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Home My WebLink About01-09-2018 Item 07 2018 Community Development Block Grant Funding Reservation Letter to the SLO Non-Profit Housing Corporation Meeting Date: 1/9/2018 FROM: Michael Codron, Community Development Director Prepared By: Cara Vereschagin, Planning Technician SUBJECT: 2018 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDING RESERVATION LETTER TO THE SAN LUIS OBISPO NON-PROFIT HOUSING CORPORATION. RECOMMENDATION As recommended by the Human Relations Commission (HRC), authorize the Community Development Director to execute the attached Reservation Letter, authorizing the City to reserve $288,847 in Community Development Block Grant (CDBG) funds awarded to the San Luis Obispo Nonprofit Housing Corporation for property acquisition for the Courtyard at the Meadows affordable housing project. DISCUSSION Community Development Block Grant Background The City’s annual CDBG review process provides Council and the public with an opportunity to provide early input in the grant award process and assist the City Council with direct input to prioritize community needs. One of the main purposes of the process is to maintain an open, inclusive, and fair grant application process. The HRC advises the Council on community needs and funding recommendations, which the Council adopted on November 7th. On December 6, 2017, the HRC held a public hearing to review the 2018 CDBG draft funding recommendations with respect to the Council’s adopted funding priorities. With a preliminary allocation of $444,380.00, the HRC recommends priority funding two projects in addition to the necessary administrative costs. In the case that the two projects are not approved by the County of San Luis Obispo, the HRC recommends any residual funding to be allocated to the remaining CDBG application received. Those recommendations were forwarded to the County to be included in the Draft 2018 Urban County of San Luis Obispo Community Participation Plan where a 30-day public review process is required. After the public review process, those recommendations will be forwarded to the City Council and a public hearing has been scheduled for March 6, 2018. San Luis Obispo Nonprofit Housing Corporation’s 2018 CDBG Application Of the two projects recommended for priority funding by the HRC, one recommendation is for the San Luis Obispo Nonprofit Housing Corporation (SLONP) for property acquisition for the Courtyard at the Meadows affordable housing project (“Project”) located in the Serra Meadows neighborhood (see Attachment B). The HRC recommends funding the full allocation of $288,847 to SLONP for building and construction of 36 new affordable housing units to very low and low-income residents. SLONP’s Project meets the second funding priority adopted by Council, to develop and enhance affordable housing for low and very low-income persons. Packet Pg 65 7 Courtyard at the Meadows Property Acquisition Costs San Luis Obispo Nonprofit Housing Corporation’s Courtyard at the Meadows Project is a partnership with the Housing Authority of San Luis Obispo (HASLO). While the Project is in early stages of gathering and finalizing funding; a wide range of funding sources will be needed, including: Low Income Housing Tax Credits, funding from local jurisdictions, and CDBG and HOME funding. An initial Project budget is outlined within SLONP’s CDBG application, provided in Attachment B. The first stage of the Project, property acquisition, is being funded through CDBG funds. HASLO is the current owner of the property and is working to complete all offsite improvements, which is estimated to cost $350,000. Once complete, SLONP will purchase the land from HASLO for $350,000, of which $288,847 has been requested in CDBG funds from the City of San Luis Obispo. The request of CDBG funds makes up just 3 percent of the total cost to construct this $12 million Project. Need for Reservation Letter For the Project to be financially viable, SLONP is applying for Low Income Housing Tax Credits, in addition to the wide range of public funding sources mentioned above. Prior to Low Income Housing Tax Credit application submittal all funding sources must be established and committed. A successful allocation of tax credits will result in millions of dollars committed by an outside investor for development of the Project. Since Low Income Housing Tax Credit applications are due February 28, 2018, one week before Council’s final review, the City is following a new expedited timeline set by the County to ensure any tax credit eligible projects that are granted CDBG funds can secure those commitments prior to the February 28th deadline. This process requires the Council to show reserved support and earmark those CDBG funds for this Project through a Reservation Letter, provided in Attachment A. Additionally, the project site is in an area that is classified as a Difficult to Develop Area (DDA), which means that the Project is eligible for Tax Credits at 130% of qualified basis. This means that more of the development costs are borne by the Tax Credit funding than in areas not designated a DDA. If the Project is not funded this year, it will lose this benefit; resulting in a 30% reduction in tax credit eligibility. This translates to a loss of $1 million, funding that would otherwise need to be raised from local sources, thus potentially delaying the development of this Project for years. SLONP has until March 16, 2018 to gain necessary funding commitments and apply for additional tax-exempt bonds and credits to be eligible to receive this 30% boost. Next Steps Once the Council has authorized the Reservation Letter to San Luis Nonprofit Housing Corporation, SLONP will be able to apply for Low Income Housing Tax Credits and other tax - exempt sources. On March 6th, the Council will hold a public hearing to review all 2018 CDBG funding recommendations. Once the final 2018 CDBG funding recommendations are adopted by the City Council in March, those recommendations will be forwarded to the County Board of Supervisors for inclusion in Packet Pg 66 7 the 2018 Urban County Action Plan in April, which includes funding allocations for all the participating jurisdictions. Although the CDBG fiscal year begins on July 1, 2018, funds for projects awarded by the City Council are not expected to be available until October. ENVIRONMENTAL REVIEW The authorization to submit a Reservation Letter to SLONP for 2018 CDBG funds is exempt from environmental review per Section 15061 (b)(3) General Rule of the CEQA Guidelines. In addition, the Project is an action to award funding, and is located within the Margarita Area Specific Plan (MASP). The City Council certified the Final Program EIR for the MASP on October 12, 2004. On April 15, 2014, the City Council adopted the Tiered Initial Study and Mitigated Negative Declaration (MND) which addressed the changes and revisions to Tract #2342 and #2353. Lot 108 of Tract #2353 was to be dedicated for affordable housing, thus it was determined through the entitlement process that Courtyard and the Meadows was consistent with the Mitigated Negative Declaration, and all mitigation measures adopted as part of the MASP EIR and Subsequent Tiered MND were applicable to the Project are carried forward and applied to the Project to effectively mitigate the impacts previously identified. FISCAL IMPACT Decisions made regarding CDBG funding determine how the limited pool of funds the City receives through the Urban County allocation process is spent. To the extent that projects are funded through CDBG, the burden on the City’s General Fund or Affordable Housing Fund to pay for those projects is reduced. While the Applicant has not yet officially submitted a letter for an Affordable Housing Fund award, the City anticipates a request for approximately $17,500 per unit, for a total of up to $630,000, to be submitted to Council for approval; the City’s Affordable Housing Fund has over $1.6 million currently available for new projects. As a result, projects that receive CDBG funding have a positive fiscal impact on the City if they otherwise would have been paid for out of other City funds. ALTERNATIVES 1. The Council may deny the Reservation Letter and wait until March 6th to approve any CDBG funds for SLONP’s Courtyard at the Meadows Project. Staff does not recommend this alternative since without a CDBG reserved commitment, SLONP will lose its Difficult to Develop Area status; resulting in a 30% reduction in tax credit basis in which the Project would otherwise be eligible. This action could potentially delay the Project for years. 