HomeMy WebLinkAbout05-03-2016 Item 06 Affordable Housing Fund Request for Habitate for Humanity
Meeting Date: 5/3/2016
FROM: Michael Codron, Community Development Director
Prepared By: Jenny Wiseman, Planning Technician
SUBJECT: AFFORDABLE HOUSING FUND GRANT REQUEST OF $35,000 FOR
HABITAT FOR HUMANITY OF SAN LUIS OBISPO COUNTY TO
REHABILITATE 214 HIGHLAND DRIVE
RECOMMENDATION
1. Adopt a resolution approving an Affordable Housing Fund grant in the amount not to
exceed $35,000 to Habitat for Humanity of San Luis Obispo County for home
rehabilitation; and
2. Approve modification to allow a reduced affordability term of fifteen (15) years.
DISCUSSION
The Affordable Housing Fund (“AHF”) has been collected from commercial and residential
developers to meet the City’s Inclusionary Housing Ordinance “in-lieu” of those developers
providing actual housing units. State planning and zoning law requires the fund to be used only
for the purpose that it was established – to support affordable housing in the City of San Luis
Obispo. These funds are awarded at the City Council’s sole discretion, based on previously
adopted criteria (Attachment A). Requests for AHF support are evaluated by staff and forwarded
to the City Council for consideration. The project requesting funds is described below and
evaluated for how it meets these criteria.
Overview of Request
Habitat for Humanity of San Luis Obispo County (“HFH”) is requesting a grant not to exceed
$35,000 to rehabilitate one single family residence as part of their Home Rehabilitation and
Home Preservation program (Attachment B). HFH’s Home Rehabilitation and Home
Preservation program is intended to preserve the affordable housing stock in the County by
helping low-income residents maintain their homes. Due to the high cost of housing in San Luis
Obispo County, these programs are primarily serving senior, low-income homeowners of which
95% are single, senior women with health issues who rely on social security benefits. As a result,
the program preserves low-income owner occupied housing units, and incorporates an aging in
place program by assessing the homes for safety and compatibility with the physical needs of the
owners.
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This particular single family residence is located at 214 Highland Drive and owned by a low -
income senior. The homeowner meets City and HFH low-income requirement (30-60% of the
median income), and has passed HFH’s home inspection, financial review, family selection
interviews, and Board approval for candidate selection. The homeowner has signed an agreement
with HFH requiring the contribution of ownership interest through in-kind hard work, “sweat
equity”, into the rehabilitation (Attachment C).
Reduced Affordability Term
Typically, AHF awards are required to provide affordability restrictions for a minimum of 30
years. HFH is requesting a deed restricted period of fifteen (15) years for this specific home
rehabilitation project. Reasoning for the request is based on the homeowner’s age, compliance
with HUD home preservation standards which recommends a 15 year affordability term, and
because HFH will enter into a 15 year interest free loan with the homeowner for the remaining
funds needed to complete the project.
The following Housing Element policies and programs support the grant request including the
reduced affordability term:
Housing Element Program 1.4: Rehabilitate using Federal, State, and local housing
funds, with the objectives of 30 single-family, 75 multi-family, 10 historic, and 20 mobile
homes for extremely low, very low, low, and moderate income homeowners and renters.
Housing Element Policy 2.3: For housing to qualify as affordable, guarantees must be
presented that ownership units will remain affordable for the longest period allowed by
state law, or for a shorter period under a housing rehabilitation agreement with the City.
In addition, as a part of the City’s Regional Housing Needs Assessment (RHNA), the City’s
Quantified Objectives include rehabilitation of 75 low-income units, and financial assistance to
60 low-income units. The City’s rehabilitation objectives also include using the AHF to
rehabilitate or preserve 35 low-income units.
Should the homeowner sell the home to a non income eligible household before the end of the 15
year affordable requirement, the grant shall become immediately due and payable. If the
homeowner remains in the home, or sells the home to a low-income household, no repayment of
the grant shall be due.
