City Council Memorandum
TO: HONORABLE MAYOR AND CITY COUNCIL DATE: JUNE 27, 2023 FROM: HOUSING AUTHORITY WARD: 1
SUBJECT: ADOPTION OF RESOLUTIONS SUPPORTING EDEN HOUSING, INC.’S FUNDING APPLICATIONS OF THE MULBERRY GARDEN FAMILY AND SENIOR APARTMENTS PROJECT, CONSISTING OF 150 FAMILY UNITS AND 59 SENIOR UNITS LOCATED AT 2524 MULBERRY STREET, TO THE STATE OF CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT MULTIFAMILY FINANCE SUPER NOTICE OF FUNDING AVAILABILITY, THE STATE OF CALIFORNIA EXCESS SITES LOCAL GOVERNMENT MATCHING GRANTS PROGRAM, THE CALIFORNIA TAX CREDIT ALLOCATION COMMITTEE, AND ANY OTHER STATE, FEDERAL, OR LOCAL GOVERNMENT SPONSORED AFFORDABLE HOUSING FUNDING OPPORTUNITIES; AND A LOAN BY THE CITY OF RIVERSIDE TO EDEN HOUSING, INC. FOR UP TO $3,000,000 IN FY 2021/2022 HOME INVESTMENT PARTNERSHIPS ACT AMERICAN RESCUE PLAN FUNDS AND UP TO $1,154,171.70 IN FY 2022/2023 HOME INVESTMENT PARTNERSHIPS ACT FUNDS ISSUES:
Adopt the following Resolutions supporting Eden Housing, Inc’s funding applications of:
Mulberry Garden Senior Apartments project, consisting of 59 housing units located at 2524 Mulberry Street, to the State of California Department of Housing and Community Development Multifamily Finance Super Notice of Funding Availability, the California Tax Credit Allocation Committee, and any other state, federal, or local government sponsored affordable housing funding opportunities, and a loan by the City of Riverside to Eden Housing, Inc. for up to $1,154,171.70 in FY 2022/2023 in HOME Investment Partnerships Act funds; and Mulberry Garden Family Apartments project, consisting of 150 housing units located at 2524 Mulberry Street to the State of California Department of Housing and Community Development Multifamily Finance Super Notice of Funding Availability, the State of California Excess Sites Local Government Matching Grants Program, the California Tax Credit Allocation Committee, and any other state, federal, or local government sponsored affordable housing funding opportunities, and a loan by the City of Riverside to Eden Housing, Inc. for up to $3,000,000 in FY 2021/2022 HOME Investments Partnerships Act American Rescue Plan funds.
RECOMMENDATIONS:
That the City Council:
Adopt the attached Resolution supporting Eden Housing, Inc.’s funding application of the Mulberry Garden Senior Apartments project, consisting of 59 units located at 2524 Mulberry Street, to the California Department of Housing and Community Development Multifamily Finance Super Notice of Funding Availability, the California Tax Credit Allocation Committee, and any other state, federal, or local government sponsored affordable housing funding opportunities, and a loan by the City of Riverside for up to $3,000,000 in FY 2021/2022 HOME Investment Partnerships Act American Rescue Plan funds; Adopt the attached Resolution supporting Eden Housing, Inc.’s funding application of the Mulberry Garden Family Apartments project, consisting of 150 units located at 2524 Mulberry Street, to the California Department of Housing and Community Development Multifamily Finance Super Notice of Funding Availability, State of California Excess Sites Local Government Matching Grants Program, the California Tax Credit Allocation Committee, and any other state, federal, or local government sponsored affordable housing funding opportunities, and a loan by the City of Riverside for up to $1,154,171.70 in FY 2022/2023 HOME Investment Partnerships Act funds; and Authorize the City Manager, or designee, to sign any documents that may be required for submittal of affordable housing funding applications for the Mulberry Garden Family and Senior Apartments Project, including making minor and non-substantive changes.
BACKGROUND:
In March 2022, the Housing Authority received an over-the-counter funding proposal from Eden Housing, Inc. (Eden), a California nonprofit corporation, for the Mulberry Gardens Family and Senior Apartments, a 209-unit family and senior affordable housing community to be located at 2524 Mulberry Street. The proposed projects will consist of 150 units of affordable family housing and 59 units of affordable senior housing.
On May 5, 2022, the State of California released the Excess Sites Local Government Matching Grants (LGMG) Program Notice of Funding Availability (NOFA). LGMG allows projects selected in accordance with Executive Order N-06-19 to apply for funds for activities to enable affordable housing developments on excess state-owned property (Excess Sites). Eden applied for LGMG funding and was awarded $6 million for the Mulberry Garden Senior Apartments.
