Item 2C: Approval of Funding for Affordable Housing

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ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Approval of Funding for Housing Projects Affordable to Low-Income Persons Meeting Date: March 10, 2008 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 the use of Community Development Block Grant (CDBG) funds for two projects that will provide affordable housing to low-income persons. Each project was selected through a special Housing Request for Proposals (RFP) for use of CDBG funds. BACKGROUND The City of Eugene established current goals and programs for the development of housing affordable to low-income people through the adopted 2005 Housing and Urban Development (HUD) Consolidated Plan. The Consolidated Plan guides the use of Federal HOME Investment Partnership Program (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 System Development Charge (SDC) Waivers and the Low-Income Rental Housing Property Tax Exemption to further enable the development of affordable housing. Each year on May 1, HUD conducts a timeliness test to confirm that the City is expending CDBG funds in accordance with regulations. Both new grant dollars and program income are included in the calculation. Due to a combination of unexpected program income and delays in expenditures for approved projects, it was necessary to identify additional uses for CDBG funds that could be executed within a limited timeframe. With guidance from the CDBG Advisory Committee, staff identified uncommitted CDBG funds from the following areas: Housing Development ($125,000); Housing Rehabilitation ($410,000); Non-profit Capital ($70,000); Business Development Fund ($95,000); and $30,000 in unallocated funds. Given that most of the funds were originally intended for use in housing projects, staff developed a special request for proposals (RFP) for acquisition of existing housing and released the RFP in December 2007. The RFP offered a total of $730,000 in CDBG funds for acquisition of existing housing to be made available to low-income households. Two proposals were received through the RFP. Submitted 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). The Housing Policy Board recommends two proposals for funding. They are as follows: F:\CMO\2008 Council Agendas\M080310\S0803102C.doc