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Home My WebLink About03/01/2005, C2 - AUTHORIZATION OF APPLICATION TO THE CALIFORNIA STATE DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMEN council °° , j acEnaa nEpont �H � CITY OF SAN LUIS OBISPO FROM: John Mandeville, Community Development Director Prepared By: Doug Davidson, Housing Programs Manager Ob SUBJECT: AUTHORIZATION OF APPLICATION TO THE CALIFORNIA STATE DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT (HCD) FOR FUNDING UNDER THE WORKFORCE HOUSING REWARD (WFH)PROGRAM(PROPOSITION 46) CAO RECOMMENDATION Adopt a resolution authorizing staff to complete and submit an application to HCD for the WFH Program and target the WFH funds to two CEP drainage projects(Augusta Street Culvert and the ongoing Drainage Inlet Replacements). DISCUSSION The WFH Program is a unique program of Prop 46. It is not a grant for future housing, but a reward for jurisdictions that have approved low-income housing units. It is not competitive; all cities and counties who meet the eligibility requirements will be funded. Eligibility Criteria: Applicants for 2004 WFH funding must have certified Housing Elements by December 31, 2004. The City received formal notification from HCD on December 22, 2004 that its Housing Element is in compliance with State law. Eligible housing units are those with final land use approvals and building permits issued in calendar year 2004. Award Calculations: Awards are distributed on a per bedroom basis: $2,000 per bedroom for each very low-income unit and $1,500 per bedroom for each low-income unit. (Note: No WFH reward for moderate-income units.) The Housing Authority project on Ella Street and Johnson Avenue (Del Rio Terrace) should qualify for WFH funding; 40 one-bedroom units, currently under construction. The WFH award would be at least $60,000 (40 x $1,500) and possibly more as a portion of the units may be able to be deemed very low-income. Eligible Use of Funds: It must be emphasized that this program is not designed as an affordable housing development program. Instead, the program is a reward to cities for doing a good job with their housing programs by providing funding to support the capital facilities required in an urban living environment. Eligible projects include, but are not limited to, street improvements, parks, bike paths, libraries, school facilities, community centers, and police and fire stations. Soft costs of capital projects, such as engineering and feasibility studies are eligible activities. (See Attachment 1 for more on eligible uses and examples of how other cities have used the WFH funds.) CAR-Authorization to Apply to HCD for the WITH Program Page 2 CIP Projects: Two City CIP projects have been identified as most appropriate for the WFH funding: Augusta Street Culvert Replacement and Drainage Inlet Replacements. A CDBG application was received this year for the Augusta Street Culvert. The CAO recommendation for the 2005 CDBG program (also on the March 1, agenda) does not recommend funding of the culvert replacement. The CDBG recommendation focuses on housing, ADA, and economic development, as opposed to Public Works projects. The WFH grant is a good funding source. The grant is geared toward capital asset projects that benefit the community. The Augusta Street culvert has failed and dissolved to a point where it ceases to provide its drainage function. Being CDBG eligible inherently provides a broad community benefit. The culvert would benefit low- and moderate income households by being located in such a neighborhood. Drainage Inlet Replacements is another good capital asset project for the WFH funds. This is an ongoing project — established in 1985-1987 and continuing annually until present - to replace and rehabilitate drainage inlets throughout the City. These inlets are typically the top opening types that tend to clog or be undersized. The new catch basins are sized appropriately and open from the side for better flow and accommodation of bikes and pedestrians. Schedule December 31, 2004—Housing Element Certification March 1,.2005 —Council Authorization March.23, 2005—Application Deadline June, 2005—Awards Announced FISCAL IlAPACT At this time of great General Fund stress, any added funding that can help address our many unmet capital needs will be helpful. The projects recommended in this report meet clear needs in support of residential areas in our community. ALTERNATIVES 1. The Council could direct the. WFH funds to another CIP project. The CIP Committee believes the two drainage projects are the best fit for the WFH based on their need and cost effectiveness. 2. The Council could direct the WFH funds to a capital asset that is directly tied to a housing project that includes affordable dwelling units. ATTACHMENT 1. WFH Program—Excerpt on Eligible Uses of Funds 2. Resolution dd/Prop46/CC W FHAuthorRpt lA� �� t � ' r 1 r \ ' M l ;s Attachment 1 °°R77" a. Summary of RHNA Bonus Award 1) Applicant must meet the targeted number of new units relative to their total RHNA. 2) RHNA bonus will be awarded per bedroom of each WFH-eligible unit: a) Very low-income unit: RHNA bonus of an additional $150.00 per bedroom per unit(s) total award for the WFH program per bedroom unit for very-low income, including the RHNA bonus, would be $2,150. b) Low-income unit- RHNA bonus of an additional $100.00 per bedroom total per bedroom unit for the WFH award including the RHNA bonus would be $1,600. If the eligibility for funds exceeds the amount of funding available in any round, the Department may reduce all grants proportionally, or in the event the JHBP is undersubscribed, the unused funds may be