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HomeMy WebLinkAboutItem 5k. Allocation of Affordable Housing Funds to HASLO for the Anderson Hotel and Transitions Mental Health Association for Palm Street Studios Item 5k Department: Community Development Cost Center: 4008 For Agenda of: 4/19/2022 Placement: Consent Estimated Time: N/A FROM: Michael Codron, Community Development Director Prepared By: Teresa McClish, Housing Policy and Programs Manager SUBJECT: ALLOCATION OF AFFORDABLE HOUSING FUNDS TO THE HOUSING AUTHORITY OF SAN LUIS OBISPO (HASLO) FOR THE ANDERSON HOTEL ($1.7M) AND TO TRANSITIONS MENTAL HEALTH ASSOCIATION FOR PALM STREET STUDIOS ($300K) RECOMMENDATION Adopt a Resolution entitled “A Resolution of the City Council of the City of San Luis Obispo, California, approving Affordable Housing Fund Awards to the Housing Authority of San Luis Obispo for the Anderson Inn in the amount of $1,700,000 and Transitions Mental Health Association for the Palm Street Studios in the amount of $300,000” allocating a total of $2,000,000 of State and Local Fiscal Recovery funds to be appropriated for the purpose of funding eligible affordable housing projects in the 2022- 23 Supplemental Budget, as follows: 1) Approve an allocation of Affordable Housing Funds in the amount of $1,700,000 to assist the Housing Authority of San Luis Obispo (HASLO) with the acquisition and rehabilitation of the Anderson Hotel (68 units for extremely low-income, special needs people); and 2) Approve an allocation of Affordable Housing Funds in the amount of $300,000 to assist Transitions Mental Health Association (TMHA) with the property acquisition and rehabilitation for 8 supportive housing apartments that will be dedicated to low- income persons, located at 1118 Palm Street. DISCUSSION Background The congressional American Rescue Plan Act (ARPA) approved $350 billion for state, local, territorial, and Tribal governments in form of the Coronavirus State and Local Fiscal Recovery Funds. This historic bill provides economic stimulus funding to the City of San Luis Obispo to reimburse lost revenue and help support economic recovery efforts. An initial $8.9 million was programmed into the 2021 -23 Supplemental budget and it has since been increased to $13.5 million. Page 283 of 1192 Item 5k At the February 15, 2022, City Council meeting, the Council directed staff to prioritize ARPA funding towards housing and homelessness, and at the March 1, 2022 , City Council meeting, the Council directed staff to return at the 2022-2023 Supplemental Budget to appropriate $2 million towards affordable housing that targets extremely low and very low income and/or homeless persons most impacted by COVID -19 and allocated through the City’s Affordable Housing Fund1. Lastly, unrelated and yet noteworthy, the City Council directed $1 million to the Infrastructure Investment Fund; and $100,000 to augment the Human Relations Commission annual Grants in Aid (GIA) cycle one time to further support health and human services programs or projects. All of this is subject to final adoption of the Supplemental Budget which is scheduled for a public hearing for adoption on June 7, 2022. Overview of Requests The Housing Authority of San Luis Obispo (HASLO) is requesting $1,700,000 to assist with the acquisition and preservation of the Anderson Hotel as affordable housing (Attachment B). HASLO has leased the property and has continued to work with the new private property owner who has indicated they wish to sell the property. The City’s 6th Cycle Housing Element has identified the property as at risk of converting to another use, thus losing 68 units for the extremely low-income, special needs demographic that historically has occupied the hotel. This population has been significantly impacted by COVID-19 and is at risk of homelessness should permanent affordability not be secured. The City Affordable Housing Funds will leverage state and federal funds including a $2 million Congressional Community Project sponsored by Congressman Carbajal, and ARPA funds allocated by the county. HASLO will commit 68 project -based Section 8 vouchers to the property, providing $700,000 in annual rent subsidies for residents at the Anderson Hotel, and ensuring that residents do not pay more than 30% of their actual income for rent, including utilities. Transitions-Mental Health Association (TMHA) is requesting $300,000 for gap funding for the acquisition and rehabilitation of a structure to convert to six supportive housing