TOWN OF WINDSOR AGENDA REPORT

ITEM NO. : 9.12 TOWN OF WINDSOR AGENDA REPORT Town Council Meeting Date: September 6, 2017 To: From: Subject: Mayor and Town Council Ken MacNab, Community Development Director Windsor Veterans Village Project Resolution Endorsing an Application for $1 Million in Funding Assistance from the County of Sonoma Recommendation: Adopt a resolution endorsing submittal of an application to the Sonoma County Community Development Commission for $1 million in funding assistance from the County Fund for Housing loan program for the Windsor Veterans Village project and directing staff to initiate a call for projects for award of available funding in the Town s Inclusionary Housing Fund. Background: For the past year staff has been working with representatives from Urban Housing Communities, LLC (UHC) in finding a suitable site within town limits for development of an affordable veterans housing project. Through this effort, UHC found and secured a 9.75-acre site located at 9500 Oak Park Drive. UHC has submitted a conceptual development plan for the property (Attachment 3) and has been working closely with staff in preparation to submit a formal application for land use entitlements. UHC has also been in discussions with staff about financial assistance for the project. These discussions primarily focused on long-term deferral of the Town s development impact fees and funding available through the Town s Inclusionary Housing Fund. UHC has advised staff that they are interested in applying for $500,000 in funding from the Town s Inclusionary Housing Fund. Discussion: On July 25, 2017, the Sonoma County Community Development Commission (SCCDC) published a Notice of Funding Availability for $4,000,000 from the County Fund for Housing (CFH). CFH funding is generally available once a year and is now available for affordable rental and homeownership projects located in cities/towns as well as in unincorporated areas of the County. It is estimated that there will be $4,000,000 in CFH funds available this year. Applications for funding from the CFH will be considered at a public hearing before the County s Community Development Committee on October 10, 2017. At the conclusion of the hearing, the Community Development Committee will decide on funding recommendations to the Sonoma County Board of Supervisors. The Board is expected to consider recommendations and make funding decisions on or about November 14, 2017. UHC has submitted an application to the SCCDC for $1 million in funding assistance from the CFH. In order to be considered for funding, the applicant is required to provide a resolution from the Town endorsing submittal of the application. UHC has submitted a letter to the Town formally requesting that the Town Council adopt such a resolution (Attachment 2). A resolution endorsing the project has been prepared for the Council s consideration (Attachment 1). 1 of 2

With regard to UHC s expressed interest in applying for $500,000 in funds from the Town s Inclusionary Housing Fund, the Town s adopted guiding principles for use and disbursement of the Town s Inclusionary Housing Funds require that a call for projects must be issued prior to award of funds to provide any interested and qualified party the opportunity to apply for funding. As part of the resolution, staff is also recommending that the Council direct staff to initiate a call for projects for award of available funds in the Town s Inclusionary Housing Fund to allow UHC (and any other interested party) to apply for use of these funds. Fiscal Impact: The requested action will not have any fiscal impact on the Town s general fund. The Town s Inclusionary Housing Fund has a current balance of approximately $1,807,321. Of that, $1,121,000 was recently encumbered to provide funding assistance to two affordable housing projects (Habitat for Humanity s Duncan Village project, and MW Development/Integrity Housing s Heritage Park project). After subtracting the encumbered funds and the required set asides for special project funding and administrative activities (per the Town s Inclusionary Housing Guidelines), over $500,000 is currently available for requests for funding assistance. Environmental Review: The recommended action is not in-and-of-itself a project (pursuant to CEQA Guidelines Section 15378) since it does not result in a physical change in the environment. However, the recommended action is a part of a larger project that will be subject to environmental review in accordance with CEQA Guidelines Sections 15004 and 15352. The larger project is approval of land use entitlements to construct an affordable housing project, and staff plans to bring back a CEQA analysis to the decision-making body with final approval authority prior to action to approve the project. Attachments: 1. Draft resolution 2. Correspondence from UHC dated August 18, 2017 3. Conceptual development plan Prepared by: Ken MacNab Community Development Director Reviewed and Recommended by: Camille Kazarian Interim Town Manager 2 of 2

