REPORT TO THE CITY COUNCIL
FROM: JENNIFER CLARK, Director
Planning and Development Department
BY: PHIL SKEI, Assistant Director
Planning and Development Department
CORRINA NUNEZ, Project Manager
Community Development Division
SUBJECT
Title
Approve First Amendment to the $1.8 million HOME Investment Partnerships Program Agreement with Blythe Village LP to increase the HOME funding contribution by an additional $800,000, per funding Resolution No. 2024-085, for a total of $2.6 million in HOME Investment Partnership Program funding to the project. (District 1)
Body
RECOMMENDATION
Staff recommends the City Council Approve First Amendment (Exhibit A - First Amendment to HOME Agreement - Blythe Village) to the $1.8 million HOME Investment Partnerships (HOME) Program Agreement (Exhibit B - HOME Agreement - Blythe Village) with Blythe Village LP to increase the HOME funding by an additional $800,000, per Resolution No. 2024-085 approved by Council on May 2, 2024, item 2-G, ID 24-319 (Exhibit C - Resolution for Financial Commitment - Blythe Village).
EXECUTIVE SUMMARY
The First Amendment to the HOME Program Agreement will provide for an additional $800,000 to the project as outlined in Resolution 2024-085. Total project cost is $14,532,689. In return for the City’s investment of HOME Program funds, the City will receive 11 HOME-assisted units as provided for in the HOME Agreement recorded on June 13, 2024, as instrument number 2024-0052232 and HOME Declaration of Restrictions recorded on the property on June 13, 2024, as instrument number 2024-0052234.
BACKGROUND
On May 2, 2024, the City Council approved several items related to the Blythe Village Project: 1) adopted the California Environmental Quality Act (CEQA) exemption, 2) approved a $400,000 Community Development Block Grant (CDBG) Program Agreement, 3) approved a $1.8 million HOME Program Agreement, and 4) adopted an $800,000 funding Resolution No. 2024-085.
In accordance with the Resolution for financial commitment, the source of the additional $800,000 has been identified as HOME Program funds. The First Amendment to the HOME Agreement will provide for an increase of $800,000 in HOME funding for a total of $2.6 million in HOME funding to the project. The additional $800,000 in HOME Program funds will be provided as a 4th position residual receipts loan, at 3% interest, with the balance due and payable in full at a 55-year maturity date. The developer will execute a separate Promissory Note for the additional $800,000.
In return for the City’s total investment of $2.6 million in HOME Program funds, the City will receive 11 HOME-assisted units as provided for the HOME Agreement recorded on June 13, 2024, as instrument number 2024-0052232 and HOME Declaration of Restrictions recorded on the property on June 13, 2024, as instrument number 2024-0052234.
All other terms and conditions of the HOME Agreement remain the same including the $14,532,689 project budget attached to the HOME Agreement as Exhibit C - Project Budget: $9,406,055 construction loan, $726,634 deferred equity, $1,400,000 general partnership capital, $400,000 in the CDBG Program funds, $1,800,000 in HOME Program funds, and $800,000 in proposed City affordable housing funds.
Blythe Village will have a total of 67 3-bed/2-bath affordable and market rate rental units. Unit size will range from 933 square feet to 1,120 square feet depending on the location within the development. The residential units will be contained within a 4.8-arce gated community at the northeast corner of N. Blythe Avenue and W. Saginaw Way in west central Fresno. Development will also include 142 parking spaces, of which 80 will be covered, bicycle racks/lockers, landscaping, and irrigation. In addition, construction materials will be durable and environmentally friendly and incorporate the City of Fresno Green building standards and Universal Design features. The City’s Community Development Division will inspect the completed property annually for housing quality standards and overall property management.
ENVIRONMENTAL FINDINGS
On May 2, 2024, the Council adopted a CEQA exemption for the project activities. On March 29, 2024, the City received HUD authorization to use grant funds on the proposed Blythe Village project.
LOCAL PREFERENCE
Local preference was not used based on the conditions of federal funding.
FISCAL IMPACT
The HOME Program funds for the proposed Blythe Village project were appropriated in the Planning and Development Department’s Fiscal Year 2025 Budget.
Attachments:
Exhibit A - First Amendment to HOME Investment Partnerships Program Agreement - Blythe Village
Exhibit B - HOME Agreement - Blythe Village
Exhibit C - Resolution for Funding Commitment - Blythe Village