DATE: March 27, 2018
TO: Board of Mayor and Aldermen
FROM: Eric Stuckey, City Administrator
Chris Bridgewater, Director of Building and Neigh
Kathleen Sauseda, Housing Development Coordinator
SUBJECT:
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Consideration Of Contract No. 2018-0025 With Hard Bargain Association For Community Based Development Organization (CBDO) Funding In The Amount Of $115,952 Which Will Be Used To Construct Two New Single Family Homes In The Hard Bargain Neighborhood. (03/27/18 WS)
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Purpose
The purpose of this memorandum is the provide the Board of Mayor and Aldermen (BOMA) with information to consider a contract with the Hard Bargain Association for Community Based Development Organization (CBDO) funding in the amount of $115,952.
Background
The City solicited proposals from qualified non-profit firms that are certified as CBDO(s) to develop affordable housing for low to moderate-income residents of the City of Franklin. The City received two proposals, one from Community Housing Partnership and one from Hard Bargain Association. This funding will be leveraged with bank funding to insure the home is kept affordable. With these two homes in place there will be 5 new homes within a “Bungalow Court” that meet the affordability standards of the Department of Housing and Urban Development. This home will be sold to qualified buyer that meets the median family income for affordable/workforce housing.
Consistent with the objectives of the City of Franklin’s Consolidated Plan for Housing and Community Development, the City awards funding to a qualified non-profit organization. The agreements facilitate funding Hard Bargain Association with $115,952.00 through the Community Block Development Organization portion of the Community Development Block Grant, (CDBG). These funds will be used for construction of two homes in the Planned Unit Development on Mount Hope Street. The homes are in accordance with Envision Franklin’s “long-term vision that will direct future development in a way that strengthens the City and creates exceptional places for people.”
In the last five years, Hard Bargain Association has received approximately $340,000 in CDBG program funds and funds from the City. This has resulted in 5 new homes being built within the Hard Bargain neighborhood which were sold to low-to-moderate income residents. These homes are deed restricted for twenty years.
Financial Impact
This contract will be funded in full by the Community Development Block Grant (CDBG) through the Department of Housing and Urban Development (HUD).
Recommendation
Staff recommends approval of this contract.