2. The Council may continue consideration of authorizing the Reservation Letter. Staff does not recommend this action because the delay in time would not allow SLONP to include the City’s CDBG allocation in their Low-Income Housing Tax Credit Application. Packet Pg 67 7 Attachments: a - CDBG Reservation Letter SLONP b - CDBG - SLONP - Courtyard at the Meadows - 2018 Packet Pg 68 7 City of San Luis Obispo, Community Development, 919 Palm Street, San Luis Obispo, CA, 93401-3218, 805.781.7170, slocity.org January 10, 2018 Mr. Ken Litzinger San Luis Nonprofit Housing Corporation 487 Leff Street San Luis Obispo, CA 93401 RE: Reservation of City of San Luis Obispo CDBG Funds to Courtyard at the Meadows Dear Mr. Litzinger, On December 6, 2017, the City’s Human Relations Commission reviewed the 2018 City Community Development Block Grant (CDBG) applications and developed recommendations based on the approved funding priorities. The Commission recommended to reserve City CDBG funds in the amount of $288,847, to the Courtyard at the Meadows project (“Project”). The funds will be set aside until December 6, 2018 for the purpose of completing the financing for the Project. A firm commitment of CDBG funds by the City must be approved by the City Council, tentatively scheduled for March 6, 2018. Once officially approved by the Council, recommendations will be forwarded to the County of San Luis Obispo’s 2018 Urban County Community Participation Plan, to be approved by the Board of Supervisors. The following are required in order to receive a firm commitment: 1. Success obtaining a tax credit award; 2. All financing sources must be confirmed; 3. All planning and zoning approvals; 4. All planning and zoning approvals; Please contact Cara Vereschagin, Planning Technician, at (805) 781-7596 or cveresch@slocity.org should you have questions. Thank you for your assistance. Sincerely, Michael Codron Community Development Director City of San Luis Obispo Packet Pg 69 7 Packet Pg 70 7 COUNTY OF SAN LUIS OBISPO DEPARTMENT OF PLANNING & BUILDING HSG-1003 09/08/2017 Community Development Block Grant (CDBG) Program Year 2018 Application 976 OSOS STREET, ROOM 300 | SAN LUIS OBISPO, CA 93408 | (805) 781-5600 | TTY/TRS 7-1-1 PAGE 1 OF 21 www.sloplanning.org | actionplan@co.slo.ca.us The County of San Luis Obispo is pleased to announce the availability of funds for the Community Development Block Grant (CDBG) program. Applications MUST address one of the three national objectives set by the U.S. Department of Housing and Urban Development (HUD), or they will NOT be considered for CDBG funding (see the section on Qualifying Criteria for detailed information on the objectives). Furthermore, completed applications should provide the necessary exhibits, budgets, or requested information on targeted populations. Please email grant applications to ActionPlan@co.slo.ca.us by the application deadline of 5:00 P.M., Friday, October 20, 2017. Please label your email subject with the grant program name and the agency name (Example: CDBG – CAPSLO). *Note: Supplemental documents and information or answers which exceed the allotted space or character limit may be added as attachments. APPLICANT INFORMATION (1-1) Organization Name DUNS Number Contact Person/Title Phone/Fax Numbers Email Address City, State, Zip PROJECT SUMMARY (2-1) Project/Program Title Project/Program Address Jurisdiction/Area Served Targeted clientele Project type (select one): Public Service Public Facilities Economic Development Housing (2-2) Brief Project Description: (2-3) Total CDBG Funding Requested Total Cost to Complete Project Anticipated Start Date:Anticipated End Date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acket Pg 71 7 HSG-1003 09/08/2017 2018 CDBG APPLICATION 976 OSOS STREET, ROOM 300 | SAN LUIS OBISPO, CA 93408 | (805) 781-5600 | TTY/TRS 7-1-1 PAGE 2 OF 21 planning@co.slo.ca.us | www.sloplanning.org AGENCY DETAILS, CAPACITY, AND EXPERIENCE (25 points) (3-1) Type of Agency 501 (c)(3) For Profit Gov’t/Public Faith-based Other: Date of Incorporation Annual Operating Budget Number of Paid Staff Number of Volunteers (3-2) Agency Mission Statement: (3-3) Please describe your organization’s capacity to implement the proposed project/program. Who will be involved in the project/program? (In-house employees, contractors, other agency partners, etc.) 1ER] 8LMW TVSNIGX MW GSPPEFSVEXMSR FIX[IIR 7ER 0YMW 3FMWTS 2SRTVSJMX ,SYWMRK 'SVTSVEXMSR 70324 ERH XLI ,SYWMRK %YXLSVMX] SJ XLI 'MX] SJ 7ER 0YMW 3FMWTS ,%703 8LI WTIGMJMG TYVTSWI SJ 7ER 0YMW 3FMWTS 2SRTVSJMX ,SYWMRK 'SVTSVEXMSR MW XS IRKEKI MR EGUYMVMRK HIZIPSTMRK VILEFMPMXEXMRK S[RMRK ERH QEREKMRK EJJSVHEFPI LSYWMRK XLVSYKLSYX XLI 'SYRX] SJ 7ER 0YMW 3FMWTS 70324 [MPP FI XLI 1EREKMRK +IRIVEP 4EVXRIV MR XLI 0MQMXIH 4EVXRIVWLMT XLEX MW JSVQIH XS GSRWXVYGX ERH S[R XLI TVSNIGX 7MRGI 70324 LEW TVSZMHIH SZIV EJJSVHEFPI ETEVXQIRXW MRGPYHMRK QER] WYTTSVXMZI LSYWMRK YRMXW MR GSPPEFSVEXMSR [MXL GSQQYRMX] TEVXRIVW 8LI QMWWMSR SJ ,%703 MW XS TVSZMHI EJJSVHEFPI LSYWMRK XLVSYKLSYX 7ER 0YMW 3FMWTS 'SYRX] %W XLI PSGEP LSYWMRK EYXLSVMX] [I EVI WXI[EVHW SJ GIVXEMR VIWSYVGIW XLEX EVI EFPI XS YRMUYIP] WIVZI XLI TSSVIWX SJ XLI TSSV ,%703 LEW GSQQMXXIH 4VSNIGX &EWIH 7IGXMSR ZSYGLIVW XS XLMW TVSNIGX ERH [MPP TVSZMHI SXLIV PSRK XIVQ JMRERGMRK XS XLI TVSNIGX ,%703 [MPP TVSZMHI LSYWMRK QEREKIQIRX ERH MRGSQI GIVXMJMGEXMSRW 7ER 0YMW 3FMWTS 2SRTVSJMX ,SYWMRK 'SVTSVEXMSR 70324 LEW FIIR HIZIPSTMRK EJJSVHEFPI LSYWMRK WMRGI 7MRGI 70324 LEW TVSZMHIH SZIV EJJSVHEFPI ETEVXQIRXW MR XLI 'SYRX] SJ 7ER 0YMW 3FMWTS MRGPYHMRK QER] WYTTSVXMZI LSYWMRK YRMXW MR GSPPEFSVEXMSR [MXL GSQQYRMX] TEVXRIVW 6IGIRX TVSNIGXW MRGPYHI SR XLI ;]I E YRMX TVSNIGX TVMQEVMP] JSV LSQIPIWW :IXIVERW GSQTPIXIH MR -VSR ;SVOW E YRMX JEQMP] TVSNIGX GYVVIRXP] YRHIV GSRWXVYGXMSR ERH 703 E QENSV VILEFMPMXEXMSR SJ YRMXW SJ I\MWXMRK EJJSVHEFPI LSYWMRK 70324W IJJSVXW [MPP FI PIEH F] 1V 0MX^MRKIV [LS LEW [SVOIH MR XLI EJJSVHEFPI LSYWMRK MRHYWXV] WMRGI (YVMRK XLMW TIVMSH LI LEW EWWMWXIH 70324 MR XLI HIZIPSTQIRX ERH JMRERGMRK SJ WIZIVEP LYRHVIH EJJSVHEFPI VIRXEP ERH LSQIS[RIVWLMT LSYWMRK YRMXW JSV JEQMPMIW WTIGMEP RIIHW KVSYTW ERH WIRMSVW ,I MW LMKLP]I\TIVMIRGIH [MXL XLI 0-,8' 4VSKVEQ ,SQI '(&+ 8E\ )\IQTX &SRH JMRERGMRK *IHIVEP ,SQI 0SER &ERO %,4 ERH GSRZIRXMSREP JMRERGMRK Packet Pg 72 7 HSG-1003 09/08/2017 2018 CDBG APPLICATION 976 OSOS STREET, ROOM 300 | SAN LUIS OBISPO, CA 93408 | (805) 781-5600 | TTY/TRS 7-1-1 PAGE 3 OF 21 planning@co.slo.ca.us | www.sloplanning.org (3-4) Briefly