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Home My WebLink About0511.092• 13 November 12, ]992 HONORABLE CITY COU~CIL Palo Alto, California Members of the Council: REPORT IN BRIEF This report recOI'TIl'Iends Council approval of i resol~tion authorizing submittal of an ~pp'ication from the City to the State Department of Housing and Cotmlunity Development for S1 mill ion 1n federal HOME (Home fn'llestment PartnErship Prograrr.) funds, for i. program of acquisition and rehabilitation of housing for very low income renters. The intent is to su~contract with the Mid-Peninsula Housing Coalition (MPHC) and the Palo Alto Housing Corporation (PAHC) to utilize the HOME funds, in conjunction with other housing subsidy funds, to purchase and renovate the TamaraCK Court Apartments (by MPHC) and the Barker Hote' (by PAHC). At this time, the City does not have to identify specific amounts of HOME funds for the two projects. If the application for HOME flJnds is successful. staff wi 1 i return to the Counci 1 with a recorrmended division of funds. The attached resolution authorizes the Interim City Manager or City Manager~ depending on the time of the grant, to sign the grant application and certifications and to execute the grant agreement with the Stata~ if the ~ppTicaticn is approved. BACKGROUND The HOME Program, authorized by the National Affordab1e Housing Act of 1990, provides funds for the construction, acq~isition and rehabilitation of ~ery low income housing and for tenant rental subsidies. On October 7, 1992, the State issued a Notice of Funding Avajlability (NOfA) for $42 million in federal HOME funds, to be awarded on a competiti~e basis to no~prQfits and localities that do not receive HOME funds directly from the Department of Housing and Urban Oe~elopment (HUD). This is tt1e first round of funding since the legishtion was enacted. The deadline for applications is Decembe)~ 7. CHR:511 :92 '~" .. '" , . ' , ,. ,', / o • 1992. WMich :neans that th~ City Council must authoriH the apu1icotioll sUbmittal no later than Novem~ei 30th. El1gible :lpplicants, under the 'State's program, are local goverl"ments and COllll1unity Housing Development Organiza.tions (CHDOs). Since Palo Alto does not have a local CHOO, as defined under fec'erGi1 regulations. the City must app1y for an al1otation directly. This applicatio~ will be for a program for the preservation and development of ... e-ry low inCflme rento' hOllsing and wi11 request $1 million. the maximum amount allowed under State rules. The State is expected to announce the grant awards in early March ]993. The State plans a second ro~nd of HOME funding in mid-1993. Two proposal s have been received b,Y the City for the tise of HOME funds, one from the Mid-Pen'nsula Housing Coalit'on (MPHC) for pu~chase and reno¥ation of the Tamarack Court Apartments (4259 El Camino Real)? and one from the Palo Alto Housing C{lrporatiDl"1 (?AHCJ for purchase, renovation and additions to the 8arker Hotel (437-411 Emersofl Street). BoH projects are el igible uses of the funds and would serve a high priority need in providing affordable rental units for the ho~1ess~ disabl~d a~d very lo~ income persons. A short fa(t sheet on both projects is attached. Both projects include c",se management services provided by the Urban Ministry. In each case, HOME funds would provide only a porti~n of the tot~l funds needed, ~ith etMer sources such as Community Development Block Grant, Section 8, the City Co~ercial In-lieu Housing Fund and ban~ fjnancing completing the financing pac~ages. The application to the State will propose that the $1 million in HOME funds be used for i rental housing program for the Tamarack (ourt ar.d Barkef Hotel acqui~itions. The allocation {If the funds betw~en the two projects will be decided after the grant is awarded. Each project could make beneficial use of the total 52 million; however, by maximizing the use of all other available financial resources, it should be possible to c.o,l1plete both projects with the Sl million, if awarded. Staff w111 work. closely with both nonprofits in the n-2xt fe-w months te refine the cost estimates and secure: other funding. If the City rec.eives a 110ME fund ~ward, staff will return to t~e Counc'l fer specific appro¥al of each project. At that time, complete informatjon ~ill be provided concerning the numbers of units, rent levels. accurate cost projections, funding sources, project development schedules and proposed terms for the contribution {If Citj and federal funds. RWlHl!ENDATlON Staff recOJmlends that Council approve the attached ,"esolu.tion, which authorizes the submittal of the ~OM£ appiication to the State and autnorizes the Interim tity Manager or City Manager, as the case mily b€, to execute the CMR:51L91 1l/12/91 Page 2 • \ r '"-- application and certifications and the-standard grant agreement and any amendments tneretc cn behalf of tn" City. ReCJlC;Y'1;I C~THERIHE 5~~El Seni(lr Pla~Uler, Housing ~\I>J' ~~H~"". ~~ .. -.