Title
Housing Department Capital Improvement Program Update
Description
This report provides the Economic Development and Housing Subcommittee with an update on the Housing Department's Five-Year Capital Improvement Program (CIP) planned for 2024-29. There is no impact to the General Fund.
THIS ITEM IS FOR INFORMATION ONLY.
Report
Summary
Each year, the Housing Department updates its Five-Year CIP in coordination with planned redevelopment programs and feedback from the Public Housing Resident Advisory Board, the Affordable Housing Development Community, and other stakeholders. The primary sources of funds for the next five years are the 2023 General Obligation (GO) Bonds, U.S. Department of Housing and Urban Development’s (HUD) Choice Neighborhoods Grant funds, HUD HOME Investment Partnership Program - American Rescue Plan Act (HOME - ARP) Grant Fund, HUD HOME Investment Partnership Program (HOME) Grant funds, HUD Public Housing Capital Fund Program (CFP), Housing Department Affordable Housing fund and Senior Housing Improvement funds. Federal funding is dedicated for specific qualifying projects. The total amount of funding for the next five years is $144,895,776. See Attachment A for details.
The 2023 GO Bond program, passed by voters November 2023, is dedicated for two distinct projects to create and preserve homes as supported by the Housing Phoenix Plan (HPP). The preservation of affordable housing units will support capital improvements for City-owned properties, while the creation of affordable housing units will serve to bridge the gap and complete the city’s development commitment in the Edison-Eastlake community.
The HUD Choice Neighborhoods (CN) Grant funds are designed to support locally driven solutions for transforming distressed neighborhoods, using place-based strategies to address the interconnected challenges for poor quality housing, access to quality educational programs, poor health, high crime and lack of capital. The CN funds support the on-going demolition of 577 units of obsolete public housing and development of more than 1,000 units of affordable mixed-income housing in the Edison-Eastlake community.
The HUD HOME - ARP grant was awarded as one-time fund in 2021 to help communities address homelessness and qualifying populations by producing or preserving affordable housing, tenant-based rental assistance supportive services, and/or purchase and development of non-congregate shelter.
HOME funds are received from HUD through a formula grant each year for a variety of housing activities based on local needs to serve low- and very low-income families. The Housing Department uses these funds to help private sector developers bridge the gap in financing affordable housing projects in Phoenix. The Housing Department issued a Call for Interest (CFI) to award HOME funds to private developers seeking gap financing for construction costs. Awards for the projected HOME funds will be made via annual CFI processes. Generally, awards of up to $1-2 million per project are made and the number of awards is dependent on the amount of the annual allocation from HUD.
The Housing Department receives capital funds from HUD for the development, modernization, and financing of public housing developments and improvements. CFP is based on a formula distribution for use in public housing communities. These funds will be used for public housing Rental Assistance Demonstration (RAD) projects and public housing modernization, including both rehabilitation and redevelopment of multifamily properties and senior communities.
The Housing Department Affordable Housing fund is used for its affordable housing portfolio and is subject to fund availability.
The Senior Housing Improvement funds are used for the Sunnyslope Manor and Fillmore Gardens senior properties and subject to fund availability.
Financial Impact
There is no impact to the General Fund. All capital projects are funded via 2023 GO Bonds, federal monies or through the department's Affordable Housing fund.
Department
Responsible Department
This item is submitted by Deputy City Manager Gina Montes and the Housing Department.