describe your agency’s record keeping system with relevance to the proposed project/program: (3-5) Briefly describe your agency’s auditing requirements, including those for the proposed project/program, and attach a copy of your most recent audit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acket Pg 73 7 HSG-1003 09/08/2017 2018 CDBG APPLICATION 976 OSOS STREET, ROOM 300 | SAN LUIS OBISPO, CA 93408 | (805) 781-5600 | TTY/TRS 7-1-1 PAGE 4 OF 21 planning@co.slo.ca.us | www.sloplanning.org (3-6) Will the services offered by your organization increase or expand as a result of CDBG assistance? If YES, please answer the following two questions. Yes No What new programs or services will be provided? Describe how existing programs or services will be expanded and what percentage of an increase is expected? (3-7) If your program serves homeless households, please describe how your program coordinates with other homeless service providers to connect homeless individuals and families to resources. GPMIRXW [MPP FI TVSZMHIH [MXL RI[ TIVQERIRX EJJSVHEFPI VIRXEP LSYWMRK8LI TVSNIGX LEW E GSQQYRMX] VSSQ [LMGL [MPP FI YWIH XS SJJIV ZEVMSYW IRVMGLMRK TVSKVEQW ERH WIVZMGIW 8LMW MW RSX E WIVZMGIW TVSNIGX -X MW PERH EGUYMWMXMSR MR WYTTSVX SJ E RI[ GSRWXVYGXMSR EJJSVHEFPI VIRXEP TVSNIGX 2% Packet Pg 74 7 HSG-1003 09/08/2017 2018 CDBG APPLICATION 976 OSOS STREET, ROOM 300 | SAN LUIS OBISPO, CA 93408 | (805) 781-5600 | TTY/TRS 7-1-1 PAGE 5 OF 21 planning@co.slo.ca.us | www.sloplanning.org QUALIFYING CRITERIA (10 points) The Community Development Block Grant program was established by Congress in 1974 with passage of the Housing and Community Development Act and is administered by the United States Department of Housing and Urban Development (HUD). This program provides funds to municipalities and other units of government around the country to develop viable urban communities. This is accomplished by providing affordable, decent housing, a suitable living environment and by expanding economic opportunities principally for low and moderate income persons. Although local units of government develop their own programs and funding priorities, all activities must be consistent with one or more of the following HUD national objectives: Principally benefits low- and moderate-income persons Prevents or eliminates slum or blight Addresses an urgent need or problem in the community (e.g., natural disaster) As an entitlement Urban County under the CDBG program, the County of San Luis Obispo receives annual funding allocations from the federal government to fund activities to address these national objectives. As a funding recipient, San Luis Obispo County is required to submit an Annual Action Plan that describes how the Urban County will utilize federal funds to address the national objectives in a manner that will produce the greatest measurable impact on the Urban County communities. The lead agency responsible for submission of this Plan to HUD is the Planning and Building Department of the County of San Luis Obispo. (4-1) Please identify the appropriate CDBG objective that applies to the proposed project/program by checking the box next to A, B, or C. In addition, please provide a corresponding explanation of how the proposed activity meets the national objective. A.Objective One – Low/Moderate Income (check one): Note: To meet this national objective, the proposed activity must benefit a specific clientele or residents in a particular area of the County or participating city, of which at least 51 percent of who are low- and moderate-income persons. Select one: Area Benefit – The project serves only a limited geographic area which is proven by 2010 Census data or survey to be a predominately (51% or more) low/moderate-income area. Applicants choosing this category must be able to prove their project/activity primarily benefits low/moderate-income households. Clientele – The project benefits a specific group of people, at least 51% of whom are low/moderate-income persons. Note: Income verification for clients must be provided for this category; however, the following groups are presumed to be low/moderate-income: abused Packet Pg 75 7 HSG-1003 09/08/2017 2018 CDBG APPLICATION 976 OSOS STREET, ROOM 300 | SAN LUIS OBISPO, CA 93408 | (805) 781-5600 | TTY/TRS 7-1-1 PAGE 6 OF 21 planning@co.slo.ca.us | www.sloplanning.org children; elderly persons; battered spouses; homeless persons; illiterate adults; adults meeting census definition of severely disabled; persons living with AIDS; and migrant farm workers. Housing – The project adds or improves permanent residential structures that will be/are occupied by low/moderate-income households upon completion. Jobs – The project creates or retains permanents jobs, at least 51% of which are taken by low/moderate-income persons or considered to be available to low/moderate-income persons. Assistance to Microenterprises – The project provides technical assistance to microenterprises owned by low/moderate-income persons. B.Objective Two – Slums or Blight Assists in the prevention or elimination of slums or blight. Note: To meet this national objective, the proposed activity must be within a designated slum or blighted area and must be designed to address one or more conditions that contributed to the deterioration of the area. Select one: Addressing Slums or Blight on an Area Basis Addressing Slums or Blight on a Spot Basis - This project will prevent or eliminate specific conditions of blight or physical decay. Activities are limited to clearance, historic preservation, rehabilitation of buildings, but only to the extent necessary to eliminate conditions detrimental to public health and safety. C.Objective Three – Urgent Need Meets community development needs having a particular urgency where existing conditions pose a serious and immediate threat to the health or welfare of the community, and no other funding sources are available, i.e., a major catastrophe such as a flood or earthquake. Note: To meet this national objective, the proposed activity must deal with major catastrophes or emergencies such as floods or earthquakes. Please explain how the proposed activity meets the selected National Objective: %PP GPMIRXW [MPP FI EX SV FIPS[ PS[ SV ZIV] PS[ MRGSQI YTSR IRXV] XS XLMW TIVQERIRX LSYWMRK Packet Pg 76 7 HSG-1003 09/08/2017 2018 CDBG APPLICATION 976 OSOS STREET, ROOM 300 | SAN LUIS OBISPO, CA 93408 | (805) 781-5600 | TTY/TRS 7-1-1 PAGE 7 OF 21 planning@co.slo.ca.us | www.sloplanning.org (4-2) Which of the 2015-2019 Consolidated Plan goal(s) does your project/program plan to address? Check all that apply. Create housing opportunities for residents Preserve and maintain existing affordable housing Reduce and end homelessness Create a suitable living environment through public services Stabilize and revitalize diverse neighborhoods (public facility improvements) Improve educational and job readiness (4-3) Check any of the following eligible activity categories that apply to the proposed project or program:(Refer to CDBG regulations and https://www.hudexchange.info/resources/documents/Basically-CDBG-Chapter-2-Activity.pdf ) Acquisition of real property* Disposition of real property Public facilities and improvements (may include acquisition, construction, reconstruction, rehabilitation or installation)*† Privately owned utilities Public services Relocation of individuals, families, businesses, non-profit organizations, and/or farms Removal of architectural barriers Housing rehabilitation† Homeownership assistance Technical assistance to