HomeMy WebLinkAboutR-11016 approving an affordable housing fund award to Transitions-Mental Health for existing 6-unit property to rehabilitate as affordable housingRESOLUTION NO. 11016 (2019 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, APPROVING AN AFFORDABLE HOUSING
FUND AWARD TO TRANSITIONS -MENTAL HEALTH ASSOCIATION
FOR ACQUISITION OF AN EXISTING 6 -UNIT PROPERTY TO BE
REHABILITATED AS AFFORDABLE HOUSING IN THE AMOUNT OF
$330,000
WHEREAS, the City Council of the City of San Luis Obispo met in the Council Chamber
of City Hall, 990 Palm Street, San Luis Obispo, California, on June 4, 20I9, for the purpose of
considering a request for Affordable Housing Fund (AHF) assistance; and
WHEREAS, the proposed project by Transitions -Mental Health Association (THMA)
meet the eligibility criteria established by the City Council; and
WHEREAS, Housing Element policies and programs encourage and support the
construction of new affordable housing in the City; and
WHEREAS, the City Council has duly considered all evidence, including the testimony
of the applicant, interested parties, and the evaluation and recommendations by staff at the said
meeting.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo
as follows:
SECTION 1. Findings. The City Council does hereby make the following findings in
support of the proposed AHF awards:
1. Eligibility: Use of the AHF for the requested purpose will increase or improve the
City's affordable housing inventory and promote General Plan policies regarding
housing, as follows:
TMHA's project is eligible for Affordable Housing Funds because it increases the
City's affordable housing inventory and implements several General Plan policies
regarding housing. The project will increase the supply of affordable housing for
six low income adults living with mental-health diagnoses.
2. Need: There exists a substantial or overarching need for the type of unit to be
assisted, as follows:
TMHA is houses over 250 clients annually with the goal of creating supported,
permanent housing for adults with mental illness. Once opened, Bishop Street
Studios will provide 34 housing units to this population. TMHA received around
300 applications for these units, which demonstrates a clear need for this type of
supported housing.
R 11016
Resolution No. 11016 (2019 Series) Page 2
3. Suitability: The project to be assisted is appropriate for its location both in terms
of land use and design, as follows:
This project is appropriate for this location, since the two existing homes are
currently being utilized for residential use. The front house located on Branch
Street is a 1 -bedroom, 1 -bathroom cottage. On the same lot, facing South Street,
are five units consisting of two studios and three 1 -bedroom lofts. The property is
in close proximity to amenities, public transportation, Meadow Park, and TMHA
services.
4. Timing: The project would better serve the City's needs if it were built immediately
as opposed to later, as follows:
TMHA received around 300 applications for the 34 units under construction in the
Bishop Street Studios project, meaning there are approximately 266 community
members in need of safe, supportive housing. TMHA knows that stable housing
and recovery go hand-in-hand. This project will bring TMHA a few steps closer to
providing housing for the hundreds of San Luis Obispo residents living with mental
health diagnoses.
5. Financial Effectiveness: But for the requested funding, the project would not be
economically feasible; or AHF funding "leverages" significant additional funding
from other sources, as follows:
TMHA will soon be awarded with a No Place Like Home (NPLH) grant, which
provides funds to house low income adults with mental health diagnoses. The
NPLH grant will be in the amount of $1,082,952, which leaves about a $330,000
balance to complete the purchase of the property. TMHA's request of $330,000 is
a highly effective use of the City's Affordable Housing Funds, as the City will gain
six units that will be affordable for a minimum of 55 years.
6. Readiness: The project has all necessary City approvals and is ready to proceed, as
follows:
The project did not need to obtain any City discretionary approvals. Upon the
award of the City, THMA plans to close escrow on the property as early as June
2019. THMA will then make improvements to the units as needed and submit any
plans to the City Building division as necessary.
SECTION 2. Environmental Determination. The California Environmental Quality Act
does not apply to the recommended action in this report, because the action does not constitute a
"Project" under CEQA Guidelines Sec. 15378.
R 11016
Resolution No. 11016 (2019 Series)
Page 3
SECTION 3. AHF Award for Transitions -Mental Health Association. The City Council
does hereby approve an AHF award in an amount not to exceed $330,000, subject to the following
condition of approval:
1. Prior to release of any portion of the AHF award, the applicant shall enter into an
affordability agreement with the City for the six (6) for -rent affordable housing
units located at 527 Branch Street and 526 South Street for a term of fifty-five (55)
years, which will be recorded against the title of the property.
Upon motion of Council Member Christianson, seconded by Council Member Gomez, and on the
following roll call vote:
AYES: Council Members Christianson, Gomez, and Stewart,
Vice Mayor Pease and Mayor Harmon
NOES: None
ABSENT: None
The foregoing resolution was adopted this 4th day of June 2019.
ATTEST:
— V) /-Qz
Mayor ei Harmon
Teresa Purrington, City Cl r
APPROVED AS T0+QRM:
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 134 day of JLXVI& 2019.
Teresa Purrington, City Clo
on
R 11016