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 Bethani Cardenas, Housing Manager
Rosio Medina, Senior Management Analyst
Moises Mata, Senior Management Analyst
SUBJECT: AGREEMENTS FOR HOME INVESTMENT PARTNERSHIP PROGRAM,
COMMUNITY HOUSING DEVELOPMENT ORGANIZATION, HOME
INVESTMENT PARTNERSHIP PROGRAM AMERICAN RESCUE PLAN AND
AMERICAN RESCUE PLAN ACT
Background:
HOME Investment Partnership, Community Housing Development and HOME American Rescue Plan Act:
The City receives HOME Investment Partnership Program (HOME) funding from the United States Department of Housing and Urban Development (HUD). The funds must be used to provide decent, affordable housing to low-income households. City Council has allocated prior years HOME entitlement funds and Community Housing Development Organization (CHDO) set aside funds and program income funds for affordable housing projects.
On February 13, 2023, the Housing and Neighborhood Development Division issued a Request for Proposal (RFP) for affordable housing projects (RFP No. 23-714). The RFP offered approximately $1,000,000 in HOME entitlement and CHDO set-aside funding for the purpose of preserving, improving, or developing affordable housing. Preference was given to project proposals that provide priority for Norwalk Homeless Veterans and their families, and result in affordable housing for Norwalk families (households of two or more individuals).
On March 7, 2023, City Council adopted the HOME Investment Partnership Program American Rescue Plan (HOME ARP) Allocation Plan. HOME ARP funds are to provide housing, services, and shelter to individuals experiencing homelessness and other vulnerable populations.
City Council December 17, 2024
Agreements for HOME, CHDO, HOME ARP and ARPA Page No. 2 1 1
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On May 1, 2023, the Housing and Neighborhood Development Division issued a Request for Proposal (RFP) for affordable housing projects (RFP No. 23-744). The RFP offered approximately $1,000,000 in HOME-ARP funding for an affordable housing project that would assist individuals and families who are homeless, at risk of homelessness, or in other vulnerable populations.
American Rescue Plan Act:
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 the 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 HOME.
Project Description:
The Walk Residences (The Walk) proposed by Primestor Development and Diversity Builders responded to the RFP and was selected to enter into an Agreement. The Development Agreement was approved by City Council on October 18, 2022. The Walk is a 56 unit restricted housing development. Fifty-five of the units will be income-restricted to homeless and low- income households, making 30% to 80% of area median income. All residents will have access to the onsite amenities and access to the social and supportive services offered at the property.
No additional fees or rent will be requested from the tenants. The affordable housing building is a component of a larger mixed-use development known as the Norwalk Entertainment District that will feature 371 residential units and community serving commercial space. The Walk makes up a component of the 371 overall units and has its own financing and building amenities.
Staff proposes to commit funds to Primestor Development / Diversity Builders Alliance, a CHDO, for the development of The Walk Project and allocate HOME entitlement, HOME CHDO reserve, HOME ARP and ARPA as follows:
Funds Amount
HOME CHDO Reserve FY21, FY22, FY23 $151,763.85
HOME Entitlement FY19, FY20, FY21, FY22 $848,236.15
HOME ARP Entitlement FY21 $1,047,149.00
ARPA $3,850,475.00
TOTAL: $5,897,624.00
City Council December 17, 2024
Agreements for HOME, CHDO, HOME ARP and ARPA Page No. 3 1 1
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Fiscal Impact:
There is no fiscal impact to the City’s General Fund. The HOME and HOME ARP programs are funded solely by the United States Department of Housing and Urban Development. The ARPA funds are provided 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 approve agreements with Primestor Development / Diversity Builders Alliance to provide The Walk, an affordable housing development, utilizing funds in the amount of $2,047,000 in HOME Investment Partnership, Community Housing Development Organization, and HOME Investment Partnership Program American Rescue Plan and $3,850,475 in American Rescue Plan Act; and authorize the City Manager to execute the agreements on behalf of the City, in forms approved by the City Attorney.
Attachments:
N/A