R 5396 RESOLUTION NO. 5396
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF ARROYO GRANDE COMMITTING A NOT-TOO-
EXCEED AMOUNT OF $630,000, AUTHORIZING A
BUDGET ADJUSTMENT FROM THE AFFORDABLE
HOUSING TRUST FUND IN THAT AMOUNT, AND
AUTHORIZING THE CITY MANAGER TO DEVELOP A
GRANT AGREEMENT AND ANY ASSOCIATED
DOCUMENTS, WITH THE HOUSING AUTHORITY OF SAN
LUIS OBISPO FOR DESIGN, FUNDING, CONSTRUCTION,
AND MANAGEMENT OF A 63-UNIT AFFORDABLE
HOUSING PROJECT AT 700 OAK PARK BLVD, ARROYO
GRANDE
WHEREAS, the Planning Commission of the City of Arroyo Grande approved
application Lot Merger 21-001 and Conditional Use Permit 21-001 to merge four parcels
and construct sixty-three (63) multi-family residential units that will be affordable for low
income households at 700 Oak Park Blvd ("project"); and
WHEREAS, the Affordable Housing Trust Fund is administered under the general
supervision of the Community Development Director and pursuant to the regulations
established by City Council, as established by Arroyo Grande Municipal Code Section
16.80.080; and
WHEREAS, on July 18, 2023, the Housing Authority of San Luis Obispo submitted a
letter requesting a contribution from the City's Affordable Housing Trust Fund to aid in
the costs in constructing the project; and
WHEREAS, on July 25, 2023, Council approved a Development Review and Impact
Fee Grant allocation from the Affordable Housing Trust Fund to support the
development of the Housing Authority of San Luis Obispo ("HASLO") affordable housing
project at 700 Oak Park Blvd. in a not-to-exceed amount of$448,370.37; and
WHEREAS, the City committed to including that allocated $448,370.37 within the
required Regulatory Agreement for the project, a document that is recorded against the
property to, ensure that all project units will remain affordable for at least 55 years from
the date of occupancy; and
WHEREAS, the City's previously approved $448,370.37 is to cover costs associated
with the project's building permit, including plan review and inspections, development
impact fees, utility connections, and State mandated fees for the project; and
RESOLUTION NO. 5396
PAGE 2
WHEREAS, on October 15; 2024, HASLO submitted a funding request for an additional
$630,000 from the City's Affordable Housing Fund to reduce its existing funding gap
and maintain its planned closing and construction date for the project; and
WHEREAS, there is currently a statewide shortage in affordable housing options and
rent prices continue to increase, the public has an interest in an increased supply of
affordable housing, and the City may allocate these funds to facilitate the improvement
of the City's affordable housing stock to provide new affordable units to the public; and
WHEREAS, rising rates and inflation continue to impact costs and the financial burdens
of this project, and there is a public need for City's continued assistance for this project;
and
WHEREAS, the proposed grant agreement of funds from the Affordable Housing Fund
does not qualify as a "project" under CEQA because the action will not result in a direct
or reasonably foreseeable indirect physical change in the environment. (State CEQA
Guidelines section 15060, subd. (c)(2), (3).) Section 15378 of the State CEQA
Guidelines defines a project as the whole of an action, which could potentially result in
either a direct physical change, or reasonably foreseeable indirect physical change, in
the environment. Here, the action of disbursing the funding will not in itself result in any
construction or development, and it will not have any other effect that would physically
change the environment. The action therefore does not qualify as a project subject to
CEQA. The project itself was granted a categorical exemption when it was approved in
2021. This disbursement of funds will not affect this prior determination.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Arroyo
Grande, as follows:
1. The foregoing recitals are true and correct and are incorporated herein.
2. That the City Council authorizes and approves the following:
a. A commitment by the City Council to offer and provide a grant from the
City's Affordable Housing Trust Fund to HASLO for the design, funding,
construction and management of the affordable housing project, located at
700 Oak Park Blvd. in a not-to-exceed amount of$630,000.
b. A budget adjustment in a not-to-exceed amount of $630,000 from the
Affordable Housing Trust Fund, as a grant from the City to HASLO for the
project.
c. Authorize the City Manager, in consultation with the City Attorney, to
develop a grant agreement and any assoicated documents, in a not-too-
RESOLUTION NO. 539(p
I PAGE 4
d AREN RA RUSSOM, MAYOR
ATTEST:
SICA MATSON, CITY CLERK
APPROVED AS TO CONTENT:
lee
A EW DOWNING, CITY MG '
R
I
APPROVED AS TO FORM:
"7/-F
ISAAC REQS N, CITY ATTORNEY
RESOLUTION NO. 5396
PAGE 3
exceed amount of$630,000, that is consistent with applicable law.
On motion of Council Member Barneich, seconded by Council Member Secrest, and by.
the following roll call vote, to wit:
AYES: Council Members Barneich, Secrest, George, and Guthrie
NOES: None
ABSENT: Mayor Ray Russom
the foregoing Resolution was passed and adopted this 22nd day of October, 2024.
OFFICIAL CERTIFICATION
I, JESSICA MATSON, City Clerk of the City of Arroyo Grande, County of San Luis
Obispo, State of California, do hereby certify under penalty of perjury, that the attached
Resolution No. 5396 was passed and adopted at a regular meeting of the City Council
of the City of Arroyo Grande on the 22nd day of October, 2024.
WITNESS my hand and the Seal of the City of Arroyo Grande affixed this 24th day of
October, 2024.
JESSICA MATSON, CITY CLERK