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Title:
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American Rescue Plan Act Community Land Trust Program - Request for Award (Ordinance S-49891)
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Title
American Rescue Plan Act Community Land Trust Program - Request for Award (Ordinance S-49891)
Description
Request to authorize the City Manager, or his designee, to enter into an agreement to provide $5 million in American Rescue Plan Act (ARPA) funds for Newtown Community Development Corporation to serve as a Community Land Trust (CLT) Administrator and to take all actions and execute all documents to complete the agreement. Further request to authorize the City Controller to disburse all funds for the life of the agreement. There is no impact to the General Fund.
Report
Summary
On Feb. 13, 2023, the Housing Department issued a Request for Proposal (RFP) seeking proposals from qualified organizations to be the Administrator for a CLT Program. The CLT Administrator will acquire properties, rehabilitate homes, and then sell the homes to first-time, low-income homebuyers and serve as the long-term property steward.
In a typical CLT model, the administrator acquires a property, rehabilitates the home, and then sells the home to income-eligible homebuyers. The land remains in a trust to ensure long-term affordability. A land use restriction agreement outlines the affordability requirements, and any future sales of the home must adhere to those requirements.
The following CLT requirements will be met:
All homes will be made available to first-time homebuyers at or below 80 percent Area Median Income, as defined by HUD annually.
The Declaration of Affirmative Land Use Restrictive Covenants will have a term of 99 years and list the City as the beneficiary.
A maximum subsidy of $200,000 per home is allowed through this grant.
Procurement Information
On April 4, 2023, one proposal was received and determined to be responsive and responsible. The proposal was reviewed by the evaluation committee comprised of two City staff members and one staff member from a local municipality. The proposal was evaluated on a 1,000-point scale based on the following criteria: Experience; Proposed Budget, Approach and Timeline; Current and Future Capacity; and Plan for Providing Support Services.
The evaluation committee recommends to award Newtown Community Development Corporation.
Financial Impact
This program is funded by the ARPA, and there is no impact to the General Fund.
Concurrence/Previous Council Action
On June 16, 2020, the Phoenix City Council approved the Housing Phoenix Plan, which included Initiative 7 - Expand Efforts to Preserve Existing Affordable Housing Stock and implement a CLT Program.
On June 7, 2022, the Phoenix City Council approved the City's ARPA Strategic Plan for the second tranche, which included an allocation of $5 million for a CLT Program.
Department
Responsible Department
This item is submitted by Deputy City Manager Gina Montes and the Housing Department.