apartments, add two separate on-bedroom accessory dwelling units, and one small office (Attachment C). The project is utilizing funding from the No Place Like Home grant and the San Luis Obispo’s Housing NOW program that THMA launched in 2014 (called 50Now) with the Housing Authority of San Luis Obispo (HASLO) to identify the 50 most vulnerable homeless individuals in the County and place them in permanent housing, and provide them with behavioral health treatment and services. The property will be deed - restricted affordable for a minimum of 55 years, available to TMHA clients who are low income. COVID-19 has impacted the supply of housing and this housing will enable the City to support a vulnerable population in perpetuity. 1 Council agenda report March 1, 2022 https://opengov.slocity.org/WebLink/DocView.aspx?id=156816&dbid=0&repo=CityClerk Page 284 of 1192 Item 5k Policy Context Goal number 1 in the City’s Housing Element (HE) is Safety, and Program 1 .7 states “Continue to support local and regional solutions to homelessness by funding supportive programs services and housing solutions.” The Anderson Hotel is listed and specifically discussed in Chapter Five of the Housing Element as one of three housing developments that is at risk of losing affordability restrictions and converting to market rate. Additionally, providing financial assistance to affordable housing projects is a theme supported throughout the HE. HE Goal 2 is Affordability, which specifically states “Accommodate affordable housing production that helps meet the City’s quantified objectives.” HE Program 2.9 states “Assist with the issuance of tax-exempt bonds, tax credit financing, loan underwriting or other financ ial tools to help develop or preserve at least 20 affordable units annually through various programs.” Goal 3 in the HE is Housing Conservation, to Conserve existing housing and prevent the loss of safe housing and the displacement of current occupants, and Policies 3.2, 3.3, 3.5 and Programs 3.8 and 3.9 respectively state:  “Discourage the removal or replacement of housing affordable to extremely low, very-low, low- and moderate income households, and avoid permit approvals, private development, municipal actions or public projects that remove or adversely impact such housing unless such actions are necessary to achieve General Plan objectives and: (1) it can be demonstrated that rehabilitation of lower-cost units at risk of replacement is financially or physically infeasible, or (2) an equivalent number of new units comparable or better in affordability and amenities to those being replaced is provided, or (3) the project will correct substandard, blighted or unsafe housing; and (4) removal or replacement will not adversely affect housing which is already designated, or is determined to qualify for designation as a historic resource”.  “Encourage the construction, preservation, rehabilitation or expansion of residential hotels, group homes, integrated community apartments, and single- room occupancy dwellings;”  “Encourage and support creative strategies for the rehabilitation and adaptation and reuse of residential, commercial, and industrial structures for housing;” and  “Continue to monitor and track affordable housing units at-risk of being converted to market rate housing annually and verify that tenants are properly noticed and aware of their rights. Provide resources to support the Housing Authority, and local housing agencies, purchase and manage at-risk units.”  “Work annually with non-profit organizations, faith-based organizations, or the Housing Authority of the City of San Luis Obispo to encourage rehabilitation of residential, commercial, or industrial buildings to expand extremely low, very -low, low or moderate income rental housing opportunities.” This request of HASLO and TMHA to increase housing affordability for low -income persons is in alignment with these goals and programs. Page 285 of 1192 Item 5k AWARD CRITERIA In making its recommendations to City Council for how Affordable Housing funds should be allocated for affordable or special needs housing projects , staff used adopted criteria for the Affordable Housing Fund program (Attachment D), including eligibility, need, suitability, timing, financial effectiveness, and readiness. The following is an analysis of the request relative to the criteria. Eligibility. Use of the AHF for the requested purpose will increase or improve the City’s affordable housing inventory and promote General Plan policies