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HomeMy WebLinkAboutA2. Summit Housing1 Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Wendy Thomas, Community Development Director SUBJECT: Summit Housing, Inc., request for financial support from the Community Housing Fund for the payment of $18,010 in impact fees for the construction of 42 affordable rental units serving seniors at or below 60% AMI units on property located on the southwest corner of 27th Avenue and Turbulence Lane. MEETING DATE: October 19, 2015 RECOMMENDATION: Authorize the use of Community Housing Funds supporting the Summit Housing Inc., for the construction of 42 rental housing units for senior households earning 60% or less of Area Median Income (AMI). BACKGROUND: Summit Housing, Inc., has submitted a request for the City’s financial support of the group’s construction of an affordable apartment building, with 42 units affordable to senior households earning 60% or less of area median household income. The Community Housing Advisory Board (CAHAB) will review this item at their October 14, 2015 meeting. The result of that vote will be shared with the City Commission upon presentation of this agenda item. The developer requested partial funding for the impact fees for the proposed development. The proposed project will move the community further toward the five year goal of creating 200 multi-family affordable rentals. 182 2 Based on the Action Plan, the community goal between 2012 and 2016 is to create 200 multi-family units using LIHTC to make rents affordable to households earning between 30 and 60% AMI. Summit is submitting for this round of funding from the Montana Board of Housing for Low Income Housing Tax Credits to help fund the cost of construction. The application will be presented to the Board of Housing on November 9, 2015. This project will address housing needs for households earning 60% or less of AMI, with the majority of the units serving those making 50% and less of AMI. We now have the following rental housing projects seeking approval or under construction: Project Name Units Status Stoneridge Apartments 48 Under construction Larkspur Commons Apts 136 Site plan approved REACH Apts 6 Site plan approved Rose Park Apts 42 Seeking tax credit approval The Affordable Housing Action Plan 2012-2016 recommends that the Green Building standards outlined in Appendix C be required of applicants requesting funds. If this funding request is approved, during the review process for the site plan a condition of approval will require the green building requirements of the Action Plan will be met. The Action Plan states that an evaluation criteria be used to determine if an application should be supported. In 2014, the City Commission approved the application and scoring sheet recommended for use by CAHAB. You will find the scoring sheet as an attachment to this report. The draft minutes of the October CAHAB meeting are attached for your reference. ALTERNATIVES: 1) Authorize the use of Community Housing Funds to support the request; 2) Do not authorize the use of Community Housing Funds to support the request; or 3) As determined by the Commission. . FISCAL EFFECTS: The Community Housing Fund currently has a balance of $319,734. Current obligations for the fund are $279,098.93. If the Summit Housing, Inc., application is approved the committed funds will total $297,108.93. The three mils approved by the City Commission for the Community Housing Fund for FY 2016 have not yet been allocated to the fund. Attachments: Application Scoring Sheet Application Packet from Summit Housing, Inc. Affordable Housing Action Plan 2012-2016 Report compiled on: October 5, 2015 183 184 185 186 188 189 190 191 192 193 194 195 196 197 198 199 200 201 202 203 204 205 206 207 208 209 210 211 212 213 214 215 216 217 218 219 220 221 222 223 224 225 226 227 228 229 230 231 232 233 234 235 236 237 238 239 240 241 242 243 244 245 246 247 248 250 252