| ITEM #: 4. DATE: 12/11/2023 AI #:1659 |
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CITY COUNCIL ACTION REPORT
| SUBJECT: | INTERGOVERNMENTAL AGREEMENT (IGA) WITH MARICOPA COUNTY FOR THE ALLOCATION OF AMERICAN RESCUE PLAN ACT (ARPA) FUNDS TO SUPPORT THE DEVELOPMENT OF AFFORDABLE HOUSING IN GOODYEAR |
| STAFF PRESENTER(S): | Jenna Goad, Assistant to the City Manager |
SUMMARY
The Intergovernmental Agreement (IGA) with Maricopa County will allow the City to receive federal American Rescue Plan Act (ARPA) grant funds to be used to support the development of affordable housing in Goodyear.
STRATEGIC PLAN ALIGNMENT
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RECOMMENDATION
Authorize the Mayor to execute an Intergovernmental Agreement (IGA) with Maricopa County to receive American Rescue Plan Act (ARPA) funds to be used to support the development of affordable housing in Goodyear. (Jenna Goad, Assistant to the City Manager)
FISCAL IMPACT
There is no local match required to receive this grant, however, there will be administrative expenses associated with ongoing compliance and reporting for a period of 20 years. There may be an opportunity to recover some of these costs through an agreement with the developer.
BACKGROUND AND PREVIOUS ACTIONS
On January 9, 2023, Council approved the submission of a grant application to Maricopa County for ARPA funds to support the development of affordable housing in Goodyear. The County has awarded $2 million to the City to support the Suncrest Vistas senior housing development.
Council approved a request to rezone approximately 29 acres generally located southeast of Cotton Lane and Van Buren Street for the Suncrest Vista and Estrella Springs multi-family housing developments on January 24, 2022.
Council approved a request to rezone approximately 29 acres generally located southeast of Cotton Lane and Van Buren Street for the Suncrest Vista and Estrella Springs multi-family housing developments on January 24, 2022.
STAFF ANALYSIS
This agreement will allow the City to receive ARPA funds to support the development of affordable housing in Goodyear. The City will also need to enter into an agreement with the developer, Dominium, Inc., to specify the terms of the funding pass-through. The $2 million in ARPA funds will be provided to the developer as a 20-year, deferred loan with a zero percent interest rate. At the end of the 20-year period, the funds will be repaid to the County by the developer. The funds will be used to assist 10 units within the 261-unit Suncrest Vista senior housing development. The ARPA-assisted units will be reserved for residents earning 50% or less of the area median income (AMI). Per Arizona Department of Housing requirements, the other units will be restricted to residents earning at or below 60% AMI. The City will be responsible for the ongoing monitoring and reporting associated with the use of federal ARPA funds for a period of 20 years.