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Discussion on Affordable Housing Development Projects, Approval of City Financial Assistance, and Approval of Appropriation Adjustment June 20, 2017 Page 6 This project applied to the City for financial assistance through a competitive RFP process for 56 project based vouchers (PBVs) on January 31, 2017. On April 4, 2017, the Housing Authority awarded 25 project -based vouchers to the project. However, the project will need an additional 31 PBVs to be feasible and for the developer to apply for the June 28th 9 percent tax credit deadline. Planning staff have been reviewing the project since the approval of the initial 25 PBVs and the City has invested resources in the required NEPA environmental review. On May 22, the Planning Commission approved the entitlements for the project. The developer is preparing to apply for 9 percent competitive tax credits on June 28, 2017. As requested by the Ad Hoc Committee, CSG Advisors is conducting a financial gap analysis for affordable housing development funds in the event that the additional 31 PBVs are not awarded. Tiny Tim Plaza, Community Development Partners: 2223 West 5th Street The Tiny Tim Plaza project consists of a 51 -unit new construction affordable housing development targeting low-income families making 30%-60% AMI, including 5 units targeting at - risk homeless families. This development was identified as one of the projects in the queue and as such, on February 28, 2017, the Ad Hoc Committee requested a financial gap analysis be conducted to determine the financial assistance for the project. On May 18, 2017, the developer, Community Development Partners, requested that the City commit affordable housing funds during the month of June as the commitment will provide for a favorable outcome in the acquisition of land and closing of escrow tentatively scheduled for July. The developer is requesting $6 million in City financial assistance for the project. On May 24, as requested by the Ad Hoc Committee, CSG Advisors completed the financial gap analysis and determined $11.7 million as the financial gap for the project (Exhibit 8) if the developer does not receive new market tax credits, Section 8 vouchers, or other State funding. The project will apply for 4 percent non-competitive tax credits in October 2017. Currently, the project is in planning development review and anticipated to be reviewed by the Planning Commission on September 11, 2017. Planning staff estimates that the project will be agendized for City Council consideration on October 3, 2017. Additional Ad Hoc Committee Recommendations: The Ad Hoc Committee recommended that the City Council direct staff to develop a policy and criteria for the allocation of future affordable housing development funds. It is anticipated that future federal funding for affordable housing may decrease requiring the City to prioritize projects for funding. The selection criteria would include elements such as; 1) affordability, 2) number of units, 3) operating costs to tenants, and 4) gap analysis. Upon the direction of the City Council, staff will conduct research and prepare options and recommendations for City Council consideration at a later date. Regarding the availability of affordable housing development funds, the Ad Hoc recommended that staff provide the City Council with the current available funds on hand and to estimate future funding. As provided in the May 2, 2017 quarterly report of Housing division projects and