MEETING DATE:
JANUARY 27, 2014
SUBJECT:
Title
RESOLUTION NO. 2015-8029 - APPROVAL OF APPLICATION FOR HOUSING RELATED PARKS PROGRAM FUNDING
Body
Recommendation
Recommendation
ADOPT a resolution approving the submittal of the Housing Related Parks (HRP) Program grant application and authorizing the City to enter into an agreement with the California Department of Housing and Community Development (HCD) for the use of the HRP Program funds and designating the City Manager as the authorized signatory on all grant-related materials.
Body
Board or Commission Action
Not Applicable
Relevant Council Strategic Theme
Good Governance
Relevant Department Goal
Not Applicable
Introduction
As a result of the November 2006 passage of Proposition 1C (the Housing and Emergency Shelter Trust Fund Act of 2006) the State has announced the availability of $35 million in Housing Related Parks (HRP) program grant funds for Fiscal Year 2014/2015. This program is designed to reward Cities and Counties that approved and permitted the construction of affordable housing projects for low- and very low- income household. Grants are awarded on a non-competitive basis based on applications received by California's Department of Housing and Community Development (HCD). Grant reward funds can be used towards the construction, rehabilitation or acquisition of recreational assets that benefit the community. HCD plans to announce awards in June 2015, and funds are expected to be available between August 2015 and October 2015 upon execution of the standard agreement. The deadline to expend all funds is June 30, 2017.
In order for projects to qualify for the HRP program, they must have affordable housing units approved and permitted during a designated time period, which is January 1, 2010 through December 31, 2014. The affordable housing units must be deed restricted for 55 years. The City was successful in obtaining $1.4 million from the HRP Program during the 2013 funding round for permitting 318 affordable units. The funds are being used for the design and construction of Richmar Park-Phase I. It is anticipated that funds received from the 2014 HRP Program application round will provide additional funding for Richmar Park-Phase I. It is estimated that $400,000 will be received from building permits issued in 2012 for the development of 97 affordable units targeted at low- and very low- income households in the Promenade at Creekside affordable housing development, formerly known as the Residences at Creekside. These units are being claimed at this time because the commencement of construction of the project is finally scheduled for February 2015. This project has been stalled since 2012 as a result of issues arising from the State government's dissolution of the RDA in 2012. Both the Developer and the City have been working diligently since then to revive this stalled project.
The City was successful in obtaining funding from the Workforce Housing Reward (WFH) program, a similar but discontinued program administered by HCD. In 2004, the first round of WFH awards, the City received $1.2 million for permitting 387 affordable units. In 2005, the second round of WFH reward funds, the City received $478,207 for permitting 133 affordable units. In 2006, the third and final round of WFH reward funds, the City received $462,000 for 100 units. The WFH reward funds were used for the design and construction of Sunset Park and Hollandia Park.
Discussion
This staff report and attached resolution seek approval of the City's application for the 2014 round of the HRP Program. In 2012, the City issued building permits for the construction of 97 units of affordable housing targeted at low- and very low- income households located in the current Promenade at Creekside development. These units of affordable housing qualify the City to receive an HRP Program reward of approximately $400,000. If the State receives more qualified applications than the HRP Program funds can support, HCD will distribute the available funding on a pro-rata basis to the agencies that applied.
Fiscal Impact
There is no direct or immediate fiscal impact because the initial phase of park improvements, including soft costs such as design and construction management, are being designed to fit within the total grant allocation amount received from both the 2013 and 2014 funding rounds. No City matching funds are required or anticipated. The additional maintenance expenses for the park will be calculated and presented to the City Council following the detailed design of the park when those costs can be estimated.
Attachment(s)
1. Resolution
Prepared by: Beth Nielsen, Housing Programs Specialist
Submitted by: Harry Williams, Housing Programs Manager
Reviewed by: Karl Schwarm, Director of Housing and Neighborhood Services
Approved by: Jack Griffin, City Manager