title
MODIFY PREVIOUSLY APPROVED AFFORDABLE HOUSING AND SUSTAINABLE COMMUNITIES PROGRAM GRANT APPLICATION PER DIRECTION FROM THE CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a resolution authorizing the City Manager to:
1. Rescind Resolution No. 2016-05-24-1205 previously adopted on May 24, 2016.
2. Adopt a new resolution to include additional information requested by the California Department of Housing and Community Development (HCD).
3. Authorize the City Manager to submit a joint application with Visionary Home Builders (Visionary) to the Strategic Growth Council (SGC) 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 March 16, 2016, Visionary submitted a concept application, with the City as joint applicant, to acquire funding through the Affordable Housing and Sustainable Communities (AHSC) Program. Anticipating approval of this concept application, on May 24, 2016, Council authorized the City Manager to submit a joint formal application with Visionary for funding to the AHSC Program (Resolution No. 2016-05-24-1205) (Attachment A - Previously Adopted Resolution). The joint concept was subsequently approved, and formal applications were submitted on June 20, 2016; however, the California Department of Housing and Community Development (HCD) (Grantor) has requested technical revisions to the resolution that Council approved on May 24, 2016, to incorporate information that was not required before. HCD requests the resolution include the total application request amount and sub-amounts for Affordable Housing, Sustainable Transportation Infrastructure, Transit-Related Amenities, and Program Activities. HCD is allowing a newly adopted resolution to be submitted by July 31, 2016. Staff recommends Council adopt a new resolution containing additional requested details, which will result in a rescission of Resolution No. 2016-05-24-1205.
DISCUSSION
Background
On January 29, 2016, the HCD (Grantor) 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.
On March 16, 2016, Visionary submitted a concept application with the City as joint applicant to acquire funding through the AHSC Program. Anticipating approval of the concept application, on May 24, 2016, Council authorized the City Manager to submit a formal application for funding to the AHSC Program (Resolution No. 2016-05-24-1205).
Present Situation
Staff is pleased to report that Visionary and the City’s joint concept application was approved. Formal applications were submitted on June 20, 2016; however, during the final application process, the HCD requested technical revisions of the resolution that Council approved on May 24, 2016, to include information that had not previously been required. As a condition of funding, the State has requested that the new resolution include the total application request amount, and sub-amounts for Affordable Housing, Sustainable Transportation Infrastructure, Transit-Related Amenities, and Program Activities. The new resolution will complete the application process.
The joint application details that Visionary is requesting a loan in the amount of $8,228,370 for Affordable Housing Development, a grant for $449,000 for Sustainable Transportation Infrastructure, a grant for $239,000 for Transit-Related Amenities, and a $25,000 grant for Program Activities as defined in the AHSC Program Guidelines adopted by the Strategic Growth Council on December 17, 2015. The total application request is for $8,941,370 in AHSC funds. HCD requires the newly adopted resolution to be submitted by July 31, 2016. Staff recommends Council adopt the new resolution, which rescinds Resolution No. 2016-05-24-1205 and will assist staff in fully completing the joint application process.
FINANCIAL SUMMARY
If AHSC awards funds to the City and Visionary, the funds will be provided in the form of a grant for the transportation infrastructure, and a loan for the Affordable Housing Development. 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 - Previously Adopted Resolution