regarding housing, as follows: Both HASLO’s and TMHA’s projects are eligible for Affordable Housing Funds because it increases the City’s affordable housing inventory and implements several General Plan policies regarding housing. The projects will increase the supply of affordable housing for sixty-eight and eight residents or families respectively, who are within the extremely low, very low, or low-income range. Need. There exists a substantial or overarching need for the type of units to be assisted, as follows: HASLO’s longest waiting list in terms of unit types is for 1-bedroom or studio units. The Anderson Hotel consists of all 1-bedroom and studio apartments that are identified as at risk for being lost in the City’s affordable housing inventory. TMHA houses over 250 clients annually with the goal of creating supported, permanent housing for adults with mental illness. Once opened, Palm Street Studios will provide eight housing units to this population. TMHA receives over 300 applications for their housing units, which demonstrates a clear continued need for this type of supported housing. Suitability. The projects to be assisted are appropriate for location both in terms of land use and design, as follows: Both proposed housing acquisitions has been chosen for close proximity to TMHA and County services. The Anderson Hotel is in the middle of downtown SLO. Palm Street Studios is .7 miles from Hope House Wellness Center on 1306 Nipomo Street, one mile away from TMHA headquarters on High Street, 1.1 miles from County Behavioral Health on Johnson Avenue, and 2.4 miles from Growing Grounds Nursery on Orcutt Road. Both projects are near the Ludwick Community Center and Santa Rosa Street, with easy access to rapid transit. Page 286 of 1192 Item 5k Timing. The projects would better serve the City’s needs if it were built immediately as opposed to later, as follows: Both projects provide immediate housing. HASLO units include 68 Section 8 voucher eligible units for clients at or below 60% of the Area Median Income and long-term affordability would be ensured through recording of a new 55 -year deed restriction. TMHA received around 300 applications for the 34 units under construction in the Bishop Street Studios project, meaning there are approximately 266 community members in need of safe, supportive housing. TMHA knows that stable housing and recovery go hand-in-hand. Palm Street Studios will bring TMHA a few steps closer to providing housing for the hundreds of San Luis Obispo residents living with mental health diagnoses. Financial Effectiveness. But for the requested assistance, the project would not be economically feasible; or AHF funding “leverages” significant additional funding from other sources, as follows: Funding for the Anderson Hotel would constitute 4.6% of project funding, equivalent to $25,000 per unit (68 units). The project leverages direct congressional appropriation ($2 million), County ARPA funds ($2 million) and low-income housing tax credits ($26.4 million). TMHA is currently in escrow for a purchase price of $1,185,000. The cost to convert the house to six (6) one-bedroom units and two (2) one-bedroom ADUs is approximately $1,815,000. TMHA is applying for $2.03M in No Place Like Home grant funding from the State of California and they have been successful in the past two years with an award of $1.49 million to purchase six units in the City of San Luis Obispo. While the numbers continue to get clearer, and relocation fees are an unbudgeted expense of $60,000, THMA anticipates the financial gap will be $865,000. TMHA will raise a portion of this through a private capital campaign, and requests $300,000 in housing funds from the City of San Luis Obispo. Readiness. The project has all necessary City approvals and is ready to proceed, as follows: Both the Anderson Hotel and the Palm Street Studios projects do not need to obtain any City discretionary approvals. Award of the City will enable HASLO to proceed with a highly competitive application for state low-Income tax credits in June 2022 and position the project to move forward with acquisition within the year. Upon award of the City, THMA plans to immediately close escrow on the property. HASLO and THMA will then make improvements to the units as needed and submit any plans to the City Building division as necessary Page 287 of 1192 Item 5k Public Engagement As this is a request for Affordable Housing Funds, no public engagement is required. ENVIRONMENTAL REVIEW The California