PURPOSE

The purpose of this item is to request City Council authorization to apply for funds under the Department of Housing and Community Development, Workforce Housing Incentive Program (�Grant Program�) to provide funding for the proposed childcare facility and family resource center at the former Buena Vista library and further requests that the Redevelopment Agency Board approve a resolution authorizing acceptance of the Grant Program funding.

DISCUSSION

The California Department of Housing and Community Development recently released a Notice of Funding Availability for a total of $23 million[1], comprised of $20 million for the Grant Program and $3 million for the Jobs Housing Balance Incentive Grant Program bonus. The Grant Program is designed to encourage cities and counties to develop new residential housing while rewarding those jurisdictions that approve housing for low-income households and are in compliance with State Housing Element Law.  The Grant Program provides funding for projects that benefit the community as a whole and add to the community�s quality of life which can be used for a variety of projects including those related to safety, education, and recreation.  The Grant Program will provide a bonus for those jurisdictions that were successful in the 2003 Jobs Housing Balance Incentive Grant Program, and also meet the requirements of the Grant Program. 

Eligibility Criteria

This award program does not use a competitive process to award funds; all cities and counties who meet the eligibility requirements will be funded.  Only cities and counties are eligible to apply to the Grant Program.  There are three threshold requirements:

�        Housing Element Compliance:  The applicant must be in compliance as of December 31 of the award year.  The Housing Element must be adopted and found in compliance by the Department by December 31, 2004.

�        Annual Housing Compliance: Government Code Section 65400 requires every city and county to submit reports to the Department of Housing and Community Development on the jurisdictions progress in implementation of the Housing Element.  To be qualified to apply for the grant, an applicant must submit the annual report for the prior calendar year (2003) to the Department before October 31, 2004.

�        Approval of newly constructed residential permits with low- and very low-income affordable housing restrictions during 2004: The applicant must submit verification of final land use approval and building permits issued on or after January 1, 2004, including confirmation of the number of the new units, as well as the bedroom count for each unit.

The City meets the eligibility requirements and will be funded based on the number of eligible housing units on a per-bedroom basis.  The City will receive its funds based on the Agency-assisted, Independent Living Facility Project.  This Project was issued its final building permit in 2004 for the construction of an eighteen (18)-unit independent living complex for very low-income persons with disabilities (excludes managers unit).  A total of twenty (20) bedrooms will be eligible based on these criteria.  

Award Calculations

Twenty-three million dollars of Grant Program funds, comprised of $20 million for the Grant Program and an additional $3 million for bonus awards to Job Housing Balance Initiative Program grantees², are available for the 2004 program year. 

Funds will be awarded on a per-bedroom basis for each residential unit approved for all units initially restricted to low- and very-low income households.  Award amounts will be greater for units affordable to very low-income households.  Awards will be distributed on the following basis:

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2 The City of Burbank was a Job Housing Balance award recipient in 2003. The City received $397,000 for the Cottages Childcare Facility.

�        $2,000 per bedroom for each unit affordable to very low-income households, and;

�        $1,500 per bedroom for each unit affordable to low-income households.

�        In addition, the Job Housing Balance Initiative Program bonus will provide an additional $500 per bedroom for each low- or very-low income unit for applicants who qualified and were awarded the bonus in 2003. 

Therefore, based on the aforementioned criteria, the City will submit an application in the amount of $50,000, comprised of $40,000 under the Grant Program and $10,000 for being a Job Housing Balance award recipient in 2003.

Eligible Projects

The Grant Program is awarded on a per-bedroom basis for newly constructed rental and ownership housing units affordable to very low- and low-income households.  Additionally, each housing unit must have received final land use approval and issuance of the building permit between January 1, 2004 and December 31, 2004.  The Agency assisted, Independent Living Facility Project, was issued its final building permit in 2004 for the construction of an eighteen (18)-unit independent living complex for disabled persons who are very low income households (excludes the Manager�s unit).  A total of twenty (20) bedroom units are eligible based on these criteria.

Eligible Uses of Funds

Under the Grant Program guidelines, grants shall be used for the construction or acquisition of capital assets that serve to benefit the community, as set forth in Section 16727 of the Government Code. The former Buena Vista library site is the future site of a proposed childcare facility and family resource center. The proposed project (scheduled for final City Council/Agency Board consideration later this month) will be an essential resource to the community providing childcare for 88 children and a family resource center that will provide a variety of resources to the community.  If the application for funding is approved the entire amount is proposed to be allocated to the proposed childcare facility and family resource center project.

FISCAL IMPACT

The Grant Program would have no financial effect on the General Fund but would be an additional financing source for the proposed project described above.

RECOMMENDATION

Staff recommends that the City Council approve the resolution authorizing submittal of an application to the Department of Housing and Community Development for funding under the Grant Program for the former Buena Vista library site proposed childcare facility and family resource center project and further recommends that the Redevelopment Agency Board approve a resolution authorizing acceptance of the Grant Program funding. 

EXHIBITS

A         Notice of Funding Availability

B         Application for Workforce Housing Incentive Grant Program Funds