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HomeMy WebLinkAbout03/01/2011, B2 - AFFORDABLE HOUSING FUND AWARDS FOR HABITAT FOR HUMANITY AND ROEM CORPORATION. Affordable Housing Fund Awards Page 2 Program Year funds become available. Project entitlements, including Minor Subdivision, Architectural Review and Affordable Housing Incentives have been approved by the City. 2. ROEM Corporation ROEM Corporation has requested $650,000 to acquire property for the construction of 42 attached affordable housing rental units at 313 South (Attachment 2). The project site includes 1:53 acres of land and is located in the Manufacturing (M) zone. The site is occupied by the manufacturing business McCarthy Tank and Steel and includes two buildings totaling approximately 15,165 square feet in area. The project would include the demolition of the existing warehouse buildings and construction of a 43-unit (42 affordable housing rental units and 1 manager unit) apartment complex within four three-story buildings. The project would include 4 one-bedroom units, 24 two-bedroom units and 15 three-bedroom units. The one-bedroom units would be 599 square feet in size and include one bedroom and one bathroom. The two-bedroom units would be 793 square feet in size and include two bedrooms and one bathroom. There are two variations of the three-bedroom unit. Units 3-A would be 1,005 square feet in size and include three bedrooms and two bathrooms, while units 3-13 would be 1,086 square feet in size and include three bedrooms and two bathrooms. The units would be available for rent to extremely-low, very-low and low- income households earning 30%to 60% of the AMI within the County. ROEM Corporation is requesting $2,289,410 in funding for the project. Of that amount, $650,000 would be cash from the AHF. The remaining amount represents an approximation of the value of impact fee exemptions that are already in place for City affordable housing projects and multi-year CDBG funding, including $9,750 from the 2009 Program year, $55;578 from the 2010 Program Year and $184,669 from the 2011 Program Year. The applicants are proposing to apply in March 2011 to the California Tax Credit Allocation Committee for 9% tax credits to help fund the project. The requested AHF award will assist the project's score on the competitive application. Project entitlements, including a General Plan Amendment, Rezoning and Architectural Review have been applied for and the timeframe for approval is March 2011. Property acquisition could occur in fall 2011, after 2011 CDBG Program Year funds become available. Future Federal CDBG Funding On February 14, 2011 President Barack Obama unveiled his budget request for the 2012 fiscal year. The proposal would shave $1.1 trillion off the federal deficit over 10 years. His budget request for the Department of Housing and Urban Development (HUD) is I percent below the 2010 level and includes a reduction of$300 million (7.5%) in funding for CDBG. This level of funding reduction would result in City funding allocations at 2009 levels for the 2012 CDBG Program Year. Proposed CDBG funding reductions for the 2012 fiscal year will not affect previously approved or currently recommended CDBG funding for these projects. Staff will monitor the federal budget process closely over the next several months and will report back to Council if steps are taken to rescind CDBG funding for 2011. If this were to occur, the feasibility of this and other projects could be jeopardized. B2-2 Affordable Housing Fund Awards Page 3 Award Criteria In making its recommendations to the City Council for how AHF funds should be allocated, staff considers Council adopted criteria including eligibility, need, suitability, timing, financial effectiveness and readiness (Attachment 3, Council Resolution No. 9263). The following is an overview of how well each project meets 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: HFH: The project will create three for-sale deed-restricted affordable housing units for extremely-low and very-low income households earning 25% to 50% of the AMI within the County. ROEM. The project will create 42 for-rent deed-restricted affordable housing units for extremely-low, very-low and low-income households earning 30%to 60% of the AMI within the County. In addition, the project would involve implementation of Housing Element Program 6.12, which specifically identifies the site as a location that should be considered.for rezoning to allow