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EUGENE CITY COUNCIL AGENDA ITEM SUMMARY Approval of Home Investment Partnerships Program Funding To Acquire Existing Housing Units Meeting Date: August 8, 2005 Agenda Item Number: 2C Department: Planning and Development Staff Contact: Richie Weinman www. eugene-or, gov Contact Telephone Number: 682-5533 ISSUE STATEMENT The City Council is asked to approve Home Investment Partnerships Program (HOME) grant funding for Sponsors, Inc. to acquire 28 quad units at 1748 Ferry Street. BACKGROUND The City Council approved the HUD Consolidated Plan 2005 which sets priorities for use of Community Development Block Grant (CDBG) and HOME 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 generically to several housing development activities: affordable rental units, homeownership, and site acquisition for future low-income housing developments. The City's Request for Proposals (RFP) for funding includes access to other local resources including Eugene and EWEB systems development charges (SDC) waivers, Lane County Road Funds, and low-income housing property tax exemptions. All of these resources provide subsidies that decrease the cost of the housing for low-income tenants. The intergovernmental Housing Policy Board (HPB) reviews proposals and forwards its recommendations for action. Up to $750,000 in Federal HOME funds, along with other local housing resources, were offered through the RFP process for acquisition of existing affordable housing units. Two proposals were received totaling $728,571. Two proposals for HOME funds were received June 10, 2005, in response to the RFP, and were reviewed by the Allocations Subcommittee on June 28, 2005. A public hearing was conducted on July 21 and three people testified, each in support of the recommendation. The Housing Policy Board recommended HOME funding for both projects. St. Vincent dePaul recently requested a substantial amendment to its funding request. This requires further review by the Housing Policy Board prior to City Council action. Acquire Ferry Street Quads HOME Funds Grant $428,571 Sponsors, Inc. seeks assistance to acquire a complex of 28 quad units located at 1728 Ferry Street in the West University Neighborhood. The tenant population will consist of adult ex-offenders. This population is a particularly under-served and difficult to place in housing. Sponsors will provide case L:\CMO\2005 Council Agendas\M050808\S0508082C.doc