HomeMy WebLinkAbout01-236 AGENDA BILL
BREMERTON CITY COUNCIL
1. SUBJECT: (...O,~r,h],"["O FOR AGENDA OF: NOVEMBER 14, 2001
HOME Recommendation- ~ ORIGINATING DEPT.: DED
~.0~ I~¢o~,C, ~oo$'t ~,..~5"~ { %o~f'~ ORIGINATOR: Deborah Peavler-Stewart ~~--~
DATE SUBMITTED: October 1, 2001
2. CLEARANCES: 3. EXI-HBITS:
Attorn~,~6,~,.. Options for the Development of 704 Chester
City
Fiscal and Budget Committ~~,0~./q?' 10/10/01
Operations Committee d_~ ~ 10/10/01
HEARD AT S~UDY SESSION 11/07/01
4. SUMMARY STATEMENT AND REQUIREMENT FOR COUNCIL ACTION:
As a member of the Kitsap County HOME Consortium, the City of Bremerton receives an annual
allocation of HOME funds from the Department of Housing and Urban Development (HUD) to expand
the supply of safe, sanitary and affordable housing for low income persons.
The Low Income Housing Institute (LIHI) is requesting a deferred loan of $592,850 in HOME funds to
purchase the property at 704 Chester to develop as affordable family housing and $33,000 to make
immediate repairs after acquisition. LIHI will subsequently pursue a £mancing plan to obtain over
$5,800,000 to complete a major renovation of the proper~y to provide 57 units of affordable housing.
The City Council approved a HOME grant to LIHI in January to determine the feasibility of
purchasing the property. The feasibility study has been completed and two options, 1) rehabilitation of
the existing structure as affordable family housing and 2) demolition and reconstruction of new units
as senior housing, were considered. The option with demolition has a funding gap of approximately
$1,300,000 which makes it infeasible.
Affordable safe family housing is needed in Bremerton. The City's HOME policy allows for projects
that promote rehabilitation and renovation of existing buildings. LIHI has the demonstrated ability to
develop the project. We recommend approval oftbe funds.
8. RECOMMENDATION:
fflove to allocate $625,850..~om the HOME program to LIHI to acquire the property at 704 Chester ,-~o
make immediate repairs and,arevelop into safe affordable family housing.
9. RESPONSIBLE OFFICIAL:
ENFORCEMENT OFFICIA L:
EXPIRATION DATE:
REVIEW DATE:
10. NOT~CE OF ACTION
PULLED TABLED APPROVEDI~OISAPPROVE D __ AMENDED
COUNCIL DIRECTIVE:
AGENDA BILL NO 0[ ~ o~
2. CLEARANCE COMMENTS:
None
5. IMPACT ON NON-PASSAGE:
Project will not be developed
6. IMPACT ON STAI,'¥1NG~ BUDGETS~ FACILIT]ES~ EQUIPMENT OR Orl'~l~R RESOURCES:
None
7. RESEARCH SOURCES: