REPORT TO THE HOUSING AND COMMUNITY DEVELOPMENT COMMISSION April 27, 2016 FROM: JENNIFER K. CLARK, Director Development and Resource Management Department BY: JOSE TRUJILLO, Manager Housing and Community Development Division SUBJECT ..Title Recommend approval of Amendment No. I to the HOME Investment Partnerships (HOME) Program, Community Housing Development Organization (CHDO) Agreement with Habitat for Humanity Fresno, Inc. granting a time extension for the completion of the Laval/Belgravia Single-Family Housing project ..Body RECOMMENDATIONS Staff recommends the Housing and Community Development Commission (HCDC) recommend approval to the City Council of Amendment No. 1 (Exhibit "A") to the August 27, 2013, HOME CHDO Agreement with Habitat for Humanity Fresno, Inc., (Habitat), granting a time extension for completion of the project from May 1, 2016 to June 30, 2016 (Exhibit "B" Time Extension Request), for the sale of the remaining five affordable single-family homes at Laval/Belgravia Avenue Single-Family Housing Project. EXECUTIVE SUMMARY On March 25, 2013, the City entered into a HOME CHDO Agreement with Habitat for the development of nine single-family homes at Laval Avenue and Belgravia in southeast Fresno. On March 31, 2016, the City received a second time extension request from Habitat to extend the project's completion date beyond that provided for in the HOME CHDO Agreement (180 days). Habitat is requesting an extension to the project completion date due to pre and post construction delays. The revised project schedule as outlined in Amendment No. I, provides for an extension of the project completion date to June 30, 2016. BACKGROUND On January 11, 2014, Habitat commenced construction of nine single-family homes to be located at 4713, 4714 and 4719 E. Belgravia Avenue, and 2370, 2374, 2378, 2382, 2386 and 2390 S. Laval Avenue. Habitat has encountered delays along the way and is requesting a second time extension from the original November 1, 2015, completion date. Of the nine homes, eight are completed and one is under construction. Additionally, four of the nine homes, to be sold to low-income households, have closed escrow. The project plan was to construct five 3-bedroom units consisting of 1,100 square feet; two 4- bedroom units consisting of 1,300 square feet; and two 5-bedroom units consisting of 1,600 square feet. Once the project is complete, the Laval single-family housing units will assist the City in meeting its affordable housing goals as identified in the Housing Element of the 2035 General Plan, the 2015- 2019 Consolidated Plan, and the HOME Program funding priorities for new housing development. The project has already made a positive impact to the neighborhood by offering new, quality, durable, affordable in-fill housing. ENVIRONMENTAL FINDINGS Not applicable FISCAL IMPACT Not applicable ATTACHMENTS: Exhibit A - Amendment I to HOME CHDO Agreement Exhibit B - Habitat's Time Extension Request