Title
Additional Federal HOME Investment Partnerships (HOME) Program Funding for Stepping Stone Phase III
Description
This report requests the Land Use and Livability Subcommittee recommend City Council approval to increase Native American Connections, Inc. (NAC) federal HOME Investment Partnerships (HOME) funding award by $380,000 and take all actions and execute all documents to complete the loan. The increased loan total of up to $1 million will assist with the new construction of Stepping Stone Phase III, an affordable housing multifamily development project. Authorization is also requested for the City Controller to disburse funds for the life of the contract. There is no impact to the General Fund.
THIS ITEM IS FOR CONSENT ACTION.
Report
Summary
On March 21, 2018, City Council approved an award of $620,000 in HOME funds to NAC, a nonprofit Community Housing Development Organization (CHDO), through Stepping Stone Phase III, LP for the development of Stepping Stone Phase III, a 42-unit permanent housing community exclusively targeting very-low income chronically homeless individuals.
Additional HOME funds are being requested to fill a project financing gap identified by NAC which will allow them to utilize funds from the project to assist with a loss of organizational operating income due to the COVID-19 outbreak. All units will serve chronically homeless individuals with incomes at or below 60 percent of Area Median Income (AMI) with seven units serving 50 percent AMI. Supportive services will be provided by NAC and will include benefits assistance, educational and vocational opportunities, family reunification, medical care, recreational and social programs, life skills, support groups and access to NAC's outpatient services. The total development budget is $11,454,012. Other funding for this project includes Low Income Housing Tax Credit (LIHTC) equity, seller carryback note, deferred developer fee and various other sources.
Financial Impact
There is no impact to the General Fund. HOME is a federally-funded program.
Concurrence/Previous Council Action
Original funding was approved on March 21, 2018 by City Council through Ordinance S-44398.
Location
1325 N. 14th St.
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Housing Department.