City Council Meeting: May 9, 2006
Agenda Item:
1-D
To: Mayor and City Council
From: Jeff Mathieu, Director Resource Management Department
Subject: Grant Funding from the
Recommended
Action
It is recommended that the City
Council
1. Adopt the attached resolution authorizing
the City Manager to apply for approximately $1,350,000 in Building Equity and Growth
in Neighborhoods (BEGIN) program funds from the State of
2. Upon
award authorize the City Manager to enter into a grant agreement with
the State and approve all other documents necessary to obtain these funds for
the proposed Community Corporation of
Executive
Summary
The Community Corporation of
Santa Monica (CCSM) will develop approximately forty-five units of affordable
home ownership in the next two to four years at
Discussion
The BEGIN Program is a
California Department of Housing and Community Development program designed to
foster partnerships between local jurisdictions and housing developers to
reduce cost and increase the supply of new home ownership opportunities for low
and moderate income households. The
current BEGIN Notice of Availability of Funds provides $27 million in
Proposition 46 funds to cities and counties for mortgage assistance funds for
eligible developments.
Previous Council Action
At the October 25, 2005 meeting, City Council and the
Redevelopment Agency approved the proposed concept of an affordable
homeownership development of approximately forty units to be developed by CCSM
at
The anticipated financing of the development includes a City
subsidy for the land, down payments and private mortgage funds obtained by the
buyers, and, if the BEGIN Grant is approved, a State subsidy of up to $30,000
per unit in the form of mortgage assistance loans to the buyers through the
BEGIN Program. The BEGIN assistance to
the buyer will be in the form of a deferred payment loan with a thirty year
term and 1% to 3% deferred simple interest.
Commission Action
The Housing Commission, at their April 20, 2006 meeting,
unanimously recommended that the City Council authorize the City Manager to
apply for and accept BEGIN Program funds to assist the proposed
Budget/Financial Impact
City/Redevelopment
Agency financial assistance to this proposed development will be provided by
one or more of the available housing trust funds for affordable housing. By the City obtaining BEGIN program funds,
the City’s overall subsidy to the development would be reduced by up to $30,000
per unit or approximately $1,350,000.
Upon award and acceptance of Grant, revenues will be increased by
$1,350,000 and expenditures appropriated by the same amount.
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Approved: |
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Forwarded
to Council: |
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Director,
Resource Management Department |
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P. City Manager |