WHEREAS, the City of Atlanta ("City") desires to increase the overall affordable housing units;
WHEREAS, pursuant to 15-R-3737 and 17-R-4116, the City entered into a US Department of Housing and Urban Development ("HUD") HOME Investment Partnerships Program ("HOME") contractual agreement with Quest Community Development Organization, Inc. ("Quest"), for the purpose of facilitating the redevelopment of affordable multi-family housing located at 339 Holly Street; and
WHEREAS, HUD requires the City to set aside at least 15% of HOME funds to certified Community Housing Development Organization ("CHDO") developers to maintain compliance with HOME rules; and
WHEREAS, Quest maintains an active CHDO certification on all current projects with the City and this certification helps the City meet its set-aside commitments; and
WHEREAS, Quest was awarded Four Million Three Hundred Eighty-Five Thousand Eight Hundred and Eighty-One Dollars and Zero Cents ($4,385,881.00) in funds from the Georgia Department of Community Affairs and the City previously awarded One Million Three Hundred Ninety-Five Thousand Eight Hundred and Twelve Dollars and Seventy-Nine Cents ($1,395,812.79) in HOME funds to this project; and
WHEREAS, pursuant to 19-R-3013, the City provided an additional Seven Hundred Thousand Dollars and Zero Cents ($700,000.00) in HOME funds to make the project financially feasible, bringing the total HO y1E contract amount to Tv1o I\1illion 1'-Jinety-Five Thousand Eight Hundred and Twelve Dollars and Seventy-Nine Cents ($2,095,812.79); and
WHEREAS, the project was originally intended to be developed by Quest as an adaptive reuse project in 2015; and
WHEREAS, the City's previous contractual agreement with Quest will end on June 30, 2019 with a HUD project completion date of June 30, 2019, but additional time is needed to complete a demolition and new construction; and
WHEREAS, the City as a Participating Jurisdiction ("PJ") applied for a one-year extension from
HUD to allow time to complete the project but the extension was denied; and
WHEREAS, HUD required the previous contract to be involuntarily terminated and the Thirty-Four Thousand Seven Hundred and Forty-Nine Dollars and Zero Cents ($34,749.00) of predevelopment expenses to be remitted immediately; and
WHEREAS, HUD has given the City permission to fund the project with funds from later HOME program funding years in the same aggregate amount provided that the City submits a new contractual agreement in compliance with HUD's underwriting guidance and rules; and
WHEREAS, Quest created a subsidiary, 339 Holly Street QHA, LLC. ("QHA") for the purpose of entering into new contractual agreements, receiving funds, and managing the project originally intended for development by Quest; and
WHEREAS, QHA will now demolish and develop a new multi-family construction project at 339
Holly Street; and
WHEREAS, the current scope of the development significantly increases the project cost and requires QHA to seek additional funding; and
WHEREAS, the submission of a new contractual agreement with QHA represents the City's effort to ensure complete compliance with HUD HOME rules; and
WHEREAS, OHCD has ensured that the proposed development aligns with the requirements of HOME funding, including but not limited to: 1) all necessary financing has been secured; 2) a budget and schedule have been established; 3) construction is scheduled to start within 12 months;
4) the experience and financial capacity of the developer has been evaluated; and 5) an
underwriting and subsidy layering analysis has been completed; and
WHEREAS, the Department of Finance, Office of Grants Management will submit a request for a Release of Funds from HUD to fund the development; and
WHEREAS, to ensure the City expends HOME funds in a timely manner and meets current and future CHDO set-aside requirements from HUD, the Department of City Planning ("DCP"), Office of Housing and Community Development ("OHCD") desires to enter into a new HOME contractual agreement with QHA for a total H01v1E contract amount not to exceed Two I\1illion Ninety-Five Thousand Eight Hundred and Twelve Dollars and Seventy-Nine Cents ($2,095,812.79) for a period not to exceed twenty-four (24) months from the execution of this agreement; and
WHEREAS, this project will provide a total of forty (40) units of affordable housing to low income households, including seniors and veterans, in the Historic Grove Park Neighborhood and furthers the City's commitment to affordable housing.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ATLANTA, GEORGIA, HEREBY ORDAINS:
SECTION 1. The Mayor or her designee, on behalf of the City of Atlanta ("City"), is authorized to execute a contractual agreement with 339 Holly Street QHA, LLC. ("QHA") in an amount not to exceed Two Million Ninety-Five Thousand Eight Hundred and Twelve Dollars and Seventy-Nine Cents ($2,095,812.79) for a term not to exceed twenty-four (24) months.
SECTION 2. The City's Department of Finance, Office of Grants Management is authorized to reallocate US Department of Housing and Urban Development ("HUD") HOME Investment Partnerships Program ("HOME") funds previously designated for Quest Community Development Organization, Inc. ("Quest") and other available HOME funds.
QHA is to perform all work under this agreement and it shall be assigned to, charged to, and paid from the following accounts:
339 Holly Street QHA,LLC.
339 Holly Street QHA, LLC.
339 Holly Street QHA,LLC.
339 Holly Street QHA,LLC.
SECTION 3. The City Attorney or her designee, is authorized to prepare the appropriate agreements pursuant to the intent of this legislation for execution by the Mayor or her designee, to be approved by the City Attorney or her designee, as to form.
SECTION 4. This agreement shall not become binding on the City and the City shall incur no obligation or liability upon same until such time as the contract has been approved by the City Attorney or her designee as to form, signed by the Mayor or her designee, attested to by the Municipal Clerk and delivered to 339 Holly Street QHA, LLC.