ATTACHMENT 1 RESOLUTION NO. A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF WINDSOR ENDORSING THE SUBMITTAL OF AN APPLICATION TO THE SONOMA COUNTY COMMUNITY DEVELOPMENT COMMISSION FOR $1 MILLION IN FUNDING ASSISTANCE FROM THE COUNTY FUND FOR HOUSING FOR THE WINDSOR VETERANS VILLAGE PROJECT LOCATED AT 711 AND 9500 OAK PARK DRIVE (APNs 066-060-004, -007 and -021) AND DIRECTING STAFF TO INITIATE A CALL FOR PROJECTS FOR AWARD OF AVAILABLE FUNDS IN THE TOWN S INCLUSIONARY HOUSING FUND (FILE No. 17-18) WHEREAS, Urban Housing Communities, LLC (UHC) is developing the Windsor Veterans Village project, located at 711 and 9500 Oak Park Drive (APN s 066-060-004, -007 and -021) with 59 housing units serving veteran households earning 30 to 50% of the Area Median Income (AMI), an on-site manager s unit, and on-site support services; and WHEREAS, on July 25, 2017, the Sonoma County Community Development Commission published a Notice of Funding Availability for $4,000,000 from the County Fund for Housing (CFH); and WHEREAS, UHC has submitted an application requesting $1 million dollars in funding assistance from the CFH for the Windsor Veterans Village project; and WHEREAS, UHC is required to submit a resolution from the Town Council endorsing submittal of the application for CFH funding as part of the County s application process; and WHEREAS, UHC submitted a letter to the Town on August 18, 2017 formally requesting approval of a resolution endorsing UHC s application CFH funding; and WHEREAS, Implementation Program 1.B in the Housing Element of the Town of Windsor General Plan (Assistance to Affordable Housing and Special Needs Housing Developers) states that the Town shall work with developers of affordable housing and housing for special needs groups to plan and develop projects that will be an asset to the community, including offering its support in applications for regional, State, and Federal funding; and WHEREAS, Policy 1.3 in the Housing Element of the Town of Windsor General Plan states that the Town shall facilitate the construction of units affordable to extremely low-, very low-, low-, and moderate-income households; and WHEREAS, UHC has expressed an interest in applying for $500,000 in funding from the Town s Inclusionary Housing Fund; and WHEREAS, on June 15, 2016, the Town Council adopted Resolution No. 3297-16 which establishes guiding principles for use and disbursement of the Town s Inclusionary Housing Funds; and 1 of 2

WHEREAS, per the Town s adopted guiding principles for use and disbursement of the Town s Inclusionary Housing Funds, a call for projects must be issued to provide interested and qualified parties the opportunity to request funding for a qualified affordable housing project prior to award of the Town s Inclusionary Housing Funds; and WHEREAS, endorsement of an application for funding from the CFH and direction to staff to initiate a call for projects announcing the availability of funds from the Town s Inclusionary Housing Fund is not in-and-of-itself a project (pursuant to CEQA Guidelines Section 15378) since it does not result in a physical change in the environment. NOW, THEREFORE BE IT RESOLVED that the Town Council of the Town of Windsor endorses UHC s application for $1 million in funding assistance from County Fund for Housing for the Windsor Veterans Village project; and BE IT FURTHER RESOLVED that the Town Council of the Town of Windsor directs staff to initiate a call for projects pursuant to the requirements and criteria of the Town s Inclusionary Housing Fund Guidelines for award of available Inclusionary Housing Funds. PASSED, APPROVED AND ADOPTED this 6th day of September 2017, by the following vote: AYES: NOES: ABSTAIN: ABSENT: ATTEST: DEBORA FUDGE, MAYOR MARIA DE LA O, TOWN CLERK 2 of 2

ATTACHMENT 2 COMMUNITI ES August 18,2017 Mr. Ken MacNab Community Development Director Town of Windsor 9291 Old Redwood Highway P.O. Box 100 Windsor, CA 95492-0100. Re: Request for Resolution of Endorsement And Interest to Apply for Funding from Town of Windsor Inclusionary Housing Fund Windsor Veterans Village Dear Mr. MacNab: Urban Housing Communities, (UHC) and the Veterans Resource Centers (VRC) have been working with the Town of Windsor to initiate entitlement and development of the Windsor Veterans Village, a 60 units affordable veterans housing community situated on the 9.75-acre site located at 9500 Oak Park Street. As part of the funding for the project, UHC and the VRC are interested in applying to the Town of Windsor for $500,000 in funding from the Town s Inclusionary Housing Fund. Additionally, UHC and the VRC are responding to the Sonoma County Community Development Commission s NOFA dated July 25, 2017 for support from the County Fund for Housing. As part of that funding effort, UHC and the VRC are requesting from the Town of Windsor Council a resolution endorsing submittal of an application to the CDC for $1 million in funding assistance from the County Fund for Housing loan program for the Windsor Veterans Village. Consideration of the interest in funding from the Town of Windsor Inclusionary Housing Fund and support of the project through the resolution of endorsement for the CFH funds through Sonoma County will be instrumental to the overall project funding. UHC and the VRC have already applied for Project Based VASH Vouchers. Upon entitlement of the project, UHC and the VRC will apply for VHHP funds, a HOME DEPOT Grant, AHP loan, 4% tax credit financing and bonds to develop the Windsor Veterans Village. Thank you for your consideration to the Request for the Resolution of Endorsement and Interest to Apply to the Town of Windsor Inclusionary Housing Fund. Sincerely, hnbigley -. uhcllc net 2000 E Fourth Street Suite #205 Santa Ana, CA 92705 tel 714 835 3955 fax 714 835 3275

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