ADMINISTRATIVE REPORT
MEETING DATE: January 8, 2025 AGENDA CATEGORY: Consent - Agreements TO: Honorable Mayor and City Council
FROM: Jennifer M. Byers
DATE: December 19, 2024
SUBJECT: Agreement with Golden Empire Affordable Housing, Inc. ($738,363) for the Development of Affordable Housing
at 1209 M Street, Bakersfield, 93301 (Ward 2)
RECOMMENDATION:
Staff recommends approval of the agreement.
BACKGROUND:
The City of Bakersfield supports affordable housing development by providing gap financing to projects that need a subsidy to operate at rents affordable to low -income households. This financing enables developers to build quali ty, affordable housing, which in turn reduces rental cost to families in the community who spend a disproportionately high amount of their income on housing.
The American Rescue Plan (HOME -ARP) Program was signed into law by President Biden in 2021, appropriating $5 billion in HOME-ARP funds to assist individuals or households who are homeless, at risk of homelessness, or in other vulnerable populations, with provision of affordable housing and supportive services. Of this funding, the City of Bakersf ield received $5,458,039 from the 2021 HOME-ARP Program to reduce homelessness and increase housing stability for qualifying low-income households.
On November 10, 2023, the City of Bakersfield posted a public notice for the Notice of Funding Availability (NOFA) for 2021 HOME-ARP Program funding for the development of new affordable housing projects. As a result of a ranking and review panel by City staff of the project applications submitted under the HOME- ARP NOFA, the M Street Housing development is being recommended for a HOME-ARP award of $738,363 for the purposes of providing a construction loan to Golden Empire Affordable Housing, Inc. for the infill development of a new affordable housing fourplex located at 1209 M Street, Bakersfield, 93301 (Ward 2).
All principal and interest accrued from this construction loan will be returned to the City and added as revenue to the City’s Affordable Housing Trust Fund. This project helps the City of Bakersfield in meeting its affordable housing needs for extrem ely low, very low, and low -income residents. The project aligns with the City of Bakersfield's high -priority City Council Goal of improving the quality of life for residents by increasing the inventory of affordable housing units, and the City’s 2025 Conso lidated Plan goal of providing decent and affordable housing for residents.
FISCAL IMPACT:
No fiscal impact. This project is funded by the Federal HOME-ARP Program.
COUNCIL GOAL:
Community Character & Quality of Life
ATTACHMENTS:
Agreement with Golden Empire Affordable Housing, Inc. ($738,363) for the Development of Affordable Housing