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Home My WebLink AboutItem 2C: Approval of Funding for Housing Project for Low-Income Persons and att'sA-C ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Approval of Funding for Housing Project Affordable to Low-Income Persons Meeting Date: September 28, 2009 Agenda Item Number: 2C Department: Planning & Development Staff Contact: Stephanie Jennings www.eugene-or.gov Contact Telephone Number: 682-5529 ISSUE STATEMENT The City Council is asked to approve the use of HOME Investment Partnership Program (HOME) funds and other resources for an affordable housing development identified through the 2009 Housing Request for Proposals (RFP). BACKGROUND The City of Eugene established current goals and programs for the development of housing affordable to low-income people, through the adopted 2005 HUD Consolidated Plan. The Consolidated Plan guides the use of Federal HOME funds and Community Development Block Grant (CDBG) funds over a five- year period. Each year, the City Council approves the allocation of federal funds through a One-Year Action Plan. In addition to use of federal funds, the City of Eugene has established Systems Development Charge (SDC) Waivers and the Low-Income Rental Housing Property Tax Exemption to further enable the development of affordable housing. Pursuant to the Consolidated Plan and One-Year Action Plan, staff develops and releases an annual RFP for affordable housing development projects. The intergovernmental Housing Policy Board advises staff on the development of the RFP, reviews proposals, and makes funding recommendations to the City Council. The City issued the 2009 Housing RFP for affordable housing projects in March 2009 and proposals were due in May 2009. The 2009 RFP sought proposals for: (1) new affordable housing development on the three-acre Willakenzie School landbank site, HOME Investment Partnership Program funds, Eugene System Development Charge waivers, and Eugene Water & Electric Board System Development Charge grants; and (2) acquisition of existing housing to be converted to affordable housing, including use of HOME funding, Eugene SDC waivers, and EWEB SDC waivers. A total of $770,000 in HOME funds, approximately $852,000 in Eugene SDC waivers, and $100,000 in EWEB SDC grants were available through the RFP process. Available funds for the 2009 RFP process total $1,722,000. Two proposals were received through the 2009 Housing RFP for use of HOME funds and other local resources. The two proposals were reviewed by staff, the Eugene Allocations Committee of the Housing Policy Board, and the full Housing Policy Board (see Attachment A for member list). A brief summary of each proposal is included below: Darrow Gardens—St. Vincent de Paul: St. Vincent de Paul Society of Lane County, Inc. (SVdP) requests funding for Darrow Gardens, a townhome-style development which will provide 48 rental units Z:\CMO\2009 Council Agendas\M090928\S0909282C and att'sA-C.doc to those earning below 50% and 60% of Area Median Income (AMI), including four units set aside for VetLIFT clients. SVdP requested $300,000 in HOME funds and $188,300 in Eugene SDCs, and $60,320 in EWEB SDC grants, along with a 20-year Property Tax Exemption for Low-Income Rental Housing from the City of Eugene. The project includes a HeadStart facility, community center, children’s play area, and a 4,250 square-foot community garden area. Willakenzie Crossing—Metropolitan Affordable Housing Corporation: Metropolitan Affordable Housing Corporation (Metro) requests funding for Willakenzie Crossing, a community apartment-style development which will provide 56 rental units to those below 50% and 60% of AMI, including 16 units set aside for persons with developmental disabilities. Metro requests $670,000 in HOME funds, $185,000 in Eugene SDC waivers, and $60,000 in EWEB waivers, along with a 20-year Property Tax Exemption for Low-Income Rental Housing from the City of Eugene. The project also includes a community center, children’s play area, and a 1,382 square-foot community garden area. A schematic design of the project is attached. The Housing Policy Board recommends selection of the Willakenzie Crossing proposal from Metro. This proposal creates a unique opportunity to provide housing for persons with developmental disabilities in close proximity to educational opportunities and other services tailored to their needs. Metro is partnering with SAIL Housing to coordinate and/or provide services required by the developmentally disabled population. Numerous letters of support were submitted along with the Willakenzie Crossing proposal. Comments from many organizations, partners and individuals highlighted Metro’s leadership in developing projects that meet the needs of our community, their continued effort to collaborate with others, and Metro’s willingness to promote and assist in programs offered by other community organizations, among other things. Metro and City staff have and will continue working with the community and the Willakenzie Grange to address concerns raised by neighbors and grange members in an effort to minimize impacts to the neighborhood. RELATED CITY POLICIES The City Council has established a priority to address homelessness in Eugene. The proposed project directly supports this objective by preserving and expanding affordable housing opportunities for very and extremely low-income families and individuals. In addition, the project is targeted to a special needs population that is currently under-served in Eugene. The City of Eugene affordable housing development programs support a number of the City Council Adopted Growth Management Policies. The recommended project directly supports the following Growth Management Policies: ? Promote construction of affordable housing. ? Encourage in-fill, mixed-use, redevelopment, and higher density development. ? Improve the appearance of buildings and landscapes. ? Provide for a greater variety of housing types. The City Council has established a Housing Dispersal Policy which seeks to maximize housing choice for low-income families and integrate housing throughout the City of Eugene. The project is located in the appropriate Census Tract according to the Housing Dispersal Policy. Z:\CMO\2009 Council Agendas\M090928\S0909282C and att'sA-C.doc COUNCIL OPTIONS The City Council has three options: 1.Approve funding for Willakenzie Crossing as recommended by Housing Policy Board. 2.Approve funding for Darrow Gardens. 3.Decline to approve funding for either proposed project. CITY MANAGER’S RECOMMENDATION The City Manager recommends the following: Approve the use of: 1) $670,000 in HOME funding; 2) $185,000 in Eugene SDC Waivers and 3) approve the transfer of the Willakenzie School Landbank site for the development of Willakenzie Crossing by Metropolitan Affordable Housing Corporation, along with a 20-year Property Tax Exemption for Low-Income Rental Housing from the City of Eugene. SUGGESTED MOTION Move to approve the use of: 1) $670,000 in HOME funding; 2) $185,000 in Eugene SDC Waivers and 3) approve the transfer of the Willakenzie School Landbank site for the development of Willakenzie Crossing by Metropolitan Affordable Housing Corporation. ATTACHMENTS A.List of Allocations Committee Members and Housing Policy Board Members B.Map of Landbank Site and surrounding area C.Design for Willakenzie Crossing FOR MORE INFORMATION Staff Contact: Stephanie Jennings, Grants Manager Telephone: 682-5529 Staff E-Mail: Stephanie.a.jennings@ci.eugene.or.us Z:\CMO\2009 Council Agendas\M090928\S0909282C and att'sA-C.doc ATTACHMENT A Allocations Committee Members Norton Cabell Marcia Edwards Brita Fischer Bob Kline Susannah Meininger Hugh Prichard Chris Pryor Virginia Thompson John Van Landingham John Wagner (chair) Housing Policy Board Members Norton Cabell Brita Fischer Bill Dwyer, Lane County Commissioner Susannah Meininger Dave Ralston, City of Springfield Councilor Chris Pryor, City of Eugene Councilor Virginia Thompson John Van Landingham John Wagner Z:\CMO\2009 Council Agendas\M090928\S0909282C and att'sA-C.doc ATTACHMENT B Z:\CMO\2009 Council Agendas\M090928\S0909282C and att'sA-C.doc ATTACHMENT C Z:\CMO\2009 Council Agendas\M090928\S0909282C and att'sA-C.doc