HomeMy WebLinkAbout55G - RESO - AFFORDABLE HOUSING PROGRAMREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
JUNE 7, 2016
TITLE;
RESOLUTION AUTHORIZING SUBMITTAL
OF AN APPLICATION AS A JOINT
APPLICANT WITH META HOUSING
CORPORATION FOR THE AFFORDABLE
HOUSING AND SUSTAINABLE
COMMUNITIES PROGRAM
(STRATEGIC PLAN NO. 5, 3 & 6)
CITY MANAG —
RECOMMENDED ACTION
CLERIC OF COUNCIL USE ONLY:
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As Recommended
❑ As Amended
EJ Ordinance on 1a0 Reading
Ordinance on 2no Reading
® Implementing Resolution
�j Set Public Hearing For_
CONTINUED TO
FILE NUMBER
Adopt a resolution authorizing submittal of a funding application as a joint applicant with Meta
Housing Corporation for the Affordable Housing and Sustainable Communities Program in the
amount not to exceed $12,028,626 of which $7,833,126 is requested as a loan for Affordable
Housing Development and $4,195,500 is requested for a grant for Sustainable Transportation
Infrastructure Project for the Santa Ana Arts Collective Project, subject to non - substantive
changes approved by the City Manager and City Attorney.
DISCUSSION
On January 29, 2016, the California Department of Housing and Community Development
(HCD) announced the availability of approximately $320 million in funding for the Affordable
Housing and Sustainable Communities Program (AHSC), also known as the Cap & Trade
Program. The AHSC Program funds are offered through a Notice of Funding Availability (NOFA)
application that provides funding for projects that reduce greenhouse gas emissions by
supporting more compact, infill development patterns, encouraging active transportation and
transit usage, and protecting agricultural land from sprawl development. Funding for the AHSC
Program is provided from the Greenhouse Gas Reduction Fund, an account established to
receive the California Cap- and -Trade Program auction proceeds.
Meta Housing Corporation (Developer) successfully submitted a concept proposal in March 2016
and was invited to submit a full application by June 20, 2016. The Developer's full application for
AHSC funds is for $12,028,626, of which $7,833,126 is requested as a loan for an Affordable
Housing Development (AHD) (AHSC Loan) and $4,195,500 is requested for a grant for Housing -
Related Infrastructure (HRI), Sustainable Transportation Infrastructure (STI), Transit - Related
Amenities (TRA) or Program (PGM) activities (AHSC Grant).
55G -1
Resolution — AHSC Program Application
June 7, 2016
Page 2
The AHSC Loan will be for the Santa Ana Arts Collective project (Project), which will adaptively
reuse an existing commercial building at 1666 N. Main Street in Santa Ana with new construction
to develop a mixed -use, multi - family affordable housing community consisting of 57 affordable
units, with a community arts gallery, an art garden on the ground floor, a maker space, digital
and media lab, music room, performing arts room, and activity programs (Exhibit 1). The Project
will be one of the first projects under the City's new adaptive reuse ordinance and the first
affordable housing complex with an artist preference.
The AHSC Grant will be for the development's STI and TRA portion of the project which is a
bicycle boulevard treatment along Bush Street between 17th Street and Civic Center Drive. A
bicycle boulevard provides a bicycle friendly low- stress alternative to Main Street and a crucial
connection to Downtown Santa Ana. If awarded funding from the State for the AHSC Grant,
staff will recommend to City Council to acknowledge the grant funds and enter into a contract
with Meta Housing Corporation to utilize the grant funds to construct the transportation related
infrastructure for the Santa Ana Arts Collective Project, subject to non - substantive changes
approved by the City Manager and City Attorney.
The Project proposal is consistent with the goals set forth in the Southern California Association
of Government's 2012 -2035 Regional Transportation Plan /Sustainable Communities Strategy,
which places great importance on sustainable and smart growth, as well as the interconnectivity
of land use and transportation planning.
On November 3, 2015, the City Council awarded a pre -loan commitment to the Developer of
Inclusionary Housing Funds, Community Development Block Grant (CDBG) and HOME
Investment Partnership Program (HOME) funds, not to exceed $4,635,000. In February 2016,
City Council approved the loan agreement for the Inclusionary Housing Funds and CDBG funds
with affordable housing restrictions in place for fifty -five years. The Santa Ana Arts Collective
Project was approved by the Planning Commission on May 9, 2016 with approval of Variance
No. 2016 -04. On June 7, 2016, the City Council will receive and file the Planning Commission's
approval.
STRATEGIC PLAN ALIGNMENT
Approval of this item assists the City in meeting Goal #5 - Community Health, Livability,
Engagement & Sustainability, Objective #3 (Facilitate diverse housing opportunities and support
efforts to preserve and improve the livability of Santa Ana neighborhoods) and Objective #6
(Focus projects and programs on improving the health and wellness of all residents).
FISCAL IMPACT
There are no fiscal impacts associated with this item at this time. Contingent on the award of
funds, the resolution authorizes the City Manager to enter into a Standard Agreement with the
55G -2
Resolution —AHSC Program Application
June 7, 2016
Page 2
State of California in a total amount not to exceed $12,028,626 in order to secure the AHSC
Program Funds from the State.
