Title
Amend Ordinance to Add Federal HOME-ARP Funding for the St. Catherine Manor Affordable Housing Development Project (Ordinance S-52470) - District 8
Description
Request to authorize the City Manager, or his designee, to amend Ordinance S-51499 to add up to $375,000 in federal United States Department of Housing and Urban Development HOME Investment Partnerships American Rescue Plan (HOME-ARP) Program funds with Housing for Hope, LLC, or a City-approved nominee, for the St. Catherine Manor affordable housing development project. Additionally, request 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. There is no impact to the General Fund.
Report
Summary
On June 6, 2024, the Housing Department issued a HOME-ARP Notice of Funding Opportunity for Non-Congregate Shelter and Rental Housing acquisition, rehabilitation and/or new construction projects to reduce homelessness and increase housing stability. St. Catherine Manor was one of the projects recommended for funding. This project includes 11 units dedicated to serving seniors experiencing homelessness with Area Median Income (AMI) levels of less than 60 percent with food, clothing, health care, and other community program referral supportive services. Eight of the 11 units will serve seniors at 30 percent AMI or below.
On December 4, 2024, City Council approved Ordinance S-51499 to enter into an Affordable Housing Loan Program agreement for up to $3,038,203 in federal HOME-ARP Program funds with Housing for Hope, LLC, or a City-approved nominee, for the St. Catherine Manor affordable housing development project.
The Housing Department is seeking approval for an additional allocation of up to $375,000 in HOME-ARP funding, bringing the total City commitment of HOME-ARP funding to $3,413,203. Housing for Hope, LLC/Catholic Charities requested funding to cover additional project costs for required utility, infrastructure, and street improvements to 14th Way. The total project cost is $3,413,203.
Contract Term
The term of the contract will begin around January 2026 and run for a minimum of 15 years after project completion.
Financial Impact
There is no impact to the General Fund. HOME-ARP is a federally funded program. Funding is budgeted in the Housing Department’s Capital Improvement Program budget. Loan execution is anticipated for Fiscal Year 2025-26 and the loan will be paid to the developer during the construction period.
Concurrence/Previous Council Action
City Council approved Ordinance S-51499 on December 4, 2024, to enter into an agreement for $3,038,203 in HOME-ARP funds with Housing for Hope, LLC for the St. Catherine Manor affordable housing development project.
Location
1431 E. Southern Avenue
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Manager Gina Montes and the Housing Department.