Item 3C: Approval of Funding and Use of City Resources for Housing Affordable to Low-Income Persons

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ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Approval of Funding and Use of City Resources for Housing Affordable to Low-Income Persons Meeting Date: April 8, 2013 Agenda Item Number: 3C Department: Planning & Development Staff Contact: Becky Wheeler www.eugene-or.gov Contact Telephone Number: 541-682-5532 ISSUE STATEMENT The City Council is asked to approve the use of Federal HOME Investment Partnerships Program (HOME) funds and City resources for affordable housing developments identified through the 2012 Housing Request for Proposals (RFP). BACKGROUND The City of Eugene established current goals and programs for the development of housing affordable to low-income people through the adopted 2010 HUD Consolidated Plan. The Consolidated Plan guides the use of HOME funds and Community Development Block Grant (CDBG) funds over a five-year period. Each year, City Council approves the allocation of federal funds through a One-Year Action Plan. In addition to use of federal funds, the City of Eugene has established System Development Charge (SDC) Exemptions and the Low-Income Rental Housing Property Tax Exemption to further facilitate the development of affordable housing. As outlined in the Consolidated Plan and One-Year Action Plan, staff develops and releases an annual RFP for affordable housing development projects. The intergovernmental Housing Policy Board (HPB) advises staff on the development of the RFP, reviews proposals, and makes funding recommendations to the City Council. The City issued the 2012 Housing RFP for affordable housing projects in June 2012. The RFP sought proposals for: 1.Property acquisition and/or rehabilitation resulting in affordable housing (owner- or renter-occupied) or the preservation of existing affordable housing; and 2.New construction (with site control). $639,325 in HOME funds and approximately $1,250,977 in Eugene SDC exemptions were made available through the RFP. Five proposals were received for the development of new housing on sites controlled by the applicant. No proposals were received for acquisition of existing housing. The lack of Eugene Water & Electric Board (EWEB) SDC grant funds that were going to be used for the Bascom Village project created a need for additional HOME funds for the development. Without the grants, the project developers, St. Vincent de Paul and Housing and Community Services Agency (HACSA) of Lane County, face a funding gap of more than $50,000 each. The five proposals for new construction were reviewed by staff, the Evaluation Committee (a S:\CMO\2013 Council Agendas\M130408\S1304083C.doc