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ECONOMIC AND URBAN DEVELOPMENT MEMORANDUM <br /> #06-70 <br /> April 10, 2006 <br /> TO: Honorable Mayor Osborne and City Council <br /> FROM: Steve Garm City Manager <br /> Dane Bragg, ssistant City Manager <br /> Vickie Buckingham, Assistant Direc or of Economic and Urban Development <br /> Richelle D. Irons,Neighborhood Redevelopment Manager �Y <br /> Randi Still, Neighborhood Program Specialist'�S <br /> SUBJECT: Allocation of HOME funds to NHDC--- East Clay&Webster <br /> RECOMMENDATION: <br /> Staff recommends approval of the attached resolution allocating funds to the Neighborhood <br /> Housing Development Corporation (NHDC) from a special HOME grant for permanent <br /> housing projects for the chronically homeless. The resolution provides $209,400 for <br /> construction of 14 supportive living apartments on Decatur's east side. <br /> BACKGROUND: <br /> On April 2, 2004, the City of Decatur was awarded $500,000 by the U.S. Department of <br /> Housing and Urban Development under a special competitive reallocation of HOME funds. <br /> These funds must be used by a certified CHDO to produce rental housing units for persons <br /> who are chronically homeless. NHDC is the only certified CHDO in the City of Decatur <br /> which has rental housing experience. Subsequently, NHDC has been working with the <br /> Chronic Homelessness Planning committee of the Decatur/Macon County Homeless Council <br /> to develop a strategy for best use for these funds. This cooperative effort has resulted in <br /> development of a Five Year Supportive Housing Plan for Chronically Homeless Persons in <br /> the City of Decatur. The East Clay & Webster project addresses one of the primary needs <br /> recognized in this report, supportive living apartments for formerly chronically homeless <br /> individuals who are able to live independently with limited supervision. <br /> Staff recommends the following: <br /> ♦ Allocating $209,400 in HOME funds to NHDC to purchase land and build new <br /> construction of one-bedroom units in a two-story building on vacant parcels at <br /> the corner of Cla and Webster. The units will be for individual lease to <br /> Y <br /> chronically homeless individuals whose lease payments will be funded by <br /> various governmental sources on behalf of the tenants. NHDC will own the <br /> buildings and will have the overall responsibility for implementing HOME <br /> guidelines, including a ten-year affordability period. NHDC will utilize <br /> Swartz Properties to provide operational and management services. Heritage <br /> Behavioral Health Center will provide and coordinate supportive services for <br />