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Home My WebLink Aboutr10247affordablehousingfundawardsRESOLUTION NO . 10247 (2011 Series ) A RESOLUTION OF THE CITY OF SAN LUIS OBISPO APPROVIN G AFFORDABLE HOUSING FUND AWARDS FOR HABITAT FOR HUMANITY AN D ROEM CORPORATIO N WHEREAS,the City Council of the City of San Luis Obispo met in the Counci l Chamber of City Hall, 990 Palm Street, San Luis Obispo, California, on March 1, 2011 for th e purpose of considering multiple requests for Affordable Housing Fund (AHF) assistance ; an d WHEREAS,the projects and programs proposed by Habitat for Humanity and ROE M Corporation meet the eligibility criteria established by the City Council ; an d 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 a t said meeting . NOW, THEREFORE, BE IT RESOLVED,by the City Council of the City of San Lui s Obispo as follows : SECTION 1 .Findings .The City Council does hereby make the following findings i n 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, a s follows : HFH.•The project will create three for-sale deed-restricted affordable housing units fo r extremely-low and very-low income households earning 25% to 50% of the AMI within th e County . ROEM.The project will create 42 for-rent deed-restricted affordable housing units fo r extremely-low, very-low and low-income households earning 30% to 60% of the AMI withi n the County . In addition, the project would involve implementation of Housing Elemen t 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, a s follows : The City's Regional Housing Needs Allocation (RHNA) for the upcoming 5 years include s 185 units in the extremely-low income (<31% of AMI) category, 185 units in the very-lo w 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 constructio n R 10247 Resolution No . 10247 (2011 Series) Page 2 at various income levels . Because of the deep subsidies required for extremely-low and ver y low-income housing, the Housing Element assumes that all of the units constructed in th e 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 . It is noteworthy that HF H is proposing to construct for-sale detached single-family homes for these affordability range s given the State has determined it is too difficult to require local jurisdictions provide for thi s housing type . HFH is the only local, non-profit developer producing this type of affordabl e housing . ROEM:The project will assist the City meet its quantified objectives for multi-family renta l housing in the 30% to 60% AMI range . 3.Suitability :The project to be assisted is appropriate for its location both in terms of lan d 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 propose d land use and design are consistent with the development pattern of the neighborhood, and, i t will not harm the general health, safety or welfare of those living or working on the site or i n the vicinity . ROEM:On January 26, 2011, the Planning Commission recommended to the City Counci l approval of a General Plan Amendment and rezone for the project and found that th e 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 th e site or in the project vicinity . The site is adjacent to other high-density residentia l development and located along a transit line . 4.Timing :The project would better serve the City's needs if it were built immediately a s opposed to later, as follows : HFH:The timing of the award is critical because the purchase agreement for the propert y 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 i n March 2011 to the California Tax Credit Allocation Committee for 9% tax credits to hel p fund the project, which requires a letter of commitment for funding . 5.Financial Effectiveness :But for the requested assistance, the project would not b e economically feasible ; or AHF funding "leverages" significant additional funding from othe r sources, as follows : HEH: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 b e used by HFH to complete construction of the homes . The subsidy will result in $12,927 pe r unit of AHF support. Resolution No . 10247 (2011 Series ) Page 3 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 applicatio n 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 : HFH:The project has received all of its necessary discretionary approvals and is ready t o move forward with acquisition once 2011 CDBG Program Year funds become available i n the fall . ROEM:With City Council approval of the Planning Commission's recommendation, th e 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 Cit y Council does hereby approve an Affordable Housing Fund grant in an amount not to excee d $38,783, subject to the following condition of approval : 1 . Prior to release of any portion of the Affordable Housing Fund award, the applicant shal l enter into an affordability agreement with the City of San Luis Obispo for three for-purchas e extremely-low and very-low income affordable housing units for a term of 45 years, whic h will be recorded against the title of the properties . SECTION 3 .Affordable Housing Fund Award, ROEM Corporation .The City Counci l 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 shal l enter into an affordability agreement with the City of San Luis Obispo for 42 for-ren t 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 Vice Mayor Ashbaugh, seconded by Council Member Carter, and on th e following vote : AYES : Council Members Carpenter, Carter and Smith, Vice Mayor Ashbaug h and Mayor Jan Mar x NOES : Non e ABSENT : None Resolution No . 10247 (2011 Series ) Page 4 The foregoing resolution was adopted this 1 St day of March, 2011 . ATTEST : (att.e.0-) Elaina Can o City Clerk APPROVED AS TO FORM : istine Dietric k City Attorney