Environmental Quality Act does not apply to the recommended actions in this report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378. It is speculative during this funding phase to fully analyze the potential environmental impacts of the rehabilitation of each projects until full building plans are submitted. FISCAL IMPACT Budgeted: Yes Budget Year: 2021-2022 Funding Identified: Yes Fiscal Analysis: Funding Sources Total Budget Available Current Funding Request Remaining Balance Annual Ongoing Cost General Fund $ $ $ $ State Federal Fees Other: AHF $2,000,000 $2,000,000 0 0 Total $2,000,000 $2,000,000 $0 0 This action will commit $2 million from the City’s allocation of the State and Local Fiscal Recovery Fund in accordance with the U.S. Treasury Final Rule for American Rescue Plan Act funding use. Page 288 of 1192 Item 5k ALTERNATIVES 1. Do not authorize AHF awards for the proposed projects. This action is not recommended because the project directly aligns with the Major City Goal for Housing and Homelessness and is consistent with the Housing Element of the General Plan. 2. Approve AHA awards for different amounts. The City Council can approve an award for a different amount other than the recommendation. This is not recommended as the projects have carefully considered their need for assistance and the amounts requested reflect what is needed for successful financing of the projects. 3. Continue consideration of the proposed awards. The City Council can direct staff to return with additional information regarding the funding request so that a final decision on the award amount can be made. Staff does not recommend this action because this delay in time would not allow for HASLO or TMHA to close gap funding needed to close escrow on the respective projects and properties. ATTACHMENTS A - Draft Resolution adopting allocation of Affordable Housing Funds to HASLO for the Anderson Hotel and THMA for Palm Street Studios B - Request from HASLO for the Anderson Hotel C - Request from THMA for Palm Street Studios D - Resolution 9263 (2001 Series) Award Criteria for Affordable Housing Funds Page 289 of 1192 Page 290 of 1192 R _____ RESOLUTION NO. _______ (2022 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, APPROVING AFFORDABLE HOUSING FUND AWARDS TO THE HOUSING AUTHORITY OF SAN LUIS OBISPO FOR THE ANDERSON INN IN THE AMOUNT OF $1,700,000 AND TRANSITIONS MENTAL HEALTH ASSOCIATION FOR THE PALM STREET STUDIOS IN THE AMOUNT OF $300,000 WHEREAS, the City Council of the City of San Luis Obispo met in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California, on April 19, 2022, for the purpose of considering requests for Affordable Housing Fund (AHF) assistance; and WHEREAS, the proposed projects, The Anderson Inn, by The Housing Authority of San Luis Obispo (HASLO) and Palm Street Studios by Transitions Mental Health Association (TMHA) meet the award eligibility criteria established by the City Council; and WHEREAS, Housing Element policies and programs encourage and support the preservation and rehabilitation of affordable housing in the City; and WHEREAS, the City Council has duly considered all evidence, including the testimony of the applicant, interested parties, and the evaluation and recommendations by staff at the said meeting; and NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. Findings. The City Council does hereby make the following findings in support of the proposed AHF awards: 1. Eligibility: Use of the AHF for the requested purposes will increase or improve the City's affordable housing inventory and promote General Plan policies regarding housing, as follows: The Anderson Inn is eligible for Affordable Housing Funds because it improves and preserves the City's affordable housing inventory and implements several General Plan policies regarding housing. The project will preserve the supply of affordable housing for extremely low, very low, and low-income households with the construction of 68 units. Page 291 of 1192 Resolution No. _____ (2022 Series) Page 2 R _____ The Palm Street Studios is eligible for Affordable Housing Funds because it improves and expands a structure to convert to 6 supportive housing apartments, add 2 separate on -bedroom accessory dwelling units and provide affordable housing for low income persons identified as the most vulnerable homeless individuals in the County and provide them with behavioral health treatment and services. 