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HomeMy WebLinkAbout55G - RESO - AFFORDABLE HOUSING PROGRAMREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: JUNE 7, 2016 TITLE; RESOLUTION AUTHORIZING SUBMITTAL OF AN APPLICATION AS A JOINT APPLICANT WITH META HOUSING CORPORATION FOR THE AFFORDABLE HOUSING AND SUSTAINABLE COMMUNITIES PROGRAM (STRATEGIC PLAN NO. 5, 3 & 6) CITY MANAG — RECOMMENDED ACTION CLERIC OF COUNCIL USE ONLY: :•-• k As Recommended ❑ As Amended EJ Ordinance on 1a0 Reading Ordinance on 2no Reading ® Implementing Resolution �j Set Public Hearing For_ CONTINUED TO FILE NUMBER Adopt a resolution authorizing submittal of a funding application as a joint applicant with Meta Housing Corporation for the Affordable Housing and Sustainable Communities Program in the amount not to exceed $12,028,626 of which $7,833,126 is requested as a loan for Affordable Housing Development and $4,195,500 is requested for a grant for Sustainable Transportation Infrastructure Project for the Santa Ana Arts Collective Project, subject to non - substantive changes approved by the City Manager and City Attorney. DISCUSSION On January 29, 2016, the California Department of Housing and Community Development (HCD) announced the availability of approximately $320 million in funding for the Affordable Housing and Sustainable Communities Program (AHSC), also known as the Cap & Trade Program. The AHSC Program funds are offered through a Notice of Funding Availability (NOFA) application that provides funding for projects that reduce greenhouse gas emissions by supporting more compact, infill development patterns, encouraging active transportation and transit usage, and protecting agricultural land from sprawl development. Funding for the AHSC Program is provided from the Greenhouse Gas Reduction Fund, an account established to receive the California Cap- and -Trade Program auction proceeds. Meta Housing Corporation (Developer) successfully submitted a concept proposal in March 2016 and was invited to submit a full application by June 20, 2016. The Developer's full application for AHSC funds is for $12,028,626, of which $7,833,126 is requested as a loan for an Affordable Housing Development (AHD) (AHSC Loan) and $4,195,500 is requested for a grant for Housing - Related Infrastructure (HRI), Sustainable Transportation Infrastructure (STI), Transit - Related Amenities (TRA) or Program (PGM) activities (AHSC Grant). 55G -1 Resolution — AHSC Program Application June 7, 2016 Page 2 The AHSC Loan will be for the Santa Ana Arts Collective project (Project), which will adaptively reuse an existing commercial building at 1666 N. Main Street in Santa Ana with new construction to develop a mixed -use, multi - family affordable housing community consisting of 57 affordable units, with a community arts gallery, an art garden on the ground floor, a maker space, digital and media lab, music room, performing arts room, and activity programs (Exhibit 1). The Project will be one of the first projects under the City's new adaptive reuse ordinance and the first affordable housing complex with an artist preference. The AHSC Grant will be for the development's STI and TRA portion of the project which is a bicycle boulevard treatment along Bush Street between 17th Street and Civic Center Drive. A bicycle boulevard provides a bicycle friendly low- stress alternative to Main Street and a crucial connection to Downtown Santa Ana. If awarded funding from the State for the AHSC Grant, staff will recommend to City Council to acknowledge the grant funds and enter into a contract with Meta Housing Corporation to utilize the grant funds to construct the transportation related infrastructure for the Santa Ana Arts Collective Project, subject to non - substantive changes approved by the City Manager and City Attorney. The Project proposal is consistent with the goals set forth in the Southern California Association of Government's 2012 -2035 Regional Transportation Plan /Sustainable Communities Strategy, which places great importance on sustainable and smart growth, as well as the interconnectivity of land use and transportation planning. On November 3, 2015, the City Council awarded a pre -loan commitment to the Developer of Inclusionary Housing Funds, Community Development Block Grant (CDBG) and HOME Investment Partnership Program (HOME) funds, not to exceed $4,635,000. In February 2016, City Council approved the loan agreement for the Inclusionary Housing Funds and CDBG funds with affordable housing restrictions in place for fifty -five years. The Santa Ana Arts Collective Project was approved by the Planning Commission on May 9, 2016 with approval of Variance No. 2016 -04. On June 7, 2016, the City Council will receive and file the Planning Commission's approval. STRATEGIC PLAN ALIGNMENT Approval of this item assists the City in meeting Goal #5 - Community Health, Livability, Engagement & Sustainability, Objective #3 (Facilitate diverse housing opportunities and support efforts to preserve and improve the livability of Santa Ana neighborhoods) and Objective #6 (Focus projects and programs on improving the health and wellness of all residents). FISCAL IMPACT There are no fiscal impacts associated with this item at this time. Contingent on the award of funds, the resolution authorizes the City Manager to enter into a