Title
Additional Federal CDBG Funds for PSA Behavioral Health Agency Affordable Housing Rehabilitation Project (Ordinance S-43277)
Description
Request authorization for the City Manager, or his designee, to amend the Affordable Housing Loan Program Agreement, Contract No. 76876, with PSA Behavioral Health Agency to loan up to $137,000 in Community Development Block Grant (CDBG) funding to assist with rehabilitation costs at 2125 W. Vista Ave., and to take all actions and execute all documents to complete the loan amendments. Authorization is also requested for the City Controller to disburse the CDBG funds over the life of the loan. Additionally, approval is requested to reprogram $137,000 of available CDBG funds from Critical Core City Department Programs to ensure funding for this affordable housing project.
Report
Summary
This award of funds is based on the Housing Department’s Nov. 4, 2016 issuance of a 2016-17 Fall Call for Interest (CFI) that sought proposals for acquisition, new construction, and/or rehabilitation of affordable rental housing to serve homeless or other special needs populations, or projects submitted by certified Community Housing Development Organizations. Eleven applications were reviewed by an evaluation committee and scored based on the criteria outlined in the CFI.
PSA Behavioral Health Agency's application for rehabilitation of an existing affordable housing site was selected by the committee to receive additional funds. All units will serve households with incomes at or below 60 percent of the Area Median Income and all units will serve households with residents with serious mental illness. Award of CDBG funds is contingent on full underwriting, environmental release of funds, commitments of other financing, and availability of federal funds. The overall loan structure will be consistent with the Housing Department's Affordable Housing Loan Program and Underwriting Guidelines. Contract No. 76876 was funded through Ordinance S-23982 in the amount of $207,355 in 1996; with this additional funding the new loan total will be $344,355.
Financial Impact
There is no impact to the City’s General Fund. CDBG is a federally funded program.
Concurrence/Previous Council Action
This item was heard at the Sustainability, Housing, Efficiency and Neighborhoods Subcommittee on Feb.21, 2017 and approved by a vote of 3-0.
Location
2125 W. Vista Ave.
Department
Responsible Department
This item is submitted by Deputy City Manager Deanna Jonovich and the Housing Department.