Award Criteria
In making recommendations to the City Council for how AHF funds should be allocated, staff
considers Council adopted criteria including eligibility, need, suitabil ity, timing, financial
effectiveness and readiness (Attachment A). The following is an analysis of the request relative
to 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:
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The project will rehabilitate and preserve a single family residence occupied by one, low -
income senior. By providing the grant to HFH for rehabilitation, the required deed restriction
will add one new dwelling to the City’s affordable housing inventory. The proposed award is
consistent with General Plan Housing Element Policies 3.1, 3.7, and Programs 1.4, 3.9.
Need: There exists a substantial or overarching need for the type of unit to be assisted, as
follows:
The Housing Element includes policies and programs to encourage the maintenance and
rehabilitation of affordable housing in the City. The project will help t he City meet its
quantified objectives for rehabilitation projects for low-income households. In addition, the
project implements key Housing Element policies and programs.
Suitability: The project to be assisted is appropriate for its location both in terms of land use
and design, as follows:
The project will rehabilitate an existing, single family residence in the R-1 zone. The
proposal does not involve any changes to the site or its surroundings and will involve
minimal changes to the exterior of the home. In addition, the request assists the City to meet
Housing Element rehabilitation goals.
Timing: The project would better serve the City’s needs if it were built immediately as opposed
to later, as follows:
The timing of the award is critical because the homeowner has entered into a contract with
HFH that schedules work to be completed by June 31, 2016. Housing rehabilitation projects
keep the City’s affordable housing stock in sound, safe condition and avoid the risk of losing
affordable housing to disrepair. If the project is delayed, required repairs could become more
extensive.
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:
Financing for rehabilitation projects is extremely limited and the project will not be
financially feasible in the near term without AHF support. The funds will leverage an
additional $10,000 from HFH and 30 hours of contribution of ownership interest through in-
kind hard work, “sweat equity”.
Readiness: The project has all necessary City approvals and is ready to proceed, as follows:
The rehabilitation project does not require discretionary approvals and is ready to proceed
pending necessary building permits. HFH has already met with City building officials
regarding needed permits and code compliance.
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STATUS OF THE AHF
A status report on the AHF is attached (Attachment D). The report indicates that if the proposed
allocation is approved by the City Council, the fund will retain $1,107,388 to allocate to future
affordable housing projects.
Staff is recommending funding for the current request listed in the table below. The attached
resolution (Attachment E) recommends funding for a total not to exceed $35,000. The proposed
funding amounts to approximately 3% of the funds currently available to be allocated to new
projects. Based on approximately one month of building permit activity, this amount of funding
will be restored to the AHF by summer 2016.
Current Requests AHF Available Balance $1,142,388
HFH – 214 Highland Drive 1 Unit $35,000
Current Request Total 1 Unit $35,000
Net Available for New Programs if Current Request Approved $1,107,388
ENVIRONMENTAL REVIEW
The project is exempt from environmental review per Section 15061 (b)(3) General Rule of the
CEQA Guidelines. The project is an action to award funding. Each project awarded funding will
be subject to CEQA at the time the project is filed. It can be seen with certainly that the proposed
action to award funding will have no significant effect on the environment.
FISCAL IMPACTS
The recommended allocations 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
$1,107,388 remaining in the AHF after this award. The project will have no impact on the
General Fund.
ALTERNATIVES
1. Do not authorize AHF awards for the proposed project. This action is not recommended
because the project appears to meet the criteria for AHF assistance and is consistent with
the Housing Element of the General Plan.
2. Do not authorize the reduced 15 year affordability term. This action is not recommended
because the project cannot move forward with a longer term due to Habitat for Humanity
requirements.
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2. Approve an AHF award of a different amount. The City Council can approve awards for
a different amount other than the recommendation.
3. Continue consideration of the proposed award. The City Council can direct staff to
return with additional information regarding the funding request so that a final decision
on the award amount can be made.
Attachments:
a - Resolution 9263
b - Habitat for Humanity Affordable Housing Fund Grant Request
c - HFH Home Rehabilitation Program - Homeowner Agreement
d - Affordable Housing Fund Status
e - Draft Resolution
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Homeowner Agreement
THIS HOMEOWNER AGREEMENT (the “Agreement”) is signed on this _____ day of ________, 20__
between HFHSLOCO for Humanity for San Luis Obispo County (“HFHSLOCO”), a California nonprofit
corporation with an address of P.O. Box 613 San Luis Obispo, CA 93406, and Sharon Wood, 214
Highland Drive, San Luis Obispo, CA 93405 (“Homeowner”).