Standard Agreement with the 55G -2 Resolution —AHSC Program Application June 7, 2016 Page 2 State of California in a total amount not to exceed $12,028,626 in order to secure the AHSC Program Funds from the State. Robert C. Cortez Special Assistant to the City Manager City Manager's Office JB /NV Exhibits: 1. Location Map 2. Resolution 55G -3 55G -4 r a Q O m PROPOSED PROJECT LOCATION 1666 NORTH MAIN STREET a FE 51 NAL v 0 COMM RCIAL 17TH C 0 M M E F C I A L COMM. J J Q F w J O Q V W K W 0 W v 15TH F W W F- 0 Q V r EXHIBIT 1 55G -5 u COMMERCIAL STREET �9P J COMM. J Q F V W O W K W V W W � CC z Q � O V 1 1 < w F F O o � v STREET 16TH STREET �9P COMM. J U w 2 z Q V m O V 1 1 < w w N STREET �9P 55G -6 ROH — 06/07/16 RESOLUTION NO. 2016 -xxx A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AUTHORIZING THE SUBMITTAL OF AN APPLICATION FOR FUNDING UNDER THE AFFORDABLE HOUSING AND SUSTAINABLE COMMUNITIES PROGRAM AS JOINT APPLICANTS WITH META HOUSING CORPORATION, AND, IF AWARDED, AUTHORIZING THE CITY TO ENTER INTO A CONTRACT WITH DEVELOPER UTILIZING THE GRANT FUNDS TO CONSTRUCT THE TRANSPORTATION RELATED INFRASTRUCTURE FOR THE SANTA ANA ARTS COLLECTIVE PROJECT BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA, AS FOLLOWS: Section 1. The City Council of the City of Santa Ana hereby finds, determines and declares as follows: A. The Strategic Growth Council's ( "SGC ") Affordable Housing and Sustainable Communities ( "AHSC ") Program funds land -use, housing, transportation, and land preservation projects to support infill and compact development that reduces greenhouse gas ( "GHG ") emissions. These projects facilitate the reduction of the emissions of GHG's by improving mobility options and increasing infill development, which decrease vehicle miles traveled and associated greenhouse gas and other emissions, and by reducing land conversion, which would result in emissions of greenhouse gases. B. On January 29, 2016, the Department of Housing and Community Development ( "HCD ") announced availability of approximately $320 million in funding for the AHSC Program, also known as the Cap & Trade Program. C. The State of California, SGC, and HCD issued a Notice of Funding Availability ( °NOFA ") dated January 29, 2015, under the AHSC Program, established under Division 44, Part 1 of the Public Resources Code, commencing with Section 75200. Funding for the AHSC Program is provided from the Greenhouse Gas Reduction Fund, an account established to receive Cap- and -Trade auction proceeds. D. SGC is authorized to approve funding allocations for the AHSC Program, subject to the terms and conditions of the NOFA, Program Guidelines, Application Package, and Standard Agreement. HCD is authorized to administer the approved funding allocations of the AHSC Program. Resolution No. 2016 -xxx Page 1 of 3 Mill E. The City of Santa Ana wishes to support Meta Housing Corporation's ( "Developer") application to receive an allocation of $12,028,626 in grant and loan funds through the AHSC Program as joint applicants of the Santa Ana Arts Collective project, a mixed -use, multi- family, adaptive reuse and new construction affordable housing development. The Application comprised of $7,833,126.00 is requested as a loan for an Affordable Housing Development (AHD) ( "AHSC Loan ") and $4,195,500.00 is requested for a grant for Housing - Related (HRI), Sustainable Transportation Infrastructure (STI), Transit - Related Amenities (TRA) or Program (PGM) activities ( "AHSC Grant ") as defined the AHSC Program Guidelines adopted by SGC on December 17, 2015. F. If the application is approved, the City is hereby authorized and directed to enter into, execute, and deliver a State of California Standard Agreement in a total amount not to exceed $12,028,626 ($7,833,126 for the AHSC Loan and $4,195,500 for the AHSC Grant), and any and all other documents required or deemed necessary or appropriate to secure the AHSC Program funds for the Department, and all amendments thereto (collectively, the "AHSC Documents "). G. The City of Santa Ana provided the Developer with a residual receipts loan in an amount not to exceed $4,635,000 in support of the development. Section 2. The City Manager, or his designee, is authorized and empowered to execute in the name of the City of Santa Ana all necessary applications, contracts, payment requests, agreements, amendments or any other documents related to, and in furtherance of, the Developer's application for the purposes of securing funds and to carry out the purposes specified in the AHSC application and agreement. Section 3. This Resolution shall take effect immediately upon its adoption by the City Council, and the Clerk of the Council shall attest to and certify the vote adopting this Resolution. Resolution No. 2016 -xxx Page 2 of 3 55G -8 ADOPTED this _ day of June, 2016. Miguel A. Pulido Mayor APPROVED AS TO FORM: Sonia R. Carvalho City Attorney By. Ij Ryan O. Hodge Assistant City Attorney AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers CERTIFICATION OF ATTESTATION AND ORIGINALITY I, MARIA D. HUIZAR, Clerk of Council, do hereby attest to and certify the attached Resolution No. 2016- to be the original resolution adopted by the City Council of the City of Santa Ana on June 2016. Date: Clerk of Council City of Santa Ana 55G -9 Resolution No. 2016 -xxx Page 3 of 3 55G -10