infill housing. Need. There exists a substantial or overarching need for the type of unit to be assisted,. as follows: The City's Regional Housing Needs Allocation (RHNA) for the upcoming 5 years includes 185 units in the extremely-low income (<31% of AMI) category, 185 units in the very-low income (31-50% of AMI) category and 259 units in the low-income (51-80% of AMI) category. Both projects will assist the City in meeting these State housing targets. HFH. The City's Housing Element includes quantified objectives for housing construction at various income levels. Because of the deep subsidies required for extremely-low and very low-income housing, the Housing Element assumes that all of the units constructed in the City for these income levels will be in the form of attached multi-family units. This is shown in Housing Element Table 4: Regional Housing Need Allocation (Attachment 4). It is noteworthy that HFH is proposing to construct for-sale detached single-family homes for these affordability ranges given the State has determined it is too difficult to require local jurisdictions provide for this housing type. HFH is the only local, non-profit developer producing this type of affordable housing. ROEM: The project will assist the City meet its quantified objectives for multi-family rental housing in the 30%to 60%AMI range. Suitability: The project to be assisted is appropriate for its location both in terms of land use and design, as follows: HFH: The project has received all discretionary approvals, including Minor Subdivision, Architectural Review and Affordable Housing Incentives, which found that the proposed land use and design are consistent with the development pattern of the neighborhood, and, it will B2-3 Affordable Housing Fund Awards Page 4 not harm the general health, safety or welfare of those living or working on the site or in the vicinity. ROEH. On January 26, 2011, the Planning Commission recommended to the City Council approval of a General Plan Amendment and rezone for the project and found that the proposed land use and design will be compatible with other properties in the neighborhood, and, it will not harm the general health, safety or welfare of those living or working on the site or in the project vicinity. The site is adjacent to other high-density residential development and located along a transit line. Timing: The project would better serve the City's needs if it were built immediately as opposed to later, as follows: HFH: The timing of the award is critical because the purchase agreement for the property requires a letter of commitment for funding by the end of March 2011. ROEH. The timing of the award is critical because the applicants are proposing to apply in March 2011 to the California Tax Credit Allocation Committee for 9% tax credits to help fund the project, which requires a letter of commitment for funding. 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: HFH: The financial effectiveness of the award is substantial because it leverages other funds, including $180,000 in CalHome funds and donations of goods and services, which will be used by HFH to complete construction of the homes. The subsidy will result in $12,927 per unit of AHF support. ROEH. Property acquisition would not occur without the proposed award of $650,000, which would also boost the project's score on the competitive 9% State tax credit application to help fund project construction. The subsidy will result in $15,476 per unit of AHF support. Readiness: The project has all necessary City approvals and is ready to proceed, as follows: HFH: The project has received all of its necessary discretionary approvals and is ready to move forward with acquisition once 2011 CDBG Program Year funds become available in the fall. ROEH. With City Council approval of the Planning Commission's recommendation, the project will have all necessary entitlements except final Architectural Review approval, which is expected by the end of March 2011. The project will be ready to move forward with property acquisition once 2011 CDBG Program Year funds become available in the fall. B2-4 Affordable Housing Fund Awards Page 5 Status of the AHF A status report on the AHF is attached (Attachment 5). The report indicates that if the proposed allocations are approved by Council, the fund will retain $45,217 to allocate to future affordable housing projects. Current Requests/Proposed rig Habitat for Humanity(3212 Rockview) 3 units $38,783 ROEM