| Staff Evaluation: |
To assist in the City Council's evaluation of the
proposals an overview of each proposal is provided and the strengths and
weaknesses are identified from a Staff perspective. Staff has assessed if
the proposals received meet the federal CDBG regulations, and if the proposals
comply with the City of Ashland 2000-2004 Consolidated Plan. Three areas
are evaluated for each proposal regarding compliance with federal regulations.
First the proposed projects must meet the national objective of the Community
Development Block Grant program. Second, all CDBG funded projects must be
an "eligible" use under the CDBG federal regulations. Finally, if the proposals
meet all federal requirements, then many federal regulations must be met
throughout the course of the project. For instance, all projects funded ,
in whole or in part, with CDBG dollars require an environmental review in
accordance with the National Environmental Policy Act (NEPA), construction
projects must use federal Davis-Bacon wage rates, and housing involving
structures built prior to 1978 must undergo lead-based paint abatement. Areas
of concern are described for each proposal. The City Council, can only award
CDBG funds to projects that meet all federal requirements.
Proposals
1) Rogue Valley Community Development Corporation
, Land Acquisition
The mission of the Rogue Valley Community Development Corporation
(RVCDC) to develop residential rental units for individuals or families at
60% or less of median income is consistent with the City of Ashland 2000-2004
Consolidated Plan. Goal 1 of the Consolidated Plan is "To increase the supply
of affordable rental housing for extremely low-, low- and moderate-income
families." The highest priority for use of the City's Community Development
Block Grant (CDBG) funds is to "Support the acquisition and development of
affordable rental housing units through a sustainable program, which retains
the units as affordable in perpetuity, such as a land trust."
The Rogue Valley Community Development Corporation (RVCDC) proposal
is to use $168,750 in CDBG funds to assist in purchasing a property (2001
Siskiyou Blvd.) for the construction of 10-11 rental units on the parcel.
This is the second site identified in a scattered site, 32 affordable rental
housing unit, development. Last year (FY 2002-2003) RVCDC was awarded the
years entire CDBG allocation of $168,750 to acquire the first identified
site (Lower Pines Trailer Park) upon which they proposed the construction
of 14-15 rental units available to individuals and families with incomes
equal to or less than 60% of area median income. RVCDC is searching for a
third site to accommodate the remaining 6-8 units to complete their 32 unit
project. It is important to note that the recommendation of the Housing
Commission, and ultimate award by the City Council, in 2002 to RVCDC was
for the acquisition of the Lower Pines site alone, and the relocation of
the existing residents. No commitment to allocate future CDBG awards for
the additional sites or additional units was made at that time. As such Staff
has evaluated the proposal to acquire 2001 Siskiyou Blvd. independent of
the other "phases" of the scattered site approach.
The present zoning of the subject property is R-3, High-Density
Multi-family Residential, which allows for up to 20 residential units per
acre. The site is ½ acre which allows for a base residential density
of 10 units. The proposal for 11 units on this site is intended to capitalize
on density bonus-points allocated for the provision of affordable housing.
Site Review approval is required for the development which involves completion
of a pre-application, a formal application, and review and approval by the
Ashland Planning Commission.
Of particular concern with the RVCDC proposal, as with all CDBG funded
projects, is the timeliness in which the proposed project is to be completed.
Federal regulations limit the City's maximum CDBG carryover to 150% the annual
grant. As a result, the project must be completed and the funds used in the
twelve-month period. While using funds in a "timely" manner as defined by
HUD is always a challenge, it becomes imperative with high cost
projects.
Staff has determined independently of the application that the subject
property (2001 Siskiyou Blvd.) is available for sale and can be developed
at the density proposed. However the preliminary site plan presented in the
application (pg A-8) has not been through the pre-application process to
establish feasibility and compliance with all City ordinances. The purchase
price of the property is not disclosed in the application (although the
application states $700,000 for this site + the Lower Pines Site). Staff
understands the subject property to be listed at approximately $385,000,
of which the applicant is seeking $168,750 in CDBG assistance.
