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HomeMy WebLinkAboutReports - 2023.12.07 - 40871 AGENDA ITEM: Housing Trust Fund - Wellspring Project for Affordable and Permanent Supportive Housing Development in the City of Southfield DEPARTMENT: Health & Human Services - Neighborhood and Housing Development MEETING: Board of Commissioners DATE: Thursday, December 7, 2023 6:00 PM - Click to View Agenda ITEM SUMMARY SHEET COMMITTEE REPORT TO BOARD Resolution #2023-3529 Motion to approve the Wellspring Project for affordable and permanent supportive housing development in the City of Southfield recommended by the Housing Trust Fund Board in an amount not to exceed $2,600,000 using American Rescue Plan Act - Local Fiscal Recovery Funds. ITEM CATEGORY SPONSORED BY Resolution Penny Luebs INTRODUCTION AND BACKGROUND Southwest Housing Solutions Corporation submitted an application requesting $2,600,000 in gap funding to provide recovery housing and supportive services for individuals and/or families with a member who has a substance-use disorder with a focus on opioid disorders through the Wellspring affordable and permanent supportive housing development. County staff reviewed and scored the Southwest Housing Solutions Corporation application and recommended a Housing Trust Fund investment in an amount not to exceed $2,600,000 of ARPA funds. The Wellspring project for affordable and permanent supportive housing development, to be located at 24201 Hooper Boulevard, Southfield, Michigan, will provide up to 72 units of affordable and permanent supportive housing reserved for residents earning less than 30% of the area median income (AMI), 50% of AMI, and 60% of AMI. The Wellspring affordable and permanent supportive housing development will represent an approximately $34,000,000 investment into affordable and permanent supportive housing in Oakland County. On October 18, 2023, the Housing Trust Fund Board approved a resolution recommending an investment in an amount not to exceed $2,600,000 of ARPA funds to the Oakland County Board of Commissioners for the Wellspring project for affordable and permanent supportive housing development. POLICY ANALYSIS The Oakland County Board of Commissioners authorized the creation of the Housing Trust Fund by Miscellaneous Resolution #22-135. The Oakland County Board of Commissioners authorized a one- time Fiscal Year 2022 appropriation in the amount of $5,000,000 in American Rescue Plan Act – Local Fiscal Recovery Funds for the Oakland County Housing Trust Fund to increase affordable or attainable rental and homeowner occupied housing throughout Oakland County. Housing proposals requesting more than $1,500,000 from the Housing Trust Fund shall require approval of the Oakland County Board of Commissioners. A Notice of Funding Availability and Application was approved and released on September 20, 2023, to receive applications requesting ARPA funding. American Rescue Plan Act - Local Fiscal Recovery Funds must be committed to the Wellspring project through a written contract by December 31, 2024, and expended by December 31, 2026. A budget amendment is not required as the funding was appropriated in FY 2022, MR #22-135 and authorized to be carried forward via the FY 2022 Year-end Report (MR #22397). BUDGET AMENDMENT REQUIRED: No Committee members can contact Michael Andrews, Policy and Fiscal Analysis Supervisor at 248.425.5572 or andrewsmb@oakgov.com, or the department contact persons listed for additional information. CONTACT Kyle Hines, Housing Trust Fund Manager ITEM REVIEW TRACKING Aaron Snover, Board of Commissioners Created/Initiated - 12/7/2023 AGENDA DEADLINE: 12/07/2023 6:00 PM ATTACHMENTS 1. #7c Wellspring - HTF Resolution COMMITTEE TRACKING 2023-11-28 Public Health & Safety - Recommend to Board 2023-12-07 Full Board - Adopt Motioned by: Commissioner Charles Cavell Seconded by: Commissioner Ajay Raman Yes: David Woodward, Michael Spisz, Michael Gingell, Penny Luebs, Karen Joliat, Kristen Nelson, Christine Long, Robert Hoffman, Philip Weipert, Gwen Markham, Angela Powell, Marcia Gershenson, William Miller III, Yolanda Smith Charles, Charles Cavell, Brendan Johnson, Ajay Raman, Ann Erickson Gault (18) No: None (0) Abstain: None (0) Absent: (0) Passed Oakland Together Housing Trust Fund October 18, 2023 Resolution: #2023 -002 Recommendation of Funding Chair and Members of the Oakland Together Housing Trust Fund Board: WHEREAS Oakland County has a need of 11,582 additional units of affordable housing needing to be created over the next decade; and WHEREAS of the more than 150,000 renters in Oakland County, 41.4% are cost burdened, paying more than 30% of their income in rent; and WHEREAS the average wait for a Housing Choice Voucher in Oakland County is 26 months; and WHEREAS the Oakland County Board of Commissioners authorized the creation of the Housing Trust Fund by Miscellaneous Resolution #22 -135; and WHEREAS the Oakland County Board of Commissioners authorized a one-time Fiscal Year 2022 appropriation in the amount of $5,000,000 in American Rescue Plan Act – State and Local Fiscal Recovery Funds (SLFRF) for the Oakland County Housing Trust Fund (Fund) to increase affordable or attainable rental and homeowner occupied housing throughout Oakland County ; and WHEREAS the Fund approved and released a Notice of Funding Availability and Application on September 20, 2023 to receive applications requesting SLFRF funding; and WHEREAS Southwest Housing Solutions Corporation submitted an application requesting $2,600,000 in gap funding for its Wellspring affordable and permanent supportive housing development to be located at 24201 Hooper Boulevard, Southfield, Michigan (Development); and WHEREAS the Development will provide up to 72 units of affordable and permanent supportive housing reserved for residents earning less than 30% of t he area median income (AMI), 50% of AMI, and 60% of AMI; and WHEREAS the Development will provide recovery housing and supportive services for individuals and/or families with a member who has a substance use disorder with a focus on opioid disorders; and WHEREAS the Development will represent an approximately $34,000,000 invest ment into affordable and permanent supportive housing in Oakland County; and WHEREAS County staff reviewed and scored the Development’s application and recommend an investment in an amount not to exceed $2,600,000 of SLFRF funds for the Development; and WHEREAS any Fund investment over $1,500,000 requires approval of the Oakland County Board of Commissioners by adopted resolution. NOW THEREFORE BE IT RESOLVED that the Oakland Together Housing Trust Fund recommends that the Oakland County Board of Commissioners adopt a resolution approving and auth orizing an investment of SLFRF funds for the Wellspring affordable and permanent supportive housing development in an amount not to exceed $2,600,000. BE IT FURTHER RESOLVED that the SLFRF funds must be committed to the Development through written contract by December 31, 2024 and expended by December 31, 2026.