~ Interim City Manager Attachments: Resolution Fact Sneet cc: Planning COlTlllission Human Relations C~iss;on C08G Citizens Committee KENNETH R. SCHREIBER Director of Planning and Community tn~ironment Palo AHo HOlJsing CDrporation, 540 CO\"JP'2:r Stre~t, Suite G, Pa1c Alto, CA 94301 Mid-PeninslIla HOL!sing (oalition, 430 Sherman A'ienue, Suite 203, Palo Alto, CA 94306 Jim 8aer~ 400 Hamilton Avenue, Palo Alto. CA 94301 Jim Burklo. Urban Ministry, P.O, Sox 213. Palo Alto. CA 94302 Palo Alt~ Chamber ~f Commerce (Susan Frank) Downtown Marketing Committee (Micki Schneider) CMR: SII :92 p:\;:;t'fYIh...,...CIT'r "~ __ • __ • __ <o--' .. 1l/12/92 Page 3 .. 'i r1 :l 1 I '. .' '"'I , !-' '- RESOLUTION NO. RESOLUTION OF TIlE COUNCIL OF THECITY OF PliO Ar,TQ AUTHORIZING APPLICATION FOR ~JNDING Uh~BR THE HO~m INVESTMENT PARTNERSHIPS PROGRAM WHEREAS, the California Department of Housing and Community Development (the "D'=!partment."') has issued a Notice of Funding Availability for the Ho~e Investment Partnerships Progr~~ (·HO.~" program} and is authorized to approve funding allocations which will be made available direct.ly through tha United States Department of Housing and Urban Development (~HUD") to be used for the purposes set forth in Title II of the Cranston-Gonzalez National Affo::-dable Housing Act of 1990, the implementing regulations set forth in Title 24 or the Code of Federal Regulations, Part .92~ and Title 2S of the california Code of Regulations comrnenclDg with Section 9200; and WHEREAS. the Ci ty of corporation of the State of application for and receive an Palo AI to; a chartered municipal California; wishes to submit an allocation of HOMB funds~ NOW. THEREFORE, the Council of tree City of Palo Alto does RESOLVE as follows: SECTION 1 The City Council hereby authorizes the sUbmittal of an application to the Department for funding under the HOME program to request a funding allocation for the fallowing activities located in the City of Pale ~to: ACquisition and rehabilitation of rental housing~ SECTION 2. If the applicaticn for funding i~ approved, the City Council hereby agrees to use the HOME funds for eligiblE activities in the manner presented in tr.e application as appro·Jed by the Departrr:ent and in accordance ·",i th th-e. r'3gulatione :;i ted above; o.nd to execute any and all ot.her ir.stn . .L.'1lents necessary or required by the Department or WJD for participation in the HOME program. SECTION 3. The City Counci 1 hereby authorizes the Interim City Manager~ or the City Manager, as the case may be, to execute in the name of the City of Palo Alto the application, the Standard AgreemeDt~ as approved as to form by th€ City Attorney. and all other docUI!le.nts required by the departmer ... t or HUD for participation in the HOME program, and any amend~ents theretc. ~~lQl:L.i... The City Clerk is hereby directed to prepare a certified copy of this resol1.ltion to be submitted to the Department with the application for HOME funds. SECTION 5. This does not const itute a proj ect for purposes of the California Environmental Quality Act ("CEQAft) ~ 1 9211060 ... 0030573 AYES: NOES: A5S!!NT: ABST!!NT!ONS: City Clerk APPROVllD AS TO FORM: Senior Asst~ City Attorcey-- o APPROVED: &yOl" City Hanage.r Director of Financ~ Oirector of Planning and Community Environment --_._---- --.;,:" ,;. -< ... ;, . FACT SHEt1 Project: Tamarack Court Apartments ~Z69 E1 C.mino ~ •• 1 Sponsor; MPH£: Description: ?urtha~e and conversion of existing tQrnrn~rtiGl ~otel to permanent rental housing; renovation of existing structure Tot.l No. of Units: 22 No. of New Ut1its: 22 Population Served; Homel~ss individuals and small families Rents: Section B assistance for 21 units S~ rents will be affofdable to even the lowest income tenants Tot.l Estimated Project Cost: $1,545,000 Sources of Funds Proposed By Sponsor: HOME, Cowell Foundation (committed) Private Mortgage (committed) Project: Barker Hotel 437·411 Emerson St. Sponsor: PAf-ie Description: Purchase and rehabilitation of existing SRO hot .. ~1; Addition of handicapped, accessible units Tot.l No. of Units: 27 No. of New Units: 5 Population Served~ Homeless individudls (including cisab1ed) fl;ents: Current be1o~ mark~t rents to continue (S?on$or plans to apply for rent subsidies, wnen availabTe) Total [sot imated Proj.act Cost: $2,400,000 Sources cf Funds Proposed By Snonsor: HOME. CDBG, Commer-cial Housing lr1 lieu fund~ Pri .... ate first Mortgage (comrni tted} > Second Loan frorT1 Seller SF IS. =