Glendale City Council approved three agreements required for a $31 million housing project.
The three agreements support the Bethany Crossing Project, planned affordable housing in Glendale on 5 acres at 69th Avenue and Bethany Home Road.
Glendale’s contribution of $390,437 is a small portion of the total budget.
Vicki Rios, Glendale’s assistant city manager, delivered the resolution at the council’s Feb.25 meeting.
According to the agenda, the city receives an annual allocation of Home Investment Partnership Program (HOME) funds as a member of the Maricopa HOME Consortium. In fiscal year 2019, the city received $669,968 in allocation, a portion which was made available to external agencies for programs and projects assisting lower-income Glendale residents.
UMOM New Day Centers is an organization whose mission is to prevent and end homelessness with strategies and housing solutions for families, according to its website. Helping Hands Housing Services (HHHS), a subsidiary of UMOM New Day Centers, applied for HOME funds to construct the Bethany Crossing Project, according to the agenda. The proposal is for 72 multi-family units.
According to the agenda, council previously approved a $390,437 May 14, 2019, allocation of HOME funds to the project. However, the city must adhere to federal HOME regulations requiring the city to address several systematic requirements., which has a total budget of $30 million.
These include, according to the agenda, completing an environmental assessment of the site and obtaining authority from HUD to expend funds, securing the funding with appropriate lien instruments, ensuring the units remain affordable and tenants receive certain mandated protections.
According to the agenda, the environmental assessment is nearly complete and city staff have been working closely with HHHS to complete the next step to commit the city’s funding to the project.
To do so, the City and HHHS must execute three documents: A development agreement, a subordination agreement and a Declaration of Covenants and Restrictions, according to the agenda.
The development agreement includes a description of all the HOME requirements, establishes the total budget, the project scope and timeline of completion, according to the agenda. It also includes a deed of trust and promissory note securing the city’s funding and commits the terms of the loan.
According to the agreement, rents will be set by HUD guidelines.
The agreement shows the city contribution is relatively small, as the total project budget is $31 million. According to the agreement, UMOM will be “obtaining the remainder of project funds from equity funding made available through an allocation of Low Income Housing Tax Credits, private permanent financing and gap financing from the State of Arizona.”
Construction is scheduled to begin this March and be completed next summer, when first tenants will move in.
Glendale City Council approved the resolution unanimously.