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ITEM 29

City Council Memorandum Neighborhood Resources Memo No. HD

Date:

November 9, 2023

To:

Mayor and Council

Thru:

Joshua H. Wright, City Manager
Tadd Wille, Assistant City Manager
Leah Powell, Neighborhood Resources Director

From:

Amy Jacobson, Housing and Redevelopment Senior Manager

Subject:

Resolution No. 5752 Intergovernmental Agreement Between Maricopa County, Administered by its Human Services Department, and the City of Chandler to Accept American Rescue Program Funds in the amount of $10,000,000

Proposed Motion:

Move City Council pass and adopt Resolution No. 5752 Approving the Intergovernmental Agreement Between Maricopa County, Administered by its Human Services Department, and the City of Chandler to Accept American Rescue Program Funds in the amount of $10,000,000, Authorizing the City Manager to Sign all Related Documents and Assurances on Behalf of the City of Chandler; and Further Authorizing the City Manager to Take all Action Necessary or Prudent to Implement the City's Affordable Housing Projects.

Background:

The City of Chandler is committed to expanding affordable housing opportunities within the community. In alignment with this objective, the City of Chandler has secured funding from the Maricopa County Human Services Department (MCHSD) through an Intergovernmental Agreement (IGA) to allocate $10,000,000 in American Rescue Plan Act (ARPA) funds. Of this amount, $5,000,000 will be earmarked to support the construction of the Villas on McQueen (this funding is already included in the financing sources for the project), and the remaining $5,000,000 will be allocated to support the construction of Site 3 (73 S. Hamilton). Regarding Site 3, the City is presently in the process of identifying potential partners and the sources of funding for the project.

Both of these properties are undergoing a transition from public housing to a Section 8 platform as part of the Rental Assistance Demonstration program (RAD).

Discussion:

Funding has been allocated for two significant projects: the Villas on McQueen (Project), situated at the southeast corner of McQueen Road and Chandler Boulevard, and "Site 3," located at 73 S. Hamilton.

On October 24th, 2022, the City Council approved the development agreement with Gorman & Company, LLC, for the Villas on McQueen. This project, operating under HUD's Rental Assistance Demonstration ("RAD") program, will facilitate the construction of 157 units. It is designed to serve seniors, veterans, families, and individuals with disabilities. The Villas on McQueen will be developed on City-owned land and contributed to the partnership with Gorman & Company through a long-term ground lease, forming an integral part of a comprehensive revitalization strategy. Construction is currently scheduled to commence in spring 2024, with an anticipated completion date in late fall 2025.

Site 3 encompasses approximately 7.4 acres and is situated near downtown Chandler. The proposed project involves new construction and is expected to yield approximately 300 affordable rental units, effectively replacing the existing low-density public housing on the site. This project represents the second phase of the City's Rental Assistance Demonstration (RAD) Program aimed at transforming public housing. The majority of the residents in this project will be seniors. The city has issued a request for proposals to secure assistance in the development of this project, along with another of the city's existing public housing sites. Additionally, a market demand study will be conducted to determine whether the project should be exclusively for seniors or if it should be a multi-generational endeavor accommodating both seniors and families. As it stands, the projected timeline for completing this project is late 2026.

Attachments

Resolution No. 5752

IGA Maricopa County