Item 3C - Approval HOME Funds - Laserfiche WebLink

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EUGENE CITY COUNCIL AGENDA ITEM SUMMARY Approval of HOME Investment Partnerships Program Funding for Two Homeownership Units Meeting Date: April 11, 2005 Agenda Item Number: 3C Department: Planning and Development Staff Contact: Linda Dawson www. cl. eugene, or. us Contact Telephone Number: 541.682.5071 ISSUE STATEMENT The City Council is being asked to award two landbanked building lots on West Irwin Way to a local housing developer and approve Federal HOME Investment Partnerships Program (HOME) funding for construction of two single-family homes on the lots. BACKGROUND The Planning and Development Department (PDD) purchased two single-family building lots from LRCS for the Low-Income Housing Landbank Program. The lots adjoin the Irwin Park Bicycle/Pedestrian Connector between West Irwin Way and Trevon Street in the Bethel neighborhood. The City issued a Request for Proposals (RFP) offering these two lots for the development of affordable housing units in partnership with the Lane Community College (LCC) Construction Technology Program. There was only one respondent to the RFP, St Vincent dePaul (SVdP). The Housing Policy Board Allocations Committee considered the request and recommended the project to the Housing Policy Board (HPB). A public hearing was held at the February 7, 2005, HBP meeting and the full board supported the recommendation. The lots will be offered at no-cost to SVdP. St Vincent dePaul requested $60,000 in HOME funds, $9,400 in Eugene Systems Development Charge (SDC) waivers, and $5,280 in Eugene Water and Electric Board (EWEB) Water SDC waivers. Half of the HOME funds will be provided to SVdP as a loan which will be repaid when construction is complete; the other half of the HOME funds will be granted to SVdP. The grant funds will be repaid if the houses ever sell to a household which is not income eligible. St Vincent dePaul will coordinate with LCC to construct the homes for low-income homeowners at or below 80% of area median income. Each home will have approximately 1,200 square feet, three bedrooms/two bathrooms, and an attached garage. The purchase price is estimated to be $114,523. St Vincent dePaul is already working with the family who will be purchasing the first home. Based on the needs of this family, the house will be fully accessible. St Vincent dePaul will continue to coordinate with LCC on the future construction of the second home. RELATED CITY POLICIES The City Council approved the US Department of Housing and Urban Development (HUD) Consolidated Plan 2000 which sets priorities for use of Community Development Block Grant (CDBG) L:\CMO\2005 Council Agendas\M050411\S0504113C.doc