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HomeMy WebLinkAboutItem 01 2016 Home Project Proposal AGENDA ITEM SUMMARY Meeting Date: 4/4/2016 Meeting Type: Work Session Staff Contact/Dept.: Erin Fifield/DPW Staff Phone No: 541-726-2302 Estimated Time: 15 min S P R I N G F I E L D C I T Y C O U N C I L Council Goals: Encourage Economic Development and Revitalization through Community Partnerships ITEM TITLE: 2016 HOME PROJECT PROPOSAL ACTION REQUESTED: Discuss and approve the use of Federal HOME funds for St. Vincent de Paul’s Main on Main proposal for new construction of a new 35-unit affordable housing development at 10th and Main St. ISSUE STATEMENT: The Eugene-Springfield HOME Consortium’s 2016 Housing Request for Proposals (RFP) received four applications for affordable housing development and acquisition, one of which is in Springfield. This application was reviewed by an Evaluation Committee, which recommended the proposal for allocation. Springfield City Council is being asked for their approval of the project moving forward. The Intergovernmental Governing Board will make the final decisions for use of HOME funds based on the decisions of the Evaluation Committee and respective City Councils. ATTACHMENTS: ATT1: CBM HOME PROJECT PROPOSAL DISCUSSION/ FINANCIAL IMPACT: Springfield has about $700,000 in HOME funds available to allocate. Through the 2016 HOME RFP, the Consortium received one proposal for a project in Springfield. This proposal was from St. Vincent de Paul to build 35 new affordable housing units at 10th and Main St, next to the Afiya apartments. St. Vincent de Paul is requesting $600,000 in HOME funds. M E M O R A N D U M City of Springfield Date: 4/4/2016 To: Gino Grimaldi COUNCIL From: Anette Spickard, DPW Director Erin Fifield, Community Development Analyst BRIEFING Subject: 2016 HOME Project Proposals MEMORANDUM ISSUE: The Eugene-Springfield HOME Consortium’s 2016 Housing Request for Proposals (RFP) received four applications for affordable housing development and acquisition, one of which is in Springfield. This application was reviewed by an Evaluation Committee, which recommended the proposal for allocation. Springfield City Council is being asked for their approval of the project moving forward. The Intergovernmental Governing Board will make the final decisions for use of HOME funds based on the decisions of the Evaluation Committee and respective City Councils. COUNCIL GOALS/ MANDATE: Encourage Economic Development and Revitalization through Community Partnerships BACKGROUND: The HOME Investment Partnership (HOME) Program is a federal program administered by the U.S. Department of Housing and Urban Development (HUD) to expand affordable housing opportunities for low-income persons. Since 1992, the cities of Eugene and Springfield have received the federal HOME funding allocation as a unified HOME Consortium, with a targeted percentage of funds to be awarded to each jurisdiction. Each year, the Eugene-Springfield HOME Consortium receives approximately $1 million to put toward affordable housing acquisition and development. As in years past, there are additional prior year funds available for allocation. For Springfield, approximately $700,000 is available to be allocated. As a result of the HOME Consortium restructure in 2015, HOME Consortium funds for use in Springfield are now being administered by Eugene as the Lead Agency. This is the second year that Eugene and Springfield released the Housing RFP together. The HOME Consortium received four proposals for this RFP: one proposal for new development in Springfield, one proposal for new development in Eugene, and two proposals for acquisition-rehabilitation in Eugene. Under the HOME Consortium IGA, the RFP applications are first reviewed by an Evaluation Committee. The committee scores each proposal, and makes a recommendation as to whether each Project is suitable for funding. The proposals in each jurisdiction also go to each City Council for their recommendation. Final funding decisions and project prioritization are made by the HOME Consortium Governing Board, which considers the recommendations from both the Evaluation Committee and the City Councils. MEMORANDUM 3/29/2016 Page 2 2016 HOME Request for Proposals: The HOME Consortium Evaluation Committee is made up of City of Springfield Councilor VanGordon, City of Eugene Councilor Pryor, CDAC member Mike Heckerd, and Leah Callahan, a real estate analyst at Duncan and Brown. They met on March 9th and March 15th to discuss the proposals. All four proposals were deemed “Acceptable” and were recommended for funding by the Evaluation Committee. The Governing Board is composed of the Eugene and Springfield Mayors, one Springfield City Councilor, and one Eugene City Councilor, the latter two of which are also on the Evaluation Committee. The Governing Board is scheduled to meet and approve funding allocations on May 2, 2016. As there is still prior year funding available for each jurisdiction, the proposals do not have to compete against each other for funds. Instead, the Governing Board – made up of each City Council can decide whether to use part of their prior year allocation of funds toward their respective proposed project. Summary of St. Vincent de Paul (SVDP)’s Main on Main proposal: • Location is at 1062 and 1072 Main Street, right next to Afiya Apartments. • SVDP is requesting $600,000 in HOME funds (plus an additional $15,000 estimated for staff costs) • The project is for construction of 35 new units of affordable housing, including 7 units for individuals with a developmental disability. A 9-unit apartment building will be demolished, and all current residents will be permanently relocated. • The project will be a four-story building consisting of 35 one bedroom units and community spaces. There will be 1 ADA unit on each floor. • This is a collaboration between Springfield Church of the Brethren, Brethren Community Services, Mainstream Housing Incorporated, and SVDP • Income restrictions for tenants will be set at the following limits: o 35 units with income limits at 50% AMI (area median income) o 7 rental assistance vouchers are available to ensure 7 units will pay only 30% of their income in rent • The location is next to an LTD bus stop options, near Downtown Springfield, jobs, commercial areas, and schools. • SVDP and Mainstream Housing will coordinate services related to tenant screening, leasing, move-in, case management for those tenants with a developmental disability, and the Residential Service program on the property. • SVDP is an experienced owner of affordable housing. Project costs include demolition and new construction. SVDP plans to apply for tax credits and additional funding through Oregon Housing and Community Services (OHCS). Additionally, a community member has bequeathed $50,000 to Brethren Community Services specifically for the development of affordable housing at this site. For the nine tenants that will need to be relocated due to demolition of the building, rental assistance will be provided by SVDP, as required by HUD. Total project costs: $7,453,817 SVDP requested HOME funds: $ 600,000 (8% of total cost) Other resources: $6,853,817 Staff delivery costs: $ 15,000 The application is available for Council review. MEMORANDUM 3/29/2016 Page 3 RECOMMENDED ACTION: Discuss and approve the use of Federal HOME funds for St. Vincent de Paul’s Main on Main proposal for new construction of a new 35-unit affordable housing development at 10th and Main St.