Item 3C: Approval of Funding and Use of City Resources for Housing Affordable to Low-Income Persons

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committee including members of the professional community with a variety of experience in housing finance, architecture, multifamily development, non-profit organization, and other relevant skills), and the Housing Policy Board (see Attachment A for a list of Evaluation Committee and Housing Policy Board Members). A summary of the proposals is included below: Bothy Cottage – Sponsors, Inc. Sponsors, Inc., a local non-profit, submitted an application for a new, four-bedroom group home that will provide housing for homeless, ex-offender mothers and their children. The home will be located on their existing site at 767 West 8 Avenue in Eugene. Sponsors requests $281,290 in th HOME funds and up to $9,500 in City of Eugene SDC exemptions for construction of Bothy Cottage. Sponsors anticipates receiving foundation grants of approximately $145,000 to assist with construction. Total project cost is estimated at $436,111. The very low-income (50 percent area median income) population targeted in this project is at significant risk for continued homelessness. The Consolidated Plan identifies an unmet need of 842 beds of transitional housing for families with children. In addition, released offenders are identified as a special needs population in the Consolidated Plan. This population finds it extremely difficult to locate and pay for rental housing in the private market once released because most leave the prison system without a job or reasonable prospects of a job, no recent rental history, limited credit, and no money for deposits. Sponsors reports a marked increase in the number of mothers with children applying to the transitional program within the last several years and has no facilities suitable for these families. If funded, Bothy Cottage would be Oregon’s first transitional housing facility specifically designed to serve homeless, ex-offender mothers and their children. Rent charged for each bedroom of the home will be $180 or less a month. Springfield/Eugene Habitat for Humanity The Springfield/Eugene Chapter of Habitat for Humanity (Habitat) submitted four (4) separate applications for new homes on parcels they own in Eugene, two (2) in the Bethel area and two (2) in the Santa Clara area. Each home would be affordable to families with incomes at 30 – 60 percent of area median income (AMI), have two (2) or three (3) bedrooms with a one (1) car garage, and be Energy Star Certified. Habitat requests $50,000 per house in HOME funds ($200,000 total) and up to $8,861 in COE SDC exemptions for each ($35,444 total). HOUSING POLICY BOARD RECOMMENDATION The HPB recommends providing HOME funds and City of Eugene SDC exemptions to Bothy Cottage as it is consistent with Eugene’s goal of increasing the supply of affordable housing, plus the funds will help provide up to 16 beds to fill the transitional housing gap identified in the 2010 Consolidated Plan. The significant amount of HOME dollars contributed to this project allows rents that are far below the area’s fair market rents by eliminating the need for Sponsors to carry any debt. The project cannot be built without the requested HOME funds. HPB also recognizes that Bascom Village was left with a budget gap due to lack of EWEB grant funding and the appropriate course of action is to recommend using additional HOME funds to fill the gap. The Board recommends providing City of Eugene SDC exemptions to Habitat for Humanity for all four (4) homes proposed through the 2012 RFP. S:\CMO\2013 Council Agendas\M130408\S1304083C.doc