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Home My WebLink About0376.095'. " ", '; --:.' .-.-',' . e City of Palo Alto City Manager's Report TO: HONORABLE CITY COUNCiL FROM: CITY MANAGER AGENDA DATE: August 14, l'I'JS DEPARTMENT: Plall"ing •• d CommaDity EavironmeDt CMR:376:9S SUBJECT: ABthori:ultioa to Submit Application for Federal HOME Funds to Stat. Deportment of Hou.ing Ind Commullity Development REQUEST Council action is requested 10 opprov •• resolutlon authorizing an application fur S I million in FY 1m federal HOME funds 10 be used 10 support the development and rehabilitation of low income renlal housing, in ~ with the objectives of the City's adopted ConsOOdated Plan. RECOMMENDATIONS Staff recommends t1lat the Council approve the attacbed resolutioll which autb0ri7.es the submlttal of the applicatioo 10 the Slale. auth<!<lze. the City Manager 10 exc<:ute the application, the =tifications, and the standard grant agreement and any amendments thereto 00 behalf of the City. POllCY lMPUCATIQNS This action does DO! involve any chaoges in City po!jcy. EXECUTlYE SUMMARY The HOME Program was established by the Natiooal Affordable Housing Act of 1990. The City does DOl qwilify as an eotitlement jurisdiction under the HOME formula. However, the City is eliglble 10 apply fcc gra.'lIs from the Stat. 00 a competitive basis. For FY 1m. $28.4 mlUioo is available on & S1llIeWide basis; howev .. , after special set-asides fur rum! areas and certain oonp<ofits, the remaining pool is $16.9 million. Local nonprofits, such as the Palo Po&elol3 o Aho l-I0usin8 C<xporation (P AHC) and Mid-Peninsula Housing Coal ition (MPHC). cannot apply directly 10 the StAle. The City can, however, subcontract with them to develop housing projects. One nullion dollars is the maximllm grant that ",ill be awarded 10 any cue applkant. The appIication is due September 15, 1995 and, by regulation, awards must be announced within 80 days or by December 4. 1995. The City previously r=ived a S I nullion grant of FY 1992 HOME funds and successfully IlSed the entire award for a portion of the Barker Hotel funding. That pcoject is now completed and several other housing projects have reached • !.:vel o( readiness and certainty wbere • competitive application can be submitted. The State 1l'"..e5 a point system 10 rate app~tions which emphasizes programs .. "XI projects that can be implemented quickly due 10 deadlines in the federal regulations. Specific projects must be identified by the City by December 1996. and funds must be put under contract with the project sponsor or developer by December 199;. or !he funds ,...:n be =aptured by the SIde. The City's grant appL":ation will be p.-imarily fuc new construction acti \ities. Possible projects ."lrC the new SRO sponsored by P AHC; the housing lOr persons with developmental disabilities sponsored by MPHC; the four-unit, below-market-rate project at 33<l Emerson. associated with the new housing development on the IOrrner Times-Tribune site; and, possibly. new coru;truction of a shared, single (amHy house in cooperation wk. .. lnnov.tive Homing. A secondary activity will be 10 provide ~~nds for rehabilitation o( existing. low income housing. PAHC is in need of funds 10 complete repairs on the sr. .. -un.it apartment bui1<ling at 3()51-3061 Emerson Street that they purch...,d last )'ear with a loan from the City'. Housing Rrserve Food. fiSCAL IMPACT An award of HOME funds will bave a positive imp"'''! on the City's financial resoon:es 10 meet its housing objectives. The HOME funds "'ill be =>d 10 assist housing development project; presently under-;<-.y and will allow the City's Housing Rosen'. funds 10 be used 10 support a greater number of housing projects than possible without the lvallability of a HOME grant. Sinr..e HOD waived the normal 2S percent matching requirement lOr Caflfomia lOr this.fiscal year, the grant does DOl require JocaI matching funds. Additionany. HOME regulations DOW allow up IQ S percent of the grant 10 be used fuc the City's administration costs related 10 the projects and the grant. f.NYIBQNMEl!