City Council Agenda Report
December 17, 2024
TO: Honorable City Council
FROM: Jesus M. Gomez, City Manager
BY: Alex Hamilton, Interim Director of Community Development Moises Mata, Senior Management Analyst
SUBJECT: AGREEMENTS TO OBLIGATE AMERICAN RESCUE PLAN ACT FUNDS FOR
AFFORDABLE HOUSING TO THE WALK
Background:
On March 10, 2021, President Biden signed the American Rescue Plan Act, (“ARPA”) into law.
Included in the ARPA legislation was the State and Local Fiscal Recovery funds, which were purposed to support state and local governments as they navigated through the impacts of the unprecedented COVID-19 pandemic.
The City received $28,046,746 in ARPA funding. Requirements and eligible uses of ARPA funds were outlined by the U.S. Department of Treasury, detailing the guidelines by which recipients are required to abide by in order to maintain compliance.
In identifying eligible uses and requirements, the funds fall under Expanded Presumptive Eligibility, permitting the City to use the funds to combat public health and negative economic impacts of the pandemic. Therefore, the funds can be used for affordable housing projects that meet certain core requirements of an expanded list of federal housing programs, such as the HOME Investment Partnerships Program (HOME).
Staff proposes to work with Primestor Development / Diversity Builders Alliance to provide funds to assist in the construction of affordable housing at The Walk Residences (The Walk). The Walk will consist of 350 residential units with 55 units being low-income. The low-income residential units will abide by all rules and restrictions set forth by the United States Department of Housing and Urban Development (HUD). The City is committed to working with Primestor Development / Diversity Builders Alliance to commit $3,850,475 to build the affordable housing units at The Walk.
City Council December 17, 2024
Agreements for Affordable Housing ARPA Funds Page No. 2 1 1
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Fiscal Impact:
There is no fiscal impact to the City’s General Fund. The project will be funded with $3,850,475 from the American Rescue Plan Act funds received by the City. ARPA Funds will be included during the mid-year budget amendments.
Citizens Advised:
N/A
Strategic Plan 2023 Implementation:
The recommended actions will further the City’s 2023 Strategic Plan Goals 2 and 3 to work in partnership with our community to achieve safe and livable neighborhoods to create and sustain a resilient and economically prosperous City.
Recommended Action:
Staff recommends City Council to authorize the City Manager to make any non-substantive minor modifications and execute all necessary agreements between the City and the Primestor Development / Diversity Builders Alliance to provide funds in the amount pf $3,850,475 towards affordable housing at The Walk, on behalf of the City, in forms approved by the City Attorney.
Attachments:
N/A