Agenda Item #12.5
For Council Meeting of: August 23, 2022
CITY OF SANTA ROSA
CITY COUNCIL
TO: MAYOR AND CITY COUNCIL
FROM: MEGAN BASINGER, DIRECTOR
HOUSING AND COMMUNITY SERVICES
SUBJECT: SUBMITTAL OF AN APPLICATION TO THE STATE OF CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT’S INFILL INFRASTRUCTURE GRANT PROGRAM FOR AN AMOUNT NOT TO EXCEED $22 MILLION FOR A QUALIFIED INFILL AREA AGENDA ACTION: RESOLUTION
RECOMMENDATION
It is recommended by the Housing and Community Services and the Transportation and Public Works Departments, in conjunction with the Renewal Enterprise District, that the Council, by resolution: 1) approve the submittal of a grant application to the State of California Department of Housing and Community Development’s Infill Infrastructure Grant Program in an amount not to exceed $22 million for a Qualified Infill Area – 2022 Santa Rosa Infill QIA; and 2) authorize the approval and execution of a Standard Agreement and any amendments thereto and any other necessary documents related to the grant.
EXECUTIVE SUMMARY
The Renewal Enterprise District (RED) has coordinated and prepared an application to the California Department of Housing and Community Development’s (HCD) Infill Infrastructure Grant (IIG) Program for up to $22 million in infrastructure associated with a Qualified Infill Area (QIA) known as the “2022 Santa Rosa Infill QIA.” The QIA incorporates projects located within the greater downtown area. The IIG funds for capital improvements will be dedicated to improvements at Martin Luther King Jr. Memorial (MLK) Park in the South Park neighborhood. The QIA’s identified units must include at least 15% of the units as affordable through regulatory restrictions.
BACKGROUND
In June 2022, HCD released the Infill Infrastructure Grant (IIG) Program Notice of Funding Availability (NOFA) for approximately $160 million; IIG Guidelines require the applicant for a QIA to be either a city, county or public housing authority with jurisdiction of the area. The RED, in coordination with City staff, has developed an application for a QIA that incorporates several development projects in the greater downtown area.
As required by the IIG NOFA, the proposed QIA incorporates several proposed housing developments that will incorporate at least 15% affordable units for a minimum of 55 years. Awarded funds are used to pay the costs of the infrastructure associated with the units. The projects that are included in the QIA are:
Project
Total Units
Market Rate Units
Affordable Units
1 Ponderosa Village
50 1
49 2
556 Ross Street Apartments
118
118
0 3
Bennett Valley Apartments
61 0
61 4
Caritas Homes Phase II
63 0
63 5
Downtown Station Phase I
114
105
9 6
Pullman Phase III
44 38
6 450
262
188
HCD’s IIG Guidelines require the City to submit the application for up to $22 million in capital infrastructure improvements associated with the QIA, as the City has jurisdiction over the development sites. Receipt of the grant funds from HCD will provide funding that does not require repayment and contributes to the financing for the projects identified in the QIA.
PRIOR CITY COUNCIL REVIEW
Not applicable.
ANALYSIS
Pursuing this grant opportunity and being awarded up to $22 million in IIG funds will assist with the construction of infrastructure associated with 450 new housing units, including 173 units affordable to households at or below 60% of AMI, and will assist the City in meeting the following goals:
Meet housing needs – assist with financing construction of 450 housing units; and Invest in and sustain infrastructure and transportation – construct infrastructure improvements associated with the QIA.
The submittal of the grant application to HCD allows the City to compete for resources needed to construct the infrastructure that benefits market rate and affordable housing units. If the application is not submitted or if the application is not awarded funds, the timelines for the identified residential developments may be delayed, and the developers may be required to seek other financial resources to construct the projects.
If the grant funds are awarded, the funds will be distributed as work is completed in the QIA. Program guidelines require that the housing units begin construction within two (2) years of grant award and that construction of the housing units is completed within three (3) years of award. The developers of the identified housing projects have indicated that it will be able to meet HCD’s timeliness requirements. The City will not be held liable for the construction and continued operation of the housing units.
FISCAL IMPACT
Approval of this action does not have a fiscal impact on the General Fund.
ENVIRONMENTAL IMPACT
This action is exempt from the provisions of the California Environmental Quality Act (CEQA) under CEQA Guidelines Section 15061(b)(3) and 15378 in that there is no possibility that the implementation of this action may have significant effects on the environment, and no further environmental review is required.
BOARD/COMMISSION/COMMITTEE REVIEW AND RECOMMENDATIONS
Not applicable.
NOTIFICATION
Not applicable.
ATTACHMENTS
Resolution
CONTACT
Megan Basinger, Director
Department of Housing and Community Services
[email protected]
SUBMITTAL OF AN APPLICATION TO THE STATE OF CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT’S INFILL INFRASTRUCTURE GRANT FOR AN AMOUNT NOT TO EXCEED $22 MILLION FOR A QUALIFIED INFILL AREA PAGE 3 OF 3