Item 2C: Approval of Funding for Affordable Housing

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? Acquisition and Rehabilitation of Rental Property by St. Vincent de Paul of Lane County for Homeless Veterans - St. Vincent de Paul Society of Lane County (SVdP) requests CDBG funds to th support the acquisition of a property located at 1070 West 6 Avenue in the Whiteaker neighborhood (see Attachment B for location map). SVdP proposes to acquire and rehabilitate the property for chronically homeless veterans who will participate in SVdP Veterans Living Independently Following Treatment program (VetLIFT). The property includes nine one-bedroom apartments, a 1400 sq. ft. non-residential space, and laundry facilities. SVdP plans to convert a portion of the non-residential space to one additional apartment that will be fully accessible. All participants will have incomes below 50% of Area Median Income (AMI). The proposed project is located on the same block as two additional properties owned by SVdP for homeless veterans. As proposed, the non-residential portion of the property will be used for individual counseling and group meetings for residents and other homeless veterans. SVdP plans to seek funding from the State of Oregon to cover other project costs. SVdP also plans to apply for the City of Eugene Low- Income Housing Property Tax Exemption. The total cost of the project is $900,178. The Housing Policy Board recommends $400,000 in CDBG funds to be used for acquisition and relocation costs. ? Resident Acquisition of a Manufactured Home Park (River Rock Glen) – The residents of Hannah Del Estates, a manufactured home park, have formed a resident cooperative in order to respond to the owner’s interest in selling the park at this time. The park has a total of 66 spaces and is located on Atticus Way off River Road north of Beltline in the Santa Clara neighborhood (see Attachment B for location map). The resident cooperative, called River Rock Glen Association, (RRGA) has retained legal and financial consultants to arrange financing for purchase of the park. The total cost of acquisition and conversion to a resident owned cooperative is $4,540,000. RRGA is seeking permanent financing from a private lender and an interest subsidy from the State of Oregon to cover about 85% of the acquisition costs. RRGA applied for CDBG funds to enable low-income residents of the park to purchase member shares and secure long-term leases for their lots. The projected cost of a member share is $11,000. At present, RRGA estimates there are 25 households in the park with low or very low incomes as defined by CDBG regulations. In addition, RRGA would like to make five vacant spaces available to low-income households. The Housing Policy Board recommends $330,000 in CDBG funds to enable low-income households to purchase member shares of River Rock Glen. RELATED CITY POLICIES The proposed uses of CDBG funds support multiple City policies and programs. A summary of the relationship between the proposed projects and each policy area is provided below: ? Eugene-Springfield Consolidated Plan 2005 - This recommended proposal supports the City’s affordable housing goals established in the Consolidated Plan 2005 which guides the use of federal CDBG and HOME funds through 2010. In order to allocate funds to specific programs or projects, HUD regulations require a citizen participation process, including advertising and conducting a public hearing, followed by City Council action. ? City Growth Management Policies – The recommended proposals support a number of the City Council Adopted Growth Management Policies. In particular the proposals will encourage in-fill and higher density development; improve the appearance of buildings and landscapes; increase density of new housing development while maintaining the character and livability of individual neighborhoods; and provide for a greater variety of housing types. ? Homelessness Council Goal - The City Council has established a priority to address homelessness in Eugene. Both projects serve this goal in different ways. SVdP’s proposal will make more units F:\CMO\2008 Council Agendas\M080310\S0803102C.doc