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HomeMy WebLinkAbout2005-12-20; City Council; 18393; Roosevelt St Affordable Condos Housing Development48# 18,393 MTG. 12/20/05 ROOSEVELT STREET AFFORDABLE CONDOMINIUMS DEPT. HlRED TITLE: APPROVAL OF COMBINED INCLUSIONARY HOUSING DEVELOPMENT AND CREDIT PURCHASE PRICE FOR - RECOMMENDED ACTION: IO CITY MGR. That the City Council ADOPT Resolution No. 2005-381 APPROVING :he Roosevelt Street Condominium as a combined project under the City’s lnclusionary Housing Ordinance and allowing the Carlsbad Redevelopment Agency to sell housing credits within the project to private housing developers within the Northwest Quadrant to satisfy inclusionary housing requirements for private housing developments, with said participation subject to subsequent final approval by the City Counci I. That the Housing and Redevelopment Commission ADOPT Resolution No. 405 APPROVING the credit purchase price for the Roosevelt Street Condominium project, subject to City Council designation of the project as a Combined Project under the lnclusionary Housing Ordinance. ITEM EXPLANATION: BACKGROUND On January 11, 2005, the Housing and Redevelopment Commission (Commission) approved a major redevelopment permit (RP04-04) for construction of the Roosevelt Street Affordable Apartment Project. This was an Agency-initiated project on Agency-owned property in the Village Redevelopment Area. Following several months of negotiations and financial studies, the Commission and City Council (Council) considered a financial assistance package for the subject affordable housing project on August 9, 2005. After a continuance of the matter to September 13, 2005, the Commission and Council decided to discontinue efforts to construct the subject apartment project and instructed staff to pursue redesign of the project to condominiums (forkale) due to high cosffsubsidy concerns. At that time, the total City/Agency financial contribution for the apartment project was estimated at $3,069,000, or approximately $279,000 per unit. The Council and Commission took the following actions and provided the noted direction to staff on September 13,2005: 1. Denied the financial assistance for the Roosevelt Street Apartment Project. 2. Directed staff to pursue redesign of the project and to return at a later date with appropriate legal documents to allow for funding and construction of 11 condominiums on the Roosevelt Street property affordable to households at 50% or below of the Area Median Income. 3. Directed staff to work with an affordable housing developer that will produce this housing in the most cost effective manner with the lowest possible subsidy requirement from the City of Carlsbad. 4. Directed staff to return with the appropriate documents to approve the proposed Roosevelt Street Condominiums as a Combined Project under the City's lnclusionary Housing Ordinance, and allow for the Carlsbad Redevelopment Agency to sell housing credits within the project to private housing developers within the Northwest Quadrant to satisfy their inclusionary housing obligations. 5. Directed staff to return with the appropriate documents upon completion of negotiations with the appropriate developer to convert the project to condominiums. 6. Directed staff to use the actual subsidy ultimately approved by the Council and Commission for the project to determine the price for the subject housing credits. For the past two months, staff has been working with Habitat for Humanity in an effort to redesign the subject project from apartments to condominiums and to determine the total amount of the City/Agency financial contribution required to assist in the development. Although the redesign and financial negotiations with Habitat for Humanity are not yet complete, it is currently estimated that the total financial contribution required from the City/Agency will be approximately $1,320,000 (including land costs), or $120,000 per unit. AFFORDABLE HOUSING PROJECT DESCRIPTION At this time, it is anticipated that the development will continue to provide a total of eleven (11) affordable housing units. Although there may be some modifications, it is currently anticipated that the project will continue to consist of two separate two-story buildings. Building 1 will provide 5 units and Building 2 will provide 6 units. There will be 8 one bedroom units and 3 two bedroom units. All of the units will continue to be affordable to households earning 