Item 2E: Approval of Funding for Low-Income Housing Projects

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at or below 38% of area median income and 49 units affordable to households earning at or below 48% of area median income. Metro will develop the site according to LEED sustainable building standards for residential dwellings including use of energy efficient appliances, solar units, and other measures. Metro requests $316,121 in HOME funds in the form of a loan with terms to be negotiated, and other local subsidies including $115,000 in Eugene SDC waivers, $100,000 in EWEB SDC waivers, and $213,700 in Lane County Road Funds. Metro plans to seek Federal Low Income Housing Tax Credits from the State this fall and start construction in May 2007 if credits are awarded this year. th Acquisition of 1025 West 7 Rental Units by SVDP (VetLIFT II) – SVDP requests $275,000 in HOME funds to fund a portion of the acquisition costs and related tenant relocation costs of a 12-unit apartment th building at 1025 West 7 Avenue. The purchase price of the building is $550,000. The property will be rehabilitated and offered as affordable rental housing for chronically homeless veterans. The unit rents will be set at 30% of area median income. The residents will also participate in SVDP’s Vets Living Independently Following Treatment program and will have access to a range of social services. SVDP will use the commitment of HOME funds to leverage funding from other sources including the Veterans Administration Capital Grant Program and the State of Oregon Housing Trust Fund Program. SVDP plans to have the funding assembled to acquire the property in January 2007. The City’s funding will not be released until the other sources are committed. SVDP will seek operating subsidies from the Veterans Administration Per Diem Program and HUD Continuum of Care. SVDP also plans to apply for a loan through the City’s Rental Rehabilitation Program and for the City of Eugene Low-Income Housing Property Tax Exemption. RELATED CITY POLICIES The City Council approved the HUD Consolidated Plan 2005, which sets priorities for use of HOME and Community Development Block Grant (CDBG) funds over a five-year period. Each spring, the council approves a One-Year Action Plan for annual use of Federal CDBG and HOME funds. The plan allocates Federal funding to several categories of housing development activity: affordable rental units, homeownership, and site acquisition for future low-income housing developments. Other local resources, including Eugene and EWEB systems development charge (SDC) waivers, Lane County Road Funds, and low-income housing property tax exemptions, are also made available to decrease the cost of housing. The City Council has established a priority to address homelessness in Eugene. Both proposed developments directly support this objective by creating more housing that will be affordable to very and extremely low-income families and individuals. In particular, the acquisition and rehabilitation of th 1025 West 7 will offer a critical resource for veterans struggling to transition from homelessness to stable housing and employment. The City Council has established a Housing Dispersal Policy which seeks to maximize housing choices for low-income families and integrate housing throughout the city of Eugene. Both proposed projects will be located in appropriate Census Tracts according the Housing Dispersal Policy. While Prairie View exceeds the recommended limit of 60 units, only 58 of the 76 units will be targeted to low-income families. In addition, there is no other subsidized housing located within a three-mile radius of the site. L:\CMO\2006 Council Agendas\M060612\S0606122E.doc