Title
Additional Funding for Choice Neighborhoods Housing Developments (Ordinance S-53034) - District 8
Description
Request to authorize the City Manager, or his designee, to allocate up to $12.5 million from the Housing Department funding sources including federal HOME Investment Partnerships (HOME) Program, Neighborhood Stabilization Program (NSP), Public Housing funds, Choice Neighborhoods Program Income and other affordable housing funds. Additionally, to take all necessary actions and execute all documents for the Edison-Eastlake Choice Neighborhoods mixed-income housing developments. Further request authorization for the City Treasurer to accept and the City Controller to disburse all funds related to this item for the life of the agreement(s). There is no impact on the General Fund.
Report
Summary
Choice Neighborhoods (CN) is a federal initiative through the U.S. Department of Housing and Urban Development (HUD) that is designed to transform distressed neighborhoods and public housing into mixed-income neighborhoods linking housing and neighborhood improvements with appropriate services, transportation and access to jobs. In July 2018, the City of Phoenix was awarded a $30 million Choice Neighborhoods Implementation Grant to revitalize the Edison-Eastlake Community (EEC) bounded by the I-10 Freeway on the north and east, 16th Street on the west, and the Union Pacific Railroad on the south. In 2023 and 2024, the Housing Department applied for and was awarded $12.5 million in CN Supplemental Grants to further support the development of replacement housing in conjunction with the Transformation Plan for the EEC. These additional funds will be used for the redevelopment of the City’s former A.L. Krohn Homes and Sidney P. Osborn public housing sites that will result in approximately 475 brand new units of mixed-income housing within the EEC. Funding may also be used to support the CN homeownership project which will provide approximately 44 additional units. In total, more than 1,000 units of mixed-income housing will be built as part of the Housing Department’s CN redevelopment efforts, in addition to the neighborhood beautification and improvement projects.
Financial Impact
There is no impact on the General Fund. Funding is available from the federal HOME, NSP, and Public Housing Programs, and other affordable housing gap funds budgeted in the Housing Department’s Capital Improvement Plan budget.
Concurrence/Previous Council Action
On January 24, 2024, City Council authorized an application to HUD for a $2.5 million Choice Neighborhoods Supplemental Grant for the EEC (Ordinance S-50501).
City Council authorized implementing additional Choice Neighborhoods Program resources, initiatives and program amendments through Ordinance S-49244 including the $10 million Supplemental Grant on December 14, 2022.
On October 4, 2017, through Ordinance S-43959, City Council authorized applying for and implementing a $30 million HUD Choice Neighborhoods Implementation Grant for the EEC, that also included approval to apply for and accept grants and to expend matching funds, in-kind and other funding sources to support and implement the grant.
Location
Edison-Eastlake Choice Neighborhoods Community (bounded by the I-10 Freeway on the north and east, 16th Street on the west, and the Union Pacific Railroad on the south)
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Manager Gina Montes and the Housing Department.