50% or less of Area Median Income (which is currently $27,600 or less for a family of 2). The product will be revised from a rental to a for-sale product. Habitat for Humanity is currently working with an architect to revise the plans and resubmit them for an amendment to the previously approved major redevelopment permit (RP 04-04). .It is anticipated that the amended permit will be submitted for approval after the first of the new year (2006). A construction schedule from Habitat for Humanity is pending. COMBINED INCLUSIONARY HOUSING PROJECT As instructed by the CounciKommission, staff is returning with the appropriate documents to designate the future Roosevelt Street Condominium Project as a combined housing project under the City's lnclusionary Housing Ordinance, and allow the Redevelopment Agency to sell credits in the subject project to assist other private housing developer's in the Northwest Quadrant to meet their inclusionary housing obligations under said Ordinance. Pursuant to the lnclusionary Housing Ordinance (CMC 21.85.080), the City Council has sole discretion to authorize a residential site to be designated as a combined inclusionary housing project. The City Council also ultimately has sole discretion as to which private housing developments may satisfy their inclusionary housing obligations by financially participating in an off-site combined housing project. An action at this time to designate the Roosevelt Street Condominium project as a combined housing project for inclusionary housing purposes does not concurrently approve any specific projects for financial participation. Each private housing development will be subject to separate review and approval by the City Council. This Council action simply indicates that the Roosevelt Street Affordable Condominium project is designated as a combined project. The Commission will set the housing credit price. On September 12, 1995, the City Council adopted Council Policy No. 58. This policy sets forth a framework for setting the credit price and the policy for selling said credits. A copy of the policy is attached for reference purposes. Total Financial Contribution ($1.3 million) divided by the total number of credits (1 1). Land Acquisition: $695,000 Site Improvements: $425,000 Total: Predevelopment: $200,000 $1,320,000 + 1 1 = $120,000 The policy is broad-based and intended to apply to all future combined projects where the City intends to sell housing credits. The Villa Loma project, which was the first combined inclusionary housing project approved within the City of Carlsbad, is used as the example for how to calculate the housing credit price under the policy. Villa Loma is a 344 unit affordable rental housing project located on the border for the southwest and southeast quadrants of the City. Villa Loma was structured to allow for a total of 184 housing credits to be sold to developers in the southeast and southwest quadrants of the City to meet their inclusionary housing requirements and to allow the City to recover its total financial contribution in the development. Credit Price: $120,000 The credit price for Villa Loma was based on Council Policy No. 58. The policy indicates that the price should be set by dividing the local financial contribution by the total number of credits available. The local financial contribution consists of all City financial assistance (including land, loans, accrued interest, etc). For example, the total financial contribution for Villa Loma was $5.1 million. The total number of credits available was 184. Using the policy calculation, the credit price was originally equal to $28,000. It is then adjusted annually with the addition of interest. The current price is $45,000 per credit. Through application of City Council Policy No. 58, the credit purchase price for the Roosevelt Street Affordable Condominiums should initially be set according to the estimated total local financial contribution of $1,320,000 or $120,000 per unit credit (1 1 credits total). The $1,320,000 estimated contribution currently includes $695,000 as the value (City/Agency cost) of the land, $200,000 in predevelopment loan assistance (preparation of revised plans, payment of fees, etc), and approximately $425,000 in site improvements to obtain certified pads for development of the subject 11 homes. Staff still needs to return the request for financial assistance from Habitat for Humanity to the Council/Commission for formal