Corporation(313 South) 42 units $650,000 Current Requests 45 units $688,783 Net Available for New Prorams if All Current Re uests Approved-roved $45 217 Staff is recommending funding for both of the current requests listed in the table above. The attached resolution (Attachment 6) recommends funding for a total of$688,783. The proposed funding amounts to 94% of the funds currently available to be allocated to new projects. Based on proceeds from the sale of three City-owned affordable housing units (3592 & 3594 Broad and 3591 Sacramento) and four to six months of building permit activity, this amount of funding will be restored to the AHF by fall 2011. FISCAL IMPACTS The recommended allocation would be paid out of the AHF, which consists of in-lieu fees collected under the City's Inclusionary Housing Ordinance. The fund may only be used for projects or purposes that create or support affordable housing within the City of San Luis Obispo. Based on prior expenditures and pending commitments, there will be a balance of $45,217 remaining in the AHF after these awards. The projects will have no impact on the General Fund. ALTERNATIVES 1. Do not authorize an AHF award for the proposed projects. This action is not recommended because the projects appear to meet the criteria for AHF assistance. 2. Approve an AHF award for a different amount. The City Council can approve an award for a different amount than the recommendation. 3. Continue consideration of the proposed award. The City Council can direct staff to return with additional information regarding the project so that a final decision on the award amount can be made. ATTACHMENTS 1. Habitat for Humanity funding request 2. ROEM Corporation funding request 3. Council Resolution No. 9263 B2-5 Affordable Housing Fund Awards Page 6 4. Housing Element Table 4, Regional Housing Need Allocation 5. Affordable Housing Fund Status Report 6. Draft Council Resolution TACommunity Development\CARS\CC AHF Habitat&ROEM.DOC B2-6 Habitat Attachment 1 foir®• ' • � ti► for San Luis Obispo County Post Office Box 613 San Luis Obispo,CA 93406 (805)782-0687• infoladhfhsloco.org •www.hfhsloco.oro February 4, 2011 Tyler Corey Associate Planner Community Development Department City of San Luis Obispo 919 Palm St, San Luis Obispo,CA 93401 Dear Tyler, On behalf of the Board of Directors for Habitat for Humanity for San Luis Obispo County(HFHSLOCO), I am writing to request funding from the City of San Luis Obispo's Affordable Housing Funds for$38,783.The funds will be used as funding that when combined with CDBG funding in the amount of$211,217,that has been recommended for approval by the City Council, will be used by HFHSLOCO to purchase 3212 Rockview Place in San Luis Obispo for$250,000. HFHSLCO will be building three.individual homes for very-low income families on the Rockview property.. Each home will be approximately 1000 square feet in size,with 3 bedrooms and 1%bathrooms. As a "Green Builder" we will be seeking an Energy Star Rating for the homes. Services and funding to construct the homes will come from government funding, individuals,the business community and local churches, and organizations.This will allow us to maintain the affordability of these homes.The preliminary development plans for the project have been approved by the City Council, and$180,000 in CalHome funding has been obligated by the State and will be used for construction.. This project will provide homeownership opportunities for three very low income families earning between 25%and 50%of the AMI for San Luis Obispo County. HFHSLOCO is the only organization building homes for the very low income populace in the County. The design for the homes follows the simple, decent Habitat style and will be built using homeowner"sweat equity,"volunteer labor,and donated materials.The homeowners are provided zero-interest mortgages financed by Habitat.Sales prices ensure that homeowners pay no more than 25%of their gross monthly income for their mortgage payment, and the average sales price for the homes is approximately$100,000. By providing this funding,the City will be helping HFHSLOCO take one more step to reduce housing poverty in the County. Thank you for considering our request. We appreciate the support we have received from the City in the past,and hope that you will again support our efforts to provide simple, decent, affordable housing to families in San Luis Obispo. Best wishes, • /1 is K.Ogden Executive Director B2-7 C-S VICINITY MAP File No. 80=10 3212 ROCKVIEW— Attachment 1 .......... ............ Baa wau aas ,f}luewnp}io}}e}$q�eH vFFP F 90BA P9PA a as a � � d h9A .p.,,A a Y j M hhpYYh C hhhhhh p 8 4 fi ?"fi's5 i 7•it93 - @ @g Bane Ell it it `x yp _'y y A� P e P P 4 vFPi P r ,k .. Ec a as a flp g e hhY P .$ _ � P79i �$4.g .°9 3� S CC✓ ��' ef�rJ. q P 5S5°gSG - lid IXIi��ilifiIf g sae � • � � � � �y g 5�5 � s g d o i y} aA a as a . wY $d A_ i° i e 777 � a'p45 Ulm Q is lid 1501,11111 §5j b d F w al F PPPAP-'. §AAA �" 8 .3S�Ye•A � 'r•. Y w.hhY u 4 s � S aIFri IG LU s�c345 @' P" u P a biz`s z yhpp gg 8 636 B pp al Oo. B2-9 Attachment 1 ® .������w FIs .b}iueuln�p lal 1e3E9�9 PCO Ing Eli ll<41- ------------- N I ti i '\ r 1 T bEb � O L HohS , RV 1 Y \ / UA' ott ' Id M3I AH 0O tI Attachment 1 ® .�ogasoie •AjluRwnHVJOJ 4ell'(�H a e .. 1 - i i it ' I it 1! 1 ;pt9 igi�-J-T - ' t e S F � p 6 e ! . I M I .i .. ®' -- - _ I - a ri as ri wry m.r� 13®WrII QII••q:s 8G 1- 152-11 Attachment 1 oct��wai w+t<8� w'�co iws Amuiwpad �mmwwwmw .�qd�r uzuc j e R 0 r ¢_� b g S a g b O E g 0 F v -Ali i ## n F m § _ r., 0 \ � 9 m g pf gsg � ell O ❑ n a E a o m a J HIM §S� u HI o \1, 3 AM 3 W 3�tlld n�w{ooa � � m 9 g °a 0 w s mN< U 2-12 2 Attachment 2 EXQUISITE DETAIL ON A SOLID FOUNDATION O 1� February 4,2011 Mr.Tyler Corey Associate Planner O City of San Luis Obispo Community Development ^ 919 Palm Street F� San Luis Obispo ,CA 93401 RE: Request for Funding—313 South Street ODear Mr. Corey, We respectfully submit this request to the San Luis Obispo City for an estimated allocation of $2289.410 in affordable housing and CDBG funds.and fee deferrals to assist in the financing of the 43-unit affordable family project located at 313 South Street,San Luis Obispo. The 313 South Street development will be a new construction, 100%affordable,multifamily community with one manager unit and 42 units restricted to low,very low,and extremely low income families earning between 30%and 60%of area median income.This development will complement the Village at Board Street project currently under construction and will provide much needed affordable housing units to the City of San Luis Obispo. The breakdown of the requested allocation includes: • Affordable Housing Fund $650,000 • CDBG $400,000 • Fee Deferrals $1,239,410 (estimate) Total= $2,289,410 Attached is the Permits&Fees Estimates for your review,please confirm accuracy of the total. Asides the funding sources listed above,we understand the City is currently pursuing an additional $300,000 of HOME funds for this project.These additional funds would boost the project tiebreaker score on the competitive 9%tax credit application. We appreciate your consideration of this request.We look forward to a continued partnership with the City of San Luis Obispo as we work to bring this important project to fruition.Please do not hesitate to contact me with any questions or concerns you may have. Sincerely, Tung Tran Development Manager cc: Michael Codron,Assistant City Manager Jonathan Emami,ROEM 1650 Lafayette Street, Santa Clara, California 95050 Tel(408)984-5600 Fax 408-984-3111 www.roemcorp.com B2-13 --- SOUTH STREET APARTMENTS Attachment JGROEM Development Corporation Permits&Fees Estimates 313 South Street 43 Resrduntfet-' z'•y�''- .' Butlding Square Footage 43,952 Construction Valuation $5,016,000 Planning $25,405.00 Planning Commission Approval $2,600.00 PD Rezoning $8,068.00 GPA $14,737.00 Variance $0.00 PD Permit(w/GP and/or specific plan change $0.00 ARC Development Projects $0.00 Demolition Request $0.00 MISC Printing/Admin $0.00 Environmental $2,341.00 Initial Study Deposit $0.00 Negative Declaration Fee $2.341.00 BuOdmg $221,973.05 Plan Review Fee $46,204.24 Building Permit Fee $109,915.24 Energy Consumption Compliance Surcharge $10,991.52 Accesability Compliance Surcharge $7,144.49 Fire Safety Plan Review $19,007.33 Foe Safety Surcharge $19,235.17 Fire Systems $1,073.00 Waterway Management Fee $7,694.07 Demolition Pemdt Fee $0.00 Sign Permit Fee $208.00 Misc Inspection Fees(outside hours,reinspection,no fee indicated) $500.00 DPW $20,991.00 Improvement Plan Check $2,029.00 Construction Inspection $13,515.00 Encroachment Permit-269 linear feet of curb $1.618.00 Traffic Control $412.00 Water Meter-(4)1.5'Res Meter,(1)1'Common $3,41200 Planning Development Review.Fee $97,668.14 Engineering Dovolopmont Review Foo $33,295.96 Water Impact Fee $562,397.00 Sower Impact Fee $135,966.00 Traffic Impact Foe $126,205.00 Transportation Impact Fee $13,168.00 Per Pam Ricci email on 11612011 Inclusionary Housing Requirement $0.00 Sub-Totai= $1,239,410.15 School Foes $115,593.76 Total= $1,355,003.91 Per Unita $31,511.72 2/4/2011 DRAFT-FOR DISCUSSION PURPOSES ONLY PAGE 1 OF 1 B2-14 L,LLLIAttachment 2 14 I C r Rill VIM ` l J a SANDERCOCK 4 j -s-M pp� lYll !k� t I I _ I I alar i .I.