Of minor concern on this site is the demolition or relocation of
the existing home on the site. As the redevelopment of the site will necessitate
the removal of the existing buildings the applicant will have to complete
a Demolition Review in conjunction with the Site Review approval for the
development of the 10-11 unit apartment complex. Fortunately the existing
home at 2001 Siskiyou Blvd. is not currently occupied and RVCDC has indicated
that an option for the purchase of the property includes the stipulation
that it not be rented (or otherwise occupied) prior to purchase. This eliminates
the complex issues involved with relocation under the Uniform Relocation
Act (URA) and therefore Staff believes this site acquisition proposal is
relatively straight forward.
RVCDC - 2001 Siskiyou Blvd.
Property |
Strengths |
Weaknesses |
-
Meets one of highest priorities in Consolidated Plan - provision of
affordable rental housing.
-
Provides a high density development along a major thoroughfare (Siskiyou
Blvd.) and therefore provides housing in close proximity to public
transportation.
-
The target group for this 11 unit site is families making less than
60% of median income.
-
Rental units developed will remain affordable for a minimum of 60yrs
with a deed restriction on the property.
-
RVCDC is proposing a scattered site Affordable Housing development
which distributes the units to be completed as opposed to a concentration
of affordable housing in any one area.
-
$10,000 Challenge Fund grant awarded to be applied toward pre-development
costs.
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-
$168,750 requested toward purchase price, the remainder of purchase
price has been not been secured to Staffs knowledge. In general most of the
required funding for the project has yet to be secured)
-
Preliminary development assessment is not complete, complex land-use
process at local level.
-
Application for 2003 Oregon Affordable Housing Tax Credits (OAHTC)
to be submitted in August 2003 (timeliness issue)
-
Administrative capacity issues, the large scale proposal is substantially
larger than any endeavor RVCDC has completed to date. However RVCDC is using
consultants experienced in such projects.
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2) RogueValley Community Development Corporation
, Technical Assistance
RVCDC submitted two applications during this funding round. The first,
for Land Acquisition, is outlined above. The second application RVCDC submitted
is a proposal to receive a total of $21,000 in CDBG funds to provide technical
assistance. The technical assistance funds, if awarded, would be used to
develop a relocation plan by Right-of-Way and Assoc. for the Lower Pines
trailer park site at a cost of $7500 (RVCDC was awarded $168,750 in 2002-2003
to acquire the Lower Pines trailer park property). Additionally RVCDC intends
to use technical assistance funds to contribute $6000 toward Architectural
costs to conduct preliminary site planning and complete the City pre-application
process for all sites related to the project (total architect costs estimated
at $10,800 of which $4800 to be covered by a Challenge Grant). RVCDC would
like to apply $7500 in CDBG funds to the development consultant fee of $15,000
(the remaining $7500 to be paid by RVCDC). The development consultant (Neilson
Group LLC) will direct the activities of the other consultants as well as
provide financing consultation and prepare applications for grants and City
Land Use Planning submittals.
Staff views this proposal as directly relating to the provision of
affordable housing, and as such is considered meeting the highest priority
need outlined in the Consolidated Plan.
Upon review of the proposal Staff finds the activities in this proposal
do not qualify under the "technical assistance" criteria. Technical assistance
as defined by HUD aims to increase the capacity of public or nonprofit entities
in carrying out eligible neighborhood or economic development activities.
These are activity-specific administrative costs related to carrying out
eligible CDBG activities, which are considered part of the cost of those
activities.
However, the particular uses identified do qualify as eligible uses
of CDBG funding as related to the provision of affordable housing.
As stated above the three activities include:
1) Relocation plan ($7,500) for the Lower Pines
Trailer Park Site
2) Architectural costs ($6,000) to conduct site planning and
complete the city pre-application process for all sites related to the
project
3) Development consultant fee ($7,500) to direct the activities
of the other consultants as well as provide financing consultation and prepare
the applications for grants and City Land Use Planning submittals.
It is staff's finding that the first 2 items, relocation planning
and architectural services are appropriate uses of the CDBG funding as their
completion is necessary prior to construction. The third item, development
consultant, is viewed by staff as a cost that is ongoing throughout the project
and as such is difficult to clearly distinguish a portion as a "pre-development"
cost. As such, after consultation with HUD, Staff has determined that CDBG
funding may not be the most appropriate source of funds for this particular
fee.
