Title
Additional Federal HOME Investment Partnerships Program Funding for Stepping Stone Phase III (Ordinance S-46673)
Description
Request to authorize the City Manager, or his designee, to increase the federal HOME Investment Partnerships (HOME) Program funding to Stepping Stone Phase III, LP, an Arizona limited partnership, in the amount of $380,000 and enter into or amend any agreements as necessary or appropriate to effectuate the increase. The increased loan funds will result in a total loan amount of up to $1 million, and assist Native American Connections, Inc. (NAC) with the new construction of Stepping Stone Phase III, an affordable multifamily development project. Further request to authorize the City Controller to disburse all funds for the life of the contract. There is no impact to the General Fund.
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, through Stepping Stone Phase III, LP for the development of Stepping Stone Phase III, a 42-unit permanent housing community 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 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.
- This item was recommended for approval at the Land Use and Livability Subcommittee meeting on May 20, 2020 by a vote of 3-0.
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.