On May 24, 2022, the City adopted a Resolution to support Eden’s application for LGMG funds with a soft commitment of $3,000,000 in HOME Investment Partnerships Act-ARP funds (HOME-ARP Funds) for the Mulberry Gardens Senior Apartments.
On January 30, 2023, the State of California released a NOFA for the Affordable Housing and Sustainable Communities (AHSC) Round 7 Program. The AHSC Program funds land-use, housing, transportation, and land preservation projects to support infill and compact development that reduce greenhouse gas (GHG) emissions.
On March 28, 2023, the City adopted a Resolution to support a joint application between the City and Eden for AHSC funds, which included a $15,000,000 grant to the City for Sustainable Transportation Infrastructure (STI) improvements and a $35,000,000 loan for the development of the Mulberry Garden Family Affordable Housing project. The City and Eden submitted an AHSC funding application and anticipate award announcements to be made in August 2023.
DISCUSSION:
On May 18, 2023, the State of California Business, Consumer Services and Housing Agency and the Department of Housing and Community Development released the 2023 Multifamily Finance Super Notice of Funding Availability (Super NOFA), with a due date of July 12, 2023. The California State Tax Credit Allocation Committee is also expected to release its next application for affordable housing tax credits later this summer.
Eden is proposing to submit applications for the following projects under the Super NOFA - Infill Infrastructure Grant Program of 2019 Program (IIG-2019), which provides grant assistance for infrastructure improvements necessary for specific residential or mixed-use infill development projects.
Project
Total Development Cost
HOME and HOME-ARP Funding Request
IIG Funding Request
Mulberry Gardens Family Apartments
$77,823,266.00
$1,154,171.70 (HOME)
$4,000,000.00
Mulberry Gardens Senior Apartments
$36,221,155.00
$3,000,000.00 (HOME-ARP)
$2,919,904.00
Totals
$114,044,421
$4,154,171.70
$6,919,904.00
The City’s Housing Authority received a HOME FY 2022/2023 funding application from Eden for $1,154,171.70 for the Mulberry Garden Family Apartments project. Staff is recommending approving Eden’s HOME funding request. Per the HOME regulations, HOME funds cannot be fully committed until all funding commitments and project underwriting is in place. Therefore, staff is recommending making a soft commitment of a HOME loan in the amount of $1,154,171.70 to Eden for the Mulberry Gardens Family Apartment in the attached Resolution (Attachment A). Staff will submit a HOME Loan Agreement for City Council’s consideration when project readiness and other project requirements set forth in the HOME Regulations and Guidelines have been met.
City staff is requesting City Council adopt the attached Resolutions in support of Eden’s funding applications to the Super NOFA, the California Tax Credit Allocation Committee, and any other state, federal, or local government sponsored affordable housing funding opportunities and a loan by the City to Eden for up to $3 million in FY 2021/2022 HOME-ARP funds for the Mulberry Garden Senior Apartments and $1,154,171.70 in FY 2022/2023 HOME funds for the Mulberry Garden Family Apartments.
STRATEGIC PLAN ALIGNMENT:
The development of the Mulberry Garden Family and Senior Apartments supports Strategic Priority 2 – Community Well-Being and Goal 2.1 to facilitate the development of a quality and diverse housing supply that is available and affordable to a wide range of income levels.
This item aligns with each of the five Cross-Cutting Threads as follows:
Community Trust – The City of Riverside has identified the need for affordable housing as a priority need in the City’s Housing Element process. The Housing Element outreach process gathered information from specific focus groups and interviews with various organizations and service providers in the housing and community development field, as well as residents of the city.
Equity – The Project ensures that all eligible persons receive equitable access to service and are served with dignity, respect, and compassion regardless of the circumstances, ability, or identity.
Fiscal Responsibility – There is no fiscal impact to the City General Fund associated with this project. This project allows the City to utilize a State budget appropriation to build low-income housing to create economic stability for extremely low-income City residents.
Innovation – The Project will allow the City to capitalize on new and changing funding sources in partnership with state programs to meet ongoing and changing needs of low-income members of the community.
Sustainability & Resiliency – The Project promotes a sustainable community and economic development and projects to encourage community engagement and resiliency.
FISCAL IMPACT:
There is no fiscal impact associated with this report.
Prepared by: Michelle Davis, Housing Authority Manager
Certified as to
availability of funds: Edward Enriquez, Assistant City Manager/Chief Financial Officer/City Treasurer
Approved by: Mike Futrell, City Manager
Approved as to form: Phaedra A. Norton, City Attorney
Attachments:
Resolution Supporting the Mulberry Garden Senior Apartments Resolution Supporting the Mulberry Garden Family Apartments Mulberry Garden Family and Senior Apartments Super NOFA Application● Page 2