Council approves 55‑year affordability covenant for city‑owned 6th & 8th Street apartments and awards window replacement contract

The City Council voted to record a regulatory agreement that will restrict rents at the city‑owned 6th & 8th Street apartments for 55 years, satisfying requirements tied to the city’s Permanent Local Housing Allocation (PLHA) funding. Assistant to the City Manager Thomas Garcia said the city previously secured $406,000 from PLHA cycles two through four, and staff expects a possible $72,000 from a pending fifth‑cycle award.

The agreement requires recorded affordability restrictions based on area median income (AMI) calculations. Garcia said the area median income used was $91,000, and staff described income and rent‑cap calculations in the meeting materials. He told council the covenant will remain attached to the property if the city ever sells it.

Why it matters: the recorded covenant preserves affordability for a 55‑year term and enables the city to use PLHA funds for capital improvements. Council voted 4‑0 to approve the regulatory agreement and to allow staff to record the document.

Immediately after the agreement, the council awarded Discount Door & Window a $49,932 contract (with a recommended 15% contingency) to replace failing windows that did not meet energy‑efficiency standards. Staff said the project will be funded from PLHA grant monies already received and that improvements will begin once the recorded covenant is in place. Council expressed interest in a prioritized list of follow‑up improvements (kitchen and bathroom work, appliance replacement) and asked staff to return with an action plan for remaining PLHA funds.

Local context: staff said the apartments are occupied and that the city will manage the properties and enforce covenants. Council recorded the vote approving the regulatory agreement 4‑0 and the window contract 4‑0.