Title
Rental Rehabilitation Program Project Award (Ordinance S-48356)
Description
Request to authorize the City Manager, or his designee, to enter into necessary loan agreements with Community Housing Partnership, Inc., and other agreements as necessary, for the completion of construction activities under the Rental Rehabilitation Program at the following five locations: 614 N. 9th St.; 1910 E. Adams St.; 1634 E. Monroe St.; 1638 E. Monroe St.; and 1905 E. Monroe St. Community Development Block Grant (CDBG) funds are available for these contract awards. Further request to authorize the City Controller to disburse funds up to $800,000.
Report
Summary
In March 2021, the City Council approved expanding the Rental Rehabilitation Program to facilitate the preservation of single- and multi-family rental properties. The program focuses on addressing structural, and health and safety codes and standards to ensure properties are habitable and affordable. In this manner, the Rental Rehabilitation Program supports the Housing Phoenix Plan's vision of utilizing innovative and solution-oriented policies to address housing challenges citywide.
Eligible properties include single- and multi-family rental properties of up to 24 units, occupied by, or set aside for, low- and moderate-income tenants. Financial assistance of up to $40,000 per unit, with a maximum project award of $400,000, is available to eligible owners to renovate their deteriorating property.
NSD staff analyze submitted applications monthly for eligibility before they are forwarded to the Rental Rehabilitation Program's review panel. The review panel, which is comprised of City staff and experts in the affordable housing and rental property management industries, evaluates applications (based on owner capacity, management plan and history, project readiness, and financial feasibility) and recommends project awards. The Rental Rehabilitation evaluation panel recommends funding the following five, four-unit properties up to $40,000 per unit, or $160,000 per property, for a total of $800,000.
- 614 N. 9th St.
- 1910 E. Adams St.
- 1634 E. Monroe St.
- 1638 E. Monroe St.
- 1905 E. Monroe St.
These awards, in addition to previously awarded projects, may exhaust the $1 million of CDBG program income reprogrammed by City Council for the expansion of the Rental Rehabilitation Program. Any additional amount will be funded with available current and prior year CDBG funds.
Financial Impact
This program is funded by the Community Development Block Grant, there is no impact to the General Fund.
Concurrence/Previous Council Action
The Community and Cultural Investment Subcommittee recommended approval of this item on Feb. 2, 2022, by a 3-0 vote.
Location
All properties are located in Council District 8.
Department
Responsible Department
This item is submitted by Deputy City Manager Gina Montes and the Neighborhood Services Department.