title
ADOPT A RESOLUTION APPROVING AN ADDITIONAL GRANT AWARD TO DELTA COMMUNITY DEVELOPERS CORPORATION FOR THE EDISON HOUSE PROJECT
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a resolution:
1. Approving a $479,000 Prohousing Incentive Pilot (PIP) Program grant to Delta Community Developers Corporation (DCDC) for demolition, abatement, and construction activities at the Edison House Project, located at 645 West Harding Way; and
2. Authorizing the City Manager, or designee, to execute all documents and take any necessary and appropriate actions to carry out the purpose and intent of the Resolution.
body
Summary
In 2023, the City of Stockton applied for and received a “Prohousing” designation from the California Department of Housing and Community Development (“HCD”). This designation allowed the City to apply for and receive $2,370,000 in Prohousing Incentive Pilot Program (“PIP”) funds from HCD to facilitate affordable housing development. In October 2024, City Council approved an award of PIP funds in the form of a grant to Delta Community Developers Corporation (“DCDC”) in the amount of $1,891,000 for the affordable housing project at 645 West Harding Way - now known as Edison House.
With PIP funds expiring on June 30, 2025, staff recommend that the City Council authorize an additional grant to DCDC in the amount of $479,000 for demolition and abatement activities at Edison House to avoid a loss of funding. All eligible expenditures must take place before June 30, 2025 to be eligible for reimbursement.
DISCUSSION
Background
The City of Stockton is designated as a “Prohousing” community and was awarded $2,370,000 in PIP funds for eligible activities, including predevelopment, development, acquisition, rehabilitation, and preservation of affordable housing (Attachment A - Resolution 2023-03-07-1205-01, and Attachment B - Resolution 2023-03-07-1205-02).
In July 2024, the City of Stockton’s Economic Development Department (EDD) released the 2024 Real Property Acquisition Notice of Funding Availability (NOFA). The NOFA included the available $2,370,000 in PIP funds, seeking project proposals from qualified nonprofit housing developers and/or housing or service providers for the acquisition of real property to be used for the development of affordable housing. At the time, the approved PIP scope of work was for the acquisition of single-family housing units to create scattered-site housing.
Through the NOFA process, no eligible projects were submitted for scattered-site housing. Staff worked with HCD to rescope the PIP award to allow for the acquisition and rehabilitation of buildings for the creation of affordable housing. In October 2024, City Council authorized a PIP award in the amount of $1,891,000 to DCDC for the acquisition of the property located at 645 West Harding Way for the development of an affordable housing project (Attachment C - Resolution 2024-10-01-1209).
Present Situation
The remaining $479,000 in PIP funds were originally allocated to staff time and other eligible expenditures associated with case management support, utilities, and maintenance for prospective scattered-site housing projects. Due to the scope of the PIP funds changing to general affordable housing predevelopment and construction costs, as well as cost efficiencies from staff in the NOFA development process, the balance of PIP funds need to be encumbered and expended to avoid the loss of funding.
Since DCDC previously received PIP funds for the acquisition of 645 West Harding Way for the Edison House Project, the most efficient means of expending the funds is to award the $479,000 to DCDC for demolition and abatement activities.
FINANCIAL SUMMARY
The proposed resolution will have no financial impact on the General Fund or any other unrestricted fund. The $479,000 of PIP funding will be payable from special grant fund 280, sub-fund 281. If approved, the $479,000 will be amended into the existing grant agreement with DCDC for the previously awarded PIP funds.
Attachment A - Resolution 2023-03-07-1205-01
Attachment B - Resolution 2023-03-07-1205-02
Attachment C - Resolution 2024-10-01-1209