CITY COMMISSION AGENDA ITEM

Department:

City Manager’s Office

Commission Meeting Date:  January 16, 2018

Staff Contact:

Diane Stoddard, Assistant City Manager

Recommendations/Options/Action Requested:

Receive the recommendations for 2017 and 2018 Housing Trust Fund applications from the Affordable Housing Advisory Board.  Direct staff to draft agreements with Tenants to Homeowners, Lawrence Habitat for Humanity and Bert Nash for 2017 and 2018 Housing Trust Fund projects, subject to the contingencies recommended by the Affordable Housing Advisory Board, if appropriate. 

Executive Summary:

The City of Lawrence has budgeted funds for 2017 and 2018 in the Housing Trust Fund to fund affordable housing projects. 

The Affordable Housing Advisory Board (AHAB) received applications for the 2017 funds at its meeting on July 10, 2017.  Two applications were received:

· Lawrence Habitat for Humanity- 2017 Habitat Workforce Housing Development - gap funding for the construction of 3 workforce housing homes

· Tenants to Homeowners, Inc. – LCHT Tiny Homes; Asset building homeowner cottages for very low-income households - gap funding for the construction of six low-cost, scattered site, one and two bedroom cottages for households earning under 40% of median income. 

The AHAB unanimously approved a recommendation to award $75,000 to Lawrence Habitat for Humanity for the construction of houses #2 and #3, contingent on a completion of the subsidy layering and gap analysis required for the use of federal HOME funds and also unanimously approved a recommendation to award $30,000 to Tenants to Homeowners for their project, contingent on a completion of the subsidy layering, gap analysis and environmental review required for the use of federal HOME funds, any city land use approvals, and changing the name to cottages instead of tiny homes. 

AHAB received applications for the 2018 funding at its December 11, 2017 meeting.  Four applications were received:

· Bert Nash Community Mental Health Center – Bridges Transitional Recovery Program – Construct 8-12 beds for rental transitional housing and mental health recovery facility (Tier II)

· Lawrence Habitat for Humanity – 2018 Habitat Workforce Housing Development – Acquire up to 14 lots for future construction and resale and Construct 2 new units and rehab 2 existing units for resale

· Tenants to Homeowners, Inc. – CRISIS Transitional Rental Acquisition – Acquire and rehab 2 or 3 units for rental transitional housing and first year of case management

· Tenants to Homeowners, Inc. – Workforce Housing Acquisition - acquire and rehab 3 units for resale

The AHAB unanimously recommended funding for the Bert Nash proposal for $495,000 to construct the Tier II transitional housing and mental health recovery facility. 

The three proposals recommended for funding are summarized below:

Lawrence Habitat for Humanity	construction of two workforce housing homes	$75,000
Tenants to Homeowners, Inc.	6 scattered site cottages for very low income	$30,000
Bert Nash Community Mental Health Center	transitional rental housing and mental health recovery facility- Tier II	$495,000
TOTAL	($300,000 from 2017 budget and $300,000 from 2018 budget)	$600,000

A letter was just received from Tenants to Homeowners, Inc. requesting that the $30,000 for the scattered site cottages project instead by applied as a $30,00 match for a grant application that Tenants to Homeowners, Inc. would submit for a rental development for very low-income tenants transitioning out of homelessness.  Based on the letter, there is a February 1 deadline that neither allows the opportunity or timing for AHAB to revisit its recommendation nor for additional timing to have the issue considered by the City Commission. Staff suggested that additional information be provided by Tenants to Homeowners outlining additional details of its proposal.  That information will be posted as it is received. 

Should the City Commission approve the recommendations from AHAB, the next step would be for staff to work with the agencies on performance agreements which will set forth the requirements for the transfer of funds.  Staff would return these agreements to the City Commission in the future for approval.

Strategic Plan Critical Success Factor

Safe, Healthy, and Welcoming Neighborhoods

Collaborative Solutions

Economic Growth and Security

Fiscal Impact (Amount/Source):

The fiscal impact to the City is $600,000.  Funds were budgeted in the 2017 ($300,000) and 2018 ($300,000) Housing Trust Fund budgets. 

Attachments:

Minutes from July 10, 2017 AHAB meeting

Minutes from the December 11, 2017 AHAB meeting

Tenants to Homeowners Letter

Reviewed By: (for CMO use only)

☐TM ☒DS ☐CT ☐BM