SR - AGR-3987.R - 2017-18 HOME INVESTMENT PARTNERSHIPS AGREEMENT1. SUBJECT
FY 2017 -18 HOME Investment Partnerships (HOME) Program
2. SUMMARY
The U.S. Department of Housing and Urban Development (HUD) has not yet notified the City of
its FY 2017 -18 HOME allocation. The City's estimated FY 2017 -18 HOME grant is $326,249.
The allocation of funds for proposed projects will be subject to City Council approval.
3. RECOMMENDATION
1. Authorize staff to adjust the HOME budget if necessary after HUD notifies the City of its
actual entitlement amount.
2. Authorize staff to request and receive its FY 2017 -18 HOME entitlement from HUD.
3. Authorize the City Manager or his designee to execute the FY 2017 -18 HOME Program
Grant Agreement and all related documents on behalf of the City.
4. FISCAL IMPACT
Funds will be appropriated to the 317 Fund (HOME Program) during the budget process.
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.
FY 2017 -18
HOME Program
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6. GENERAL PLAN IMPLEMENTATION
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
HUD has allocated HOME funds to the City for many years to address affordable housing needs.
The City has provided HOME funds to developers for the acquisition, rehabilitation, and
development of several affordable multi - family housing projects.
The following HOME - funded projects have been completed to date: the Adams Avenue Family
Triplexes I and II, Harmony Creek Senior Apartments, Lemon Street Apartments, Orange Garden
Apartments, Orange Rotary /Orange Housing Development Corporation Senior Plaza Apartments,
Rose Avenue Apartments, Stonegate Senior Villas, Villa Modena Apartments, Wilson Avenue
Apartments II and III, Hoover Avenue Apartments II, Citrus Grove Apartments, and Serrano
Woods Apartments.
Most recently, the City provided a $1.3 million loan of HOME funds for development of the
82 -unit Lemon Grove Apartments project. The project is currently under construction and is
scheduled to be completed in July 2017. In return for assistance, the developers agreed to long-
term affordability covenants, which require that rents be maintained at affordable levels for Low
to Moderate Income tenants for 55 to 65 years.
HUD has not yet notified the City of its FY 2017 -18 HOME allocation. The City's estimated
FY 2017 -18 HOME grant is $326,249. Based upon this amount, funding would be allocated under
the following categories: Program Administration (10 percent budget cap) - $32,625, Developer
Projects - $244,687, and Community Housing Development Organization (CHDO) Projects
(15 percent budget cap) - $48,937.
Council authorization is requested to enable the City to administer its FY 2017 -18 HOME
Program. This would include authorizing staff to adjust the HOME budget after HUD notifies
the City of its actual entitlement amount. As in previous years, the allocation of funds for
proposed projects would be subject to City Council approval.
Although the HOME Program has funded several affordable apartment projects in the City, it is
important to note that the Program in its current form poses a number of issues. The limited
annual grant amounts coupled with regulatory commitment and expenditure deadlines often
prevent the City from accumulating the funds necessary for projects. Federal funding for the
Program beyond FY 2017 -18 is currently uncertain. Staff will keep Council informed on the
status of the HOME Program.
8. ATTACHMENTS
None