businesses/micro-enterprise development Administrative technical assistance and planning studies (specified) PROJECT DETAILS/DESCRIPTION (25 points) (5-1) Targeted Clientele: Individuals or households? Identify the projected target population your proposed activity will serve. (Include age, race, residency, handicap status, income level or other unit characteristics or subgroup information) * See relocation provisions in Exhibit A † See lead-based paint provisions in Exhibit A 'SYVX]EVH EX XLI 1IEHS[W [MPP TVSZMHI RI[ EJJSVHEFPI VIRXEP ETEVXQIRXW JSV PS[ MRGSQI LSYWILSPHW EX SV FIPS[ %VIE 1IHMER -RGSQI ERH ZIV] PS[ MRGSQI LSYWILSPHW EX SV FIPS[ %VIE 1IHMER -RGSQI Packet Pg 77 7 HSG-1003 09/08/2017 2018 CDBG APPLICATION 976 OSOS STREET, ROOM 300 | SAN LUIS OBISPO, CA 93408 | (805) 781-5600 | TTY/TRS 7-1-1 PAGE 8 OF 21 planning@co.slo.ca.us | www.sloplanning.org (5-2) If the project or program is designed specifically to provide benefit to low- and moderate-income persons, please estimate the number of unduplicated persons (or households) to benefit from the project, and break that estimate down by income group. Note: Unduplicated means the number who are served, i.e., the grant will allow 25 children to participate in preschool – not 25 children x 5 days x 52 weeks = 6,500. (Check box if project serves households or individual persons) Number Households Persons TOTAL Number of Persons or Households (regardless of income): Of the total number of persons or households entered above, how many will be low-income: (earning 51% - 80% or less of the County median-income) Of the total number of persons or households entered above, how many will be very low-income: (earning 50% or less of the County median-income) (5-3) Please describe the proposed project or program in detail.Make a case for why your project should be funded. Describe the need and the degree of urgency for the proposed project or program. What would the consequences be if the proposed project or program is not funded in the next year?Please attach a timeline of the project/program milestones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acket Pg 78 7 HSG-1003 09/08/2017 2018 CDBG APPLICATION 976 OSOS STREET, ROOM 300 | SAN LUIS OBISPO, CA 93408 | (805) 781-5600 | TTY/TRS 7-1-1 PAGE 9 OF 21 planning@co.slo.ca.us | www.sloplanning.org (5-4) Does the project require the issuance of a permit? (State, local, or federal) Yes No If YES, please respond to the following: Have the necessary permits been issued? Please provide proof of issuance: If permits are required but not yet obtained, when will the permits be issued? Identify the permits necessary: 8LI '(&+ EGXMZMX] PERH EGUYMWMXMSR HSIW RSX VIUYMVI E TIVQMX ,S[IZIV XLI TVSNIGX LEW VIGIMZIH EPP SJ MXW IRXMXPIQIRXW ;I I\TIGX XS WYFQMX JSV FYMPHMRK TIVQMX MR 1EVGL SJ See attached exhibit. ;I SFXEMRIH %6' ETTVSZEP SR JSV XLI HIZIPSTQIRX TPER ;I I\TIGX XS ETTP] JSV FYMPHMRK TIVQMX MR 1EVGL ERH SFXEMR TIVQMX MWWYERGI F] 3GXSFIV SJ ;I SFXEMRIH %6' ETTVSZEP SR JSV XLI HIZIPSTQIRX TPER ;I I\TIGX XS ETTP] JSV FYMPHMRK TIVQMX MR 1EVGL ERH SFXEMR TIVQMX MWWYERGI F] 3GXSFIV SJ Packet Pg 79 7 HSG-1003 09/08/2017 2018 CDBG APPLICATION 976 OSOS STREET, ROOM 300 | SAN LUIS OBISPO, CA 93408 | (805) 781-5600 | TTY/TRS 7-1-1 PAGE 10 OF 21 planning@co.slo.ca.us | www.sloplanning.org BENEFICIARY DATA (15 points) Organizations will be asked to provide detailed data regarding race, ethnicity, gender, income, etc. If they cannot provide data, they may not be eligible for funding. (6-1) How do you document and maintain income status of each client in compliance with HUD regulations?(Example: very low ( AMI), low ( AMI) and moderate-income AMI)) Area Median Income (AMI). Please provide a sample of your intake process as an attachment if possible. (6-2) How do you collect demographic data on the beneficiaries of the proposed project or program? (Example: racial/ethnic characteristics) Please provide a sample of your intake process as an attachment if possible. )ZIV] GPMIRX [MPP FI GIVXMJMIH ,%703 [MPP TIVJSVQ EPP MRGSQI GIVXMJMGEXMSRW ,%703 LEW GIVXMJMIH GSQTPMERGI WTIGMEPMWXW SR WXEJJ [MXL ]IEVW SJ I\TIVMIRGI %X XLI LSYWMRK ETTPMGEXMSRMRXEOI WXEKI MRGSQI ERH EWWIX MRJSVQEXMSR [MPP FI GSPPIGXIH JVSQ IEGL GPMIRX [MXL FEGO YT HSGYQIRXEXMSR *MPIW [MPP FI QEMRXEMRIH ERH EZEMPEFPI JSV GSYRX] MRWTIGXMSR ,%703 GYVVIRXP] TIVJSVQW MRGSQI ERH GSQTPMERGI GIVXMJMGEXMSRW JSV GPMIRXW ERRYEPP] -RJSVQEXMSR MW GSPPIGXIH EX XLI ETTPMGEXMSR WXEKI ,S[IZIV MX MW QEHI GPIEV XLEX HIQSKVETLMG MRJSVQEXMSR WYGL EW VEGI ERH IXLRMGMX] EVI JSV ,9( TYVTSWIW SRP] ERH LEZI RSX FIEVMRK SR EGGITXERGI MRXS XLI LSYWMRK Packet Pg 80 7 HSG-1003 09/08/2017 2018 CDBG APPLICATION 976 OSOS STREET, ROOM 300 | SAN LUIS OBISPO, CA 93408 | (805) 781-5600 | TTY/TRS 7-1-1 PAGE 11 OF 21 planning@co.slo.ca.us | www.sloplanning.org FINANCIAL INFORMATION (20 points) For CDBG applications to the County of San Luis Obispo involving acquisition, construction, or rehabilitation projects, the County will require additional information on financial source and use of funds and other budget details prior to the draft Action Plan funding recommendations. (7-1) How do you plan to fund the operation and maintenance costs (if any) associated with this project? Are these funds available now? If not, when will they be available? Will the project be required to pay a prevailing wage? (7-2) Do you have any CDBG funds remaining from prior Fiscal Year allocations? Yes No If YES, answer the following: What fiscal year did you receive funding? What project did you receive funding for? How much is remaining? 8LI VIRXW GSPPIGXIH [MPP JYRH EPP STIVEXMRK GSWXW MRGPYHMRK VITEMVW QEMRXIRERGI ERH QSVXKEKI TE]QIRXW -X MW RSX ERXMGMTEXIH XLEX XLI TVSNIGX [MPP FI VIUYMVIH XS TE] TVIZEMPMRK [EKI &MWLST 7XVIIX 7XYHMSW 232,000. Funds will be spent March 2018 per TCAC schedule Packet Pg 81 7 HSG-1003 09/08/2017 2018 CDBG APPLICATION 976 OSOS STREET, ROOM 300 | SAN LUIS OBISPO, CA 93408 | (805) 781-5600 | TTY/TRS 7-1-1 PAGE 12 OF 21 planning@co.slo.ca.us | www.sloplanning.org (7-3) Itemize all sources of funding expected to be available for each category, if applicable (please include commitment letters if available): CDBG Funds Requested Other Federal Fund(s) State Source(s) Local Source(s) Applicants Matching Funds Other: (7-4) Will CDBG funds be used to match/leverage other funds from other sources? List below funding sources and amounts and identify award dates of these sources. Source(s):Amount: TOTAL (7-5) Identify all jurisdictions you are applying to for CDBG funds. Indicate the amount applied for at each jurisdiction, and the total amount requested. Note: Any project/program being recommended less than $8,000 total will not be funded per the Cooperation Agreement. City of Arroyo Grande City of Atascadero City of Morro Bay City of Paso Robles City of Pismo Beach City of San Luis Obispo County of San Luis Obispo TOTAL ,31) 0S[-RGSQI ,SYWMRK 8E\ 'VIHMXW Packet Pg 82 7 Packet Pg 83 7 Packet Pg 84 7 Packet Pg 85 7 Packet Pg 86 7 Packet Pg 87 7 HSG-1003 09/08/2017 2018 CDBG APPLICATION 976 OSOS STREET, ROOM 300 | SAN LUIS OBISPO, CA 93408 | (805) 781-5600 | TTY/TRS 7-1-1 PAGE 18 OF 21 planning@co.slo.ca.us | www.sloplanning.org Exhibit A – Housing Rehab and Construction Projects Will the affordable housing project be applying for tax credits? Yes No If yes, what round? March June If March was selected and if your project is identified to receive funds, will your project require a Reservation Letter for the state tax creditors Yes No Has NEPA been completed on this