AgdaPkt 2013-02-25 - Laserfiche WebLink

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6.1.G. - Page 1 RE PO RT To the Honorable Mayor and City Council From the Cit Mana er February 25, 2013 SUBJECT Funding Agreement for Willow Road Apartments Rehabilitation Project RECOMMENDATION By motion, approve funding agreement with HIP Housing Development Corporation for the Willow Road Apartments Rehabilitation Project and authorize the City Manager, or his designee, to execute the agreement. BACKGROUND On January 28, 2013, City Council approved amendments to the 2010-2015 Consolidated Plan and 2012-2013 Action Plan to expand the geographic targeting of HOME Investment Partnership Act (HOME) funds to include contiguous jurisdictions in addition to citywide targeting. The amendments also included the addition of the Willow Road Apartments Rehabilitation project to be funded with HOME funds. ANALYSIS The City received a proposal for funding from HIP Housing Development Corporation (HHDC), a Community Housing Development Organization (CHDO) for a multifamily rental rehabilitation project in November 2012. The project includes the rehabilitation of a 12 unit apartment building located at 1157-1161 Willow Road in Menlo Park. HHDC acquired the abandoned vacant building in August 2012 with funding assistance from the City of Menlo Park, County of San Mateo and Borel Bank. The County of San Mateo also provided $240,000 to assist with the rehabilitation of the property. The scope of the interior and exterior improvements triggered certain building code requirements that increased the scope of work initially planned. HHDC submitted a funding proposal to Redwood City to assist with the additional funds needed to complete the property rehabilitation. The HHCC reviewed the proposal from HIP in November 2012 and recommended the 2012-2013 Action Plan be amended to include this project and recommended funding it in the amount of $92,197 from uncommitted 2012-2013 HOME CHDO set aside funds and HOME housing funds. The project is located in a contiguous jurisdiction and will benefit Redwood City residents in addition to Menlo Park residents.