HomeMy WebLinkAboutItem 3C - Approval HOME FundsEUGENE CITY COUNCIL
AGENDA ITEM SUMMARY
Approval of HOME Investment Partnerships Program Funding for
Two Homeownership Units
Meeting Date: April 11, 2005 Agenda Item Number: 3C
Department: Planning and Development Staff Contact: Linda Dawson
www. cl. eugene, or. us Contact Telephone Number: 541.682.5071
ISSUE STATEMENT
The City Council is being asked to award two landbanked building lots on West Irwin Way to a local
housing developer and approve Federal HOME Investment Partnerships Program (HOME) funding for
construction of two single-family homes on the lots.
BACKGROUND
The Planning and Development Department (PDD) purchased two single-family building lots from
LRCS for the Low-Income Housing Landbank Program. The lots adjoin the Irwin Park
Bicycle/Pedestrian Connector between West Irwin Way and Trevon Street in the Bethel neighborhood.
The City issued a Request for Proposals (RFP) offering these two lots for the development of affordable
housing units in partnership with the Lane Community College (LCC) Construction Technology
Program. There was only one respondent to the RFP, St Vincent dePaul (SVdP). The Housing Policy
Board Allocations Committee considered the request and recommended the project to the Housing
Policy Board (HPB). A public hearing was held at the February 7, 2005, HBP meeting and the full
board supported the recommendation.
The lots will be offered at no-cost to SVdP. St Vincent dePaul requested $60,000 in HOME funds,
$9,400 in Eugene Systems Development Charge (SDC) waivers, and $5,280 in Eugene Water and
Electric Board (EWEB) Water SDC waivers. Half of the HOME funds will be provided to SVdP as a
loan which will be repaid when construction is complete; the other half of the HOME funds will be
granted to SVdP. The grant funds will be repaid if the houses ever sell to a household which is not
income eligible. St Vincent dePaul will coordinate with LCC to construct the homes for low-income
homeowners at or below 80% of area median income. Each home will have approximately 1,200 square
feet, three bedrooms/two bathrooms, and an attached garage. The purchase price is estimated to be
$114,523. St Vincent dePaul is already working with the family who will be purchasing the first home.
Based on the needs of this family, the house will be fully accessible. St Vincent dePaul will continue to
coordinate with LCC on the future construction of the second home.
RELATED CITY POLICIES
The City Council approved the US Department of Housing and Urban Development (HUD)
Consolidated Plan 2000 which sets priorities for use of Community Development Block Grant (CDBG)
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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. Other local resources, including Eugene and EWEB SDC
waivers, Lane County Road Funds, and low-income housing property tax exemptions, are also available
to decrease the cost of the housing. Projects are solicited through a RFP process conducted by the
intergovernmental HPB and forwarded to the City Council for action.
COUNCIL OPTIONS
The council may approve or decline to approve this action.
CITY MANAGER'S RECOMMENDATION
The City Manager recommends awarding the two lots on West Irwin, the requested Federal HOME
funding, and local SDC waivers to SVdP, to collaborate with LCC on construction of two affordable
homeownership units.
SUGGESTED MOTION
Move to approve the two lots on West Irwin, the requested Federal HOME funding, and local SDC
waivers be awarded to SVdP to collaborate with LCC on construction of two affordable homeownership
units.
ATTACHMENTS
None.
FOR MORE INFORMATION
Staff Contact: Linda Dawson
Telephone: 682.5071
Staff E-Mail: linda.l.dawson~ci.eugene.or.us
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