HomeMy WebLinkAbout10093*ORDINANCE NO. 10093
AN ORDINANCE APPROVING AN AFFORDABLE HOUSING
DEVELOPMENT AGREEMENT BETWEEN POSADA INC., A NON-
PROFIT CORPORATION, AND THE CITY OF PUEBLO, A MUNICIPAL
CORPORATION, AND AUTHORIZING THE MAYOR TO EXECUTE
SAME
WHEREAS, there exists a need for affordable housing in the City of Pueblo; and
WHEREAS, there exists a need to construct affordable housing in the City of Pueblo; and
WHEREAS, the City of Pueblo receives HOME Investment Partnership Grant (HOME)
funds and HOME Community Housing Development Organization (CHDO) funds from the U.S.
Department of Housing and Urban Development for the creation and retention of affordable
housing; NOW, THEREFORE,
BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1.
The City of Pueblo Affordable Housing Development Agreement (“Agreement”) between
Posada Inc., a Colorado non-profit corporation, and the City of Pueblo, a Municipal Corporation,
for the development of affordable housing, a copy of which is attached hereto and incorporated
herein, having been approved as to form by the City Attorney, is hereby approved.
SECTION 2.
The $329,373.10 in HOME Community Housing Development Organization funds, the
$162,500.00 in City grant matching funds, and the $113,126.90 in HOME Entitlement funds are
available in Fund 251, the $45,000.00 from Fund 252 is available and all will be dedicated to this
Agreement and the associated project in accordance therewith.
SECTION 3.
The Mayor is hereby authorized to execute the Agreement and all associated documents
in the name and on behalf of the City of Pueblo, where the Mayor may execute the documents by
electronic signature and such electronic signature shall be attributable to the Mayor and the City
of Pueblo. The City Clerk is authorized to affix the seal of the City thereto and attest same.
SECTION 4.
The officers and staff of the City are authorized to perform any and all acts consistent with
this Ordinance to implement the policies and procedures described herein.
SECTION 5
If any section, paragraph, clause, or provision of this Ordinance shall for any reason be
held to be invalid or unenforceable, the invalidity or unenforceability of such section, paragraph,
clause, or provision shall not affect any of the remaining provisions of this Ordinance.
SECTION 6.
This Ordinance shall become effective on the date of final action by the Mayor and City
Council.
Action by City Council:
Introduced and initial adoption of Ordinance by City Council on December 13, 2021.
Final adoption of Ordinance by City Council on December 27, 2021 .
President of City Council
Action by the Mayor:
☒ Approved on December 30, 2021 .
□ Disapproved on based on the following objections:
_
Mayor
Action by City Council After Disapproval by the Mayor:
□ Council did not act to override the Mayor's veto.
□ Ordinance re-adopted on a vote of , on
□ Council action on _______ failed to override the Mayor’s veto.
President of City Council
ATTEST
Deputy City Clerk
City Clerk’s Office Item # S-2
Background Paper for Proposed
Ordinance
COUNCIL MEETING DATE: December 13, 2021
TO: President Lawrence W. Atencio and Members of City Council
CC: Nicholas A. Gradisar, Mayor
VIA: Marisa Stoller, City Clerk
FROM: Bryan Gallagher, Director, Housing and Citizen Services
SUBJECT: AN ORDINANCE APPROVING AN AFFORDABLE HOUSING DEVELOPMENT
AGREEMENT BETWEEN POSADA INC., A NON-PROFIT CORPORATION, AND
THE CITY OF PUEBLO, A MUNICIPAL CORPORATION, AND AUTHORIZING
THE MAYOR TO EXECUTE SAME
SUMMARY:
This Ordinance approves the City of Pueblo’s Affordable Housing Development Agreement with
Posada Inc. for the development of a sixteen (16) unit affordable housing rental project known as
the Sunset Motel Redevelopment.
PREVIOUS COUNCIL ACTION:
The City Council has not taken any previous action on this matter.
BACKGROUND:
In October of 2021, the Department of Housing and Citizen Services issued a Notice of Funding
Availability (NOFA) under the HOME Program. Posada Inc. applied for HOME funds and HOME
Community Housing Development Organization (CHDO) funds for the redevelopment of a 16-unit
rental project to be known as the Sunset Senior SRO Housing Development. HOME funds will
assist ten (10) of the units. This Project will serve senior individuals at or below 50% of the area
median income (AMI). The development of the affordable housing is in partnership with the State
Division of Housing.
Total project costs for the residential units are approximately $1.2 million and are being funded
through multiple sources:
Total Project Sources - Permanent Financing: Perm
City Grant Funds (HOME CHDO) $ 329,373.10
City Grant Funds (HOME) $ 113,126.90
City Matching Funds $ 162,500.00
City 252 Account Funds $ 45,000.00
Division of Housing Loan Funds $ 298,850.00
Bank Financing/Owner Equity $ 255,000.00
$ 1,172,933.00
FINANCIAL IMPLICATIONS:
The City HOME Entitlement funds and the City HOME CHDO funds are available in the 251 Fund,
and are comprised of HOME grant funds, program income, and City match contributions.
BOARD/COMMISSION RECOMMENDATION:
Not applicable to this Ordinance .
STAKEHOLDER PROCESS:
Not applicable to this Ordinance.
ALTERNATIVES:
Not applicable to this Ordinance.
RECOMMENDATION:
The Department of Housing and Citizen Services recommends approval of the Ordinance.
ATTACHMENTS:
Attachment 1: City of Pueblo Affordable Housing Development Agreement (CHDO)
Attachment 2: Deed of Trust
Attachment 3: Promissory Note