Item 4: Approval of Funding for Housing Affordable to Low-Income Persons

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ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Action Item: Approval of Funding for Housing Affordable to Low-Income Persons Meeting Date: November 28, 2011 Agenda Item Number: 4 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 other resources for an affordable housing development on the County Farm landbank site identified through the 2011 Housing Request for Proposals (RFP). BACKGROUND Annual Action Plan and Housing Request for Proposals The City of Eugene subsidizes the development of affordable housing using federal pass-through funding and local resources. The City of Eugene established current goals and programs for the development of affordable housing 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, the City Council adopts a One-Year Action Plan, which establishes development goals and allocates funds at a program level. For fiscal year 2012, the One- Year Action Plan sets a goal for developing 100 units of affordable housing and allocates up to $601,206 in HOME funds for construction or acquisition of affordable housing units. In addition to use of federal funds, the City of Eugene has established System Development Charge (SDC) waivers and the Low- Income Rental Housing Property Tax Exemption to further enable the development of affordable housing. The City uses an annual Housing RFP to solicit specific affordable housing development projects eligible to receive land and other federal and local subsidies specifically designated for affordable housing. City Council is advised directly by the Intergovernmental Housing Policy Board (HPB) on housing proposals received through the RFP and other housing policy matters. The RFP content and criteria were developed through a lengthy consultation process with HPB. HPB appoints members of the Evaluation Committee to review and score the proposals, holds public hearings to collect comments on proposed projects, and makes funding recommendations to the City Council. Final decisions regarding awards of land and other federal and local subsidies are made by the City Council. Following the City Council’s decision, developers seek Low Income Housing Tax Credits and other funding through the State’s Consolidated Funding Cycle. The City issued the RFP in March 2011, with proposals due in May. Two proposals were received for the development of new rental housing on the County Farm landbank site. A single proposal was received for acquisition of existing housing, but was deemed incomplete and not evaluated. The two proposals for the landbank site were reviewed by staff and the HPB-appointed Eugene Evaluation S:\CMO\2011 Council Agendas\M111128\S1111284.doc