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HomeMy WebLinkAbout16 - Work Force Housing Reward Grant ApplicationCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 16 February 22, 2005 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Planning Department Jaime Murillo, Assistant Planner (949) 644- 32091murillo (c�city.newport- beach.ca.us SUBJECT: Work Force Housing Reward Grant Application ISSUE: Should the City Council authorize the execution of a Standard Agreement and any other documents necessary to secure a Workforce Housing (WFH) grant from the State Department of Housing and Community Development (HCD)? RECOMMENDATION: Adopt Resolution 2005 -_ authorizing the City of Newport Beach to apply for and receive WFH grant funds, and execute the contract and any other required documents. DISCUSSION: Background Pursuant to the Housing and Emergency Shelter Trust Fund of 2002 (Proposition 46), the State has developed a Workforce Housing (WFH) Reward Grant Program designed to reward cities and counties for the approval of new affordable housing. The program provides grants for capital asset projects to eligible applicants that have approved rental and ownership developments affordable to very low- and low- income households through the 2004 calendar year. Additionally, the program will continue to fund reward grants to cities and counties who continue to approve additional affordable housing units over the next 3 years. The WFH grant amount is calculated based on the number of bedrooms in approved and permitted affordable developments. An amount of $2,000 dollars per bedroom will be awarded for each very low- income unit approved and $1,500 WORK FORGE HOUSING REWARD GRANT 02/22/05 Page 2 dollars per bedroom for each low- income unit approved. An additional bonus of $150 dollars per bedroom will be awarded for each very low- income unit and $100 per bedroom for each low- income unit is available for jurisdictions that meet a specified percentage of the Regional Housing Need Assessment (RHNA). Eligibility Only cities and counties that meet specific eligibility requirements may apply for the WFH Grant funds. The three threshold requirements include: 1) Housing Element Compliance, 2) submittal of Annual Progress Report on Housing Element, and 3) final land use approval and building permits issued on or after January 1, 2004 for units affordable to very low- and low- income households. These requirements have been met by the City of Newport Beach as follows: 1) The City's Housing Element was adopted on August 12, 2003 and has been reviewed and found in compliance by State HCD on September 15, 2003. 2) The City's Annual Housing Element Progress Report for fiscal year 03 -04 was received and filed by the City Council on October 12, 2004 and forwarded to State HCD. The report was received by HCD on October 18, 2004. 3) Staff has determined that the recently approved 120 -unit Bayview Landing Senior Affordable Housing project qualifies as an eligible project under this program. With the exception of the one manager's unit, all of the units will be made affordable to either very-low or low- income senior households. Per the WFH Program Guidelines, final land use approval for the project was granted on September 10, 2004 when final plan check approval was granted for the project. Building permits for the construction of the project were issued on December 7, 2004. Anticipated Award As a result of the Bayview Landing Senior Affordable Housing project, staff has calculated that the City could receive a total possible reward in the amount of $243,150 dollars (including the RHNA bonus). However, in the event that statewide eligibility for funds exceeds the amount of funding availability for this program, HCD will reduce rewards to all grantees proportionally. The WFH Program requires grant funds to be used for capital asset projects that benefit the community and add to the community's quality of life. As part of the application, the City is required to identify a specific capital asset project on which the City intends to use these funds. After consultation with the City Manager's Office, Public Works Department, and Recreation and Senior Services Department, Staff is proposing that the reward grant be utilized to help with the funding shortfall of the Mariner's Park facilities improvement project. WORK FORCE HOUSING REWARD GRANT 02/22/05 Page 3 The construction of the new library has resulted in the adjustment of property lines and a reconfiguration of the park facilities. The scope of the project includes reconstruction of the park with the new planned entry and parking, restroom building, new configuration of the ball fields, new irrigation plan, and demolition of the old library building. The project is expected to begin in Fall of 2006 as soon as the new library is fully operational. Prepared by: Jaime Murillo Assistant Planner Attachment: Resolution 2005- Submitted by: Sharon Z. Wood Assistant City Manager F: \USERS\PLN \Shared \jmurillo \Housing Docs \Grants \WFH Reward GrantN022205CCrpt.doc Attachment A Draft Resolution No. 2005- RESOLUTION 2005- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH AUTHORIZING THE EXECUTION OF A STANDARD AGREEMENT AND ANY AMENDMENTS THERETO, AND ANY OTHER DOCUMENTS NECESSARY TO SECURE A WORKFORCE HOUSING REWARD GRANT FROM THE STATE OF CALIFORNIA, DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT. WHEREAS, the City of Newport Beach, a city within the State of California, applied for and will submit the Application Package released December 2004 by the State Department of Housing and Community Development (HCD) for the Work Force Housing (WFH) Reward Grant Program; and WHEREAS, funding for WFH grant program has been made available pursuant to the Housing and Emergency Shelter Trust Fund of 2002 (Proposition 46); and WHEREAS, pursuant to the statute, HCD is authorized to approve funding allocations for the program, subject to the terms and conditions of the NOFA and the Program Guidelines, Application Package and Standard Agreement. NOW, THEREFORE, BE IT RESOLVED SECTION 1: The City of Newport Beach shall be subject to the terms and conditions as specified in the standard agreement (Contract). Funds are to be used for allowable capital asset project expenditures to be identified in Attachment A of the Contract. The application in full is to be incorporated as part of the Contract and any and all activities funded, information provided, and timelines represented in the application are enforceable through the Contract. The City of Newport Beach hereby agrees to use the funds for an eligible capital asset in the manner presented in the application as approved by the HCD and in accordance with the NOFA and Program Guidelines and Application Package. The City of Newport Beach also may execute any and all instruments required by HCD for participation in the WFH Program. SECTION 2: The City of Newport Beach authorizes Sharon Z. Wood, Assistant City Manager, and /or her designee(s) to execute in the name of the City of Newport Beach the Application Package, the Standard Agreement, and all other documents required by HCD for participation in the WFH Program. PASSED, APPROVED AND ADOPTED THIS 22ND DAY FEBURARY, 2005. AYES, COUNCIL MEMBERS NOES, COUNCIL MEMBERS ABSENT COUNCIL MEMBERS MAYOR ATTEST: CITY CLERK