HomeMy WebLinkAboutAgenda Bill 3.I 08/02/2010SAL U~
a '~~
' I85Q' ,
DATE:
TO:
FROM:
August 2, 201.0
~I ~ev~da~ ItPvw #3.I
.Honorable Mayor and Members of "the City Council through City Manager
Bonne Gaebler, Housing Administrator
SUBJECT`. Resolution Authorizing The Submittal Of An Application To The California State
Department Of.Housng And Community Development For Funding Under The
HOME Investment; Partnerships -Program.
1tECO1VIIVIENDATION
It is recommended-that the City Couricl adopt the ,attached:resoluton authorizing the submittal
of an application to the California State. Department of Housing .and Community Development
for funding under the HOME Investment Partnerships Program, and if selected, the execution of
a standard agreement, any amendments thereto, and any -related documents necessary to
participate in the HOME Investment Partnerships Program.
BACKGROUND
USA properties has received all land use approvals to construct 68low-income senior
apartments (Vintage Chateau, Phase II), on an in-fill. site on North:IVlc Dowell Blvd., immediately
adjacent to Phase I, In order to compete for specific funding.: -assistance that is available to this
project, USA properties is requesting .that the .City apply for State of California HOME funds in
an amount ofnot-to-exceed $5,000,000. The City has .submitted. successful HOME applications
for six existing affordable. communities in Petaluma, with a seventh application pending for
Logan Place.
DISCUSSION
As an entitlement.community under the Community Development Block, Grant Program the City
is eligible to .apply directly to the State Department. of Housing and CommunityDeveloprnent
(HCD) on a competitive basis for HOME funds. The application will be submitted by'the City.;
although USA Properties will conduct the majority of the work in completing the application.
The{ application for HOME° funding will not be ,accepted without an accompanying. resolution. by
the local jurisdiction.
Agenda Review: -
t. Director City Attorley Finance Director:,~City Manager
- ~~ ~ ~.
>FIIVANCIAL IMPACTS
If approved, the City will receive administrative funds in the amount of 5% of the total award
and project funds will be provided to USA Properties for the actual development of the project.
The award; potentially as much as $5,000,000, will be structured. as a loan between the City and
USA, secured by a promissory note and deed of trust on the property.. Other than Housing
Division staff time, that is covered by the 5% administrative fee if funds are awarded, there is no
current financial impact to the City.
AT'I'ACHIVIENTS
Resolution approving the submittal of a HOME Application
2
Attachflnent #1
Resolution No. 2010 - X~~X N.C.S.
of the City of Petaluma, California
AUTHORIZING THE SUBMITTAL OF ~AN APPLICATION TO THE CALIFORNIA STATE
DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT FOR FUNDING
UNDER THE HOME' INVESTMENT PARTNERSHIPS PROGRAM
WHEREAS:
A. The California Department of Housing and Community Development (the "Department")
is authorized to allocate HOME Investment Partnership 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 setforth 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.
B. On June 1, 2010, the Department issued a 2010 Notice of Funding Availability
announcing the availability of funds under the HOME program (the"NOFA").
C. In response to the 2010 NOFA, the City of Petaluma, a municipal corporation, (the
"Applicant") wishes to apply to the .Department for, and receive an allocation of, HOME
funds.
NOW THEREFORE BE IT RESOLVED THAT:
1. In response to the 2010 NOFA, the Applicant shall submit an application to the
Department to participate in the HOME program and' for an allocation of funds not to
exceed.. $:5.0 Million for a Rental New construction project consisting of a total of'68 low
income. senior apartments, located in Petaluma, CA.
2. If the applicatior for funding is approved, then the.. Applicant hereby agrees to use the
HOME funds for eligible .activities in the manner,presented in its application as ;approved
by the Department in accordance with fhe statutes and: regulations cited above. The
Applicant may also execute a standard agreement, any amendments thereto, and any and
all other documents or instruments necessary or required by the Department of HUD for
participation in the HOME program (collectively, the "required documents").
3. The applicant authorizes the City Manager, or his designee, to execute a Standard
Agreement and other required documents on behalf of the City.
3