Agenda Item #12.4
For Council Meeting of: January 24, 2023
CITY OF SANTA ROSA
CITY COUNCIL
TO: MAYOR AND CITY COUNCIL
FROM: NICOLE DEL FIORENTINO, HOUSING AND COMMUNITY SERVICES MANAGER, HOUSING TRUST
HOUSING AND COMMUNITY SERVICES
SUBJECT: MODIFICATION TO THE APPROPRIATION OF THE STATE OF CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT’S INFILL INFRASTRUCTURE GRANT PROGRAM FUNDS FOR THE DOWNTOWN SANTA ROSA QUALIFIED INFILL AREA FOR THE CAPITAL IMPROVEMENT PROJECT PORTION OF THE GRANT AGENDA ACTION: RESOLUTION
RECOMMENDATION
It is recommended by the Housing and Community Services and Transportation and Public Works Departments that the Council, by resolution, authorize a modification to the appropriation of the State of California Department of Housing and Community Development’s Infill Infrastructure Grant funds in the amount of $1,072,050 from the Housing Grant Fund 2282 to the City General Fund 1100 for the Capital Improvement Project portion of the grant.
EXECUTIVE SUMMARY
In August 2021, the City submitted an application to the California Department of Housing and Community Development’s (HCD) Infill Infrastructure Grant (IIG) Program for funding associated with a Qualified Infill Area (QIA) designated the “Downtown Santa Rosa –QIA,” which incorporated housing projects located within downtown Santa Rosa and improvements to 3rd and B streets. In December 2021, HCD awarded IIG funding of $9,540,147 to the City for four housing projects - Caritas Homes Phase I, the Cannery at Railroad Square, 1 Santa Rosa Avenue and 425 Humboldt Street (total $8,468,097); and one Capital Improvement Project for improvement to 3rd and B Streets (total $1,072,050). On June 7, 2022, via Resolution RES-2022-110, the Council accepted the grant and appropriated $9,540,147 to Housing Authority Fund 2282- Housing Grant Fund, Charge Key 42145 “Infill Infra Grant Program.” Upon further review by the City’s Finance Department, it was determined that the Capital Improvement Project portion of the grant must be appropriated separately to the General Fund, rather than included with the four housing projects in the Housing Authority Fund.
BACKGROUND
In May 2021, HCD released the Infill Infrastructure Grant (IIG) Program Notice of Funding Availability (NOFA) for approximately $160 million. IIG Guidelines required the grant applicant to be either a city, county or public housing authority with jurisdiction of the area. The Renewal Enterprise District (RED), in coordination with City staff, developed the application for a QIA project area in downtown Santa Rosa, encompassing several housing developments with at least 15% affordable units for a minimum of 55 years as shown in the table below.
In May 2022, HCD awarded the City $9,540,147 for four housing projects within the Downtown Santa Rosa QIA, as well as the Capital Improvement Project at 3rd and B street to construct a right turn pocket and lane. The grant awards for each project are shown below.
Project Name
Total Units
Infill Infrastructure Grant Unrestricted Units
Infill Infrastructure Grant Restricted Units
IIG Funding
Caritas Phase I
64 1
63 $1,993,392
Cannery at Railroad Square
129
59 70
$3,911,000
One Santa Rosa
120
116
4 $930,397
425 Humboldt
52 52
0 $1,693,308
CIP 3rd & B
n/a
n/a
n/a
$1,072,050
Total
365
228
137
$9,540,147
At the June 7, 2022 meeting, via resolution no. RES-2022-110, the Council accepted and appropriated $9,540,147 of IIG funds to Housing Grant Fund 2282, Charge Key 42145 “Infill Infra Grant Program.” Upon further review of the grant and financial reporting requirements, the City’s Finance Department determined that the funding for the Capital Improvement Project at 3rd and B street needed to be appropriated into the City General Fund 1100, rather than Housing Grant Fund 2282.
PRIOR CITY COUNCIL REVIEW
On August 3, 2021, the Council, by Resolution No. RES-2021-136 authorized submittal of the IIG application to HCD for up to $30M and authorized the City Manager to execute the IIG program Standard Agreement, any amendments or modifications, and any and all related documents necessary to attain the grant, subject to approval to form by the City Attorney.
On June 7, 2022, the Council, by Resolution No. RES-2022-110, accepted the IIG and appropriated $9,540,147 of IIG funding to Housing Grant Fund 2282, Charge Key 42145 “Infill Infra Grant Program.”
ANALYSIS
IIG funding of $8,468,097 for the four housing projects has been correctly accepted and appropriated in Housing Grant Fund 2282.
In order to use the Capital Improvement Project portion of the grant for its intended purpose at 3rd and B street to construct a right turn pocket and lane, the Council must appropriate $1,072,050 into the General Fund.
FISCAL IMPACT
Approval of this action increases appropriations to the City General Fund by $1,072,050 and decreases appropriations to Housing Grant Fund 2282 by the same amount.
ENVIRONMENTAL IMPACT
This action is exempt from the provisions of the California Environmental Quality Act (CEQA) under CEQA Sections 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
Attachment 1 – Resolution RES-2022-110
Resolution
CONTACT
Nicole Del Fiorentino, Housing and Community Services Manager-Housing Trust [email protected] MODIFICATION TO THE APPROPRIATION OF THE STATE OF CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT’S INFILL INFRASTRUCTURE GRANT PROGRAM FOR THE DOWNTOWN SANTA ROSA QUALIFIED INFILL AREA PAGE 3 OF 3