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Home My WebLink About0470.092October 22, 1991 HONORABLE CITV COUNCIL Palo Alto, California :"!,," - .~. SOURCES AND POTENTIAL USES OF HOUSING fUNDS Members of the Council: REPORT IN BRIEF This is af} informational report and no Council acllon is requested_ This report conta1ns general information on the types of housing funds availab1e to the City, a description of th~ir intended uses and/or limitations. and a brief status report on the projects that are currently anticipated to impact those funds. This report was prepared to provide Council with additional infonmation with which to consider the housing proposals from the Palo Alto Housing Corporation relating to Single RODm Occupancy Dev2lopment, Qnd the Community Housin~, Inc_ proposal for the Lyttor. IV project. KQUSING IN-LIEU FUNPS Residential Account: Mitigation fees collected from residential projacts tnat do not provide a -Below Market Aate" (BMR) component may be used to acquire existing properties. The aCCDIJnt has a nl?git~Vi! ba1ance due to ':he loan from tne Commercial Fund to purchase the Oak Manor Apartments. No major new projects are antiCipated which would substantially alter the balance of funds. Comrnercia1/lndustrial Account: Mitigation fees collected from projects that create new o~ additional commercial or industrial floor area must be used to provide new or additional housing units_ This requirement is to establish a connect1~n to increased ~orker housing to offset the additional floor area_ Tne current balance is $3.3 million, and there is one projeet in the developaent stag. that would add approximately $500,000 to the fund, COlt'tUNlTV OEYELOPltfNT BLOCK GRANT ((neG) FUWS COBG grants are appropriated annually based or. the federal governmentrs allocation of funding. funds may b~ used for acquisition of lanj or rehabilitation of e~isting housing units, and predevelopment costs. Except ~nder speCial circ~~stances, these funds may not be used for new construction_ Tne City Council set aside $393,995 f,'om the 1992/93 grant for singl. room CMR:470:91 :./" occupane:y iHld senior housing in a ratio of 4 to 1. It is anticipated that t ... e 1993/94 gr.nt will be appro,imately $750,000 of which up to S500,000 could be awa11able for housing projects. HOME FUHOS HC»+E is it new fedeorill Housing Frogr'am. Since Palo Alto is not an entltlement City und~r the HOME regulitior.s, th~ City must part;~ipate in the Stit~'s corr~eLitive ipplication pro(ess in order to receive HOME project funding. Applications for a ma~1mum of one ~illion dollars in funds are due December 7. 1992, The program will support both acquisitiQn of exist;~g ~n~ts and new construc.tion, as lIIell itS rehabilitation. Staff anticipited returning to Council for authorizatlon to apply for funding for the TamaraCK (o~rt and Barker Hotel projects described below. As of OCtober 20, the Tama,ack Court project is on schedule for the HOME application process. Staff is working with the Palo Alto Housing Corporation to prepare a Barker Hotel project proposal. The first round Gf funding does not reo,uire I matching grar.t, but subsequent appropriations will Include a matching requirement+ The iecond round of f~nding will probably be 1~r.Q~nced in the current 1992/93 fiscal year. Tile awaihbility of tnese funds is not Hil.ired, but will depend on the strength of the City's appllcation a~d the read~ness of the projects for which funding is requested. PROJECTS Lyttgn lY. Sponsored by Community Ho~sing Inc., this project will develop 51 n~ wnits of very low income senior housing. HUO 202 funding has Oeen received for a rental assistance contratt and for capital costs. Request to the City is for Sl.45 millj~" in Ho~sing-In'lieu funds. Total project cost is S6.S million. Staff does not believe that this pr~ject would be a strGng ca .. didate for HOME funding due to the .lready heavy investment by HUD. The project would, howeyer, be eligible u~der the HOME