RVCDC - "Technical
Assistance" |
Strengths |
Weaknesses |
-
Will allow RVCDC to complete purchase of Lower Pines Property and
execute a relocation plan.
|
-
Consultant fee more of a total project related cost, therefore not
exclusively related to pre-development.
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3) Creative Alternatives
Foundation
The Creative Alternatives foundation is a non-profit organization
(501c3) established to "better serve the community and the area in which
we live". This organization applied for $85,000 to be used to complete required
street improvements and service improvements directly related to a 19 unit
senior housing project targeted to households (65 or over) with incomes between
40-80% of median income. Seven of the 19 apartments will be targeted to
households with incomes less than 50% of the area median income.
In this case the proposal to utilize CDBG funds to complete the required
street and service improvements is directly related to the creation of the
19 unit affordable senior housing project. Thus Staff finds that the proposal
is directly related to the provision of affordable housing as required by
Ashland's Consolidated Plan.
This project has received some applicable local land use approvals,
namely a zone change and completion of the pre-application. The Site Review
portion of their land use action was initially reviewed by the Planning
Commission and is to be presented to the Commission for final review in the
coming months.
The application indicates that Jackson County Housing Authority will
be providing professional management of the apartments. The applicant will
receive the land located at 631 Clay Street as a donation (valued at $300,000)
and anticipates receiving additional grants and tax credits to complete the
housing construction. Application for Oregon Affordable Housing Tax Credits
(OAHTC) was submitted in August 2002 for review and award in this fiscal
year.
On and off--site improvements proposed to be completed with CDBG
funds include, curb-gutter, storm drain, water and sewer extensions, and
sidewalk installation totaling $81,985 as listed below:
Excavation and haul off $3432
Rock placement and grading $2458
Shale, ¾ minus and DG $2416
Curb and Gutter $3130
Paving $3747
Sidewalk and approaches $4925
Storm Drain $4685
Electrical fees and Transformer $12900
Fire Sprinkler vault, hydrants $25960
Utilities from street to building $3058
Parking lot changes and striping $2134
City water, sewer and fees $5687
Subtotal $74532
Administration 10% $7453
TOTAL = $81,985
The use CDBG funds to pay for the installation of infrastructure
(e.g., water/sewer lines, streets and sidewalks) are eligible activities
(§570.201(c)). Portions of this proposed project are eligible under
the category Low-Moderate (L/M) Income Housing. The improvements exclusively
assists in the provision of housing to be occupied by L/M income households
at affordable rents upon completion. Site improvements to publicly-owned
land is acceptable provided the improvements are undertaken while the property
is in public ownership. Public improvements include streets, sidewalks, curbs
and gutters, park, playgrounds, water and sewer lines, flood and drainage
improvements, public parking lots, and utility lines. In this particular
proposal the subject property (631 Clay St.) is not under public ownership,
thus the improvements listed pertaining to actual on-site development are
not eligible, such as the private parking lot upgrades, on-site grading,
and utility extensions from the street to the building. Therefore these items,
and any other improvements on the private property, can not be funded through
the CDBG program. The use of CDBG funds for "administration" is also not
considered an eligible activity.
Staff believes the applicant is prepared to provide a breakdown of
which items are on public property at the public hearing. Initially staff
can clearly determine that of the $81,985 itemized, a minimum of $12,645
of the items listed are ineligible ($7,453 -admin, $2,134 - parking lot,
$3058 - utilities to building.) Additionally, it may be that the Fire Sprinkler
vault , water service, and hydrants ($25,960) are to be located upon the
subject property and would therefore not be eligible for CDBG assistance.
The itemization also lists fees that are proposed to be paid with CDBG funds.
It is Staffs understanding that these fees are not eligible under public
facility improvements as they are not technically "improvements". However
fees can be eligible uses under a special assessment of pre-award costs however
the reimbursement of fees would have to have been applied for separate of
the public improvements application.
In total staff believes approximately only $24,793 of the $81,985
cost may be eligible for reimbursement through the CDBG program as proposed.
