Title
Rental Rehabilitation Program Project Awards
Description
This report requests the Community and Cultural Investment Subcommittee recommend City Council approval of the Neighborhood Services Department Rental Rehabilitation Program's rental property project award recommendations.
THIS ITEM IS FOR DISCUSSION AND POSSIBLE ACTION.
Report
Summary
On March 17, 2021, the City Council approved expanding the Rental Rehabilitation Program to facilitate the preservation of naturally occurring, safe and affordable single- and multi-family rental housing for low- and moderate-income tenants by providing financial assistance to rental property owners to complete renovation projects on their deteriorating property/properties. The program focuses on addressing structural, safety, and health related standards to ensure the property is habitable and maintains its affordability, which serves both as an anti-displacement and economic development tool for neighborhoods. 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 and its goal of creating and preserving affordable housing citywide.
The Neighborhood Services Department launched the expanded Rental Rehabilitation Program on June 30, 2021, in targeted areas across Phoenix. The program provides financial assistance, through Community Development Block Grant (CDBG) funds, of up to $40,000 per unit, with a maximum project award of $400,000. Eligible properties include single- and multi-family rental properties of up to 24 units, occupied by, or set aside for, persons at or below 80 percent area median income. On a monthly basis, staff evaluate applications for eligibility and completeness before the review panel's application evaluation. The Rental Rehabilitation Program's review panel is comprised of City staff and external affordable housing/rental property management industry experts; and is tasked with recommending project awards.
Since program launch, four complete applications have been received, followed by the program's review panel evaluation on Sept. 16, 2021. Applications were evaluated for owner capacity, property management and management plan, project readiness, and financial feasibility. The recommendation for Rental Rehabilitation project award is for up to $120,000 to fund a three-unit multi-family property located at 2912 E. Roeser Rd. Final project cost will be determined after completion of property inspection and environmental clearance, which will not exceed the maximum program award of $40,000 per unit, or $400,000 per project.
Financial Impact
There is no impact to the General Fund. These programs are funded through Community Development Block Grant funds.
Department
Responsible Department
This item is submitted by Deputy City Manager Gina Montes and the Neighborhood Services Department.