Background Statement
(a) Homeowner is the owner of record and the primary occupant of a residence located at 214 Highland
Drive, San Luis Obispo, CA 93405 (the “Property”).
(b) In keeping with its mission to provide decent, affordable housing for qualified families in San Luis
Obispo County, State of California, HFHSLOCO provides various programs for home repair to
qualified families on favorable terms. HFHSLOCO has selected Homeowner for participation in the
following program(s) (“Program”): Home Rehabilitation
In consideration of the mutual agreements set forth in this Agreement, HFHSLOCO and Homeowner
agree as follows:
1. Work to be Performed on the Property.
(a) Scope of Work. The work to be performed on the Property (the “Work”) is described in Exhibit A
of this Agreement. Homeowner acknowledges that Homeowner has reviewed and approved the
description of the Work.
(b) No Future Work. Homeowner understands that HFHSLOCO is not undertaking to perform
ongoing maintenance of the Property. Future maintenance and upkeep of the Property is solely
the responsibility of Homeowner.
(c) Certificate of Completion. Upon completion of the Work, Homeowner will be asked to sign a
Certificate of Completion in the form attached as Exhibit B to this Agreement.
2. Sweat Equity. Homeowner and any additional able-bodied adult(s) (18 years or older) residing at the
Property agree to contribute at least 30 total hours to the Work or, in the discretion of HFHSLOCO,
other HFHSLOCO houses (“Sweat Equity”). Homeowner’s extended family and friends may
contribute up to 15 hours of the required Sweat Equity. Homeowner acknowledges that Sweat
Equity is a requirement of the Program and that no compensation will be paid to Homeowner or
others for performance of Sweat Equity under any circumstances, including any termination of this
Agreement pursuant to Section 8.
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3. Price and Payment. The total price for performance of the Work, including all labor, materials
and other charges, will be no more than $45,000. Exhibit A: Preliminary Scope of Work has been
developed using preliminary estimates of the prioritized items 1 through 13. Additional
investigation, inspection, and research will be performed by HFHSLOCO as the project progresses to
determine a final estimate of the project’s cost. An increase or decrease in the cost for each item
listed in Exhibit A will determine what items can be completed. The overall scope of the work cannot
be increased beyond the $45,000 HFHSLOCO will expend on the project. The price will be paid by
Homeowner to HFHSLOCO through equal monthly installments over a term of 10-15 years.
Homeowner’s obligation to pay the price will be evidenced by an interest-free promissory note in
the amount of the price, payable by Homeowner to HFHSLOCO (the “Note”). The total price will be
reduced by the total value/amount for in kind donations received by HFHSLOCO in services and
material for this project. The Note will be secured by a mortgage in favor of HFHSLOCO. The
mortgage will be recorded against the Property and will be subordinate to any mortgages currently
recorded against the Property.
4. Insurance and Property Taxes. Homeowner agrees that Homeowner holds a valid homeowner’s
insurance policy on the Property and that Homeowner is current in premium payments on such
policy and that all property tax payment are current.
5. HFHSLOCO Warranties. For a period of one (1) year after the execution of the Certificate of
Completion, HFHSLOCO will correct, at its own expense, any defects in the Work due to defective
materials and/or workmanship. Homeowner will give HFHSLOCO written notice of any such defects
promptly after discovery and, in any event, prior to expiration of the one (1)-year warranty period.
This warranty does not cover loss or damage to personal property; loss or damage resulting from
Homeowner’s failure to promptly notify HFHSLOCO of a problem; or normal wear and tear.
HFHSLOCO will convey to Homeowner any warranties by manufacturers or suppliers on individual
materials, products, or systems supplied by HFHSLOCO under this Agreement.
6. Schedule. HFHSLOCO will cooperate with Homeowner to prepare an estimated time schedule
relating to the Work, and Homeowner will make the Property available for performance of the Work
on the days required by the schedule. Subject to confirmation of the Work schedule and subject to
delays due to inclement weather or other unforeseen events, HFHSLOCO shall use best efforts to
commence the Work by February 15, 2016, and to complete the Work by June 31, 2016.
