HomeMy WebLinkAboutItem 2C: Approval of HOME FundsEUGENE CITY COUNCIL
AGENDA ITEM SUMMARY
Approval of Home Investment Partnerships Program Funding To Acquire Existing Housing
Units
Meeting Date: August 8, 2005 Agenda Item Number: 2C
Department: Planning and Development Staff Contact: Richie Weinman
www. eugene-or, gov Contact Telephone Number: 682-5533
ISSUE STATEMENT
The City Council is asked to approve Home Investment Partnerships Program (HOME) grant funding for
Sponsors, Inc. to acquire 28 quad units at 1748 Ferry Street.
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. The City's Request
for Proposals (RFP) for funding includes access to other local resources including 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 its recommendations for action.
Up to $750,000 in Federal HOME funds, along with other local housing resources, were offered through
the RFP process for acquisition of existing affordable housing units. Two proposals were received
totaling $728,571.
Two proposals for HOME funds were received June 10, 2005, in response to the RFP, and were
reviewed by the 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. St. Vincent dePaul recently requested a substantial
amendment to its funding request. This requires further review by the Housing Policy Board prior to City
Council action.
Acquire Ferry Street Quads
HOME Funds Grant $428,571
Sponsors, Inc. seeks assistance to acquire a complex of 28 quad units located at 1728 Ferry Street in the
West University Neighborhood. The tenant population will consist of adult ex-offenders. This
population is a particularly under-served and difficult to place in housing. Sponsors will provide case
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management and operate the facility as alcohol-, drug- and smoke-free facility. Sponsors will rent units
to those who have successfully completed Sponsors' basic transition program, referred by both Lane
County and federal parole and probation, and who have successfully completed local substance abuse
treatment programs. Representatives for Sponsors attended two meetings of the West University
Neighborhood Association. Some neighbors expressed concern about sex offenders, and all were pleased
about the alcohol- and drug-free requirements. Neighborhood residents in attendance expressed
overwhelming support for the project.
Unit rents will be affordable to one-person households at 26 - 33% of area median income. The HOME
funds will be combined with a loan from Pacific Continental Bank on this $510,519 acquisition. The
property is in good condition and does not need rehabilitation.
Timely City Council action on this proposal is important in order for Sponsors to work with existing
purchase options.
RELATED CITY POLICIES
Policy Issues
The Consolidated Plan 2005 sets objectives of increasing the supply of affordable housing and increasing
the range of housing options and related services for special needs populations.
Council Goals
The creation of low-income housing, a City Council goal for over ten years, is included in the Growth
Management Policies and the HUD Consolidated Plan 2005.
COUNCIL OPTIONS
The Council may approve or not approve the HPB recommendation.
CITY MANAGER'S RECOMMENDATION
The City Manager recommends that the council approve the use of HOME funds for this project.
SUGGESTED MOTION
Move to approve the use of HOME funds for the acquisition project described in this Agenda Item
Summary.
ATTACHMENTS
A. List of Allocations Subcommittee Members and Housing Policy Board Members
B. Public Hearing Minutes
FOR MORE INFORMATION
Staff Contact: Richie Weinman
Telephone: 541-682-5533
Staff E-Mail: Richie. d. weinman~ci, eugene, or. us
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ATTACHMENT A
Housing Policy Board
Eugene Allocations Subcommittee Members
Lea Allen
Norton Cabell, chair
Connie Hedberg
Jennifer Soloman
John Vanlandingham
John Wagner
Jim Welsh
Housing Policy Board Members
Lea Allen
Norton Cabell
Roxie Cuellar
Bob Doppelt
Bobby Green
Jennifer Soloman
Dave Ralston
John Vanlandingham
John Wagner
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ATTACHMENT B
July 21, 2005
Public Hearing Minutes
Proposed Low-Income Housing Funding
St Vincent DePaul - Vet LIFT Program
Sponsors Inc. - Transitional Housing
Norton Cabell, Chair of HPB Allocations Committee opened the meeting.
Richie Weinman, City of Eugene staff, summarized the proposals and the process to date.
Mr. Cabell opened the hearing.
Ron Chase, 925 Sunnyside, Eugene. Executive Director of Sponsors
Mr. Chase recalled that Sponsors was the first agency to receive funding through the HPB 15
years ago. He explained how that money was well spent and this allocation will also be well
managed and an asset to the community. He thanked the HPB for its support of this project.
Anne Williams, 972 Madison, Eugene, St. Vincent dePaul
Ms. Williams thanked the HPB for their long term support and the support of this project. She
spoke in favor of assisting the tremendous number of homeless veterans in Lane County. She
explained that this allocation is intended to leverage other HUD funds, a VA grant, and state
funds. She said these funds are critical.
Drew Smead, 1665 Oakpatch
Mr. Smead explained that he was a homeless vet, living in his car, 18 months ago. His kids were
taken away from him. He went to Carton House and learned a lot. He's been a recovering
alcoholic ever since. He lived in a recovery house for awhile and now lives in subsidized housing
and has a job and his kids back. He supports this grant and offered himself as an example.
No one else wished to speak and Mr. Cabell closed the public hearing.
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