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SR - - LEMON GROVE APARTMENTS1. SUBJECT Amend the Fiscal Year 2015 -2016 (FY16) HOME Investment Partnerships (HOME) Program budget for the Lemon Grove Apartments 2. SUMMARY The City appropriated HOME funds for the Lemon Grove Apartments project. The U.S. Department of Housing and Urban Development (HUD) requires the City to expend HOME Program Income before other HOME funds are expended. A budget amendment is required in FY16 to reflect that the HOME budget for the Lemon Grove Apartments project includes HOME Program Income. 13. RECOMMENDATION Authorize an appropriation of $593,178.87 to HOME Program Income (317) in FYI 6 to account number 317.9661.56571.20249 (HOME Program Income Loan -Lemon Grove Apartments). 14. FISCAL IMPACT Upon approval of the appropriation, the FY16 HOME Program Income budget will be increased as follows: 317.9661.56571.20249 Lemon Grove Apartments $593,178.87 5. STRATEGIC PLAN GOAL(S) Goal 3: Enhance and promote quality of life in the community. Strategy c.: Support and enhance attractive, diverse living environments. Lemon Grove Apartments FY16 HOME Program Budget Amendment Page 2 6. GENERAL PLAN IMPLEMENTATION Land Use Goal 1.0: Meet the present and future needs of all residential and business sectors with a diverse and balanced mix of land uses. Policy 1.3: Provide a range of housing densities and types to meet the diverse needs and lifestyles of residents. Housing Goal 2.0 Assist in the development of adequate housing to meet the needs of Low and Moderate Income households. 7. DISCUSSION and BACKGROUND The Lemon Grove Apartments is an 82 -unit affordable housing project being developed by a partnership of Orange Housing Development Corporation and C &C Development Co., LLC with financial assistance from the City. In FY15, The City appropriated Low and Moderate Income Housing Asset Funds and HOME funds for the project. The HOME appropriation included a total transfer of $1,300,000 from the HOME entitlement account and the canceled Santa Ines project account to the Lemon Grove Apartments project account. In reviewing the HOME Program budget, staff recognized that other resources (Program Income) are available to be used for affordable housing projects. Additionally, HUD requires the City to expend HOME Program Income before other HOME funds are expended. Therefore, in order to comply with HUD requirements and reconcile the FY 16 budget, staff is requesting an appropriation of $593,178.87 to HOME Program Income for the Lemon Grove Apartments project. The original budgeted amount of $593,178.87 from the HOME entitlement account will then be made available for future projects. 8. ATTACHMENTS None CITY COUNCIL MINUTES AUGUST 9, 2016 3. CONSENT CALENDAR (Continued) APPROPRIATIONS 3.9 A request to appropriate developer -paid funds related to the Santiago Hills II project toward consultant staff services and approve a First Amendment to Consultant Services Agreement with Morse Planning Group. (A2100.0; AGR- 6318.1) ACTION: 1) Appropriated $100,000 from unreserved fund balance of the General Fund (Fund 100) to the Advance Planning Other Professional and Consulting Services account (100.6011.51670.00000); and 2) Approved and authorized the Mayor and City Clerk to execute the First Amendment to Consultant Services Agreement with Morse Planning Group to increase the total compensation by an additional $40,000. 3.10 Amend the Fiscal Year 2015 -2016 (FY16) HOME Investment Partnerships (HOME) Program budget for the Lemon Grove Apartments. (C2500.G.1.9) ACTION: Authorized an appropriation of $593,178.87 to HOME Program Income (317) in FY16 to account number 317.9661.56571.20249 (HOME Program Income Loan-Lemon Grove Apartments). 3.11 Carryover of Appropriation of $831,000 from Fiscal Year 2015 -2016 to Fiscal Year 2016 -2017 for Ca1PERS Lump Sum Payments. (I1200.0.3.4) ACTION: Authorized the carryover of $831,000 in expenditure account 760.0000.50510.00000 from Fiscal Year 2015 -2016 to Fiscal Year 2016 -2017. BIDS 3.12 Bid No. 167 -03; Approval of plans and specifications, and request authorization to advertise for bids for the Federal Highway Safety Improvement Program (HSIP) Pedestrian Crossings Upgrade at 14 Intersections Project. (S400.S.7) ACTION: 1) Accepted into the City's revenue budget a $49,500 additional grant from HSIP into revenue account 550.5032.45150.20194, Pedestrian Crossings Upgrade; 2) Authorized the appropriation of $49,500 into expenditure account number 550.5032.56100.20194 Pedestrian Crossing Upgrades; and 3) Approved the plans and specifications, and authorize advertising for bids for the HSIP Pedestrian Crossings Upgrade at 14 Intersections Project. 3.13 Bid No. 167 -05; Approval of plans and specifications, and authorization to advertise for bids for the Yorba Park Grading Project. (C2500.M.17) ACTION: Approved plans and specifications and authorized advertising for bids for the Yorba Park Grading Project. PAGE 4