HomeMy WebLinkAbout1/9/2024 Item 5k, Tway / McClish - Staff Agenda CorrespondenceG�TY Ofi
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DATE: January 9, 2024
TO: Mayor and Council
FROM: Timothea Tway, Community Development Director
Prepared by: Teresa McClish, Housing Program and Policy Manager
VIA: Derek Johnson, City Manager
SUBJECT: Item 5k — Reallocation of Affordable Housing Funds to HASLO Maxine
Lewis Project
Staff received the following questions from a Councilmember regarding the history and
total amount of funding allocations for the Housing Authority of San Luis Obispo's Maxine
Lewis Apartments located at 736 Orcutt Road. The questions are summarized below with
staff's response shown in italics:
1) Considering the two sections of the staff report as shown below, clarify the
total funding amounts for the Maxine Lewis Project for previous and
proposed SLFRF, ARPA and CDBG funding allocations:
WAR
In June 2022, the City Council authorized a one-time use of American Rescue Plan
Act State and Local Fiscal Recovery Funds (SLFRF) by allocating $2,964,467 into
the Affordable Housing Fund in the 2022-2023 Supplemental Budget to support
at -risk populations via affordable housing fund awards to be made at the City
Council's sole discretion'. In April 2022, an AHF award of $1.7 million was made
to HASLO for the Anderson Hotel and $300,000 was awarded to Transitions
Mental Health Association (THMA) for the Palm Street Studios2. In April 2023,
$964,467 of SLFRF funds were allocated to the Maxine Lewis Apartment Project
as part of a total $2 million award from the Affordable Housing Fund ($1,035,533
AHF + $964,467 SLFRF=$2 million)3.
Previous Council or Advisory Body Action
The Council approved Affordable Housing Fund award criteria in 2001 and funding
investment allocations specific for SLFRF in 2022, as discussed above in the
Resolution No. 11333 approving the allocation of $13,564,467 in Sate and Local Fiscal Recovery Funds
in Accordance with the U.S. Treasury Final Rule
2 Resolution 11321 approving affordable housing fund awards to HASLO for the Anderson Hotel and THMA
for the Palm Street Studios
3 Resolution 11411 approving affordable housing fund awards to HASLO for the 736 Orcutt Rd. Protect and
the 279 Bridge Street Family Apartment Protect
City of San Luis Obispo
Page 373 of 615
Item 5k — Reallocation of Affordable Housing Funds to HASLO Maxine Lewis Project Page 2
Background section. The project helps implement programs in the 6th Cycle
Housing Element, approved by City Council on November 17, 2020, and the
Homelessness Strategic Plan on March 21, 2023. The Human Relations
Commission recommended CDBG funding in the amount of $317,792 for the
project on December 7, 2022 and the City Council approved the recommended
CDBG funds for the Project on January 17, 2023. Affordable Housing Funds in the
amount of $2 million were awarded to the project on April 18, 2023.
The America Rescue Plan Act of 2021 (ARPA) authorized funds through the
Coronavirus State and Local Fiscal Recovery Funds Program (SLFRF). The City
Council authorized some of the funding received through the ARPA/SLFRF
program to be placed into the City's Affordable Housing Fund (AHF). On April 18,
2023, the City Council awarded $964,467 of ARPA/SLFRF funds from the AHF in
addition to $1,035,533 of non-ARPA/SLFRF funds from the AHF to the Maxine
Lewis project, for a total of $2M from the AHF.
Additionally, on January 17, 2023, the City, through the federal Housing and
Community Development's Community Development Block Grant program,
awarded $317, 792 for the Maxine Lewis Apartment project.
Therefore, The total previous funding is $2,317,792 for the Maxine Lewis
Apartment project.
Proposed, is the reallocation of $300k from the AHF previously awarded to the
Transition Mental Health Association's (THMA) Palm Street Studio project that
were also ARPA/SLFRF funds.
If approved, the total funds awarded from the City for the Maxine Lewis
Project would total $2,617,792 from the following sources:
• $2.3M from the City's Affordable Housing Fund including.
o $1,035,533 non-ARPA/SLFRF funds
o $1,264,467 ARPA/SLFRF funds ($964,467 + $300,000)
o $2, 300, 000
• $317, 792 from CDBG
2) Is there a typo under Public Engagement? Should the date be January 9,
2024.
Yes, the correct date should be January 9, 2024.
Page 374 of 615