Item 2C: Approval of Home Investment Partnerships Program Funding To Acquire

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ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Approval of Home Investment Partnerships Program Funding To Acquire Existing Housing Units Meeting Date: November 28, 2005 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 Home Investment Partnerships Program (HOME) grant funding for St. Vincent de Paul to acquire 13 units at 951 West 7th Avenue. 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. These funds are distributed through a request for proposals (RFP) from eligible applicants. This RFP includes access to other local resources, including City of 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 their recommendations for action. Two proposals for HOME funds were received June 10, 2005, in response to the RFP, and were reviewed by the HPB 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. The proposal by Sponsors, Inc. was forwarded to the council and approved on August 8, 2005. Prior to the council meeting, St. Vincent de Paul requested a substantial amendment to its funding request, which required further review by the Housing Policy Board prior to City Council action. The Housing Policy Board held a public hearing for the revised proposal on November 7 and recommended funding. th Acquire 951 West 7 Avenue HOME Funds Grant $300,000 th St. Vincent de Paul proposes to purchase a property at 951 West 7 Avenue to house chronically homeless veterans. The building includes 12 rental units and one manager’s unit. Tenants will receive services through Vet LIFT – Vets Living Independently Following Treatment, a program funded by local, State, and Federal grants. The housing will be affordable to one-person households at 0-30% of area median income. St. Vincent de Paul will combine the HOME funds with several other capital resources on this $958,188 project: State of Oregon Alcohol and Drug Free, Trust, and HELP funds, and federal L:\CMO\2005 Council Agendas\M051128\S0511282C.doc