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HomeMy WebLinkAboutStaff Report 2.D 07/20/2009ew CITY OF PETALUMA, CALIFORNIA July 20, 2009 AGENDA BILL Agenda Title: Consider a Resolution Authorizing the Submittal of an Meetin-z Date: July 20,2009 Application to the California State Department of Housing and Community Development for Funding Under the HOME Investment Partnerships Meeting Time: 7:00 PM Program; and if Selected, the Execution of a Standard Agreement, any Amendment Thereto; and of any related Documents Necessary to Participate in the HOME Program. CateL-ory: ❑ Presentation ❑ Appointments 0 Consent ❑ Public Hearing ❑ Unfinished Business ❑ New Business Department: Director: City Manager's Office John Brown Total Cost of Proposal or Proicet: $4,000,000 (or the maximum amount available) Amount Budgeted: 0 (At this time) Contact Person: Phone Number: Bonne Gaeblerv00 , 778-4484 Name of Fu": HOME Account Number: H00202090-54130-170003 Current Fund Balance: 0 (At this time) Recommendation: It is recommended that the City Council take the following action: Adopt a Resolution 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 Amendment Thereto; and of any related Documents Necessary to Participate in the HOME Program. 1. ❑ First reading of Ordinance approved unanimously, or with unanimous vote to allow posting prior to second reading 2. ❑ First reading of Ordinance approved without unanimous vote: Ordinance has been published/posted prior to second reading; see Attachment 3. ❑ Other action requiring special notice: Notice has been given, see Attachment Summary Statement: The division of the HOME program to which the City would apply is the low -moderate income rental new construction division administered by the California State Dept. of Housing and Conununity Development (HCD). A similar application was submitted by the City Housing Division last year to be utilized by Burbank Housing for their newest Petaluma affordable 66 -unit family community, Logan Place. Unfortiuiately, due to the confusion of the state budget, a hold was put on several of the usual housing funding sources utilized by our nonprofit housing partners. As a result, our 2008 application was withdrawn for lack of adequate permanent financing. Several avenues for fiinding are once again available; thus we are resubmitting an application for the maximum amount available, currently $4,000,000. (Additional fiends are often made available because some projects drop out, etc.). Attachments to ALTenda Packet Item: Exhibit ##1 Resolution Reviewed by Finance Director: Reviewed by City Attorney: Approved by City Manager: � l �;a4t ;.11000 Date: Date:--?, Rev. # rflVA-L, Date Last Revised: Fite: HOMEloganplaceresponse/li/d CITY OF PETALUMA, CALIFORNIA JULY 205 2009 AGENDA REPORT FOR Consider a Resolution 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 Amendment Thereto; and of any Related Documents Necessary to Participate in the HOME Program. 1. RECOMMENDATION: Adopt a Resolution 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 Amendment Thereto; and of any related Documents Necessary to Participate in the HOME Program. 2. BACKGROUND: By virtue of being a HUD -designated entitlement jurisdiction, the City of Petahuna is eligible to apply to HCD for federal HOME funds on a project specific basis. In the past, the City has been successful in six applications totaling approximately $7,000,000 and providing nearly 400 HOME - funded low-income units for the community. 3. DISCUSSION: A similar application was submitted by the City Housing Division last year to be utilized by Burbank Housing for their newest Petaluma affordable 66 -unit family community, Logan Place. Unfortunately, due to the confusion of the State budget, a hold was put on several of the usual housing funding sources utilized by our nonprofit housing partners. As a result, our 2005 application was withdrawn for lack of adequate permanent financing. Several avenues for funding are once again available; thus we are resubmitting an application for the maximum amount available, currently $4,000,000. (Additional funds are often made available because some projects drop out, etc.). 4. FINANCIAL IMPACTS: The receipt of HOME funds is a win-win for the City. The nonprofit developer benefits from the additional revenue to construct the project, thereby reducing the future rents for the tenants. The City is awarded the funds from. HCD as a grant and, in turn, it is treated as a low-interest, deferred payment loan to the developer. The application will be for $4,000,000; the resolution allows for a not -to -exceed amount of $4,500,000 to allow for a potential increased grant allocation from HCD. The City receives 5% of the grant as administrative revenue directly to the City. EXHIBIT #1 RESOLUTION 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 OF ANY RELATED DOCUMENTS NECESSARY TO PARTICIPATE IN THE HOME INVESTMENT PARTNERSHIPS PROGRAM WHEREAS: A. 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 purpose 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 Title 25 of the California Code of Regulations commencing with Section 5200. B. On Jane 1, 2009 the Department issued a 2009 Notice of Funding Availability announcing the availability of fields under the HOME program (the "NOFA"). C. In response to the 2009 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 2009 NOFA, the City of Petaluma is authorized to submit an application to the Department to participate in the HOME program and for an allocation of funds not to exceed $4.5 million for a Rental New Construction project consisting of a total of 66 "work force" apartments, located in Petalruna, CA. 2. If the application for funding is approved, the City hereby agrees to use the HOME funds for eligible activities in the manner presented in its application as approved by the Department and in accordance with regulations cited above. The City further agrees to execute a Standard Agreement, any and all other documents necessary or required by the Department or HUD for participation in the HOME prograrn (collectively, the required documents). 3. The City Manager, or his designee, is authorized to execute a Standard Agreement and other required documents on behalf of the City.