7. Right of Entry. Homeowner understands that a portion of the Work will be performed within
Homeowner’s residence. Accordingly, Homeowner agrees that HFHSLOCO and its agents,
contractors, employees and volunteers may have access to the interior of the Property for the
purpose of: (i) inspecting, measuring and gathering information related to the Work; (ii) installing,
implementing, constructing, or otherwise performing activities related to the Work; and (iii)
performing any other such actions as are reasonably contemplated by the Program and this
Agreement.
8. Termination of Agreement.
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(a) If Homeowners requests that work be stopped on the project before completion of the work to
be performed (as outlined in Exhibit A), the Homeowner must pay in full the amount that
HFHSLOCO has expended, financially committed to, and any penalties for the work completed or
committed to as of the date that the Homeowner notifies HFHSLOCO that she wishes the work
to be stopped and terminates the agreement.
(b) HFHSLOCO’s acceptance of Homeowner as a HFHSLOCO partner family was based on the
information contained in Homeowner’s application. If HFHSLOCO determines that the
information contained in Homeowner’s application was materially inaccurate or if there is a
materially negative change in Homeowner’s financial situation, such as the loss of employment,
HFHSLOCO reserves the right to terminate this Agreement. Homeowner should notify
HFHSLOCO as soon as possible if there is a significant change in Homeowner’s financial situation.
In addition, HFHSLOCO reserves the right to terminate this Agreement (a) if any of Homeowner’s
obligations under the Agreements are not fulfilled, including the requirements under Section 2
or Section 3 of the Agreement.
(c) Limitation of Liability. Neither HFHSLOCO nor its agents, contractors, directors, employees,
officers, volunteers or other representatives shall have any liability or responsibility for any
damages, loss or injury of any kind, direct or indirect, to any person or to any property in any
way caused by or resulting from the performance of the Work in connection with this
Agreement, except as caused by the negligence or willful misconduct of HFHSLOCO or any of the
above-designated persons. Without limiting the generality of the foregoing, to the extent that
HFHSLOCO is found liable for property damage to the Property in accordance with this Section 9,
HFHSLOCO shall compensate Homeowner only for the reasonable documented cost of
necessary repairs.
(d) No Responsibility for Mold. HFHSLOCO will not perform mold remediation services or provide
any evaluation of mold conditions at the Property. Neither HFHSLOCO nor its agents,
contractors, directors, employees, officers, volunteers or other representatives shall have any
liability or responsibility whatsoever for any damages, loss or injury of any kind, direct or
indirect, related in any way to mold.
(e) Photograph/Video Release. Homeowner grants and conveys in perpetuity to HFHSLOCO all
right, title and interest in any and all photographic images, printed interviews or statements,
and video or audio recordings made by HFHSLOCO and/or its agents, contractors, directors,
employees, officers, volunteers and other representatives in the course of performing the Work,
including, but not limited to, any royalties, proceeds or other benefits derived from such
photographs, printed materials or recordings.
(f) Miscellaneous. This is a legally binding contract. You may seek legal counsel before executing
this Agreement. This Agreement contains the entire agreement between HFHSLOCO and
Homeowner and supersedes any and all prior oral or written statements or agreements
regarding the subject matter of this Agreement. There are no promises, agreements, conditions,
undertakings, warranties or representations, oral or written, express or implied, between the
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parties, other than as set forth in this Agreement. This Agreement may only be changed by a
written agreement signed by HFHSLOCO and Homeowner. Homeowner may not assign its rights
under this Agreement.
(g) Cooling Off Period Notice. You, the buyer, may cancel this transaction at any time prior to
midnight of the third business day after the date of this transaction. See the attached notice
of cancellation form for an explanation of this right.
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IN WITNESS WHEREOF, the parties have executed this Agreement on the day and year first written
above.
