HomeMy WebLinkAboutAgenda Report - August 1, 2012 C-12AGENDA ITEM C4 2
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AGENDA TITLE: Adopt Resolution Authorizing the City Manager to Submit an 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 1,2012
PREPARED BY: Community Development Department
RECOMMENDED ACTION: Adopt resolution authorizing the City Manager to submit an
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 has been 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 has assisted with the submission of HOME applications for this project
in 2009, 2010 and 2011. The project has scored higher every year that we have applied, but the cutoff
funding scores have also increased each year, which demonstrates just how competitive these funding
programs are. In 2009, 2010 and 2011, the cutoff scores were 1374, 1428 and 1492 respectively. Our
corresponding scores for those years were 1270, 1412 and 1415.
In the 2012 Notice of Funding Availability (NOFA) from HCD, there have been some changes in the
scoring matrix, as well as proposed changes in both HUD and HCD regulations that could very well have
an impact on our ability to score competitively this year. However, the most drastic change is in the fact
that HOME funding for 2012 was cut 45 percentfrom 201 1 _
Other changes in the realm of affordable housing financing have affected Eden's strategy for funding this
project. With the recent dissolution of redevelopment agencies and the resulting legal uncertainty
surrounding many of those projects and lack of an ongoing funding source, Eden believes that the 9%
Low -Income Housing Tax Credit is a more viable option to fund this project than in previous years and
they will be applying accordingly in March of 2013.
APPROVED:
vonradt Bartlam, City Manager
Authorize HOME Application
August 1,2012
Page 2
Eden is in the process of completing the prerequisite work for the 2012 HOME application packet. Once
approved, the authorizing resolution will be included in that packet. Once all supporting documentation
has been compiled and incorporated into the application document, it will be submitted to HCD prior to
the August 17, 2012 deadline.
The maximum grant amount for HOME Project funds through HCD is $2 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 our costs in administering the project funds and specific project delivery costs. This
increases the maximum grant available to $2.1 million.
While Eden has determined that the City should request $1 million in State HOME funds for the project,
and another $75,000 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 $2.1 million.
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
onradt Bartlam
Community Development Director
KB/jw
J:\CommunityDevelopment\CouncilCommunications\2012\8-1 HOME Application with Eden.doc
RESOLUTION NO. 2012-120
A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING THE CITY MANAGER
TO SUBMIT AN APPLICATION WITH EDEN HOUSING, INC. TO THE STATE OF
CALIFORNIA DEPARTMENT OF HOUSINGAND COMMUNITY DEVELOPMENT FOR
HOME INVESTMENT PARTNERSHIPS PROGRAM FUNDING; AND IF SELECTED,
THE EXECUTION OF A STANDARD AGREEMENT, ANY AMENDMENTS THERETO,
AND ANY RELATED DOCUMENTS NECESSARYTO PARTICIPATE IN THE HOME
INVESTMENT PARTNERSHIP PROGRAM
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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, 2012, the Department issued a 2012 Notice of Funding Availability
("NOFA) announcing the availability of funds underthe HOME program; and
WHEREAS, in response to the 2012 NOFA, the City of Lodi, a municipal corporation, and
Eden Housing, Inc., a nonprofit corporation (the "Applicants"), wishes to apply to the Departmentfor,
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 2012 NOFA, to submit an application with Eden Housing, Inc.
to the Department to participate in the HOME program and for an allocation of funds not to exceed
Two Million, One Hundred Thousand Dollars ($2,100,000) 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 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 1, 2012
hereby certify that Resolution No. 2012-120 was passed and adopted by the Lodi City
Council in a regular meeting held August 1, 2012, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
COUNCIL MEMBERS— Hansen, Johnson, Katzakian, Nakanishi, and
Mayor Mounce
COUNCIL MEMBERS— None
COUNCIL MEMBERS— None
COUNCIL MEMBERS— None
2012-120
RANDI JOHL
City Clerk