approval. If the financial assistance approved for the project is higher or lower than the above noted estimate, then the credit price should either be increased or decreased accordingly at that time. Staff Recommendation Per previous direction from the Council, staff recommends that the Council approve the attached resolution to designate the Roosevelt Street Affordable Condominiums as a combined project for inclusionary housing purposes. Housing Developers in the Northwest Quadrant of the City will then be eligible to purchase credits within the project subject to separate approval by the Council. Each developer's request will first be reviewed by a staff committee who then makes a recommendation to the Council. The developer is responsible for providing a justification for purchasing the credits rather than constructing them on the site of hidher development. The Council has the ultimate authority to determine if the developer has provided adequate justification to purchase the credits. This credit price is higher than the Villa Loma Project. However, the project will also cost the CitylAgency more to produce. The current policy is based on the premise that if units are made available to developers to satisfy their inclusionary obligation, then the developer should be required to reimburse the City/Agency for all of its costs to produce said units. The City/Agency can then use the reimbursed funds to produce additional affordable housing units at other locations within the City. Alternative Credit Price DescriptionKaIculation 1 Average the City/Agency financial contributions for all three affordable (rental and for-sale) projects in the Village Area funded (or to be funded) by the If the Council determines that the Roosevelt Street Condominium, as a combined project for inclusionary housing purposes, is unique and should not be governed by Council Policy No. 58, the following options for an alternative housing credit price calculation are provided for consideration: Credit Price 2 1 ?;EcCYburt (75): $7,998,260 (incl. est. rehab costs) Laguna Point (3):$210,000 . Roosevelt Street Condos (1 1 ):$I ,320,000 Total: $9,528,260+89=$107,059 Set Housing Credit Price identical to Villa Loma $45,000 I $107,059 $695,000 $200,000 $425,000 $1,320,000 CDBG, HOME and Redevelopment Housing Funds CDBG and/or HOME Funds Redevelopment Housing Set-Aside Funds Total Land Acquisition (completed) Predevelopment Costs On-Site Improvements (Construction) FISCAL IMPACT: As noted above, the actual financial contribution request from Habitat for Humanity will be processed at a later date. It is currently estimated that the financial contribution shall be provided in the form of a $1,320,000 loan that will be recaptured through housing credit sales and/or at the time the homebuyer sells the unit at a later date. The noted funding from the CDBG and HOME programs was previously approved by the City Council for this project. The Village Redevelopment Housing Set-Aside Fund currently has a balance of approximately $2.3 million. Therefore, there are adequate funds available in this account to provide the noted assistance. If the subject project is approved as a combined inclusionary housing project and all housing credits (11 total) are sold at the proposed $120,000 per credit, the City would be reimbursed for its total financial contribution of $1,320,000. EXH I6 ITS : 1. City Council Resolution No. 2005 - 381 , to approve the Roosevelt Street Affordable Condominium Project as a combined project under the City’s lnclusionary Housing 0 rd ina nce . 2. Housing and Redevelopment Resolution No. 405 approving the credit purchase price for the combined project, if approved by the City Council. 3. City Council Policy No. 58. DEPARTMENT CONTACT: Debbie Fountain, (760) 434-281 5; dfoun@ci.carlsbad.ca.us 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 bL.;kJ-i* 1 CITY COUNCIL RESOLUTION NO. 2005-381 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, TO APPROVE THE DESIGNATION OF THE ROOSEVELT STREET AFFORDABLE CONDOMINIUMS AS A COMBINED PROJECT UNDER THE CITY OF CARLSBAD’S INCLUSIONARY HOUSING ORDINANCE, AND AUTHORIZE THE CARLSBAD REDEVELOPMENT AGENCY TO SELL HOUSING CREDITS WITHIN THE PROJECT TO OTHER HOUSING DEVELOPERS WITH PROJECTS WITHIN THE NORTHWEST QUADRANT, SUBJECT TO FINAL APPROVAL BY THE CITY WHEREAS, in 1993, the City of Carlsbad adopted an Inclusionary Housing Ordinance, Chapter 21.85 of the Carlsbad Municipal Code, which requires