2. Need: There exists a substantial or overarching need for the types of units to be assisted, as follows: HASLO’s longest waiting list in terms of unit types is for 1 -bedroom or studio units. The Anderson consists of all 1-bedroom and studio apartments that are identified as at risk for being lost in the City’s affordable housing inventory. TMHA houses over 250 clients annually with the goal of creating supported, permanent housing for adults with mental illness. Once opened, Palm Street Studios will provide 8 housing units to this population. TMHA receives over 300 applications for their housing units, which demonstrates a clear continued need for this type of supported housing. 3. Suitability: The projects to be assisted are appropriate for its location both in terms of land use and design, as follows: Both proposed housing acquisitions has been chosen for close proximity to TMHA and County services. The Anderson Inn is in the middle of downtown SLO. Palm Street Studios is .7 miles from Hope House Wellness Center on 1306 Nipomo Street, 1 mile away from TMHA headquarters on High Street, 1.1 miles from County Behavioral Health on Johnson Avenue, and 2.4 miles from Growing Grounds Nursery on Orcutt Road. Both projects are near the Ludwick Community Center and Santa Rosa Street, with easy access to rapid transit. 4. Timing: The projects would better serve the City's needs if they were built immediately as opposed to later, as follows: Both projects provide immediate housing. HASLO units include 68 Section 8 voucher eligible units for clients at or below 60% of the Area Median Income and long term affordability would be ensured through recording of a new 550year deed restriction. Page 292 of 1192 Resolution No. _____ (2022 Series) Page 3 R _____ TMHA received around 300 applications for the 34 units under construction in the Bishop Street Studios project, meaning there are approximately 266 community members in need of safe, supportive housing. TMHA knows that stable housing and recovery go hand-in-hand. Palm Street Studios will bring TMHA a few steps closer to providing housing for the hundreds of San Luis Obispo residents living with mental health diagnoses. 5. Financial Effectiveness: But for the requested funding, the projects would not be economically feasible; or AHF funding "leverages" significant additional funding from other sources, as follows: Funding for the Anderson Hotel would constitute 4.6% of project funding, equivalent to $25,000 per unit (68 units). The project leverages direct congressional appropriation ($2 million), County ARPA funds ($2 million) and low-income housing tax credits ($26.4 million). TMHA is currently in escrow for a purchase price of $1,185,000. The cost to convert the house to six (6) one-bedroom units and two (2) one-bedroom ADUs is approximately $1,815,000. TMHA is applying for $2.03M in No Place Like Home grant funding from the State of California and they have been successful in the past two years with an award of $1.49 million to purchase 6 units in the City of San Luis Obispo. While the numbers continue to get clearer, and relocation fees are an unbudgeted expense of $60,000, TH MA anticipates the financial gap will be $865,000. TMHA will raise a portion of this through a private capital campaign, and requests $300,000 in housing funds from the City of San Luis Obispo. 6. Readiness: The projects have all necessary City approvals and is ready to proceed, as follows: Both the Anderson Inn and the Palm Street Studios projects do not need to obtain any City discretionary approvals. Award of the City will enable HASLO to proceed with a highly competiti ve application for state low-Income tax credits in June 2022 and position the project to move forward with acquisition within the year. Upon award of the City, THMA plans to immediately close escrow on the property. HASLO and THMA will then make imp rovements to the units as needed and submit any plans to the City Building division as necessary. . Page 293 of 1192 Resolution No. _____ (2022 Series) Page 4 R _____ SECTION 2. Environmental Determination. The project to award affordable housing funds is exempt from environmental review per the California Environmental Quality Act as it does not apply to the recommended actions in this report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378. SECTION 3. AHF Award for The Housing Authority of San Luis Obispo (HASLO) and Transitions Mental Health Association (TMHA). The City Council does hereby approve an AHF awards in an amount not to exceed $1,700,000, for HASLO and $300,000 for THMA subject to the following condition of approval: Page 294 of 1192 Resolution No. _____ (2022 Series) Page 5 R _____ 1. Prior to release of any portion of the AHF award, the applicants shall enter into an affordability agreement with the City.  