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HomeMy WebLinkAboutAgenda Report - August 3, 2011 C-11AGENDA ITEM Colo I\ CITY OF LODI COUNCIL COMMUNICATION AGENDA TITLE: Adopt Resolution Authorizing the City Manager to Submit a Joint Application with Eden Housing Inc. to the State of California Department of Housing and Community Development for HOME Investment Partnerships Program Funding; and if Selected, the Execution of a Standard Agreement, any Amendments Thereto, and of any Related Documents Necessary to Participate in the HOME Investment Partnerships Program MEETING DATE: August 3,201 1 PREPARED BY: Community Development Department RECOMMENDED ACTION: Adopt resolution authorizing the City Manager to submit a joint application with Eden Housing Inc. to the State of California Department of Housing and Community Development (HCD) for HOME Investment Partnerships Program funding; and if selected, the execution of a Standard Agreement, any amendments thereto, and of any related documents necessary to participate in the HOME Investment Partnerships Program. BACKGROUND INFORMATION: The City of Lodi is working with Eden Housing, Inc., and its affiliate, Eden Development, Inc., toward the development of an affordable senior housing project in Lodi, at 2245 Tienda Drive. As noted during previous presentations to the City Council leading to the selection of the developer for this project, Eden Housing has more than 40 years' experience in the development and management of affordable housing projects. Eden Housing is in the process of completing the prerequisite work for the application. Once approved, the resolution authorizing the joint application will be included in that application. Once all supporting documentation has been compiled and incorporated into the application document, that application will be submitted to HCD prior to the August 16, 2011 deadline. The maximum grant amount for HOME Project funds through HCD is $5 million. In addition to the project funding, HCD allows State recipient agencies to request up to $100,000 for program administration and project delivery costs. This is an amount above and beyond the requested project funding amount and is intended to cover the requesting agency's costs in administering the project funds and specific project delivery costs. This increases the maximum grant available to $5.1 million. While Eden Housing has determined that the City should request $4.1 million in State HOME funds for the initial Phase I of the project, and another $100,000 for the program administration and project delivery, it is a standard practice and recommended by HCD that the adopted resolution provide for funding up to the maximum grant amount available, which in this case is the $5.1 million. APPROVED: \ — -�"�� Konradt Bartlam, City Manager FISCAL IMPACT: The City will assume responsibility for administering these funds and has accordingly requested additional program administration and project delivery funding in this application to cover those costs. FUNDING AVAILABLE: HOME Program funding through State Housing and Community Development Kon adt Bartlam Community Development Director KB/jw JXommunity Development\Council Communications\2011\8-3 Joint HOME Application with Eden.doc RESOLUTION NO. 2011-127 A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING THE CITY MANAGER TO SUBMITA JOINT APPLICATION WITH EDEN HOUSING, INC. TO THE STATE OF CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT FOR HOME INVESTMENT PARTNERSHIPS PROGRAM FUNDING; AND IF SELECTED, THE EXECUTION OF A STANDARD AGREEMENT, ANY AMENDMENTS THERETO, AND ANY RELATED DOCUMENTS NECESSARY TO PARTICIPATE IN THE HOME INVESTMENT PARTNERSHIP PROGRAM :::-::-r--.-.-..-r.:::::-I::- WHEREAS, the California Department of Housing and Community Development (the Department) is authorized to allocate HOME Investment Partnerships Program (HOME) funds made available from the U.S. Department of Housing and Urban Development (HUD). HOME funds are to be used for the purposes set forth in Title II of the Cranston -Gonzalez National Affordable Housing Act of 1990, in federal implementing regulations set forth in Title 24 of the Code of Federal Regulations, part 92, and in Title 25 of the California Code of Regulations commencing with section 8200; and WHEREAS, on June 1, 2011, the Department issued a 2011 Notice of Funding Availability (NOFA), announcing the availability of funds underthe HOME program; and WHEREAS, in response to the 2011 NOFA, the City of Lodi, a municipal corporation, and Eden Housing, Inc., a nonprofit corporation (the Applicants), wishes to apply to the Department for, and receive an allocation of, HOME funds. NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby authorize the City Manager, in response to the 2011 NOFA, to submit a joint application with Eden Housing, Inc. to the Department to participate in the HOME program and for an allocation of funds not to exceed Five Million, One Hundred Thousand Dollars ($5,100,000) for the following activities and/or programs: Development of an affordable senior rental housing project in Lodi, California, and any eligible costs related to the administration of the HOME funds and project delivery; and BE IT FURTHER RESOLVED that, if the application for funding is approved, the Applicants hereby agree to use HOME funds for eligible activities in the manner presented in the application as approved by HCD in accordance with the statutes and regulations stated above. The City Manager is hereby authorized and may also execute a standard agreement, any amendments thereto, and any and all other documents or instruments necessary or required by HCD for participation in the HOME program. Dated: August 3, 2011 hereby certify that Resolution No. 2011-127 was passed and adopted by the Lodi City Council in a regular meeting held August 3, 2011, by the following vote: AYES: NOES: ABSENT: ABSTAIN COUNCIL MEMBERS— Hansen, Katzakian, Nakanishi, and Mayor Johnson COUNCIL MEMBERS— None COUNCIL MEMBERS — Mounce COUNCIL MEMBERS — None 2011-12? RANDI JOHL City Clerk