HomeMy WebLinkAbout03/20/2007, C7 - AUTHORIZATION OF APPLICATION TO THE CALIFORNIA STATE DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMEN council M� � o2
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CITY OF SAN LUIS OBISPO
FROM: John Mandeville, Community Development Direc�
Prepared By: Peter Brown, Housing Programs Manager j �
SUBJECT: AUTHORIZATION OF APPLICATION TO THE CALIFORNIA STATE
DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT
(HCD) FOR FUNDING UNDER THE 2006 WORKFORCE HOUSING
REWARD (WFH) PROGRAM(PROPOSITION 46)
CAO RECOMMENDATION
Adopt a resolution authorizing the City Administrative Officer or his designee to complete and
submit an application to HCD for the WFH Program and target the WFH funds to match existing
City and CDBG funds for the replacement of the Laguna Lake Park Restrooms for ADA
compliance.
DISCUSSION
The WFH Program is a unique program of Proposition 46. (Proposition 46, adopted by the
voters in 2002, is a bond measure to help fund construction, rehabilitation and preservation of
affordable rental housing, emergency shelters and homeless facilities, and also allows funds to be
used for downpayment assistance to low and moderate income first time home buyers.) The
WFH program 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. This is the last year of a three year program. The first year of the
program (2004) awarded $2,000 per bedroom for very-low income units and$1,500 per bedroom
for low income units the jurisdiction had approved during that year. For year 2006, these figures
have been decreased to $1,500 and $1,000, respectively.
Eligibility Criteria: In order to be eligible to apply for the grant, an applicant must have a
Housing Element that was certified by December 31, 2004. The City meets this criterion: formal
notification was received from HCD on December 22, 2004 that the Housing Element was in
compliance with State law. Eligible housing units are those with final land use approvals and
building permits issued in calendar year 2006. The City has an eligible project that meets this
requirement: the People's Self Help Housing Corporation received building permits for the Villas
at Higuera project on September 27, 2006. Cities or counties applying for funds must have also
submitted an annual progress report by December 31, 2006 for the calendar year 2005. This
report details the jurisdiction's implementation of the Housing Element, including the status of
housing programs and progress towards meeting its regional housing need. Community
Development staff submitted the City's report in December 2006.
Award Calculations: Awards are distributed on a per bedroom basis: $1,500 per bedroom for
each very low-income unit and $1,000 per bedroom for each low-income unit. (Note: No WFH
C �?—i
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CAR-Authorization to Apply to HCD for the WFH Program Page 2
reward for moderate-income units.) The People's Self Help project at 3071 South Higuera will
qualify for WFH funding for all 28 apartment units currently under construction since all of the
units will be restricted to very low and low income rents..
Villas at South. Higuera Affordable Housing Project
Low Income Units
Type of Unit Number of Dwellings Reward Amount Subtotal
Studio 1 $1,000 $ 1,000
1 Bedroom 2 $1,000 $ 2,000
2 Bedroom 2 $1,000 _$4,006
3 Bedroom 1 $1,000 $ 3,000
Low Total 7 $10 000
Very-Low Income Units
Type of Unit Number of Dwellings Reward Amount
Studio 5 $1,500 $ 7,50.0
1 Bedroom 4 $1,500 $ 6,000
2 Bedroom 4 $1,500 $12,000
3 Bedroom 8 $1,500 $36,000
Very Low Total 121 $61 00
TOTAL _ 28 $71,500
The City will be eligible for an award of$71,500. In previous years, the eligible amount has not
been fully awarded due to the numbers of jurisdictions applying for the funds. While the
program isnot competitive, the state has a maximum of$20 million dollars in proposition funds
available that must be divided between all of the jurisdictions that apply and all of the qualifying
projects each jurisdiction submits.
Eligible Use of Funds: It must be emphasized that this program is not designed as an
affordable housing development program. The City has separate funding for this purpose.
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).
CIP Project. The City is currently designing the reconstruction of the restrooms at Laguna Lake
Park for ADA compliance. This project has been awarded CDBG funds but is still anticipating a
need of over $170,000 in General Funds. Due to its readiness, partial funding status, and
mandatory compliance needs, the restroom reconstruction at Laguna Lake Park has been
identified as the most appropriate use of the WFH funding. The WFH grant is a good funding
source for Public Works projects. The grant is geared toward capital asset projects that benefit
the community.
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CAR- Authorization to Aaaly to HCD for the WFH Program Page 3
Application Schedule
December 31, 2006—Annual Housing Element Report Submitted to HCD
March 20, 2006—Council Authorization
March 21, 2006—Application Deadline
June, 2006—Awards Announced
FISCAL IMPACT
If the City receives the WFH reward it can assist in meeting an unmet capital project need. The
project identified in this report as most deserving of this potential additional funding is clearly
necessary and provides a community benefit. The costs of applying for the WFH reward
program are nominal.
ALTERNATIVES
1. The Council could direct the WFH funds to another eligible project. The Community
Development Department and the Public Works Department believe that the Laguna
Lake ADA restroom project is the best fit for the WFH based on the need, timeliness,
cost effectiveness, existence of previously allocated funds and funding shortfall.
2. The Council could choose not to authorize submission of an application under this
program. Staff recommends against this alternative as the City, by virtue of
approving a project with low and very low income housing units, meets the criteria
for a reward under a program adopted by the voters specifically to encourage this type
of housing.
