Attachment 12 - Report to Sunnyvale Housing & Human Services CommissionapP SUlyy
T
14 -0340
City of Sunnyvale
Agenda Item
Agenda Date: 3/26/2014
REPORT TO HOUSING AND HUMAN SERVICES COMMISSION
SUBJECT
CDBG Capital Project Funding Recommendations
BACKGROUND
The City released a Request for Proposals (RFP) in January 2014 to solicit proposals of affordable
housing and /or capital projects to be funded with CDBG funds next fiscal year (FY 14 -15). The
funding estimated to be available through this RFP consists of approximately $350,000 in FY 2014-
15 CDBG grant funds and $550,000 in the CDBG Housing Rehabilitation Revolving Loan Fund
(RLF). CDBG program income consists of payments received on outstanding housing rehabilitation
loans. Most of the program income received each year is deposited into the RLF, and is then
available for new housing rehabilitation activities. Because the RLF can only be used for housing
rehabilitation, staff recommends funding the rehabilitation proposals from the RLF, and the other
capital project proposals from next year's CDBG grant.
The City received four proposals in response to the RFP: Charities Housing submitted two housing
rehabilitation proposals, Bill Wilson Center submitted one housing rehabilitation proposal for two
sites, and Sunnyvale Community Services submitted a proposal for a Sunnyvale workforce
development program for homeless jobseekers. The proposals are summarized briefly below, and
the full proposals are available on the Housing Division website at HUDProgramsJnSunnyvale.com .
Staff has evaluated and scored all proposals in accordance with the method set forth in the RFP.
The proposal evaluations, scores, and staff recommendations are summarized in Attachment 1.
Staffs recommendations are advisory to the commission. The commission's recommendations will
be incorporated into the draft FY 14 HUD Action Plan, which will be considered at its April meeting.
Council will consider the draft Action Plan and approve the final funding commitments following a
public hearing on May 6, 2014. The Action Plan must receive HUD approval before any funding can
be disbursed to the applicants. Following HUD approval, all final funding commitments will be
conditioned upon each project obtaining all necessary matching funds, obtaining required
environmental clearances and permits for the work proposed, and City approval of the final CDBG
loan or grant agreement with each applicant.
EXISTING POLICY
2010 -2015 Consolidated Plan:
Goal A Assist in the creation, improvement, and preservation of affordable housing for lower -
income and special needs households.
Goal B Alleviation of Homelessness
Goal D Expanding Economic Opportunities
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ATTACHMENT 12
14 -0340 Agenda Date: 3/26/2014
DISCUSSION
A brief description of each proposal and funding recommendation is provided below. The proposal
evaluations, staff scores, and summary of the recommendations are provided in Attachment 1 to this
report. The minimum matching ratio required of each proposal is 25 %, and half of that match, or
12.5% of the total project cost, should be in "cash ", while the balance may be in in -kind services,
donated goods, etc. The commission may choose to accept proposals that do not meet this
requirement, however this threshold, and the formula included in the RFP, was the basis for staffs
scoring on matching funds.
Housing Rehabilitation Proposals:
As mentioned above, three housing rehabilitation proposals were received, requesting a combined
total of $480,000 in funding. Staff estimates that approximately $550,000 in RLF funds will be
available for housing rehabilitation projects by the end of this fiscal year_
Stoney Pine Apartments
Applicant: Charities Housing Development Corporation
Project Location: 267 W. California Street, Sunnyvale
Project Type: Housing Rehabilitation (Rental Multi- family)
Funding Request: $201,000
Match: $85,000 ($55,000 cash, $30,000 in -kind)
Matching Ratio: 30% Total Project Cost: $286,000
The applicant, Charities Housing, has extensive experience in the development, management,
and rehabilitation of affordable and special needs housing. The proposal includes a request for
$201,000 in CDBG funds for rehabilitation of Stoney Pine Apartments. The proposed scope of
work includes: replace or refinish cabinetry in all units, replace flooring in 10 units, install solar
panels, and paint the exterior of the building. The project will help maintain and preserve
affordable rental housing occupied by 23 very low- income households with at least one
household member with severe development disabilities. A total of 34 occupants currently live at
this property. Installation of the solar panels will create significant savings in electricity costs,
which Charities proposes to deposit into a replacement reserve. The property's reserve is
currently underfunded due to the extremely low rents paid by the project's HUD 811 funding
source, which do not adequately cover future maintenance and repair costs or provide any
surplus cash for reserve deposits.