Homeowner: Habitat for Humanity Affiliate:
Sharon Wood Habitat for Humanity for San Luis Obispo Co
_____________________________________ ______________________________________
Print Name: ___________________________ Print Name: ____________________________
Date: ________________________________ Title: _________________________________
Date: _________________________________
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Exhibit A: Preliminary Scope of Work
1. Replace and relocate locate electrical panel currently located in closet.
2. Inspect and service furnace; repair as necessary.
3. Install new comp. shingle roof, aluminum gutters and downspouts, and associated flashing over
existing roof assumed single layer comp. shingle.
4. Repair driveway drainage (solution TBD).
5. Install R-30 BATT floor insulation throughout home.
6. Install new dual-pane windows throughout house and new dual-pane sliding patio doors at the
master bedroom and dining room.
7. Scope and inspect supply and drain lines; repair leak at master shower and elsewhere as necessary.
8. Install new wall oven and above-the-range microwave.
9. Install fire-rated man door with self-closer between garage and dining room.
10. Repair front door interior trim and add weather stripping.
11. Replace fence in backyard and repair retaining wall.
12. Clean-up front yard landscaping in conjunction with drainage repair.
13. Scrap and paint fascia all around; possibly install new drip edge and gutters.
14. All necessary design, engineering, and permitting for the below listed items.
Note: HFHSLOCO will not perform mold remediation services or provide any evaluation of mold
conditions at the Property. Neither HFHSLOCO nor its agents, contractors, directors, employees,
officers, volunteers or other representatives shall have any liability or responsibility whatsoever for
any damages, loss or injury of any kind, direct or indirect, related in any way to mold.
6.c
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Exhibit B: Certificate of Completion
I certify that the work set forth in Exhibit A to this Agreement has been completed in its entirety and to
my satisfaction.
Homeowner:
Sharon Wood
____________________________________
Print name: ___________________________
Date: ________________________________
[Insert additional homeowner names and signature lines if applicable]
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Exhibit C: NOTICE OF CANCELLATION*
*Only required in certain circumstances – see Section 13 and associated footnote in the Agreement.
Notice of Cancellation
[enter date of transaction]
(Date)
You may CANCEL this transaction, without any Penalty or Obligation, within THREE BUSINESS DAYS from
the above date.
If you cancel, any property traded in, any payments made by you under the contract or sale, and any
negotiable instrument executed by you will be returned within TEN BUSINESS DAYS following receipt by
the seller of your cancellation notice, and any security interest arising out of the transaction will be
cancelled.
If you cancel, you must make available to the seller at your residence, in substantially as good condition
as when received, any goods delivered to you under this contract or sale, or you may, if you wish,
comply with the instructions of the seller regarding the return shipment of the goods at the seller's
expense and risk.
If you do make the goods available to the seller and the seller does not pick them up within 20 days of
the date of your Notice of Cancellation, you may retain or dispose of the goods without any further
obligation. If you fail to make the goods available to the seller, or if you agree to return the goods to the
seller and fail to do so, then you remain liable for performance of all obligations under the contract.
To cancel this transaction, mail or deliver a signed and dated copy of this Cancellation Notice or any
other written notice, or send a telegram, to Habitat for Humanity for San Luis Obispo County, at 189
Cross Street San Luis Obispo, CA 93401 NOT LATER THAN MIDNIGHT OF [insert actual date - 3 business
days from Date above].
I HEREBY CANCEL THIS TRANSACTION.