This $24,793 relates entirely to the estimated cost of off site improvements
on the properties Clay Street frontage. Unfortunately these estimates were
not incorporating Davis-Bacon wage scales. All projects receiving more than
$2000 in federal assistance are required to provide Davis-Bacon wages.
Staff has some concern regarding the proximity of the site to the
100yr. Flood plain of Clay Creek. Although the subject property is outside
the flood plain, the flood plane does extend into the street frontage (public
right of way) adjacent to the property. As the actual proposed improvements
are likely to be outside of the floodplain environmental regulations relating
to developments within floodplains may not be a significant issue. However,
this has not be conclusively determined and would need to be resolved to
ascertain compliance with the National Environmental Policy Act (NEPA) through
an environmental review.
Staffs primary concerns with the project involve the timely expenditure
of funds. As the project site is on an unimproved street a more comprehensive
approach to the full street improvements has been suggested by the City Public
Works Department. The creation of a Local Improvement District (LID) for
improvements to the entire length of Clay Street (Ashland Street to Siskiyou
Blvd.) will allow the City to complete the improvements to Clay Street in
a more efficient and economical way than by having individual property frontages
improved independantly. The formation of a Clay Street LID has not yet occurred
and is not anticipated in the 2000-2004 Capital Improvements Plan. Therefore
Staff believes the actual improvements would not be completed until some
time after 2004. The anticipated date of initiation of these improvements
subsequent to the formation of a LID is undetermined. Should an award be
made to Creative Alternatives Foundation for these street improvements, the
CDBG funds would not be dispersed until such time as the improvements are
complete, and documentation is received that demonstrates that Davis-Bacon
wages were provided. For this reason Staff feels that it is highly likely
that an award of $24,793 for off-site public facility improvements would
contribute to Ashland's carryover of CDBG funds for a number of years. The
City must not accumulate more than 50% of our yearly allocation in carryover
or it is subject to recapture by HUD.
Should the funds be directed toward a Local Improvement District
(eligibility under review by HUD staff) the total project will receive more
than $2000 toward the full improvement of Clay Street. This will require
that the entire project be subject to Davis-Bacon requirements as well as
monitoring by City Staff for compliance with Federal requirements. The
improvement of Clay Street in its entirety will be considered an "Area Benefit
Activity". Under the area benefit criteria the public facility improvements
are to receive CDBG assistance only when it can be demonstrated that within
¼ mile of the improvements that at least 51% of the residents meet income
eligibility requirements (low-moderate incomes). The determination of the
income characteristics in the service area is to be demonstrated by conducting
a survey (door to door) of all households. At this point no determination
has been made as to whether the area qualifies for Federal assistance. It
is important to note that should the improvements be isolated to the frontage
of the proposed affordable housing project, these improvements are seen to
benefit the particular development (not the area) and would therefore be
eligible without completing an area benefit survey.
Creative Alternatives Foundation (CAF)-
631 Clay St. Improvements |
Strengths |
Weaknesses |
-
Meets one of highest priorities in Consolidated Plan - provision of
affordable rental housing.
-
The target group for this 19 unit site is seniors less than 80% of
area median income, of which 7 apts to be reserved for extremely low income
(less than 50% AMI) .Rental units developed will remain affordable for a
minimum of 51 yrs with a deed restriction on the property
-
Property for the development (631 Clay Street) is to be donated to
CAF with a value of approximately $300,000
-
Experienced contractor (Medinger Const.) selected, familiar in the
development of Affordable Senior Housing Projects.
-
Application for Oregon Affordable Housing Tax Credits (OAHTC) was
submitted in August 2002 for review and award in this fiscal year.
-
Completed Zone Change , preliminary application & initial review
by Planning Commission. Proposal very far along in planning process.
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-
Fees ineligible as a public facility improvement, On-site work ineligible
use of CDBG funds.
-
The public facilitiy improvements to be completed with CDBG funds
will not be undertaken until a Local Improvement District for full improvements
to Clay Street are complete, thus CDBG funds would not be expended until
2004-5 (timeliness issue)
-
Administrative capacity issues, the organization CAF has yet to accomplish
the development of housing.
-
Davis-Bacon wage scales not included in estimated construction costs
within the application.
