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Department of Human Services recommending conceptual approval to submit two HOME Investment Partnerships Program Grant applications to the California Department of Housing and Community Development under the 2010 Notice of Funding Availability:
1) Program Activities allocation application in an amount up to $800,000 to provide additional funding resources for the ongoing County Housing Rehabilitation and First-Time Homebuyer Loan Programs; and
2) Rental Project allocation application in an amount up to $5,000,000 for an affordable rental housing project on behalf of Mercy Housing California.
FUNDING: Federal HOME Grant Funds.
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Fiscal Impact/Change to Net County Cost: There is no cost associated with the application process, other than the staff time to complete the grant application. No County match will be required for the HOME grant if funded.
Background:
The County's Housing Rehabilitation program was established in 1994 through a California State Department of Housing and Community Development (HCD) Community Development Block Grant (CDBG) award approved for submittal on April 5, 1994 by Board of Supervisors Resolution #86-94. The County established a First-Time Homebuyer Program with an HCD CDBG application approved for submittal on February 4, 2003 by Board of Supervisors Resolution #024-2003. Through subsequent CDBG and HOME grant awards, the County has continued to provide loans to low-income persons in the unincorporated area of El Dorado County. To date, the First Time Homebuyer Program has provided $1.88 million in loans to twenty-three (23) low-income homebuyers and has a wait list with one hundred forty-seven (147) eligible households. The Housing Rehabilitation Program has provided $1.78 million in loans to sixty-four (64) homeowners to eliminate health and safety hazards, and has a wait list of seventy-six (76) homeowners.
In addition to programs funded by the HOME Program, the County has supported the development of affordable housing projects since 1998, initially through a HOME Investment Partnerships (HOME) grant award approved for submittal on October 27, 1998 by Board of Supervisors Resolution #265-98. The grant award was applied for on behalf of Mercy Housing California for the Diamond Sunrise II affordable housing project. Through subsequent HOME grant awards and CalHFA loans, the County has continued to support the development of affordable housing in the unincorporated areas of El Dorado County. Diamond Sunrise II, completed in 2002, is located in Diamond Springs and provides 16 units of affordable Senior Housing. The White Rock Village Apartments project, located in El Dorado Hills, completed in 2005, provides 168 units of affordable workforce housing. Both projects provide for a 55-year period of affordability.
Reason for Recommendation:
The 2010 HOME Investment Partnerships Program Notice of Funding Availability (NOFA) offers grant opportunities for the development of affordable housing projects and the provision of programs such as Owner-Occupied Housing Rehabilitation and First-Time Homebuyer Loan Programs. Eligible beneficiaries under the HOME Program are households earning no more than 80% of the area median income based on household size. It is anticipated that two applications under the current HOME NOFA would provide up to $800,000 to continue the Housing Rehabilitation and First-Time Homebuyer Loan Program, and up to $5,000,000 toward the development of a 50-unit affordable rental housing project on behalf of Mercy Housing California.
Mercy Housing California (MHC) is an affordable housing developer that is proposing the new construction of a 50-unit workforce affordable housing apartment complex at the corner of Sunset Lane and Becken Lane in the community of Shingle Springs. The units at Sunset Lane Apartments will be a mix of one-through-three-bedroom apartments affordable to a range of El Dorado County household sizes with incomes ranging from 30% to 50% of the Area Median Income. Five of the units are proposed to be reserved for disabled persons who are eligible for special services. The project will also include a 2,500 SF community building. Total project costs are estimated at $13,168,000.
The County has worked with Mercy Housing California to apply for other State grant and loan funding to support the development of the Sunset Lane Apartments project. An application to CalHFA for $1,500,000 HELP program loan funds to support Mercy Housing California in the development of an affordable housing project was approved on May 6, 2008 by Board Resolution #PHA 2-08. The application was selected for funding award and the loan funds are targeted to the Sunset Lane Apartment project. On August 11, 2009, the Board approved the submittal of a HOME Investment Partnership application in the amount of $5,100,000 that was not selected for funding award during 2009. An application to HCD for $525,000 in CDBG General Allocation grant funds for public improvements in support of housing new construction was approved on June 15, 2010 by Board Resolution #075-2010, and award announcements are anticipated in September 2010.
An application under this NOFA for the continuation of the Housing Rehabilitation Loan Program and First Time Homebuyers Loan Program, and for the development of an affordable housing project supports the goals of the 2008 General Plan Housing Element, including: Measure HO-29 to continue to make rehabilitation loans to qualifying very low and low income households; HO-21 to work with property owners to preserve the existing housing stock; Measure HO-18 apply for funds in support of housing rehab and weatherization programs for low-income households; Measure HO-17 to continue to apply for funding in support of a first-time homebuyers program low to moderate income households; Policy HO-1.6 to encourage new or substantially rehabilitated discretionary residential developments to provide for housing that is affordable to low, very low, and moderate income households; and Policy HO-1.10 to apply for funds from the state and federal government such as the Community Development Block Grant (CDBG), Home Investment Partnerships Program, and AB 2034 programs, and explore additional ways such funds may be used countywide to support construction of affordable housing.
Existing staff would be utilized to administer the activities under this grant. The level of environmental review required under the grant activities will be determined once the applications are developed. The environmental review process and the agreement with Mercy Housing California would be completed as a part of the grant set up conditions as required by the State Department of Housing and Community Development and would be overseen by County staff.
Following Board conceptual approval to proceed, the applications will be developed, and a Public Hearing will be scheduled for Board consideration of the applications and receipt of any public comments, at which time adoption of a Resolution will authorize submittal of the grant applications.
Action to be taken following Board approval:
Human Services - Housing, Community and Economic Development staff to prepare funding applications and all relevant documents for Board of Supervisors approval to submit said applications to the State Department of Housing and Community Development.
Contact: Daniel Nielson, M.P.A., 642-7275
Concurrences: N/A