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HomeMy WebLinkAboutReports - 2024.03.14 - 41064 AGENDA ITEM: Housing Trust Fund - Westwood South Affordable Housing Development Project in the City of Pontiac DEPARTMENT: Health & Human Services - Neighborhood and Housing Development MEETING: Board of Commissioners DATE: Thursday, March 14, 2024 9:30 AM - Click to View Agenda ITEM SUMMARY SHEET COMMITTEE REPORT TO BOARD Resolution #2024-3812 Motion to approve the Westwood South affordable housing development project in the City of Pontiac recommended by the Housing Trust Fund Board in an amount not to exceed $2,500,000. ITEM CATEGORY SPONSORED BY Resolution Penny Luebs INTRODUCTION AND BACKGROUND The 819 South LLC, an affiliate of Cartessa Real Estate Company, submitted an application requesting $2,500,000 in gap funding for its Westwood South mixed-income, workforce housing development located at 833 Golf Drive, Pontiac, MI. County staff reviewed and scored the 819 South LLC’s application and recommended a Housing Trust Fund investment in an amount not to exceed $2,500,000 of LFRF funds. Westwood South is a planned, 72-unit mixed-income, workforce housing development that will reserve 25% of the units (18 units) for residents earning less than 80% of the area median income (AMI). Westwood South will place 18 project-based vouchers from the Pontiac Housing Commission on the property and also accept vouchers for all other units from other regional housing commissions. Westwood South does not require any tax abatement, payment in lieu of taxes, housing tax credits, or other subsidies to be economically feasible. Westwood South will represent an approximately $10,100,000 investment into mixed-income, workforce housing in Oakland County using Housing Trust Funds and private financial resources. On February 21, 2024 the Housing Trust Fund Board approved a resolution recommending an investment in an amount not to exceed $2,500,000 of LFRF funds to the Oakland County Board of Commissioners for the Westwood South mixed-income, workforce housing development. POLICY ANALYSIS The Oakland County Board of Commissioners authorized the creation of the Housing Trust Fund via 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 and a one-time Fiscal Year 2023 appropriation in the amount of $13,000,000 of 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 Westwood South affordable housing development project through a written contract by December 31, 2024, and expended by December 31, 2026. 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 - 3/14/2024 AGENDA DEADLINE: 03/14/2024 9:30 AM ATTACHMENTS 1. Westwood South HTF Resolution COMMITTEE TRACKING 2024-03-05 Public Health & Safety - Recommend to Board 2024-03-14 Full Board - Adopt Motioned by: Commissioner Philip Weipert Seconded by: Commissioner Linnie Taylor Yes: David Woodward, Penny Luebs, Karen Joliat, Kristen Nelson, Christine Long, Robert Hoffman, Philip Weipert, Gwen Markham, Angela Powell, William Miller III, Yolanda Smith Charles, Charles Cavell, Ajay Raman, Ann Erickson Gault, Linnie Taylor (15) No: None (0) Abstain: None (0) Absent: Michael Spisz, Marcia Gershenson, Brendan Johnson, Michael Gingell (4) Passed OAKLAND TOGETHER HOUSING TRUST FUND February 21, 2024 Resolution: #2024-003 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 authorize d 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) and a one-time Fiscal Year 2023 appropriation in the amount of $13,000,000 in SLFRF Funds 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 819 South LLC, an affiliate of Cartessa Real Estate Company, submitted an application requesting $2,500,000 in gap funding for the development of Westwood South, an affordable/workforce housing development to be located at 833/835/837 Golf Drive, Pontiac, MI (Development); and WHEREAS the Development will include 72 mixed -income rental units, of which, 25% will receive project-based vouchers while the remaining units will be targeted generally for households earning between 60% of the area median income (AMI) and 120% AMI, but not income restricted; and WHEREAS the Development will also accept housing choice vouchers for the non -project based voucher units; and WHEREAS the Development will represent an approximately $10,500,000 investment into Affordable/workforce housing in Oakland County using SLFRF Funds and private financial sources; and WHEREAS County staff reviewed and scored the Development’s application and recommend an investment in an amount not to exceed $2,500,000 of gap funding 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 authorizing an investment of SLFRF funds for Westwood South, an affordable/workforce housing development, in an amount not to exceed $2,500,000. BE IT FURTHER RESOLVED that the SLFRF funds are subject to the availability of SLFRF funds, must be committed to the Development through written contract by December 31, 2024, and expended by December 31, 2026. __________________________ __________________________ Kyle Hines, Chairperson Sarah Pounds, Secretary Sarah B Pounds (Feb 27, 2024 17:06 EST) Westwood South HTF Resolution - clean Final Audit Report 2024-02-27 Created:2024-02-27 By:Kyle Hines (hinesk@oakgov.com) Status:Signed Transaction ID:CBJCHBCAABAAJF0plU_1MJkj7kSQATNDtNPCFy1_QQiG "Westwood South HTF Resolution - clean" History Document created by Kyle Hines (hinesk@oakgov.com) 2024-02-27 - 9:34:07 PM GMT Document e-signed by Kyle Hines (hinesk@oakgov.com) Signature Date: 2024-02-27 - 9:34:40 PM GMT - Time Source: server Document emailed to sarahbethpounds@gmail.com for signature 2024-02-27 - 9:34:41 PM GMT Email viewed by sarahbethpounds@gmail.com 2024-02-27 - 9:34:47 PM GMT Signer sarahbethpounds@gmail.com entered name at signing as Sarah B Pounds 2024-02-27 - 10:06:25 PM GMT Document e-signed by Sarah B Pounds (sarahbethpounds@gmail.com) Signature Date: 2024-02-27 - 10:06:27 PM GMT - Time Source: server Agreement completed. 2024-02-27 - 10:06:27 PM GMT