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Home My WebLink AboutR-1993-091 Grant / HUD / Rehab / StateRESOLUTION NO. 93-91 A RESOLUTION authorizing and directing the City Manager of the City of Yakima to file an Application with the Washington State Department of Community Development for funding for a rental rehabilitation program. WHEREAS,the City of Yakima contemplates a rental rehabilitation program for which federal funding is available from the United States Department of Housing and Urban Development, through the Washington State Department of Community Development, and WHEREAS,the City Council of the City of Yakima deems it to be in the best interests of the City that an application be filed for funding for the purpose mentioned above, now therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: R.A. Zais, Jr., City Manager of the City of Yakima, is hereby authorized and directed to execute and file the attached application documents, including all understandings and assurances contained therein, with the Washington State Department of Community Development for funding for the purpose mentioned above; and he further is hereby designated as the official representative of the City to act in connection with that grant request and to provide such additional information as may be required. ADOPTED BY THE CITY COUNCIL this24th day of August 1993. ATTEST: Mayor City Clerk CITY OF YAKIMA OFFICE OF HOUSING AND NEIGHBORHOOD CONSERVATION RENTAL REHABILITATION PROGRAM PRELIMINARY APPLICATION 112 SOUTH 8TH STREET YAKIMA, WA 98901 (509) 575-6101 AUGUST 26, 1993 EOLIAL HOUSING OPPORTUNITY Check here if McKinney_ Check here if LIHTC__ WASHINGTON STATE HOUSING ASSISTANCE PROGRAM/AFFORDABLE HOUSING PROGRAM/HOME PROGRAM PROJECT SUMMARY City of Yakima Office of Applicant:flso, & Ntiahborhood Conser. Address:112 S. 8th St. Yakima WA 98901 Telephone:(509) 575-6101 Tax I.D.#:91-6001293 Project Summary/Overview: COutact:pixie Krac:ht. Block Grant Mctr Ad.dress:112 South 8th St, Yakina,L WA 98901 Telephone 0(5 9) 575-6101 Project Name:ggLtal RehabilitatiaLL The rental rehabilitation program would use State Home Program dollars in conjunction with monies contributed by local lenders to provide a combined rehabilitation loan to investors to rehabilitate substandard rental units resulting in rental units that are decent, safe, sanitary and affordable to very low income families. Type of Applicant: Project Category: Property Status Local Government Public Housing Authority Nonprofit Organization Tribal Housingf Organization X Rental Housing X Acquisition Owner -Occupied Rehabilitation Homeless Shelter New Construction Other (Describe) Privately Owned Publicly Owned Vacant Structure Vacant Property Project Location/Address: Project Legislative District: Target Area, East of 16th Avenue within City limits. Target Population Income Levels Number of Ullljrtgt ,}Jousehold Income At or below 80% of Median At or below 50% of Median 20 At or below 30% of Median 20 No :Income Other (describe) Total Units Special Needs Population: Low and very low income 16,400 9,800 Length of Commitment to Serve Target Population: ____30 Years HOUSING ASSISTANCE PROGRAM/AFFORDABLE HOUSING PROGRAM/HOMEPROGRAM SOURCES AND USES STATEMENT FUND SOURCES: COMMITTED CONDITIONAL* PROPOSED State HTF Program $ N/A $ N/A $ 250,000 Other State $ -0- $ -0- $ -0- $ -0- $ -0- $ -0- Federal CDBG $ 270,000 $ - 0 - $ - 0 - Local Government $ - 0 - $ - 0 - $ - 0 - Applicant $ - 0 - $ - 0 - $ - 0 - Private Lenders $ 260,000 $ 260,000 $ - 0 - Investor $ 120.000 $ 120.000 $ -0- Subtotals $ 650,000 $ 380,000 $ 250,000 TOTAL PROJECT COST: $ 1,280,000 Uses of Financing: Acquisition $ -0- Pre-Development $ 40,000 New Construction $ -0- Rehabilitation $1,200,000 Project Management $ 20,000 Development Costs $ -0- Services $ -0- Operating Support $ -0- Administration $ -0- Other Closing Costs $ 20.000 TOTAL PROJECT COST: $1,280,000 *Please explain with detail the uses, terms and conditions of conditional commitments. The funding commitments listed as conditional are based on the approval of matching funds to the State Grant, the other funds listed as committed have been affirmed under agreement. WASHINGTON STATE HOUSING ASSISTANCE PROGRAM/AFFORDABLE HOUSING PROGRAM/HOME PROGRAM Housing Operating Budget Name of Project: Rental Rehabilitation L Residential Income Unit Type/Number/Rent x 12 Gross Potential Income Less Vacancy Rate (_%) Other Revenue (Describe) Effective Gross Income Ji. Operating Expenses Insurance Heat Electric Water and Sewer Garbage IRemoval Repairs Maintenance Replacement Reserve Operating Reserve Management Services Other___ Total Operating Costs Real Estate Taxes ,Net Operating income IJ I_Debt Service ( % on for years) IL Cash Flow Per Year Year 1 Year 5 Please attach a page of assumptions which support the budget. Y_kar 10 Each investor loan will be different, based on unit size, existing building, needed loan, etc. WASHINGTON STATE HOUSING ASSISTANOE PROGRAM/AFFORDABLE HOUSING PROGRAM/HOME PROGRAM Proposed Protect Budget: HAP/AHP/HOME Other State Federal Local Public Applicant Private Total $ 250,000 $ -0- $ 270,000 $ -0- $ -0- $ 760.000 $1,280,000 Housing • Acquisition/Land • Acquisition/Structure • Pre -Development Costs • New Construction • Rehabilitation • Other Development Costs • Operating Subsidy • Services • Security Deposit Guarantee • Other (Specify) Technical Assistance Project Management TOTAL Programs and Agency: Other State Federal CDBG Local Public Private Yakima Federal. West One. Key Bank, Pioneer. 1st Savings. lst interstate, and Seafirst, 'Private Investors. State HTF Budget [PROGRAM DOLLARS ONLY) Approval of Authorized Officials: Signature Name Richard A. Zais $ -0- $ -0- $ 250,000 Title City Manager Date August 24. 1993 • Describe your project, detailing the use of, and need for, HTF dollars. Please do your best to describe the housing to be developed, it's relation to your goal, and 'projected costs. The Rental Rehabilitation Program will offer affordable monies to investors for the rehabilitation of rental units so they can afford to rent decent, safe, sanitary dwelling units to low and very low income families at a cost that is affordable to the families income. The program would join in partnership with local lenders to combine funding resources to snake monies available and affordable to owners for use in the rehabilitation of their rental units. The average unit cost for rehabilitation would be $25,000. A needed rehabilitation foam of $25,000 to an investor based on their existing cash flow equates to a private loan of approximately $15,000 which is insufficient to improve the property. With a subsidy 1:he new loan becomes affordable and adequate to do the needed repairs, which provide affordable rents. Without this subsidy, investors will continue to rent substandard units to recover existing debt service and maintain rent structures that will relate to market demand which is unaffordable to our very low income community families. The partnership developed by this program between the private and public sector is one of the main objectives of both State and Federal governments in alleviating the tremendous housing needs in our communitys. • Provide a schedule for your project's implementation, including funding commitments, construction timeline, completion. The Rental Rehabilitation program has a past history in loan underwriting, packaging and construction. This experience removes the learning curve and program implementation can start immediately. The seven lenders have committed the funds for matching and our office presently have 35 investors waiting to start their projects. Date Activit/ November - 1993 Mate Contract December - 1993 Forty rental units processed through loans proc. . ed. construgliga August - 1994 completed anioccupancy put in�piace.