all housing developers to provide at least 15% of the housing units they construct to be affordable to lower income households; and, WHEREAS, pursuant to Chapter 2 1 A5.080 of the Carlsbad Municipal Code, the City has sole discretion to authorize a residential site to be designated as a combined inclusionary housing project; and, WHEREAS, the City Council also has sole discretion as to which housing developments may satisfy their inclusionary housing obligations by financially participating in an off-site combined project; and WHEREAS, the Carlsbad Redevelopment Agency has partnered with Habitat for Humanity to construct a total of eleven (1 1) for-sale condominium units affordable to very low income households on property owned by the Agency and located at 2578 Roosevelt Street within the Village Redevelopment Project Area and the Northwest Quadrant of the City of Carlsbad; and WHEREAS, said units are excess units in that they will not be provided to meet the inclusionary requirement of a specific master housing development but may be used to do so if approved by the City Council; and WHEREAS, the Carlsbad Redevelopment Agency has expressed a desire to sell the excess housing credits produced by said project, Roosevelt Street Condominiums, at 2578 Roosevelt Street to housing developers with a small inclusionary housing requirement for a housing development located within the Northwest Quadrant of the City; and 1 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 WHEREAS, the City Council has an interest in providing a combined project within the Northwest Quadrant to assist small housing developers in their effort to satisfy their inclusionary housing requirements. NOW, THEREFORE, BE IT HEREBY RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1. The above recitations are true and correct. 2. The City Council hereby designates the eleven (1 1) unit Roosevelt Street Affordable Condominium development to be constructed on Carlsbad Redevelopment Agency owned property located at 2578 Roosevelt Street as a combined housing project pursuant to Carlsbad Municipal Code 21.85.080. 3. The City Council hereby authorizes the Carlsbad Redevelopment Agency to sell a total of eleven (1 1) housing credits within the project to one or more small housing developers to assist them in their effort to satisfy their inclusionary housing obligations, subject to final financial participation approval by the City Council. 4. The City Council reserves its sole discretion to decide which private housing developments within the Northwest Quadrant will be permitted to satisfy their inclusionary housing obligations by financially participating in an off-site combined housing project. 5. The Carlsbad Redevelopment Agency shall be responsible for setting the housing credit purchase price for said combined project. PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of Carlsbad, California, held on the 20th day of December ,2005, by the following vote, to wit: AYES: Council Members Lewis, Hall, Packard, Sigafoose NOES: None ABSENT: Council Member Kulch ABSTAIN: None ATTEST: 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 HOUSING AND REDEVELOPMENT COMMISSION RESOLUTION NO. 405 A RESOLUTION OF THE HOUSING AND REDEVELOPMENT COMMISSION OF THE CITY OF CARLSBAD, CALIFORNIA, TO SET THE HOUSING CREDIT PURCHASE PRICE FOR THE ROOSEVELT STREET AFFORDABLE CONDOMINIUM COMBINED PROJECT UNDER THE CITY OF CARLSBAD’S INCLUSIONARY HOUSING ORDINANCE. WHEREAS, in 1993, the City of Carlsbad adopted an Inclusionary Housing Ordinance, Chapter 2 1.85 of the Carlsbad Municipal Code, which requires all housing developers to provide at least 15% of the housing units they construct to be affordable to lower income households; and, WHEREAS, pursuant to Chapter 21.85.080 of the Carlsbad Municipal Code, the City Council has sole discretion to authorize a residential site to be designated as a combined inclusionary housing project; and, WHEREAS, the City Council also has sole discretion as to which housing developments may satisfy their inclusionary housing obligations by financially participating in an off-site combined project; and WHEREAS, the Carlsbad Redevelopment Agency has partnered with Habitat for Humanity to construct a total of eleven (1 1) for-sale condominium units affordable to very low income households on property owned by the Agency and located at 2578 Roosevelt Street within the Village Redevelopment Project Area and the Northwest