Robert C. Cortez
Special Assistant to the City Manager
City Manager's Office
JB /NV
Exhibits: 1. Location Map
2. Resolution
55G -3
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55G -6
ROH — 06/07/16
RESOLUTION NO. 2016 -xxx
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SANTA ANA AUTHORIZING THE SUBMITTAL OF AN
APPLICATION FOR FUNDING UNDER THE AFFORDABLE
HOUSING AND SUSTAINABLE COMMUNITIES
PROGRAM AS JOINT APPLICANTS WITH META
HOUSING CORPORATION, AND, IF AWARDED,
AUTHORIZING THE CITY TO ENTER INTO A CONTRACT
WITH DEVELOPER UTILIZING THE GRANT FUNDS TO
CONSTRUCT THE TRANSPORTATION RELATED
INFRASTRUCTURE FOR THE SANTA ANA ARTS
COLLECTIVE PROJECT
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA, AS
FOLLOWS:
Section 1. The City Council of the City of Santa Ana hereby finds, determines
and declares as follows:
A. The Strategic Growth Council's ( "SGC ") Affordable Housing and
Sustainable Communities ( "AHSC ") Program funds land -use, housing, transportation,
and land preservation projects to support infill and compact development that reduces
greenhouse gas ( "GHG ") emissions. These projects facilitate the reduction of the
emissions of GHG's by improving mobility options and increasing infill development,
which decrease vehicle miles traveled and associated greenhouse gas and other
emissions, and by reducing land conversion, which would result in emissions of
greenhouse gases.
B. On January 29, 2016, the Department of Housing and Community
Development ( "HCD ") announced availability of approximately $320 million in funding
for the AHSC Program, also known as the Cap & Trade Program.
C. The State of California, SGC, and HCD issued a Notice of Funding
Availability ( °NOFA ") dated January 29, 2015, under the AHSC Program, established
under Division 44, Part 1 of the Public Resources Code, commencing with Section
75200. Funding for the AHSC Program is provided from the Greenhouse Gas
Reduction Fund, an account established to receive Cap- and -Trade auction proceeds.
D. SGC is authorized to approve funding allocations for the AHSC Program,
subject to the terms and conditions of the NOFA, Program Guidelines, Application
Package, and Standard Agreement. HCD is authorized to administer the approved
funding allocations of the AHSC Program.
Resolution No. 2016 -xxx
Page 1 of 3
Mill
E. The City of Santa Ana wishes to support Meta Housing Corporation's
( "Developer") application to receive an allocation of $12,028,626 in grant and loan funds
through the AHSC Program as joint applicants of the Santa Ana Arts Collective project,
a mixed -use, multi- family, adaptive reuse and new construction affordable housing
development. The Application comprised of $7,833,126.00 is requested as a loan for an
Affordable Housing Development (AHD) ( "AHSC Loan ") and $4,195,500.00 is requested
for a grant for Housing - Related (HRI), Sustainable Transportation Infrastructure (STI),
Transit - Related Amenities (TRA) or Program (PGM) activities ( "AHSC Grant ") as
defined the AHSC Program Guidelines adopted by SGC on December 17, 2015.
F. If the application is approved, the City is hereby authorized and directed to
enter into, execute, and deliver a State of California Standard Agreement in a total
amount not to exceed $12,028,626 ($7,833,126 for the AHSC Loan and $4,195,500 for
the AHSC Grant), and any and all other documents required or deemed necessary or
appropriate to secure the AHSC Program funds for the Department, and all
amendments thereto (collectively, the "AHSC Documents ").
G. The City of Santa Ana provided the Developer with a residual receipts
loan in an amount not to exceed $4,635,000 in support of the development.
Section 2. The City Manager, or his designee, is authorized and empowered
to execute in the name of the City of Santa Ana all necessary applications, contracts,
payment requests, agreements, amendments or any other documents related to, and in
furtherance of, the Developer's application for the purposes of securing funds and to
carry out the purposes specified in the AHSC application and agreement.
Section 3. This Resolution shall take effect immediately upon its adoption by
the City Council, and the Clerk of the Council shall attest to and certify the vote adopting
this Resolution.
Resolution No. 2016 -xxx
Page 2 of 3
55G -8
ADOPTED this _ day of June, 2016.
Miguel A. Pulido
Mayor
APPROVED AS TO FORM:
Sonia R. Carvalho
City Attorney
By.
Ij Ryan O. Hodge
Assistant City Attorney
AYES: Councilmembers
NOES: Councilmembers
ABSTAIN: Councilmembers
NOT PRESENT: Councilmembers
CERTIFICATION OF ATTESTATION AND ORIGINALITY
I, MARIA D. HUIZAR, Clerk of Council, do hereby attest to and certify the attached
Resolution No. 2016- to be the original resolution adopted by the City Council of
the City of Santa Ana on June 2016.
Date:
Clerk of Council
City of Santa Ana
55G -9
Resolution No. 2016 -xxx
Page 3 of 3
55G -10