Item 2C: Funding for Low-Income Housing Projects

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ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Approval of Funding for Housing Projects Affordable to Low-Income Persons Meeting Date: June 9, 2008 Agenda Item Number: 2C Department: Planning and Development Staff Contact: Stephanie Jennings www.eugene-or.gov Contact Telephone Number: 682-5529 ISSUE STATEMENT The City Council is asked to approve the use of HOME funds and other resources for two affordable housing developments selected through the 2008 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 2005 HUD Consolidated Plan. The Consolidated Plan guides the use of Federal HOME Investment Partnership Program (HOME) funds and Community Development Block Grant (CDBG) funds over a five-year period. Each year, the 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) Waivers and the Low-Income Rental Housing Property Tax Exemption to further enable the development of affordable housing. Pursuant to 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 advises staff on the development of the RFP, reviews proposals, and makes funding recommendations to the City Council. The City issued the 2008 Housing RFP for affordable housing projects in November 2007 and proposals were due in February 2008. The RFP offered Federal HOME funds, Eugene System Development Charge (SDC) waivers, and Eugene Water and Electric Board System Development Charge waivers. The RFP sought proposals for use of HOME funds for the development or acquisition of housing affordable to low-income persons. A total of $695,000 in HOME funds is available for allocation to affordable housing projects through the 2008 RFP. Three proposals were received through the 2008 Housing RFP for use of HOME funds and other local resources. One of the proposals did not meet minimum environmental requirements established by HUD and was declined immediately. The remaining two proposals were reviewed by staff, the Eugene Allocations Committee of the Housing Policy Board, and the full Housing Policy Board (see Attachment A for member list). The Housing Policy Board recommends two proposals for funding. They are as follows: Acquisition of Hawthorn Apartments – ShelterCare requests funding to acquire and preserve the Hawthorn Apartments, a 35-unit housing development that currently serves very low-income persons with severe mental illness. The complex is privately owned and is located at 2984, 2986, and 2988 Oak Street and 2985 Willamette Street (see Attachment B for location map). ShelterCare has provided Z:\CMO\2008 Council Agendas\M080609\S0806092C.doc