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HomeMy WebLinkAboutr 10578 Approving Affordable Housing Fund Grant Award to SLO County Housing Trust FundRESOLUTION NO. 10578 (2014 Series) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, APPROVING A $30,000 AFFORDABLE HOUSING FUND (AHF) GRANT AWARD FOR THE SAN LUIS OBISPO COUNTY HOUSING TRUST FUND (HTF) WHEREAS, on November 18, 2014 the City Council of the City of San Luis Obispo considered a request by the Housing Trust Fund ( "HTF ") for Affordable Housing Fund ( "AHF ") grant assistance in the amount of $30,000; and WHEREAS, the $30,000 will allow the HTF to improve the ability and feasibility of the entitlement and construction of affordable housing projects in the City; and WHEREAS, the projects and programs supported by the HTF meet the eligibility criteria established by the City Council; and WHEREAS, Housing Element Program 6.13 provides direction for the City to "continue to support the SLO County Housing Trust Fund's efforts to provide below - market financing and technical assistance to affordable housing developers as a way to increase affordable housing production in the City of San Luis Obispo "; 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 presented at said meeting. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of San Luis Obispo as follows: SECTION 1. Environmental Determination.The project is exempt from environmental review per CEQA Guidelines under the General Rule (Section 15061(b)(3)). It can be seen with certainty that the proposed action to award grant funding to the HTF for operating expenses will have no significant effect on the environment. SECTION 2. Findings. The City Council does hereby make the following findings in support of the proposed Affordable Housing Fund grant award: a) 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: b) The HTF improves the ability and feasibility of affordable housing construction. The HTF indirectly supports creation of affordable housing units by providing financing and technical assistance to City staff and developers of affordable housing in the City, and HTF advocates for affordable housing projects, R 10578 Resolution No. 10578 (2014 Series) Page 2 consistent with City policy. The proposed award is consistent with the General Plan (Housing Element Programs 2.12 and 6.13) and past practice. c) Need: There exists a substantial or overarching need for the type of unit to be assisted, as follows: d) The City's Regional Housing Needs Allocation (RHNA) for the five -year period from January 2014 through June 2019 includes 142 units in the extremely -low income ( <30% of AMI) category, 143 in the very -low income (30 -50% of AMI) category, 179 units in the low income (51 -80% of AMI) category and 202 in the moderate income (81 -120% of AMI) category. The HTF contributes to affordable housing at all of these income ranges and will assist the City in meeting State housing targets. e) Suitability: The project to be assisted is appropriate for its location both in terms of land use and design, as follows: f) This criterion is evaluated when HTF- funded affordable housing projects are proposed in the City and for any project that receives an AHF grant. g) Timing: The project would better serve the City's needs if it were built immediately as opposed to later, as follows: h) Funding should be provided now so that the HTF has adequate funds to cover operating expenditures during the 2014 fiscal year and can continue to assist affordable housing project construction. The City's citizens would be better served with HTF's assistance now rather than later. i) Financial Effectiveness: But for the requested funding, the project would not be economically feasible; or AHF funding "leverages" significant additional funding from other sources, as follows: j) The City's AHF award would leverage significant additional funding from other sources, including federal, state and local loan and grant programs. In addition, contributors to the HTF have provided nearly $7 million in operating support and equity for new loans since 2003. k) Readiness: The project has all necessary City approvals and is ready to proceed, as follows: 1) The HTF has been contributing to the cause of affordable housing in San Luis Obispo County since 2003 and the proposed AHF award will help the HTF fulfill their mission and is supported by the General Plan. SECTION 3. Affordable I-lousigg Fund Award SLO Count I-lousing Trust Fund. The City Council does hereby approve an Affordable Housing Fund grant in the amount of $30,000 Resolution No. 10578 (2014 Series) Page 3 to support operating expenditures during the 2014 fiscal year and authorizes the Finance Manager to appropriate the funds from unallocated Affordable Housing Fund balance. Upon motion of Council Member Ashbaugh, seconded by Vice Mayor Christianson, and on the following roll call vote: AYES: Council Members Ashbaugh, Carpenter and Smith, Vice Mayor Christianson and Mayor Marx NOES: None ABSENT: None The foregoing resolution was adopted this 18th day of November 2014. Mayor ,1'ah Marx ATTEST: any J. City Clerk IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, this 244- day of «J� v.'V'1e_ .r rL nthon City Clerk