Memorandum

City of Lawrence

City Manager’s Office

TO:	Diane Stoddard, Interim City Manager
CC:	Scott McCullough, Planning and Development Services Director
FROM:	Casey Toomay, Assistant City Manager
DATE:	February 25, 2016
RE:	Affordable Housing Advisory Board Recommendation for Demonstration Project

Award $100,000 from the Affordable Housing Trust Fund for an affordable housing demonstration project as follows: $50,000 to Tenants to Homeowners and $50,000 to Habitat for Humanity; and authorize the Interim City Manager to execute agreements for the use of City funds.

Background

On January 19, 2016, the City Commission authorized staff to solicit Request for Proposals (RFP) for an affordable housing demonstration project. The RFP was distributed through DemandStar, the on-line tool the City uses to administer bids, quotes, and RFPs and emailed directly to interested agencies and developers. Only one proposal was received. The Affordable Housing Advisory Board discussed the proposal at their meeting on February 22, 2016.

Proposal Summary

The proposal is from a partnership of five nonprofit agencies – Tenants to Homeowners, Habitat for Humanity, Family Promise, Lawrence Douglas County Housing Authority, and Willow Domestic Violence Center. The $100,000 of City funds would be used to leverage additional dollars to create three permanently affordable homes on a site at 908 La Salle Street. There is currently a blighted structure on the site. An application for a demolition permit is in progress. Pending approval, there are five non-confirming pre-existing lots that are able to be developed on the site. This proposal would build detached family-sized rental properties on two lots and one unit that will be sold as a homeownership unit to an eligible Habitat family on another lot.

Board Recommendation

Four of the agencies applying for funds are represented on the Affordable Housing Advisory Board, who reviewed the proposal. In order to avoid a conflict, the representative of Tenants to Homeowners, Lawrence Douglas County Housing Authority, Habitat for Humanity, and Family Promise recused themselves from discussion and voting on the proposal.

The remaining members of the Board evaluated the proposal according to the criteria in the RFP. They were pleased with the application and overall presentation of the applicant. They felt all of the applicant agencies are highly qualified, have the ability to complete the project as outlined, and have produced high quality projects previously. The creation of three family housing units meets the purpose of the Affordable Housing Trust Fund. The proposal would be a partnership between five agencies and the City and would leverage an additional $350,000. The project would positively impact public opinion about affordable housing. Therefore, the Board is recommending that the City Commission proceed with the proposed project.

Next Steps

If approved, staff would enter into agreements with Tenants to Homeowners and Habitat for Humanity, for the use of City funds. Pending removal of the existing structure on the property, construction is expected to take six months. The anticipated date for a Family Dedication event for the units is the end of 2016.

Project Funding

The project would be funded from the Affordable Housing Trust Fund, authorized by the City Commission in 2015.

Action Requested