�i I IIY I�F II rvl ! 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I rr r'kw\ r w z 4 � t �r r ro, y V k� ry x Y , r r. •'r • • CCCC3333 � nH 1 r a � I J f � Y 5� r i r k 4 I> � rl i..r. �� �t ll� I •, i II I r z _ l _ S +q L4 ROS::.4?:�� 2\t' .a . NO •oma ...' " .i ♦ :\\� illl�`ia ♦� jjj !i► J ir�.1 6. • i161 LgY7YgI.70�tp �.• � . .<., ♦ ,.\� \.... �:, is f,'..?.:`.•`.2�: :E, a I.`�p;."�. i— ice•�I �n� �I ``;,��J� • ��:.� :¢j;a Tee �{ •.�t +!;a [•7 INNIF ��♦"•Z`��,,L- • • —d'���' I����'1 II IIS, � .�—I . Attachment 3 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 R2_24 Resolution No.9263 (200�Series) Attachment 3 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: AM: Council Members Ewan,Mulholland,Schwartz,Vice Mayor Marx, and Mayor Settle NOES: None ABSENT: None The foregoing resolution was adopted this day of December 2001 Mayor Allen Settle ATTE T: Lee Price,City Clerk B2-25 Resolution No.9263(2COISeries) Attachment 3 Page 3 APPROVED AS TO FORM: J re .Jor nse , ity orney R2-2( Attachment 4 City of San Luis Obispo Housing Element,January 2010 Table 4 Regional Housing Need Allocation, City of San Luis Obispo January 2010 through December 2014 Income Category(% of County Median Regional Housing Need Allocation Income) SFHZ MFH Total Extremely Low(<30%)' 0 185 185 Very Low (30-50%)' 0 185 185 Low(51-80%) 104 155 259 Moderate(81-120%) 118 177 295 Above Moderate(> 120%) 266 399 665 TOTAL UNITS 488 1,101 1,589 Source: San Luis Obispo Council of Governments,October 2008 'Given the deep subsidies needed to construct extremely low and very-low income single-family units,most housing for these income groups is expected to be multi-family units. 2SFH refers to detached housing;MFH means multi-family housing. 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XXXX-11 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO APPROVING AFFORDABLE HOUSING FUND AWARDS FOR HABITAT FOR HUMANITY AND ROEM CORPORATION 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 March 1, 2011 for the purpose of considering multiple requests for Affordable Housing Fund(AHF) assistance; and WHEREAS, the projects and programs proposed by Habitat for Humanity and ROEM Corporation meet the eligibility criteria established by the City Council; 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. BE IT RESOLVED, by the City 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 Affordable Housing Fund awards: 1. 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: HFH: The project will create three for-sale deed-restricted affordable housing units for extremely-low and very-low income households earning 25% to 50% of the AMI within the County. ROEM: The project will create 42 for-rent deed-restricted affordable housing units for extremely-low, very-low and low-income households earning 30%to 60% of the AMI within the County. In addition,, the project would involve implementation of Housing Element Program 6.12, which specifically identifies the site as a location that should be considered for rezoning to allow infill housing. 2. Need. There exists a substantial or overarching need for the type of unit to be assisted, as follows: The City's Regional Housing Needs Allocation (RHNA) for the upcoming 5 years includes 185 units in the extremely-low income (<31% of AMI) category, 185 units in the very-low income (31-50% of AMI) category and 259 units in the low-income (51-80% of AMI) category. Both projects will assist the City in meeting these State housing targets. HFH.- The City's Housing Element includes quantified objectives for housing construction at various income levels. Because of the deep subsidies required for extremely-low and very low-income housing, the Housing Element assumes that all of the units constructed in the City for these income levels will be in the form of attached multi-family.units. This is shown B2-30 Attachment 6 Resolution No. (2011 Series) Page 2 in Housing Element Table 4: Regional Housing Need Allocation (Attachment 4). It is noteworthy that HFH is proposing to construct for-sale detached single-family homes for these affordability ranges given the State has determined it is too difficult to require local jurisdictions provide for this housing type. HFH is the only local, non-profit developer producing this type of affordable housing. ROEM: The project will assist the City meet its quantified objectives for multi-family rental housing in the 30%to 60%AMI range. 