DEPARTMENT: Neighborhood and Housing Services
DEPARTMENT HEAD: Ver?nica R. Soto, AICP, Director
COUNCIL DISTRICTS IMPACTED: Council Districts 2, 3, and 7
SUBJECT:
FY 2019 Rental Housing Development Gap Financing Funding Recommendations
SUMMARY:
Consideration of awarding $1,250,000.00 in FY 2019 HOME Investment Partnerships Program (HOME) funding and $3,250,000.00 in FY 2019 Community Development Block Grant (CDBG) funding as Rental Housing Development Gap Financing to the following affordable housing development projects: (1) up to $1,250,000.00 in HOME funding and $1,100,000.00 in CDBG funding to Alsbury Apartments; (2) up to $900,000.00 in CDBG funding to Village at Roosevelt; and (3) up to $1,250,000.00 in CDBG funding to Majestic Ranch Apartments; with a total count of 30 HOME-assisted units and 300 CDBG-assisted units which exceeds the City's fiscal year performance goal of 111 affordable units (at or below 60% of area median income) using the HUD income limits for the region.
BACKGROUND INFORMATION:
The City received an increase in entitlement funding for FY 2019 compared to FY 2018 and took a strategic approach in developing the FY 2019 Action Plan and Budget (Action Plan) to increase activities that further Priority 1 (Provide Decent Safe Affordable Housing) of the Five Year Consolidated Plan. On August 2, 2018, City Council approved the Action Plan and authorized a set aside of $1,250,000.00 in HOME funding for rental housing development (new construction or rehabilitation) and $3,250,000.00 in CDBG funding to support affordable housing development (acquisition, site clearance or pubic infrastructure). These federally sourced funds may only be utilized as gap financing and must be the last source of funding in the financing structure. Additionally, the Action Plan set a goal of 111 affordable housing units (at or below 60% of area median income) using the HUD income limits for the region.
ISSUE:
The City issued a Request for Applica...
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