HomeMy WebLinkAboutItem 2C: Approval of Home Investment Partnerships Program Funding To Acquire
ECC
UGENE ITY OUNCIL
AIS
GENDA TEM UMMARY
Approval of Home Investment Partnerships Program Funding To Acquire
Existing Housing Units
Meeting Date: November 28, 2005 Agenda Item Number: 2C
Department: Planning and Development Staff Contact: Stephanie Jennings
www.eugene-or.gov Contact Telephone Number: 682-5529
ISSUE STATEMENT
The City Council is asked to approve Home Investment Partnerships Program (HOME) grant funding for
St. Vincent de Paul to acquire 13 units at 951 West 7th Avenue.
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. These funds are
distributed through a request for proposals (RFP) from eligible applicants. This RFP includes access to
other local resources, including City of 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 their recommendations for action.
Two proposals for HOME funds were received June 10, 2005, in response to the RFP, and were
reviewed by the HPB 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. The proposal by Sponsors, Inc. was forwarded to the
council and approved on August 8, 2005. Prior to the council meeting, St. Vincent de Paul requested a
substantial amendment to its funding request, which required further review by the Housing Policy Board
prior to City Council action. The Housing Policy Board held a public hearing for the revised proposal on
November 7 and recommended funding.
th
Acquire 951 West 7 Avenue
HOME Funds Grant $300,000
th
St. Vincent de Paul proposes to purchase a property at 951 West 7 Avenue to house chronically
homeless veterans. The building includes 12 rental units and one manager’s unit. Tenants will receive
services through Vet LIFT – Vets Living Independently Following Treatment, a program funded by local,
State, and Federal grants. The housing will be affordable to one-person households at 0-30% of area
median income. St. Vincent de Paul will combine the HOME funds with several other capital resources
on this $958,188 project: State of Oregon Alcohol and Drug Free, Trust, and HELP funds, and federal
L:\CMO\2005 Council Agendas\M051128\S0511282C.doc
HUD Continuum of Care. St. Vincent de Paul received a grant of $117,000 from Continuum of Care and
will apply for State funds in early 2006. St. Vincent de Paul plans to use funding from the HUD
Supportive Housing Program and Veteran Administration per diem monies to offset the costs of building
management and resident services over time. It will also seek approximately $246,518 from the City’s
ongoing housing rehabilitation loan program. The HOME funds will be combined with a bridge loan to
acquire this property for the amount of $599,999. The property will require moderate rehabilitation.
Financial and/or Resource Considerations
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.
Timing
Timely City Council action on this proposal is important in order for St. Vincent de Paul to work with
existing purchase options and funding sources.
RELATED CITY POLICIES
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.
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 use of HOME funds for this project.
SUGGESTED MOTION
Move to approve the use of HOME funds for the acquisition project described in the memo.
ATTACHMENTS
A. List of Housing Policy Board Members
FOR MORE INFORMATION
Staff Contact: Stephanie Jennings
Telephone: 682-5529
Staff E-Mail: stephanie.a.jennings@ci.eugene.or.us
L:\CMO\2005 Council Agendas\M051128\S0511282C.doc
ATTACHMENT A
Housing Policy Board Members
Lea Allen
Norton Cabell
Roxie Cuellar
Bob Doppelt
Bobby Green
Jennifer Solomon
Dave Ralston
John VanLandingham
John Wagner
L:\CMO\2005 Council Agendas\M051128\S0511282C.doc