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HomeMy WebLinkAboutR-10710 - Approving an Affordable Housing Fund award for Habitat for Humanity of SLO County RESOLUTION NO. 10710 (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. 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 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. R 10710 Resolution No. 10710 (2016 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: 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. R 10710