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Council approves amendment adding disaster-recovery CDBG funds to local multifamily projects
Summary
Clear Lake approved a staff-recommended amendment to its HCD CDBG-DR agreement that adds freed-up state funds and allows a previously short-funded multifamily project to move forward pending tax-credit awards.
The council unanimously approved a procedural amendment to the city’s contract with the California Department of Housing and Community Development to include additional CDBG disaster-recovery multifamily housing funds.
City staff explained the background: after the 2017 disaster award the city received about $1.15 million; a subsequent county allocation was relinquished and distributed. One applicant (Danco/Oak Valley Villas) had been funded; the Chelsea Investments project still needed additional funds. Staff said HCD recently freed up enough funds to fully fund the Chelsea project and merge the applications to simplify administration.
Staff noted that much of the project financing is expected to come from tax credits and that Chelsea intends to apply in the March funding round; if awarded, the project would be positioned to begin construction next summer. Councilmember Kramer moved to approve resolution 2022-47 authorizing the allocation and execution of amended grant agreements; the motion was seconded and passed unanimously.
The council asked few questions; discussion focused on sequencing and making sure projects are ready to apply for tax credits and that administrative steps are in place to disburse the additional funds once HCD’s paperwork is complete.