ATTACHMENT
1. WFH Program—Excerpt on Eligible Uses of Funds
2. Resolution
cdplan/pbrowalworkforcehousinggrant/CC W FHAuthorRpt2006
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Attachment 1
CAPITAL ASSET PROJECTS
Application Section 7
Instructions
Each applicant must complete Section 7, the WFH Program Capital Asset Project
Description Sheet, for each capital asset project to be funded with WFH grant funds.
Each project must meet the definition of a capital asset, as described below, and
provide a community benefit. All funded projects must be located within the
jurisdictional boundaries of the applicant but do not necessarily have to be located
close to, or connected with, affordable housing developments.
Applicants may fund projects that are currently underway, but cannot use WFH grant
funds for activities that occur before the contract execution date, generally two to three
months after the grant award announcement has been made. For projects in which
the WFH grant funds consist of a portion of the entire project funding, the project is not
required to be completed by the end of the contract period, but the WFH grant funds
must be expended in whole within three years of the grant award announcement.
Required Information for Each Project Description:
All applicants must include the following information for each eligible project:
• Name of the project;
• A brief narrative summary of the project (sentences or bullet points);
• A comprehensive narrative of the project;
• The anticipated community benefit;
• The general location of the project;
• Amount of WFH funds to be allotted to the project; and
• Other funding sources (if any).
Eligible Use of Funds:
All projects funded with WFH grant funds must result in the construction or acquisition
of a capital asset and provide a community benefit. Capital assets, as defined in
Government Code, Section 16727, must meet at least one of the following four
criteria:
1. Tangible physical property with an expected useful life of 15 years or more.
2. Major maintenance, reconstruction, rehabilitation, demolition for purposes of
reconstruction of facilities, retrofitting work ordinarily done no more often than
once every 5 to 15 years or expenditures that continue or enhance the useful
life of a capital asset.
3. Equipment with an expected useful life of two years or more.
4. Eligible soft costs directly related to the construction, rehabilitation or
acquisition of a capital asset project (as described in numbers 1 or 2 above),
such as planning, engineering, construction management, architectural,
environmental impact reports, required mitigation expenses, appraisals, legal
expenses, site acquisitions and necessary easements.
WFH 2006 Funding Application
Attachment 1
Ineligible Use of Funds:
Some examples of ineligible uses of WFH grant funds:
• Grant administration costs incurred by the grantee;
• Land banking;
• Housing Trust Fund;
• Magazines and periodicals (useful life of less than two years);
• Rehabilitation of a private business; and
• Demolition without a plan to construct a capital asset.
WFH 2006 Funding Application
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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, 2006 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 dated May, 2006 under its
Workforce Housing Grant Program 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 2006 the City of San Luis Obispo approved a 28-unit project (one-, two-,
and three- bedroom units) for low- and very-low income households developed by People's Self-
Help Housing Corporation ; 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 Laguna Lake Restroom ADA upgrade
project as one that meets the eligibility criteria and intent of the WFH Program.
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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 May, 2006; and
2. Directs that the WFH funds be allocated to the Laguna Lake ADA Restroom 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:
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ATTACHMENT 2
Resolution No.
Page 3
The foregoing resolution was passed and adopted this 20th day of March, 2007.
David F. Romero, Mayor
ATTEST:
Audrey Hooper, City Clerk
APPROVED AS TO FORM:
J ath .
Lowell, City Attorney
Cdplan/pbrown/workforcehousinggant/CC W FHAuthorReso
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counclL memorandum
c—m oL san Luis osispo --_
-RECEIVED-'
DATE: March 16, 2007 MAR 1 b 2007
TO: San Luis Obispo City Council SLO CITY CLERK
VIA: Ken Hampian, City Administrative Officer e,
FROM: Kim Murry, Deputy Director, Community Development and Peter Brown, Housing
Programs Manager
SUBJECT: Red File for Consent Agenda item C-7,Workforce Housing Grant.
DISCUSSION
The purpose of this memo is to inform Council that due to the mailing deadline of Friday, March 16,
2007, the Workforce Housing Grant application had to be submitted prior to the Council action. The
final application due date is March 21, 2007, and the granting agency, the Department of Housing and
Community Development (HCD), will only accept hardcopy applications mailed or hand-delivered to
their offices in Sacramento. As such, the CAO recommendation to direct us to submit the application
is after the fact, however, the resolution that is a part of the application submittal is still necessary and
timely. Once Council takes action and the resolution is signed, staff can fax the resolution to
Sacramento prior to the 5:00 p.m. deadline on March 21, 2007. The Council does still have
alternatives 1 and 2 available to them, as indicated in the staff report;
1. The Council could direct the WFH funds to another eligible project. The Community
Development Department and the Public Works Department believe that the Laguna Lake
ADA restroom project is the best fit for the WFH based on the need, timeliness, cost
effectiveness, existence of previously allocated funds and funding shortfall.
2. The Council could choose not to authorize.submission of an application under this program.
Staff recommends against this alternative as the City, by virtue of approving a project with
low and very low income housing units, meets the criteria for a reward under_ a program
adopted by the voters specifically to encourage this type of housing.
In the event that Council chooses either alternative, staff can contact HCD in Sacramento to modify the
project submittal or to withdraw the application.
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