Recommended Award: $201,000 in RLF
2. Senior Group Homes
Applicant:
Project Location:
Project Type:
Funding Request
Match:
Matching Ratio:
Charities Housing
1230 Klee Court and 1675 S. Wolfe Road, Sunnyvale
Housing Rehabilitation (Rental Group Homes)
$165,000
$71,000 ($45,000 cash, $26,000 in -kind)
30% Total Project Cost: $236,000
The applicant, Charities Housing, is currently the property manager of these group homes, and
has entered into an agreement to acquire them from the current property owner by late 2014.
Both homes have outstanding City loans and affordability restrictions on title that require them to
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14 -0340 Agenda Date: 3/26/2014
be used as affordable senior housing for long -term periods. The proposal includes a request for
$165,000 for the following scope of work: install new flooring and solar panels at both homes,
paint the exterior and interior of both homes, remodel the kitchen at 1230 Klee Court to improve
accessibility, install accessibility improvements in bathrooms, re -roof the Wolfe Road home, and
install accessibility ramps and replace the fencing at both properties. The applicant has
committed $71,000, or 30 %, in matching funds. The senior group homes house nine extremely
low- income seniors. The proposed renovation work will better meet the needs of the senior
residents, allowing them to safely and comfortably remain in the homes as long as possible.
Recommended Award: $165,000 in RLF
This award would be conditioned on the applicant's acquiring fee title to both homes prior to
execution of loan documents or beginning work on the project, in addition to all the standard
conditions noted above.
3. Transitional Housin
Applicant:
Project Location:
Project Type:
Funding Request
Match:
Matching Ratio:
Bill Wilson Center
1284 and 1294 Jackson Street, Santa Clara; and
3551 Shafer Drive, Santa Clara
Housing Rehabilitation (3 Transitional Housing sites)
$114,000
$45,000 ($15,000 cash, $30,000 in -kind)
28% Total Project Cost: $159,000
The applicant, Bill Wilson Center (BWC), owns and operates a number of small group homes
and Transitional Housing Program (THP) rental properties throughout the county, several of
which are in Sunnyvale. BWC's proposal includes a request for $114,000 in City funding for
three THP sites located in the city of Santa Clara. The three properties, including two group
homes and one 5 -unit apartment building, house a total of 13 formerly homeless youth /young
adults. Two of the 13 current occupants originate from Sunnyvale households. One of the sites,
1284 Jackson Street, a 5 -unit apartment building, is a "Maternity Group Home" which receives
operating funds from the federal Health & Human Services Department, while 1294 Jackson St.
provides housing for young women and their newborns. The Shafer home provides transitional
housing to five homeless and at -risk youth with supportive housing and case management.
The total project cost for the proposed scope of work at all three sites is $159,000. This includes
$129,000 in hard costs, plus $30,000 in in -kind services. The scope of work for the hard costs
includes: $101,000 for rehabilitation work, including re- roofing, repair of water - damaged areas,
and various other repairs and safety upgrades, plus solar panel installation at 1284 Jackson St;
$7,000 for minor repairs and safety upgrades at 1294 Jackson Street; and $21,000 for
refurbishing the kitchen and installation of a high - efficiency heating /ventilation (HVAC) system at
the Shafer Drive home.
These sites serve formerly homeless youth by providing safe, supportive housing and rase
management with the overall goal of creating permanence and self - sufficiency in their lives. The
applicant committed 28% in matching funds for all three sites, of which one -third is a cash match
and two- thirds is in -kind services. Please see Attachment 1 for more detail. For the purpose of
the project evaluations, staff considered both Jackson Street properties to be one project "site"
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Agenda Date: 3/26/2014
and the Shafer Drive property to be the other site, as shown in the table in Attachment 1.
Recommended Award: $45,000 in RLF for the Jackson Street Homes
This award would be conditioned on the applicant securing all additional funding to complete the
scope of work at the Jackson Street homes, in addition to all the standard conditions noted
above.
Although the Bill Wilson Center provides very effective programs and is a highly respected
agency in the community, staff recommended only partial funding for this particular proposal for
several reasons: a) the properties are not located in Sunnyvale and the project would only
benefit 2 Sunnyvale clients; b) several other sources of matching funds are available for this
project, based on staffs research, including funds from the Housing Trust, the City of Santa
Clara CDBG, the properties' reserve funds, and "MASH credits° for solar panel installation; and
c) the Shafer Drive property does not appear to qualify for CDBG housing rehabilitation funds at
this time, because the proposed scope of work does not include correction of any health and
safety code deficiencies. However, it appears that the applicant has strong chances of obtaining
funding from other sources to pay for the remainder of the work needed at the Jackson Street
and /or Shafer Drive properties. Therefore, for these reasons, staff is recommending to fund
approximately 50% of the requested amount for the Jackson Street homes.
Other Capital Project Proposals:
Only one proposal was received under this category, from Sunnyvale Community Services (SCS).
SCS qualifies as Sunnyvale Community -Based Development Organization (CBDO) according to the
CDBG regulations, because its service area and board membership are primarily Sunnyvale- based.
