AgdaPkt 2008-04-28 - Laserfiche WebLink

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2007 -2008 HUD grant funding cycle as recommended by the Housing and Human Concerns Committee. 6.18 Page 2 While CDBG funds can be used for site acquisition, they cannot be used for construction of self-help ownership housing construction where labor is provided primarily by volunteers. HOME funds may be used for construction of affordable housing projects, but by replacing the previously approved CDBG and HOME funds with Housing set-aside funds, PHfH will be able to utilize all of the funds for the construction activities. Since there are funds available in the RDA Housing budget for this swap, by replacing the CDBG and HOME funds, the agency will then be able to leverage more funds for future site acquisitions. Although the Original Agreement with PHfH was approved in March 2005, the Lincoln Avenue site was utilized for staging during the construction phase of the FCH project on Vera and EI Camino Real (Villa Montgomery). PHfH has now begun construction of their eight town homes. It is appropriate to amend the Original Agreement at this time to reflect the change in funding sources and to also make necessary ministerial changes. Attached please find a red-lined copy of the Original Agreement so that changes can be easily identified. ALTERNATIVES Do not approve Amendment No. 1 to the Disposition and Development Agreement and the reallocation of fund~ in which case, the project would lose the $321,000 from CDBG funding sources and the completion of the project would be in jeopardy. The Agency would need to seek another source of funding to meet the terms of the agreement. FISCAL IMPACT The total allocation to fund a portion of construction costs is $632,826.75. Funds previously budgeted from CDBG and HOME for this purpose would now be expended from Redevelopment Housing set-aside funds. This fund reappropriation will allow the CDBG and HOME funds to be made available for future land acquisition for another affordable housing project. j)~;' ~/h 9 if ~~~ Patricia J. Webb Peter Ingram Housing & Economic Development Manager Executive Direct ,Redevelopment Agency ATTACHMENTS 1. Resolution of the Redwood City Redevelopment Agency Approving Amendment No. 1 to the Disposition and Development Agreement by and between the Redwood City Redevelopment Agency and Peninsula Habitat for Humanity 2. Proposed Amendment No. 1 to Disposition and Development Agreement by and between Redevelopment Agency of the City of Redwood City and Peninsula Habitat for Humanity (red-lined version) RELATED DOCUMENTS IN CITY CLERK'S OFFICE Disposition and Development Agreement by and between Redevelopment Agency of the City of Redwood City and Peninsula Habitat for Humanity (March 14, 2005)