Title
Affordable Housing Pilot Off-Site Infrastructure Program Project Award (Ordinance S-49871)
Description
Request to authorize the City Manager, or his designee, to enter into necessary loan agreements with Chicanos Por La Causa, Inc. (CPLC) and other agreements as necessary, for the completion of construction activities under the Affordable Housing Pilot Off-Site Infrastructure Program at 316 W. Broadway Road. Community Development Block Grant (CDBG) funds are available for this award. Further request to authorize the City Controller to disburse funds up to $300,000.
Report
Summary
On June 16, 2020, the Phoenix City Council approved nine policy initiatives listed in the Housing Phoenix Plan with a goal of creating or preserving 50,000 homes by 2030. As outlined under the fifth initiative for building innovations and cost saving practices, the Housing Department, in partnership with the Neighborhood Services Department, developed the Pilot Off-Site Infrastructure Program to assist affordable housing developers with cost prohibitive and unanticipated off-site infrastructure costs.
Eligible projects include unanticipated off-site infrastructure improvements, undertaken on property in public ownership, that support the development of new affordable housing that will be rented or sold to low- and moderate-income households. Eligibility criteria for the program include the following:
- The improvement is required by zoning stipulation(s) and/or permit review;
- The improvement is off-site and within the public right-of-way or on publicly owned land;
- The improvement supports the construction of new affordable housing units, in either new or existing developments;
- The improvement meets a CDBG National Objective;
- The improvement costs are not supported by current financial assistance, grants or loans;
- The improvements can be completed within 18 months from Phoenix City Council approval; and
- The improvement was not anticipated as a result of typical zoning, site planning or initial site permit review requirements.
The program will provide up to $300,000 of CDBG funding as a deferred construction loan to an affordable housing developer to cover eligible costs. Applications for the program are provided on a referral basis, based upon recommendation from Housing, Neighborhood Services or Planning and Development department staff's review of proposed development projects meeting program criteria. Applications are accepted on a rolling basis and are evaluated based on the total percentage of new affordable housing units supported by the off-site improvement, description of the proposed unanticipated improvement scope, project feasibility and project cost.
After recommendation from the Neighborhood Services Department, application materials were provided to CPLC in July 2022 and submitted for evaluation in March 2023. CPLC’s project will provide 235 units for families earning below 80 percent Area Median Income. CDBG funds will be used to improve Pueblo Avenue to the north of the project site. The existing street is approximately 25 feet in width. Per a rezoning stipulation, the developer of the property is required to provide a total of 32 feet of paving with curb, gutter, a minimum five-foot wide sidewalk and street lighting along Pueblo Avenue and facilitate the pavement along the "intervening parcel" (APN 113-05-045). These improvements were not anticipated by the developer nor included in project development costs as the improvements are located within the public right-of-way.
An evaluation committee from the City’s Housing, Planning and Development, Community and Economic Development, and Neighborhood Services departments evaluated the CPLC application and gave it an average score of approximately 939 points out of the maximum 1,000 points. A minimum of 800 points is required to be considered for the funding opportunity.
Financial Impact
This program is funded by the CDBG. There is no impact to the General Fund.
Concurrence/Previous Council Action
On June 16, 2020, the Housing Phoenix Plan, and its nine policy initiatives, was adopted, including the fifth initiative which looked to create the Off-Site Infrastructure Program for affordable housing developers.
Location
316 W. Broadway Road
Council District: 7
Department
Responsible Department
This item is submitted by Deputy City Manager Gina Montes and the Housing and Neighborhood Services departments.