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HomeMy WebLinkAboutR-10632 Affordable Housing Fund Loans for 1379 Sydney, 860 Humbert, 3680 BroadRESOLUTION NO. 10632 (2015 Series) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, APPROVING AFFORDABLE HOUSING FUND LOANS FOR HASLO (1379 SYDNEY), HASLO (860 HUMBERT) AND HASLO /FOR THE FUTURE HOUSING (3680 BROAD) 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 June 16, 2015, for the purpose of considering multiple requests for Affordable Housing Fund (AHF) assistance; and WHEREAS, the proposed projects by HASLO and For the Future Housing, Inc, meet eligibility criteria established by the City Council; and WHEREAS, Housing Element policies and programs encourage and support the maintenance and rehabilitation of existing affordable housing as well as the construction of new infill affordable housing in the City; 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. Sydney: The project is exempt from environmental review per Section 15301, Existing Facilities, of the CEQA Guidelines since the project includes rehabilitation of an existing single - family residence involving no expansion of use 860 On the Wye: On March 17, 2009, the City Council adopted a Mitigated Negative Declaration ER 123 -08 for the project. On February 2, 2015, the Architectural Review Commission adopted an addendum to ER 123 -08 since the proposed project was generally consistent with the originally approved project and no additional mitigation measures were deemed necessary. Iron Works: On April, 8, 2015, the Planning Commission determined the project is exempt from environmental review per Section 15332, Class 32, In -Fill Development Projects, of the CEQA Guidelines since the project is consistent with applicable zoning regulations and General Plan policies, is located within City limits on a site consisting of less than five acres substantially surrounded by urban uses, has no value as habitat for endangered, rare or threatened species, would not result in significant effects relating to traffic, noise, air quality, or water quality, and the site can be adequately served by all required utilities and public services. R 10632 Resolution No. 10632 (2015 Series) Page 2 SECTION 2. Finditigs. The City Council does hereby make the following findings in support of the proposed AHF awards: 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: Sydney: The project will rehabilitate and preserve transitional housing that is affordable to very -low income households earning 30% to 50% of the Area Median Income within the City, currently occupied by five previously homeless individuals. The proposed award is consistent with General Plan Housing Element Policies 3.1, 3.7, 8.1, 8.12 and Programs 1.4, 3.13, 8.13. 860 On the Wye: This project will increase the supply of affordable rental housing for very -low and low income households with the construction of 20 new apartments, 10 of which will be prioritized for veterans that are homeless or at risk of being homeless. The proposed award is consistent with General Plan Housing Element Policies 2.4, 4.3, 6.10, 8.1, 8.12 and Programs 2.11, 6.19, 6.20, 8.13. Iron Works: The project will increase the supply of affordable rental housing for extremely -low, very -low and low income households with the construction of 46 new apartments. The proposed award is consistent with General Plan Housing Element Policies 2.4, 4.3, 6. 10, and Programs 2.11, 6.15, 6.19, 6.20. b. Need: There exists a substantial or overarching need for the type of unit to be assisted, as follows: Sydney: The Housing Element includes policies and programs to encourage the maintenance and rehabilitation of existing affordable housing in the City. The project will help the City meet its quantified objectives for rehabilitation projects for very - low income households. 860 On the Wye: The project will assist the City meet its quantified objectives for new affordable housing units for very -low and low income households. In addition, the project implements key Housing Element policies and programs aimed to increase the production of higher density infill affordable housing targeted towards those with special needs. Iron Works: The project will assist the City meet its quantified objectives for new affordable housing units for extremely -low, very -low and low income households. In addition, the project implements key Housing Element policies and programs aimed to increase the production of higher density infill affordable housing. c. Suitability: The project to be assisted is appropriate for its location both in terms of land use and design, as follows: Sydney: Transitional housing is an allowed use in the R -1 zone. This dwelling, located in a residential neighborhood, has been used as transitional housing for over 20 years, managed by HASLO and TMHA. 860 On the Wye: The project has received all discretionary