REPORT TO COUNCIL
SUBJECT
Title
Action to reallocate Community Development Block Grant funds and to amend the Contribution Agreement with Riverwood Grove Associates to Increase the Not to Exceed Community Development Block Grant (CDBG) Funding Amount From $350,000 to $950,000.
Report
BACKGROUND
On May 9, 2023, City Council approved the 2023/2024 Annual Action Plan (RTC# 23-181) which recommended Community Development Block Grant (CDBG) funding for Riverwood Grove apartments (also referred to as MidPen) for energy efficiency improvements in the amount of $350,000. The Riverwood Grove complex consists of 71 affordable rental apartments. The property manager is planning to eliminate gas usage at the property to conserve energy, reduce environmental impacts, and to improve indoor air quality for residents. This project helps address the City's Consolidated Plan goals of Improvements to Affordable Housing for the benefit of low/moderate income residents. The project will help eliminate gas usage at the property by making upgrades to the electrical panel systems. This will facilitate switching major heating and cooling systems to electric. This upgrade has been requested by Riverwood Grove management to lower operating costs over time.
On August 27, 2024, City Council approved the Sobrato Family Living Center rehab project (RTC# 24-612) for $843,000. This project was for bathroom, kitchen, windows and balcony rehabilitation. The project experienced delays and some tenants were not willing to temporarily relocate for the rehabilitation process. It became apparent that this project was not viable and that CDBG funds would need to be reallocated quickly. The agreement was not finalized, and staff looked where to pivot the money for timely spending.
Due to slow spending of CDBG funds, the Department of Housing and Urban Development (HUD) required the City to create a CDBG Timeliness Workout Plan. Staff prepared a spending plan, and HUD approved it December 2024. Th...
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