project? Yes No How old is the property/building in terms of years? Has a property inspection report been completed if undertaking rehab? Yes No For buildings/structures constructed prior to 1978: Have asbestos and lead hazard risk assessment reports been issued for the facility? Yes No Has the facility been abated for asbestos and lead paint? Yes No Will children occupy the facility? Yes No If yes, indicate the age range of children: Has a Phase I or Phase II environmental assessment been conducted for the property? If so, please provide a copy. Yes No List and describe any known hazards (e.g. asbestos, storage tanks – underground, aboveground): 2% 2I[ GSRWXVYGXMSR 2% Packet Pg 88 7 HSG-1003 09/08/2017 2018 CDBG APPLICATION 976 OSOS STREET, ROOM 300 | SAN LUIS OBISPO, CA 93408 | (805) 781-5600 | TTY/TRS 7-1-1 PAGE 19 OF 21 planning@co.slo.ca.us | www.sloplanning.org Has the property been designated or been determined to be potentially eligible for designation as a local, state, or national historic site? If Yes, describe below: Yes No Is the building/structure located on a Historic Site? Yes No Is the building/structure located in a Historic District? Yes No Is the building/structure in a Flood Zone? Yes No Is the building/structure in a Flood Plain? Yes No Does your agency have flood insurance? Yes No Will there be demolition required? Yes No The questions below ask about zoning. If zoning information is not known, contact the local municipality to request assistance. What is the project structure type? Residential Commercial Public facility Public right-of-way What is the current zoning of the project site? Is the project site zoned correctly for the proposed activity? Yes No If no, provide below an explanation of efforts and a timetable to change the zoning or obtain a variance: 674 Packet Pg 89 7 HSG-1003 09/08/2017 2018 CDBG APPLICATION 976 OSOS STREET, ROOM 300 | SAN LUIS OBISPO, CA 93408 | (805) 781-5600 | TTY/TRS 7-1-1 PAGE 20 OF 21 planning@co.slo.ca.us | www.sloplanning.org B.15. Does the project require temporary/permanent relocation of occupants?Yes No If yes, this project is subject to the Uniform Relocation Assistance and Real Property Acquisition Policies Act (URA). Describe the relocation plans, including timetable and notifications to occupants. List how many of the occupied units are: (a) owner-occupied; (b) renter-occupied; or (c) businesses. Indicate whether temporary and/or permanent displacement is required. [NOTE: This will be for site information only. Relocation activities will not be eligible for funding with Fiscal Year 2018 CDBG funds.] Packet Pg 90 7 HSG-1003 09/08/2017 2018 CDBG APPLICATION 976 OSOS STREET, ROOM 300 | SAN LUIS OBISPO, CA 93408 | (805) 781-5600 | TTY/TRS 7-1-1 PAGE 21 OF 21 planning@co.slo.ca.us | www.sloplanning.org Federal regulations require that all facilities and/or services assisted with CDBG funds be accessible to the disabled. Accessibility includes such things as: entrance ramps, parking with universal logo signage, grab bars around commodes and showers, top of toilet seats that meet required height from the floor, drain lines under lavatory sink either wrapped or insulated, space for wheelchair maneuverability, accessible water fountains, access between floors (elevators, ramps, lifts), and other improvements needed to assure full access to funded facilities/programs, including serving the blind and deaf. Describe below whether the project currently meets ADA standards for accessibility by the disabled. If not, describe the accessibility problems and methods to be utilized to address the problems, including funding and timetable. NOTE: The project site must first be fully ADA-compliant before other construction activities can be implemented with CDBG funding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acket Pg 91 7 5-4 Permits Necessary Architectural Review Commission Approval Courtyard at the Meadows Packet Pg 92 7 Community Development 919 Palm Street . San Luis Obispo . CA 93401-3218 805 .781 .7170 slocity org September 29, 2016 HAS LO PO Box 1289 San Luis Obispo, CA 93406 SUBJECT: ARCH-3370-2016 (3175 Violet Street) Gentlemen: Review of a new affordable housing project within the Serra Meadows development Lot 108 The Architectural Review Commission, at its meeting of September 12, 2016, approved your request, based on the findings and subject to the conditions, as noted in the attached resolution. The Architectural Review Commission's approval expires after three years if construction has not started, unless the Commission designated a different time period. On request, the Community Development Director may grant a single, one-year extension. If you have any questions, please contact Kyle Bell at (805) 781-7524. Sincerely, T~:/ Principal Planner Community Development Attachment: Resolution No. ARC-1018-16 cc: San Luis Obispo County Assessor's Office Packet Pg 93 7 RESOLUTION NO. ARC-1018-16 A RESOLUTION OF THE SAN LUIS OBISPO ARCHITECTURAL REVIEW COMMISSION APPROVING A NEW AFFORDABLE HOUSING PROJECT THAT CONSISTS OF FOUR NEW BUILDINGS THAT INCLUDE 36 RESIDENTIAL UNITS AND A REQUEST TO REDUCE THE STREET YARD TO 10 FEET FOR A PORTION OF THE BUILDING ALONG VIOLET STREET, WHERE 15 FEET IS NORMALLY REQUIRED, IN ACCORDANCE WITH THE MITIGATED NEGATIVE DECLARATION ER-120-13 CITY COUNCIL RESOLUTION NO. 10512 (2014 SERIES), AS REPRESENTED IN THE STAFF REPORT AND ATTACHMENTS DATED SEPTEMBER 12, 2016 (3175 VIOLET STREET ARCH-3370-2016) WHEREAS, the City Council of the City of San Luis Obispo conducted a public hearing in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California, on April 15, 2014, approving the proposed revised map and modified conditions of Vesting Tentative Tract Map 2353 adopted through City Council Resolution No. 10512 (2014 Series) originally approved through City Council Resolution No. 9777 (2006 Series) pursuant to a proceeding instituted under MOD/TR/ER 120-13, Mangano Homes Inc., applicant; and WHEREAS, the Architectural Review Commission of the City of San Luis Obispo conducted a public hearing in the Council Hearing Room of City Hall, 990 Palm Street, San Luis Obispo, California, on March 21, 2016, for the purpose of considering a conceptual review of the project, pursuant to a proceeding instituted under ARCH-2663-2016, SLO Non-Profit Housing Corp., applicant; and · WHEREAS, the Airport Land Use Commission of the County of San Luis Obispo conducted a public hearing in the Board of Supervisors Chambers of the County Government Center, 1055 Monterey Street, Room Dl 70, San Luis Obispo, California, on April 20, 2016, which determined that the proposed density bonus is consistent with the Airport Land Use Plan, pursuant to a proceeding instituted under, HASLO Project, SLO Non-Profit Housing Corp., applicant; and WHEREAS, the Architectural Review Commission of the City of San Luis Obispo conducted a public hearing in the Council Hearing Room of City Hall, 990 Palm Street, San Luis Obispo, California, on September 12, 2016, pursuant to a proceeding instituted under ARCH- 3370-2016, SLO Non-Profit Housing Corp., applicant; and WHEREAS, the Architectural Review Commission of the City of San Luis Obispo has duly considered all evidence, including the testimony of the applicant, interested parties, and evaluation and recommendations by staff, presented at said hearing. WHEREAS, notices of said public hearing were made at the time and in the manner required by law; and NOW, THEREFORE, BE IT RESOLVED by the Architectural Review Commission of Packet Pg 94 7 Resolution No. ARC-I 018-16 3175 Violet Street (ARCH-3370-2016) Page 2 the City of San Luis Obispo as follows: SECTION 1. Findings. The Architectural Review Commission hereby grants final approval to the project (ARCH-3370-2016), based on the following findings: 1. The project will not be detrimental to the health, safety, and welfare of persons living or working at the site or in the vicinity because the project will be compatible with site constraints and the scale and character of the neighborhood. 