Quadrant of the City of Carlsbad; and WHEREAS, said units are excess units in that they will not be provided to meet the inclusionary requirement of a specific master housing development under the City’s Inclusionary Housing ordinance, but may be used to do so if approved by the City Council; and WHEREAS, the Carlsbad Redevelopment Agency expressed a desire to sell the excess housing credits produced by said project, Roosevelt Street Condominiums, at 2578 Roosevelt Street to housing developers with a small inclusionary housing requirement for a housing development located within the Northwest Quadrant of the City; and 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 WHERAS, the Carlsbad Redevelopment Agency received approval from the Carlsbad City Council to designate the Roosevelt Street Condominiums at 2578 Roosevelt Street as a combined housing project to assist small housing developers with projects located in the Northwest Quadrant in their effort to satisfy their inclusionary housing requirements pursuant to Chapter 21.85 of the Carlsbad Municipal Code; and WHEREAS, the Carlsbad Redevelopment Agency is required to set the housing credit purchase price for the Roosevelt Street Condominiums combined project. NOW, THEREFORE, BE IT HEREBY RESOLVED by the Housing and Redevelopment Commission of the City of Carlsbad, California, as follows: 1. The above recitations are true and correct. 2. The Housing and Redevelopment Commission hereby accepts the designation of the eleven (1 1) unit Roosevelt Street Affordable Condominium development to be constructed on Carlsbad Redevelopment Agency owned property located at 2578 Roosevelt Street as a combined housing project pursuant to Carlsbad Municipal Code 21.85.080. 3. The Housing and Redevelopment Commission hereby acknowledges that the City Council has the authority to decide which private housing developments within the Northwest Quadrant will be permitted to satisfy their inclusionary housing obligations by financially participating in an off-site combined housing project such as the Roosevelt Street Condominiums. 4. The Housing and Redevelopment Commission hereby sets the Housing Credit Purchase Price for the Roosevelt Street Affordable Condominiums at the full subsidy cost of $120,000 per univcreidt. This price was determined by calculating the total per unit subsidy provided by both the Carlsbad Redevelopment Agency and the City of Carlsbad, including the cost of acquiring the property and providing pre-development fimding to the developer. This fee shall be subject to increase on an annual basis to add interest, as approved by the Housing and Redevelopment Commission. 2 9 1 2 3 4 5 6 7 8 9 10 11 12 13 12 15 16 17 18 19 20 21 22 23 24 25 26 27 28 5. The Housing Credit Purchase Price is not a development impact fee. Therefore, it is not subject to the requirements of California Government Code Sections 66001 and/or 66006. PASSED, APPROVED AND ADOPTED at a regular meeting of the Housing and Redevelopment Commission of the City of Carlsbad, California, held on the 20 t h day of December ,2005, by the following vote, to wit: AYES: Commission Members Lewis, Hall, Packard, Sigafoose NOES: None ABSENT: Commission Member Kulch ABSTAIN: None 3 EXHIBIT 3 Page 1 of 4 Policy No. 58 Effective Date &Dt. 12. 1995 Supersedes No. CITY OF CARLSBAD DateIssued September 12, 1995 COUNCIL POLICY STATEMENT Cancellation Date General Subject: AFFORDABLE HOUSING Specific Subject: Sale of Affordable Housing Credits Copies to: City Council, City Manager, City Attorney, Department and Division Heads, Employee! Bulletin Boards, Press, File. PURPOSE To establish a policy to be followed by City Council and City staff in selling Mordable Housing Credits, controlled by the City, to developers who will use the Credits to satisfy obligations to provide affordable housing pursuant to the City's Inclusionary Housing Ordinance (CMC Chapter 21.85). BACKGROUND In the development of the 344-unit affordable housing project known as Villa Loma in the Southwest Quadrant of the City, the developers and the City created a project which may be treated as a Combined Project as defined in the Citfs Inclusionary Housing Ordinance. With City Council approval, Combined Projects allow "some or all of the inclusionary units associated with one residential project site to be produced and operated at an alternative site". The "alternative site" becomes a Combined Project. Villa Lorna was conceived and developed