rolled over to the next program year award. Eligible Use of Funds: Grant funds shall be used for the construction or acquisition of capital assets that serve to benefit the community, as set forth in Section 16727 of the Government Code (see Attachment A). Eligible projects include, but are not limited to, traffic improvements, neighborhood parks, bike paths, libraries, school facilities, play areas, community centers, and police and fire stations. Examples of capital assets funded under the 2003 JHBP, the forerunner of the WFH Program; are: construction of a Culture Center; Li library development; & street improvements for safety, such as lights, curbs and gutters; aA upgrades to existing infrastructure, such as water/sewer upgrades; r park improvements, construction and rehabilitation and; Li accommodations for ADA compliance. Attachment F includes a list of awardees and the type of projects funded for the JHBP. Timeline of WFH Program Implementation: & Workshops will be held May/June ja Program year runs from January 1, 2004 to December 31, 2004 jA Application are anticipated to be released December 2004 & Application deadline is anticipated for March 2005 & Awards are expected to be announced in June 2005 Workforce Housing Program NOFA and Guidelines 6A el - Attachment 2 RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO AUTHORIZING SUBMITTAL OF AN APPLICATION TO THE CALIFORNIA STATE DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT (HCD) FOR FUNDING UNDER THE WORKFORCE HOUSING REWARD (WFH) PROGRAM; THE EXECUTION OF A GRANT AGREEMENT IF SELECTED FOR SUCH FUNDING AND ANY AMENDMENTS THERETO; AND ANY RELATED DOCUMENTS NECESSARY TO PARTICIPATE IN THE WFH PROGRAM WHEREAS, the City of San Luis Obispo, a political subdivision of the state of California, wishes to apply for and receive an allocation of funds through the Workforce Housing Reward (WFH) Program; and WHEREAS, HCD released the Application Package in December, 2004 for the WFH program established by Chapter 482, Statutes of 2002 and funded through Proposition 46, the Housing and Emergency Shelter Act of 2002; and WHEREAS, pursuant to the statute, HCD is authorized to approve funding allocations for the program, subject to the terms and conditions of the NOFA and Program Guidelines, Application Package,and Standard Agreement; and WHEREAS, the WFH Program encourages cities and counties'to develop new residential housing while rewarding those jurisdictions that approve housing for low-income households; and WHEREAS, in 2004 the City of San Luis Obispo approved a 40-unit project(one-bedroom units) for low-and very-low income households developed by the.Housing Authority ; and WHEREAS, the WFH funds may be used for the acquisition and construction of capital assets that benefits the community; and WHEREAS, the City Council has identified the Augusta Street Culvert Replacement and Drainage Inlet Replacement projects as meeting the eligibility criteria and intent of the WFH Program. - - ' Attachment 2 Resolution No. Page 2 NOW,THEREFORE, BE IT RESOLVED that the City Council of the City of San Luis Obispo hereby: 1. Authorizes the filing of an application to HCD to participate in the WFH Program in response to the NOFA issued in March, 2004; and 2. Directs that the WFH funds be allocated to the Augusta Street Culvert Replacement and the Drainage Inlet Replacement projects. 3. Agrees that the City of San Luis Obispo shall be subject to the terms and conditions as specified in the standard agreement (Contract). Funds are to be used for allowable capital asset project expenditures to be identified in Attachment A of the Contract. The application in full is incorporated as part of the Contract and any and all activities funded, information provided, and timelines represented in the application are enforceable through the Contract. The City of San Luis Obispo hereby agrees to use the funds for eligible capital asset(s) in the manner presented in the application as approved by HCD and in accordance with the NOFA, Program Application, and Application Package. The City of San Luis Obispo will execute any and all instruments required by the Department for participation in the WFH Program. 4. Authorizes the City Administrative Officer to execute in the name of the City of San Luis Obispo, the Application Package, the Standard Agreement, and all other documents required by HCD for participation in the WFH Program, and any amendments thereto. On motion of , seconded by and on the following roll call vote: AYES: NOES: ABSENT: C/� Resolution No. Page 3 The foregoing resolution was passed adopted this 1st day of March,2005. David F. Romero,Mayor ATTEST: Audrey Hooper, City Clerk APPROVED AS TO FORM: Jorlathanof. Lowell, City Attorney dd/Prop46/CC W FHAuthorReso council mcmoizanbum DATE: February 28, 2005 RECEIVED TO: City Council FEB 2 8 Kfi VIA: Ken Hampian, CAO iyk[e--" SLO CITY CLERK FROM: John Mandeville, Community Development Director BY: Michael Draze, Deputy Director of Community Developmentl;—' � SUBJECT: ADDED INFORMATION FOR MARCH 1, 2005, AGENDA ITEM C2 Attached are two maps showing the areas where the Workforce Housing grant money would be used. Attachment 1 shows the location of the Augusta Street culvert is located. Attachment 2 shows the area where funds would be used to replace as many of the older inlets as possible:, The drainage,inlet program is organized by Pavement Management Areas so specific inlets are not identified at this time. Attachment 1: Augusta Street Culvert Location Attachment 2: Drainage Inlet Replacement Area RED FILE M ING AGENDA DATET14 ITEM Tr COU CIL "CDD DIR . ATO ,. 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