Title
Resolution to Allocate $224,000.00 in HOME Funds to Avalon Housing Inc. for the Rehabilitation of 211 E. Davis and to Approve the Housing Affordability Agreement ($224,000.00 HOME Funds)
Memorandum
Attached for your review and approval is a resolution to allocate $224,000.00 in HOME Funds to Avalon Housing Inc. to rehabilitate 14 units of permanent affordable housing. The City previously invested in 211 E. Davis at the time of acquisition in 1993. The project needs extensive rehabilitation in the amount of $157,000.00. The total budget is $224,000.00 including refinancing of private debt. The property was appraised at $440,000.00 in 1993 and $762,000.00 in 2007. The City will have second lien position behind the Federal Home Loan Bank’s $95,000.00 lien.
Avalon will own and manage the property and Catholic Social Services will provide supportive services. As the property managers, Avalon will screen the tenants. The current tenant income averages 16% of Area Median Income. Seven tenants were homeless before moving into the units.
The project is consistent with the City’s Consolidated Strategy and Plan and the Blueprint to End Homelessness. The Consolidated Plan recommends refinancing and rehabilitating existing projects that serve extremely low-income tenants. The City Attorney’s office will review the legal and contractual documents to ensure that Avalon will comply with the requirements in the HOME regulations. It will be the responsibility of the Office of Community Development to monitor agency compliance with these regulations as part of their annual HOME Program monitoring.
Consistent with HOME Program requirements, a mortgage and affordable housing covenant will be placed on the property to preserve the affordability of these units. The project will be ineligible for additional HOME funds for a minimum of 10 years as required by the HOME program regulations. The City’s affordability period will be 99-years, consistent with previous pro...
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