3. Suitability: The project to be assisted is appropriate for its location both in terms of land use and design, as follows: HFH: The project has received all discretionary approvals, including Minor Subdivision, Architectural Review and Affordable Housing Incentives, which found that the proposed land use and design are consistent with the development pattern of the neighborhood, and, it will not harm the general health, safety or welfare of those living or working on the site or in the vicinity. ROEM: On January 26, 2011, the Planning Commission recommended to the City Council approval of a General Plan Amendment and rezone for the project and found that the proposed land use and design will be compatible with other properties in the neighborhood, and, it will not harm the general health, safety or welfare of those living or working on the site or in the project vicinity. The site is adjacent to other high-density residential development and located along a transit line. 4. Timing: The project would better serve the City's needs if it were built immediately as opposed to later, as follows: HFH: The timing of the award is critical because the purchase agreement for the property requires a letter of commitment for funding by the end of March 2011. ROEM: The timing of the award is critical because the applicants are proposing to apply in March 2011 to the California Tax Credit Allocation Committee for 9% tax credits to help fund the project, which requires a letter of commitment for funding. 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, as follows: HFH: The financial effectiveness of the award is substantial because it leverages other funds, including $180,000 in CalHome funds and donations of goods and services, which will be used by HFH to complete construction of the homes. The subsidy will result in $12,927 per unit of AHF support. ROEM: Property acquisition would not occur without the proposed award of $650,000, which would also boost the project's score on the competitive 9% State tax credit application to help fund project construction. The subsidy will result in $15,476 per unit of AHF support. 6.Readiness: The project has all necessary City approvals and is ready to proceed, as follows: B2-31 Attachment 6 Resolution No. (2011 Series) Page 3 HFH.- The project has received all of its necessary discretionary approvals and is ready to move forward with acquisition once 2011 CDBG Program Year funds become available in the fall. ROEM: With City Council approval of the Planning Commission's recommendation, the project will have all necessary entitlements except final Architectural Review approval, which is expected by the end of March 2011. The project will be ready to move forward with property acquisition once 2011 CDBG Program Year funds become available in the fall. Section 2. Affordable Housing Fund Award, Habitat for Humanity. The City Council does hereby approve an Affordable Housing Fund grant in an amount not to exceed $38,783, subject to the following condition of approval: 1. Prior to release of any portion of the Affordable Housing Fund award, the applicant shall enter into an affordability agreement with the City of San Luis Obispo for three for- purchase extremely-low and very-low income affordable housing units for a term of 45 years, which will be recorded against the title of the properties. Section 3. Affordable Housing Fund Award, ROEM Corporation. The City Council does hereby approve an Affordable Housing Fund grant in an amount not to exceed $650,000, subject to the following condition of approval: 1. Prior to release of any portion of the Affordable Housing Fund award, the applicant shall enter into an affordability agreement with the City of San Luis Obispo for 42 for-rent extremely-low, very-low and low-income affordable housing units for a term of 55 years, which will be recorded against the title of the property. Upon motion of , seconded by , and on the following vote: AYES: NOES: ABSENT: The foregoing resolution was passed and adopted this 151 day of March, 2011. Mayor Jan Marx ATTEST: Elaina Cano City Clerk B2-32 Attachment 6 Resolution No. (2011 Series) Page 4 APPROVED AS TO FORM: i Chtistin ietrick L_.City Attorney B2-33