Funding commitments for projects with LIHTC Equity are contingent upon receiving a LIHTC award from the Arizona Department of Housing in the 2017 competitive round.
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
Confidential location, District 7
Department
Responsible Department
This item is submitted by Deputy City Manager Deanna Jonovich and the Housing Department.