HomeMy WebLinkAboutItem 2C - HOME Funding ApprovalEUGENE CITY COUNCIL
AGENDA ITEM SUMMARY
Approval of HOME Investment Partnerships Program Funding for
Low-Income Housing Projects
Meeting Date: June 14, 2004 Agenda Item Number: 2C
Department: Planning and Development Staff Contact: LindaDawson
www. ci. eugene, or. us Contact Telephone Number: 682-5071
AGENDA ITEM SUMMARY
The City Council is being asked to approve grant funding for two projects: 1) the construction of 27
units of affordable rental housing, to be called Turtle Creek, at the Walnut Grove landbank site in
northwest Eugene and 2) to "buy down" the cost of five low-income homeownership units to be
constructed on five scattered sites in Eugene.
BACKGROUND
Council Action History
The City Council approved the HUD Consolidated Plan 2000 which sets priorities for use of Community
Development Block Grant (CDBG) and HOME Investment Partnerships Program (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 Eugene Water and Electric Board (EWEB)
systems development charges (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
Request for Proposals (RFP) process conducted by the intergovernmental Housing Policy Board (HPB)
and forwarded to the City Council for action.
Policy Issues
Not applicable.
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 2000.
Financial and/or Resource Considerations
Federal HOME funds along with other local housing resources were offered through the RFP process for
low-income housing projects.
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Other Background Information
The HPB offered resources for rental and homeownership projects through an RFP process. Two
proposals were received February 16, 2004, and were reviewed by the Allocations Subcommittee on
March 29, 2004. Both proposals were recommended for funding and forwarded for a public hearing and
consideration by the HPB on June 7, 2004. The HPB recommends funding the following two projects:
Turtle Creek at Walnut Grove
HOME Funds Grant $565,000
Eugene SDC Waiver 94,500
EWEB SDC Waiver 35,000
Lane County Road Funds 220,000
The Housing and Community Services Agency of Lane County (HACSA) will develop the 4.7 acres
adjacent to its 32 existing units at Walnut Park Apartments. This will be the final phase of development
at this 40-acre site which the City purchased with CDBG funds and landbanked for affordable housing in
1990. HACSA will add 27 units of permanently affordable rental housing and sell 20 single-family lots
for market-rate homes. Construction of these homes will be undertaken by private builders as in earlier
phases of the Walnut Grove mixed-income development. The sale of these lots, less the cost of
infrastructure improvements, will result in approximately $480,000 in future program income to the
City's CDBG program. HACSA will also use a $94,500 Eugene SDC waiver, a $35,000 EWEB water
SDC waiver, and $220,000 in Lane County road funds for the development. The new, low-income
housing will consist of 25 two-bedroom units and two three-bedroom units with rents ranging from $395
to $425. The target population will be families at 50% of area median income.
Scattered Site Homeownership Units
HOME Funds Grant $150,000
St. Vincent dePaul will partner with Gansen Construction to provide five low-income, single-family
homeownership units in Eugene. Over the next year, Gansen Construction will locate available vacant
lots and construct five three-bedroom homes. Each home will have 1,193 square feet, two bathrooms, a
porch, and a two-car garage. Upon completion, St. Vincent dePaul will purchase the homes for
approximately $125,000 from Gansen, using $30,000 in HOME funds towards each purchase, and sell
them to families with incomes no more than 75% of area median. HOME regulations allow use of funds
for households with incomes up to 80% of area median. The estimated monthly cost to the new
homeowner will be $652 which includes (principle/interest/taxes/insurance) plus $153 (utilities) for a total
monthly cost of $805. The $30,000 per unit in HOME funds will remain as a silent second on the homes
for a minimum often years, if continuously occupied by an income-eligible family. If the home is ever
sold to a non-qualifying family, the $30,000 will return to the City's HOME account.
Timing
Both projects will be under construction in 2004-05.
OPTIONS
The council may approve or not approve the HPB recommendations.
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STAFF RECOMMENDATION
Staff recommends that the council approve funding for two low-income housing projects recommended
by the intergovernmental HPB.
SUGGESTED MOTION
Move to approve the housing development activities recommended by the HPB as described in this
briefing statement.
ATTACHMENTS
A. Allocations Subcommittee Members
B. Housing Policy Board Members
FOR MORE INFORMATION
Staff Contact: Linda Dawson
Telephone: 541-682-5071
Staff E-Mail: linda.1, dawson~ci, eugene, or.us
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ATTACHMENT A
Eugene Allocations Subcommittee
Norton Cabell
Patricia Hadley
Connie Hedberg
John VanLandingham
John Wagner
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ATTACHMENT B
Housing Policy Board Members
Lea Allen
Norton Cabell
Roxie Cuellar
Bob Doppelt
Bobby Green
Patricia Hadley
Gary Pape'
Dave Ralston
John VanLandingham
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