with City participation based on the creation of 184 excess affordable housing units which would be available to satisfy other developers' hclusionary housing obligations thus making it a potential Combined Project. City financial participation in the project was also based on the Zoncept of recovering costs through the sale of the excess units. Furthermore, Villa Loma was structured to give the City control of these units (Affordable Housing Credits or "Credits") and theit sale to potential Combined Project participants. Therefore, it is neCeSSary to establish a policy to guide the City in the effective implementation of these Affordable Housing Credit sales transactions. POLICY rwo basic factors will be considered in a Credit sale transaction - the frnancial aspect, which is the Credit ?ricing -- this determines cost to a purchaser and revenue to the City; and the affordable housing aspect, which is the use of this mechanism to satisfy a developer's obligation under the Inclusionary Housing 3rdinance. Based on these considerations, the following will guide Credit sales: Page 2 of 4 Policy No. 58 CITY OF CARLSBAD Date Issued Sept. 12, 1995 EffectiveDate Sept. 12, 1995 Supersedes No. I COUNCIL POLICY STATEMENT Cancellation Date General Subject: AFFORDABLE HOUSING Specific Subject: Sale of Affordable Housing Credits Copies to: City Council, City Manager, City Attorney, Department and Division Heads, Employee Bulletin Boards, Press, File. t - Price. The Credit price will be determined according to the following formula which divides the loca financial contribution provided to the Villa Loma project by the total number of Credits available The local financial contribution consists of all City financial assistance provided to the project (eithei as loans or expenditures for land including accrued interest on such amounts for the period of timf they are outstanding); and the local developer contribution to the project provided in order to satisfj an affordable housing obligation): Affordable Housing Credit Pricing Formula 5 Unit Price of Affordable + Number of Affordable Housing Credits (Rounded Housin9: Credits Available 10 nearest $l.OOO)* City Contribution $4.2 Million* Developer Contribution 1 84 (Aviara Land Associates) .9 TOTAL $5.1 Million $28,000* *Kbe adjusted with the addition of interest. Terms of Purchase and Sale. The commitment to purchase and sell Credits will be accomplished through an Affordable Housing .Agreement as required by the Inclusionary Housing Ordinance. This Agreement will contain the tern of the Credit sale and will acknowledge the satisfaction of an affordable housing obligation through participation in a Combined Project (Villa Lorna). Page 3 of 4 CITY OF CARLSBAD COUNCIL POLICY STATEMENT General Subject: AFFORDABLE HOUSING Specific Subject: Sale of Affordable Housing Credits Policy No. 58 Date Issued -. 1995 Effective Date Sept. 12. 1995 Cancellation Date Supersedes No. Copies to: City Council, City Manager, City Attorney, Department and Division Heads, Employee Bulletin Boards, Press, File. b Selection of Purchasers. The following procedure will apply to the selection of purchasers and . allocation of Credits: 1. Proiect Review, Staff, through the Combined Project Review Committee (see Council Policy No. 57) will review all applications and approved projects with inclusionary requirements and determine which projects will be recommended to satisfy their obligations through the purchase of Credits. If the number of acceptable projects have affordable housing requirements which exceed the available number of Credits, projects will be ranked and allocated Credits accordingly. Projects will be reviewed and ranked using the following criteria: a) The immediacy of the need to satisfy an affordable housing obligation with respect to the market rate project that is generating the obligation. b) The readiness and capacity of the developer to enter into an Affordable Housing Agreement and perform under its terms. c) The acceptability of the Combined Project as an off-site option in lieu of the satisfaction of the affordable housing obligation on-site with respect to the project that is generating the obligation (see Council Policy No. 57). 2. Electine to Purchase Cred its. Developers will be notified of staffs recommendation to permit the purchase of Credits and given the opportunity to accept or reject this option. 