2. The project is consistent with the Housing Element because the project provides a variety of residential types, sizes, and styles of dwellings (HE 5.4). The project supports Housing Element Policies related to inclusion and expansion of affordable housing units within the City (HE 1.1, 1.2, 2.1, 2.2, 7.1, 7.2, and 8.1) 3. The project is consistent with the Conservation and Open Space Element policy 4.4.3 because the project promotes higher-density, compact housing to achieve more efficient use of public facilities and services and to improve the City's jobs/housing balance. 4. The project is consistent with the Margarita Area Specific Plan because the project site is one of two sites dedicated to provide a minimum of 40 affordable dwellings within the housing tracts of the western enclave of the Margarita Area (Tract 2343, 2353, & 2428). 5. The design of the project is consistent with the Community Design standards of the Margarita Area Specific Plan and has been designed in accordance with the Spanish architectural style which is an appropriate architectural style for all land use types within the Margarita Area. The project design incorporates articulation, massing, and a mix of color/finish materials that are compatible with the neighborhood and complementary to other development within the immediate vicinity. Density Bonus 6. The proposed project will provide quality affordable housing consistent with the intent of Chapter 17. 90 of the Municipal Code, and the requested density bonus and reduction to site development standards is necessary to facilitate the production of affordable housing units. 7. The Margarita Area Specific Plan limits the locations of density bonuses within Residential Development Areas due to the need of consistency with the County Airport Land Use Plan, density bonuses are only available in the areas identified in Figure 5 of the Plan. On April 20, 2016 the Airport Land Use Commission held a pre-application review and unanimously determined that the proposed density bonus for the project site was consistent with the Airport Land Use Plan. The proposed density bonus of 35 percent is consistent with the General Plan Land Use Element 2.4.2 for providing density bonuses on a receiving site within an expansion area. Building Height, Mass and Scale 8. The proposed height, mass and scale of the project will not negatively alter the overall character of the neighborhood or the streets appearance because the site is physically suited Packet Pg 95 7 Resolution No. ARC-I 018-16 3175 Violet Street (ARCH-3370-2016) Page 3 for the proposed type of development allowed in the R-3-SP zone. The project is consistent with the Community Design Guidelines because the development is designed in a manner that does not deprive reasonable solar access to adjacent properties by providing greater setbacks than what is required for majority of the buildings mass along the street frontage that also incorporates vertical and horizontal wall plan offsets that provide high-quality and aesthetically pleasing architectural design. 9. The proposed height, mass and scale of the project is necessary to provide additional dwelling units to be dedicated affordable for "low & very low" income households. Setback Exception 10. The setback reduction will not constitute a grant of special privilege of an entitlement inconsistent with the limitations upon other properties in the vicinity as the setback reduction is consistent with the · development pattern of adjacent properties with the similar zoning which allow 10-foot street yard setbacks for front porches. 11. Granting of the five-foot setback reduction for Building 3 will not alter the overall character of the neighborhood or the streets appearance because the proposal is minor and the setback reduction will allow reasonable development of the project site. 12. The project will not deprive adjacent properties ofreasonable solar access because the portion of the structure requiring a setback reduction will cast no greater shadow as the highest point of the structure is setback from the property line of the closest adjacent structure greater than what is required by the setback/height requirements of the Margarita Area Specific Plan. No useful purpose would be realized by requiring full setbacks because no significant fire protection, emergency access, privacy or security impacts are anticipated. SECTION 2. Environmental Review. On October 12, 2004, the City Council certified the Final Program EIR for the Margarita Area Specific Plan through Council Resolution 9615 (2004 Series). On April 15, 2014 the City Council adopted the Tiered Initial Study and Mitigated Negative Declaration (ER-120-13) which addressed the changes and revisions to Tract #2342 & #2353. The City Council Resolution No. 10512 (2014 Series) incorporates all revised mitigation measures and supersedes in their entirety the previously approved mitigation measures approved by Council Resolution No. 9777 (2006 Series). The City Council Resolution No. 10512 includes Condition #48 which requires that Lot 108 of Tract #2353 is to be dedicated for affordable housing to provide for the required affordable units for both Tract #2342 & #2353. The project is consistent with the adopted Mitigated Negative Declaration, all mitigation measures adopted as part of the MASP EIR and Subsequent Tiered MND that are applicable to the proposed project are carried forward and applied to the proposed project to effectively mitigate the impacts that were previously identified. SECTION 3. Action. The Architectural Review Commission (ARC) hereby grants final approval to the project with incorporation of the following conditions: Planning 1. The applicant shall defend, indemnify and hold harmless the City and/or its agents, officers Packet Pg 96 7 Resolution No. ARC-1018-16 3175 Violet Street (ARCH-3370-2016) Page 4 and employees from any claim, action or proceeding against the City and/or its agents, officers or employees to attack, set aside, void or annul, the approval by the City of this project, and all actions relating thereto, including but not limited to environmental review ("Indemnified Claims"). The City shall promptly notify the applicant of any Indemnified Claim upon being presented with the Indemnified Claim and the City shall fully cooperate in the defense against an Indemnified Claim. 2. Final project design and construction drawings submitted for a building permit shall be in substantial compliance with the project plans approved by the ARC. A separate, full-size sheet shall be included in working drawings submitted for a building permit that lists all conditions and code requirements of project approval listed as sheet number 2. Reference shall be made in the margin of listed items as to where in plans requirements are addressed. Any change to approved design, colors, materials, landscaping, or other conditions of approval must be approved by the Director or Architectural Review Commission, as deemed appropriate. 