(Date) _________________________________________
(Buyer's signature) ______________________________
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City of San Luis Obispo
Fiscal Status of Affordable Housing Fund
March 23, 2016 - Point in Time Status
Revenues, Expenditures and Changes in Fund Balance
Expenditures
Fiscal Year In-Lieu Fees Interest Rents
BEGIN funds
reimbursement
BEGIN reuse
funds*
BEGIN City
matching funds*Total (Note 2)Beginning Ending
2000-01 (Note 1)193,700 8,200 201,900 201,900
2001-02 464,900 20,000 484,900 201,900 686,800
2002-03 747,800 28,300 776,100 (215,000) 686,800 1,247,900
2003-04 60,500 8,500 69,000 (30,000) 1,247,900 1,286,900
2004-05 323,300 32,500 355,800 (30,000) 1,286,900 1,612,700
2005-06 1,863,700 68,500 1,932,200 1,612,700 3,544,900
2006-07 627,200 160,500 787,700 (530,000) 3,544,900 3,802,600
2007-08 682,400 155,600 838,000 (630,000) 3,802,600 4,010,600
2008-09 465,700 199,700 1,400 666,800 (892,500) 4,010,600 3,784,900
2009-10 (21,300) 32,600 9,000 270,000 290,300 (3,407,600) 3,784,900 667,600
2010-11 332,800 16,000 3,900 30,000 382,700 (39,800) 667,600 1,010,500
2011-12 848,800 21,900 870,700 (112,700) 1,010,500 1,768,500
2012-13 182,700 700 183,400 (30,000) 1,768,500 1,921,900
2013-14 777,300 12,700 100,955 117,857 1,008,812 (47,000) 1,921,900 2,883,712
2014-15 159,602 9,193 86,430 93,121 348,346 (697,000) 2,883,712 2,535,058
2015-16 479,776 5,760 485,536 (569,423) 2,535,058 2,451,171
Cumulative Total 8,188,878 780,653 14,300 300,000 187,385 210,978 9,682,194 (7,231,023) 2,451,171
BEGIN Grant Down Payment Assistance - Program Income (65,805)
City Down Payment Assistant - Program Income (210,978)
Subtotal of funds available for future down payment assistance (276,783)
Commitment to the General Fund Transfer (52,000)
Commitment for Iron Works Approved 2015 #10632 not yet funded (920,000)
Commitment for 2-22-16 SLO County Housing Trust Fund Operating Expenses, not yet funded (60,000)
Total Available of New Programs at February 29, 2016 1,142,388
NOTES
1.2000-01 is the first year that in-lieu fees were received.
2.Expenditure Summary To-Date
Year Purpose Amount TTl by Year
2004-05 Operating Support: SLO County Housing Trust Fund 30,000 30,000
2006-07 People's Self-Help Housing: Villas at South Higuera 500,000
2006-07 Operating Support: SLO County Housing Trust Fund 60,000 560,000
(Two-Year Commitment)
2007-08 Housing Authority, Humbert Project 600,000 600,000
2008-09 First time home buyers' program 34,400
2008-09 Habitat for Humanity 332,500
2008-09 SLO County Housing Trust 30,000
2008-09 3591 Sacramento #53 310,100
2008-09 Laurel Creek BEGIN funds 185,500 892,500
2009-10 Wineman hotel 1,500,000
2009-10 First time home buyers' program (refund)(9,300)
2009-10 Laurel Creek BEGIN funds 514,500
2009-10 Housing Authority, Humbert Project 109,900
2009-10 Aids Support Remodel 82,800
2009-10 Village at Broad 1,034,400
2009-10 3592/3594 Broad Street 174,700
2009-10 3591 Sacramento #53 600 3,407,600
2010-11 Housing Trust Fund 30,000
2010-11 3591 Sacramento #53 3,100
2010-11 3592/3594 Broad Street 6,700 39,800
2011-12 3591 Sacramento #53 1,200
2011-12 3212 Rockview 38,800
2011-12 3592/3594 Broad Street -
2011-12 Judson Terrace Termite Repair 42,700
2011-12 Housing Trust Fund 30,000 112,700
2012-13 Housing Trust Fund 30,000 30,000
2013-14 Housing Trust Fund 30,000
2013-14 Transfer to General Fund- for housing program administration costs 17,000 47,000
2014-15 Housing Trust Fund 30,000
2014-15 313 South Street 650,000
2014-15 Transfer to General Fund- for housing program administration costs 17,000 697,000
2015-16 860 On the Wye 352,029
2015-16 First time home buyers' program Loans (Begin Program)121,580
2015-16 Affordable Housing Loan 95,814 569,423
Total 7,231,023 7,231,023
Revenues Fund Balance
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R ______
RESOLUTION NO. _____ (2016 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, APPROVING AN AFFORDABLE HOUSING
FUND AWARD FOR HABITAT FOR HUMANITY OF SAN LUIS OBISPO
COUNTY
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 May 3, 2016 for the
purpose of considering a request for Affordable Housing Fund (AHF) assistance; and
WHEREAS, the project proposed by Habitat for Humanity of San Luis Obispo County
(HFH) meets the eligibility criteria established by the City Council; and
WHEREAS, the proposed project recommended for funding at this time is exempt under
the California Environmental Quality Act; 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 adopt the foregoing recitals and
make the following findings in support of the proposed Affordable Housing Fund awards:
1. Eligibility: The project will increase or improve the City’s affordable housing inventory and
promote General Plan policies regarding housing, as follows:
The project will rehabilitate and preserve a single family residence occupied by one, low -
income senior. By providing the grant to HFH for rehabilitation, the required deed restriction
will add one new dwelling to the City’s affordable housing inventory. The proposed award is
consistent with General Plan Housing Element Policies 3.1, 3.7, and Programs 1.4, 3.9.