3. Reservation of Credits. Developers wishing to use the option of purchasing Credits must have their projects approved with conditions allowing this option. In addition to Planning Commission approval, the recommendation of the Housing commission will be required for the Credit purchase option of satisfying the Inclusionary Housing Obligation. When a project is approved (e.g., tentative map) with the Credit purchase condition, a reservation of the Credits is made for the project. Page 4 of 4 / c ..- Policy No. 58 CITY OF CARLSBAD DateIssued Seut. 12, 1995 Effective Date &Dt. 12. 1995 COUNCIL POLICY STATEMENT Cancellation Date Supersedes No. General Subject: AFFORDABLE HOUSING Specific Subject: Sale of Affordable Housing Credits Copies to: City Council, City Manager, City Attorney, Department and Division Heads, Employee Bulletin Boards, Press, File. 4. Affordable HousinR Agreement. Within sixty (60) days of the approval of the Credit purchase condition, the developer must deliver to the Housing and Redevelopment Director a signed Affordable Housing Agreement in the form prescribed by the City with a non-refundable deposit in an amount equal to 10% of the total Credit sale price. The Affordable Housing Agreement will be scheduled for City Council consideration and, if and when approved, will be executed by the City. The Affordable Housing Agreement will require payment of the balance of the purchase price upon execution and prior to final map or issuance of a building permit. 5. Failure of Develo~er to Perform or Denial of Purchase Option. If the developer is unable to perform as required, or is denied the option of purchasing Credits, the Credits will be made available to another project(s), subject to this process. 6. This policy is subject to all other requirements of the Inclusionary Housing Ordinance. 13 Roosevelt Garden Condominiums –Combined ProjectJoint Housing and Redevelopment Commission and City Council MeetingDecember 20, 2005 Project History♦Commission approved Major Redevelop-mentPermit for 11 unit apartment project –1/11/05.♦Staff completed financial studies and presented financial assistance request.♦Per unit subsidy required -$279,000/unit.♦Council denied financial assistance and decided to redesign project to condos –9/13/05. September 13, 2005 Actions♦Pursue redesign of project to condos.♦Work with developer to produce project in more cost effective manner (Habitat for Humanity)♦Return with appropriate documents to approve project as a combined project for inclusionary housing purposes.♦Return with appropriate documents to convert project to condominiums.♦Use actual subsidy ultimately approved by the Council and Commission as the credit price. Project Description♦.56 acre site ♦2578 Roosevelt Street♦11 condominium units ♦8 one-bedroom and 3 two bedroom units♦674sf (1 bdr) and 894sf (2bdr)♦Affordable to households at 50% or below the Area Median Income ($27,600 or less for a family of 2) Council Actions♦Approve Roosevelt Gardens Condos as a Combined Project for Inclusionary Housing purposes.♦Per CMC 21.85.080, Council has sole discretion to authorize combined project.♦No private housing developers approved for participation with this action; developer requests will be processed separately. Commission Actions♦Set Housing Credit price.♦Council Policy No. 58–Broad-based–Divide the local financial contribution by the total number of credits.♦Current estimate of financial contribution is $1,320,000, or $120,000 per credit (11 units). Credit Price Calculation$120,000Total Financial Contribution:Land: $695,000Predevelopment: $200,000Site Improvements: $425,000Total: $1,320,000 ÷11 credits = $120,000Credit PriceDescription/CalculationCurrent Policy Premise: If units are made available to developers to satisfy inclusionaryhousing obligation , the developer must reimburse City/Agency for all of its costs. Housing Credit Price Options$45,000Set price identical to Villa Loma2$107,059Avg. City/Agency financial contributions for 3 funded projects in Village:Tyler Court: $7,998,260Laguna Point: $210,000Roosevelt Condos: $1,320,000Total:$9,528,260÷89 = $107,0591Credit PriceDescriptionAlternative Council Action♦Adopt City Council Resolution No. 2005-381 to approve the Roosevelt Street Affordable Condominium Project as a combined project under the City’s Inclusionary Housing Ordinance. Commission Action♦Adopt Housing and Redevelopment Commission Resolution No. 405 approving the credit purchase price of $120,000 per credit for the Roosevelt Gardens Condominium combined project.