3. The project shall comply with all mitigation measures and conditions, applicable to the project site, established under City Council Resolution No. 10512 (2014 Series). 4. In order to qualify for the parking requirements established in the Zoning Regulations Section l 7.16.060K (Low-Income Housing Parking) the proposed residential units are limited to "low & very low" income households. To provide housing for "moderate" income households the applicant shall demonstrate compliance with the parking requirements provided in Chapter 17.90 of the Zoning Regulations or request an Alternative Incentive for parking requirements. 5. Continued affordability provisions shall be developed to assure units remain affordable to residents that earn low and very low incomes. The continuance of affordability shall be subject to review and approval by the Community Development Director prior to issuance of building permits. 6. Prior to issuance of a building permit, the applicant shall provide the project's Covenants, Conditions & Restrictions (CC & R's) to demonstrate compliance with notification requirements related to noise associated with the San Luis Obispo Airport, as discussed by the Airport Land Use Commission on April 20, 2016, to the satisfaction of the Community Development Director. 7. The applicant shall submit building plans that include a trash enclosure design that is finished with high quality materials to match the architecture of the project buildings; design of the enclosure is subject to the Community Design Guidelines and to the satisfaction of the Community Development Director. 8. The project shall be constructed to meet the maximum outdoor and indoor noise exposure levels of Noise Element Table 1 (60 dB for outdoor activity areas and 45 dB for indoor spaces). 9. Plans submitted for a building permit shall call out the colors and materials of all proposed Packet Pg 97 7 Resolution No. ARC-1018-16 3175 Violet Street (ARCH-3370-2016) Page 5 building surfaces and other improvements. Colors and materials shall be as shown on the color elevation submitted with Architectural Review application. The applicant is encouraged to further explore the opportunity to include more articulation on the surfaces of the elevations through additional tilework, accent pieces, accent colors, decorative iron, trellises and "Juliet balconies" where neighborhood privacy is not an issue, to the approval of the Community Development Director. 10. The proposed stucco walls shall have a smooth, hand-troweled or sand finish appearance, to the satisfaction of the Community Development Director. This shall be noted on plans submitted for a building permit. 11. Plans submitted for a building permit shall include window details indicating the type of materials for the window frames and mullions, their dimensions, and colors. Plans shall include the materials and dimensions of all lintels, sills, surrounds recesses and other related window features. 12. Plans submitted for construction permits will include elevation and detail drawings of all walls and fences. Fences, walls, and hedges will comply with the development standards described in the Zoning Regulations (§17.16.050-Fences, Walls, and Hedges). 13. The locations of all lighting, including bollard style landscaping or path lighting, shall be included in plans submitted for a building permit. All wall-mounted lighting fixtures shall be clearly called out on building elevations included as part of working drawings. All wall- mounted lighting shall complement building architecture. The lighting schedule for the building shall include a graphic representation of the proposed lighting fixtures and cut-sheets on the submitted building plans. The selected fixture(s) shall be shielded to insure that light is directed downward consistent with the requirements of the City's Night Sky Preservation standards contained in Chapter 17.23 of the Zoning Regulations. 14. Mechanical and electrical equipment shall be located internally to the building. With submittal of working drawings, the applicant shall include sectional views of the building, which clearly show the sizes of any proposed condensers and other mechanical equipment. If any condensers or other mechanical equipment is to be placed on the roof, plans submitted for a building permit shall confirm that parapets and other roof features will adequately screen them. A line-of-sight diagram shall be included to confirm that proposed screening will be adequate. This condition applies to initial construction and later improvements. 15. A final landscaping plan, including irrigation details and plans, shall be submitted to the Community Development Department along with working drawings. The legend for the landscaping plan shall include the sizes and species of all groundcovers, shrubs, and trees with corresponding symbols for each plant material showing their specific locations on plans. The applicant shall meet with the City Arborist to identify and implement best methods for successful future screening of the sloped planting areas, including but not limited to, tree size, tree species, soil amendments and irrigation, with the performance goal of fast maturity of screening on the steeper slope, to the satisfaction of the Public Works Director and the Community Development Director. I ' I Packet Pg 98 7 Resolution No. ARC-I 018-16 3175 Violet Street (ARCH-3370-2016) Page 6 16. The location of any required backflow preventer and double-check assembly shall be shown on all site plans submitted for a building permit, including the landscaping plan. Construction plans shall also include a scaled diagram of the equipment proposed. Where possible, as determined by the Utilities Director, equipment shall be located inside the building within 20 feet of the front property line. Where this is not possible, as determined by the Utilities Director, the back flow preventer and double-check assembly shall be located in the street yard and screened using a combination of paint color, landscaping and, if deemed appropriate by the Community Development Director, a low wall. The size and configuration of such equipment shall be subject to review and approval by the Utilities and Community Development Directors. Engineering Division -Public Works/Community Development Department 17. Projects involving the construction of new structures requires that complete frontage improvements be installed or that existing improvements be upgraded per city standard. MC 12.16.050 18. The building plan submittal shall include the dimensions and bearings for all property lines for reference. 19. The building plan submittal shall show the existing driveway approach to be abandoned and replaced with curb and gutter per City Engineering Standards. 20. The new driveway approaches shall be designed to comply with current standards . The current City and ADA standard requires a 4' accessible sidewalk extension behind the ramp. 21. The building plan submittal shall show and dimension the 60' right-of-way width for both Violet St. and Plum St. on the site plan. Show the 30' dimension of the centerline to property line, 18' centerline to face of curb, and 12' from face of curb to property line dimensions for reference. 22. The building plan submittal shall show the development of the driveway and parking areas to comply with the Parking and Driveway Standards for dimension , maneuverability, slopes, drainage, and materials. Alternate paving materials are recommended for water quantity and/or quality control purposes and in the area of existing or proposed trees and where the driveway or parking area may occur within the drip line of any tree. Alternate paving material shall be approved to the satisfaction of the Planning Division. 