MEMORANDUM

TO: Timothy Navarre, Assembly President

Members of the Kenai Peninsula Borough Assembly

THRU: Dale Bagley, Borough Mayor

THRU: Jeff Sinz, Finance Director

FROM: Bonnie L. Golden, Grants Manager

DATE: June 27, 2002

SUBJECT: Ordinance Accepting and Appropriating Federal Funds in the Amount of $490,000 for Planning, Design and Site Development for Senior Housing

The availability of low-income senior housing within the Kenai Peninsula Borough is inadequate. Most communities have none; those that have housing have long waiting lists for potential residents. Housing for seniors, within their local communities, will provide a safe environment in which the seniors can live near their family and friends. The Borough would like to assist three communities in providing housing for senior citizens. Those communities are Cooper Landing, Nikiski and Sterling - all three are located in unincorporated areas.

There is currently no senior housing in any of these three communities. A 2001 study conducted by Black-Smith and Richards, Inc., for the Alaska Housing Finance Corporation indicates independent living facilities are needed. Specifically, the study states that Cooper Landing has a need for a 6-unit facility, Sterling for 10 units, and Nikiski 6 units. The closest available housing is in Soldotna and Kenai - both have long waiting lists of over 20 people. Since there is no alternative housing available, many seniors are staying in their own homes well beyond their capacity to maintain them and, thus, their capacity to maintain their own safety.

Construction of independent senior housing in local areas will address this critical need. Citizens would be able to remain in their community, close to family and friends - who often act as a support group for the elderly. In Cooper Landing, this would be a first step in providing facilities for senior citizens. Independent housing in Sterling and Nikiski will be constructed adjacent to the senior citizen centers located in those two areas.

For the past three years, the Borough has identified the need for senior housing facilities in its legislative priorities. As a result, federal funding has been made available through the U.S. Department of Housing and Urban Development for construction of low-income senior housing. Notification has been received from HUD that $490,000 is available for this project. The Borough is in the process of preparing and submitting the necessary paperwork to make these funds available from HUD, including the attached appropriating ordinance.

Cooper Landing and Sterling have professional conceptual plans completed, Nikiski has not yet reached this phase. The Borough's goal is to assist all three senior centers in getting their projects construction ready. This includes developing a master plan for use of the property (to include proposed future projects such as additional housing, senior centers, activity areas, etc.), conceptual drawings if not currently completed, construction documents, soils testing and, if funds allow, site preparation and development, including wells, septic systems, and utility extensions.

As soon as the grant funds are available, work will begin on this project. The majority of the funds will be used for architect/engineering fees to develop a master land-use plan and conceptual drawings, as well as preparation of the construction documents, for each site. Any funds remaining after the initial project activities are completed will be applied towards pre-construction activities. This includes installation of well and septic systems plus extensions for power, gas and telephone for all three sites. The Kenai Peninsula Borough will oversee the project and will provide project management through its PW/Major Projects Division, which costs will be funded by the grant. This work plan has been reviewed and accepted by all three senior organizations. Any work on the project will be conducted in coordination with the three senior citizens groups. If possible, work will be completed during the 2002 construction season. If the short construction season precludes us from completing the site development work this year, it will be done as soon as possible during the 2003 construction season.

/bg

Attachments (ordinance; notification letter from HUD; federal request)

cc: Walter Robson, PW/Major Projects Director

Mayme Ohnemus, Cooper Landing Senior Citizens

Leigh Hagstrom-Sanger, Nikiski Senior Citizens

Judy Warren, Sterling Senior Citizens