TO: Chair and Housing Authority Commissioners
THROUGH: Keith Stahley, Executive Director
FROM: Nicole Utz, Administrator
SUBJECT:
title
Memorandum of Understanding to permit the Housing Authority to serve as the Developer, Owner and Manager of a new project currently named Evergreen Apartments in partnership with Northwest Human Services.
Ward(s): All Wards
Commissioners(s): All Commissioners
Neighborhood(s): All Neighborhoods
Result Area(s): Welcome and Livable Neighborhood.
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SUMMARY:
summary
The Memorandum of Understanding between the Salem Housing Authority (SHA) and Northwest Human Services is to build a new multi-family building to serve low and moderate-income households receiving services from Northwest Human Services as the service provider.
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ISSUE:
Shall the Salem Housing Authority Commission approve Resolution No. 2312 authorizing the Executive Director or designee to enter a Memorandum of Understanding with Northwest Human Services?
RECOMMENDATION:
recommendation
Approve Resolution No. 2312 authorizing the Executive Director or designee to enter into Memorandum of Understanding with Northwest Human Services.
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FACTS AND FINDINGS:
Adoption of this resolution will allow Salem Housing Authority to begin development work on new affordable housing units within the city of Salem. SHA would provide the pre-development construction in progress funding. In return, Northwest Human Services (NWHS) will donate the land as capital into the project and added as a source of funding.
Evergreen Apartments currently has one house and six small cottages on land which would eventually be demolished and a new 26-28-unit multifamily building would be developed into new affordable housing. Existing tenants would have the first right to return once the building is completed.
SHA intends to receive the land as an in-kind donation from NWHS and would become the Owner, Developer, Manager once the development in complete. In return NWHS would provide the supportive services on-site with a preference for those who would benefit directly from them.
The project has just begun feasibility work and is seeking commission approval to move forward on the project beyond that. A formal development agreement and partnership agreement will be created and signed prior to the commencement of construction,
SHA would become the Owner, Developer and Manager of the project once built and deliver an additional 26-28 units of affordable housing to the Salem Community.
The Memorandum of Understanding contains the following terms:
• The parties will work cooperatively and in good faith to agree upon a form of deed to convey the Property to SHA, which may include among other things:
A deed restriction requiring the property to be developed as affordable housing, the level(s) of affordability, a minimum number of housing units, and a timeline for the commencement of construction and initial occupancy for the development.
• The parties contemplate the need to demolish the existing housing units on the Property. These units are currently occupied by NWHS clients. SHA will ensure that all residents of the Property are provided reasonable notice of any planned development activity on the Property, relocation benefits, and priority placement in the new development once the development is open for occupancy.
• The parties execute this development project under intent to establish a working partnership to house and serve low-income community members or special population(s) as defined in a formal Supportive Services Agreement or similar titled document of equal purpose. Parties will work collaboratively to execute this agreement, which will define (amongst other things) determination of special population(s) to be served, client eligibility factors, preferences for housing referrals, first right to return for any current residents, and the opportunity for NWHS to provide on-site case management.
• The parties agree to work in a timely manner to complete the transfer of the Property and complete development of the affordable housing project outlined herein. In furtherance of that commitment, the parties agree to adhere to the timeline below to the extent reasonably feasible:
• Effective Date. This MOU shall be effective on the date last signed by the party.
BACKGROUND:
Affordable housing in Salem is a community need.
SHA is working on several new affordable housing projects. Approval of this MOU would continue furthering the Housing Authority’s commitment to finding ways to expand on public/private/non-profit partnerships and increase affordable housing supply in Salem.
Nicole Utz
Administrator
Attachments:
1. Resolution 2312
2. Memorandum of Understanding Northwest Human Services and Salem Housing Authority