23. Provisions for trash, recycle, and green waste containment, screening, and collection shall be approved to the satisfaction of the City and San Luis Obispo Garbage Company. The respective refuse storage area and on-site conveyance shall consider convenience, aesthetics, safety, and functionality. The design of the trash enclosure shall show compliance with Engineering Standards 101 O.B for drainage requirements. 24. The building plan submittal shall include a complete site utility plan. All existing and proposed utilities along with utility company meters shall be shown. Existing underground \ ' Packet Pg 99 7 Resolution No . ARC-I 018-16 3175 Violet Street (ARCH-3370-2016) Page 7 and overhead services shall be shown along with any proposed alterations or upgrades. Services to the new structures shall be underground. All work in the public right-of-way shall be shown or noted. 25. The building plan submittal shall verify the location of all existing utilities stubbed into the site in accordance with the approved Tract 2353 Improvement Plans . Any existing utility connections that are not proposed to be used shall be abandoned per City Engineering Standards. 26. The building plan submittal shall show the separation between the recycled water hydrant and driveway approach off of Plum Street to be in compliance with City Engineering Standards and to the satisfaction of the Public Works Department and the Utilities Department. 27. The building plan submittal shall show the recycled water landscape meter and service to be installed per City Engineering Standards and to the satisfaction of the Public Works Department and the Utilities Department. 28. The building plan submittal shall show the location of the fire service lateral, double-check assembly, and fire department connection (FDC) on the site utility plan. Show the location of the fire riser room and interior fire riser in accordance with the ARC approvals and/or the Planning Divisions architectural guidelines. Provide access to the fire riser and appurtenances in accordance with the UFC and as approved by the Fire Marshal. Clarify to the satisfaction of the Fire Marshal whether an FDC should be provided at the double-check assembly or on the building. 29. This development shall comply with the Waterway Management Plan. The building plan submittal shall include a final drainage report in accordance with the Waterway Management Plan Volume III, Drainage Design Manual and the Post Construction Stormwater Requirements as promulgated by the Regional Water Quality Control Board. The drainage report shall consider the upslope historic drainage tributary to the property that may need to be accepted and conveyed along with the improved on-site drainage . 30. The building plan submittal shall include a complete grading, drainage and erosion control plan. The grading and drainage plan shall show existing structures and grades located within 15' of the property lines in accordance with the grading ordinance. The plan shall consider historic offsite drainage tributary to this property that may need to be accepted and conveyed along with the improved on-site drainage. This development may alter and/or increase the storm water runoff from this site or adjoining sites. The improved or altered drainage shall be directed to the street and not across adjoining property lines unless the drainage is conveyed within recorded easements or existing waterways. 31. The building plan submittal shall show compliance with the Post Construction Stormwater Requirements as promulgated by the Regional Water Quality Control Board for redeveloped sites, to the approval of the Public Works Director. Include a complete Post Construction Stormwater Control Plan Template as available on the City's Website. ,, ' Packet Pg 100 7 7-3 Project Budget Courtyard at the Meadows Packet Pg 101 7 2018 CDBG Application Courtyard at the Meadows 7-1 Project Budget Summary Site Acquisition 900,000 Construction Costs Site Work Structures 5,233,650 General Requirements 344,100 Contractor Overhead 216,450 Contractor Profit 216,450 Other: Construction Contingency 316,350 Total Construction Costs 6,327,000 Soft Costs Architectural Fees 184,000 Survey & Engineering 75,000 Construction Loan Fees & Interest 726,367 Permenant Loan Origination Fee 257,500 Legal Fees 160,000 Appraisal Costs 9,000 Construction Contingency 316,350 TCAC Monitoring Fees 37,755 Permit & Impact Fees 1,296,862 Marketing 15,000 Furnishings 35,000 Soft Cost Contingency/Other 121,750 Accrued Interest 135,357 Consulting/Other Professional Fees 55,000 Total Soft Costs 3,424,941 Capitalized Reserves 223,647 Developer Fee 1,388,706 Total Rehab & Related Costs 11,364,294 Total Project Costs 12,264,294 Packet Pg 102 7 2018 CDBG Application Courtyard at the Meadows 71 Project Budget Summary Construction Sources Tax Exempt Construction Loan 7,515,000 City of San Luis Obispo Affordable Housing Funds 630,000 Fee Waivers 1,053,924 CDBG Funds 350,000 Accrued Interest 81,357 County of San Luis Obispo HOME Funds 450,000 Accrued Interest 18,000 HASLO HASLO Public Funds Loan 900,000 Deferred Developer Fee 685,000 Accrued Interest 36,000 Limited Partner Tax Credit Equity 545,013 Total Construction Sources 12,264,294 Permanent Sources Tax Exempt Permanent Loan 4,112,013 City of San Luis Obispo Affordable Housing Funds 630,000 Fee Waivers 1,053,924 CDBG Funds 350,000 Accrued Interest 81,357 County of San Luis Obispo HOME Funds 450,000 Accrued Interest 18,000 HASLO HASLO Public Funds Loan 900,000 Deferred Developer Fee 451,702 Accrued Interest 36,000 Limited Partner Tax Credit Equity 4,181,298 Total Permanent Sources 12,264,294 Packet Pg 103 7 2018 CDBG Application Courtyard at the Meadows Project Narrative Project: Courtyard at the Meadows Courtyard at the Meadows will be a new construction affordable housing project consisting of 36 residential units located within the Serra Meadows development in San Luis Obispo, California. The project will feature 9 one bedroom, 18 two bedroom, and 9 three bedroom units, including a managers unit. There is a high demand for all bedroom types in this market as there is a critical shortage of affordable housing. The project has been designed with a Spanish architectural style that includes features such as stucco walls, low slope roof, mission tile, recessed exterior window faces, and arched openings. The proposed layout of the project site provides for efficient use of the available site area and existing topography by maximizing the number of residential units for the site, concealing required parking behind structures. The site plan provides outdoor courtyard space and adequate landscaping between the structures and parking areas. The site provides sufficient access and internal circulation for vehicles and pedestrians. The project’s parking area is not a dominant visual element of the site and is screened by buildings that are oriented toward the street providing private outdoor space interior to the project site for the residential units that respect the privacy of the adjacent lower density residential structures. There are no offsite improvements required as the utilities have already been brought to the site. The land is owned by the Housing Authority of the City of San Luis Obispo. The Housing Authority will lease the land on a long term ground lease to the to-be formed Limited Partnership that will own the building improvements. Packet Pg 104 7