ACTION REQUESTED:
Title
Communication from the City Manager and the Community Development Director with a Request for the Following:
A. APPROVE a GRANT AWARD, in the Amount of $2,045,017.00, in HOME-ARP Funding to Phoenix Community Development Services for PHOENIX MANOR (Council District 3); and,
B. APPROVE the HOME-ARP PLAN to Submit to the Department of Housing and Urban Development (HUD).
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BACKGROUND:
As part of the American Rescue Plan, additional funding was provided to the City of Peoria for the HOME-ARP program. This program is based on the HOME program but has unique regulations to focus the funding for individuals and families experiencing homelessness and for other qualifying populations, including those fleeing domestic violence, those at risk of homelessness, and veterans.
In early 2022, City staff began working on the required HOME-ARP plan. The plan included both a review of data and a comprehensive outreach strategy with agencies that provide services to qualifying populations. A public comment period was also held to solicit input from the public. Both the data and the input received had a common theme of a lack of affordable housing, especially for families experiencing homelessness in our community.
In October 2022, City staff released an RFP for funding. Based on the input received, the funding in the RFP was available for affordable housing development. One proposal was received from Phoenix Community Development Services (Phoenix CDS) for the rehabilitation of the former Methodist College Building to become Phoenix Manor.
A. APPROVE a GRANT AWARD in the amount of $2,045,017 in HOME-ARP funding to Phoenix Community Development Services for Phoenix Manor.
The application from Phoenix CDS is for the rehabilitation of the former Methodist College Building (415 St. Mark Court) into 55 units of permanent housing and supportive services for adults and families experiencing homelessness. The 7-story building is currently vacant. The project will include 10 studios, 10 one-bedroom, 11 two-bedroom, and 24 three-bedroom units.
In addition, common space on the ground floor and basement will include a comprehensive healthcare “café” providing a wide range of healthcare services, office space for individual and group supportive services provided by Phoenix CDS and other collaborative partner agencies, property management office, a multi-faceted fitness center, a computer lab, a multi-purpose activity room, common laundry, and additional storage for all units. There is a licensed operating child-care center that will remain on the property.
The HOME-ARP funds will be used for rehabilitation of the building. The Special Use for the property was approved in November 2021. The estimated total project cost is over $24 million.
Phoenix CDS is the largest supportive housing and homeless services provider in the Tri-County Region. This project will create an opportunity for the local Homeless Continuum of Care (CoC) to functionally end family chronic homelessness in Peoria.
B. APPROVE the HOME-ARP Plan to submit to the Department of Housing and Urban Development (HUD).
To receive the HOME-ARP funds, a HOME-ARP plan must be submitted and approved by HUD. HUD provided a plan template that was used by staff to gather the required data, agency consultations, and public input.
Once an application for funding was received, the proposed plan was updated with additional details of the proposed project including preferences and the tenant selection plan to be used by Phoenix CDS for the project. If this project were to not move forward for any reason, the HOME-ARP plan can be amended, resent to Council for approval, and resubmitted for HUD approval.
Once the plan is submitted and approved, the City will receive the HOME-ARP funding for staff administrative costs and to reimburse eligible costs for the selected project.
FINANCIAL IMPACT: $2,045,017 in HOME-ARP will be awarded to Phoenix CDS
NEIGHBORHOOD CONCERNS: The project responds to neighborhood concerns of individuals and families experiencing homelessness in our community.
IMPACT IF APPROVED: Phoenix CDS will be awarded HOME-ARP funds and the HOME-ARP plan will be submitted to HUD.
IMPACT IF DENIED: Phoenix CDS will not be awarded HOME-ARP funds and the HOME-ARP plan will not be submitted to HUD.
ALTERNATIVES: None identified at this time.
EEO CERTIFICATION NUMBER:
WHICH OF THE GOALS IDENTIFIED IN THE COUNCIL’S 2017 - 2032 STRATEGIC PLAN DOES THIS RECOMMENDATION ADVANCE?
1. Financially Sound City
2. Beautiful Peoria
3. Choose an item.
WHICH CRITICAL SUCCESS FACTOR(S) FROM THE COMPREHENSIVE PLAN DOES THIS RECOMMENDATION IMPLEMENT?
1. Reinvest in neighborhoods.
2. Have an efficient government.
3. Choose an item.
DEPARTMENT: Community Development