Title
Neighborhood Rental Rehabilitation Program Expansion
Description
Request to authorize the City Manager, or his designee, to approve the Neighborhood Services Department's proposed expansion of the Rental Rehabilitation program to focus on anti-displacement, create and preserve affordable housing, and support neighborhood economic development. There is no impact to the General Fund.
Report
Summary
In June 2020, City Council unanimously approved the first-ever Housing Phoenix Plan (Plan) to address housing challenges and needs citywide, and recommend innovative, solution-oriented policies regarding affordability and the preservation of existing housing stock through the Neighborhood Services Department (NSD) administered Rental Rehabilitation Program (Rental Rehab). Rental Rehab facilitates the preservation of naturally-occurring, safe and affordable rental housing for low- and moderate-income tenants by providing financial assistance to rental property owners to complete rehabilitation projects for deteriorating properties. The program focuses on addressing structural and health and safety related standards and criteria to ensure equitable habitability and function of the property, and serves as an anti-displacement tool.
Rental Rehab is funded with Community Development Block Grant (CDBG) dollars and is identified as a primary goal in the 2020-2024 governing Housing and Urban Development (HUD) Consolidated Plan approved by City Council. The recommended expanded Rental Rehab requirements incorporate:
- Single- and multi-family eligible properties, up to 24 units
- Strategically targeted service areas to focus on anti-displacement, create and preserve affordable housing, and support neighborhood economic development
- Affordability periods requiring rents remain at or below Housing and Urban Development's (HUD) fair market level rent for up to 20 years
- Mortgage principal paydown grant to assist property owners meet underwriting criteria
- Increased CDBG project investment limits of $40,000 per unit / $400,000 per project
- Property owner match requirement of up to 25 percent
- Prioritization of sustainable locally-owned projects
The expanded program supports the Housing Phoenix Plan goal of creating or maintaining 50,000 affordable homes by 2030.
Financial Impact
This item will be funded with Community Development Block Grant (CDBG) dollars from the U.S. Department of Housing and Development (HUD); there is no financial impact to the General Fund.
Concurrence/Previous Council Action
This item was recommended by the Land Use and Livability Subcommittee at its Feb. 17, 2021 meeting by a vote of 4-0.
Department
Responsible Department
This item is submitted by Inger Erikson and the Neighborhood Services and Housing departments.