| ITEM #: 12. DATE: 07/08/2024 AI #:1983 |
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CITY COUNCIL ACTION REPORT
| SUBJECT: | DEVELOPMENT AGREEMENT WITH GOODYEAR LEASED HOUSING ASSOCIATES II, LIMITED PARTNERSHIP, FOR MULTI-FAMILY RENTAL DEVELOPMENT UNDER THE AMERICAN RESCUE PLAN ACT |
| STAFF PRESENTER(S): | Jenna Goad, Assistant to the City Manager |
SUMMARY
This development agreement will allow the City to pass-through 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 City Manager to execute a development agreement to pass-through ARPA funds to be used to support the development of affordable housing in Goodyear and associated budget transfers. (Jenna Goad, Assistant to the City Manager)
FISCAL IMPACT
The developer will pay the City’s established development application fee of $18,127 within 30 days of the execution of this agreement. This item has not been included in the budget, so a budget amendment is necessary in the amount of $2,000,000 for the expenditures. This expenditure amount will be offset by an equal amount of federal grant revenue to be received from Maricopa County. 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.
BACKGROUND AND PREVIOUS ACTIONS
On December 11, 2023, Council approved an Intergovernmental Agreement with Maricopa County to allow the City to receive federal ARPA funds to support the development of affordable housing in Goodyear.
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 Vista 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.
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 Vista 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.
STAFF ANALYSIS
This agreement will allow the City to pass-through ARPA funds to support the development of affordable housing in Goodyear. 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 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.