Recommendation to approve the First Substantial Amendment to the Fiscal Year 2015 Annual Action Plan to obligate new Program Income in the HOME Investment Partnership program for activities that create affordable housing for low-income households; Authorize City Manager to execute all necessary documents with the United States Department of Housing and Urban Development related to the First Substantial Amendment; and Increase appropriations in the Community Development Grants Fund (SR 150) in the Development Services Department (DV) by $4,000,000. (Citywide)
Item ten is a report from Development Services recommendation to prove the first substantial amendment to the fiscal year 2015 Annual Action Plan to allocate new program income in the Home Investment Partnership Program for activities that create affordable housing for low income households. Authorize City Manager to execute all necessary documents with the U.S. Department of Housing and Urban Development related to the first substantial amendment and increase appropriation in the Community Development Grants Fund in the Development Services Department by 4 million. City Y. Councilmember Andrews? No, I'm just moving on. There's been a motion and a second. So any member of the public that wishes to address Council on item ten. Seeing none. Oh, Councilmember Austin. Sorry. Sorry about that. I'd like to get a staff report on this. Sure. $4 million seed funds. Amy, Barack. Thank you. Vice Mayor, members of the city council. We received an unexpected largesse this fiscal year through the repayment of a loan when the Northpoint apartment project was sold as a condition of the original loan upon refinancing or sale of the project. The city's home loan was to be repaid so that we were repaid $4 million in December. That was a significant amount of money that we had not accounted for. And so we needed to amend our action plan with HUD. What we have done since then is also take that $4 million and we will be dedicating that money to the anchor project at Villages at Cabrillo, which is a veteran's shelter project that has been entitled by the city and is moving forward and is under construction. However, we still have to amend our documents to show that we received the money and that we also are disbursing the money as well. Thank you. So the North Point Apartments, I do have some some some familiarity with where there were that is I mean, obviously that's in the eighth District. And we are we looking to transfer all $4 million to the the Veterans Home at Cabrillo? Yes. And and are there any I mean, how do how do we reach that conclusion and why? So the responsibility for funding affordable housing projects has been delegated to the Long Beach community, an investment company by the city council. And so they manage the the city's affordable housing program, including the home loan program, which is a federal program. Under the HUD Action Plan, we are required to account for significant deviations in our revenue or expenditures. Since the Northpoint was sold, we received those revenues. We were also at the same time, the Long Beach Community Investment Company was considering a request by the villages of Cabrillo for a significant investment in their project as well. So that's how that that came about. And were there any other housing projects considered? We consider new housing projects monthly. The home program is very, very specific on what they can and cannot fund. There's a lot of restrictions related to it. And because we had the ability to fund this project with restricted monies, we took advantage of that opportunity. Right. Thank you for the report. Thank you. Members, cast your vote. Motion carries six zero. Item 11.