For HASLO’s project for the Anderson Hotel, it shall be for sixty-eight (68) for-rent affordable housing units located at 965 Monterey Street, for a term of fifty-five (55) years, which will be recorded against the title of the property.  For TMHA’s project for Palm Street Studio’s, it shall be for 8 for-rent affordable housing units located at 1118 Palm Street, for a term of fifty-five (55) years, which will be recorded against the title of the property. Upon motion of Council Member ___________, seconded by Council Member ___________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this _____ day of _______________ 2022. ___________________________ Mayor Erica A. Stewart ATTEST: _______________________ Teresa Purrington, City Clerk APPROVED AS TO FORM: ______________________ J. Christine Dietrick, City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on ______________________. ___________________________ Teresa Purrington, City Clerk Page 295 of 1192 Page 296 of 1192 Page 297 of 1192 Page 298 of 1192 Page 299 of 1192 Page 300 of 1192 Transitions-Mental Health AssociationInspiring hope, growth, recovery and wellness in our communities.Transitions-MentalHealth AssociationJanuary 18, 2022Michael CodronDirector of Community DevelopmentCity of San Luis Obispo919 Palm StreetSan Luis Obispo, CA 93401Dear Michael,This letter is to confirm the interest of Transitions-Mental Health Association (TMHA), a mentalhealth and human services nonprofit located in San Luis Obispo County, to purchase anddevelop the property at 1118 Palm Street and convert it into 8 supportive housing apartments forlow income adults living with a mental illness. TMHA requests support from the City of SanLuis Obispo for a $300,000 gap in funding this project.Project DescriptionThe proposed project, located at 1118 Palm Street in the City of San Luis Obispo, addresses thecritical need for extremely low-income housing to serve our most vulnerable populations. Thegoal is to provide supportive housing to 8 adults living with a mental illness who are homeless orare at risk ofhomelessness. The project cost is anticipated to be $2.95 million.The project plan is to construct 6 separate one bedroom apartments within the current buildingand add 2 one bedroom Accessory Dwelling Units in the backyard. The commissioned workwill encompass:• A remodel of the existing structure, to convert to 6 - one bedroom apartment units• Add 2 - separate one bedroom ADU's• One small officeTMHA hired Louisa Smith, an experienced local architect, to oversee the design. The exteriorelevations will incorporate all details of the existing structure and recall its historic architecture.This property would be financed and operated by TMHA, with the units becoming part of thePost Office Box 15408 • San Luis Obispo, CA 93406 • P 805.540.6500 • F 805.540.6501 • www.t-mha.orgPage 301 of 1192 agency's Housing Now, contracted with San Luis Obispo County's Department of SocialServices.In 2014, TMHA launched 50Now, a collaboration with the Housing Authority of San LuisObispo (HASLO) and the County of SLO Department of Social Services. The programrepresented a strategic attempt to address chronic homelessness head on, by identifying the 50most vulnerable homeless individuals in the County, placing them in permanent housing, andproviding behavioral health treatment, case management, and other services that will help themstabilize and maintain their housing. Client outcomes have been overwhelmingly positive, andthe Board of Supervisors has renewed and expanded the program multiple times. Recentlyrenamed Housing NOW, the program will increase the number of clients served from 70 to 80 inthe coming year. The property at 1118 Palm Street is a critical component of that strategicexpansion.Client DescriptionThe target population, as per the No Place Like Home guidelines, will be adults having a SeriousMental Disorder who are Homeless, Chronically Homeless, or At-Risk of ChronicHomelessness. 