Title
Planning and Building Department, Planning Division, Long Range Planning, Housing Unit, recommending the Board:
1) Adopt and authorize the Chair to sign Resolution 048-2024 for the submittal of a 2024 Home Investment Partnerships Program application to the State of California Department of Housing and Community Development to provide up to $12,150,000 in funding for El Dorado Haven Apartments, an affordable multi-family rental project; and
2) If awarded, authorize the Director of the Planning and Building Department, or designee, contingent upon approval by County Counsel and Risk Management, to execute the grant agreement and subsequent amendments thereto that do not affect the dollar amount or the term and to sign other grant-related documents.
FUNDING: Federal Home Investment Partnerships Program Grant Funds.
Body
DISCUSSION / BACKGROUND
The State of California Department of Housing and Community Development (Department) issued a Notice of Funding Availability (NOFA) dated January 19, 2024, for the Home Investment Partnerships Program (HOME).
Eligible applicants for HOME grant assistance include a city or county that does not receive a direct allocation of HOME funds from the United States Department of Housing and Urban Development (HUD).
In response to the 2024 NOFA, the County of El Dorado (Applicant) desires to submit a project application for an allocation of up to $12,150,000 of the HOME Program funds for predevelopment and construction costs associated with El Dorado Haven Apartments. The application is in partnership with Mercy Housing California who will construct and manage the project. The 65-Unit multi-family affordable rental project will be located in Unincorporated El Dorado County in the community of Diamond Springs off Pleasant Valley Road/Highway 49, just south of Lake Oaks Mobile Home Park (Assessor Parcel Number 331-301-017-000).
On June 10, 2021, the Planning Commission (File No. 21-0915, Item No. 2) approved the Design Review permit (DR21-0003) for El Dorado Haven Apartments. The multifamily project will provide 65 affordable units within five buildings, 136 off-street parking spaces, a children’s play area, landscaping, signage and open space/common areas. The project also includes a 3,240 square foot community building/management office and an 850 square foot building maintenance shop.
The HOME application will support the County’s Housing Element Policy HO-1.18, which states that the County shall develop incentive programs and partnerships to encourage private development of affordable housing; and Policy HO-19, to support County application for funds from a variety of sources in support of public improvements and/or community development on behalf of development for, and services that assist, affordable housing.
Affordable housing projects, particularly 100% affordable projects, typically seek funding from a variety of local, state, and federal loan and grant programs to help offset costs of traditional funding sources. These funds are necessary due to the decreased rate of return from the rental income that will be received over the life of the project. The HOME funding program allows jurisdictions to apply for only one project per round. Housing received interest from two co-applicants, Mercy Housing and SNO Foundation. Staff developed a Participation Request Form to evaluate projects and determined Mercy Housing's proposal was the stronger application and has a higher chance for funding. The Participation Request Form for Mercy Housing is attached.
ALTERNATIVES
The Board may deny the request to submit an application for HOME grant funding. Mercy Housing would need to seek alternative sources of funding. If no funding is found, the project may not be viable and the opportunity for affordable housing units would be lost.
PRIOR BOARD ACTION
None
OTHER DEPARTMENT / AGENCY INVOLVEMENT
County Counsel
CAO RECOMMENDATION
Approve as recommended.
FINANCIAL IMPACT
The grant amount of $12,150,000 will be a pass-through amount to the project developer. The County will receive the funds from HCD and then provide them to Mercy Housing. There are no up-front costs to the County and no County General Fund match required for the HOME grant. Up to $150,000 of the grant amount will be used for administrative expenses incurred to implement the project or program activity, which offsets the costs associated with staff time.
CLERK OF THE BOARD FOLLOW UP ACTIONS
1) The Clerk of the Board will secure the Chair's signature on the original copy of the Resolution; and
2) The Clerk of the Board will provide two (2) certified Resolution copies to Planning and Building Department, attention of Bret Sampson, Long Range Planning, Housing Unit.
STRATEGIC PLAN COMPONENT
Safe and Healthy Communities - Develop a continuum of support and housing opportunities for unhoused individuals.
CONTACT
Karen L. Garner, Director Planning and Building
Planning and Building Director