Title
Amendment to Contract 127533 with UMOM New Day Centers, Inc. (Ordinance S-46488)
Description
Request to authorize the City Manager, or his designee, to amend Contract 127533 between the City of Phoenix and UMOM New Day Centers, Inc. (UMOM) regarding UMOM's use of proceeds from the prior sale of their homeless shelter properties to UMOM Family Housing II, LLLP (UMOM FH). The funds are currently used as rent subsidies for low-income tenants at Legacy Crossing and Parsons Village Apartments. This amendment would allow UMOM to utilize the proceeds as rent subsidies at any UMOM-owned multifamily rental property under the same guidelines of the existing contract. There is no impact to the General Fund.
Report
Summary
In 2009, UMOM FH received an award of federal HOME Investment Partnerships (HOME) Program funding from the City to develop a multifamily apartment complex. As part of the development transaction, UMOM received proceeds from the sale of their homeless shelter properties to UMOM FH. The City entered into Contract 127533, an escrow agreement dated Dec. 18, 2009, and subsequent amendments, regarding UMOM's use of these sales proceeds. The escrow agreement was executed as a waiver to a Housing Department policy to not participate in a transaction where an owner receives cash back in the refinancing or sale of a property for a profit or gain. The funds are currently used as rent subsidies for Legacy Crossing and Parsons Village tenants. UMOM has indicated a need for the use of these funds at other affordable housing properties it owns to assist low-income tenants with rental subsidies.
In addition to the proceeds from the sales, UMOM has successfully relied on donations from foundations, private donors and other organizations to establish the Family Rental Assistance Program and use those funds to subsidize the rent for families in their rental communities. UMOM has served over 100 unique families with these rental subsidies thus far.
This amendment would allow UMOM to use these funds for rent subsidies at additional properties, subject to approval by the Housing Department, as long as the permitted uses are the same and the tenants meet the same eligibility criteria in the current contract.
Financial Impact
There is no impact to the General Fund.
Concurrence/Previous Council Action
- On April 29, 2009, City Council authorized the Housing Department to enter into the original escrow agreement with UMOM for its use of the proceeds from the sale of their property to UMOM Family Housing II, LLLP.
- On March 2, 2011, City Council authorized an amendment to the contract with UMOM to allow the sales proceeds to be used to subsidize tenant rents at Legacy Crossing Apartments.
- On April 3, 2013, City Council authorized an amendment to the contract with UMOM to allow the sales proceeds to be used to subsidize tenant rents at Parsons Village (formerly known as North Mountain Village Apartments).
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Housing Department.