CBDO activities are considered economic development activities, and include job training, job search
assistance, and similar employment - supportive services, such as: child care, transportation, and
provision of supplies and /or licenses needed for particular jobs. CBDO activities are eligible for
capital project funding from the CDBG entitlement grant, but are not eligible for RLF funds. The
proposed Work First Sunnyvale Program qualifies for CDBG funding under the CBDO category.
4. Work First Sunnyvale (WFS)
Applicant: Sunnyvale Community Services
Project Site: 725 Kifer Road, Sunnyvale
Project Type: Job Training & Placement Program
Funding Request: $321,727
Sunnyvale Community Services requested a grant of $321,727 in CDBG funds for its Work First
Sunnyvale (WFS) Program in partnership with Downtown Streets Team, a non - profit agency that
provides work - readiness training and services for homeless people. If this proposal is funded,
next fiscal year will be the third year that the WFS program will provide job readiness training, job
skills training, and job placement for at least fifty low- income individuals who are homeless,
recently homeless, or at risk of homelessness in Sunnyvale. The program has successfully
provided job training and placement assistance to over 92 low- income individuals during the first
two years of its operations. During that time, 18 of the program's clients have moved into
permanent housing and 23 have obtained paid employment. This program addresses the
Consolidated Plan goals of alleviating homelessness and expanding economic opportunities.
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14 -0340
Agenda Date: 3/26/2014
Both partner agencies have the organizational capacity, skills and experience to continue
successfully implementing this program, which addresses one of the City's most critical
community needs. The funding requested would allow the program to serve at least 50
individuals next year with job training programs, increase the number of participants in the work
readiness program by 50% to 16 team members, and provide additional hours of case
management services for up to 12 individuals. These case management services complement
the city's Tenant -Based Rental Assistance (TBRA) program by helping clients find, apply for, and
maintain rental housing, with rent payment assistance from the TBRA program.
Recommended Award: $322,000 in FY 2014 CDBG grant funds
ALTERNATIVES
1. Approve the CDBG funding recommendations described above and summarized in Attachment 1.
2. Approve the CDBG funding recommendations described above and summarized in Attachment 1,
with modifications as directed by the Commission.
RECOMMENDATION
Alternative 1: Approve the CDBG Funding recommendations described above and summarized in
Attachment 1.
The commission's recommendations will be incorporated into the draft 2014 HUD Action Plan, which
will be considered at the April meeting.
Prepared by: Katrina L. Ardina, Housing Programs Analyst
Reviewed by: Suzanne Ise, Housing Officer
Approved by: Hanson Hom, Director, Community Development
ATTACHMENTS [Enter Attachment Titles here. Delete if not needed.]
1. Proposal Comparison Table
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CHARITIES HOUSING
February 14, 2014
City of Sunnyvale Housing Division
Atten: Katrina Ardina, Housing Programs Analyst
456 W. Olive Ave
Sunnyvale, CA 94088 -3707
Ref: 267 W. California St., Sunnyvale CA 94086
1230 Klee Ct., Sunnyvale CA 94087
1675 South Wolfe Road, Sunnyvale CA 94087
Dear Ms. Ardina,
Please find the enclosed application on behalf of Charities Housing Development Corporation for the City of
Sunnyvale's 2014 -2015 funding for CDBG. We are respectfully requesting funds in the amount of $366,000.
The receipt of these funds will enable us to
• Put solar panels up for all three properties, assuring a 100% electric energy savings to the properties
• Paint the exterior of all three properties
• install a new roof on 1675 South Wolfe Rd. Current roof is in poor shape
• Add exterior ramps to both Klee & Wolfe for better accessibility
• Install a new kitchen at 1230 Klee Ct. Current cabinets and appliances are in poor shape with limited
space and accessibility to cabinet interiors
• Update the bathrooms at Klee & Wolfe to allow them to better "age in place"
• Put new flooring in 10 units at Stoney Pine Villa Apartments, many of which have not been updated
since move in (July of 2001)
All of these updates will allow the properties to sustain their affordability and their useful life.
Thank you for your time and review of the enclosed materials. Please feel free to contact me at 408 -550 -8320
should you have any questions or need any additional information.
Sincerely,
Dan Wu, Executive Director
Charities Housing Development Corp.
1400 Parkmoor Ave. Suite 190
San Jose, CA 95126
(408) 550 -8319
SOBRATO CENgER FOR Nom,ROPI is " 5,.k JOSE 1400 PARK MMA'. EM E. SUITE 190 S..N' IOSE. CA 95126
r.zw: 408 -550 -8300 F:,x: 408-550- 8339 Yc3P.CH.BITIESH0USwO.0RG
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