100% of the units will be devoted to this target population. Each tenant willhave the opportunity to engage with mental health services that are individual, confidential, andbased on mutual tmst and respect. Services include both evidence-based practices and peermentorship, and are intended to help guide each person towards their highest self-sufficiency andsense ofwellbeing. The degree of support and services will be entirely directed by each tenant.All services to the tenants will be voluntary and guided by the participant's choice in terms oftype, amount and timing. Each participant will be encouraged to reach their highest level of self-sufficiency possible through one on one assistance with social and life skills, such as budgeting,cooking and the management of symptoms. Tenants will receive support both on site and off site,inviting and encouraging tenants to participate in services and integrate into their community.The proposed housing acquisition has been chosen for close proximity to TMHA and Countyservices. The property is .7 miles from Hope House Wellness Center on 1306 Nipomo Street, 1mile away from TMHA headquarters on High Street, 1.1 miles from County Behavioral Healthon Johnson Avenue, and 2.4 miles from Growing Grounds Nursery on Orcutt Road. ThePage 302 of 1192 property is adjacent to the Ludwick Community Center and Santa Rosa Street, with easy accessto rapid transit.Timeline and Funding RequestTMHA is currently in escrow for a purchase price of $1,185,000. The cost to convert the houseto six (6) one-bedroom units and two (2) one-bedroom ADUs is approximately $1,815,000.TMHA is applying for $2.03M in No Place Like Home grant funding from the State ofCalifornia. We had a successful application with this program two years ago, and were awarded$1.49 million to purchase 6 units in the City of San Luis Obispo.While the numbers continue to get clearer, and relocation fees are an unbudgeted expense of$60,000, we anticipate the financial gap will be $865,000. TMHA will raise a portion of thisthrough a private capital campaign, and requests $300,000 in inclusionary housing funds fromthe City of San Luis Obispo.The timeline will be roughly:® Close of escrow on 1118 Palm Street: January 18, 2022• Completion of floor plans and exterior elevations: January 2022• Application deadline for No Place Like Home: January 19, 2022• Beginning of remodeling: January 2023• No Place Like Home Award Announcement: June 30, 2022• Completion of construction and installation ofADUs: August 2023• TMHA Housing NOW clients move in: September 2023Agency Housing ExperienceTMHA has been operating housing programs with in-house property management services forover 40 years. TMHA's ability to provide multiple levels of service to our target population isfortified by our experience in managing the real estate and maintenance components of eachproject. TMHA owns five properties (a total of 65 beds) in San Luis Obispo County, and threeproperties (a total of 12 beds) in the city of Santa Maria. In partnership with the HousingAuthority of San Luis Obispo, TMHA completed construction on Bishop Street Studios, a 34-unit project that received Federal Low Income Housing tax credits and other funding sources andhas 100% occupancy. TMHA's role ranges from that of property manager to landlord. As thePage 303 of 1192 property owner and manager, TMHA is responsible for the continuing maintenance of theproperty. More significantly, we serve as a regular touchstone for both tenants and their serviceproviders.TMHA is a member of the San Luis Obispo County Supportive Housing Consortium, whichplayed an integral role in the development of the 2005 Consolidated Plan, including substantialinput on the Continuum of Care for Homeless Persons Plan. TMHA's housing programs work inaccordance with these County initiatives and share the same fundamental goals. TMHA is also amember of the Homeless Services Oversight Council, and an ongoing collaborator on both theHomeless Enumeration Project and is involved in the updating of the current 10 Year Plan toEnd Homelessness.The overarching vision ofTMHA Housing is one of a supportive, structured environment that isrecovery-oriented. Our programs are designed to be responsive to and respectful of the profoundjourney every client experiences. The issues and challenges of this population can be moresuccessfully addressed once the basic needs of housing and income are stabilized. Only with asecure living environment, assistance in accessing needed health care, attaining financialstability, receiving support and learning the basic skills necessary for independent living canrecovery occur.The issues ofhomelessness, mental illness, and low-income housing form a trifecta of pressingconcern for our communities. This housing project can be a model for addressing thesechallenges