Title
Housing Department Capital Improvement Program Update
Description
This report provides the Economic Development and Equity Subcommittee with an update on the Housing Department's Five-Year Capital Improvement Program (CIP) planned for Fiscal Years (FY) 2023-28. 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 Public Housing Capital Fund Program (CFP), HOME Investment Partnership Program (HOME) Grant Funds, Choice Neighborhoods Implementation Grant, HOME Investment Partnership Program - American Rescue Plan Act (HOME - ARP) Grant Fund, Housing Department Affordable Housing fund and Senior Housing Improvement funds. The federal funding is dedicated for specific qualifying projects. The total amount of funding for the next five years is $85,085,225. See Attachment A for details.
The Housing Department receives capital funds from the U.S. Department of Housing and Urban Development (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.
HOME funds are received from HUD through a formula grant each year for a variety of housing activities based on local need 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 issues a Call for Interest (CFI) to award HOME funds to private developers seeking gap financing for construction costs. Awards for the projected HOME funds for FY 2023-28 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 HUD Choice Neighborhoods (CN) Implementation Grant is 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 will be used to demolish 577 units of obsolete public housing and develop more than 1,000 units of affordable mixed-income housing in the Edison-Eastlake Community.
The HOME - ARP grant was awarded by HUD as one-time funding in 2021 to help communities address homelessness and qualifying populations by production or preservation of affordable housing, tenant-based rental assistance supportive services, and/or purchase and development of non-congregate shelter.
The Housing Department Affordable Housing Fund is used for its affordable housing portfolio and are subject to fund availability.
The Senior Housing Improvements is used for the Sunnyslope Manor and Fillmore Gardens Senior properties and are subject to fund availability.
Financial Impact
There is no impact to the General Fund. All capital projects are funded via 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.