Title
Choice Neighborhoods Supplemental Grant Application (Ordinance S-50501)
Description
Request to authorize the City Manager, or his designee, to apply for a U.S. Department of Housing and Urban Development's (HUD) Choice Neighborhoods Supplemental Grant for up to $2.5 million or the maximum award, for the Edison-Eastlake Community (EEC), and to enter into program contracts and amendments as needed to implement the grant. Further request to authorize the City Treasurer to accept and the City Controller to disburse all funds for the life of the grant.
Report
Summary
Choice Neighborhoods is a federal initiative through HUD that is designed to transform distressed neighborhoods and public housing into mixed-income neighborhoods, linking housing and neighborhood improvements with appropriate services, transportation, and access to jobs. In July 2018, the City of Phoenix was awarded a $30 million Choice Neighborhoods Implementation Grant to revitalize the EEC.
Recently, HUD recognized that many of the current Choice Neighborhoods Implementation grantees were struggling to absorb significant cost increases resulting from the COVID-19 pandemic and related supply chain disruptions and has offered Supplemental Grant opportunities to assist with these unforeseen expenses. Supplemental Grant funds may only be used for the construction of replacement housing in mixed-income developments. In 2023, the Housing Department applied for and was awarded a $10 million Choice Neighborhoods Supplemental Grant to further support the development of replacement housing in conjunction with the Transformation Plan for the EEC.
HUD has now released a new Notice of Funding Opportunity for previously awarded Choice Neighborhoods Implementation Grantees, allowing for an application for an additional $2.5 million to support housing redevelopment. Applications are due to HUD on March 4, 2024. Together with the previously awarded Choice Neighborhoods funding, these funds will be used for the redevelopment of the City's former A.L. Krohn Homes and Sidney P. Osborn public housing sites that will result in approximately 475 brand new units of mixed-income housing within the EEC. In total, more than 1,000 units of mixed-income housing will be built as part of the Housing Department's Choice Neighborhoods redevelopment efforts, in addition to the neighborhood beautification and improvement projects.
Contract Term
If awarded, the Housing Department will execute the appropriate contract agreement(s) with HUD.
Financial Impact
There is no impact to the General Fund.
Concurrence/Previous Council Action
On Dec. 14, 2022, City Council authorized implementing additional Choice Neighborhoods Program resources, initiatives, and program amendments via Ordinance S-49244 including the $10 million Supplemental Grant.
On Oct. 4, 2017, through Ordinance S-43959, the City Council authorized applying for and implementing a $30 million HUD Choice Neighborhoods Implementation Grant for the EEC, that also included approval to apply for and accept grants and to expend matching funds, in-kind and other funding sources to support and implement the Grant.
Location
Edison-Eastlake Choice Neighborhoods Community (bounded by the I-10 Freeway on the north and east, 16th Street on the west, and the Union Pacific Railroad on the south).
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Manager Gina Montes and the Housing Department.