<'TAI, AS-SESSMtNJ' The application lOr a grard is no( an action subject to the Califontia Environmental Quality Act (CEQA) or the Natiooa1 Environmental Policy Act (NEP A). Env'.ronmental review will be coodllCled prior 10 ubligating grant funds 10 paIticular housing projects. ,..,101) '-.. -ne.if ! ----. .. -. AUACHMENTS PREPARED BY: Ca!heriM Siegc~ Housing Coordinator DEPARTMENT HEAD APPROVAL: ~;(~;k,.9 KENNETH R. SCHRFJBER Dir~ of Planning and Communil)' En-.irorunenl mY""""''''''''ROVAL~ B -M. OJNY Ass· City anager . C('~ Palo Aha Housing Ccrponttion Mid-Peninsula Housing Coalition Innovative Housing COOO Citizens Adviso<y Committee • RESOUTrION NO_ RBSOlmION OF THE COUNCIL OF riiBCIn OF PALO ALTO AtmIORIZING JG!£LlCA'!ION ~ FUNDING UNDER THE HOMB INVJIS'l1o!KN'l' I'AATNERSHIPS PROGRAM i WH1!RRAS. ~be caHfornia Department of B""eing and COIIIIlWlity Developlll"..%lt ("!KD") issued a !iO<:ice of Funding Availability !"NOFA') for the Heme Investment Partnerships Program ('"HCME program-) ~ and is a"thori~ed to "'Weave funding allocations .,hich .. ill be made available direc:.ly thrOUSh the naited States Department of Housing and. Urban Developnent (-HOC-) t.o be used for the purposes set forth in Title II of the cranston-Goozalez National Affordable Housing Act of L990, the implementing regulations set forth in Title 24 of the Code of Federal Regulations. Part. 92 ... .and Title 25 of tbe C&1itornia Code of Regulations. commencing vith Section 8200: and WHEREAS.. the City of Palo Alto. a cbartered city and a zm.m1cipal corporation of the State of California" wishes to submit an application for SI.nd receive an allocation of HOME funds; NOW, THEREFORB .. the Council ot ~be City of Palo Alto does R.8SOt,.VB as follOws: SECTION 1. In response to the ~FA.. the Ci ty Council hereby authorizes tbe City of Palo Alto to sutmit an application to BCD for funding under the BOMB program and r~est a funding allocation tor new coostruction of rental housing or the acquIsition and rehabilitation of rental housing., or boCh, in the City of Palo Alto_ SBCITON 2. If the application for funding is approved., the City of Palo Alto by it-s City Council hereby agrees Ito use the HOMB funds for eligible activities in the manner presented in the appllc,altion as approved by Bm ar-od in accordance with the implementing r~-ulatlonB cited a!:>ove. The City Council also authorizes the exe~Jtion of any and all ocher ins~ruments necessary or required by HCD or HOC> fo-r participation in t.he HOMB program. SRCTION .3. The City COuncil hereby authorizes the City Mallager, or her designee._ to execute in tbe name of the City of Palo Alto the application, the Standard Agreement, as approved ae to form by the City Attorney. and all other docwnects required by BCD or HtJD tor participatiOll in the HOME program .. and any amend ments thereto. SECTION~. The City Clerk is hereby directed to prepare a certIfied copy of this resolution to be subadtted to H:(D 'With t.he application for HOME funds. 1 .-.", "'-BCT1rnL..S. The ilction taken hereby does not. conetitut.e i!. project for purposes of tbe california Environmental Quality Act '-CECA-). therefore~ DO en~~r~~ot31 assessment is required. UI'I'ROOOCBD ANI> PASSED: AYKS, A'M'EST: City Clerk APPROVE!> AS TO FC'RM: senior Aut. City Attorney APPIlOVlID: Mayor city Manager Director of Planning and Community Envlrocment Director of Adman. Services