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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