DEPARTMENT: Department of Planning & Community Development
DEPARTMENT HEAD: John M. Dugan, Director
COUNCIL DISTRICTS IMPACTED:
SUBJECT:
HOME Investment Partnership Funding Recommendations
SUMMARY:
An Ordinance approving the allocation of $1,100,000 in HOME Investment Partnerships Program (HOME) funding for the development of Acme Road Apartments and the allocation of $1,600,000 in HOME Community Housing Development Organization (CHDO) funding for the development of Lenwood Heights Subdivision.
BACKGROUND INFORMATION:
On August 6, 2015, City Council approved the FY 2016 HOME Investment Partnerships Funding Budget, which included $1,100,000 set aside for Multi-Family Rental Housing Development and $1,000,000 set aside for Community Housing Development Organization (CHDO) Single-Family New Construction development. In addition, $600,000 in FY 2014 HOME funding is being reprogrammed for CHDO Single-Family New Construction development.
ISSUE:
The Department of Planning and Community Development issued a Request for Applications for Multi-Family Rental Housing Development and CHDO Single-Family New Construction on June 19, 2015. Applications were due on July 17, 2015. Two separate panels comprised of City executives and senior managers evaluated the applications utilizing preset evaluation and scoring criteria. This panel evaluated the applications based on experience of the developer, efficient use of HOME funds, project feasibility, loan terms, site characteristics, transit amenities, project readiness, resident services and their Section 3 Utilization Plan.
Multi-Family Rental Housing Development
The five-member panel evaluated five applications with funding requests totaling $5.9 million. The highest scoring application was for Acme Road Apartments with a total score of 130 points from a possible 163 points. The NRP Group is proposing a 322 unit, $43.2M multi-family rental housing development, located on S. Acme Road at Prosperity Drive in Council District 6. This development will consist of 318 housing units restricted to households at 60% of area median income (AMI) and four housing units restricted to households at 50% of area median income.
CHDO Single-Family New Construction
The six-member panel evaluated two applications with funding requests totaling $2.2 million. The highest scoring application was for Lenwood Heights Subdivision with a total score of 160 points from a possible 181.5 points. Habitat for Humanity is proposing the development of 46 single-family units located at 259 S. Acme Road (south of Commerce) in Council District 6. This development will assist households at or below 80% of area median income (AMI).
ALTERNATIVES:
An alternative to appropriating HOME funding set aside for Multi-Family
Rental Housing development and CHDO Single-Family New Construction development to the recommended projects would be to reject the recommendations and issue a new Request for Applications for these activities; however, the recommended projects meet the established evaluation criteria. In addition, any other alternative to appropriation would delay the timely commitment and expenditure of these federally sourced funds.
FISCAL IMPACT:
This ordinance authorizes the allocation of $1.1 million for Multi-Family Rental Housing development and $1.6 million for Single-Family New Construction from HOME funds. $2.1 million was appropriated as part of the FY 2016 Action Plan Budget and $600,000 is reprogrammed from FY 2014 Action Plan Budget, for a total funding amount of $2.7 million for the two projects.
RECOMMENDATION:
Staff recommends approval of a $1,100,000 award in HOME funds to Acme Road Apartments, located on S. Acme Road at Prosperity Drive in Council District 6 and $1,600,000 in HOME CHDO funding to Lenwood Heights Subdivision, located at 259 S. Acme Road (south of Commerce) in Council District 6.