SR 06:116 - Laserfiche WebLink

Regarding the issue of CDBG subsidies, Scott Erickson clarified that several years ago approximately $100,000 yearly from the UHF was used to supplement the CDBG program. However, more recently the amount has been lower at about $50,000 yearly. The City's CDBG annual grant is modest at about $300,000, of which small amounts are used for administration and public services, with the rest being used for capital projects. The public services amount is only 15% of the total. Even for the capital projects the housing fund has stepped in to help extend the limited amount of CDBG funds. For example, housing funds have been used to fund rehab for existing housing to keep it viable. In past years, housing funds were allocated to the City's Housing Rehab Program, although that was stopped several years ago. The main use of the UHF has been to supplement funding for several housing services such as ECHO's housing counseling services, Allied Housing's case management for the Tri-Valley Housing Scholarship Program, and CRIL's housing counseling for disabled persons. Steven Bocian commented that staff also has concerns about the rental subsidy and how it would work and reminded the Commission that it previously indicated an interest in staff reviewing the matter further. Commissioner Whisnand would like to review the Commission's recommendations on this matter in light of the Commission priorities that were adopted last year. He believes that the preservation of existing below market-rate housing projects should be a priority. Commissioner Jones commented that he would place the redevelopment ofKottinger Place as the highest priority because the City can get a project going there. Chairperson Harris asked for clarification regarding the $250,000 for rental subsidies. Steven Bocian clarified that this amount of funding would create an annuity that would generate funds to subsidize units on an on-going basis. The original concept came from Ponderosa Homes relative to the Gardens at Ironwood project. Chairperson Harris noted that Ponderosa's request was aimed in part at improving their ability to lease units at the 50% AMI level. He recalled that Mark Sweeney also noted that it would also help if the minimum age were lowered from 62 to 55 to 60. Commissioner Jones asked about leveraging and if the City is locked into any mandated leveraging to access the HELP funds. Scott Erickson replied that the City committed $150,000 from the housing fund to match $450,000 from CaIHF A for the existing Down Payment Assistance program. A discussion took place regarding the prioritizing of projects for the City Council. A motion was made by Commissioner Jones, seconded by Commissioner Stark, that the Housing Commission forward to the City Council the following lists of projects that should be considered for an allocation of low income housing funds: Page - 9 -