• Proposed 2020 and 2021 Affordable Housing Fund awards totaling $600,000 would support three temporary shelter service projects. The funding would help address homelessness for an estimated 600 individuals by providing temporary shelter, case management, services and outreach.
• Proposed 2020 and 2021 Affordable Housing Fund awards totaling $5.625 million would support housing production and preservation projects. The projects would add 279 new units serving low-income families and individuals in treatment for mental health or substance abuse and preserve 142 existing units for low income families and homeless individuals.
• The proposed $5.625 million for housing production and preservation projects will produce at total of 107 City restricted affordable housing units for households at or less than 50% AMI.

Goal 3, Objective 3.2: Improve services available to underserved or vulnerable residents.

Council action is requested to approve proposed Affordable Housing Fund awards for three temporary shelter services projects and 11 housing production and preservation projects.

Proposed 2020 and 2021 Temporary Shelter Services Awards

The Affordable Housing Fund Administrative and Financial Plan includes an annual allocation of $300,000 for temporary shelter projects and services to prevent or address homelessness. The City released a request for applications in October 2020 for eligible projects, combining 2020 and 2021 funds for a total of $600,000 for temporary shelter projects. These projects provide temporary shelter, case management and services to help participants work toward self-sufficiency.

The City received three applications, from Outsiders Inn, Share's Women's Housing and Transition (WHAT) program and XChange Recovery. A review committee made up of 27 community members and City employees has recommended awards of $202,277 for Outsiders Inn, $200,250 for Share and $197,473 for XChange Recovery. The three projects would serve an estimated 300 individuals in shelter and another 300 through street outreach. See attached summaries for a detailed description of each project.

Proposed 2020 and 2021 Temporary Shelter Services Projects

Proposed 2020 and 2021 Housing Production and Preservation Awards

Proposed awards totaling $5.625 million would support 11 housing production and preservation projects that were prioritized by the prioritization committee.

The $5.625 million to support these projects is available from 2020 and 2021 levy years. There is also an additional $2.295 million reserved for eligible low-income housing tax credit projects, project cost over runs due to increased cost and other projects. Mercy-PeaceHealth Family Housing and Central Park Place were selected as Federal Low-Income Housing Tax Credit Projects.

The projected outcome of the Affordable Housing Fund awards is 421 units (279 new, 142 preserved) serving households earning up to 50% AMI. Of these 421 units, 107 will be City covenanted to maintain affordable housing stock. Two of the projects (Mercy-PeaceHealth Family Housing, and Central Park Place) previously received Affordable Housing Fund awards and require the additional funding to move forward. The City will place affordability covenants on additional 50% AMI units for projects that receive an increased award. See attached summaries for a detailed description of each project.

Proposed 2020 and 2021 Housing Production and Preservation Projects

1. Provide shelter, case management, and services to an estimated 300 people who are homeless and outreach to help an estimated 300 people experiencing homelessness gain shelter and access self-sufficiency services to increase long-term housing stability.
2. Support the construction of 173 units serving and families earning up to 50% AMI, and the preservation of 142 units for low income families and very low-income homeless individuals. 
3. Allow the five housing production and preservation projects to receive other funding the developers have applied for. The Affordable Housing Funds are "first in" funding, which would be needed for the project to access other sources of funds.
4. Will maximize the impact of City funds by leveraging federal tax credits and other sources of funding. The $5.625 million from the Affordable Housing Fund supports housing production and preservation projects that will total more than $85 million in improvements.