title
AUTHORIZE AFFORDABLE HOUSING AND SUSTAINABLE COMMUNITIES PROGRAM GRANT APPLICATION AND COOPERATIVE AGREEMENT WITH VISIONARY HOME BUILDERS
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a resolution authorizing the City Manager to:
1. Submit a joint application with Visionary Home Builders to the California Strategic Growth Council for grant funding under the Affordable Housing and Sustainable Communities Program for the Hunter Street Apartments project.
2. Execute a Cooperative Agreement with Visionary Home Builders for the Hunter Street Apartments project.
It is further recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of this resolution.
body
Summary
On January 29, 2016, the California Strategic Growth Council and the California Department of Housing and Community Development (HCD) announced the availability of approximately $320 million in funding for the Affordable Housing and Sustainable Communities (AHSC) Program. The program funds land-use, housing, transportation, and land preservation to support infill and compact development. These projects reduce greenhouse gas emissions by improving mobility options and accessibility to affordable housing, employment centers, and key destinations via low-carbon transportation options (walking, bicycling, and transit).
On March 16, 2016, Visionary Home Builders (Visionary) submitted a concept application, with the City as joint applicant, to acquire funding through the AHSC Program. Visionary is proposing to construct an affordable housing project called the “Hunter Street Apartments” project. The Hunter Street Apartments project is a mixed-use 74-unit affordable housing development with 3,000 square feet of social service office space. The project is located along the east side of Hunter Street between Poplar Street and Flora Street. The project is within the limits of a federally funded City project along Hunter Street, which will build pedestrian and bicycle oriented safety improvements. Accordingly, funds awarded by the AHSC Program that are eligible for street improvements could be used to enhance the City’s federally funded projects by constructing improvements which are not eligible for federal funds. As part of the joint application, Visionary is requesting a total of $8,253,370 for the affordable housing improvements, and $688,000 for transportation related improvements along Hunter Street. The total application request is for $8,941,370 in AHSC funds.
The AHSC concept application that has been submitted is a preliminary concept proposal. Only successful concept proposals are invited to submit formal applications for funding. Staff is pleased to report that the preliminary concept proposal was approved, and a formal application for funding is now required, along with a resolution and executed agreement between the City and Visionary. A full application is due on June 20, 2016. Staff recommends that Council adopt a resolution authorizing the City Manager or his designee to submit a joint application and execute a Cooperative Agreement with Visionary for the Hunter Street Apartments project.
DISCUSSION
Background
In September 2008, Senate Bill (SB) 732 (Chp. 729, Stats. 2008) was signed into law creating the Strategic Growth Council (SGC). The SGC is a cabinet level committee that is tasked with coordinating the activities of State agencies. The SGC created the AHSC Program to further the purposes of Assembly Bill (AB) 32 (Chp. 488, Stats. 2006) and SB 375 (Chp. 728, Stats. 2008) by investing in projects that reduce greenhouse gas emissions by supporting more compact, infill development patterns, encouraging active transportation and transit usage, and protecting agricultural land from sprawl development. Funding for the AHSC Program is provided from the Greenhouse Gas Reduction Fund, an account established to receive Cap-and-Trade auction proceeds. The Cap-and-Trade Program, a key strategy for achieving the greenhouse gas emission reduction goals of AB 32, issues a limited number of greenhouse gas emissions (allowances) permits each year. A portion of these allowances can be purchased from the State at quarterly auctions, thereby generating auction proceeds.
The HCD implements the transportation, housing, and infrastructure component of the AHSC Program.
On January 29, 2016, the SGC and HCD issued a Notice of Funding Availability for approximately $320 million in funding from the AHSC Program for 2015-2016. The AHSC Program provides grants and/or loans to projects that will achieve greenhouse gas emission reductions and benefit disadvantage communities. The intent is that funded projects will increase accessibility of affordable housing, employment centers, and key destinations via low-carbon transportation resulting in fewer vehicle miles traveled.
Visionary met with City staff regarding a proposed AHSC Program project called the “Hunter Street Apartments”. The Hunter Street Apartments project is a mixed-use infill development with 74 units of affordable housing and 3,000 square feet of social service office space. This project will repurpose an existing building located along the east side of Hunter Street between Poplar Street and Flora Street. The project will bring affordable housing to an underutilized area of Downtown Stockton. The project will also include some sidewalk improvements and install trees to encourage active transportation, as well as transit stop amenities.
The City recently received federal Highway Safety Improvement Program (HSIP) funding for the Hunter Street Road Diet project between Harding Way and Miner Avenue to address specific safety concerns. The funding can only be used for specific safety improvements, and aesthetic improvements and similar amenities are not eligible.
City staff has coordinated improvements funded by the City’s federal HSIP grant project noted above, and the AHSC improvements proposed by Visionary. Visionary requested that the City enter into a joint application for the AHSC Program for the Hunter Street Apartments project. Under the AHSC Program, a joint application with a public agency scores much better than a singular application. The project proposed by Visionary is situated within the limits of the City’s HSIP project mentioned above (Attachment A). In addition to funding infill mixed use development, the AHSC Program funding can also fund roadway and frontage improvements. Therefore, a joint application will help bring additional roadway and frontage improvements that could not otherwise be funded by the City’s federal HSIP project. As part of the joint application, Visionary is requesting a total of $8,253,370 for affordable housing improvements, and $688,000 for transportation related improvements along Hunter Street. The total application request is for $8,941,370 in AHSC funds.
Present Situation
The AHSC Program has a two-step submittal process. The first step requires the applicant to submit a concept proposal. If the concept proposal is approved, the applicant is invited to submit a formal application for funding. The AHSC strongly encourages joint applications between private and/or non-profits with local agencies to show a strong partnership and increase the total score an application receives. On March 16, 2016, Visionary submitted the Hunter Street Apartments project proposal, with the City as joint applicant, to acquire funding through the AHSC Program.
Staff is pleased to report that the concept proposal for the Hunter Street Apartments project was approved. A formal joint application is now required, along with an executed agreement between any and all participants. Additionally, a resolution will be required authorizing the City Manager to submit a joint application with Visionary to the California Strategic Growth Council for grant funding under the AHSC Program. A full application is due on June 20, 2016.
Staff recommends that Council approve a resolution authorizing the City Manager or his designee to submit a joint application and execute a Cooperative Agreement with Visionary for the Hunter Street Apartments project. Any funds awarded by the AHSC Program that are eligible for street improvements will be used to assist in constructing the infrastructure and amenities not fundable by the HSIP funds.
FINANCIAL SUMMARY
If AHSC awards funds to the City, and Visionary, the funds will be provided in the form of a grant. The grant does not require any matching funds from the City.
If the City is awarded funding, the funding will be appropriated in the new Capital Improvement Program budget cycle or under separate Council action depending on the grant timelines. Staff will return to Council to accept the grant, if awarded. There is no impact to the City’s General Fund or to any other unrestricted fund as a result of taking the recommended action.
Attachment A - Vicinity Map