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ADOPT A RESOLUTION AMENDING THE 2022 AFFORDABLE HOUSING LOAN PROGRAM ALLOCATION
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RECOMMENDATION
It is recommended that the City Council adopt a resolution:
1. Amending Resolution 2022-07-26-1505 2022 Affordable Housing Loan Program Allocation removing the ten percent cap of City funding available for pre-development expenditures that affected the following four projects:
a. $600,000 to Visionary Home Builders for the 72-unit Casa de Mariposa project;
b. $2,227,632 to Delta Community Developers Corp. (Housing Authority of the County of San Joaquin) for the 51-unit Park Center Apartments project;
c. $2,242,609 to Service First of Northern California for the 105-unit Fontana Towers project; and
d. $816,821 to the Central Valley Low Income Housing Corp. and Stocktonians Taking Action to Neutralize Drugs (STAND) for the 30-unit Shared Housing Infill Project for the Homeless.
2. Authorize the City Manager, or designee, to take actions that are necessary and appropriate to carry out the purpose and intent of this resolution, including the execution of loan documents and the reallocation of funding sources.
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Summary
On July 27, 2022, City Council approved resolution 2022-07-26-1505 (Attachment A) that contained a ten percent cap on predevelopment funds on four projects.
After further staff review and consultation from the Housing and Urban Development Department (HUD) regarding the funding distributions, staff was advised there is not a requirement to have a ten percent cap on predevelopment funds.
Staff recommends the City Council adopt the amended resolution eliminating the ten percent limit of City funding available for pre-development expenditures.
DISCUSSION
Background
On December 17, 2021, the Economic Development Department released a Notice of Funding Availability (NOFA) notifying interested parties of the availability of funds for the development or preservation of affordable housing units in Stockton.
On July 27, 2022, staff brought forward the 2022 Affordable Housing Loan Program Allocation recommendations. At that time, City Council approved Resolution 2022-07-26-1505 adopting the Affordable Housing Loan Program Allocations.
Staff has been working diligently with HUD and during those discussions, staff was advised there is not a requirement to have a ten percent cap on predevelopment funds.
FINANCIAL SUMMARY
No General Fund dollars will be used for these projects and there is no financial impact.
Attachment A - Resolution 2022-07-26-1505