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Public Housing
Authority
Commission
Regular Meeting

November 6, 2023, 6:00 p.m.

Chandler City Council Chambers
88 E. Chicago St., Chandler, AZ

Commission Members
Chair Kevin Hartke
Vice Chair Matt Orlando
Commissioner Angel Encinas
Commissioner Christine Ellis
Commissioner Mark Stewart
Commissioner OD Harris
Commissioner Jane Poston
Commissioner Lisa Loring

Pursuant to Resolution No. 4464 of the City of Chandler and to A.R.S. 38-431.02, notice is hereby given to the members of the general public that the PUBLIC HOUSING AUTHORITY COMMISSION will hold a Regular Meeting open to the public on Monday, November 6, at 6:00 p.m., in the Chandler City Council Chambers, 88 E. Chicago Street, Chandler, Arizona. One or more members of the Commission may attend this meeting by telephone.

Persons with a disability may request a reasonable accommodation such as a sign language interpreter by contacting the City Clerk's office at (480) 782-2181. Requests should be made as early as possible to allow time to arrange accommodation.

Agendas are available in the Office of the City Clerk, 175 S. Arizona Avenue.

Agenda

Call to Order/Roll Call

Unscheduled Public Appearances

Consent Agenda

Approval of Minutes

Move the Public Housing Authority Commission approve the Public Housing Authority Commission regular meeting minutes of August 14, 2023.

Resolution No. HO177 Authorizing the Conversion of Villas on McQueen through the U.S. Department of Housing and Urban Development Rental Assistance Demonstration and Section 18 Disposition Programs

Move the Public Housing Authority Commission pass and adopt Resolution No. HO177 authorizing the conversion of Villas on McQueen through the U.S. Department of Housing and Urban Development Rental Assistance Demonstration and Section 18 Disposition Programs; and authorizing the City Manager or designee to sign all agreements and related documents on behalf of the City of Chandler and/or the City of Chandler Public Housing Authority.

Adjourn

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ITEM 1

Public Housing Authority Commission Memorandum City Clerk's Office Memo No.

Date:

11/06/2023

To:

Public Housing Authority Commission

From:

City Clerk's Office

Subject:

Approval of Minutes

Proposed Motion:

Move the Public Housing Authority Commission approve the Public Housing Authority Commission regular meeting minutes of August 14, 2023.

Attachments

Minutes of the Public Housing Authority Commission August 14, 2023 Regular Meeting

ITEM 2

Public Housing Authority Commission Memorandum Neighborhood Resources Memo No. HD23-08

Date:

11/06/2023

To:

Public Housing Authority Commission

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. HO177 of the Public Housing Authority Commission Authorizing the Conversion of Villas on McQueen through the U.S. Department of Housing and Urban Development Rental Assistance Demonstration and Section 18 Disposition Programs

Proposed Motion:

Background:

The U.S. Department of Housing and Urban Development (HUD) has authorized and established several repositioning programs for public housing authorities, including the Rental Assistance Demonstration (RAD) Program, Section 18 Program, and others. These initiatives empower public housing authorities to revitalize public housing assets, foster public/private partnerships, and secure funding to enhance existing properties or construct new ones.

The Housing Authority of the City of Chandler ("Authority") has identified a city-owned property for the development of new affordable housing catering to seniors, individuals with disabilities, veterans, and families. The project encompasses 157 units of affordable housing with a diverse range of 1, 2, 3, 4, and 5-bedroom units, located south of the southeast corner of McQueen Road and Chandler Boulevard. The project's objective is to facilitate the conversion and relocation of 78 public housing residents from public housing sites at 210 N. McQueen and 73 S. Hamilton to a newly constructed site named Villas on McQueen, employing a Rental Assistance Demonstration ("RAD")/Section 18 Disposition Blend. This Project marks the initial phase of the city's redevelopment initiative aimed at transforming its public housing inventory into fresh, upgraded, and expanded affordable housing options for Chandler's residents.

On July 14, 2022, the City Council sanctioned the submission of the RAD application to HUD. Subsequently, on October 24, 2022, the City Council approved a Development Agreement with Gorman & Company for the collaborative development of Villas on McQueen. Furthermore, on March 28, 2023, the public housing authority received a Commitment to Enter into a Housing Assistance Payments (CHAP) from HUD. Over the past year, the development team has also secured various financing awards, including federal and state Low Income Housing Tax Credits (LIHTC) and other funding sources to support the project.

Discussion:

The City Council has granted approval for the transformation, or repositioning, of public housing units using the RAD. However, the Authority is eligible to utilize a RAD and Section 18 Construction Blend, streamlining the process and increasing the operating revenue for the project.

The Authority intends to seek approval to apply RAD/Section 18 Blend which allows for 60% of the units under the Section 18 Disposition program, with the remaining 40% to undergo conversion through RAD, following the guidelines specified in PIH Notice 2021-07, Section 3.A.2.e., which pertains to blending Section 18 Disposition Approvals with RAD Conversion. Upon conversion to Section 8 Project-Based Vouchers ("PBV"), the Villas on McQueen project will embrace resident rights, participation, waiting list, and grievance procedures as outlined in RAD PIH Notice 2012-32, REV 4, and will comply with other relevant PBV regulations.

HUD mandates PHAC (Public Housing Authority Commission) approve due to the combining two HUD tools, namely RAD and Section 18 Blend. PHAC's authorization is a prerequisite before a financing plan can be presented to HUD. The decision to merge RAD and Section 18 Blend is in the project's best interest, since it will lead to a more substantial rental subsidy for the project. Instead of opting for 100% RAD, which offers a lower contract rental subsidy, flexibility will be allowed to allocate a portion of the units at a higher amount of contract rent under Section 18. Specifically, 60% of the units will fall under Section 18, while the remaining 40% will be designated as RAD units.

Financial Implications:

Funding sources for Villas at McQueen include, but are not limited to: Federal and State Low Income Housing Tax Credit Equity, Permanent Loan, HOME Investment Partnerships (HOME) funds, HOME American Rescue Plan Funds, Arizona Department of Housing funds, State Housing Trust Funds, Maricopa County American Rescue Plan Act Funds, and Deferred Developer Fee. No portion of the development cost will be borne by the City's General Fund.

Attachments

Resolution HO177