regulations. Approx1mately SIOO,OOO in CDSG funds are committed to the project. Barker Hotel. Sponsored by t~e Palo Alto Housing Corporation, this project proposes to aCQuire~ rehabilitate, anj add 5 ~nits to the !xisting 22 room single room occupancy hotel in downtown Palo Alto. Funds for acquisition and rehabilitation could come from either HOME or COBG funds. and c<H1struction of additional units could be funded from the Ho~sing In lieu Fund. Acquisttion and rehab11it.tion costs are e~pected to be approx;~ately 52.5 mlllion. CD8G funds of appro.imately S300,OOO are available for SRO development. Ti!arack CQurt. Mid-Peninsula Ho~sin9 Coalition (MPHC) proposes to acq~fre and rehabilitate a 22 unit apartment complex for permanent rental housing for very low inco.e perso~s. The project is locat!d at 4273 El Camino Real and 1S expected to cos.t $1,545,000. The funding request to the City is for $1,000,000. MPHC has secured I rental assistanc~ contract through the Santa Clara County Housing Authcrity fo~ this project. Staff anticipates applying for HOME funds for a portion of the project's costs. CMR:470:92 p~ \OIt'\UILIElJ.QII 10/22/92 Page 2 ., , .' ~DawntQWD S80, Pila Alto Housing Corporation prop~5es the c~r.struction of a new single room o<cupancy facility in the ~Gwntown area to address the housins needs of low income workers. Ya~ious costs for this project could be funded from HOME, COBG t and Housing-In-lieu. Project costs are unknown at this time. The attar:.hed chart shows anticipated uses of funds for the projects descri bed above within the tcntext ~f the a~ailable funding. Respectfully submitted, ~' ~ -&~fJ~ KENNnH R. SCHRfl8ER 'j Oirector of Plann~ng and Isu' E RICHARDS ,/ COB (lordinator ~~~~ ~~r~y Kanager Attachment cc: Phnning C:olllr.l.ssion Architectural Review Soard COBG Citizens Adv;so~y Committee Community E~vironment Downtown Marketing CD~lttee~ ~iki Schneider, Spirals, 367 U~iversity Avenue, Palo Alia, CA Cit1zens Advisory Commitiee Coomunity HDusin9~ rnc. t Bhir Stewart, 656 iytt{Jn Avenue, Palo Alto Ca 94301 Tony Badger, 381 Hawthorne Avenue, Palc Alto, CA 94301 Geoff Ball, 315 Bryant Street, Palo Alto, CA 94301 Jim Baer, Ware • ~riedrich, 400 Hamilton Avenue, Palo Altc t CA 94301 Victor Bellomo, 753 E. El Camino Real, Sunnyvale, CA 94086 Melissa Biggs, 30l Bryant Street, Palo Alto, CA 94301 lrv Brenner, 250 Byron Str~et, Palo Alto, CA 94301 Jim Burklo, Urb.n Ministry, P.O. Box 213, Palo ~.1to, CA 94302 Carrasco & Associates, 120 ~amilton Av~nue, Palo Alto, CA 94301 Loretta and Jim Cesari, 238 Bryant Street, Palo Alto, CA 94301 Kathleen Craf9t )01 Waverley Street~ Palo Alto, CA ~4301 Ralph Cressman, 360 [yerett Ayenue. Palo Alto, CA 94301 C~arles R. Edelstein, 355 Santa Rita Avenue, Palo Alto CA St~ve fasani, Fas~ni Carpets t 539 Alma Street, Palo Alto~ CA Marvin H. Feinstein, P. O. 80x 1461, Palo Alto, CA 94302 Ms. Marion Fritz, Manager, Cardinal Hotel, 235 Hamilton Avenue, Palo AHa, CA Andrew Gottlieb, 309 Bryant Street, Palo Alto, CA 94301 Hu~an Relations (ommission Chop Keenan, 700 Emerson Street, Palo Alto, CA Ja~s A. Koch, 2666 East Bayshore Road, Palo Alto, CA 94303 CMR:470:92 P:\CIIt\UIL IEU,OIi 10/22/92 Page 3 I ! CIIR:.70:92 ':\""-H.LIE~.CIIr HC!JSIIIG-IH-UEU CDBS HONE COHHERCIAl FlJIfI)S FUNDS 1992/93 Balance $3,3~,OQO $ 394, ODD $1,000,000 I If!i!fKt lytton IY (1,950,000) ( 100,000) Barker Hotel ( 100,000) ( 258,000) ( 700,000) • PAHC Admin. ( 18,000) Tamarack Court ( 300,000) • Downtown SRO PAHC Adloin. ( 18,000) II&lance 1,250,000 -C--0- Ant 1 c i pated 1993/94 Fundin. SOO,OOO 500,000 Unknown Total $1,750,000 $ 500,000 Unknown , The HOME funds are subject t~ submission of a successful application. The City does ~ot hive entitlement to HOME funas and it is not possible at this time to estimate potential 1~~3-94 HOME funds. 2 If the PAHC appl1cition for the Ba~K~r Hotel is not completed, staff anticipates applying for $),000,000 for tne Tamarack COwrt project. CMR:470:92 Pl \a.I\l_llEU.M , -'-. 10/22/92 Page 5