Item 2C: Approval of Funding for Housing Project for Low-Income Persons and att'sA-C

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ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Approval of Funding for Housing Project Affordable to Low-Income Persons Meeting Date: September 28, 2009 Agenda Item Number: 2C Department: Planning & Development Staff Contact: Stephanie Jennings www.eugene-or.gov Contact Telephone Number: 682-5529 ISSUE STATEMENT The City Council is asked to approve the use of HOME Investment Partnership Program (HOME) funds and other resources for an affordable housing development identified through the 2009 Housing Request for Proposals (RFP). BACKGROUND The City of Eugene established current goals and programs for the development of housing affordable to low-income people, through the adopted 2005 HUD Consolidated Plan. The Consolidated Plan guides the use of Federal HOME funds and Community Development Block Grant (CDBG) funds over a five- year period. Each year, the City Council approves the allocation of federal funds through a One-Year Action Plan. In addition to use of federal funds, the City of Eugene has established Systems Development Charge (SDC) Waivers and the Low-Income Rental Housing Property Tax Exemption to further enable the development of affordable housing. Pursuant to the Consolidated Plan and One-Year Action Plan, staff develops and releases an annual RFP for affordable housing development projects. The intergovernmental Housing Policy Board advises staff on the development of the RFP, reviews proposals, and makes funding recommendations to the City Council. The City issued the 2009 Housing RFP for affordable housing projects in March 2009 and proposals were due in May 2009. The 2009 RFP sought proposals for: (1) new affordable housing development on the three-acre Willakenzie School landbank site, HOME Investment Partnership Program funds, Eugene System Development Charge waivers, and Eugene Water & Electric Board System Development Charge grants; and (2) acquisition of existing housing to be converted to affordable housing, including use of HOME funding, Eugene SDC waivers, and EWEB SDC waivers. A total of $770,000 in HOME funds, approximately $852,000 in Eugene SDC waivers, and $100,000 in EWEB SDC grants were available through the RFP process. Available funds for the 2009 RFP process total $1,722,000. Two proposals were received through the 2009 Housing RFP for use of HOME funds and other local resources. The two proposals were reviewed by staff, the Eugene Allocations Committee of the Housing Policy Board, and the full Housing Policy Board (see Attachment A for member list). A brief summary of each proposal is included below: Darrow Gardens—St. Vincent de Paul: St. Vincent de Paul Society of Lane County, Inc. (SVdP) requests funding for Darrow Gardens, a townhome-style development which will provide 48 rental units Z:\CMO\2009 Council Agendas\M090928\S0909282C and att'sA-C.doc