Transcript Bad Weather Shelter Update

Housing and Career Services Department
CITY COUNCIL
Housing Grant Agreement
Community Arms, LP
Security Upgrades Project
James Wong, Senior Project Planner
August 15, 2016
Recommendation
Housing and Career Services Department
• Find that the Community Arms security upgrades
project does not have a significant environmental
effect and is categorically exempt under CEQA
“Existing Facilities”
• Approve key business terms of Housing Grant
Agreement with Community Arms LP (“Owner”)
• Approve carry forward of $420K PY 2015 HOME
funds and amend Housing Dept’s FY 2017 budget
by appropriating $43K Inclusionary funds
• Authorize City Manager to enter into Housing
Grant Agmt with Owner in amount of $463K
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Background
Housing and Career Services Department
• Community Arms is a 133-unit apartment complex
located at 151 E. Orange Grove Blvd, built in
1973 as a HUD very low income rental project
• Owned by Community Arms LP, formed in 2002
• The General Partner of the LP is Community Bible
Community Development Corp, a nonprofit
housing organization
• In 2014, Owner submitted a CDBG funding
application in the amount of $50,000 to purchase
and install a security camera system
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Background
Housing and Career Services Department
• The 2014 CDBG application was not funded, but
Housing Dept. commenced efforts with Owner
and Police Dept. to develop a comprehensive
program of site upgrades to enhance the safety
and security of the residents at Community Arms
and of the surrounding neighborhood
• After numerous discussions and site visits over an
18-month period, Owner submitted an updated
funding proposal in January 2016 and a revised,
final proposal in early-August 2016
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Background
Housing and Career Services Department
Project Budget
Security Upgrade
Camera System
Lighting
Gates, Fencing
Amount
$ 93,000
$ 90,000
$ 60,000
Electrical
Landscaping
Contingency
$ 65,000
$ 55,000
$ 36,000
Project Management
TOTAL
$ 64,000 (14% max)
$463,000
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Background
Housing and Career Services Department
• City funds are proposed to be structured as a
grant to facilitate Owner’s plans to restructure the
LP ownership entity and refinance existing debt
• Funding will not exceed $463,000: $420,000
federal HOME and $43,000 Inclusionary funds
• Section VII of Inclusionary Housing Regulations
provides that Inclusionary funds may be used to
provide financial assistance for, among other
things, the rehabilitation of low and moderate
income affordable housing.
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Background
Housing and Career Services Department
• On 3/14/16 City Council approved the allocation
of $420,000 PY 2015 HOME funds for the project
• The deadline for City and Owner to enter into the
Housing Grant Agreement is 8/31/16, otherwise,
$420K HOME funds will be recaptured by HUD.
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Grant Agreement-Key Terms
Housing and Career Services Department
• City grant funding shall not exceed $463,000
• Scope of work: installation of security camera
system; gates, gate control and fencing; security
lighting; landscaping; and project management.
• City shall disburse funds subject to approval of
Owner’s monthly draw requests based on certified
vendor invoices for work and materials
• Four-month schedule of performance
• Project shall be subject to City’s local hiring policy
• Compliance with federal HOME regulations
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