-
Full Clay Street improvements (not just isolated to the site frontage)
would be considered area serving, therefore a door to door income survey
of all households within a ¼ mile of the improvements would be required
to determine that the area qualifies as Low-Moderate income.
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Housing Commission
Recommendations
The Housing Commission reviewed all three proposals at their regular
meeting on August 28, 2002 and have forwarded a recommendation to the City
Council to provide CDBG funds to each of the three proposals. Of the approximate
$214,000 in CDBG funds anticipated, the Housing Commission's recommendation
was to grant Rogue Valley Community Development Corporation (RVCDC) a total
of $186,250 ($172,750 toward land acquisition, and $13,500 toward predevelopment
costs), and an award of $27,750 to the Creative Alternatives Foundation (CAF)
for the off-site improvements to Clay Street required of a 19 unit Senior
affordable housing project.
RVCDC proposal #1 = $186,250
RVCDC proposal #2 = $13,500
CAF proposal #3 = $27,750
All members of the Housing Commission are supportive of each of the
three proposals and would like to find a way to grant funds to each proposal.
Although questions remained regarding the CAF proposal's ability to be completed
in a timely manner the Commission endeavored to award CAF the funds if it
would not jeopardize the 1.5 carryover rule (no more than 50% of the yearly
allocation in carryover permitted).
The Housing Commission determined that the two RVCDC proposals were
effectively "one project" as they both relate to the larger multi-phased
project. In this way, although the Commission opted to recommend awards for
all three proposals it was their finding that this recommendation was consistent
with the recent Consolidated Plan revisions that restrict the allocation
of awards to no more than two projects.
The completed Minutes from the August 28th Housing Commission meeting
are included as an attachment to this Council Communication.
Staff Recommendations:
In the past the City has awarded funds annually to multiple agencies
through the Budget Committee process. In 2001 the City Council approved
modifications to the Consolidated plan that included a reduction in the number
of projects to be awarded CDBG funds in a given program year to one, potentially
two.
This modification was made to simplify the grant process, to be more
effective in specific programs with what funds are available and to help
the City be compliant with federal reporting requirements. With this modification
in mind, as well as concerns relating to the timely expenditure of funds
Staff recommends that the RVCDC proposal for land acquisition at 2001 Siskiyou
Blvd (#1). receive a CDBG award in this program year. Additionally staff
views the "technical assistance" request (#2) by RVCDC as having merit in
ensuring that the federal and local requirements for their proposed development
at the Lower Pines site are met. Particularly the relocation plan and preliminary
architectural services assistance would assist the applicant in complying
with requirements that have been established to be completed prior to site
acquisition. However, staff would suggest that any award be tied to the submittal
of information delineating pre-development and actual construction related
architectural design work.
Staff concurs with the Housing Commission that the two RVCDC proposals
can be considered related to one project. This relates directly to the
Consolidated Plan amendment restricting awards to one, potentially two, projects
per year.
The Creative Alternatives Foundation (CAF) proposal also has merit,
unfortunately many items identified in their proposal are not eligible for
CDBG assistance. Staff believes approximately $24,750 plus $3000 in engineering
costs ($27,750 total) relates entirely to the off site improvements of Clay
Street and would be an eligible use of CDBG funds. The allocation of awards
to more than one proposals would add administrative burden to City Staff,
as such the relatively small grant award of 27,750 to CAF would require the
same measure of review as a large scale project. Particularly this project
would involve Environmental Reviews, Davis Bacon wage monitoring, and potentially
an area of benefit survey be completed prior to the final determination of
eligibility (in the case of a complete street improvement from Ashland St.
to Siskiyou Blvd). Thus Staff is not recommending an award to CAF at this
time however as a number of the improvements identified in their application
are eligible uses of funds, it is suggested that CAF apply for CDBG funds
during the program year that construction is actually to occur.
Staff recommends directing the available funds toward land acquisition
and pre-development cost for RVCDCs multi-phased affordable housing
project.
Staff Award
Recommendations:
RVCDC proposal #1 = $200,500
RVCDC proposal #2 = $13,500
CAF proposal #3 = $0 in this program year |
