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Home My WebLink About55D - RESO - COMMUNITY PARTNERSREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: 19, 2017 TITLE: ADOPT A RESOLUTION SUPPORTING COMMUNITY DEVELOPMENT PARTNERS SUBMITTAL OF AN APPLICATION FOR THE AFFORDABLE HOUSING AND SUSTAINABLE COMMUNITIES PROGRAM, AND, IF AWARDED, AUTHORIZING THE CITY TO ENTER INTO A CONTRACT WITH COMMUNITY DEVELOPMENT PARTNERS TO CONSTRUCT THE TRANSPORTATION RELATED INFRASTRUCTURE FOR THE TINY TIM APARTMENTS LOCATED AT 2223 WEST FIFTH STREET (STRATEGIC PLAN NO. 5,3 & 6) iii?—VIANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1� Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Adopt a resolution supporting Community Development Partners submittal of a funding application for the Affordable Housing and Sustainable Communities Grant Program ("Cap and Trade") in the amount not to exceed $6,700,000 for the Tiny Tim Apartments, and if awarded, authorizing the City of Santa Ana to enter into a contract with Community Development Partners utilizing grant funds to construct the transportation related infrastructure for Tiny Tim Apartments, subject to non - substantive changes approved by the City Manager and City Attorney. DISCUSSION On October 2, 2017, the California Department of Housing and Community Development (HCD) announced the availability of approximately $255 million in funding for the Affordable Housing and Sustainable Communities Program (AHSC). 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 auction proceeds from the California Cap -and -Trade Program. The application for AHSC funds to be submitted by Community Development Partners (the 55D-1 Resolution — AHSC Program Application December 19, 2017 Page 2 "Developer") is not to exceed $7,500,000, of which up to $5,000,000 is requested as a loan for the affordable housing development (AHSC Loan) and up to $2,500,000 is requested for a grant for Housing-Related Infrastructure (HRI), Sustainable Transportation Infrastructure (STI), Transit- Related Amenities (TRA) or Program (PGM) activities (AHSC Grant). The Tiny Tim Apartments project is a 51-unit new construction affordable housing development at 2223 W. Fifth Street in Santa Ana targeting low-income families making 30% to 60% Area Median Income (Project). The AHSC Grant will be for the Developer's STI and TRA portion of the Project, which is a bicycle boulevard treatment along Fifth Street between the Santa Ana River Trail and Raiff Street. The Resolution supports the submission of an application forfunding under the AHSC Program (Exhibit 1). Furthermore, if the Project is awarded funding from the State of California for the AHSC Grant staff will recommend to City Council to enter into a contract with Community Development Partners to utilize the grant funds to construct the transportation related infrastructure for the 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 Governments' 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 June 20, 2017, the City Council awarded a pre-loan commitment to the Developer of Inclusionary Housing Funds not to exceed $1,300,000 and Housing Successor Agency Funds not to exceed $4,700,000. The Tiny Tim Apartments project was approved by the Planning Commission on November 27, 2017. On December 19, 2017, the City Council will be asked to receive and file the Planning Commission's approval. Contingent on the award of funds, the resolution authorizes the City Manager to enter into a contract with the Developer to utilize those AHSC Grant funds in an amount up to $2,500,000 to develop the Transportation Related Infrastructure component of the Project. 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 is no fiscal impact associated with this action. Obert M. Zur ch i Interim Executi irector Community Development Agency Exhibit: Resolution 55D-2 Exhibit 1 ROH -12/19/17 RESOLUTION NO.2017-xxx A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA SUPPORTING COMMUNITY DEVELOPMENT PARTNERS SUBMITTAL OF AN APPLICATION FOR FUNDING UNDER THE AFFORDABLE HOUSING AND SUSTAINABLE COMMUNITIES PROGRAM, 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 TINY TIM APARTMENTS PROJECT LOCATED AT 2223 W. FIFTH STREET 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 October 2, 2017, the Department of Housing and Community Development ("HCD") announced availability of approximately $255 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 October 2, 2017, 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. 2017-xxx Page 1 of 3 55D-3 E. The City of Santa Ana wishes to support Community Development Partners' ("Developer') application to receive an allocation of up to $7,500,000 in grant and loan funds through the AHSC Program for the Tiny Tim Apartments project, a 51 - unit new construction affordable housing development at 2223 W. Fifth Street in Santa Ana targeting low-income families making 30%-60% AMI, including 5 units targeting at - risk homeless families ("Project"). The Application comprises of a request not to exceed $5,000,000 as a loan for an Affordable Housing Development (AHD) ("AHSC Loan") and request not to exceed $2,500,000 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 July 17, 2017. F. The City of Santa Ana provided the Developer with a residual receipts loan in an amount not to exceed $6,000,000 in support of the Project. 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, If the application for funding is approved, and the Developer is awarded grant funds for Transportation Related Infrastructure, the City of Santa Ana will enter into a contract with the Developer to utilize those AHSC grant funds in an amount up to $2,500,000 to develop the Transportation Related Infrastructure component of the Project, which involves a bicycle boulevard treatment along Fifth Street between the Santa Ana River Trail and Raitt Street to provide improved bicycle access from the Santa Ana River Trail to Downtown Santa Ana. Section 4. 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. 2017-xxx Page 2 of 3 55D-4 ADOPTED this _ day of , 2017. Miguel A. Pulido Mayor APPROVED AS TO FORM: Sonia R. Carvalho City At e By: Ryan O. dge Assistan ity A orney 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. 2017- to be the original resolution adopted by the City Council of the City of Santa Ana on 2017. Date: Clerk of Council City of Santa Ana 55D-5 Resolution No. 2017-xxx Page 3 of 3 55D-6