in the years ahead.For further information, do not hesitate to reach out to me at (805) 540-6505 or ibw(a)t-mha.org.Thank you for your consideration of this exciting project.Warm Regards,Jill Bolster WhiteExecutive DirectorPage 304 of 1192 RESOLUTION NO. 9263 (2001 Series) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO ESTABLISHING AWARD CRITERIA AND A REVIEW PROCESS FOR ALLOCATING AFFORDABLE HOUSING FUNDS. WHEREAS, the City Council adopted Ordinance 1348 (1999 Series) establishing an Affordable Housing Fund for the collection and distribution of in -lieu housing fees to promote affordable housing in San Luis Obispo; and WHEREAS, as a result of the in -lieu fee payments to the City under the Inclusionary Housing Ordinance, the City has a balance of approximately $400,000 in the Affordable Housing Fund, and this fund is available to support affordable housing in San Luis Obispo at the sole discretion of the City Council; and WHEREAS, the City received requests by Judson Terrace Lodge and Sojourn Services, Inc. for the use of $215,000 and $25,000, respectively, of Affordable Housing Funds; and to evaluate these and future funding requests in a fair and timely manner, Council wishes to establish award criteria and a review process for the Affordable Housing Fund; and WHEREAS, the City Council held a meeting on December 4, 2001 to consider possible award criteria that balance the need to provide a fair, open and timely funding award process with the desire to maintain funding flexibility to address local housing needs and opportunities; NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo that based on its deliberations, public comments, the staff report, and on State law, the following: SECTION 1. Affordable Housing Fund Award Criteria. The City Council establishes the following criteria for evaluating requests for use of the Affordable Housing Fund: 1. Eligibility. Use of the Affordable Housing Fund (AHF) for the requested purpose will increase or improve the City's affordable housing inventory and promote General Plan policies regarding housing. 2. Need. There exists a substantial or overarching need for the type of housing to be assisted. 3. Suitability. The project to be assisted is appropriate for its location, both in terms of land use and design. 4. Timing. The project would be better serve the City's needs if it were built immediately as opposed to later. R 9263 Page 305 of 1192 I OI_ l Resolution No. 9263 (2001 Series) Page 2 5. Financial Effectiveness. But for the requested assistance, the project would not be economically feasible; or AHF funding "leverages" significant additional funding from other sources. 6. Readiness. The project has all necessary City approvals and is ready to proceed. SECTION 2. Use of Award Criteria. The Council will apply the above criteria when evaluating funding requests. Requests that most closely meet the criteria will be given the most favorable consideration in allocating Affordable Housing Funds. Under no circumstances is Council obligated to award Affordable Housing Funds. The decision whether to allocate funds and how much is at the sole discretion of the City Council whose decision is final. SECTION 3. Review Process. The Community Development Director shall be responsible for processing requests for use of Affordable Housing Funds. Such requests shall usually be considered concurrent with review of the City's Community Development Block Grant Program. The Director is authorized to bring urgent funding requests to the Council at any time, irrespective of the above review cycle. SECTION 4. Funding Agreements. Recipients of Affordable Housing Funds shall be required to execute an agreement with the City describing the purpose and terms of funding. The project or program to be funded shall meet the City's Affordable Housing Standards, including the requirement for an affordability term of at least thirty (30) years, and City equity participation in the project where feasible and appropriate. The City Administrative Officer is authorized to execute such agreements for the City. Upon motion of Council Member Schwartz; seconded by Vice Mayor Marx, and on the following roll call vote: AYES: Council Members Ewan, Mulholland,,Schwartz, Vice Mayor Marx, and Mayor Settle NOES: None ABSENT: None The foregoing resolution was adopted this 4h day of December 2001 ATTE T: r Lee Price, City Clerk. Page 306 of 1192 1. Resolution No. 9263 (2001 Series) Page 3 APPROVED AS TO FORM: Page 307 of 1192 Page 308 of 1192