2. Need: There exists a substantial or overarching need for the type of unit to be assisted, as
follows:
The Housing Element includes policies and programs to encourage the maintenance and
rehabilitation of affordable housing in the City. The project will help the City meet its
quantified objectives for rehabilitation projects for low-income households. The
rehabilitation of this unit allows a low-income senior the opportunity to remain a homeowner
as opposed to finding a unit in the limited affordable senior rental housing options.
3. Suitability: The project to be assisted is appropriate for its location both in terms of land use
and design, as follows:
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Resolution No. (2016 Series) Page 2
R ______
The project will rehabilitate an existing, single family residence in the R-1 zone. The
proposal does not involve any changes to the site or its surroundings and will involve
minimal changes to the exterior of the home. In addition, the request assists the City meet
Housing Element rehabilitation goals.
4. Timing: The project would better serve the City’s needs if it were built immediately as
opposed to later, as follows:
The timing of the award is critical because the homeowner has entered into a contract with
HFH that schedules work to be completed by June 31, 2016. Housing rehabilitation projects
keep the City’s affordable housing stock in sound, safe condition and avoid the risk of losing
affordable housing to disrepair. If the project is delayed, required repairs could become more
extensive.
5. Financial Effectiveness: But for the requested funding, the project would not be feasible; or
the project leverages significant additional funding from other sources, as follows:
Financing for rehabilitation projects is extremely limited and the project will not be
financially feasible in the near term without AHF support. The funds will leverage an
additional $10,000 from HFH and 30 hours of contribution of ownership interest through in-
kind hard work, “sweat equity”.
6. Readiness: The project has all necessary City approvals and is ready to proceed, as follows:
The rehabilitation project does not require discretionary approvals and is ready to proceed
pending necessary building permits. HFH has already met with City building officials
regarding needed permits and code compliance.
SECTION 2. Environmental Determination. The City Council has determined that the above
action will not have a significant impact on the environment, as defined by §15061(b)(3) of the
California Environmental Quality Act and is exempt from environmental review.
SECTION 3. Affordable Housing Fund Award to Habitat for Humanity of San Luis
Obispo County. The City Council does hereby approve an Affordable Housing Fund grant not
to exceed $35,000, subject to the following conditions of approval:
1. The applicant shall obtain at least three bids for the work to be accomplished.
2. Distribution of the approved award shall be made only after an invoice is submitted from
the approved contractor with the lowest reasonable bid for the work, up to the total cost
of the project, or $35,000, whichever is less.
3. All construction permits must be obtained for any repair work that requires permitting
and inspection, to the approval of the City’s Chief Building Official.
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Resolution No. (2016 Series) Page 3
R ______
4. Prior to release of any portion of the AHF award, the homeowner shall enter into an
affordability agreement with the City for affordable low-income housing located at 214
Highland Drive for a term of 15 years, which will be recorded against the title of the
property.
5. Prior to the release of any portion of the AHF award, HFH shall enter into an AHF Grant
Agreement with the City.
Upon motion of , seconded by , and on the
following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was passed and adopted this 3rd day of May, 2016.
____________________________________
Mayor Jan Marx
ATTEST:
____________________________________
Lee Price, MMC
Interim City Clerk
APPROVED AS TO FORM:
_____________________________________
J. Christine Dietrick
City Attorney
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 ______________, _________.
______________________________
Lee Price, MMC
Interim City Clerk
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