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HomeMy WebLinkAboutMN-SPCC-2018-05-30COMMON COUNCIL PROCEEDINGS CITY OF ITHACA, NEW YORK Special Meeting 6:00 p.m. May 30, 2018 PRESENT: Mayor Myrick Alderpersons (7) Brock, McGonigal, Murtagh, Nguyen, Gearhart, Kerslick, Lewis OTHERS PRESENT: City Clerk – Conley Holcomb City Attorney – Lavine Deputy Director of Planning & Development Director – Nicholas Community Development Director – Bohn EXCUSED: Alderpersons (3) Fleming, Mohlenhoff, Smith PLEDGE OF ALLEGIANCE: Mayor Myrick led all present in the Pledge of Allegiance to the American Flag. SPECIAL ORDER OF BUSINESS: 2.1 Approval of Amendment #3 to the 2017 Housing & Urban Development (HUD) Action Plan - Ithaca Neighborhood Housing Services (INHS) Scattered Sites Phase II Project - Resolution By Alderperson Lewis: Seconded by Alderperson Brock WHEREAS, the Ithaca Urban Renewal Agency (IURA) recommends approval of an amendment to the 2017 HUD Action Plan to authorize a loan of up to $160,000 to Ithaca Neighborhood Housing Services, Inc. (INHS) for the Scattered Site Preservation Phase II project (Project) with funds to be derived from the IURA-administered Community Development Revolving Loan Fund; and WHEREAS, the Project will renovate, reconstruct or replace some, or all, of the existing rental housing units located at 502 W. MLK Jr./State Street, 203-209 Elm Street, 406 S. Plain Street, 111 W. Clinton Street, 227 S. Geneva Street and 301 S. Geneva Street; and WHEREAS, the City has contracted with the IURA to administer, implement and monitor the City’s HUD Entitlement program in compliance with all applicable regulations; and WHEREAS, the City adopts an Action Plan annually that identifies a specific list of budgeted community development activities funded from the HUD E ntitlement program; and WHEREAS, a change in activity funding of more than $25,000 in the Action Plan requires Common Council approval; and WHEREAS, the IURA recommends the addition of the Project as a new activity funded at $160,000 in the 2017 Action Plan; and WHEREAS, the IURA-Administered Community Development Revolving Loan Fund (CD-RLF) utilizes CDBG funds to make small business loans, but is not authorized to make affordable housing loans; and WHEREAS, the IURA recommends reallocating up to $160,000 from the CD-RLF to the 2017 Action Plan to fund the Project; and WHEREAS, CDBG funds are proposed to be used for reimbursement of professional fees and soft costs; and May 30, 2018 2 WHEREAS, conducting environmental, engineering, architectural and other feasibilit y studies for an affordable housing project where such activities do not commit any physical change is a Type II action under the City Environmental Quality Review Ordinance, so no further environmental review of this action is required; now, therefore be it RESOLVED, That the Common Council for the City of Ithaca hereby approves the following IURA-recommended amendment to the 2017 HUD Action Plan: Project: INHS Scattered Site Preservation Phase II affordable housing project Sponsor: Ithaca Neighborhood Housing Services, Inc. Amount: $160,000 Description: Loan assistance for professional fees and other soft costs for an affordable housing project ; and, be it further RESOLVED, That funding shall be derived by transferring up to $160,000 from the IURA Community Development Revolving Loan Fund to the 2017 HUD Action Plan account. Community Development Director Bohn explained that this action was needed prior to the June Common Council meeting as there is a June 1, 2018 deadline to disburse CDBG funds. The Scattered Site Preservation Phase 2 Project is targeted toward the rehabilitation of existing affordable rental housing. This will result in a 30-year minimum requirement that housing stays affordable. It will be an interest only loan until the end of the 30-year term where the balance of the loan will become due. A vote on the Resolution resulted as follows: Carried Unanimously ADJOURNMENT: On a motion the meeting adjourned at 6:10 p.m. ______________________________ _______________________________ Julie Conley Holcomb, CMC Svante L. Myrick City Clerk Mayor