approvals, including an Administrative Use Permit, Architectural Review and Affordable Housing Incentives, which found that the proposed land use and design are consistent with the Resolution No. 10632 (2015 Series) Page 3 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. Iron Works: The project has received all discretionary approvals, including a Minor Subdivision, Architectural Review, Planning Commission Use Permit 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. d. Timing: The project would better serve the City's needs if it were built immediately as opposed to later, as follows: Sydney: The timing of the award is critical because the home is in need of repairs in order to continue to provide transitional housing in the community. Housing rehabilitation projects keep the City's affordable housing stock in sound, safe condition and avoid the risk of losing affordable housing to disrepair. In addition, HASLO and TMHA have identified short-term temporary accommodations for residents as needed during repair work. 860 On the Wye: The timing of the award is critical because HASLO is proposing to apply on July 1, 2015, to TCAC for 9% tax credits to help fund the project, which requires a letter of commitment for funding. Iron Works: The timing of the award is critical because the applicants are proposing to apply on July 1, 2015, to TCAC for 9% tax credits to help fund the project, which requires a letter of commitment for funding. e. 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: Sydney: Financing for rehabilitation projects is extremely limited and the project will not be financially feasible in the near term without AHF support. It should be noted that all funds for the original acquisition and ongoing operations have been provided by HASLO and TMHA without City subsidies. 860 On the Wye: The financial effectiveness of the award is substantial because it will leverage an estimated $4 million in other federal, state and private funding sources. Without an AHF award the project will likely be unsuccessful in receiving an award from TCAC, which is a key piece to the project's financing package. Iron Works: The financial effectiveness of the award is substantial because it will leverage an estimated $12 million in other federal, state and private funding sources. Without an AHF award the project will likely be unsuccessful in receiving an award from TCAC, which is a key piece to the project's financing package. Resolution No. 10632 (2015 Series) Page 4 f. Readiness: The project has all necessary City approvals and is ready to proceed, as follows: Sydney: The rehabilitation project does not require discretionary approvals and is ready to proceed pending necessary building permits. 860 On the Wye: The project has received all discretionary approvals and is ready to proceed pending an award from TCAC and necessary building permits. Iron Works: The project has received all discretionary approvals and is ready to proceed pending an award from TCAC and necessary building permits. SECTION 3. AHF Award, HASLO (1379 Sydney). The City Council does hereby approve an AHF loan in an amount not to exceed $95,814, subject to the following condition of approval: a. Prior to release of any portion of the AHF award, the applicant shall enter into an affordability agreement with the City to provide affordable rental housing located at 1379 Sydney for a term of 55 years, which will be recorded against the title of the property. SECTION 4. AHF Award,'HASLO (860 On the Wye). The City Council does hereby approve an AHF loan in an amount not to exceed $352,029, subject to the following condition of approval: a. Prior to release of any portion of the AHF award, the applicant shall enter into an affordability agreement with the City for 20 for -rent affordable housing units located at 860 Humbert for a term of 55 years, which will be recorded against the title of the property. SECTION 5. AHF Award, HASLO /For the Future Housing, Inc_. (Iron Works). The City Council does hereby approve an AHF loan in an amount not to exceed $920,000, subject to the following condition of approval: a. Prior to release of any portion of the AHF award, the applicant shall enter into an affordability agreement with the City for 46 for -rent affordable housing units located at 3680 Broad for a term of 55 years, which will be recorded against the title of the property. Upon motion of Vice Mayor Ashbaugh, seconded by Council Member Christianson, and on the following roll call vote: AYES: Council Members Carpenter, Christianson, and Rivoire, Vice Mayor Ashbaugh, and Mayor Marx NOES: None ABSENT: None Resolution No. 10632 (2015 Series) The foregoing resolution was adopted this 16`h day of June, 2015. Mayor Jan & x ATTEST: APPROVED AS Dietrick City Attorney Page 5 IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, this ',, `' day of ATv{G 4 nthony J. City Clerk