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HomeMy WebLinkAbout2021-01-25 21-078 Order 01/25/202121-078 01/25/2021 21-078 Community & Economic Development Order 045-009-E Title, Order Authorizing $200,000 in Community Development Block Grant funding for Penquis Housing at Milford Street Extension This order will authorize up $200,000 in Community Development Block Grant (CDBG) funds for Penquis's housing project at Milford Street Extension to assist with project costs and create affordable housing in the City. Penquis has been working to increase the availability of affordable housing in Bangor. Recently, they received site plan approval to build nearly 40 rental units on Milford Street Extension. Penquis plans to create both family and elderly housing on the property, possibly in two phases to contain costs and maximize tax credit opportunities. They are also willing to establish "preference units" that would allow the City to have a first option to place a client that they have been working with (GA clients, etc.). This is especially valuable given waitlists for affordable rental properties. Upon acceptance of the funds, Penquis will sign a agreement to stipulate the use of the funding and require repayment if the new rental homes are not built within an agreed upon timeline. This project is consistent with the City's CDBG consolidated plan and addresses the Council goal to improve the quality and quantity of housing to meet demand for workforce housing, life cycle housing, and supportive housing. This item was reviewed and approved at the Business and Economic Development Committee meeting on January 19, 2021. Business & Economic Development Committee 01/19/2021 Recommend for passage 50 New Business 01/25/202121-078 CITY OF BANGOR ORDER 01/25/2021 21-078 Fournier Authorizing $200,000 in Community Development Block Grant funding for Penquis Housing at Milford Street Extension WHEREAS, the City has applied for and received Community Development Block Grant (CDBG) funds from the United States Government under Title I of the Housing and Community Development Act of 1974, as amended (HCD Act), Public Law 93-383; and WHEREAS, both the City and Penquis are actively working to support the creation of additional affordable housing units in Bangor; and WHEREAS, Penquis has an option and site plan approval to construct 40 units on Milford Street Extension; and WHEREAS, the City wishes to provide the Penquis with grant funding to assist with this project and create housing; therefore Be it Ordered by the City Council of the City of Bangor that, the City Manager is authorized to execute an agreement with Penquis for their Milford Street Extension housing project and to grant Penquis $200,000 of CDBG funding to assist with the costs of the development. All agreements will be in final form as approved by the City Solicitor's office. IN CITY COUNCIL JANUARY 25,2021 CO 21-078 It was previously determined that Councilor Dubay has a conflict of interest. Councilor Tremble indicated he had a conflict of interest due to his association with Penquis Motion made and seconded that Councilor Tremble has a conflict of interest. Vote: 6-0 Councilors Voting Yes: Davitt, Fournier,Hawes,Nichols, Schaefer, Sprague Councilors Voting No: None Passed Brett Landon spoke against this project. Motion made and seconded for Passage Vote: 6-0 Councilors Voting Yes: Davitt,Fournier,Hawes,Nichols, Schaefer, Sprague Councilors Voting No: None Passed �e- , , d-"� C CLEIYI-