HomeMy WebLinkAbout3a_20130624 DiscussionJune 24, 2013 Affordable Housing Task Force
Priority and Use of the Affordable Housing Fund
1. Affordable Housing Fund Balance
a. $2.23 million
b. Anticipated to grow to approximately $4 million upon payment of
approximately $1.7 million for Santa Barbara Condo project.
2. Historical Use of Affordable Housing Fund
a. In 2004, the City provided approximately $1.5 million in funds to help
subsidize the construction of the Bayview Landing senior affordable
housing project. This development provided a total of 120 units affordable
to very low- and low- income senior households.
b. In 2009, the City granted $140,000 in funds for the rehabilitation and
conservation of 100 senior housing units at Seaview Lutheran Plaza
Apartments that had a deteriorating water delivery system. The project
consists of 50 extremely low- income and 50 very low- income senior
housing units. In exchange for the monetary assistance, the owner agreed
to extend the affordability of its units for a total period of 30 years (March
2039).
3. Possible Use of Affordable Housing Funds
The City's Housing in -lieu fees are collected and are deposited into an Affordable
Housing Fund account and the funds can be used to construct, rehabilitate, or
subsidize affordable housing or assist other governmental entities, private
organizations or individuals to provide or preserve affordable housing. The fund
may be used for the benefit of both rental and owner - occupied housing. Allowed
uses of fund moneys include:
• Assistance to housing development corporations
• Equity participation loans;
• Grants
• Pre -home ownership co- investment
• Predevelopment loan funds
• Participation leases
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• Other public - private partnership arrangements
• The acquisition of property and property rights
• Construction of affordable housing including costs associated with
planning, administration, and design, as well as actual building or
installation
• Costs of rehabilitation and maintenance of existing affordable housing
when needed to preserve units that are at risk of going to a market rate
or at risk of deterioration
• Other costs associated with the construction or financing of affordable
housing
• Reasonable administrative charges or related expenses
• Reasonable consultant and legal expenses related to the
establishment and /or administration of the fund
4. Communication with At -Risk Apartments
a. Newport North Apartments (2 Milano Drive):
• Tax Exempt Bond Program (City was not a part of this affordability
agreement).
• Tax exempt bond obligations set to expire on November 15, 2013.
• 115 affordable units: 29 very low- and 86 low- income.
• Request direction from the Task Force to send a letter to the Irvine
Company requesting that they reconsider their intent to convert the
affected units to market -rate housing and offer assistance with City's
Affordable Housing Fund.
b. Newport Seacrest Apartments (843 15th Street)
• 65 units total: 25 very low- and 45 low- income units.
• Covenant agreement with City expires in 2016.
• Initiated conversations with property owner indicating the City may
possibility be interested in providing funds for rehabilitation or
oil
subsidies in exchange for extending covenants for an additional 30
years minimum.
• Project has undergone recent remodeling including a new roof and
paint.
• Possible rehabilitation could include windows and related energy
efficient improvements, or repair of water damaged to carports.
• Owner will pursue market -rate rents if covenants not extended.
5. Existing Affordable Housing Developments in the City
TableH12 City of Newport Beach Assisted (and Affordable)
Housing
Summary
Earliest
Possible
Date of
Project Name/ Location Type of Assistance Received
Change
Number of Units /Type
Section 8 (rental assistance vouchers)
Newport Harbor Apartments
Density Bonus
2020
26 Low - Income
1538 Placentia Avenue
Community Development Block Grant
(CDBG)
Section 8
Newport Harbor II Apartments
Density Bonus
10 Low- Income
2023
1530 Placentia Avenue
CDBG
4 Very Low - Income
In -Lieu Fee Funds
Section 8
Newport Seacrest Apartments
CDBG
2016
20 Very Low- Income
843 15th Street
Fee Waivers
45 Low - Income
Tax Credit Financing
Pacific Heights Apartments
Section 8
2019
7Low- Income
881 -887 W. 15th Street
Density Bonus
Newport Seashore Apartments
Section 8
2018
15 Low - Income
849 West 15th Street
Fee Waivers
Newport Seaside Apartment
Section 8
1544 Placentia
CDBG
2017
25 Very Low- Income
Fee Waivers
Seaview Lutheran Plaza (Seniors)
Section 202 (federal grant)
2039
100 Extremely Low and
2800 Pacific View Drive
Section 8
Very Low— Income Senior
Villa del Este
2026
2 Moderate - Income
401 Seaward Road
—
(ownership)
Villa Siena
2021
3 Moderate - Income
2101 15th Street
Density Bonus
(ownership)
Bayview Landing (Seniors)
In -lieu Fee Funds
24 Very Low
1121 Back Bay Drive
Fee Waivers
Tax Credit Financing
2056
95 Low- Income
SOURCE: City of Newport Beach Planning Division
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