Item 2C - HOME Funding Approval - Laserfiche WebLink

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Other Background Information The HPB offered resources for rental and homeownership projects through an RFP process. Two proposals were received February 16, 2004, and were reviewed by the Allocations Subcommittee on March 29, 2004. Both proposals were recommended for funding and forwarded for a public hearing and consideration by the HPB on June 7, 2004. The HPB recommends funding the following two projects: Turtle Creek at Walnut Grove HOME Funds Grant $565,000 Eugene SDC Waiver 94,500 EWEB SDC Waiver 35,000 Lane County Road Funds 220,000 The Housing and Community Services Agency of Lane County (HACSA) will develop the 4.7 acres adjacent to its 32 existing units at Walnut Park Apartments. This will be the final phase of development at this 40-acre site which the City purchased with CDBG funds and landbanked for affordable housing in 1990. HACSA will add 27 units of permanently affordable rental housing and sell 20 single-family lots for market-rate homes. Construction of these homes will be undertaken by private builders as in earlier phases of the Walnut Grove mixed-income development. The sale of these lots, less the cost of infrastructure improvements, will result in approximately $480,000 in future program income to the City's CDBG program. HACSA will also use a $94,500 Eugene SDC waiver, a $35,000 EWEB water SDC waiver, and $220,000 in Lane County road funds for the development. The new, low-income housing will consist of 25 two-bedroom units and two three-bedroom units with rents ranging from $395 to $425. The target population will be families at 50% of area median income. Scattered Site Homeownership Units HOME Funds Grant $150,000 St. Vincent dePaul will partner with Gansen Construction to provide five low-income, single-family homeownership units in Eugene. Over the next year, Gansen Construction will locate available vacant lots and construct five three-bedroom homes. Each home will have 1,193 square feet, two bathrooms, a porch, and a two-car garage. Upon completion, St. Vincent dePaul will purchase the homes for approximately $125,000 from Gansen, using $30,000 in HOME funds towards each purchase, and sell them to families with incomes no more than 75% of area median. HOME regulations allow use of funds for households with incomes up to 80% of area median. The estimated monthly cost to the new homeowner will be $652 which includes (principle/interest/taxes/insurance) plus $153 (utilities) for a total monthly cost of $805. The $30,000 per unit in HOME funds will remain as a silent second on the homes for a minimum often years, if continuously occupied by an income-eligible family. If the home is ever sold to a non-qualifying family, the $30,000 will return to the City's HOME account. Timing Both projects will be under construction in 2004-05. OPTIONS The council may approve or not approve the HPB recommendations. L:\CMO\2004 Council Agendas\M040614\S0406142C.doc