Item 2C: Approval of Funding for Affordable Housing Projects

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th ? New Mixed Use Rental Development on West 11by St. Vincent dePaul Society of Lane County, Inc. (SVdP) – SVdP requests $525,000 in HOME funding and $111,500 in Eugene SDC waivers to support the development of 35 units of rental housing affordable to persons with incomes below 50% of area median income. The HOME funds will be used for predevelopment, development soft costs, any tenant relocation costs, and other eligible costs and will be structured as a deferrable no- interest loan. The units will be targeted to singles, couples, and persons with special needs. The development will also include 7,255 sq. ft. of commercial space on the ground level that will be rented by SVdP for a bookstore. SVdP will apply for Federal Low Income Housing Tax Credits as the primary source of subsidy for the project. SVdP owns the site for the proposed development, th which is located at 1880 West 11 Avenue. The total cost of the project is $7,705,365. SVdP also plans to apply for the City of Eugene Low-Income Rental Housing Property Tax Exemption. ? New Transitional Housing Development on Highway 99 by Sponsors, Inc. – Sponsors, Inc. requests $550,000 in HOME funding and $140,000 in Eugene SDC waivers to support the development of 42 units of single room occupancy transitional rental housing for men recently released from prison. The HOME funds will be used for predevelopment, development soft costs and other eligible costs and will be structured as a deferrable no-interest loan. Of the 42 total, 30 units will be affordable to persons with incomes below 30% of area median income. The remaining 12 units will be affordable to persons with incomes below 50% of area median income. Sponsors, Inc. plans to apply for Federal Low Income Housing Tax Credits as the primary source of subsidy for the project. Sponsors has an option to purchase a .55 acre parcel located on Highway 99 for the proposed development and is currently seeking state funds to purchase the site. The total cost of the project is $3,169,495. Sponsors, Inc. also plans to apply for the City of Eugene Low-Income Rental Housing Property Tax Exemption. nd ? New Homeownership Units at 2 Avenue and Blair Boulevard by Neighborhood Economic Development Corporation (NEDCO) – NEDCO requests funding to support the development of seven homeownership units that will be targeted to households with incomes below 80% of area median income. The proposal requests an interim HOME loan of $210,000 and Eugene SDC waivers of $28,000. NEDCO’s proposal also includes a request for a $35,000 Homebuyer Assistance Program (HAP) loan for each homebuyer at the time of sale. NEDCO owns the site for nd the proposed development, which is located at 2 Avenue and Blair Boulevard. The total project cost is $1,405,995. th ? Rehabilitation of West 8 Apartments by Mainstream Housing, Inc. (MHI) – MHI requests HOME funding to complete the rehabilitation of Mainstream Apartments, a 10-unit complex that houses persons with developmental disabilities and incomes below 30% of area median income. MHI seeks $46,200 in funds to replace the roof, gutters, doors, safety railing, exterior paint, and to install an intercom system. Mainstream also requests $100,000 in funding to pay down a portion of a $216,000 loan on the property. Mainstream Apartments is currently owned and operated by MHI. Previously, MHI requested an $87,870 HOME grant for rehabilitation costs associated with Mainstream Apartments. RELATED CITY POLICIES The City Council has established a priority to address Homelessness in Eugene. Three of the four proposed developments directly support this objective by creating more housing that will be affordable L:\CMO\2007 Council Agendas\M070529\S0705292C.doc