Loading...
HomeMy WebLinkAboutItem 01 CDBG Funds for Housing AGENDA ITEM SUMMARY Meeting Date: 11/19/2018 Meeting Type: Work Session Staff Contact/Dept.: Erin Fifield / DPW Staff Phone No: 726-2302 Estimated Time: 20 Minutes S P R I N G F I E L D C I T Y C O U N C I L Council Goals: Promote and Enhance our Hometown Feel while Focusing on Livability and Environmental Quality ITEM TITLE: COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDS FOR HOUSING ACTION REQUESTED: Provide direction on the use of CDBG funds toward the strategy to “increase the supply of affordable housing.” ISSUE STATEMENT: Council’s Housing Strategy builds on strategies to both increase the supply of housing and the accessibility and affordability of housing throughout the housing continuum. A key component of this strategy has been to “secure property for targeted residential development,” particularly through the use of CDBG funds for acquisition and improvement. With no responses to our recent Request for Proposals, the recent prioritization of CDBG funds toward a S. 57th Street affordable housing project is not moving forward as planned. Staff seeks direction from Council on how to best use CDBG funds in a timely and effective manner. ATTACHMENTS: ATT1 – CDBG funds for affordable housing CBM DISCUSSION/ FINANCIAL IMPACT: This past year, the City has prioritized making the city-owned property at 725 S. 57th Street available for affordable housing. This includes making $503,000 in CDBG funds available toward a development project. Staff solicited a Request for Information in spring 2018, and issued a Request for Proposals (RFP) in summer 2018. Unfortunately, no proposals were received through the RFP. Without a proposal for S. 57th, the City has close to $795,000 in CDGB funds allocated toward the strategy “to increase the supply of affordable housing” without a specific project. Staff recognizes the continued need for increased affordable housing opportunities, and the need to use federal funds in a timely manner. For the timely and efficient use of CDBG funds, staff recommends making these CDBG funds available to community partners through a Request for Proposals to fund projects that would add needed affordable units to our housing supply. M E M O R A N D U M City of Springfield Date: 11/15/2018 To: Gino Grimaldi COUNCIL From: Tom Boyatt, Interim DPW Director Sandy Belson, Interim CMD Manager Erin Fifield, Community Development Analyst BRIEFING Subject: CDBG Funds for Housing MEMORANDUM ISSUE: Council’s Housing Strategy builds on strategies to both increase the supply of housing and the accessibility and affordability of housing throughout the housing continuum. A key component of this strategy has been to “secure property for targeted residential development,” particularly through the use of Community Development Block Grant (CDBG) funds for acquisition and improvement. With no response to our recent Request for Proposals, the recent prioritization of CDBG funds toward a S. 57th Street affordable housing project is not moving forward as planned. Staff is seeking direction from Council on how to best use CDBG funds in a timely and effective manner. COUNCIL GOALS/ MANDATE: Promote and Enhance our Hometown Feel While Focusing on Livability and Environmental Quality BACKGROUND: CDBG strategy: Increase the Supply of Affordable Housing In the FY2018-19 CDBG One Year Action Plan, City Council prioritized CDBG funds toward the strategy to increase the supply of affordable housing. Coupled with prior year funds, this allocation would make close to $795,000 available toward this strategy (see April 23, 2018 work session on CDBG), which includes the $503,000 for the project at 725 S. 57th Street. As discussed during that work session, Council had previously expressed interest in using CDBG funds for two types of potential housing developments: 1) Develop a cluster of houses for rental or ownership, and 2) Develop a yet-to-be-determined new and creative model for affordable housing units. It was anticipated the affordable housing project at 725 S. 57th Street would address the interest in a cluster development. Community Development Advisory Committee (CDAC) The CDAC met on October 25, 2018 to discuss the progress on the use of CDBG funds toward the strategy to increase the supply of affordable housing. With the lack of responses for the S. 57th St RFP, and the awareness that the City had about $795,000 available for a housing project(s), committee members expressed their desire for Council to make those funds available for other projects. Committee members suggested making the full amount of CDBG funds available for an open Request for Proposals (RFP), asking community partners to bring forward creative ideas that could move forward quickly and still add needed housing units. Committee Attachment 1, Page 1 of 2 members also suggested staff not limit the focus of funds to just one property, in order to increase the likelihood of using the funds and creating projects. HOW TO USE CDBG FUNDS FOR AFFORDABLE HOUSING The City’s recent efforts to develop housing on S. 57th Street highlighted the importance of a development partner being willing and able to move forward on a project. The City is not in the business of residential development and, as Councilor Woodrow pointed out during the October 25 CDAC meeting, serves more as a facilitator to help make development feasible. It is staff’s recommendation for the City to serve as a facilitator in a broader means than just S. 57th Street, and to go in search of developers who are willing and able to move forward on a project of their choice to increase the supply of affordable housing. Per the CDAC’s discussion, this would look like an open RFP, making the full CDBG allocation available for proposals that aim to add affordable units to the housing supply. This RFP could still include a project at S. 57th Street if Council desired. Staff would still pursue finding medium-density land for acquisition, but such an effort could happen concurrently with an RFP and be considered along with other proposals. Per its by-laws, the CDAC serves as a forum for citizen participation and would review and recommend to Council projects for funding. Putting together a viable development proposal is complex and takes time. Staff aims to release an RFP soon with submission dates at the end of January and March to allow developers sufficient time to put together a proposal but also to encourage those who are ready to apply for funds sooner rather than later. The CDAC would review proposals at meetings in February and April. Q: Does Council support releasing an RFP to make the full $795,000 in CDBG funds available to developers to increase the supply of affordable housing? RECOMMENDED ACTION: Staff recommends releasing an RFP to make the full $795,000 in CDBG funds available to developers to increase the supply of affordable housing. Attachment 1, Page 2 of 2