DATE: July 7, 2020
TO: Mayor and City Council
FROM: Deputy City Manager
SUBJECT
Title
Adopt a Resolution Authorizing the City Manager to: (1) Apply for and Enter into a Standard Agreement with the California State Department of Housing and Community Development Local Housing Trust Fund Program for an Amount Not-to-Exceed $5 Million to Support EAH’s Mission Paradise and Pimentel Place Affordable Housing Projects; and (2) Accept and Appropriate Any Awarded Funds in the Amount Not-to-Exceed $5 Million
End
RECOMMENDATION
Recommendation
That the Council adopts a resolution (Attachment II) authorizing the City Manager to:
1. Apply for the California State Department of Housing and Community Development (HCD) Local Housing Trust Fund (LHTF) Program in an amount not-to-exceed $5 million to support Mission Paradise and Pimentel Place; and if the grant funds are awarded,
2. Enter into and execute a Standard Agreement with the California State Department of Housing and Community Development Local Housing Trust Fund Program; and
3. Accept and appropriate any awarded funds in an amount not-to-exceed $5 million.
SUMMARY
On April 30, 2020, HCD released the LHTF Program Notice of Funding Availability (NOFA), which made available approximately $57 million in funding for qualifying affordable housing projects in jurisdictions with new or existing Local Housing Trust Funds (LHTF). City staff has determined that EAH’s currently proposed Mission Paradise and Pimentel Place affordable housing projects that were awarded City funds in 2018 for a total of 133 units meet the eligibility requirements for the LHTF Program and could receive up to $3.3 million in grant money, collectively, to cover eligible project costs. As required by the LHTF Program, the City’s already $3.3 million in awarded local trust funds will provide eligible matching funds for EAH’s LHTF Program grant applications for these projects. Staff recommends that the City apply to HCD’s LHTF Program for the maximum amount of $5 million to provide flexibility for these and other potential projects. A successful application for the EAH projects will provide additional funding in the amount of $1.3 million for Mission Paradise and $2 million for Pimental Place needed to develop both projects.
ATTACHMENTS
Attachment I Staff Report
Attachment II Resolution